Logistics Development Group plc
Interim Results for six months ended 31 May 2022
Logistics Development Group plc, the AIM-quoted investing company, announces its unaudited interim results for the six months ended 31 May 2022.
Summary for the reporting period
- On 9 December 2021, Peter Nixon, an experienced chartered accountant, was appointed to the Board as a non-executive director and member of the Audit Committee and Remuneration Committee, replacing Saki Riffner who resigned on the same date.
- On 14 January 2022, the Company received an interim dividend distribution of £2.2m from Marcelos Limited which reflected expected final value in the Marcelos Limited investment at the time, and as a result the Company’s investment in Marcelos Limited was revalued to £nil (see Subsequent events section and Note 2 regarding dividend receipts from Marcelos Limited).
- On 22 February 2022, following a special resolution by shareholders at the General Meeting, the Company underwent a capital reduction whereby the share premium was reduced to £nil. Subsequent to the capital reduction, the Company commenced a share buyback programme. During March and April 2022, the Company repurchased a total of 140,441,180 ordinary shares in the market and thereafter these shares were cancelled.
- It was announced on 10 March 2022 that 1,000,000 ordinary shares had been acquired in CareTech Holdings PLC (“CareTech”). An additional 974,130 ordinary shares in CareTech were purchased on 10 March 2022 and so as at 31 May 2022 the Company held, via its wholly owned subsidiary Fixtaia Limited, 1,974,130 shares in CareTech.
- On 4 April 2022 the Company announced that DBAY Advisors Limited (“DBAY”), the Company’s investment manager, had made an indicative proposal to CareTech regarding a possible all cash offer for CareTech at 750 pence per CareTech share (the “Possible Offer”). The Possible Offer announcement was released further to the PUSU deadline being extended in relation to a possible offer by a consortium formed by Sheikh Holdings Group (Investments) Limited (“Sheikh Holdings”) at 725 pence per CareTech Share, as announced on 1 April 2022. Sheikh Holdings announced its possible offer on 7 March 2022.
- As at the period end, the Company revalued its CareTech investment held in Fixtaia Limited to £29.7m (thus incurring a £0.3m loss) to reflect the fair value of Fixtaia Limited, based on a CareTech share price on 31 May 2022 of 705 pence.
- On 27 June 2022, Amalfi Bidco Limited (a consortium formed by Sheikh Holdings) announced a recommended cash offer (with a partial rollover alternative) for CareTech, at a price of 750 pence per CareTech share, with a Court Meeting and General Meeting in respect of the Scheme of Arrangement expected to be held on 8 September 2022.
- Underlying loss before tax1 for the period was £0.8m (2021: profit £21.5m) before exceptional items of £nil (2021: £0.1m). Statutory loss before tax was £0.8m (2021: profit £21.6m). The significant decrease in profitability was due to a small loss on investments at fair value in the current reporting period being compared to a significant comparative period gain on investment at fair value following the sale of Marcelos’ investment in GreenWhiteStar Acquisitions Limited (“GWSA”).
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