VSA Capital Group - Unaudited Interim Report to 30 September 2024
Announcement provided by
VSA Capital Group plc · VSA27/12/2024 07:00

27 December 2024
VSA CAPITAL GROUP PLC
("VSA Capital" "VSA" or the "Company")
UNAUDITED INTERIM REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
VSA Capital Group plc (AQSE: VSA) announces its interim results for the half year ending 30 September 2024.
Successful first half in difficult market conditions and a cautiously optimistic outlook for the future.
Highlights
· Turnover of
· EBITDA of
· Cash position of
· NAV of
· NAVPS of 10.4p
· Retained Corporate Clients - 29
Chairman's Interim Report
I am pleased to be able to introduce our interim results for the six months ended 30 September 2024 after a very difficult previous year. We have recovered considerably and moved back into our more accustomed position of profitability. We could not have done this without the hard work and determination of our staff under challenging conditions and I pay tribute to them.
Market conditions are improving. We have an increased portfolio of client companies and a good pipeline of transactions as we enter 2025. The new strategic partnership with Drakewood Capital Management Limited has considerable potential to enhance our offering to clients in the natural resources arena and alongside activities in our other sectors. Notwithstanding the challenging geopolitical and economic conditions, we look forward to the months ahead with cautious optimism.
Mark Steeves
Chairman
27 December 2024
CEO Interim report
The six months between April and September 2024 have seen incredible highs, and also sadly lows, mainly due to macro conditions. We have completed an important strategic move with Drakewood Capital Management Limited ("Drakewood") that puts us in a much stronger position for the future, especially in the natural resources and transitional energy sectors. The good news is that we are reporting a profit and a strengthened balance sheet, but equity capital markets remain incredibly tough and as I have said before although I believe we perform better than our peer group, this is not a relative game.
Deal flow in equity capital markets ground to a halt over the summer following the Labour election victory and subsequent period of waiting for the budget. Sadly, it appears that the Government has little appetite to stimulate the
Although
Our capabilities are helped by the global reach for funding that we deploy for our corporate client base. By actively marketing overseas and building new relationships, we have been able to source funds and deals from areas as diverse as
Our VSA Lite service also shows how we can successfully differentiate ourselves as our client base here has grown well and, inevitably, Lite clients like the VSA experience and are beginning to move up to become full-service clients. This has enabled us to increase our client base in a market where the number of listed companies is declining rapidly. This has been described as being like a "no frills airline model" where entry level simply gets you a seat, but if you want to take bags or speedy boarding you pay more, or in our case we provide research, corporate finance advice and fund raising.
We are also "broker exempt" under MIFID 2. This has never been fully appreciated, but what it means is that our research is freely available. When we undertook the fundraising for Equipmake, this ability came into its own. We were able to write "insiders research" for investors whereas the lead adviser was unable to as it is not allowed to do so under MIFID 2. This probably made the difference between success and failure. We intend to use this capability more to win more clients, but most listed companies are not aware of the difference this can make.
It was a pleasure to welcome Drakewood onto our shareholder register at the start of September with their investment of
Over the summer we were still cleaning up some legacy issues from our 2023 annus horribilis and I believe that we have now satisfactorily put them all to bed as frankly it was no fun. Our previous Finance Director, Marcia Manarin, also decided to move on to Oberon Investments where we wish her well. I was very pleased to do a 'swap' and we have recruited Galin Ganchev who was formerly the Finance Director at Oberon Investments. This has meant there has been no disruption and Galin is already making a great contribution in ensuring our internal systems and financial controls remain robust and fit for purpose. VSA has always had junior staff moving on to bigger firms (but maybe worry less about the P&L as a small firm like VSA has to), but large firms also are unable to offer the same culture, which I believe is greatly appreciated by our existing staff. Currently we have not recruited where a few people have left, but instead allowed our headcount to reduce. In the current market conditions a controlled cost base is vital and it is quite easy to increase headcount at the right time, especially as I suspect many of the larger banks will be looking at their own cost bases and looking to reduce headcount. Also, very large client bases may feel good, but they can also be less profitable as the 80:20 rule can be so accurate; where 80% produce very little return, but require as much attention as the 20% doing deals and creating profit. By keeping a tight structure, I hope we can even that gap.
In summary the first six months have been profitable, which is good. There has been some very hard work in tricky macro conditions, leaving us in a cautiously optimistic position for our full year to end March 2025. In the last month or so our deal pipeline has grown significantly, which although we may not close all by our year-end, will be good for business and as I have said before, our year-end is just a date and not a make or break one. We then just have to live in hope that politicians will wake up to the benefits of a healthy stock market and actually try and stimulate investment and activity and grow the
Andrew Monk
CEO
27 December 2024
The directors of the Company take responsibility for this announcement.
For further information, please contact:
VSA Capital Group plc |
+44 20 3005 5000 |
Andrew Monk, CEO Andrew Raca, Head of Corporate Finance |
|
Galin Ganchev, Finance Director & COO |
|
AQSE Exchange Growth Market Corporate Adviser |
|
Alfred Henry Corporate Finance Limited |
+44 20 8064 4056 |
Nick Michaels / Maya Klein Wassink |
|
|
|
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX-MONTH PERIOD TO 30 SEPTEMBER 2024
|
|
Six months ended 30 September 2024 Unaudited £'000 |
Six months ended 30 September 2023 Unaudited £'000 |
Year ended 31 March 2024 Audited
£'000 |
|
|
|
|
|
|
|
£ |
£ |
£ |
Turnover |
|
1,758 |
1,051 |
1,887 |
Cost of sales |
|
(81) |
(89) |
(180) |
Gross profit |
|
1,677 |
962 |
1,707 |
Other operating income |
|
20 |
20 |
54 |
Administrative expenses |
|
(1,347) |
(1,473) |
(2,828) |
Operating profit / (loss) |
|
350 |
(491) |
(1,067) |
Finance income |
|
3 |
1 |
6 |
(Losses) / gains on investments |
|
(55) |
(1,325) |
(1,670) |
Profit / (loss) on ordinary activities before taxation |
|
298 |
(1,815) |
(2,731) |
Tax on profit / loss on ordinary activities |
|
- |
- |
37 |
Profit / (loss) for the year |
|
298 |
(1,815) |
(2,694) |
Other Comprehensive income |
|
- |
- |
- |
Total Comprehensive income |
|
298 |
(1,815) |
(2,694) |
Earnings per share - profit after tax |
|
|
|
||||
|
pence |
pence |
pence |
|
|||
Basic |
0.8 |
(4.8) |
(7.2) |
|
|||
Diluted |
0.6 |
(4.8) |
(7.2) |
|
|||
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
|
As at 30 September 2024 Unaudited £'000 |
As at 30 September 2023 Unaudited £'000 |
As at 31 March 2024 Audited £'000 |
|||
|
|
|
|
|
||
|
|
|
|
|
||
Non-current assets |
|
|
|
|
||
Property, plant and equipment - right of use |
|
204 |
380 |
292 |
||
Property, plant and equipment - owned |
|
34 |
65 |
52 |
||
Intangible Assets |
|
495 |
827 |
662 |
||
Deferred tax asset |
|
54 |
- |
54 |
||
Total non-current assets |
|
787 |
1,272 |
1,060 |
||
|
|
|
|
|
||
Current assets |
|
|
|
|
||
Trade and other receivables |
|
712 |
323 |
798 |
||
Investments |
|
302 |
1,106 |
375 |
||
Cash and cash equivalents |
|
939 |
546 |
229 |
||
Total current assets |
|
1,953 |
1,975 |
1,402 |
||
|
|
|
|
|
||
Total assets |
|
2,740 |
3,247 |
2,462 |
||
|
|
|
|
|
||
Current liabilities |
|
|
|
|
||
Trade and other payables |
|
198 |
365 |
512 |
||
Finance liabilities - borrowings |
|
108 |
162 |
217 |
||
Total current liabilities |
|
306 |
527 |
729 |
||
Non-current liabilities |
|
|
|
|
||
Finance liabilities - borrowings |
|
- |
163 |
- |
||
Deferred tax liability |
|
73 |
- |
73 |
||
Total non-current liabilities |
|
73 |
163 |
73 |
||
|
|
|
|
|
||
Total liabilities |
|
379 |
690 |
802 |
||
|
|
|
|
|
||
Equity |
|
|
|
|
||
Share Capital |
|
3,703 |
3,524 |
3,524 |
||
Share premium account |
|
644 |
418 |
418 |
||
Share-based payments reserve |
|
3 |
13 |
5 |
||
Accumulated profits/(losses) |
|
(1,989) |
(1,398) |
(2,287) |
||
Total equity |
|
2,361 |
2,557 |
1,660 |
||
|
|
|
|
|
||
Total Equity and Liabilities |
|
2,740 |
3,247 |
2,462 |
||
|
|
|
|
|
||
CONSOLIDATED GROUP CASHFLOW STATEMENT
FOR THE SIX-MONTH PERIOD ENDED 30 SEPTEMBER 2024
|
Six months ended 30 September 2024 |
Six months ended 30 September 2023 |
Year ended 31 March 2024 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
£'000 |
£'000 |
£'000 |
Cash flows from operating activities |
|
|
|
|
Profit / (loss) before income tax |
|
298 |
(1,815) |
(2,731) |
Tax paid |
|
- |
- |
(46) |
Depreciation and amortisation |
|
269 |
270 |
536 |
Loss / (gain) on current asset investments |
|
55 |
1,325 |
1,670 |
Decrease / (increase) in trade and other receivables |
|
86 |
(234) |
(275) |
(Decrease) / increase in trade and other payables |
|
(314) |
(164) |
29 |
Change in share-based payments reserve |
|
(2) |
- |
(9) |
|
|
|
|
|
NET CASH USED IN OPERATING ACTIVITIES |
|
392 |
(618) |
(826) |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Purchase of plant, property and equipment |
|
- |
(3) |
(3) |
Proceeds from other investing activities |
|
22 |
37 |
101 |
Purchase of other investments |
|
- |
(34) |
(99) |
|
|
|
|
|
NET CASH GENERATED FROM INVESTING ACTIVITIES |
|
22 |
- |
(1) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Share capital issue |
|
405 |
- |
- |
Purchase of shares into treasury |
|
- |
- |
- |
New finance leases |
|
- |
- |
- |
Finance lease repayments |
|
(109) |
(109) |
(217) |
NET CASH GENERATED FROM FINANCING ACTIVITIES |
|
296 |
(109) |
(217) |
|
|
|
|
|
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
710 |
(727) |
(1,044) |
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
229 |
1,273 |
1,273 |
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
939 |
546 |
229 |
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX-MONTH PERIOD TO 30 SEPTEMBER 2024
1 |
General Information |
|
|
VSA Capital Group plc is a listed public limited company (Aquis: VSA) incorporated in the
These interim financial statements do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 March 2024 which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.
The interim financial statements for the six months ended 30 September 2024 are unaudited and have not been reviewed by the Company's auditors Hilden Park Accountants Limited. The comparative interim figures for the six months ended 30 September 2023 are also unaudited.
2 Basis of preparation
The accounting policies applied by the Group in the preparation of these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements for the year ended 31 March 2024.
3 Profit or loss per share
|
|
Six months ended 30 September 2024 Unaudited £'000 |
Six months ended 30 September 2023 Unaudited £'000 |
Year ended 31 March 2024 Audited £'000 |
Basic |
|
|
|
|
Profit / (Loss) for the period attributable to owners of the Company |
|
298 |
(1,815) |
(2,695) |
Weighted average number of shares: |
|
38,319,200 |
37,655,266 |
37,655,266 |
Basic earnings / (loss) per share (pence): |
|
0.8 |
(4.8) |
(7.2) |
|
|
|
|
|
Diluted |
|
|
|
|
Profit / (Loss) for the period attributable to owners of the Company |
|
298 |
(1,815) |
(2,695) |
Weighted average number of shares: |
|
49,575,238 |
37,655,266 |
37,655,266 |
Diluted earnings / (loss) per share (pence): |
|
0.6 |
(4.8) |
(7.2) |
The basic and diluted earnings per share were determined by dividing the profit or loss attributable to the equity holders of the Company by the weighted average number of shares outstanding during the periods.
4 |
Called up share capital |
|
|
On 29 August 2024 the Company entered into a strategic partnership with Drakewood Capital Management Limited ("Drakewood"). As part of the strategic partnership the Company issued 4,500,000 new ordinary shares in the Company at a price of 9p per share to Drakewood raising gross and net proceeds of
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