TIDMNWOR

RNS Number : 4971A

National World PLC

30 September 2020

National World plc

("National World," or the "Company")

Results for the six month period to 30 June 2020

National World, (LSE: NWOR.L), the investment business established to create a modern platform for news publishing by implementing a new operating model powered by the latest technology, today announces its results for the six month period to 30 June 2020.

David Montgomery, Executive Chairman, said:

"The Covid-19 pandemic has impacted the news publishing sector, accelerating the structural impact we outlined at the time of our IPO. We remain confident in our strategy which we continue to refine in conjunction with evaluating a number of opportunities. Further updates will be provided to shareholders as appropriate."

Results for the six month period to 30 June 2020

The results for the six month period to 30 June 2020 is available on our website: https://www.nationalworld.com/investors/reports-presentations-and-publications/year/2020

Excerpts of the results are set out below.

This announcement contains inside information for the purposes of the Market Abuse Regulation (EU) NO. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of National World is Vijay Vaghela, Chief Operating Officer.

- Ends -

For further information please contact:

 
 National World plc 
  David Montgomery 
  Vijay Vaghela 
  c/o Montfort Communications 
 Montfort Communications 
  Nick Miles 
  Olly Scott                       +44 (0)78 1234 5205 
 

Interim Management Report

I am pleased to present the Interim Report and Financial Statements for the six month period ended30 June 2020 for National World Plc (the "Company")

The Company has been established to pursue opportunities in the news publishing and digital media sector and/or in associated complementary technologies. Our objective is to create a modern platform for news publishing by implementing a new operating model powered by the latest technology.

National World will jettison legacy systems and archaic industrial practices to create efficient dissemination of news and to monetise it by matching content to audience.

The Company has continued to progress with efforts towards identifying suitable assets for acquisition. Whilst the Company has been engaged on a number of potential acquisitions during the period, no acquisitions or investments have progressed to a stage where exclusivity has been granted. Progress has been impacted by the uncertainty created by the COVID-19 outbreak which has adversely impacted news publishing businesses.

The impact of COVID 19 on the news publishing sector further highlights the importance and urgent need for a transformation of the industry with a new operating model and increased collaboration. We continue to explore a range of opportunities despite a rapidly changing situation.

The Company incurred a loss for the six month period ended 30 June 2020 of GBP 118,177 from the on-going administrative expenses required to operate the Company. The Board continues to tightly manage ongoing operating costs.

The Group had a cash balance of GBP 4,312,865 and net assets of GBP4,324,871 as at 30 June 2020.

Since December 2019, the Company's Ordinary Shares have been suspended from trading on the Main Market of the LSE as the Company was considering a potential acquisition. The shares remain suspended as the directors continue to work on potential acquisitions and look forward to presenting a value enhancing opportunity for consideration by shareholders.

All statements other than historical facts are forward-looking statements and the Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. There are a number of potential risks and uncertainties which may have material impact on the Company's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. The directors do not consider that there are any changes to the principal risks and uncertainties since the publication of the 2019 Annual Report and Accounts which are available on the Company's website at www.nationalworld.com.

David Montgomery

Executive Chairman

30 September 2020

Statement of Comprehensive Income

For the six months ended 30 June 2020

 
                                 Note     Unaudited      Unaudited      Audited 
                                         Six months    29 May 2019    29 May 19 
                                          to 30 Jun      to 30 Jun    to 31 Dec 
                                                 20             19           19 
                                                GBP            GBP          GBP 
------------------------------  -----  ------------  -------------  ----------- 
 Continuing operations 
 Non-recurring costs to 
  establish National World        5               -              -     (87,615) 
 Listing expenses                 6               -              -     (81,268) 
 Administrative expenses          7       (127,900)              -    (167,392) 
                                       ------------  -------------  ----------- 
 Operating loss                           (127,900)              -    (336,275) 
                                       ------------  -------------  ----------- 
 
 Finance income                   8           9,723              -        1,208 
                                       ------------  ------------- 
 Loss before tax                          (118,177)              -    (335,067) 
                                       ------------  -------------  ----------- 
 
 Taxation                                         -              -            - 
                                       ------------  ------------- 
 Total comprehensive loss 
  for the period attributable 
  to the equity owners                    (118,177)              -    (335,067) 
                                       ============  =============  =========== 
 
 Loss per share 
 Basic and diluted                9         (0.002)         (0.00)      (0.012) 
                                       ------------  -------------  ----------- 
 

The above results were derived from continuing operations.

The notes form part of these Interim Financial Statements.

Statement of Financial Position

As at 30 June 2020

 
 Company Number: 12021298       Note     Unaudited    Unaudited      Audited 
                                             As at        As at        As at 
                                         30 Jun 20       30 Jun    31 Dec 19 
                                                             19 
                                               GBP          GBP          GBP 
-----------------------------  -----  ------------  -----------  ----------- 
 ASSETS 
 Current assets 
 Trade and other receivables     10         40,396          100      127,628 
 Cash and cash equivalents       11      4,312,865            -    4,383,077 
 Total current assets                    4,353,261          100    4,510,705 
                                      ------------  -----------  ----------- 
 
 Total assets                            4,353,261          100    4,510,705 
                                      ------------  -----------  ----------- 
 
 LIABILITIES 
 Current liabilities 
 Trade and other payables        12         28,390            -       67,657 
 Total current liabilities                  28,390            -       67,657 
                                      ------------  -----------  ----------- 
 
 Total liabilities                          28,390            -       67,657 
                                      ------------  -----------  ----------- 
 
 NET ASSETS                              4,324,871            -    4,443,048 
                                      ============  ===========  =========== 
 
 EQUITY 
 Share capital                   13         54,000          100       54,000 
 Share premium                   14      4,724,115            -    4,724,115 
 Accumulated losses              14      (453,244)            -    (335,067) 
                                      ------------  -----------  ----------- 
 TOTAL EQUITY                            4,324,871          100    4,443,048 
                                      ============  ===========  =========== 
 

The Interim Report and Financial Statements were approved by the Board of Directors and authorised for issue on 30 September 2020.

David Montgomery

Executive Chairman

The notes form part of these Interim Financial Statements.

Statement of Changes in Equity

For the six months ended 30 June 2020

 
                               Share Capital   Share Premium   Accumulated       Total 
                                                                    Losses      Equity 
                                         GBP             GBP           GBP         GBP 
----------------------------  --------------  --------------  ------------  ---------- 
 As at 29 May 2019                         -               -             -           - 
 Transactions with owners 
 Issue of ordinary shares                100               -             -         100 
 As at 30 June 2019                      100               -             -         100 
                              ==============  ==============  ============  ========== 
 
                               Share Capital   Share Premium   Accumulated       Total 
                                                                    Losses      Equity 
                                         GBP             GBP           GBP         GBP 
----------------------------  --------------  --------------  ------------  ---------- 
 
 As at 30 June 2019                      100               -             -         100 
 Comprehensive income 
 Loss for the period                       -               -     (335,067)   (335,067) 
 Transactions with owners 
 Issue of ordinary shares 
  and subdivision of shares           53,900       5,046,000             -   5,099,900 
 Cost to issue shares                      -       (321,885)             -   (321,885) 
 As at 31 December 2019               54,000       4,724,115     (335,067)   4,443,048 
                              ==============  ==============  ============  ========== 
 
                               Share Capital   Share Premium   Accumulated       Total 
                                                                    Losses      Equity 
                                         GBP             GBP           GBP         GBP 
----------------------------  --------------  --------------  ------------  ---------- 
 As at 31 December 2019               54,000       4,724,115     (335,067)   4,443,048 
 Comprehensive income 
 Loss for the period                       -               -     (118,177)   (118,177) 
 As at 30 June 2020                   54,000       4,724,115     (453,244)   4,324,871 
                              ==============  ==============  ============  ========== 
 

The notes form part of these Interim Financial Statements.

Statement of Cash Flows

For the six months ended 30 June 2020

 
                                  Note     Unaudited    Unaudited      Audited 
                                          Six months    29 May 19    29 May 19 
                                           to 30 Jun    to 30 Jun    to 31 Dec 
                                                  20           19           19 
                                                 GBP          GBP          GBP 
-------------------------------  -----  ------------  -----------  ----------- 
 Cash flow from operating 
  activities 
 Operating loss                            (127,900)            -    (336,275) 
 Cash outflow from operating 
  activities                               (127,900)            -    (336,275) 
 
 Changes in working capital 
 Decrease/(Increase) in 
  trade and other receivables      10         87,232            -    (127,628) 
 (Decrease)/Increase in 
  trade and other payables         12       (39,267)            -       67,657 
                                        ------------  -----------  ----------- 
 Net cash used in operating 
  activities                                (79,935)            -    (396,246) 
                                        ------------  -----------  ----------- 
 
 Cash flows from investing 
  activities 
 Interest received                 8           9,723            -        1,208 
                                        ------------  -----------  ----------- 
 Net cash generated from 
  investing activities                         9,723            -        1,208 
                                        ------------  -----------  ----------- 
 
 Cash flows from financing 
  activities 
 Proceeds from issue of 
  shares, net of issue costs                       -            -    4,778,115 
                                        ------------  -----------  ----------- 
 Net cash generated from 
  financing activities                             -            -    4,778,115 
                                        ------------  -----------  ----------- 
 
 Net (decrease)/increase 
  in cash and cash equivalents              (70,212)            -    4,383,077 
 Cash and cash equivalents                 4,383,077            -            - 
  at the beginning of the 
  period 
                                        ------------  -----------  ----------- 
 Cash and cash equivalents 
  at the end of the period                 4,312,865            -    4,383,077 
                                        ============  ===========  =========== 
 

The notes form part of these Interim Financial Statements.

Notes to the Interim Financial Statements

1. Company information

National World PLC (the "Company") is a public company listed on the London Stock Exchange in England and Wales. The Company is domiciled in England and its registered office is 201 Temple Chambers, 3-7 Temple Avenue, London, United Kingdom, EC4Y 0DT.

The principal activity of the Company is that of identifying and acquiring investment projects.

The Company was incorporated on 29 May 2019 and the first audited financial statements for the Company were for the period 29 May 2019 to 31 December 2019. Therefore, the comparative results for the 2019 interim financial results cover the period from 29 May 2019 to 30 June 2019.

2. Accounting policies

2.1 Basis of preparation

These financial statements of the Company have been prepared on a going concern basis in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations issued by the International Accounting Standards Board (IASB) and adopted by the European Union, in accordance with the Companies Act 2006.

Measurement bases

The financial statements have been prepared under the historical cost convention. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

The preparation of the financial statements in compliance with adopted IFRS requires the use of certain critical accounting estimates and management judgements in applying the accounting policies. The significant estimates and judgements that have been made and their effect is disclosed in note 3.

2.2 Going concern

The Company had GBP 4,312,865 cash as at 30 June 2020 and ongoing operational costs of cGBP300,000 per annum providing significant headroom to fund costs associated with evaluating acquisitions and investments, including due diligence. On this basis, the Board considers the company to have sufficient resources to remain in operational existence for the foreseeable future.

2.3. Significant accounting policies

The accounting policies adopted are consistent with those followed in the preparation of the Annual Report and Accounts of the Company for the year ended 31 December 2019. A copy of the Annual Report and Accounts is available on the Company's website at https://www.nationalworld.com/ .

3. Significant judgments and estimates

The preparation of the Company's financial statements under IFRS as endorsed by the EU requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the statement of financial position date, amounts reported for revenues and expenses during the period, and the disclosure of contingent liabilities, at the reporting date.

Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Directors consider that there are no critical accounting judgements or estimates relating to the financial information of the Company.

4. Loss before income tax

The loss before income tax is stated after charging:

 
                                       Unaudited    Unaudited      Audited 
                                      Six months    29 May 19    29 May 19 
                                       to 30 Jun    to 30 Jun    to 31 Dec 
                                              20           19           19 
                                             GBP          GBP          GBP 
----------------------------------  ------------  -----------  ----------- 
 Fees payable to the Company's 
  auditors - audit of the 
  Company's annual accounts                9,000            -       18,000 
 Fees payable to the Company's 
  auditors - non-statutory 
  audit in relation to the 
  Company's re-registration 
  as a plc.                                    -            -        2,500 
 Fees payable to the Company's 
  auditors - Reporting Accountant 
  fees                                         -            -       15,000 
                                    ============  ===========  =========== 
 

5. Non-recurring costs to establish National World

The Company incurred costs of GBP87,615 in the second half of 2019 which were considered to be one-off to establish National World Plc, therefore these costs were disclosed separately in the Statement of Comprehensive Income in the year ended 31 December 2019.

6. Listing Expenses

During the second half of 2019, the Company incurred GBP81,286 in IPO costs and other fees which were disclosed separately in the Statement of Comprehensive Income in the year ended 31 December 2019.

7. Analysis of expenses by nature

The breakdown by nature of administrative expenses is as follows:

 
                                    Unaudited    Unaudited      Audited 
                                   Six months    29 May 19    29 May 19 
                                           to    to 30 Jun    to 31 Dec 
                                    30 Jun 20           19           19 
                                          GBP          GBP          GBP 
-------------------------------  ------------  -----------  ----------- 
 Staff costs                            9,500            -        4,750 
 Accounting fees                       12,800            -        8,000 
 Audit fees                             9,000            -       18,000 
 Professional fees                     18,400            -       97,577 
 Other costs, including 
  financial PR, insurance, 
  and other fees                       78,200            -       39,065 
                                 ------------  -----------  ----------- 
 Total administrative expenses        127,900            -      167,392 
                                 ============  ===========  =========== 
 

8. Finance income

 
                           Unaudited    Unaudited      Audited 
                          Six months    29 May 19    29 May 19 
                           to 30 Jun    to 30 Jun    to 31 Dec 
                                  20           19           19 
                                 GBP          GBP          GBP 
----------------------  ------------  -----------  ----------- 
 Bank interest                 9,723            -        1,208 
                        ------------  -----------  ----------- 
 Total finance income          9,723            -        1,208 
                        ============  ===========  =========== 
 

9. Loss per share

The loss per share has been calculated using the loss for the period and the weighted average number of ordinary shares entitled to dividend rights which were outstanding during the period, as follows:

 
                                       Unaudited    Unaudited      Audited 
                                      Six months    29 May 19    29 May 19 
                                       to 30 Jun    to 30 Jun    to 31 Dec 
                                              20           19           19 
                                             GBP          GBP          GBP 
----------------------------------  ------------  -----------  ----------- 
 Loss for the period attributable 
  to equity holders of the 
  Company                              (118,177)            -    (335,067) 
 Weighted average number 
  of ordinary shares                  54,000,000          100   26,813,426 
                                    ------------  -----------  ----------- 
 Loss per share                          (0.002)            -      (0.012) 
                                    ============  ===========  =========== 
 

10. Trade and other receivables

 
                                Unaudited    Unaudited      Audited 
                                30 Jun 20    30 Jun 19    31 Dec 19 
                                      GBP          GBP          GBP 
----------------------------  -----------  -----------  ----------- 
 Amounts falling due within 
  one year: 
 Prepayments                       27,764            -       41,863 
 Other receivables                 12,632          100       85,765 
                                   40,396          100      127,628 
                              ===========  ===========  =========== 
 

The Directors consider that the carrying amount of trade and other receivables is approximately equal to their value.

Other receivables comprise VAT due on expenses.

11. Cash and cash equivalents

 
                 Unaudited    Unaudited      Audited 
                  30 Jun20    30 Jun 19    31 Dec 19 
                       GBP          GBP          GBP 
--------------  ----------  -----------  ----------- 
 Cash at bank    4,312,865            -    4,383,077 
                ----------  -----------  ----------- 
                 4,312,865            -    4,383,077 
                ==========  ===========  =========== 
 

All bank balances are denominated in pounds sterling with GBP4.2 million held on a term deposit with Barclays Bank plc which requires 30 days' notice for any withdrawal.

12. Trade and other payables

 
                               Unaudited    Unaudited      Audited 
                               30 Jun 20    30 Jun 19    31 Dec 19 
                                     GBP          GBP          GBP 
---------------------------  -----------  -----------  ----------- 
 Amounts falling due in 
  one year: 
 Other taxation and social 
  security                           329            -          699 
 Trade payables                    2,361            -       31,969 
 Other payables                        -            -        1,234 
 Accruals                         20,700            -       33,755 
                                  23,390            -       67,657 
                             ===========  ===========  =========== 
 

13. Share capital

 
                              Number of   Share Capital   Share premium 
                                 Shares             GBP             GBP 
 Issued and fully paid 
  Ordinary shares of GBP1 
  each 
 At 30 June 2019                    100             100               - 
                            ===========  ==============  ============== 
 Issued and fully paid 
  Ordinary shares of 0.1 
  pence each 
 At 31 December 2019         54,000,000          54,000       4,724,115 
 At 30 June 2020             54,000,000          54,000       4,724,115 
                            ===========  ==============  ============== 
 

The Company was incorporated on 29 May 2019. On incorporation, 100 ordinary shares of GBP1 per par value were issued at par. On 22 July 2019, the Company performed a share subdivision to split the existing 100 ordinary shares into 100,000 ordinary shares. The new par value of the shares was 0.1p.

On 25 July 2019, a further 1,700,000 ordinary shares of 0.1p were issued at 2.64p for a cash consideration of GBP44,900 and 2,200,000 ordinary shares of 0.1p were issued at 2.5p for a cash consideration of GBP55,000.

On 19 September 2019, 50,000,000 ordinary shares of 0.1p were issued at 10p, this totalled further cash consideration of GBP5,000,000.

The holders of ordinary shares are entitled to one voting right per share and are entitled to dividends out of the profits of the Company available for distribution.

14. Reserves

Share premium

Includes all premiums in excess of the nominal value of shares received on issue of share capital.

Accumulated losses

Includes all losses incurred since incorporation.

15. Related party transactions

The related parties are considered to be the Directors who each have shares on the Company. Their remuneration is as follows:

 
                                  Unaudited    Unaudited      Audited 
                                 Six months    29 May 19    29 May 19 
                                  to 30 Jun    to 30 Jun    to 31 Dec 
                                         20           19           19 
                                        GBP          GBP          GBP 
-----------------------------  ------------  -----------  ----------- 
 Directors emoluments, 
  including salary and fees: 
 D Montgomery                         2,500            -        1,250 
 V Vaghela                            2,500            -        1,250 
 M Hollinshead                        1,500            -          750 
 J Rowe                               1,500            -          750 
 S Barber                             1,500            -          750 
                               ------------  -----------  ----------- 
                                      9,500            -        4,750 
                               ============  ===========  =========== 
 

16. Contingent Liabilities

The Company has agreed that it will pay its former solicitors, Cooley LLP, GBP90,000 if the Company completes an acquisition. As this is wholly contingent on an acquisition being made, a liability has not been recognised at 30 June 2020.

17. Ultimate controlling party

The Company has no ultimate controlling party.

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September 30, 2020 02:00 ET (06:00 GMT)