TIDMDRUM 
 
16 September 2022 
 
                                  Drumz plc 
 
                          ('Drumz' or the 'Company') 
 
                        Interim Results to 30 June 2022 
 
CHAIRMAN'S STATEMENT 
 
I am pleased to present the Company's Interim Results for Drumz, which is 
focused on investment in the technology sector, for the six months ended 30 
June 2022. 
 
Results and performance 
 
The Group's results for the six months ended 30 June 2022 showed revenue of £ 
30,000 (2021: £18,000) and an operating loss of £184,000 (2021: loss of £ 
261,000). 
 
At 30 June 2022 the two principal assets of the Group continue to be its 
holding in Acuity Risk Management Limited ("Acuity"), an award-winning business 
specialising in risk management and cybersecurity; and its legacy holding in 
KCR Residential REIT plc ("KCR"), a company listed on AIM, which owns property 
in the private rented residential sector. 
 
Acuity's principal product is STREAMT, which is used by private and public 
sector clients to manage their cyber security and other enterprise risks. 
Acuity is in a sector where customer demand is exceptionally strong, as more 
businesses seek to protect their data for financial, reputational and 
regulatory reasons. Acuity continues to perform well and showed a 26 per cent 
increase in turnover for the year ended 31 March 2022. 
 
In line with current accounting practice, Drumz's investment in Acuity is shown 
at cost and therefore does not reflect the improvement in valuation that its 
growing turnover would suggest. Demand for Acuity's proprietary software 
continues to grow and further details of the progress achieved by the company 
are set out in the Chief Executive's Report. 
 
The share price performance of KCR, our legacy investment, in the six months 
ended 30 June 2022 continued to be disappointing. The value of Drumz's holding 
in KCR at 30 June 2022 was £317,000 (31 December 2021: £390,000), which 
represents a further book loss on this investment of £73,000 (2021: loss of £ 
183,000).  I am however, pleased to report that in recent weeks the KCR share 
price has improved somewhat and at the date of this announcement, the book loss 
suffered in the first half has been reduced by approximately £50,000. 
 
The Group's loss before and after taxation amounted to £184,000 (2021: £ 
261,000). The basic and diluted loss per share amounted to 0.04p (2020: loss 
0.08p). No dividend has been declared. 
 
At 30 June 2022 the Group had cash resources of £413,000 (2021: £380,000) and 
shareholders' funds of £1,374,000 (2021: £1,276,000). 
 
Board 
 
In June 2022 we welcomed Nick Clark to the Board as a non-executive Director. 
Nick is a significant shareholder in Drumz and a successful smaller companies 
investor. His skill set is in buying and investing in technology companies and 
he has already made a significant contribution in identifying possible 
acquisition targets. 
 
Outlook 
 
We continue to be pleased with the progress at the award-winning Acuity.  The 
improvement in the number and the quality of the sales leads Acuity is now 
generating is a growing testament to the progress that has been made and bodes 
well for the future. We continue to look for new investment opportunities and I 
would like to take this opportunity to thank my colleagues and our shareholders 
for their continued support. 
 
Simon Bennett 
 
Chairman 
 
16 September 2022 
 
Chief Executive's Report 
 
Existing portfolio 
 
Acuity Risk Management Limited ("Acuity") 
 
As outlined in the annual results, the commercial team at Acuity was 
strengthened in 2021 and revenue growth accelerated in the second half of the 
year.  I am encouraged to report that revenues in the year to 31 March 2022 
showed an increase of 26 per cent at £1.55 million (2021: £1.23 million). This 
growth has continued into the current year. 
 
New appointments to the management team continue and I look forward to 
reporting on progress made in Acuity's existing markets in the coming 
months.  Other important developments at Acuity include: 
 
(a) Gartner identifying Acuity's product STREAM and Gartner's peer insights 
identifying STREAM as one of the top four cyber risk products in the world; and 
further 
 
(b) G2.com the world's largest and most trusted tech marketplace for software, 
named Acuity (1) a Leader in 'IT Risk Management Software', (2) High Performer 
in 'Audit Management Software' and (3) number two for Quality of Support; and 
 
(c) the expansion of distribution channels by the recruitment of well-connected 
VARs in the UK and North America. 
 
We believe that these and other developments will enable substantial advances 
to be made in the coming months. 
 
KCR Residential REIT plc ("KCR") 
 
The management of KCR has taken steps to improve cash flow, but the share price 
continues to disappoint. We continue to look for opportunities to realise this 
non-core asset. 
 
New opportunities 
 
We have identified several interesting target businesses during the period and 
made a number of proposals to acquire them, which would have turned Drumz from 
an investment company to a trading company.  To date we have not been able to 
agree terms, but the Board considers that in the current economic climate that 
there will be opportunities which offer good value for Drumz and its 
shareholders. 
 
Outlook 
 
We are pleased with developments at Acuity where the contributions Drumz has 
made to the business has helped to grow its value.  There remain major 
opportunities to grow shareholder value and achieve returns at Acuity and I 
look forward to reporting on further progress this year. 
 
Angus Forrest 
 
Chief Executive 
 
For further information please 
contact: 
 
Drumz Plc                              www.drumzplc.com 
 
Angus Forrest                          +44 (0) 20 3582 0566 
 
WH Ireland (NOMAD & Broker)            www.whirelandcb.com 
 
Mike Coe / Sarah Mather                +44 (0) 20 7220 1666 
 
Peterhouse Capital Limited (Joint 
broker) 
 
Lucy Williams / Duncan Vasey           +44 (0) 20 7469 0936 
 
Condensed consolidated statement of comprehensive income 
 
                                                               Unaudited Unaudited  Audited 
                                                                6 months  6 months  year to 
                                                                   to 30     to 30       31 
                                                               June 2022 June 2021 December 
                                                                                       2021 
 
                                                          Note     £'000     £'000    £'000 
 
Continuing operations 
 
Revenue                                                               30        18       44 
 
Cost of sales                                                          -         -        - 
 
Gross profit                                                          30        18       44 
 
Administrative expenses                                            (141)     (133)    (283) 
 
Operating loss                                             5       (111)     (115)    (239) 
 
Loss on investments                                                 (73)     (146)    (183) 
 
Loss before and after taxation                             5       (184)     (261)    (422) 
 
Loss for the period attributable to shareholders of the            (184)     (261)    (422) 
company 
 
Total comprehensive income attributable to shareholders            (184)     (261)    (422) 
of the company 
 
Earnings per share 
 
Basic and diluted earnings per share from total and        4     (0.04)p   (0.08)p  (0.12)p 
continuing operations 
 
 
Diluted earnings per share is taken as equal to basic earnings per share as the 
Company is loss making and the average share price during the period is lower 
than the exercise price and therefore the effect of including share options is 
anti-dilutive. 
 
Condensed consolidated statement of financial position 
 
                                                              Unaudited Unaudited Audited as 
                                                               as at 30  as at 30      at 31 
                                                              June 2022 June 2021   December 
                                                                                        2021 
 
                                                         Note     £'000     £'000      £'000 
 
ASSETS 
 
Non-current assets 
 
Investments at fair value through profit or loss          6         942       927      1,015 
 
                                                                    942       927      1,015 
 
Current assets 
 
Trade and other receivables                                          34        20         23 
 
Cash and cash equivalents                                           413       380        561 
 
                                                                    447       400        584 
 
Total assets                                                      1,389     1,327      1,599 
 
LIABILITIES 
 
Current liabilities 
 
Trade and other payables                                             15        51         52 
 
Total liabilities                                                    15        51         52 
 
Net assets                                                        1,374     1,276      1,547 
 
EQUITY 
 
Share capital                                                     2,688     2,613      2,688 
 
Share premium account                                             8,385     8,039      8,385 
 
Share option reserve                                                 41        19         30 
 
Convertible loan                                                      -        88          - 
 
Merger reserve                                                    1,012     1,012      1,012 
 
Retained earnings                                              (10,752)  (10,495)   (10,568) 
 
Total equity attributable to shareholders of the company          1,374     1,276      1,547 
 
Condensed consolidated statement of changes in equity 
 
                                         Share    Share 
 
                              Share    premium   option Convertible  Merger  Retained  Total 
 
                             capital   account  Reserve        loan reserve  earnings equity 
 
                               £'000     £'000    £'000       £'000   £'000     £'000  £'000 
 
Balance at 1 January 2021      2,613     8,039       __          88   1,012  (10,234)  1,518 
 
Total comprehensive profit         -         -       __           -       -     (261)  (261) 
 
Share option reserve              __        __       19          __      __        __     19 
 
Balance at 30 June 2021        2,613     8,039       19          88   1,012  (10,495)  1,276 
 
Total comprehensive loss           -         -      __-        (88)       -      (73)  (161) 
 
Issue of shares net of costs      75       346                                           421 
 
Share option reserve              __        __       11          __      __        __     11 
 
Balance at 31 December 2021    2,688     8,385       30          __   1,012  (10,568)  1,547 
 
Total comprehensive loss           -         -        -           -       -     (184)  (184) 
 
Share option reserve              __        __       11          __      __        __     11 
 
Balance at 30 June 2022        2,688     8,385       41          __   1,012  (10,752)  1,374 
 
Condensed consolidated statement of cash flows 
 
                                                             Unaudited  Unaudited  Audited 
                                                              6 months   6 months  year to 
                                                                 to 30 to 30 June       31 
                                                             June 2022       2021 December 
                                                                                      2021 
 
                                                                 £'000      £'000    £'000 
 
Cash flows from operating activities 
 
(Loss)/profit before taxation                                    (184)      (261)    (422) 
 
Adjustments for: 
 
Fair value adjustment for listed investments                        73        146      183 
 
Share option reserve                                                11         19       30 
 
Changes in working capital: 
 
- (Increase)/decrease in trade and other receivables              (11)        (6)      (9) 
 
- (Decrease)/increase in trade and other payables                 (37)        (9)      (8) 
 
Net cash used in operating activities                            (148)      (111)    (226) 
 
Cash flows from investing activities 
Purchase of investments                                                              (125) 
Cash flows from financing activities 
Cash raised through issue of shares (net of transaction                                421 
costs) 
 
Net increase (decrease) in cash and cash equivalents             (148)      (111)       70 
 
Cash and cash equivalents at beginning of period                   561        491      491 
 
Cash and cash equivalents at end of period                         413        380      561 
 
1. Nature of operations and general information 
 
The principal activity of the Company is investing in technology companies, 
which offer value creation opportunities over the short and medium term. 
 
The Company is incorporated and domiciled in the United Kingdom. The address of 
Drumz plc's registered office is Burnham Yard, London End, Beaconsfield, 
Buckinghamshire, HP9 2JH. 
 
Drumz plc's shares are listed on AIM, a market operated by the London Stock 
Exchange. The condensed consolidated interim financial report was approved for 
issue by the Board of Directors on 16 September 2022. 
 
The financial information set out in this interim financial report does not 
constitute statutory accounts as defined in Sections 434(3) and 435(3) of the 
Companies Act 2006. The Company's statutory financial statements for the year 
ended 31 December 2021 have been filed with the Registrar of Companies and are 
available at www.drumzplc.com. The auditor's report on those financial 
statements was unqualified and did not contain any statement under Section 498 
(2) or Section 498(3) of the Companies Act 2006. 
 
2. Basis of preparation 
 
The condensed consolidated interim financial report has been prepared in 
accordance with the requirements of the AIM Rules for Companies. As permitted, 
the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in 
preparing this interim financial information. The condensed consolidated 
interim financial statements should be read in conjunction with the annual 
financial statements for the year ended 31 December 2021. The interim financial 
statements have been prepared in accordance with International Financial 
Reporting Standards (IFRSs) as adopted by the United Kingdom which have not 
differed from the previously EU-endorsed IFRS, and hence the previously 
reported accounting policies still apply. 
 
The Directors believe that whilst the impact of COVID-19 appears to be reducing 
there is still significant uncertainty as to what foreseen or unforeseen action 
or actions the Company may be required to take in order to respond to any 
circumstances that may arise in the future. They have considered the possible 
impact of COVID-19 on Drumz and its business activities, which are now 
increasingly focussed on software businesses, many businesses in the software 
sector can be operated remotely in a virtual environment which should reduce 
the impact of COVID-19 on their activities. 
 
Going concern 
 
The Directors, having made appropriate enquiries, consider that adequate 
resources exist for the Company and Group to continue in operational existence 
for the foreseeable future and that, therefore, it is appropriate to adopt the 
going concern basis in preparing the condensed consolidated interim financial 
statements for the period ended 30 June 2022. 
 
Risks and uncertainties 
 
The Board continuously assesses and monitors the key risks of the business. The 
key risks that could affect the Group's medium-term performance and the factors 
that mitigate those risks have not substantially changed from those set out in 
the Company's 2021 Annual Report and Financial Statements, a copy of which is 
available on the Company's website: www.drumzplc.com. 
 
Critical accounting estimates 
 
The preparation of condensed consolidated interim financial report requires 
management to make estimates and assumptions that affect the reported amounts 
of assets and liabilities at the end of the reporting period. Significant items 
subject to such estimates are set out in the Company's 2021 Annual Report and 
Financial Statements. The nature and amounts of such estimates have not changed 
significantly during the interim period. 
 
3. Accounting policies 
 
Except as described below, the same accounting policies, presentation and 
methods of computation have been followed in these condensed consolidated 
interim financial statements as were applied in the preparation of the Group's 
annual financial statements for the year ended 31 December 2021. 
 
3.1 Changes in accounting policy and disclosures 
 
(a) Accounting developments during 2022 
 
The International Accounting Standards Board (IASB) issued various amendments 
and revisions to International Financial Reporting Standards and IFRIC 
interpretations. The amendments and revisions were applicable for the period 
ended 30 June 2022 but did not result in any material changes to the financial 
statements of the Group or Company. 
 
(b)  New standards, amendments and interpretations in issue but not yet 
effective or not yet endorsed and not early adopted 
 
Standard           Impact on initial application          Effective date 
 
IAS 8              Accounting estimates                   1 January 2023 
 
IAS 1              Classification of Liabilities as       1 January 2023 
                   Current or Non-Current. 
 
IAS 1              Disclosure of Accounting Policies      1 January 2023 
 
The Group is evaluating the impact of the new and amended standards above which 
are not expected to have a material impact on the Group's results or 
shareholders' funds. 
 
4. Loss per ordinary share 
 
The loss per ordinary share is based on the weighted average number of ordinary 
shares in issue during the period of 419,822,048 ordinary shares of 0.1p (2021: 
351,072,048 ordinary shares of 0.1p) and the following figures: 
 
                                                                 Unaudited Unaudited Audited 
                                                                 6 months  6 months  year to 
                                                                 to 30     to 30     31 
                                                                 June 2022 June 2021 December 
                                                                                     2021 
 
Loss attributable to equity shareholders £'000                   (184)     (261)     (422) 
 
Loss per ordinary share                                          (0.04)p   (0.08)p   (0.12)p 
 
Diluted loss per share is taken as equal to basic earnings per share as the 
Company's average share price during the period is lower than the exercise 
price and therefore the effect of including share options is anti-dilutive. 
 
5. Income and segmental analysis 
 
There is one operating segment. 
 
The activity of both the investments is based mainly in the United Kingdom. 
 
6. Investments 
 
The Company made investments as follows during the years ended 31 December: 
 
2018 It acquired 2,435,710 shares in KCR Residential REIT PLC, an AIM listed 
real estate investment trust specialising in the acquisition and management of 
rented residential portfolios in the UK. 
 
In 2020 it invested £500,000 for a 20% holding in Acuity Risk Management 
Limited.  In September 2021 Drumz exercised its option and invested a further £ 
125,000 in Acuity Risk Management Limited, increasing the holding to 25%. 
 
Investments 
 
                                                                                           £'000 
 
Cost 
 
At 1 January 2022                                                                          2,330 
 
At 30 June 2022                                                                            2,330 
 
Fair value losses 
 
At 1 January 2022                                                                        (1,315) 
 
Change in fair value recognised in profit and loss                                          (73) 
 
At 30 June 2022                                                                          (1,388) 
 
Fair Value 
 
At 30 June 2022                                                                              942 
 
At 31 December 2021                                                                        1,015 
 
Fair value hierarchy 
 
In accordance with IFRS 7, financial instruments are measured by level of the 
following fair value measurement hierarchy: 
 
Level 1: quoted prices in an active market for identical assets or liabilities. 
The fair value of financial instruments traded in active markets is based on 
quoted market prices at the balance sheet date. A market is regarded as active 
if quoted prices are readily and regularly available and those prices represent 
actual and regularly occurring market transactions on an arm's-length basis. 
The quoted market price used for financial assets held by the Group is the 
closing price on the last day of the financial year of the Group. These 
instruments are included in level 1 and comprise FTSE and AIM-listed 
investments classified as held at fair value through profit or loss. 
 
Level 2: the fair value of financial instruments that are not traded in an 
active market is determined by using valuation techniques. These valuation 
techniques maximise the use of observable market data where it is available and 
rely as little as possible on entity-specific estimates. If all significant 
inputs required to fair value an instrument are observable, the instrument is 
included in level 2. 
 
Level 3: the fair value of financial instruments that are not traded in an 
active market (for example, investments in unquoted companies) is determined by 
using valuation techniques such as earnings multiples. If one or more of the 
significant inputs is not based on observable market data, the instrument is 
included in level 3. 
 
There have been no transfers between these classifications in the period (2021: 
none). The change in fair value for the current and previous years is 
recognised through profit or loss. 
 
All assets held at fair value through profit or loss were designated as such 
upon initial recognition. 
 
7. Post balance sheet events 
 
There are none. 
 
 
 
END 
 
 

(END) Dow Jones Newswires

September 16, 2022 02:00 ET (06:00 GMT)

Energiser Investments (LSE:ENGI)
過去 株価チャート
から 2 2024 まで 3 2024 Energiser Investmentsのチャートをもっと見るにはこちらをクリック
Energiser Investments (LSE:ENGI)
過去 株価チャート
から 3 2023 まで 3 2024 Energiser Investmentsのチャートをもっと見るにはこちらをクリック