TIDMWSG
RNS Number : 0684O
Westminster Group PLC
29 September 2023
Westminster Group Plc
('Westminster', the 'Group' or the 'Company')
Interim Results for the six months to 30 June 2023
Westminster Group Plc (AIM: WSG), a leading supplier of managed
services and technology-based security solutions, announces its
unaudited interim results for the six months ended 30 June 2023
(the 'Period').
Highlights:
-- Delivered products and services to 35 countries around the world.
-- West African airport operations operating at record levels.
-- Training business operating at record levels.
-- Guarding business expanded, including providing new services for the Historic Royal Palaces.
-- Progress continues to be made with DRC and other Managed Services opportunities.
-- Group revenues GBP3.5 million (H1 2022: GBP3.9 million).
-- Gross profit increased to GBP2.24m (margin: 64%) (H1 2022: GBP1.98m (margin: 51%)).
-- Administrative expenses are down to GBP2.52 million (H1 2022: GBP2.76 million).
-- EBITDA improves to loss of GBP98k (H1 2022: Loss GBP648k).
-- Operating Loss reduced to GBP274k (H1 2022: Loss GBP782k).
-- Loss per share of 0.09p (H1 2022: Loss 0.24p).
Commenting on the results and current trading, Peter Fowler,
Chief Executive of Westminster Group, said:
"I am pleased to report that, despite the global uncertainty and
economic challenges, our underlying business continues to perform
well.
"In H1 our West African airport operations and our training
business were both operating at record levels. Our guarding
business has exceeded internal expectations in the Period, and we
saw a number of contracts extended and expanded, including
providing services for the Historic Royal Palaces. We have
delivered products and services to 35 countries around the world,
including some important new contract wins plus we have continued
to progress our DRC project and other large-scale
opportunities.
"We look forward to delivering further growth and improvements
over the remainder of 2023, building on our 2022 results. The key
to achieving this, of course, is to secure new contracts with
enough time to recognise revenues in the year and we are working
hard to deliver that. We remain positive about our future growth
prospects."
Westminster Group Plc Media enquiries via Walbrook
PR
Rt. Hon. Sir Tony Baldry - Chairman
Peter Fowler - Chief Executive Officer
Mark Hughes - Chief Financial Officer
Strand Hanson Limited (Financial & Nominated
Adviser)
James Harris 020 7409 3494
Ritchie Balmer
Richard Johnson
Zeus Capital Limited (Broker)
Louisa Waddell
Simon Johnson 020 3829 5000
Walbrook (Investor Relations)
Tom Cooper 020 7933 8780
Paul Vann
Nick Rome Westminster@walbrookpr.com
Notes:
Westminster Group plc is a specialist security and services
group operating worldwide via an extensive international network of
agents and offices in over 50 countries.
Westminster's principal activity is the design, supply and
ongoing support of advanced technology security solutions,
encompassing a wide range of surveillance, detection (including
Fever Detection), tracking and interception technologies and the
provision of long-term managed services contracts such as the
management and running of complete security services and solutions
in airports, ports and other such facilities together with the
provision of manpower, consultancy and training services. The
majority of its customer base, by value, comprises governments and
government agencies, non-governmental organisations (NGOs) and
blue-chip commercial organisations.
The Westminster Group Foundation is part of the Group's
Corporate Social Responsibility activities.
www.wg-foundation.org
The Foundation's goal is to support the communities in which the
Group operates by working with local partners and other established
charities to provide goods or services for the relief of poverty
and the advancement of education and healthcare particularly in the
developing world.
The Westminster Group Foundation is a Charitable Incorporated
Organisation, CIO, registered with the Charities Commission number
1158653.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN
ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 ("MAR") WHICH
IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT
2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN
Chief Executive O cer's Review
Overview
In our 2022 Annual Report, I stated we were looking to build on
the progress we had made in that year and that Q1 traded ahead of
budget. I am pleased to report that, despite the global uncertainty
and economic challenges, our underlying business continues to meet
internal expectations.
H1 2023 we achieved revenues of GBP3.5m (H1 2022: GBP3.9m). The
reduction in revenues is partly as a result of terminating the
Ghana port operation in February 2023. as previously advised,
however this has largely been offset by other parts of the business
performing well, in some cases at record levels, and partly as a
result of delayed Technology sales due to the economic
uncertainties impacting purchasing decisions. However, an
improvement in margins meant we achieved an improved gross profit
of GBP2.2m 13% up on H1 2022 (GBP2.0m) and this together with a
reduction in overhead costs as a result of our ongoing cost
restructuring strategy, enabled us to deliver a significant
improvement in EBITDA loss to GBP98k (H1 2022: loss GBP648k), well
ahead of budget for the half year. This is also despite an
exceptional GBP234k impact from exchange rate losses.
Our West African airport operations have continued the growth we
saw in 2022 and are currently running at record levels. The new
terminal operation and our collaboration with Summa are working
well and have been a positive development.
Our guarding business has performed well in the Period, and we
have seen a number of contracts extended and expanded, including
providing services for the Historic Royal Palaces.
Our training businesses have also performed well, trading at
record levels, securing various new contracts and continuing to
provide services at one of the UK's largest airports.
In H1 2023, we delivered products and services to 35 countries
around the world, including some important new contract wins such
as explosive detection systems to Saudi Arabia, and security
equipment to a leading French airport, which we believe will lead
to further business in the sector. We are pleased to have been
selected to provide security for the Echo of Superbloom display at
the Tower of London and we continue to receive a healthy level of
enquiries for our products and services from around the world. That
said, Technology sales in the Period are behind budget as the
global economic situation continues to have an impact on sentiment
and customer's ability to fund new capital-intensive contracts.
However, we do have several potential projects in the pipeline,
including the previously delayed projects which we are negotiating
alternative payments schemes and which we still expect to
materialise in H2 2023.
The Martyn's Law (Protect Duty) legislation, which will set out
standards to protect patrons and the general public from terrorist
attacks when in crowded spaces, was expected to come into force
within the UK during 2023, but due to parliamentary procedures, is
now expected to be in the King's Speech to parliament on 7 November
2023, for implementation in 2024. The Home Office estimates that
650,000 UK businesses could be affected. This could include
settings such as pubs, shopping centres, music venues, parks,
places of worship and any other place where large gatherings of
people occur. With Westminster's expertise and portfolio of
products and services we are well placed to assist businesses and
organisations improve their security. In this respect, we have
already secured a number of important contracts ahead of the
legislation coming into force and are in contract discussions with
a number of other potential customers. We believe this could be a
sizeable business opportunity for the Group. For more information
on Protect Duty, see here: https://www.wg-plc.com/protect-duty#
A key part of our growth strategy is of course delivering on new
large-scale, long-term Managed Services projects and in this
respect, we are working hard to deliver on the numerous project
opportunities we have developed. Our long-standing DRC project
continues to move forward albeit at a frustratingly slow pace, but
we have every reason to believe this will be finalised this year.
In addition, we are close to finalising one or two other such
sizeable Managed Services prospects and whilst timing is
notoriously difficult to call when dealing with government
organisations, we could deliver on one of these near-term
opportunities at any time.
Our settlement negotiations with Scanport regarding early
termination of the Ghana Port operation appears to be nearing a
conclusion and we are hopeful of receiving a cash payment before
the end of the year.
Financial
Revenues were at GBP3.5 million (H1 2022: GBP3.9 million) for
the first half year. This decrease is represented primarily by the
end of the Ghana port operation and lower Technology sales due to
economic uncertainty in the world, offset by strong performances in
other areas of the business.
The Group generated a gross profit of GBP2.2 million (H1 2022:
GBP2.0 million) which equates to a gross margin of 64% (H1 2022:
51%). The percentage increase is due to cost control and an
increase in high margin services sales in H1 2023 changing the
margin mix.
The operating loss was GBP0.274 million (H1 2022: loss of
GBP0.782 million). This improvement is due to improved margins and
lower overheads as a result of the cost restructuring strategy we
have been implementing.
Cash balance as at 30 June 2023 was: GBP0.1 million (30 June
2022: GBP0.4 million, 31 December 2022: GBP0.3 million). The Group
also has overdraft facilities of c. GBP0.4 million which were
unutilised at 30 June 2023. Working capital has improved from 2022
with debtor balances at GBP4.8m (2022: GBP3.7m) vs creditors of
GBP1.9m (GBP2.1m)
Earnings per share improved to a loss of 0.09 pence (H1 2022:
0.24 pence loss).
Outlook
Our business is traditionally H2 weighted, and we believe that
will continue to be the case this year, accordingly we look forward
to delivering continued growth and improvements over the remainder
of 2023 building on our 2022 results. The key to achieve this, of
course, is to secure new contracts with enough time to recognise
revenues in the year and we are working hard to deliver that. We
remain positive about our future growth prospects.
Peter Fowler,
Group Chief Executive
28 September 2023
Condensed consolidated statement of comprehensive income
(unaudited)
for the six months ended 30 June 2023
Note Six months Six months Year ended
ended 30 ended 30 31 December
June 2023 June 2022 2022
Total Total Total
GBP'000 GBP'000 GBP'000
Revenue 5 3,482 3,916 9,528
Cost of sales (1,241) (1,934) (4,393)
Gross profit 2,241 1,982 5,135
Administrative expenses (2,515) (2,764) (5,460)
Operating loss 7a (274) (782) (325)
Analysis of operating loss (274) (782) (325)
Add back depreciation and amortisation 104 134 252
Add back share-based expense 72 - -
------------------- ----------------------
EBITDA loss from underlying operations 6 (98) (648) (73)
---------------------------------------- ----- ----------- ------------------- ----------------------
Finance Costs 8 (13) (5) (40)
(Loss) before taxation (287) (787) (365)
Taxation 7b - - 354
Total comprehensive income for
the Period (287) (787) (11)
Profit / (loss) and total comprehensive income attributable
to:
Owners of the parent (281) (788) 121
Non-controlling interest (6) 1 (132)
Loss and total comprehensive income (287) (787) (11)
----------------------------------------------- ----------- ------------------- ----------------------
Earnings per share (pence) 7c (0.09) (0.24) 0.00
Condensed consolidated balance sheet (unaudited)
as at 30 June 2023
As at As at As at 31
30 June 30 June December
2023 2022 2022
Note GBP'000 GBP'000 GBP'000
Goodwill 614 614 615
Other intangible assets 80 120 106
Property, plant and equipment 1,817 1,924 1,825
Deferred Tax 1,309 953 1,308
Total Non-Current Assets 3,820 3,611 3,854
--------- --------- ----------
Inventories 459 795 485
Trade and other receivables 4,818 3,747 4,808
Cash and cash equivalents 54 398 289
Total Current Assets 5,331 4,940 5,582
--------- --------- ----------
Non-current receivable 369 411 593
Total Assets 9,520 8,962 10,029
========= ========= ==========
Called up share capital 9 331 331 331
Share based payment reserve 433 1,007 964
Revaluation reserve 139 139 139
6,89
Retained earnings 9 5,589 6,503
--------- --------- ----------
Equity attributable to
Owners of the parent 7,8 02 7,066 7,937
Non-controlling interest (528) (389) (522)
Total Shareholders' Equity 7,2 74 6,677 7,415
--------- --------- ----------
Non-current borrowings 10 49 49 27
Total Non-Current Liabilities 49 49 27
--------- --------- ----------
Current borrowing 10 182 60 194
Contractual liabilities 69 69 80
Trade and other payables 1,946 2,107 2,313
Total Current Liabilities 2,197 2,236 2,587
--------- --------- ----------
Total Liabilities 2,246 2,285 2,614
Total Liabilities and Shareholders'
Equity 9,520 8,962 10,029
========= ========= ==========
Condensed consolidated statement of changes in equity
(unaudited)
for the six months ended 30 June 2023
Called Share Merger Share Revaluation Retained Total Non-controlling Total
up share premium relief based reserve earnings interest share-holders'
capital account reserve payment equity
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1(st)
January
2023 331 - - 964 139 6,503 7,937 (522) 7,415
Loss for the
Period - - - - - (281) (281) (6) (287)
Total
comprehensive
expense for
the
Period - - - - - (281) (281) (6) (287)
------------------------- -------- -------- -------- ------------ --------- -------- ---------------- ---------------
Transactions with owners
in their capacity as owners:
Lapse / waiver
of
Share Options - - - (603) - 603 - - -
Issue of new
warrants
& Share
Options - - - 72 - - 72 - 72
Exchange rate
movement
in equity - - - - - 74 74 74
------------------------- -------- -------- -------- ------------ --------- -------- ---------------- ---------------
- - - (531) - 677 146 - 146
------------------------- -------- -------- -------- ------------ --------- -------- ---------------- ---------------
As at 30th
June
2023 331 - - 433 139 6,899 7,802 (528) 7,274
--------------- ------------------------- -------- -------- -------- ------------ --------- -------- ---------------- ---------------
for the six months ended 30 June 2022
Called Share Merger Share Revaluation Retained Total Non-controlling Total
up premium relief based reserve earnings interest share-holders'
share account reserve payment equity
capital reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1(st)
January
2022 331 - - 1,043 139 6,340 7,853 (390) 7,463
Loss for the
Period - - - - - (788) (788) 1 (787)
Total
comprehensive
expense for
the
Period - - - - - (788) (788) 1 (787)
-------- -------- -------- -------- ------------ --------- -------- ---------------- ---------------
Transactions with owners
in their capacity as
owners:
Lapse of share
options - - - (36) - 36 - - -
Other movement
in
equity - - - - - 1 1 - 1
- - - (36) - 37 1 - 1
--------------- -------- -------- -------- -------- ------------ --------- -------- ---------------- ---------------
As at 30th
June
2022 331 - - 1,007 139 5,589 7,066 (389) 6,677
--------------- -------- -------- -------- -------- ------------ --------- -------- ---------------- ---------------
Called Share Merger Share Revaluation Retained Total Non-controlling Total
up share premium relief based reserve earnings interest
capital account reserve payment
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
AS AT 1
JANUARY 2022 331 - - 1,043 139 6,340 7,853 (390) 7,463
--------------- ------------- -------------- --------------- --------------- ------------------- --------- ------------- ---------------- -----------
Lapse of share
options - - - (79) - 79 - - -
Other
movements in
equity - - - - - (37) (37) - (37)
TRANSACTIONS
WITH OWNERS - - - (79) - 42 (37) - (37)
--------------- ------------- -------------- --------------- --------------- ------------------- --------- ------------- ---------------- -----------
Total
comprehensive
expense
for the year - - - - - 121 121 (132) (11)
AS AT 31
DECEMBER 2022 331 - - 964 139 6,503 7,937 (522) 7,415
--------------- ------------- -------------- --------------- --------------- ------------------- --------- ------------- ---------------- -----------
Consolidated Cash Flow Statement (unaudited)
for the six months ended 30 June 2023
Six months Six months Year ended
ended 30 ended 30 31 December
June 2023 June 2022 2022
Total Total Total
Note GBP'000 GBP'000 GBP'000
Loss after taxation (287) (787) (11)
Tax - - (354)
------------------- --------------------- -------------
Loss before taxation (287) (787) (365)
Non-cash adjustments 8 230 136 252
Net changes in working capital 8 (135) 175 (569)
------------------- --------------------- -------------
Cash outflow from operating activities (192) (476) (682)
------------------- --------------------- -------------
Investing activities
Purchase of property, plant and equipment (66) (132) (111)
Purchase of intangible assets - - (12)
------------------- --------------------- -------------
Cash outflow from investing activities (66) (132) (123)
------------------- --------------------- -------------
Financing activities
Increase in debt 36 65 200
Finance cost (4) (3) (40)
Loan drawdown (9) - -
Other loan repayments, including interest - - (10)
------------------- --------------------- -------------
Cash inflow from financing activities 23 62 150
------------------- --------------------- -------------
Decrease in cash and cash equivalents
in the Period (235) (546) (655)
Cash and cash equivalents at the
beginning of the Period 289 944 944
Cash and cash equivalents at the
end of the Period 54 398 289
------------------- --------------------- -------------
Notes to the unaudited financial statements
for the six months ended 30 June 2023
1. General information and nature of operations
This condensed consolidated interim financial report for the
half-year reporting period ended 30 June 2023 has been prepared in
accordance with Accounting Standard IAS 34 Interim Financial
Reporting. These unaudited interim financial statements were
approved by the board on 28 September 2023. The 31 December 2022
numbers are extracted from the Group's audited accounts.
The interim report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this
report is to be read in conjunction with the annual report for the
year ended 31 December 2022 and any public announcements made by
Westminster Group Plc during the interim reporting period
Westminster Group Plc (the "Company") was incorporated on 7
April 2000 and is domiciled and incorporated in the United Kingdom
and quoted on AIM. The Group's financial statements for the
six-month period ended 30 June 2023 consolidate the individual
financial information of the Company and its subsidiaries. The
Group designs, supplies and provides advanced technology security
solutions and services to governmental and non-governmental
organisations on a global basis.
The Group does not show any distinct seasonality although
traditionally the second half is stronger than the first.
2. Significant changes in the current reporting period
The impact of the pandemic is receding, but uncertainty remains
in the global economy. However, we continue to supply globally with
an active business development program. The West African Airport
has returned from the pandemic hiatus to levels above the
pre-pandemic passenger numbers. Training is also recovering
strongly with a buoyant market both in the UK and overseas. Please
refer to the Chief Executive Officers review for further
information.
3. Basis of preparation
This condensed consolidated interim financial report for the
half-year reporting period ended 30 June 2023 has been prepared in
accordance with Accounting Standard IAS 34 Interim Financial
Reporting.
The interim report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this
report is to be read in conjunction with the annual report for the
year ended 31 December 2022 and any public announcements made by
Westminster Group Plc during the interim reporting period.
The accounting policies adopted are consistent with those of the
previous financial year and corresponding interim reporting period
and the adoption of new and amended standards as set out below.
These consolidated interim financial statements for the six
months ended 30 June 2023 have neither been audited nor formally
reviewed by the Group's auditors. The financial information for the
year ended 31 December 2022 set out in this interim report does not
constitute statutory accounts as defined in section 435 of the
Companies Act 2006 but is derived from those accounts.
The statutory financial statements for the year ended 31
December 2022 have been reported on by the Company's auditors and
delivered to the Registrar of Companies. A copy is available at
https://www.wsg-corporate.com/investor-relations/publications/
.
3(a) New and amended standards adopted by the Group
The following new or amended standards relevant to the group
became applicable for the current reporting period.
-- IAS 1 - Presentation of Financial Statements
-- IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
-- Deferred Tax Related to Assets and Liabilities Arising from a
Single Transaction - Amendments to IAS 12
-- IAS 16 - Property, Plant and Equipment
-- IAS 37 - Provisions, Contingent Liabilities and Contingent Assets
-- Income Taxes (Amendments to IAS 12)
The Group did not have to change its accounting policies or make
retrospective adjustments as a result of adopting these
standards.
3(b) Impact of standards issued but not yet applied by the entity
The Group does not expect to be significantly impacted by the
adoption of standards issued but not yet applied.
4. Going concern
The directors have considered the way the Group has continued to
trade. Projections have demonstrated that the group has sufficient
funds to perform its obligations. At the time of approving this
interim report, and in view of the foregoing, the directors have a
reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future. Thus,
they continue to adopt the going concern basis of accounting in
preparing the financial statements.
5. Segment reporting
Operating segments
The Board considers the Group on a Business Unit basis. Reports
by Business Unit are used by the chief decision-makers in the
Group. The Business Units operating during the Period are the main
operating work streams, Services and Technology (products and
solutions).
6 Months to 30 June 2023
Managed Technology Group Group Total
Services and Central
----------------------------------- ------------------ ------------------- -------------------- --------------
GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- ------------------ ------------------- -------------------- --------------
6 MONTHS TO JUNE 2023
Supply of products - 379 - 379
Supply and installation contracts - 13 - 13
Maintenance and services 2,673 147 - 2,820
Training courses 263 6 - 269
----------------------------------- ------------------ ------------------- -------------------- --------------
Revenue 2,936 545 - 3,482
----------------------------------- ------------------ ------------------- -------------------- --------------
Segmental underlying EBITDA 1,705 (109) (1,694) (98)
Share based expense 8 - - (72) (72)
Depreciation & amortisation (72) (2) (30) (104)
----------------------------------- ------------------ ------------------- -------------------- --------------
Segment operating result 1,633 (111) (1,796) (274)
Finance cost - (1) (12) (13)
----------------------------------- ------------------ ------------------- -------------------- --------------
Profit/ (loss) before tax 1,633 (112) (1,808) (287)
Income tax charge - - - -
----------------------------------- ------------------ ------------------- -------------------- --------------
Profit/(loss) for the period 1,633 (112) (1,808) (287)
----------------------------------- ------------------ ------------------- -------------------- --------------
Segment assets 5,740 1,217 2,563 9,520
Segment liabilities 1,155 550 541 2,246
Capital expenditure 51 - 15 66
----------------------------------- ------------------ ------------------- -------------------- --------------
6 Months to 30 Jun 2022
Services Technology Group Group Total
and Central
----------------------------- ------------ ----------------------- --------------- --------------- --------------
GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- ------------ ----------------------- --------------- ---------------
6 MONTHS TO JUNE 2022
Supply of products - 621 - 621
Supply and installation - - - -
contracts
Maintenance and services 3,014 155 - 3,169
Training courses 126 - - 126
----------------------------------- ------
Revenue 3,140 776 - 3,916
----------------------------------- ------ ----------------------- --------------- ---------------
Segmental underlying EBITDA 1,705 (184) (2,169) (648)
Depreciation & amortisation (72) (2) (60) (134)
Segment operating result 1,633 (186) (2,229) (782)
Finance cost - (1) (4) (5)
----------------------------------- ------ ----------------------- --------------- --------------- --------------
Profit/ (loss) before tax 1,633 (187) (2,233) (787)
Income tax charge - - - -
Profit/(loss) for the period 1,633 (187) (2,233) (787)
------ ----------------------- --------------- ---------------
Segment assets 5,182 1,142 2,638 8,962
----------------------------------- ------ ----------------------- --------------- ---------------
Segment liabilities 1,194 550 541 2,285
----------------------------------- ------ ----------------------- --------------- ---------------
Capital expenditure 117 - 15 132
----------------------------------- ------ ----------------------- --------------- ---------------
Marketing segments
Our extensive portfolio of products and services are categorised
in three key focus sectors - Land, Sea and Air. We are starting to
report on these sectors.
Six months Six months
ended 30 June ended 30 June
2023 2022
GBP'000 GBP'000
---------------
Land 1,004 1,056
Sea 103 593
Air 2,375 2,267
Total revenue 3,482 3,916
--------------- --------------- ---------------
Geographical areas
The Group's international business is conducted on a global
scale, with agents present in all major continents. The following
table provides an analysis of the Group's sales by geographical
market, irrespective of the origin of the goods/services.
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
--------------- -------------
United Kingdom and
Europe 1,164 1,005 2,520
Africa 2,203 2,710 6,704
Middle East 92 58 68
Rest of the World 23 143 236
Total revenue 3,482 3,916 9,528
--------------------
6. Reconciliation of adjusted EBITDA
A reconciliation of adjusted EBITDA to operating profit before
income tax is provided as follows:
Six months Six months Year ended
ended ended 30 31 December
30 June June 2022 2022
2023
GBP'000 GBP'000 GBP'000
(Loss) from Operations (274) (782) (325)
Depreciation, amortisation and impairment
charges 104 134 252
----------- -----------
Reported EBITDA (170) (648) (73)
Share based expense 72 - -
Exceptional Items - - -
Adjusted EBTIDA (loss) (98) (648) (73)
--------------------------------------------
Adjusted EBITDA is an alternative performance measure. For
further details refer to the 31 December 2022 accounts.
7. Income statement information
a. Significant Items
Profit for the half year to 30 June 2023 includes no items that
are unusual because of their nature, size or incidence.
b. Income Tax
Income tax expense is recognised based on management's estimate.
The Group has significant tax losses in the UK brought forward from
prior years and does not expect to have to provide any material
amount for tax.
Deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which
deductible temporary differences can be utilised. The Group's
projections show the expectation of future profits, hence in 2018 a
deferred tax asset was recognised. Reviews were performed in
subsequent years which has confirmed those expectations.
c. Loss per share
Earnings / Loss per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the Period. For
diluted earnings per share the weighted average number of ordinary
shares in issue is adjusted to assume conversion of all dilutive
potential ordinary shares. Only those outstanding options that have
an exercise price below the average market share price in the
Period have been included. For each period, the issue of additional
shares on exercise of outstanding share options would decrease the
basic loss per share and therefore there is no dilutive effect.
The weighted average number of ordinary shares is calculated as
follows:
Six months Six months Year ended
ended 30 ended 30 31 December
June 2023 June 2022 2022
'000 '000 '000
Number of issued ordinary shares at the
start of period 330,515 330,515 330,515
Weighted average basic and diluted number
of shares for period 330,515 330,515 330,515
=========== =========== =============
GBP'000 GBP'000 GBP'000
Loss and total comprehensive expense (287) (787) (11)
Loss per share (0.09)p (0.24)p (0.0)p
8. Cash flow adjustments and changes in working capital
Six months Six months Year ended
ended 30 ended 30 31 December
June 2023 June 2022 2022
Total Total Total
GBP'000 GBP'000 GBP'000
Adjustment for non-cash items
Depreciation, amortisation and impairment
of non-financial assets 104 134 252
Finance costs 13 5 40
Movement in right to use asset 50 - (30)
(Profit) on disposal of non-financial assets (5) (2) (4)
IFRS 16 interest adjustment (4) (1) (6)
Share-based payment expenses 72 - -
Total adjustments 230 136 244
=========== ==================== =============
Net changes in working capital:
Decrease / (increase) in inventories 26 (114) 196
Decrease / (increase) in trade and other
receivables (10) (86) (1,147)
Decrease / (increase) in long term receivables 224 13 (169)
Increase / (decrease) in contract liabilities (11) (18) (7)
Increase / (decrease) in trade and other
payables (364) 380 558
Total increase / (decrease) in working capital (135) 175 (569)
=========== ==================== =============
9. Called up share capital
Ordinary Share Capital 6 months to 6 months to 30th Year to 31st
30th June 2023 June 2022 December 2022
Number GBP'000 Number GBP'000 Number GBP'000
-------------------------- ------------ -------- ------------ -------- ------------ --------
At the beginning of
the period 330,514,660 331 330,514,660 331 330,514,660 331
Arising on exercise - - - - - -
of share options and
warrants
Other issue for cash - - - - - -
At the end of the period 330,514,660 331 330,514,660 331 330,514,660 331
-------------------------- ------------ -------- ------------ -------- ------------ --------
10. Borrowings
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
Current borrowings (due <
1 year)
Loan 112 - 132
Lease Debt 70 60 62
--------------- --------------- -------------
Total current borrowings 182 60 194
--------------- --------------- -------------
Non-current borrowings (due
> 1 year)
Lease Debt 49 49 27
--------------- --------------- -------------
Total non-current borrowings 49 49 27
--------------- --------------- -------------
Total borrowings 231 109 221
=============== =============== =============
11. Contingencies
The RiverFort EPSA was described in the 2020, 2021 and 2022
accounts. In summary, in 2020 the company issued 14m ordinary
shares and received a GBP1.5m mezzanine loan under the RiverFort
EPSA. At the same time under the EPSA the company issued 14m shares
and booked a sundry debt of GBP1.75m. The loan was to be repaid and
the sundry debt settled by selling down the shares. The mezzanine
loan was fully repaid in December 2020. As at the 30 June 2023
there remained shares still to be sold and a residual sundry debt
for those shares. Because of the low share price, had the remaining
shares been sold at 30 June 2023 there would have been a loss of
GBP1,054,000 (30 June 2022: GBP1,066,000 and 31 Dec 2021:
GBP1,041,000) on this debt. However, the shares do not have to be
fully sold at this time; and there is reason to believe that it
will be at a price higher in the future than the current price
level which will be enough to recoup the losses.
In February 2021, Clydesdale Bank PLC trading as Yorkshire Bank
offered the Group an overdraft and other banking facilities. As a
condition of these facilities the Company entered into a
multilateral charge and guarantee in respect of bank overdrafts and
other facilities of all companies within the Group.
12. Events after the Reporting Period
There were no material events which occurred after the Period
end.
13. Copies of interim financial statements
A copy of these interim financial statements is available on the
Company's website, www.wsg-corporate.com and from the Company
Secretary at the company's registered office, Westminster House,
Blacklocks Hill, Banbury, Oxfordshire, OX17 2BS.
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END
IR SEEFMAEDSELU
(END) Dow Jones Newswires
September 29, 2023 02:00 ET (06:00 GMT)
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