TIDMAUK

RNS Number : 5420Q

Aukett Swanke Group PLC

29 June 2022

Aukett Swanke Group Plc

Interim results

For the six months ended 31 March 2022

Aukett Swanke Group Plc ("the Group"), a company that principally provides architectural and interior design services, is pleased to announce its interim results for the six-month period ended 31 March 2022.

Highlights

Total revenue* increases to GBP5.78m (2021: GBP5.28m)

Revenue from continuing operations increases to GBP4.53m (2021: GBP3.70m)

United Kingdom returns to profit before group costs of GBP40k (2021: loss GBP567K)

Group costs reduced by 30% to GBP419k (2021: GBP598k)

Post period disposal of interest in Middle East operation for AED 5.0m (GBP1.1m)

Improving order book

*Continuing and discontinued operation revenue combined

Commenting on the interim results, CEO Nicholas Thompson said:

" The period under review highlights a return to growth, particularly in the UK and a significant reduction in the running costs of the Group as we progress our recovery strategy."

For further information please contact:

 
 Aukett Swanke Group Plc 
                                                      +44 (0) 20 7843 
 Nicholas Thompson, Antony Barkwith                              3000 
 
 Strand Hanson Limited (Financial and Nominated 
  Adviser) 
                                                      +44 (0) 20 7409 
 James Spinney, James Bellman                                    3494 
 
 
 Arden Partners plc (Broker) 
 John Llewellyn-Lloyd, Louisa Waddell, Benjamin       +44 (0) 20 7614 
  Onyeama-Christie                                               5900 
 
 
 Investor/Media 
                                                     +44 (0) 7979 604 
 Chris Steele                                                     687 
 

Interim statement

Overview

In the half year under review and subsequently there has been a marked improvement in the Group's trading and financial position.

The result for the six months ended 31 March 2022, shows revenues (from continuing and discontinued operations combined) increasing by GBP500k to GBP5.78m (2021: GBP5.28m) and with this our losses before tax substantially reduced to GBP413k (2021: GBP1,017k).

Continuing operations' revenues increased by 22% to GBP4.53m (2021: GBP3.70m) and the loss before tax fell significantly to GBP152k (2021: GBP737k) evidencing the progress being made in restoring the group's underlying profitability. Revenues from discontinued operations fell by 21% to GBP1.25m (2021: GBP1.58m) and the loss before tax showed a small reduction at GBP261k (2021: GBP280k).

The post-period disposal of John R Harris & Partners Limited ("John R Harris") to the local management team has also significantly improved the Group's cash position.

Group Results

Within the overall result, the United Kingdom increased revenues to GBP4.43m (2021: GBP3.44m) and net of consultants, revenues rose by GBP714k to GBP3.31m (2021: GBP2.59m). As a result, the prior year loss before management charges of GBP567k moved into a profit of GBP40k for the reporting six months. In effect 85% of the growth dropped straight to the bottom line.

Continental European revenues were down 64% (locally 42%) as the Turkish lira depreciated by c.80% such that revenues were only GBP94k (2021: GBP258k). Profits before management charges for Continental Europe, as a whole, also reduced to GBP123k (2021: GBP227k). Both German operations continue to perform well in a post covid market.

Elsewhere the operating results were not so favourable. The Middle East continued to lose revenues with a fall of 21% to GBP1.25m (2021: GBP1.58m), resulting in an increased loss of GBP157k (2021: GBP79k) before management charges. This was further impacted by the closure costs related to the numerous licences that were previously required in the region. However, since the period end, we have disposed of our interest in the main operation, John R Harris, and we continue to downsize our residual operations.

A pleasing upturn in new business wins (see below) in both the United Kingdom and Continental Europe, leads us to expect further improvement in the second half.

Having commented on the disproportionate cost of the Group compared to the operations we are pleased to report a reduction in Group costs in the period of 30% to GBP419k (2021: GBP598k). This was mainly due to a reduction in executive salary costs as part of retirement planning processes.

Projects

Across the Group there have been significant new wins and project completions. In the UK preliminary stages on a range of Hybrid mixed use projects have begun for Related Argent, Segro, LaSalle, Freshwater, Regal London, Joseph Homes, Royal London Asset Management and Network Rail. The Eastside Locks project for Birmingham City University was completed earlier in the year with the fit-out now under way. Planning consent has been secured for the 30,000 sqm St. George's House East project in Wimbledon.

Executive Architecture project wins include Project Apple, the 19ha redevelopment in Surrey for biopharmaceutical giant UCB Celltech with the Heatherwick Studio and No's 74 & 84 Moorgate for the City of London and Osborne with Ben Adam Architects. Completions in London include the 21,000 sqm Featherstone building for Derwent with architect Morris + Company and the topping out of the 15,000 sqm n2 Nova Evolved workplace building for Landsec with Lynch Architects.

In Germany completions include the IHK Business Welcome Center and the refurbishment of the central areas of KaDeWe department store in Berlin, and new wins include the fit-out planning of 14,000 sqm in the Am Tacheles building for tenant Autodoc. In Frankfurt further refurbished floors of the iconic MesseTurm have been completed for landlord Blackstone together with fit-outs for international banking, legal and IT sector clients. In Turkey new concept designs were won and completed for the 10,000 sqm Mercedes Benz Office HQ, the 25,000 sqm Cengiz Altunizade Campus in Istanbul and their 4,000 sqm Ankara HQ building.

Disposal

Shortly after the half year the Group concluded the disposal of its interest in John R Harris to the local management team operating out of the Middle East.

The disposal provided an initial inflow of cash consideration along with a deferred consideration sum payable over 5 years, for a total GBP1.1m. The Group has also entered into a Marketing Agreement, covering the use of the Group's project portfolio and associated materials, over the deferred consideration period for an additional sum in order to maintain the Group's interest in this important market. The Group continues to operate in the Middle East but on a much-reduced basis.

Prospects

The Group continues to focus on enhancing shareholder value. This, inter alia, includes opportunities for further disposals and funding to support our new growth strategy; consideration of a share consolidation to improve the share register and allow many small investors to realise their investment on an economic basis whilst significantly reducing the cost to the Group of servicing a register with many hundreds of very small shareholdings; and, following my retirement, the appointment of a successor CEO to lead the business in the next phase of its operations.

Overall, we see the performance of the Group improving in the second half.

Nicholas Thompson

Chief Executive Officer

28 June 2022

Consolidated income statement

For the six months ended 31 March 2022

 
                                      Note     Unaudited     Unaudited         Audited 
                                              six months    six months         year to 
                                                   to 31         to 31    30 September 
                                                   March         March            2021 
                                                    2022          2021         GBP'000 
                                                 GBP'000       GBP'000 
 Continuing Operations 
 
 Revenue                               3           4,529         3,699           9,192 
 
 Sub consultant costs                            (1,152)         (912)         (2,887) 
-----------------------------------  -----  ------------  ------------  -------------- 
 Revenue less sub consultant 
  costs                                            3,377         2,787           6,305 
 
 Personnel related costs                         (2,921)       (2,798)         (5,594) 
 Property related costs                            (531)         (534)         (1,041) 
 Other operating expenses                          (240)         (402)           (695) 
 Other operating income                4             144           188             358 
-----------------------------------  -----  ------------  ------------  -------------- 
 Operating loss                                    (171)         (759)           (667) 
 
 Finance costs                                      (46)          (49)            (94) 
-----------------------------------  -----  ------------  ------------  -------------- 
 Loss after finance costs                          (217)         (808)           (761) 
 
 Impairment of intangibles                             -             -               - 
 Share of results of associate 
  and joint ventures                                  65            71             166 
-----------------------------------  -----  ------------  ------------  -------------- 
 Loss before tax                       3           (152)         (737)           (595) 
 
 Tax credit                                           26           409             395 
-----------------------------------  -----  ------------  ------------  -------------- 
 Loss from continuing operations                   (126)         (328)           (200) 
 
 Loss from discontinued operations     5           (261)         (280)           (936) 
-----------------------------------  -----  ------------  ------------  -------------- 
 Loss for the period                               (387)         (608)         (1,136) 
-----------------------------------  -----  ------------  ------------  -------------- 
 
 Loss attributable to: 
    Owners of Aukett Swanke 
     Group Plc                                     (387)         (603)         (1,123) 
    Non-controlling interests                          -           (5)            (13) 
-----------------------------------  -----  ------------  ------------  -------------- 
 Loss for the period                               (387)         (608)         (1,136) 
-----------------------------------  -----  ------------  ------------  -------------- 
 
 Basic and diluted earnings 
  per share for loss attributable 
  to the ordinary equity holders 
  of the Company: 
   From continuing operations                    (0.07p)       (0.20p)         (0.12p) 
   From discontinued operations                  (0.16p)       (0.16p)         (0.57p) 
-----------------------------------  -----  ------------  ------------  -------------- 
 Total loss per share                  6         (0.23p)       (0.36p)         (0.69p) 
-----------------------------------  -----  ------------  ------------  -------------- 
 
 

Consolidated statement of comprehensive income

For the six months ended 31 March 2022

 
                                             Unaudited     Unaudited         Audited 
                                            six months    six months         year to 
                                                 to 31         to 31    30 September 
                                                 March         March            2021 
                                                  2022          2021         GBP'000 
                                               GBP'000       GBP'000 
 Loss for the period                             (387)         (608)         (1,136) 
 
 Other comprehensive income: 
 Currency translation differences 
  of foreign operations                           (42)         (108)           (107) 
 Currency translation differences 
  on translation of discontinued 
  operations                                       (7)          (55)            (50) 
----------------------------------------  ------------ 
 Other comprehensive loss for 
  the period                                      (49)         (163)           (157) 
 
 Total comprehensive loss for 
  the period                                     (436)         (771)         (1,293) 
----------------------------------------  ------------  ------------  -------------- 
 
 Total comprehensive loss is 
  attributable to: 
    Owners of Aukett Swanke Group 
     Plc                                         (436)         (762)         (1,280) 
    Non-controlling interests                        -           (9)            (13) 
----------------------------------------  ------------  ------------  -------------- 
 Total comprehensive loss for 
  the period                                     (436)         (771)         (1,293) 
 
 Total comprehensive loss attributable 
  to the owners of Aukett Swanke 
  Group Plc arises from: 
    Continuing operations                        (168)         (436)           (307) 
    Discontinued operations                      (268)         (326)           (973) 
----------------------------------------  ------------  ------------  -------------- 
                                                 (436)         (762)         (1,280) 
 ---------------------------------------  ------------  ------------  -------------- 
 

Consolidated statement of financial position

At 31 March 2022

 
                                    Note   Unaudited   Unaudited      Audited 
                                               at 31       at 31        at 30 
                                               March       March    September 
                                                2022        2021         2021 
                                             GBP'000     GBP'000      GBP'000 
 Non current assets 
 Goodwill                                      1,753       2,349        2,370 
 Other intangible assets                         217         593          324 
 Property, plant and equipment                    74         205          155 
 Right-of-use assets                           2,354       2,737        2,546 
 Investment in associate and 
  joint ventures                                 802         779          796 
 Deferred tax                                    265         259          241 
---------------------------------  -----  ----------  ----------  ----------- 
 Total non current assets                      5,465       6,922        6,432 
 
 Current assets 
 Trade and other receivables                   2,605       4,303        3,876 
 Contract assets                                 599         911          982 
 Current tax                                       -         362           99 
 Cash at bank and in hand            8            38         591          515 
---------------------------------  -----  ----------  ----------  ----------- 
                                               3,242       6,167        5,472 
 Assets in disposal groups                     1,868           - 
  classified as held for sale                                               - 
 Total current assets                          5,110       6,167        5,472 
 
 Total assets                                 10,575      13,089       11,904 
 
 Current liabilities 
 Trade and other payables                    (2,497)     (4,249)      (3,747) 
 Contract liabilities                          (802)       (797)        (829) 
 Borrowings                          8         (289)       (390)         (83) 
 Lease liabilities                             (539)       (539)        (539) 
                                             (4,127)     (5,975)      (5,198) 
 Liabilities directly associated             (1,006)           - 
  with assets in disposal groups 
  classified as held for sale                                               - 
 Total current liabilities                   (5,133)     (5,975)      (5,198) 
 
 Non current liabilities 
 Borrowings                          8         (292)           -        (417) 
 Lease liabilities                           (2,118)     (2,578)      (2,350) 
 Deferred tax                                   (37)        (44)         (40) 
 Provisions                                    (364)       (889)        (832) 
 Total non current liabilities               (2,811)     (3,511)      (3,639) 
 
 Total liabilities                           (7,944)     (9,486)      (8,837) 
 
 Net assets                                    2,631       3,603        3,067 
---------------------------------  -----  ----------  ----------  ----------- 
 
 
 Capital and reserves 
 Share capital                                 1,652       1,652        1,652 
 Merger reserve                                1,176       1,176        1,176 
 Foreign currency translation 
  reserve                                      (222)       (175)        (173) 
 Retained earnings                           (1,469)       (562)      (1.082) 
 Other distributable reserve                   1,494       1,494        1,494 
---------------------------------  -----  ----------  ----------  ----------- 
 Total equity attributable 
  to 
  equity holders of the Company                2,631       3,585        3,067 
---------------------------------  -----  ----------  ----------  ----------- 
 
 Non-controlling interests                         -          18            - 
---------------------------------  -----  ---------- 
 Total equity                                  2,631       3,603        3,067 
---------------------------------  -----  ----------  ----------  ----------- 
 

Consolidated statement of cash flows

For the six months ended 31 March 2022

 
                                        Note     Unaudited     Unaudited         Audited 
                                                six months    six months         year to 
                                                     to 31         to 31    30 September 
                                                     March         March            2021 
                                                      2022          2021         GBP'000 
                                                   GBP'000       GBP'000 
 Cash flows from operating 
  activities 
 Cash expended by operations             7           (303)         (659)           (896) 
 Interest paid                                           -             -               - 
 Income tax credits received 
  / (paid)                                              99           (1)             262 
-------------------------------------  -----  ------------  ------------  -------------- 
 Net cash outflow from operating 
  activities                                         (204)         (660)           (634) 
 
 Cash flows from investing 
  activities 
 Purchase of property, plant 
  and equipment                                       (13)           (2)            (33) 
 Sale of property, plant and 
  equipment                                              -             -              16 
 Purchase of investments                                 -         (100)           (123) 
 Dividends received                                     46           472             528 
-------------------------------------  -----  ------------  ------------  -------------- 
 Net cash received in investing 
  activities                                            33           370             388 
 
 Net cash outflow before financing 
  activities                                         (171)         (290)           (246) 
 
 Cash flows from financing 
  activities 
 Principal paid on lease liabilities                 (232)         (226)           (455) 
 Interest paid on lease liabilities                   (40)          (48)            (91) 
 Proceeds from bank loans                                -             -             500 
 Repayment of bank loans                                 -          (97)           (155) 
 Interest paid                                         (6)           (1)             (3) 
 Net cash outflow from financing 
  activities                                         (278)         (372)           (204) 
 
 Net change in cash and cash 
  equivalents                                        (449)         (662)           (450) 
 
 Cash and cash equivalents 
  at start of period                                   515           992             992 
 Currency translation differences                     (81)          (71)            (27) 
-------------------------------------  -----  ------------  ------------  -------------- 
 Cash and cash equivalents 
  at end of period                       8            (15)           259             515 
-------------------------------------  -----  ------------  ------------  -------------- 
 
 
 Cash and cash equivalents are comprised 
  of: 
 Cash at bank and in hand                               38           591             515 
 Cash held within assets classified 
  as held for sale                                      28             -               - 
 Secured bank overdrafts                              (81)         (332)               - 
 Cash and cash equivalents at end 
  of year                                             (15)           259             515 
--------------------------------------------  ------------  ------------  -------------- 
 

Consolidated statement of changes in equity

For the six months ended 31 March 2022

 
                          Share       Foreign   Retained           Other    Merger      Total           Non      Total 
                        capital      currency   earnings   distributable   reserve              controlling     equity 
                                  translation                    reserve                          interests 
                                      reserve 
                        GBP'000       GBP'000    GBP'000         GBP'000   GBP'000    GBP'000       GBP'000    GBP'000 
---------------------  --------  ------------  ---------  --------------  --------  ---------  ------------  --------- 
 
 At 1 October 
  2021                    1,652         (173)    (1,082)           1,494     1,176      3,067             -      3,067 
 
 Loss for the 
  period                      -             -      (387)               -         -      (387)             -      (387) 
 Other comprehensive 
  income                      -          (49)          -               -         -       (49)             -       (49) 
---------------------  --------  ------------  ---------  --------------  --------  ---------  ------------  --------- 
 Total comprehensive 
  loss                        -          (49)    (387)                 -         -      (436)             -      (436) 
 
 At 31 March 
  2022                    1,652         (222)    (1,469)           1,494     1,176      2,631             -      2,631 
---------------------  --------  ------------  ---------  --------------  --------  ---------  ------------  --------- 
 

For the six months ended 31 March 2021

 
                     Share        Foreign    Retained            Other     Merger      Total            Non      Total 
                   capital       currency    earnings    distributable    reserve               controlling     equity 
                              translation                      reserve                            interests 
                                  reserve 
                   GBP'000        GBP'000     GBP'000          GBP'000    GBP'000    GBP'000        GBP'000    GBP'000 
---------------  ---------  -------------  ----------  ---------------  ---------  ---------  -------------  --------- 
 At 1 October 
  2020               1,652           (16)          41            1,494      1,176      4,347             27      4,374 
 
 Loss for the 
  period                 -              -       (603)                -          -      (603)            (5)      (608) 
 Other 
  comprehensive 
  income                 -          (159)           -                -          -      (159)            (4)      (163) 
---------------  ---------  -------------  ----------  ---------------  ---------  ---------  -------------  --------- 
 Total 
  comprehensive 
  loss                   -          (159)     (603)                  -          -      (762)            (9)      (771) 
 
 At 31 March 
  2021               1,652          (175)       (562)            1,494      1,176      3,585             18      3,603 
---------------  ---------  -------------  ----------  ---------------  ---------  ---------  -------------  --------- 
 

Consolidated statement of changes in equity (continued)

For the year ended 30 September 2021

 
                     Share        Foreign    Retained            Other     Merger      Total            Non      Total 
                   capital       currency    earnings    distributable    reserve               controlling     equity 
                              translation                      reserve                            interests 
                                  reserve 
                   GBP'000        GBP'000     GBP'000          GBP'000    GBP'000    GBP'000        GBP'000    GBP'000 
---------------  ---------  -------------  ----------  ---------------  ---------  ---------  -------------  --------- 
 At 1 October 
  2020               1,652           (16)          41            1,494      1,176      4,347             27      4,374 
 
 Loss for the 
  period                 -              -     (1,123)                -          -    (1,123)           (13)    (1,136) 
 Acquisition of 
  minority 
  interest               -              -           -                -          -          -           (14)       (14) 
 Other 
  comprehensive 
  income                 -          (157)           -                -          -      (157)              -      (157) 
---------------  ---------  -------------  ----------  ---------------  ---------  ---------  -------------  --------- 
 Total 
  comprehensive 
  loss                   -          (157)    (1,123)                 -          -    (1,280)           (27)    (1,307) 
 
 At 30 
  September 
  2021               1,652          (173)     (1,082)            1,494      1,176      3,067              -      3,067 
---------------  ---------  -------------  ----------  ---------------  ---------  ---------  -------------  --------- 
 

Notes to the Interim Report

   1          Basis of preparation 

The financial information presented in this Interim Report has been prepared in accordance with the recognition and measurement principles of international accounting standards in conformity with the requirements of the Companies Act 2006 that are expected to be applicable to the financial statements for the year ending 30 September 2022 and on the basis of the accounting policies expected to be used in those financial statements.

   2          New accounting standards, amendments and interpretations applied 

A number of new or amended standards and interpretations to existing standards became applicable for the current reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards.

   3          Operating segments 

The Group comprises a single business segment and separately reportable geographical segments (together with a Group costs segment). Geographical segments are based on the location of the operation undertaking each project. Turkey is included within Continental Europe together with Germany and the Czech Republic (in the comparative periods). The Middle East segment has been re-presented as a discontinued operation in note 5, and accordingly is no longer included in this operating segments note.

 
 Segment revenue          Unaudited     Unaudited         Audited 
                         six months    six months         year to 
                              to 31         to 31    30 September 
                              March         March            2021 
                               2022          2021         GBP'000 
                            GBP'000       GBP'000 
 United Kingdom               4,435         3,441           8,871 
 Continental Europe              94           258             321 
---------------------  ------------ 
 Total                        4,529         3,699           9,192 
---------------------  ------------  ------------  -------------- 
 
 
 
 Segment revenue less sub consultant       Unaudited     Unaudited         Audited 
  costs                                   six months    six months         year to 
                                               to 31         to 31    30 September 
                                               March         March            2021 
                                                2022          2021         GBP'000 
                                             GBP'000       GBP'000 
 United Kingdom                                3,305         2,591           6,063 
 Continental Europe                               72           196             242 
--------------------------------------  ------------ 
 Total                                         3,377         2,787           6,305 
--------------------------------------  ------------  ------------  -------------- 
 
 
 Segment result before tax       Unaudited     Unaudited         Audited 
                                six months    six months         year to 
                                     to 31         to 31    30 September 
                                     March         March            2021 
                                      2022          2021         GBP'000 
                                   GBP'000       GBP'000 
 
 United Kingdom                      (230)         (837)           (848) 
 Continental Europe                     49           121             149 
 Group costs                            29          (21)        104 
----------------------------  ------------  ------------  -------------- 
 Total (loss)/profit                 (152)         (737)           (595) 
----------------------------  ------------  ------------  -------------- 
 
 
 
 Segment result before tax                 Unaudited     Unaudited         Audited 
  (before reallocation of group           six months    six months         year to 
  management charges)                          to 31         to 31    30 September 
                                               March         March            2021 
                                                2022          2021         GBP'000 
                                             GBP'000       GBP'000 
 
 United Kingdom                                   40         (567)           (308) 
 Continental Europe                              123           227             330 
 Group costs                                   (419)         (598)         (1,015) 
--------------------------------------  ------------  ------------  -------------- 
 Total (loss)/profit                           (256)         (938)           (993) 
 
 Group management charges charged 
  to the 
  Middle East discontinued operation             104           201             398 
--------------------------------------  ------------  ------------  -------------- 
 Total (loss)/profit                           (152)           737           (595) 
--------------------------------------  ------------  ------------  -------------- 
 
   4          Other operating income 
 
                                       Unaudited     Unaudited         Audited 
                                      six months    six months         year to 
                                           to 31         to 31    30 September 
                                           March         March            2021 
                                            2022          2021         GBP'000 
                                         GBP'000       GBP'000 
 Property rental income                       74            79             153 
 Management charges to associate 
  and joint ventures                          63            65             132 
 Government grants (UK furlough 
  scheme)                                      -            42              59 
 Licence fee income                            7             2               - 
 Other sundry income                           -             -              14 
 Total other operating income                144           188             358 
----------------------------------  ------------  ------------  -------------- 
 
   5          Discontinued operations 
   5 (a)      Description 

In April 2022, the Group sold assets, as part of the Group's disposal of its John R Harris & Partners Limited (Cyprus) subsidiary and John R Harris & Partners (Dubai) entity. This marked the sale of the main trading operations in the Group's Middle East segment. With closure costs incurred in the period relating to the planned termination of a number of trading licenses in the Middle East operations, the Middle East segment is presented as a discontinued operation in the current period, and the comparative periods represented accordingly.

   5 (b)     Financial performance and cash flow information 

Result of discontinued operations

 
                                           Unaudited     Unaudited         Audited 
                                          six months    six months         year to 
                                               to 31         to 31    30 September 
                                               March         March            2021 
                                                2022          2021         GBP'000 
                                             GBP'000       GBP'000 
 Revenue                                       1,249         1,581           2,822 
 
 Sub consultant costs                          (189)         (229)           (305) 
--------------------------------------  ------------  ------------  -------------- 
 Revenue less sub consultant 
  costs                                        1,060         1,352           2,517 
 
 Expenses                                    (1,217)       (1,431)         (2,806) 
 Group management charges                      (104)         (201)           (398) 
 Impairment of intangibles                         -             -           (249) 
 Loss before tax                               (261)         (280)           (936) 
 
 Tax credit / (charge)                             -             -               - 
-------------------------------------   ------------  ------------  -------------- 
 Loss from discontinued operations             (261)         (280)           (936) 
 
 Exchange differences on translation 
  of discontinued operation                      (7)          (55)            (50) 
--------------------------------------  ------------  ------------  -------------- 
 Other comprehensive loss 
  from discontinued operations                 (268)         (335)           (986) 
--------------------------------------  ------------  ------------  -------------- 
 

Earnings per share from discontinued operations

 
                                  Unaudited     Unaudited         Audited 
                                 six months    six months         year to 
                                      to 31         to 31    30 September 
                                      March         March            2021 
                                       2022          2021         GBP'000 
                                    GBP'000       GBP'000 
 Basic and diluted loss per 
  share                             (0.16p)       (0.16p)         (0.57p) 
 

Statement of cash flows

The statement of cash flows includes the following amounts relating to discontinued operations:

 
                                       Unaudited     Unaudited 
                                      six months    six months         Audited 
                                           to 31         to 31         year to 
                                           March         March    30 September 
                                            2022          2021            2021 
                                         GBP'000       GBP'000         GBP'000 
 
 Net cash outflow from operating 
  activities                               (174)         (241)           (485) 
 Net cash outflow from investing 
  activities                                   -           (3)             (2) 
 Foreign exchange movements                    2          (43)            (39) 
----------------------------------  ------------  ------------  -------------- 
 Net cash from discontinued 
  operations                               (172)         (287)           (526) 
----------------------------------  ------------  ------------  -------------- 
 
   6          Earnings per share 

The calculations of basic and diluted earnings per share are based on the following data:

 
 Earnings                      Unaudited     Unaudited         Audited 
                              six months    six months         year to 
                                   to 31         to 31    30 September 
                                   March         March            2021 
                                    2022          2021         GBP'000 
                                 GBP'000       GBP'000 
 Continuing operations             (126)         (328)           (200) 
 Discontinued operations           (261)         (275)           (923) 
--------------------------  ------------  ------------  -------------- 
 Loss for the period               (387)         (603)         (1,123) 
--------------------------  ------------  ------------  -------------- 
 
 
 Number of shares                      Unaudited     Unaudited         Audited 
                                      six months    six months         year to 
                                           to 31         to 31    30 September 
                                           March         March            2021 
                                            2022          2021            '000 
                                            '000          '000 
 Weighted average number of 
  shares                                 165,214       165,214         165,214 
 Effect of dilutive options                    -             -               - 
---------------------------------   ------------  ------------  -------------- 
 Diluted weighted average number 
  of shares                              165,214       165,214         165,214 
----------------------------------  ------------  ------------  -------------- 
 
   7          Reconciliation of profit before tax to net cash from operations 
 
                                       Unaudited     Unaudited         Audited 
                                      six months    six months         year to 
                                           to 31         to 31    30 September 
                                           March         March            2021 
                                            2022          2021         GBP'000 
                                         GBP'000       GBP'000 
 Loss for the period                       (387)         (608)         (1,136) 
 Tax credit                                 (26)         (409)           (395) 
 Finance costs                                46            49              94 
 Share of results of associate 
  and joint ventures                        (65)          (71)           (166) 
 Intangible amortisation                      19            32              59 
 Intangible impairment                         -             -             249 
 Depreciation                                 56            63             129 
 Amortisation of right-of-use 
  assets                                     192           192             383 
 Profit on disposal of property, 
  plant and equipment                          -           (1)             (2) 
 Decrease / (increase) in trade 
  and other receivables                      565         (976)           (843) 
 (Decrease) / increase in trade 
  and other payables                       (635)         1,207             892 
 Change in provisions                       (68)          (52)           (160) 
 Unrealised foreign exchange                   -          (85)               - 
  differences 
---------------------------------   ------------  ------------  -------------- 
 Net cash expended by operations           (303)         (659)           (896) 
----------------------------------  ------------  ------------  -------------- 
 
   8          Analysis of net funds 
 
                                        Unaudited   Unaudited         Audited 
                                            at 31       at 31              at 
                                            March       March    30 September 
                                             2022        2021            2021 
                                          GBP'000     GBP'000         GBP'000 
 Cash at bank and in hand                      38         591             515 
 Cash held within assets classified 
  as held for sale                             28           -               - 
 Secured bank overdrafts                     (81)       (332)               - 
-------------------------------------  ----------  ----------  -------------- 
 Cash and cash equivalents                   (15)         259             515 
 
 Secured bank loan                          (500)        (58)           (500) 
-------------------------------------  ---------- 
 Net (debt)/funds                           (515)         201              15 
-------------------------------------  ----------  ----------  -------------- 
 
   9          Events occurring after the reporting period 

On 28 April 2022 Aukett Swanke Group Plc disposed of its 100% interest in the share capital of John R Harris & Partners Limited (registered in Cyprus), the beneficial owner of John R Harris & Partners (Dubai) for a cash consideration of AED 5,000,000, comprising AED 4,250,000 cash upfront and a further AED 750,000 deferred consideration paid over a 5 year period.

The assets and liabilities directly associated with both John R Harris & Partners Limited and John R Harris & Partners (Dubai) have been classified as held for sale for the reporting period ended 31 March 2022

The operating results of these entities have been included within discontinued operations for the 6 month period to 31 March 2022, and re-presented accordingly for comparative periods.

   10         Status of Interim Report 

The Interim Report covers the six months ended 31 March 2022 and was approved by the Board of Directors on 28 June 2022. The Interim Report is unaudited.

The interim condensed set of consolidated financial statements in the Interim Report are not statutory accounts as defined by Section 434 of the Companies Act 2006.

Comparative figures for the year ended 30 September 2021 have been extracted from the statutory accounts of the Group for that period .

The statutory accounts for the year ended 30 September 2021 have been reported on by the Group's auditors and delivered to the Registrar of Companies. The audit report thereon was unqualified, did not include references to matters to which the auditors drew attention by way of emphasis without qualifying the report, and did not contain a statement under Section 498 of the Companies Act 2006. The audit report did draw attention to the Directors' assessment of going concern, indicating that a material uncertainty exists that may cast significant doubt on the Group's and parent company's ability to continue as a going concern. The audit report was not modified in respect of this matter.

   11         Further information 

An electronic version of the Interim Report will be available on the Group's website (www.aukettswankeplc.com).

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END

IR FLFIDRFITFIF

(END) Dow Jones Newswires

June 29, 2022 02:00 ET (06:00 GMT)

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