Interim Results for the six-months to 30 June 2024

RNS Number : 0111E

Tanfield Group PLC

13 September 2024

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain

Tanfield Group Plc

("Tanfield", or "the Company")

Interim Results for the six-month period to 30 June 2024

Tanfield, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2024. The unaudited financial information will shortly be available on the Company website at www.tanfieldgroup.com.

Background

· Tanfield is a 49% shareholder in the equity of Snorkel International Holdings LLC ("Snorkel") following the joint venture between the Company and Xtreme Manufacturing LLC ("Xtreme") (the "Contemplated Transaction"), a company owned by Don Ahern of Ahern Rentals Inc, relating to Snorkel, in October 2013.

· The Snorkel investment is valued at £19.1m. The outcome of the US Proceedings referenced below could have an impact on this valuation.

· On 22 October 2019, the Company announced that it had received a Summons and Complaint, filed in Nevada (the "US Proceedings") by subsidiaries of Xtreme, relating to the Contemplated Transaction.

· The Company's loss in H1 2024 reduced slightly to £97k (H1 2023: £154k), in part due to a reduction in operating expenses, coupled with an increase in finance income.

Overview of investments

As announced on 7 August 2024, in 2023 Snorkel's sales increased by 11.8% to US$188.7m (2022: US$168.8m), which amounted to an increase of US$19.9m. Snorkel's EBITDA in 2023 also improved to a US$6.3 profit (2022: US$13.8m loss), an improvement of some US$20.1m, slightly higher than the value of the sales increase. Further information relating to the recent performance of Snorkel can be found in the 7 August 2024 announcement.

The Company continues to focus on the US Proceedings which are continuing, with a jury trial currently expected to take place around the middle of 2025. The Board continue to believe that a positive outcome to those proceedings is possible. So far as it is necessary, the Company will continue to vigorously defend its position whilst continuing to seek advice.

Further updates will be provided to Shareholders as and when appropriate.

For further information:

Tanfield Group Plc 0203 829 5000

Daryn Robinson

Zeus Capital Limited- Nominated Advisor / Broker

James Joyce / Andrew de Andrade 0203 829 5000

STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDING 30 JUNE 2024
	Six months to 30 Jun 24 (unaudited)		Six months to 30 Jun 23 (unaudited)	Year to 31 Dec 23 (audited)
	£000's		£000's	£000's

Revenue	-		-	-
Staff costs	(79)		(77)	(190)
Other operating income	11		11	23
Other operating expenses	(116)		(140)	(287)
Loss from operations	(184)		(206)	(454)
Finance expense	-		-	-
Finance income	87		52	123
Loss before tax	(97)		(154)	(331)
Taxation	-		-	-
Loss & total comprehensive income for the period attributable to equity shareholders	(97)	(154)		(331)

Loss per share
Basic and diluted (p)	(0.06)	(0.09)		(0.20)

BALANCE SHEET
AS AT 30 JUNE 2024
	30 Jun 24 (unaudited)	30 Jun 23 (unaudited)	31 Dec 23 (audited)
	£000's	£000's	£000's
Non-current assets
Non-current Investments	19,100	19,100	19,100
	19,100	19,100	19,100
Current assets
Trade and other receivables	79	53	58
Cash and cash equivalents	3,333	3,652	3,473
	3,412	3,705	3,531

Total assets	22,512	22,805	22,631

Current liabilities
Trade and other payables	50	69	72
	50	69	72

Total liabilities	50	69	72

Equity
Share capital	8,145	8,145	8,145
Share premium	17,336	17,336	17,336
Special reserve	66,837	66,837	66,837
Merger reserve	1,534	1,534	1,534
Retained earnings	(71,390)	(71,116)	(71,293)
Total equity	22,462	22,736	22,559

Total equity and total liabilities	22,512	22,805	22,631

STATEMENT OF CHANGES IN EQUITY

	Share capital	Share premium	Share option reserve	Merger reserve		Special reserve		Retained earnings		Total
	£000's	£000's	£000's	£000's		£000's		£000's		£000's
Six months to 30 June 2024 (unaudited)

At 1 January 2024	8,145	17,336	-	1,534		66,837		(71,293)		22,559
Comprehensive income
Loss for the period	-	-	-	-		-		(97)		(97)
Total comprehensive income for the period	-	-	-	-		-		(97)		(97)
At 30 June 2024	8,145	17,336	-	1,534		66,837		(71,390)		22,462

Six months to 30 June 2023 (unaudited)

At 1 January 2023	8,145	17,336	-	1,534		66,837		(70,962)		22,890
Comprehensive income
Loss for the period	-	-	-	-		-		(154)		(154)
Total comprehensive income for the period	-	-	-	-		-		(154)		(154)
At 30 June 2023	8,145	17,336	-	1,534		66,837		(71,116)		22,736

Year to December 2023 (audited)

At 1 January 2023	8,145	17,336	-		1,534		66,837		(70,962)		22,890
Comprehensive income
Loss for the period	-	-	-		-		-		(331)		(331)
Total comprehensive income for the year	-	-	-		-		-		(331)		(331)
At 31 December 2023	8,145	17,336	-		1,534		66,837		(71,293)		22,559

CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDING 30 JUNE 2024
	Six months to 30 Jun 24 (unaudited)	Six months to 30 Jun 23 (unaudited)	Year to 31 Dec 23 (audited)
	£000's	£000's	£000's

(Loss)/profit before tax	(97)	(154)	(331)
Adjustment for:
Finance expense	-	-	-
Finance income	(87)	(52)	(123)
Changes in operating assets and liabilities / working capital:
(Increase)/decrease in receivables	(21)	(23)	(29)
Increase/(decrease) in payables	(22)	5	9
Net Cash used in operations	(227)	(224)	(474)

Cash flow from Investing Activities
Interest received	87	52	123
Net Cash used in investing activities	87	52	123

Net decrease in cash and cash equivalents	(140)	(172)	(351)
Cash and cash equivalents at the start of period	3,473	3,824	3,824
Cash and cash equivalents at the end of the period	3,333	3,652	3,473

1 Basis of preparation

The Interim Report of the Company for the six months ended 30 June 2024 has been prepared in accordance with AIM Rule 18 and not in accordance with IAS34 "Interim Financial Reporting" therefore is not fully in compliance with IFRS.

The half year report does not constitute financial statements as defined in Section 434 of the Companies Act 2006 and does not include all of the information and disclosures required for full annual statements. It should be read in conjunction with the annual report and financial statements for the year ended 31 December 2023 which is available on request from the Company's registered office, c/o Weightmans LLP, 1 St James' Gate, Newcastle upon Tyne, NE1 4AD or can be downloaded from the corporate website www.tanfieldgroup.com.

2 Accounting Policies

Impact of accounting standards to be applied in future periods

There are a number of standards and interpretations which have been issued by the International Accounting Standards Board that are effective for periods beginning subsequent to 31 December 2024 that the Group has decided not to adopt early. The Group does not believe these standards and interpretations will have a material impact on the financial statements once adopted.

3 Loss per share

The calculation of the basic and diluted loss per share is based on the following data:

Six months

Year to

to 30 Jun 24

to 30 Jun 23

31 Dec 23

Number of shares

000's

Weighted average number of ordinary shares for the purposes of basic earnings per share

162,907

Loss From operations

£000's

Loss for the purposes of basic earnings per share being net profit attributable to owners of the parent

(97)

(154)

(331)

Loss per share from operations

Basic and diluted (p)

(0.06)

(0.09)

(0.20)

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