London Finance & Investment Group PLC ("Lonfin" or the "Company'") Unaudited Condensed Interim Financial statements for the six months ended 31 December 2024 The Company today announces its unaudited interim results for the six months ended 31 December 2024 (the "Interim Statement"). Introduction Shareholders were advised in December of the Board's intention to send out a circular in January setting out the process for returning cash to shareholders. This process is taking longer than expected due to having to obtain clearance for the circular from both the FCA in the UK and the Johannesburg Stock Exchange in South Africa, and South African exchange control approval. We do not now expect to be able to send out the circular before the middle of February. The process will have two stages: first a general meeting to approve the delisting of the Company's shares and the return of capital and then a High Court hearing to approve the capital reduction. Factoring in the notice period required for general meetings, and court timetables, the payout to shareholders will not happen before May. The exact amount of the return of capital can only be finalised at the time of the High Court hearing, and is dependent on exchange rates when US Dollar denominated deposits mature, but is expected to be approximately 71p per share. Results Lonfin's net assets per share decreased by 0.3% to 71.4p at 31 December 2024 from 71.6p at 30 June 2024 as profits for the period were marginally less than the dividend paid to shareholders in the period. We have sold all the General Portfolio Investments, realising a loss of £397,000 (compared to their market value at 30 June 2024), and remaining Strategic Investments, realising a loss of £111,000. As a consequence, dividend income has reduced to £165,000 from £241,000 last year. Cash balances arising from these sales have been held in short term, interest bearing, deposits in £ Sterling and US Dollars. Interest income of £355,000 and exchange gains of £482,000 were booked on those deposits in the period. The profit before tax for the Company and its subsidiaries (the "Group") for the half year was £230,000 (2023: profit of £3,755,000), resulting in earnings per share after tax of 0.5p (2023: earnings per share 11.7p). Strategic Investments Western Selection PLC ("Western") At 30 June 2024, the Group held 45,786 ordinary shares in Western, being 43.8% of the issued share capital of Western, with a carrying value of £36,000. In August 2024 Western shareholders approved a final return of capital and a capital reduction. Western's issued share capital has reduced from 104,555 ordinary shares to one ordinary share which is owned by the Company. We received £93,000 from this capital reduction and the carrying value of this investment is now nil. Steps are now being taken to wind up Western. Edward Beale and Warwick Marshall are non-executive directors of Western. City Group Ltd ("City Group") City Group has for many years provided company secretarial and head office finance services to the Company and other quoted companies, many of them related parties. The cessation of trade by the Company makes City Group unviable. To ensure continuation of the provision of services by City Group, Marshall Monteagle plc, a major customer of City Group, and a related party due to common directors and shareholders, has acquired City Group for £90,000, a loss of £167,000. This related party sale which was approved by the independent directors of the Company, and the independent directors of Marshall Monteagle plc, takes into account the closure costs that would otherwise have been incurred and, in part, reverses the gain on acquisition of the minority interest of £83,000 recognised last year. General Portfolio All of the stocks in the General portfolio were sold in the period generating cash of £16,751,000, realising a loss of £397,000 compared to their market value at 30 June 2024, and a profit of £1,453,000 compared to their historic cost. The cash balances were invested in US Dollar and £ Sterling short term deposits generating interest income of £355,000 and exchange gains of £482,000 in the period. Deposits of £10,800,000 and US$14,400,000 maturing in January 2025 were outstanding at 31 December 2024. The cash receivable on maturity of the US Dollar deposits will differ from their 31 December 2024 carrying value of £11,506,000 depending on exchange rates at their maturity dates. Conclusion The Board is working to return capital to shareholders as expeditiously as possible, while containing transaction costs. Shareholders will be kept fully informed. 28 January 2025 Statement of Directors' responsibility The Directors confirm that, to the best of their knowledge: - the unaudited interim results for the six months ended 31 December 2024, have been prepared in accordance with IAS 34, `Interim financial reporting', as adopted by the UK; and - the Interim Statement includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R of the Disclosure and Transparency Rules. Neither this Interim Statement nor any future interim statements of the Company will be posted to shareholders. The Interim Statement is available as follows: · on the Company's website at www.city-group.com/london-finance-investment -group-plc/; and · by writing to City Group PLC, the Company Secretary, at Suite 1.01, Central Court, 25 Southampton Buildings, London, WC2A 1AL. This announcement contains information that was previously classified as inside information for the purposes of the UK Market Abuse Regulation. Upon the publication of this announcement, this information is considered to be in the public domain. The directors of the Company accept responsibility for the contents of this announcement. For further information, please contact: London Finance & Investment Group PLC+44(0) 20 3709 8740 JSE Sponsor to the Company: Questco Corporate Advisory Proprietary Limited Condensed Consolidated Statement of Total Comprehensive Income Notes Year Half year Ended ended 30 31 December June 2024 2023 2024 Restated £000 £000 £000 Operating Income Dividends receivable 165 241 614 Management service fees 111 192 361 Other income 837 25 138 (Loss)/Profit on disposal of (111) - 3,183 Strategic Investments (Loss)/Profit on disposal of General 7 (397) 52 403 Portfolio Investments 605 510 4,699 Administrative expenses Investment operations (197) (187) (425) Management services (178) (205) (444) Total administrative expenses (375) (392) (869) Operating profit 230 118 3,830 Unrealised changes in the carrying - 3,183 84 value of Strategic Investments Unrealised changes in the carrying 7 - 453 512 value of General Portfolio investments Net interest income - 1 6 Profit before taxation 230 3,755 4,432 Tax expense (71) (110) (222) Profit after taxation 159 3,645 4,210 Non-controlling interest - (6) 24 Profit attributable to shareholders 159 3,639 4,234 Total comprehensive income 159 3,639 4,234 attributable to shareholders Basic, Diluted and Headline earnings 0.5p 11.7p 13.6p per share Interim dividend - 0.60p 0.55p Final dividend - - 0.60p Total in respect of the period - 0.60p 1.15p Condensed Consolidated Statement of Changes in Shareholders' Equity Ordinary Share Unrealised Share of Retained Total Non Total Share Premium Profits and Retained Realised -Controlling Equity Capital Account Losses on profits Profits Investments and losses & of Losses Subsidiaries Interests £000 £000 £000 £000 £000 £000 £000 £000 Period ended 31 Dec 2024 Balances at 1 1,560 2,320 1,850 160 16,453 22,343 - 22,343 July 2024 Profit for - - (1,850) (160) 2,169 159 - 159 the Period Other - - - - - - - - Comprehensive Income Total - - (1,850) (160) 2,169 159 - 159 comprehensive income Issue of 4 26 - - - 30 - 30 share capital Dividends - - - - (187) (187) - (187) paid to shareholders Balances at 1,564 2,346 - - 18,435 22,345 - 22,345 31 Dec 2024 Ordinary Share Unrealised Share of Retained Total Non Total Share Premium Profits and Retained Realised -Controlling Equity Capital Account Losses on profits Profits Investments and losses & of Losses Subsidiaries Interests £000 £000 £000 £000 £000 £000 £000 £000 Period ended 31 Dec 2023 Balances at 1 1,560 2,320 225 4,906 9,472 18,483 157 18,640 July 2023 Profit for - - 1 1 454 456 6 462 the Period Other - - 3,183 - - 3,183 - 3,183 Comprehensive Income Total - - 3,184 1 454 3,639 6 3,645 comprehensive income Dividends - - - - (187) (187) - (187) paid and total transactions with shareholders Balances at 1,560 2,320 3,409 4,907 9,739 21,935 163 22,098 31 Dec 2023 Condensed Consolidated Statement of Financial Position 31 December 30 June Notes 2024 2023 2024 Restated £000 £000 £000 Non-current assets Property, plant and equipment - 3 3 Strategic Investments at fair 6 - 6,328 37 value through profit or loss - 6,331 40 Current assets Listed investments at fair 6,7 - 16,736 14,032 value through profit or loss Investments held for sale - - 50 Trade and other receivables 18 198 59 Accrued interest income on 183 - - term cash deposits Cash and cash equivalents 22,401 211 9,460 22,602 16,864 23,601 Current liabilities Trade and other payables (105) (97) (149) falling due within one year Corporation tax liability (152) (263) (581) (257) (360) (730) Net Current Assets 22,345 16,785 22,871 Non-current liabilities Deferred taxation - (1,018) (568) Total Assets less Total 22,345 22,098 22,343 Liabilities Capital and Reserves Called up share capital 1,564 1,560 1,560 Share premium account 2,346 2,320 2,320 Unrealised profits and losses - 3,409 1,850 on investments Share of retained profits and - 4,907 160 losses of subsidiaries Company's retained realised 18,435 9,739 16,453 profits and losses Total Capital and Reserves 22,345 21,935 22,343 attributable to owners Non-controlling equity - 163 - interest 22,345 22,098 22,343 Net assets per share 71.4p 70.3p 71.6p Number of shares in issue 31,287,479 31,207,479 31,207,479 Condensed Consolidated Statement of Cash Flows Half year ended Year ended 31 December 30 June 2024 2023 2024 Restated £000 £000 £000 Cash flows from operating activities Profit before tax 230 3,755 4,432 Adjustments for non-cash items- Net finance (income)/expense (355) (1) (6) Depreciation charges 3 4 4 Depreciation on right of use of - 11 11 asset Profit on early lease termination - (15) (12) Unrealised changes in the fair - (7) 1,925 value of General Portfolio investments Loss/(Profit) on sales of General 397 (509) (4,207) Portfolio investments Changes in the fair value of (56) (3,183) (1,816) Western Selection Loss/(profit) on 167 - (83) disposal/acquisition of City Group (Increase)/Decrease in trade and (242) (98) 42 other receivables Increase/(Decrease) in trade and 40 (54) (2) other payables Taxes paid (1,068) (28) (272) Net cash outflow from operating (884) (125) 16 activities Cash flows from investment activity Acquisition of general portfolio (3,054) (2,979) (6,512) investments Acquisition of other assets - (4) (104) Proceeds from disposal of current 16,689 2,256 8,891 investments Net (outflow)/inflow from disposal (8) - 6,291 of strategic investments Net cash inflow/(outflow) from 13,627 (727) 8,566 investment activity Cash flows from financing Net Interest received 355 1 6 Exercise of share options 30 - - Repayment of lease liabilities - (15) (15) Equity dividends paid (187) (187) (374) Net cash inflow/(outflow) from 198 (229) (383) financing Increase/(Decrease) in cash and 12,941 (1,053) 8,196 cash equivalents Cash and cash equivalents at the 9,460 1,264 1,264 beginning of the period/year Cash and cash equivalents at end 22,401 211 9,460 of the period Notes to the condensed financial statements Basis of preparation This condensed interim financial report has been prepared in accordance with the accounting policies contained in the Company's 2024 Annual Report and Accounts. This condensed interim financial report complies with the UK-adopted IAS 34 `Interim financial reporting'. The financial information contained in this report has not been audited or reviewed by the Company's auditors. The information contained in this interim financial report does not constitute statutory accounts within the meaning of the Companies Act 2006. The statutory accounts of the Company and its subsidiaries (the "Group") for the year ended 30 June 2024 have been reported on by the Company's auditors and have been delivered to the Registrar of Companies. The report of the auditors was unqualified. New standards and interpretations A number of new standards and amendments to standards and interpretations are effective for financial periods beginning after 1 January 2024 and have not been applied in preparing these condensed interim consolidated financial statements. None of these are expected to have a significant effect on the financial statements of the Group. Estimates and judgements When preparing the condensed interim consolidated financial statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results. The judgements, estimates and assumptions applied in the condensed interim consolidated financial statements, including the key sources of estimation uncertainty, were the same as those applied in the Group's last annual financial statements for the year ended 30 June 2024. Earnings per share Earnings per share are based on the profit on ordinary activities after taxation and non-controlling interests of £165,000 (2023: £3,639,000) and on 31,207,479 shares (2023: 31,207,479 shares) being the weighted average of number of shares in issue during the period. Options over 80,000 shares were exercised on 18 December 2024. Reconciliation of headline earnings Headline earnings are required to be disclosed by the JSE. Headline earnings per share are based on the profit attributable to the shareholders after tax and non -controlling interests of £165,000 (2023: £3,639,000) and on 31,207,479 shares (2023: 31,207,479 shares) being the weighted average of number of shares in issue during the period. Going Concern After making enquiries, the Board is satisfied that the Group will be able to operate for the foreseeable future. For this reason, the Board considers it appropriate for the Group to adopt the going concern basis in preparing its financial statements. Principal risks and uncertainties The principal risks and uncertainties which could impact the Group's long-term performance and its performance over the remaining six months of the financial year include the following: · Costs associated with the return of capital to shareholders; · Exchange rates; and · Interest rates. Reconciliation of net cash flow to movement in net debt At start Cash Non-cash At end of of Period Flow Movement Period Half year ended £000 £000 £000 £000 31 December 2024 Cash at bank 9,460 12,941 - 22,401 Net cash and cash equivalents 9,460 12,941 - 22,401 31 December 2023 Cash at bank 1,264 (1,053) - 211 Lease liability (33) 15 18 - Net cash and cash equivalents 1,231 (1,020) 18 211 30 June 2024 Cash at bank 1,264 8,196 - 9,460 Lease liability (33) 15 18 - Net cash and cash equivalents 1,231 8,211 18 9,460 Financial Instruments Financial assets and liabilities are classified in their entirety into one of the three levels of the fair value hierarchy determined on the basis of the lowest input that is significant to the fair value measurement. Listed prices (unadjusted) in active markets for identical assets or liabilities - Level 1. Values other than listed prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) - Level 2. Values for the asset or liability that are not based on observable market data (that is unobservable inputs) - Level 3. The categories of financial instruments used by the Group are: Fair Value Half year ended Year ended Hierarchy Level 31 December 30 June 2024 2023 2024 Financial assets £000 £000 £000 At fair value through profit or loss Non-current investments 2 - 6,328 - (strategic investments) Non-current investments 3 - - 37 (strategic investments) At fair value through profit or loss Current asset investments 1 - 16,736 14,032 (listed investments) Loans and receivables at amortised costs Trade and other receivables n/a - 180 44 (excluding non-financial assets) Cash at bank n/a 22,401 211 9,460 Financial liabilities At amortised costs Trade and other payables n/a (102) (97) (149) Listed General portfolio investments at fair value through profit and loss Half year ended Year ended 31 December 30 June 2024 2023 2024 £000 £000 £000 Cost 12,182 11,154 11,154 Opening unrealised gains 1,850 4,342 4,342 Balance brought forward 14,032 15,496 15,496 Purchases 3,054 2,979 6,512 Sales proceeds (16,689) (2,256) (8,891) Realised gain on disposal 1,453 509 2,840 Net unrealised gains (1,850) (445) (2,437) transferred to realised gain on disposal Unrealised fair value gains in - 453 512 the period Balance carried forward - 16,736 14,032 This information was brought to you by Cision http://news.cision.com
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