TIDMFLOW
RNS Number : 5623K
Flowgroup plc
11 April 2018
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN
PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH
JURISDICTION.
11 April 2018
Flowgroup plc
("Flowgroup", the "Group" or the "Company")
Publication of circular and unaudited results
Further to its announcement on 10 April 2018 regarding the
conditional sale of Flow Energy Limited ("Flow Energy"), to
Co-operative Energy Limited ("Co-op Energy") (the "Sale"), the
Company announces that it has today posted an explanatory circular
to Shareholders detailing the Sale, together with a notice of the
General Meeting to be held at the offices of Hogan Lovells
International LLP, Atlantic House, Holborn Viaduct, London EC1A 2FG
at 9.00 a.m. on 27 April 2018, in connection with the Sale. The
circular is available to view on the Company's website at
http://www.flowgroup.uk.com/
The Company also announces a summary of its unaudited results
for the financial year ended 31 December 2017, which have been
extracted from unaudited management accounts. The Company expects
to issue its full audited 2017 results following completion of the
disposal of Flow Energy Limited.
The Group expects to report that in the year ended 31 December
2017, its revenues increased by 40% to GBP138.1 million (2016:
GBP98.8 million) and a gross profit (before exceptional items) of
GBP8.3 million (2016: GBP7.1 million). After exceptional items
totalling approximately GBP1.9 million (2016: GBP22.1 million), the
Group expects to report a loss before taxation of approximately
GBP20.8 million (2016 GBP45.8 million). As at 31 December 2017, net
liabilities were GBP23.6 million (31 December 2016:
GBP14.7million).
The summary unaudited management accounts are set out below:
Unaudited Group Income Statement
Unaudited Unaudited Unaudited Audited Audited Audited
Year to 31 Year to 31 Year to 31 Year to 31 Year to 31 Year to 31
December 2017 December 2017 December 2017 December 2016 December 2016 December 2016
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- -------------- --------------- --------------- -------------- ---------------
Before Before
exceptional Exceptional exceptional Exceptional
items items (Note 2) Total items items (Note 2) Total
--------------- -------------- --------------- --------------- -------------- ---------------
Revenue 138,136 - 138,136 98,796 - 98,796
Cost of sales (129,822) - (129,822) (91,732) (3,277) (95,009)
--------------- -------------- --------------- --------------- -------------- ---------------
Gross profit 8,314 - 8,314 7,064 (3,277) 3,787
Administrative
expenses (24,929) (1,919) (26,848) (30,612) (18,823) (49,435)
--------------- -------------- --------------- --------------- -------------- ---------------
Operating loss (16,615) (1,919) (18,534) (23,548) (22,100) (45,648)
Net finance
costs (2,242) (119)
--------------- ---------------
Loss before
income tax (20,776) (45,767)
Income tax 360 1,129
--------------- ---------------
Loss for the
financial
period / year (20,416) (44,638)
=============== ===============
Unaudited Group Statement of Financial Position
Unaudited as at 31 December 2017 Audited as at 31 December 2016
GBP'000 GBP'000
----------------------------------- ---------------------------------
GBP'000 GBP'000
ASSETS
Non-current assets
Intangible assets 1,099 1,973
Property, plant and equipment 411 658
----------------------------------- ---------------------------------
1,510 2,631
----------------------------------- ---------------------------------
Current assets
Inventories - 495
Trade and other receivables 29,873 20,631
Current tax receivable 722 1,231
Cash and cash equivalents 1,134 5,850
----------------------------------- ---------------------------------
31,729 28,207
----------------------------------- ---------------------------------
Total assets 33,239 30,838
=================================== =================================
LIABILITIES
Non-current liabilities
Borrowings 17,687 2,182
Provisions 536 -
----------------------------------- ---------------------------------
18,223 2,182
----------------------------------- ---------------------------------
Current liabilities
Trade and other payables 37,575 43,402
Provisions 1,027 -
----------------------------------- ---------------------------------
38,602 43,402
----------------------------------- ---------------------------------
Total liabilities 56,825 45,584
=================================== =================================
EQUITY
Capital and reserves attributable to equity
holders of the Company
Share capital 16,983 15,876
Share premium account 67,981 59,238
Accumulated losses (113,044) (92,628)
Reverse acquisition reserve (821) (821)
Other reserves 5,315 3,589
----------------------------------- ---------------------------------
Total shareholders' equity (23,586) (14,746)
----------------------------------- ---------------------------------
Total equity and liabilities 33,239 30,838
=================================== =================================
Unaudited Group Statement of Cash Flows
Unaudited Year to 31 December 2017 Audited Year to 31 December 2016
GBP'000 GBP'000
-------------------------------------- --------------------------------------
Cash flows from operating activities
Cash consumed by operations (27,012) (6,839)
====================================== ======================================
Cash flows from investing activities
Expenditure on intangible assets (2,872) (5,524)
Purchase of property, plant and
equipment (187) (644)
Interest received 5 13
-------------------------------------- --------------------------------------
Net cash used in investing activities (3,054) (6,155)
====================================== ======================================
Cash flows from financing activities
Net proceeds from the issue of
ordinary shares 9,850 -
Issue of convertible unsecured loan
notes 15,500 -
-------------------------------------- --------------------------------------
Net cash generated from financing
activities 25,350 -
====================================== ======================================
Net decrease in cash and cash
equivalents (4,716) (12,994)
Cash and cash equivalents at
beginning of the year 5,850 18,844
-------------------------------------- --------------------------------------
Cash and cash equivalents at end of
the year 1,134 5,850
====================================== ======================================
Unaudited Group Statement of Changes in Equity
Reverse Total
Share Share Accumulated acquisi-tion Other Share-holders'
capital premium losses reserve reserves Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------- --------- ------------ -------------- ---------- ----------------
Balance at 1 January
2016 15,876 59,238 (47,990) (821) 2,686 28,989
Share based payments - - - - 903 903
--------- --------- ------------ -------------- ---------- ----------------
Transactions with
owners - - - - 903 903
Loss for the financial
period - - (44,638) - - (44,638)
--------- --------- ------------ -------------- ---------- ----------------
Balance at 31 December
2016 15,876 59,238 (92,628) (821) 3,589 (14,746)
Proceeds from shares
issued 1,107 9,954 - - - 11,061
Share issue costs - (1,211) - - - (1,211)
Issue of convertible
unsecured loan notes - - - - 1,038 1,038
Share based payments - - - - 688 688
--------- --------- ------------ -------------- ---------- ----------------
Transactions with
owners 1,107 8,743 - - 1,726 11,576
Loss for the financial
period - - (20,416) - - (20,416)
--------- --------- ------------ -------------- ---------- ----------------
Balance at 31 December
2017 16,983 67,981 (113,044) (821) 5,315 (23,586)
========= ========= ============ ============== ========== ================
Notes to the Unaudited Group Management Accounts
1 Basis of preparation and accounting policies
The financial information for the year ended 31 December 2017
has been extracted from unaudited management accounts and does not
constitute the Group's financial statements. Financial statements
for the year ended 31 December 2017 have not yet been prepared,
audited or delivered to the Registrar of Companies.
The accounting policies used in the preparation of the unaudited
financial information are consistent with those used in the interim
report for the 6 months ended 30 June 2017 and expected to be
adopted in the annual financial statements for the year ended 31
December 2017.
The comparative figures are derived from the Group's financial
statements for the year ended 31 December 2016 which carried an
unqualified audit report, did not contain a statement under section
498(2) or section 498(3) of the Companies Act 2006 and have been
filed with the Registrar of Companies.
2 Exceptional items
Unaudited Audited
Year to 31 Year to 31
December 2017 December 2016
GBP'000 GBP'000
--------------- ---------------
Adjustments to recognised assets
and liabilities (483) 22,100
Reorganisation costs 2,402 -
--------------- ---------------
1,919 22,100
=============== ===============
Further reorganisation costs comprising redundancy, empty
property and contract settlements have been recognised during the
year ended 31 December 2017 in respect of both the Flow Products
and Flow Energy businesses. Adjustments to recognised assets and
liabilities comprise the net of release of previous provisions, the
gain on the settlement of long term creditors and the write off of
fixed assets.
Exceptional items recognised during the year ended 31 December
2016 arise from the scaling back of the operations of the Flow
Products division and comprise reductions in the balance sheet
value of inventories and intangible assets together with
adjustments to the carrying values of directly related prepayments
and liabilities.
Enquiries
+44 (0)20 3817
3637
Flowgroup plc
Alan Lovell, Chairman
Nigel Canham, Chief Financial Officer
+44 (0)20 3696
Smith Square Partners LLP (Financial adviser) 7260
Jonathan Coddington / Matt Alexander
Cenkos Securities plc (Nominated adviser and broker) +44 (0)20 7397
Stephen Keys / Mark Connelly / Callum Davidson 8900
(Corporate Finance)
Walbrook PR Ltd (Financial PR advisers) +44 (0)20 7933
Paul McManus / Nick Rome 8780
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GGUWPCUPRUBG
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April 11, 2018 05:29 ET (09:29 GMT)
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