Emmit PLC Half-yearly Report
September 30 2014 - 10:45AM
UK Regulatory
TIDMEMT
EMMIT PLC
("Emmit" or the "Company")
Half Yearly Report
For the Six Months ended 30 June 2014
Chairman's Statement
I have pleasure in presenting the financial results for the six months to 30
June 2014.
It has been a positive time compared to the traumas of the reorganisation and
disposals last year. Following the adoption of an investing policy in November
2013, the Company made two investments. On 11 March 2014, Emmit announced that
it had acquired a 20 per cent. holding in Ximax Environmental Solutions Plc
("XESS") for GBP30,000, satisfied through the issue of 500,000 new Emmit shares
and the issue of 4,500,000 warrants at 6p per share. Then, on 25 March 2014,
Emmit acquired 25 per cent. of Ximax Oil & Gas Solutions ("XOG"), an associate
company to XESS, for GBP90,000, satisfied through the issue of 1,800,000 warrants
at 6p per share.
Ximax Environmental Solutions and Ximax Oil & Gas (www.ximaxes.com)
Formed in 2009, XESS is a niche water treatment company, which has developed a
proprietary high purity chlorine dioxide solution, XzioX, an environmentally
friendly and trade-marked, cost effective biocide and disinfection product. XOG
was formed in January 2011, to further develop and enhance Xziox for specialist
water treatment applications in the Oil and Gas industry, under the registered
brand name of FlowXcel.
XzioX is currently used by 200 agricultural clients in the UK and Ireland, of
which 50 have been secured in XESS's current financial year. This increase in
clients is expected to lead to strong growth in XESS's turnover and profit for
the year to February 2015. Overseas, XESS secured an order for GBP100,000 from a
Dubai governmental body in April of this year and continues to engage in
positive discussions in the United Arab Emirates regarding the supply of XzioX
for the treatment of water in parks and fountains throughout the region.
Turnover for the year to February 2014 was GBP2,080,927 (2013: GBP11,583,414). The
drop was due to the inclusion in the previous year of specialist equipment for
the oil and gas trials, which were successfully completed earlier this year.
Pre-tax profit for the period was GBP373,667 (2013: GBP589,484). Turnover for the
six months to September 2014 was GBP814,797, with profit of GBP397,415.
In August 2014, following successful field trials earlier this year, XOG,
through its US distributor, American Flo Excel, LLC, signed a 10 year agreement
with ROLCO Energy Services (www.rolcoenergyservices.com) to supply Ximax's
FlowXcel product for water treatment in the US unconventional oil and gas
industry. This has resulted in two orders to date, each of GBP100,000, with the
expectation of regular orders to follow in the future.
Capital Structure and Financing
Post the period end, Emmit agreed with Leo Knifton, that Mr Knifton would sell
all his remaining convertible loan notes with the buyers agreeing immediately
to convert the loan notes into shares. This resulted in a significant increase
in the Company's issued share capital and simplified the Company's capital
structure such that Emmit now has 18,268,743 ordinary shares in issue along
with 4,800,000 outstanding warrants at 6p per share. This process, together
with a subscription for GBP70,000, raised approximately GBP293,000 for the Company
which has enabled the Company to discharge its current liabilities and also
provide sufficient working capital for the next 12 months.
Outlook
As an investing company under AIM Rule 15, if the Company does not either
substantially fulfill its investing policy or carry out a reverse takeover
within 12 months from the date of the adoption of the investing policy (being
14 November 2013) then trading in its shares will be suspended.
Notwithstanding this, we have confidence in the value enhancing properties of
our investments and, with the Company's capital structure now simplified, we
are working towards our objective of completing a reverse takeover as soon as
practical.
Dean Cook
Chairman
For further information, please contact:
EMMIT PLC
Directors - D Cook/ A Davies Tel: +44 (0)1473 604504
Nominated Adviser - Daniel Stewart & Company Plc Tel: +44 (0) 20 7776 6550
Antony Legge / Alex Brearley
Broker - Alexander David Securities Ltd Tel: +44 (0)20 7404 9400
Consolidated Statement of Comprehensive Income
For the Six Months ended 30 June 2014
Notes Six months Year Six months
to 30 June to 31 to 30 June
December
2014 2013 2013
(Unaudited) (Audited) (Unaudited)
GBP'000 GBP'000 GBP'000
Revenue 2 - - 170
Cost of Sales - - (150)
------- ------- -------
Gross Loss/(Profit) - - 20
Administrative expenses (78) (88) (156)
------- ------- -------
Operating Loss (78) (88) (136)
Non Operating Items
Losses on disposal of - (196) -
subsidiaries
Surplus arising on - 1,938 -
settlements with trade
creditors
------ ------- -------
(78) 1,654 (136)
Finance Costs (6) (1) (122)
------ ------- -------
Profit/(Loss) from (84) 1653 (258)
continuing operations
Loss from discontinued (278)
operations (net of tax)
Taxation - - -
------- ------- -------
Total comprehensive income (84) 1,375 (258)
for the period
------- ------- -------
Profit/(Loss) per share 4 (2.98p) (18.54p) (1.30p)
from continuing operations
- (57.91p) -
Profit/(Loss) per share
from discontinued
operations
------- ------- -------
Consolidated Balance Sheet
For the Six Months ended 30 June 2014
Notes Six months Year to Six months
to 30 June 31 December to 30 June
2014 2013 2013
(Unaudited) (Audited) (Unaudited)
ASSETS GBP'000 GBP'000 GBP'000
Non-current assets
Investments in associate 120 - -
Intangible Assets - - 10
------- ------- -------
120 - 10
------- ------- -------
CURRENT ASSETS
Trade and other 47 38 20
receivables
Cash and cash equivalents 23 30 -
------- ------- -------
70 68 20
------- ------- -------
Total Assets 190 68 30
------- ------- -------
EQUITY
Shareholders' Equity
Called up share capital 5 2,206 2,206 2,171
Share premium 5,124 5,056 4,760
Retained earnings (7,484) (7,400) (9,033)
------- ------- -------
Total Equity (154) (138) (2,102)
------- ------- -------
Liabilities - greater than
one year
Interest bearing loans 36 45 359
------- ------- -------
36 45 359
------- ------- -------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 157 161 1,233
Financial liabilities 151 - 540
------- ------- -------
308 161 1,773
------- ------- -------
Total Equity and 190 68 30
Liabilities
------ ------- -------
Consolidated Statement of Changesin Equity
For the Six Months ended 30 June 2014
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