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Monday, 2 October 2017

JUST LOANS PLC : Interim Accounts

JUST LOANS PLC    

Published: 17:39 CEST 02-10-2017 /GlobeNewswire /Source: JUST LOANS PLC / : JLG /ISIN: GB00BYX60J11

JUST LOANS PLC : Interim Accounts

THE JUST LOANS GROUP PLC

 

CHAIRMAN'S STATEMENT
For the Unaudited Interim condensed financial statements for the 6 months ended 30 June 2017

OVERVIEW

The Just Loans Group Plc ("the Company") and its subsidiaries (together, "the Group") provide Finance Facilities to Small and Medium Enterprises that struggle to obtain traditional sources of funding for a variety of reasons. The Group is based in the United Kingdom and all entities have been incorporated in the United Kingdom. The Company is a public limited company and its shares are listed on the Emerging Companies market of the Cyprus Stock Exchange and the third market of Vienna Stock Exchnage.The Group also have debentures that are listed on the Cyprus Stock Exchange.

In June 2016 the UK voted in a referendum to leave the EU - the term 'Brexit' was adopted. We live in uncertain times, Brexit, political upheaval in the UK, USA and elsewhere in the world; but the World of The Just Loans Group remains constant. The Company and the Group currently only operates in the United Kingdom and deal exclusively with the exciting and growing SME market.

 

FINANCIAL RESULTS

The unaudited financial results for the period to 30 June 2017 show an operating loss of £1,738k; earnings per share are negative, being £0.062p.

Included within these financial results are £149k of the Group's share of early stage losses from an investment in an associate company. The associate is progressing well and should produce significant profits in subsequent years.

The results also include exceptional costs of £74,000 in respect of costs of raising additional funds.

CASH FLOW AND FUNDING

In order for the Group to meet its growth targets it is necessary to raise the funds to be lent out. The Group signed a £10m facility with the US fund manager SQN Capital Management in December 15. This facility has now been drawn down fully. In July 2017, the Group signed a facility with SQN Secured Income Fund for a further £10M facility allowing the Group to drawdown £2M per month. The Group has utilised £4M of this facility, drawing down £2M in July and August. This institutional fundraising is in addition to the continued fund raising from the sale of debenture securities which are traded on the Emerging Companies Market of the Cyprus Stock.

In addition, at the end of 2016, The Company signed a facility agreement with an institution, who are looking to raise £50Million via a Bond issue designed for institutional Investors. The proceeds of this Bond issue will be loaned to the Company and the Bond issue is secured on a basket of loan facilities of the Company. The processes and procedures of Just Cash Flow were rated by an independent rating authority for the purpose of the Bond which was awarded an Investment Grade A with stable outlook. To date the company has received £13.3M of which £9.0m was received in September.

The Group is confident that further funding will be made available from SQN and the other institutional funder but the directors continue to source additional funding from other institutional investors which will enable the Group to broaden its product range for the SME market.

On 14 February 2017,the Group completed a debt for equity swap. The Group issued  3,200,000 new shares to replace debt valued at £4,480,000. The shares were valued at £1.40 per share

 

 

OUTLOOK

The development of our proprietary "Propensity" lending process is now complete as is the core of our proprietary "AlfiLMS" IT system. The AlfiLMS system will continue to evolve with the addition of new Fintech systems that become available, and / or are upgraded, in order to ensure that our system remains one of the most advanced customer acquisition and management systems in operation.

The second half of the financial year has started well and the new institutional funding will enable the Group's loan book to reach the critical mass required for the Group to start making profit. The additional funding will also enable the Group to broaden its product range for UK SMEs. There are also plans for the Group to open in other selected European markets as the opportunities arise but this will be financed in local currency in order to reduce any foreign exchange risks.

 

Sir Eric Peacock

Chairman

 

27 September 2017

 

 

The Directors of the Issuer accept responsibility for this announcement.

 

FOR FURTHER INFORMATION PLEASE CONTACT:

Just Loans Plc

1 Charterhouse Mews

London

EC1M 6BB

Tel:  +44 (0) 20 3199 6379

 

Nick Michaels

Alfred Henry Corporate Finance Limited

Tel:  +44 (0) 20 7251 3762


 

Condensed Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2017

 

 Unaudited

Unaudited

Audited

 

Six months ended

Six months ended

Year

ended

 

30 June 2017

30 June 2016

31 December

2016

 

 

 

 

 

£

£

£

Continuing operations

 

 

 

Revenue

4,141,064

2,418,260

6,037,550

Cost of sales

(1,449,115)

(926,702)

(2,932,074)

 

 

 

 

Gross profit

2,691,949

1,491,558

3,105,476

 

 

 

 

Administrative expenses

(2,020,742)

(1,528,434)

(3,460,387)

 

 

 

 

Operating Profit/ Loss

671,207

(36,876)

(354,911)

 

 

 

 

 

 

 

 

Finance costs

 

 

(2,335,221)

(1,726,289)

(4,302,403)

Share of losses from investment in associate

(149,452)

(125,582)

(244,567)

 

 

 

 

Loss on ordinary activities before taxation

(1,813,466)

(1,888,747)

(4,901,881)

 

 

 

 

R & D tax credit

74,974

-

43,790

 

 

 

 

Profit / (Loss) for the period

(1,738,492)

(1,888,747)

(4,858,091)

 

 

 

 

Profit / (Loss) attributable to:

 

 

 

  • Owners of the parent

 

(1,738,492)

(1,888,747)

(4,858,091)

 

 

 

 

Loss per share (expressed in pence per share)

  (6.16)p

(37.8)p

(19.43)p

Loss per share based upon subdivision

  (6.16)p

(7.55)p

(19.43)p

 

 

 

 

 

 

 


 

Condensed consolidated statement of financial position

 

 

Unaudited

Unaudited

Audited

 

As at 30  June 2017

 

 As at 30  June 2016

 

As at 31 December 2016

 

£

£

£

Assets

 

 

 

Non-current assets

 

 

 

Intangibles

-

-

-

Property Plant and Equipment

166,123

 

56,680

Investments

6

 

6

Loans and advances to customers

917,900

 

917,900

Trade and other receivables

10,891,777

7,599,985

9,061,681

 

11,975,806

7,599,985

10,036,267

 

 

 

 

Current assets

 

 

 

Inventory

41,669

-

14,828

Loans and advances to customers

22,489,833

14,578,234

17,653,553

Trade and other receivables

904,311

 

339,880

Cash and cash equivalents

1,624,534

4,658,569

1,783,282

 

25,060,347

19,236,803

19,791,543

 

 

 

 

Total assets

37,036,153

26,836,788

29,827,810

 

 

 

 

Equity and liabilities

 

 

 

Equity attributable to owners of the parent

 

 

 

Ordinary shares

4,530,000

50,000

50,000

Other reserves

75,049

15,000

75,049

Accumulated losses

(15,775,161)

  (11,067,325)

  (14,036,669)

 

 

(11,170,112)

  (11,002,325)

  (13,911,620)

Non-controlling interests

 

-

-

Total equity

(11,170,112)

(11,002,325)

(13,911,620)

 

 

 

 

Liabilities

 

 

 

Non-current liabilities

 

 

 

Borrowings

38,847,963

32,416,995

35,694,647

 

 

 

 

Current liabilities

 

 

 

Borrowings

7,247,288

4,624,776

6,794,814

Trade and other payables

2,111,014

797,342

1,249,969

 

 

 

 

Total liabilities

48,206,265

37,839,113

43,739,430

 

 

 

 

Total equity and liabilities

37,036,153

26,836,788

29,827,810

 

 

 

 

 

 

 

Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2017

 

 

  Unaudited

Unaudited

  Audited

 

Six months

ended

Six months

ended

Year

ended

31

 

 30 June

  2017

30 June

2016

 31 December 2016

 

£

£

£

Cash flows from operating activities

 

 

 

Loss before taxation

   (1,813,466)

(1,888,747)

(4,901,881)

Adjustments for:

 

 

 

Finance Costs

  2,335,221

1,726,289

4,302,403

Other reserves

  -

-

60,049

Depreciation

  7,131

-

37,950

Amortisation

  -

-

37,000

(Increase)/Decrease in inventory

   (23,841)

-

(14,828)

Increase in Loans and trade and other receivable

   (7,367,094)

(8,082,791)

(13,826,960)

Increase/(Decrease) in trade and other payables

   967,758

(2,239,243)

(168,550)

Cash (utilised) / generated from operations

 (5,984,291)

(10,484,492)

(14,474,817)

 

 

 

 

Finance costs paid

(2,335,221)

(1,726,289)

(4,302,403)

R & D Tax receipt

74,974

-

43,790

Net cash (used by) / generated from operating activities

(8,244,538)

(12,210,781)

(18,733,430)

 

 

 

 

Cash flows from investing activities

 

 

 

Payments to acquire tangible assets

-

-

(56,680)

Net cash generated from investing activities

-

-

(56,680)

 

 

 

 

Cash flows from financing activities

 

 

 

Proceeds from issue of shares

4,480,000

 

 

Proceeds from issue of debenture and other loans

3,605,790

13,785,314

17,489,356

Net cash generated from financing activities

8,085,790

13,785,314

17,489,356

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

(158,748)

1,574,533

(1,300,754)

 

 

 

 

Cash and cash equivalents at the beginning of the period

1,783,282

3,084,036

3,084,036

 

 

 

 

Cash and cash equivalents at end of period

1,624,534

4,658,569

1,783,282

 

 

 

Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2017

 

 

 

Attributable to owners of the parent

Total

Equity

 

Share capital

Other reserves

Accumulated losses

Total

 

£

£

£

£

£

 

 

 

 

 

 

As at

30 June 2016

50,000

15,000

(11,067,325)

(11,002,325)

(11,002,325)

 

 

 

 

 

 

Other reserves

 

60,049

-

60,049

65,049

Loss for the period

  -

-

(2,969,344)

(2,969,344)

(2,969,344)

 

 

 

 

 

 

As at

31 December

2016

50,000

75,049

(14,036,669)

(13,911,620)

(13,911,620)

Share sale

4,480,000

-

-

4,480,000

4,480,000

 

 

 

 

 

 

Loss for the period

-

-

(1,738,492)

(1,738,492)

(1,738,492)

 

 

 

 

 

 

As at

30 June 2017

4,530,000

75,049

(15,775,161)

(11,170,112)

(11,170,112)

 

 

 

 

 

 

 

Share capital is the amount subscribed for shares at nominal value.

 

Other reserves represent the expenses recognised for share-based payments.


Accumulated losses represent the cumulative loss of the group attributable to equity shareholders.

 

 

 


 

Notes to the condensed financial statements

 

 

  1. Basis of accounting

This interim report, which incorporates the financial information of the Group, has been prepared using the historical cost convention, on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.

The same accounting policies and methods are used in the interims as compared with the most recent annual financial statements.

The interim condensed financial statements for the 6 months to June 2017 have been prepared in accordance with International Accounting Standard 34 "Interim Financial Report" and have not been audited by the external auditors of the Group.

 

The unaudited results for period ended 30 June 2017 do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

 

The Board of Directors of the Group at its meeting on 27 September 2017 examined and approved the interim condensed financial results.

 

2.          Standards and Interpretations adopted with no material effect on financial statements

There are no IFRS or IFRIC interpretations that are effective for the first time in this financial period that

would be expected to have material impact on the company.

There are no other IFRS or IFRIC interpretations that are not yet effective that would be expected to have

material impact on the company.

 

3.    Loss per Share

 

 

Unaudited

Six Months ended 30 June

2017

 

Unaudited

Six Months ended 30 June

 2016

 

Audited

Year  ended 31 December

2016

Loss per share:

Basic (pence)

Diluted (pence)

 

(0.062)

(0.062)

 

 

(0.378)

(0.075)

 

 

(19.43)

(19.43)

 

 

 

 

 

 

Weighted average number of shares in issue

28,200,000

 

5,000,000

 

25,000,000

After subdivision

 

 

25,000,000

 

 

 

Loss per ordinary share on the Company's loss for the financial period within the Condensed Company Statement of Financial Position.

 

Borrowing

                                                                                              

 

 

Unaudited

As at 30 June 2017

Unaudited

As at 30 June 2016

Audited

As at 31

31 December 2017

 

 

£

£

£

Non Current

 

 

 

 

Debentures and other loans

 

38,847,963

32,416,995

35,694,647

 

 

 

 

 

Current

 

 

 

 

Debentures and other loans

 

7,247,288

4,624,776

6,794,814

 

 

 

 

 

 

 

46,095,251

37,041,771

42,489,461

 

 

 

 

 

 

All commissions due on debentures have been deferred against the debentures they relate to and have either been shown as non-current or current borrowings. All non-current borrowings are wholly repayable within five years.

 

The debentures are secured by first floating charge over all of the assets of the group, and bear interest as per below. Interest is paid in two half yearly instalments.

 

 

Repayment date

Annual interest

 

 

 

2017 Debentures

31 December 2017

8.25%

2018 Debentures

31 December 2018

8.25%

2019 Debentures

31 December 2019

8.25%

2020 Debentures

31 December 2020

8.75%

2021 Debentures

31 December 2021

8.75%

 

 

Included within debentures and other loans is capitalised commission of £1,901,051 which is charged to the profit & Loss over the life of the Debentures to which it relates.

 

4.       Share Capital

      On the 19 October 2016, the Company undertook a subdivision of shares of 5 for 1.

      The nominal value per share adjusted to £0.002 from £0.01.

      The ordinary shares have attached to them full voting, dividend and capital distribution (including on

       Winding up)right; they do not confer any rights of redemption.                       

       On the 14 February 2017 issued 3,200,000 new ordinary shares at £1.40 per share for a total of

       £4,480,000                                    

    
        This is a result of the exchange by a number of debenture holders for their existing debentures in The                    
        Just Loans Group Plc and its subsidiaries Just Cash Flow Plc, Just Bridging Loans Plc and Just Finance       
        Loans & Investments Plc.

 

 

  5. Events after the reporting period     

In July 2017, the Company signed a facility with SQN Secured Income Fund for a £10M facility allowing the  Company to drawdown £2M per month. The Company has drawn £4M of this facility, drawing down £2M in July and August.

Since 1 July the Company has received £9.8m (of which £9.0m was received in September) from the institutional investor as proceeds from the £50m Bond issue.

 

 





This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of Nasdaq Corporate Solutions clients. Source: JUST LOANS PLC, 1 Charterhouse Mews Farringdon, London EC1M 6BB, UK
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