TIDMROC
RNS Number : 6820K
Rockpool Acquisitions PLC
22 December 2022
Press release 22 December 2022
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
Rockpool Acquisitions Plc
("Rockpool" or "the Company")
Interim Report for the period ended 30 September 2022
Rockpool Acquisitions Plc (AIM: ROC), the S pecial Purpose
Acquisition Company ("SPAC") formed to undertake the acquisition of
a company or business headquartered or materially based in Northern
Ireland, announces its unaudited Interim Results for the six months
ended 30 September 2022.
Overview
-- The Board has recently announced the signing of a heads of
terms to acquire the Amcomri Group Limited, which is the holding
company of a fast-growing, acquisitive group of companies in the
engineering and manufacturing sectors.
-- As a result of the announcement and as required by the
Listing Rules, trading of the Company's shares was suspended
pending completion of the acquisition and readmission of the shares
to the Official List and the market.
-- The Board is hopeful that readmission will take place in the second quarter of 2023.
-- Reported loss of GBP(77,746) for the six-month period arising
from accrued loan interest income, administrative expenses and
accrued loan interest payable.
Chairman's Statement
Following termination of the of the proposed transaction with
Greenview Gas, the Board, as announced on 21 January 2022 , decided
to broaden the type of acquisition it will consider, to include
businesses without any direct connection with Northern Ireland.
The Board considered a small number of acquisition candidates,
before eventually entering into Heads of Terms with the owners of
the Amcomri Group Limited, the holding company of a fast-growing,
acquisitive group of quality UK Engineering and Manufacturing
businesses. The Amcomri Group consists of nine SMEs acquired over
the past five years in those industrial sectors, and has a wealth
of experience in optimising business performance. The Amcomri Group
primarily provides a range of specialist engineering and equipment
services to the power, rail, petrochemical, process and production
electronics industries in the UK and Ireland. Within these sectors
it offers a range of services and equipment to allow asset owners
to extend the operating life of key high value critical assets or
associated infrastructure. More recently it has established a
second focus area in specialist printing in which it owns a further
two operating companies, its most recent acquisition in this sector
being Bex Design & Print Limited, a 35-year-old specialist
screen and digital print business supplying into the electronics
and other industries.
The Heads provide that the transaction will be subject to a
number of matters including the negotiation of a formal sale and
purchase agreement. The consideration for the acquisition if it is
concluded will be GBP22,340,625 (based on the forecast pro-forma
aggregate EBITDA for FY2022 of GBP5.401m, an agreed EV to EBITDA
multiple of 6.84 and net debt of GBP14.6m) to be satisfied by the
issue at completion fully paid to the Sellers of 284,284,523 new
ordinary shares of Rockpool (Ordinary Shares), or (in order to
maintain sufficient Ordinary Shares in public hands) by the issue
at completion of a combination of Ordinary Shares and, either,
nil-coupon convertible loan notes, or non-voting convertible
shares, which on conversion into Ordinary Shares would together
equal 284,284,523 Ordinary Shares.
As a result of the announcement, and as required by the Listing
Rules, trading of the Company's shares was suspended pending
completion of the acquisition and readmission of the shares to the
Official List and the market. The Board is mindful that the
Company's shareholders have already endured an exceptionally long
period during which trading in their shares was suspended (in
relation to the potential Greenview Gas acquisition) and is seeking
to minimise the period of suspension this time around.
Unfortunately that will be partly dependent on matters outside its
control, such as the time taken to complete audits of the target
companies' accounts and the number of iterations that the
prospectus (required for readmission to the market) undergoes with
the FCA. Nevertheless, the Board is hopeful that readmission can be
achieved by no later than 30 June 2023.
In the half year to 30 September 2022 the Company made a loss of
GBP77,746 (loss in the six months ended 30 September 2021: GBP
13,004 ). The loss is attributable to the administrative and
professional expenses of the Company, together with the costs
associated with maintaining its Standard Listing on the London
Stock Exchange.
Outlook
As I noted in my letter accompanying the financial statements
for the year ended 31 March 2022, the termination of the
relationship with Greenview Gas enabled the Company to receive a
payment of GBP 1.2m from that company by way repayment of the
Company's loan to it and interest thereon, together with a small
premium. The receipt of that sum enabled the Company to settle all
its own financial obligations and leave it with funds that are
anticipated to be sufficient to cover the transaction costs of
making of the acquisition of the Amcomri Group and leave it with
some funds for working capital.
The Board would like to thank shareholders, advisers and others
for their continued support and patience during 2022 and look
forward to a positive and, in all sorts of ways, better year ahead
when the Company will, finally, be able to come back to the market
having made a substantial and exciting acquisition .
Richard Beresford
Non-executive Chairman, 22 December 2022
Responsibility Statement
We confirm that to the best of our knowledge:
-- the Interim Report has been prepared in accordance with
International Accounting Standards 34, Interim Financial Reporting,
as adopted by the United Kingdom ;
-- gives a true and fair view of the assets, liabilities,
financial position and loss of the Company;
-- the Interim Report includes a fair review of the information
required by DTR 4.2.7R of the Disclosure Guidance and Transparency
Rules, being an indication of important events that have occurred
during the first six months of the financial year and their impact
on the set of Interim financial statements; and a description of
the principal risks and uncertainties for the remaining six months
of the year; and
-- the Interim Report includes a fair review of the information
required by DTR 4.2.8R of the Disclosure Guidance and Transparency
Rules, being the information required on related party
transactions.
The Interim Report was approved by the Board of Directors and
the above responsibility statement was signed on its behalf by:
Richard Beresford
Non-executive Chairman
22 December 2022
For further information please contact:
Rockpool Acquisitions Plc
Mike Irvine, Non-Executive Director Tel: +44 (0)28 9044 6733
Neil Adair, Non-Executive Director http://rockpoolacquisitions.plc.uk
Richard Beresford, Non-Executive Chairman
Shard Capital (Broker)
Damon Heath / Erik Woolgar Tel: +44 (0)20 7186 9952
Abchurch (Financial PR)
Abchurch Communications Tel: +44 (0)20 7459 4070
Julian Bosdet +44 (0)7771 663 886
Julian.bosdet@abchurch-group.com www.abchurch-group.com
Interim Statement of Comprehensive
Income
6 months to 6 months to
30 September 30 September
2022 2021
Note
Unaudited Unaudited
GBP GBP
Revenue -
------------------------------- ------------- -------------- --------------
Administration expenses (77,381) (58,507)
=============================== ============= ============== ==============
Operating Profit /
(Loss) (77,381) (58,507)
=============================== ============= ============== ==============
Finance income 49,702
=============================== ============= ============== ==============
Finance expense (365) (4,199)
=============================== ============= ============== ==============
Profit / (Loss) before
tax (77,746) (13,004)
=============================== ============= ============== ==============
Tax
------------------------------- ------------- -------------- --------------
Profit / (Loss) for
the period (77,746) (13,004)
=============================== ============= ============== ==============
Total Comprehensive Income
for the period (77,746) (13,004)
============================================== ============== ==============
Earnings/(Loss) per
share (pence) 5 (0.6) (0.1)
------------------------------- ------------- -------------- --------------
Statement of Financial Position
30 September 31 March
2022 2022
Unaudited Audited
Note GBP GBP
------- ------------- ----------
ASSETS
------- ------------- ----------
Current assets
------- ------------- ----------
Trade and other receivables 6 4,167 -
------- ------------- ----------
Cash and cash equivalents 898,967 1,206,254
------- ------------- ----------
Total assets 903,134 1,206,254
------- ------------- ----------
EQUITY
------- ------------- ----------
Capital and reserves attributable
to owners of the Company
------- ------------- ----------
Share capital 636,250 636,250
------- ------------- ----------
Share premium 461,250 461,250
------- ------------- ----------
Retained deficit (265,983) (188,236)
------- ------------- ----------
831,517 909,264
------- ------------- ----------
LIABILITIES
------- ------------- ----------
Current liabilities
------- ------------- ----------
Trade and other payables 7 26,178 186,325
------- ------------- ----------
Corporation Tax 22,439 22,439
------- ------------- ----------
Borrowings 6,000 68,619
------- ------------- ----------
Long Term liabilities
------- ------------- ----------
Borrowings 8 17,000 19,607
------- ------------- ----------
Total Equity and Liabilities 903,134 1,206,254
------- ------------- ----------
Statement of Changes in Equity
Attributable to owners of
the Company
Share Share Retained
Capital Premium earnings Total
GBP GBP GBP GBP
Unaudited Unaudited Unaudited Unaudited
Balance as at 1 April 2022 636,250 461,250 (188,236) 909,264
================================ ============ ========== ========== ==========
Profit/(Loss) for period - - (77,746) (77,746)
Other comprehensive income - - (77,746) (77,746)
-------------------------------- ------------ ---------- ---------- ----------
Total comprehensive income
for the period - - (77,746) (77,746)
-------------------------------- ------------ ---------- ---------- ----------
Balance as at 30 September
2022 636,250 461,250 (265,982) 831,517
Balance as at 1 April 2021 636,250 461,250 (222,451) 875,049
Profit/(Loss) for period - - (13,004) (13,004)
Other comprehensive income - - - -
Total comprehensive income
for the period - - (13,004) (13,004)
-------------------------------- ------------ ---------- ---------- ----------
Total transactions with owners - - - -
Balance as at 30 September
2021 636,250 461,250 (235,455) 862,045
-------------------------------- ------------ ---------- ---------- ----------
Statement of Cash Flows
6 months to 6 months to
30 September 2022 30 September 2021
Unaudited Unaudited
Cash flow from operating activities GBP GBP
====================================================== =================== ===================
Profit/(Loss) for the period (77,746) (13,004)
======================================================= =================== ===================
Changes in working capital:
====================================================== =================== ===================
(Increase)/decrease in trade and other receivables (4,167) (51,979)
======================================================= =================== ===================
Increase/(decrease) in trade and other payables (160,147) 59,293
------------------------------------------------------- ------------------- -------------------
Net cash flows from operating activities (164,314) (5,690)
------------------------------------------------------- ------------------- -------------------
Cash flows from financing activities
====================================================== =================== ===================
Borrowings (65,226) -
------------------------------------------------------ ------------------- -------------------
Net cash flows from financing activities (65,226) -
------------------------------------------------------ ------------------- -------------------
Net (decrease)/increase in cash and cash equivalents (307,286) (5,690)
======================================================= =================== ===================
Cash and cash equivalents at beginning of the period 1,206,254 24,983
------------------------------------------------------- ------------------- -------------------
Cash and cash equivalents at end of the period 898,967 19,292
======================================================= =================== ===================
Notes to the unaudited Interim Financial Statements
1. Basis of preparation
The Interim Report, which includes the interim financial
statements has been prepared in accordance with International
Accounting Standard 34 'Interim Financial Reporting'. The unaudited
interim financial statements for the six months ended 30 September
2022 have been prepared on a going concern basis in accordance with
Disclosure Guidance and Transparency Rules of the Financial Conduct
Authority, using the recognition and measurement principles of
UK-adopted International Accounting Standards .
Cyclicality
The interim results for the six months ended 30 September 2022
are not necessarily indicative of the results to be expected for
the full year ending 31 March 2023. Due to the nature of the
entity, the operations are not affected by seasonal variations at
this stage.
2. Financial Information
The Interim Report for the period 1 April 2022 to 30 September
2022 is unaudited. This report has not been reviewed by the
company's auditors in accordance with the International Standard on
Review Engagements 2410 issued by the Auditing Practices Board. In
the opinion of the Directors the interim financial statements,
included in the Interim Report, for the period present fairly the
financial position, and results from operations and cash flows for
the period in conformity with the generally accepted accounting
principles consistently applied.
The Interim Report, which includes the interim financial
statements, set out above does not constitute statutory accounts
within the meaning of the Companies Act 2006. Statutory financial
statements for the year ended 31 March 2022 were approved by the
Board of Directors on 6 September 2022. The auditor's report on
those financial statements was unmodified.
Risks and uncertainties
During the period under review the principal risks and
uncertainties did not substantially change from those set out in
the audited financial statements for the year ended 31 March 2022,
which are as follows. It should be noted that the list is not
exhaustive and other risk factors not presently known or currently
deemed immaterial may apply. The risk factors are summarised
below:
Business Strategy
The Company has no operating history (other than the provision
of consultancy services to Greenview) and has not yet acquired a
business. The Company may not be able to complete the acquisition
of the Amcomri Group in a timely manner or at all , and if it does
not it may not be able to find a suitable alternative target and/or
meet the costs of acquiring an alternative target business or fund
the operations of such an alternative if it does not obtain
additional funding . If the Company acquires less than either the
whole voting control of, or less than the entire equity interest
in, a target company or business, its ability to influence the
strategy of the target may be limited and third party minority
shareholders may dispute any strategy the Company may have decided
to pursue.
Funding an Acquisition
As noted, above, if the Company is unable to complete the
acquisition of the Amcomri Group, further funds may be needed in
order to complete the acquisition of an alternative target business
once it has been identified. The Company may therefore need to seek
additional equity or debt financing to complete a transaction and
may be unsuccessful in attempting to do so.
Retention of Key Personnel
The Company is dependent on Directors to pursue the acquisition
of the Amcomri Group and manage the acquisition and readmission
process and, if that acquisition is not completed, to assess
potential acquisition opportunities that have been identified by
the Directors or Cordovan Capital Management Limited (or any other
corporate finance adviser appointed in place of Cordovan). The loss
of the services of any of the Directors could materially adversely
affect its ability to implement its business strategy, thereby
having a material adverse effect on its financial condition and
result of operations.
Accounting Policies
Critical accounting estimates and judgements
The preparation of the interim financial statements requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the end of the reporting
period. Due to the nature of the Company, the Directors do not
believe there to be any material critical accounting estimates and
judgements that were used in preparing these interim financial
statements.
Changes in accounting policy and disclosures.
There are no new standards or amendments to standards adopted
for the first time during the period which have had a material
impact on the Company .
Going Concern
The Company has cash resources which are currently sufficient to
meet its expected outgoings in the coming 12 month period. The
Company therefore continues to adopt the going concern basis in
preparing the Interim Report for the period ended 30 September
2022.
Borrowings
Borrowings are recognised initially at fair value, net of
transaction costs incurred. Borrowings are subsequently carried at
amortised cost; any difference between the proceeds (net of
transaction costs) and the redemption value is recognised in the
income statement over the period of the borrowings, using the
effective interest method.
Fees paid on the establishment of loan facilities are recognised
as transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down. To the extent
that there is no evidence that it is probable that some or all of
the facility will be drawn down, the fee is capitalised as a
prepayment for liquidity services, and amortised over the period of
the facility to which it relates.
Borrowings are removed from the balance sheet when the
obligation specified in the contract is discharged, cancelled or
expired. The difference between the carrying amount of a financial
liability that has been extinguished or transferred to another
party and the consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in profit or loss
as other income or finance costs.
Borrowings are classified as current liabilities, unless the
Company has an unconditional right to defer settlement of the
liability for at least 12 months after the end of the reporting
period.
3. Operating Segments
For the purpose of IFRS 8, the Chief Operating Decision Maker
"CODM" takes the form of the Board of directors. The Directors are
of the opinion that the business of the Company comprises a single
activity, being the identification and acquisition of target
companies or businesses in Northern Ireland or elsewhere. As such
the financial information of the segment is the same as that set
out in the statement of comprehensive income, the statement of
financial position, the statement of changes in equity and the
statement of cash flows.
4. Dividends
No dividend has been declared or paid by the Company during the
six months ended 30 September 2022 (six months ended 30 September
2021: GBPnil).
5. Earnings per share
The calculation of earnings per share is based on the loss for
the six-month period to 30 September 2022 from continuing
operations of GBP( 77,746 ) divided by the number of ordinary
shares in issue during the period of 12,725,003.
There are no potential dilutive shares in issue.
6. Trade and other receivables
30 September 31 March 2022
2022
GBP GBP
Other receivables 4,167 -
- VAT
Total 4,167 -
The fair value of all receivables is the same as their carrying
values stated above.
At 30 September 2022 all receivables were fully performing, and
therefore do not require impairment.
The maximum exposure to credit risk at the reporting date is the
carrying value mentioned above.
7. Trade and other payables
30 September 2022 31 March 2022
GBP GBP
Trade and other payables 26,178 186,325
Corporation Tax 22,439 -
Total 48,617 186,325
8. Borrowings
30 September 31 March 2022
2022
GBP GBP
Director Loan 0 62,226
Danske Bank COVID Bounce
Back Loan 23,000 26,000
Total 23,000 88,226
30 September 31 March 2022
2022
GBP GBP
Current Liability 6,000 68,619
Non-current Liability 17,000 19,607
Total 23,000 88,226
Bank Borrowings
COVID Bounce Back Loan: Bank borrowings comprise a Bounce Back
Loan Scheme loan from Danske Bank received in July 2020 for
GBP30,000, repayable over 6 years at 2.5% per annum. There was a
12-month capital repayment holiday and the Government cover the
first year's interest up to a maximum of GBP812.40.
Other loans
Director Loan: On 16 April 2020, the Company entered into a
GBP50,000 secured term facility agreement with M Irvine for the
purpose of providing working capital to Rockpool, with interest at
10% per annum. This was repaid in full, with accrued interest, on 3
August 2022.
The fair value of current borrowings equals their carrying
amount.
The carrying amounts of the Company's borrowings are denominated
in UK Pounds.
9. Related party transactions
R Beresford, M Irvine and N Adair entered into letters of
appointment with the Company dated 7 July 2017 to act as
non-executive directors of the Company with effect from 21 March
2017. Cordovan Capital is entitled to a director's fee of GBP12,000
per annum for the provision of M Irvine's services. A total of
GBP7,200 (30 September 2021: GBP7,200) was charged to the Company
by Cordovan during the period inclusive of VAT, of which GBP 6,000
remains outstanding at the period end . R A D Beresford is entitled
to a director's fee of GBP12,000 per annum for the provision of his
services. A total of GBP6,000 (30 September 2021: GBP6,000) was
charged to the Company during the period, of which GBP6,000 remains
outstanding at the period-end . Neil Adair is entitled to a
director's fee of GBP12,000 per annum for the provision of his
services. A total of GBP7,200 (30 September 2021: GBP7,200) was
charged to the Company by Neil Adair during the period inclusive of
VAT, of which GBP 2,400 remains outstanding at the period - end
.
McCarthy Denning Limited, a company in which R A D Beresford is
Chairman and shareholder, has continued to provide legal services
to the Company during the period. R A D Beresford is also the sole
shareholder of Slievemara Consulting Limited, a company through
which he provides his services as a lawyer to McCarthy Denning.
Slievemara Consulting Limited is entitled to receive approximately
25 per cent of all fees received from the Company by McCarthy
Denning and, in addition, 50 per cent of any fees paid by the
Company to McCarthy Denning in respect of work that R A D Beresford
undertakes personally.
A total of GBP 19,536 (30 September 2021: GBPnil) was charged to
the Company during the period inclusive of VAT in respect of legal
services. The amount due to McCarthy Denning as at 30 September
2022 amounted to GBP 1,864 (30 September 2020: GBP33,151).
10. Ultimate controlling party
The Directors consider there to be no ultimate controlling party
as at 30 September 2022.
11. Events after the reporting date
There have been no events after the reporting date of a material
nature.
12. Approval of the Interim Report
The Interim Report, which includes the interim financial
statements, were approved by the Board of Directors on 22 December
2022.
For further information:
Rockpool Acquisitions Plc
Mike Irvine, Non-Executive Director Tel: +44 (0)28 9044 6733
Neil Adair, Non-Executive Director http://rockpoolacquisitions.plc.uk
Richard Beresford, Non-Executive Chairman
Shard Capital (Broker)
Damon Heath / Erik Woolgar Tel: +44 (0)20 7186 9952
Abchurch (Financial PR)
Abchurch Communications Tel: +44 (0)20 7459 4070
Julian Bosdet +44 (0)7771 663 886
Julian.bosdet@abchurch-group.com www.abchurch-group.com
- Ends -
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