Category Archives: AIM Rule 26

Interim Report & Financial Statements

Scholium Group plc

Interim Report & Financial Statements

15 December 2014

Scholium Group plc (“Scholium” or the “Company” or, together with its subsidiaries, the “Group”) is pleased to present its interim report and financial statements for the six months ended 30 September 2014.  The Group is involved in the trading of rare and collectible items.

Operational Highlights

·     Important and high quality stock acquired by Shapero Rare Books to drive sales for the principal selling season in the second half of the financial year

·     Launch of Shapero Modern, the modern and contemporary prints gallery within Shapero Rare Books

·     Trade commencement and development of the Scholium Trading proposition

·     Continued performance of South Kensington Books and accelerated growth of Ultimate Library

Financial Highlights

·     Revenue of £2.80 million (2013: £2.74 million)

·     Gross Profit of £1.14 million (2013: £1.16 million)

·     EBITDA of -£0.18 million (2013: £0.27 million)

·     Stock of £6.60 million (2013: £3.9 million)

·     NAV/Share of 77.49p1

·     Interim dividend of 0.5p per ordinary share payable to shareholders on the company’s register on 16 January 2015.

1Based on the currently issued share capital

Commenting on the interim results Philip Blackwell, Chief Executive of the Group, noted “We have spent the first six months of our financial year acquiring new stock, using much of the sum raised on flotation in March this year and executing our strategy. Shapero has significantly increased its range of high quality stock which puts it in a strong position for the significant selling season which occurs in the second half of the financial year. The new Scholium Trading business has launched and made its first acquisitions and our Kensington operations continue to perform strongly.”

For further information, please contact:

Scholium Group plc

Philip Blackwell, Chief Executive Officer

Simon Southwood, Chief Financial Officer

+44 (0)20 7493 0876

WH Ireland Ltd – Nominated Adviser

Chris Fielding / Mark Leonard

+44 (0)20 7220 1666

Whitman Howard Ltd – Broker

Ranald McGregor-Smith / Niall Devins

+44 (0)20 7087 4550

 

Business Review

Scholium Group companies are involved primarily in the trading and retailing of books and other works on paper, as well as dealing in rare and collectible items in the wider art market.

The group of businesses comprises:

•              Shapero Rare Books, a dealer in rare and antiquarian books and works on paper, located in Mayfair, London;

•              South Kensington Books, a bookshop specialising primarily in art, and its sister business, Ultimate Library, which creates bespoke libraries for luxury hotels and private residences; and

•              Scholium Trading, a company set up to trade in conjunction with other dealers in high value rare and collectible items.

Revenue Streams

The Group earns revenue from:

•              the sale of rare books and works on paper through Shapero Rare Books;

•              the sale of art books and literature through South Kensington Books;

•              the sale of whole collections and libraries through Ultimate Library; and

•              the sale of other rare and collectible items through Scholium Trading.

Key objectives and key performance indicators (KPIs)

The Group’s strategy is to:

•              increase the antiquarian  stock and trade of Shapero Rare Books and broaden the product mix into Modern prints;

•              invest in developing Scholium Trading – a company created to trade alongside other dealers in high value rare and collectible items and participate in the acquisition for sale of large consignments; and

•              accelerate the growth of the South Kensington Books and Ultimate Library brands; the latter concomitant with the development of international hospitality groups and the demand for premium property in Central London.

The directors intend to provide an attractive level of dividends to shareholders along with stable asset-backed growth driven by the markets in which the Group operates.

Our current principal KPIs are:

•              gross margin, EBITDA, earnings per share;

•              the breadth and distribution of the stock of assets held by the Group;

•              stock turnover of assets; and

•              various key risk indicators including capital resources, portfolio allocation and cash.

Performance Review

Overall Performance

The table below illustrates performance for the first six months of our financial year.  Overall, revenue has increased, gross margin on owned stock has increased, but due to the change in mix between commission and owned stock the gross margin of the Group has decreased.  The restocking exercise of Shapero Rare Books has been continuing apace and the business is in a good position for the second half of the financial year, which contains the main selling season.  Costs have increased – primarily to manage the enhanced stock levels and due to the increased overhead of the AIM listing.  The balance sheet remains strong with a very high level of asset backing.  Our challenge is to justify the increased overhead by converting the increased stock into profitable sales in the second half of the financial year.

Figure 1.:          Overall Performance (all figures £,000 unless otherwise noted)

Six months ended September

2014

2013

Variance

Revenue

 2,798

 2,739

2.2%

Gross Profit

 1,142

 1,161

-1.6%

Gross Margin

41%

42%

-2.4%

Direct Costs

(168) 

(159) 

5.7%

Administration Costs

(1,184) 

(767) 

54.4%

EBITDA

(184) 

269

-168.4%

Stock

6,605

3,880

70.2%

Cash

2,754

50

Net Asset Value

10,538

1,274

NAV/Share

77.49p

Shapero Rare Books

Whilst activity at Shapero Rare Books in the first six months of the financial year has been slightly quieter than anticipated, the focus of the business has been to position itself strongly for the major selling season which runs in the second half of the financial year, culminating with The European Fine Art Fair in March.  Consistent with these goals, Shapero Rare Books has increased its stock significantly to approximately £6.3 million at 30 September 2014 (2013: £3.8 million) with a number of noteworthy acquisitions.  As expected with the move to more expensive, higher quality stock, the margin on sales of owned stock increased to approximately 37.6% (2013: 34.8%). Shapero Rare Books has also become more active in the sale of modern prints.

Figure 2.:          Shapero Rare Books KPIs (all figures £,000 unless otherwise noted)

Six months ended September

Variance

Revenue

2014

2013

Own Stock

  2,370

  2,207

 7.4%

Commission

 25

 240

-89.6%

  2,395

 2,447

 -2.1%

Gross Profit

Own Stock

  890

 769

 15.7%

Commission

 25

 240

-89.6%

 915

  1,009

-9.3 %

Gross Margin

Own Stock

37.6%

 34.8%

Own stock + Commission

38.2%

 41.2%

EBITDA

-1

 239

–100.4%

Stock Value

 6,274

 3,779

66.0%

The most significant variance during the period under review was the absence of a one-off commission that the business earned during the first half of the financial year of 2013 on the final sale of a large consignment of books.  The cost base of Shapero Rare Books has increased to reflect the increased purchasing activity and anticipated sales activity in the second half of the financial year.

Whilst stock turnover for the period is lower, this is in large part due to the rapid growth in stock; and positions the business strongly for the second half of the financial year.

South Kensington Operations

Our South Kensington operations have shown accelerated growth in sales, margin and profitability and are strongly cash positive. Increased footfall has helped retail sales and some high profile hotel contract wins, both in London and overseas, have also driven sales.

Figure 3.:          South Kensington Operations Summary (all figures £,000 unless otherwise noted)

South Kensington Operations

Six months ended September

Growth

Revenue

2014

2013

South Kensington Bookshop

 276

 259

6.6%

Ultimate Library

 116

 33

251.5%

 392

 292

34.2%

Gross Profit

  217

  149

 45.6%

Gross Margin

55%

51%

EBITDA

 60

 30

 100%

Trade in the bookshop showed 6% year-on-year growth and we were most encouraged by growth in orders to Ultimate Library.

Scholium Trading

The first half of the year was productive for Scholium Trading. Although this activity began more slowly than anticipated, it has been pleasing to note that the stock turn on trades completed has been better than expected. Scholium Trading earned its first profit in the period under review, with a return of 10% over a period of 2 months. Since the period end, two further profitable sales have been completed. Having spent considerable time developing relationships with dealers, we are seeing increased activity in the second half of the year with some material propositions for acquiring significant collections.

Financial Position and Cashflow

On 30 September 2014 the Group had a strong balance sheet – £2.75 million of cash (30 September 2013: £0.05 million) and a further £6.6 million of stock (30 September 2014: £3.9 million) supported Gross Assets of £11.5 million (30 September 2013: £5.6 million).  The company had no debt; all working capital facilities provided by the group’s shareholders in 2012 and 2013 were repaid over the period (a total amount of £0.53 million).

Outlook

Whilst sales to date have been slightly lower than hoped for, the overall result for our financial year is heavily influenced by the outcome of sales in the final quarter, which culminates in The European Fine Art Fair, where, traditionally, a significant proportion of the Group’s sales are made. Given the high levels of quality stock and a firm pipeline of selling opportunities, the Directors are confident, if certain high value items are successfully sold before the end of March 2015, that market forecasts will be achieved.

Dividend

Based on the directors’ assessment of the prospects for the year as a whole, the Company will pay an interim dividend of 0.5p to shareholders on the Company’s register on 16 January 2015.

Key Risks

Like all businesses, the Group faces risks and uncertainties that could impact on the Group’s strategy. The Board recognizes that the nature and scope of these risks can change and regularly reviews the risks faced by the Group and the systems and processes to mitigate such risks.

The principal risks and uncertainties affecting the continuing business activities of the Group were outlined in detail in the Strategic Report section of the annual report covering the year ended 31March 2014.

In preparing this interim report for the six months ended 30 September 2014, the Board has reviewed these risks and uncertainties and considers that there have been no changes since the publication of the 2014 Annual Report.

Philip Blackwell

12 December 2014

Independent Review Report to Scholium Group plc

Introduction

We have been engaged by the company to review the condensed set of financial statements in the interim report for the six months ended 30th September 2014 which comprises the condensed consolidated statement of comprehensive income, the consolidated statement of changes in equity, the condensed consolidated statement of financial position and the consolidated statement of cash flows and the related explanatory notes.  We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with the terms of our engagement.  Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.

Directors’ Responsibilities

The interim report is the responsibility of, and has been approved by, the directors.  The directors are responsible for preparing the interim report in accordance with the AIM rules.

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the EU.  The condensed set of financial statements included in this interim report has been prepared in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU.

Our Responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the interim report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK.  A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.  Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim report for the six months ended 30th September 2014 is not prepared, in all material respects, in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU and the AIM rules.

A K Bahl BA FCA

For and on behalf of

Wenn Townsend Chartered Accountants

Oxford, United Kingdom

12 December 2014



Consolidated statement of comprehensive incomefor the six-month period ended 30 September 2014 (unaudited)

Six-month period

 ended

Six-month period

 ended

Year 

ended  

30 September

30 September

31 March

2014

2013

2014

Note

£000

£000

£000

Revenue

3

2,798

2,739

6,733

Cost of sales

(1,656)

(1,578)

(3,954)

Gross profit

1,142

1,161

2,779

Distribution expenses

(168)

(159)

(423)

Administrative expenses

(1,184)

(767)

(1,802)

Exceptional items:

Share-based payment schemes

(19)

(385)

IPO expenses

(228)

Total administrative expenses

(1,203)

(767)

(2,415)

(Loss)/profit from operations

(229)

235

(59)

Adjusted profit from operations before IPO expenses and share-based payment expense

(210)

554

Share-based payment schemes

(19)

(385)

IPO expenses

(228)

(Loss)/profit from operations

(229)

235

(59)

Financial income

1

Financial expenses

(6)

(128)

(290)

(Loss)/profit before taxation

(235)

107

(348)

Income tax credit/(expense)

4

47

189

251

(Loss)/profit  for the year and total comprehensive income attributable to equity holders of the parent company

(188)

296

(97)

Basic (loss)/profit per share – pence

5

(1.40)

347.14

(36.49)

Diluted (loss)/profit per share – pence

5

(1.40)

5.91

(36.49)

Consolidated statement of financial position

30 September

30 September

31 March

2014

2013

2014

Note

£000

£000

£000

Assets

Non-current assets

Property, plant and equipment

115

115

104

Intangible assets

12

20

16

Deferred taxation

305

189

258

432

324

378

Current assets

Stock

6,605

3,880

4,667

Trade and other receivables

6

1,716

1,374

1,816

Cash and cash equivalents

2,754

50

7,578

11,075

5,304

14,061

Total assets

11,507

5,628

14,439

Current liabilities

Trade and other payables

7

962

1,616

3,111

Loans and borrowings

623

533

Current corporation tax liabilities

7

7

14

Total current liabilities

969

2,246

3,658

Non-current liabilities

Loans and borrowings

2,108

2,108

Total liabilities

969

4,354

3,658

Net assets

10,538

1,274

10,781

Equity and liabilities

Equity attributable to owners of the Company

Ordinary shares

136

52

132

Share premium

9,516

9,458

Merger reserve

82

2,047

82

Retained earnings/(deficit)

804

(825)

1,109

Total equity

10,538

1,274

10,781

These interim financial statements were approved by the Board of Directors on 12 December 2014 and signed on its behalf by Simon Southwood

Consolidated statement of changes in equity

Note

Share

Share

Merger

Retained

Total

capital

premium

reserve

deficit

equity

£000

£000

£000

£000

£000

Balance at 1 April 2013

52

2,047

(1,121)

978

Profit for the period

296

296

Total comprehensive income for the period

296

296

Balance at 30 September 2013

52

2,047

(825)

1,274

Loss for the period

(393)

(393)

Total comprehensive income for the period

(393)

(393)

Shares issued in the period

80

10,259

10,339

Share issue expenses

(801)

(801)

Capital reduction in subsidiary

(1,986)

1,986

Cancellation of shares in subsidiary from merger reserve

21

3

24

Share-based payments

338

338

Total contributions by owners of the parent

80

9,458

(1,965)

2,327

9,900

Balance at 31 March 2014

132

9,458

82

1,109

10,781

Consolidated statement of changes in equity

Note

Share

Share

Merger

Retained

Total

capital

premium

reserve

deficit

equity

£000

£000

£000

£000

£000

Balance at 1 April 2014

132

9,458

82

1,109

10,781

Loss for the period

(188)

(188)

Total comprehensive income for the period

(188)

(188)

Shares issued in the period

4

58

62

Share-based payments

19

19

Dividends paid

(136)

(136)

Total contributions by owners of the parent

4

58

(117)

(55)

Balance at 30 September 2014

136

9,516

82

804

10,538

Consolidated statement of cash flows

Six-month period

 ended

Six-month period

 ended

Year 

ended  

30 September

30 September

31 March

2014

2013

2014

£000

£000

Cash flows from operating activities

(Loss)/profit before tax

(235)

107

(348)

Depreciation of property, plant and equipment

22

18

38

Amortisation of intangible assets

4

4

8

Interest payable

6

Share-based payment

19

338

(184)

129

36

Increase in inventories

(1,938)

(547)

(1,336)

Decrease/(increase)in trade and other receivables

100

(6)

(448)

(Decrease)/increase in trade and other payables

(2,156)

94

2,211

Net cash generated from operating activities

(4,178)

(330)

463

Cash flows from investing activities

Purchase of property, plant and equipment

(33)

(14)

(22)

Interest received

1

Net cash generated used in investing activities

(33)

(14)

(21)

Cash flows from financing activities

Proceeds from the issuance of ordinary shares

62

8,000

Share issue expenses

(801)

(Repayment)/receipt of shareholder loans

(533)

273

Dividends paid

(136)

Interest paid

(6)

(75)

(259)

Net cash generated from financing activities

(613)

198

6,940

Net increase in cash and cash equivalents

(4,824)

(146)

7,382

Cash and cash equivalents at the beginning of the period

7,578

196

196

Cash and cash equivalents at the end of the period

2,754

50

7,578

1

General information

Scholium Group plc and its subsidiaries (together ‘the Group’) are engaged in the trading and retailing of rare and antiquarian books and works on paper primarily in the United Kingdom. The Company is a public company domiciled and incorporated in England and Wales (registered number 08833975). The address of its registered office is 32 St George Street, London W1S 2EA.

2

Basis of preparation

These condensed interim financial statements of the Groupfor the six months ended 30 September 2014 (the Period) have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group’s latest audited financial statements for the year ended 31 March 2014. Amendments made to IFRSs since 31 March 2014 have not had a material effect on the Group’s results or financial position for the six-month period ended 30 September 2014.

While the financial figures included within this half-yearly report have been computed in accordance with IFRSs applicable to interim periods, this half-yearly report does not contain sufficient information to constitute an interim financial report as set out in International Accounting Standard 34 Interim Financial Reporting.

These condensed interim financial statements have not been audited, do not include all of the information required for full annual financial statements, and should be read in conjunction with the Group’s consolidated annual financial statements for the year ended 31 March 2014. The auditors’ opinion on these Statutory Accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under s498(2) or s498(3) of the Companies Act 2006.

3

Revenue

30 September

30 September

31 March

2014

2013

2014

£000

£000

£000

Book sales

2,761

2,494

6,474

Commissions

25

240

256

Other income

12

5

3

2,798

2,739

6,733

4

Income tax

30 September

30 September

31 March

2014

2013

2014

£000

£000

£000

Current tax (credit)/expense

Current  tax

1

7

Deferred tax:

Origination and reversal of temporary differences

(48)

(189)

(258)

Total tax credit

(47)

(189)

(251)

The reasons for the difference between the actual tax (credit)/charge for the year and the standard rate of corporation tax in the United Kingdom applied to (loss)/profit for the year as follows:

30 September

30 September

31 March

2014

2013

2014

£000

£000

£000

(Loss)/profit before tax

(235)

107

(348)

Applied corporation tax rates:

20%

20%

20%

Tax at the UK corporation tax rate of 20%

(47)

21

(70)

Expenses not deductible for tax purposes

53

Utilisation of previously unrecognised tax losses

3

(39)

Origination and reversal of temporary differences

0

(213)

(195)

Total tax credit

(47)

(189)

(251)

5.

Earnings/(loss) per share

30 September

30 September

31 March

2014

2013

2014

(Loss)/profit used in calculating basic and diluted earnings per share

(188)

296

(97)

Number of shares

Weighted average number of shares for the purpose of basic earnings per share

13,399,070

85,268

265,813

Weighted average number of shares for the purpose of diluted earnings per share

13,399,070

5,004,888

265,813

Basic (loss)/earnings per share (pence per share)

(1.40)

347.14

(36.49)

Diluted (loss)/ earnings per share (pence per share)

(1.40)

5.91

(36.49)

Basic earnings per share amounts are calculated by dividing net (loss)/profit for the year or period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

Where the Group has incurred a loss in a year or period the diluted earnings per share is the same as the basic earnings per share as the loss has an anti-dilutive effect. The diluted loss per share for 30 September 2014 and 31 March 2014 is therefore the same as the basic loss per share for the relevant period and the diluted weighted average number of shares is the same as the basic weighted average number of shares.

The Company has 1,056,000 potentially issuable shares all of which relate to the potential dilution from the Group’s share-options issued in the year ended 31 March 2014.

6

Trade and other receivables

30 September

30 September

31 March

2014

2013

2014

£000

£000

£000

Trade and other receivables

1,183

1,008

1,412

Other debtors

204

84

198

Prepayments and accrued income

329

282

206

1,716

1,374

1,816

7

Trade and other payables

30 September

30 September

31 March

2014

2013

2014

£000

£000

£000

Trade creditors

652

1,111

2,355

Social security and other taxes

35

50

18

Accrued expenses

99

55

686

Other creditors

176

400

52

962

1,616

3,111

Release of Interim Report & Financial Statements

Scholium Group plc 

Release of Interim Report & Financial Statements

Scholium Group plc announces that it will release its interim report and financial statements for the 6 months ended 30 September 2014 on 15 December 2014.

Scholium Group plc

Philip Blackwell, Chief Executive Officer

Simon Southwood, Chief Financial Officer

+44 (0)20 7493 0876

WH Ireland Ltd – Nominated Adviser

Chris Fielding / Mark Leonard

+44 (0)20 7220 1666

Whitman Howard Ltd – Broker

Ranald McGregor-Smith / Niall Devins

+44 (0)20 7087 4550

Notes to Editors

Scholium Group plc is the holding company for a group of companies involved in the retail and trade of rare books, works on paper and fine art.

Shapero Rare Books

Shapero Rare Books was founded in 1979, is a dealer in rare and antiquarian books and works on paper. This includes maps of historic importance, vintage photographs and decorative and artistic prints. Mr Shapero is a well-known and established international dealer in rare books and maps. He developed his expertise from an initial focus on travel and illustrated books into a broad spectrum of rare and collectible works.

The management of Shapero Rare Books has experience in acquiring large consignments of rare and historically important antiquarian books for sale to an international client base. The business has operated since 1996 from its current leasehold premises in St George Street, Mayfair, London.

Scholium Trading

Scholium Trading acquires and trades in the wider market for rare and collectible goods alongside other specialist dealers.

South Kensington Books and Ultimate Library

South Kensington Books is the current trading name of a bookshop that has been operating from leasehold premises in Thurloe Street, South Kensington, London for several decades and which specialises in books valued at up to £150 in visual arts, architecture and photography.

Ultimate Library, which operates from the same premises, creates bespoke libraries on behalf of luxury hotels and resorts, and high-end personal residences around the world.

Trading Statement

Scholium Group plc

(“Scholium” or, together with its subsidiaries, the “Group”)

Trading Statement

16 October 2014

The directors of Scholium are pleased to provide an update for the market on the Group’s performance for the six months ended 30 September 2014 ahead of the Group’s interim statement that will be released in late November.

Shapero Rare Books

Sales of own stock were ahead of the corresponding period last year, whilst the one-off consignment commissions did not recur. Gross profit margins on owned stock also increased in the first half reflecting the continuing emphasis on the shift to higher quality books. The main focus, since the Group’s IPO in March 2014 has been positioning the business for the significant selling season in the second half of the year and putting in place the infrastructure for future growth. Consistent with these goals Shapero Rare Books has increased its stock significantly, to approximately £6.2 million at the period end, with a number of noteworthy acquisitions.

Scholium Trading

The first half of the year was productive for Scholium Trading. Although this activity began more slowly than anticipated, it has been pleasing to note that the stock turn on trades completed has been better than expected. Scholium Trading earned its first profit in the period under review, with a return of 10% over a period of 2 months. Since the period end, two further profitable sales have been completed. Having spent considerable time developing relationships with dealers, we expect that activity will substantially increase in the second half of the financial year and beyond.

South Kensington Operations

Our South Kensington operations, albeit small, have shown accelerated growth in sales, margin and profitability and are strongly cash positive. Increased footfall has helped retail sales and some high profile hotel contract wins, both in London and overseas, have also driven sales. We launched a new private library business in the summer and it is starting to gain traction.

Outlook

We look forward to the busy selling season in the second half of the year with optimism, strong levels of quality stock and a firm pipeline of selling opportunities.

Scholium Group plc

Philip Blackwell, Chief Executive Officer

Simon Southwood, Chief Financial Officer

+44 (0)20 7493 0876

WH Ireland Ltd – Nominated Adviser

Chris Fielding / Mark Leonard

+44 (0)20 7220 1666

Whitman Howard Ltd – Broker

Ranald McGregor-Smith / Niall Devins

+44 (0)20 7087 4550

Notes to Editors

Scholium Group plc is the holding company for a group of companies involved in the retail and trade of rare books, works on paper and fine art.

Shapero Rare Books

Shapero Rare Books was founded in 1979, is a dealer in rare and antiquarian books and works on paper. This includes maps of historic importance, vintage photographs and decorative and artistic prints. Mr Shapero is a well-known and established international dealer in rare books and maps. He developed his expertise from an initial focus on travel and illustrated books into a broad spectrum of rare and collectible works.

The management of Shapero Rare Books has experience in acquiring large consignments of rare and historically important antiquarian books for sale to an international client base. The business has operated since 1996 from its current leasehold premises in St George Street, Mayfair, London.

Scholium Trading

Scholium Trading acquires and trades in the wider market for rare and collectible goods alongside other specialist dealers.

South Kensington Books and Ultimate Library

South Kensington Books is the current trading name of a bookshop that has been operating from leasehold premises in Thurloe Street, South Kensington, London for several decades and which specialises in books valued at up to £150 in visual arts, architecture and photography.

Ultimate Library, which operates from the same premises, creates bespoke libraries on behalf of luxury hotels and resorts, and high-end personal residences around the world

Director’s Shareholding

Scholium Group plc (the “Company”)

Director’s Shareholding

The Company announces that it was informed today that on 5 September 2014 Charles Sebag-Montefiore, non-executive director, purchased 10,000 ordinary shares in the capital of the Company at a price of £0.81 per share. 

Following this purchase Charles Sebag-Montefiore is interested in 20,000 ordinary shares in the Company, representing approximately 0.147 per cent of the issued share capital of the Company. 

For further information please visit www.scholiumgroup.com or contact:

Scholium Group plc

Philip Blackwell, Chief Executive Officer

Simon Southwood, Chief Financial Officer

 

+44 (0)20 7493 0876

WH Ireland Limited (NOMAD)

Chris Fielding / Nick Field

 

+44 (0)20 7220 1666

 

Notes to Editors

Scholium Group plc is the holding company for a group of companies involved in the retail and trade of rare books, works on paper and fine art.

 

Shapero Rare Books

Shapero Rare Books was founded in 1979, is a dealer in rare and antiquarian books and works on paper. This includes maps of historic importance, vintage photographs and decorative and artistic prints. Mr Shapero is a well-known and established international dealer in rare books and maps. He developed his expertise from an initial focus on travel and illustrated books into a broad spectrum of rare and collectible works.

 

The management of Shapero Rare Books has experience in acquiring large consignments of rare and historically important antiquarian books for sale to an international client base. The business has operated since 1996 from its current leasehold premises in St George Street, Mayfair, London.

 

Scholium Trading

Scholium Trading acquires and trades in the wider market for rare and collectible goods alongside other specialist dealers.

 

South Kensington Books and Ultimate Library

South Kensington Books is the current trading name of a bookshop that has been operating from leasehold premises in Thurloe Street, South Kensington, London for several decades and which specialises in books valued at up to £150 in visual arts, architecture and photography.

 

Ultimate Library, which operates from the same premises, creates bespoke libraries on behalf of luxury hotels and resorts, and high-end personal residences around the world

Result of AGM

Scholium Group plc 

(“Scholium Group” or the “Company”)

Results of Annual General Meeting

4 September 2014

Scholium Group is pleased to announce that it held its Annual General Meeting for shareholders today at 9:30 a.m. in London. All resolutions proposed at the meeting were duly passed.

For further information please visit www.scholiumgroup.com or contact:

Scholium Group plc

Philip Blackwell, Chief Executive Officer

Simon Southwood, Chief Financial Officer

+44 (0)20 7493 0876

 

Notes to Editors

Scholium Group plc is the holding company for a group of companies involved in the retail and trade of rare books, works on paper and fine art.

Shapero Rare Books

Shapero Rare Books was founded in 1979, is a dealer in rare and antiquarian books and works on paper. This includes maps of historic importance, vintage photographs and decorative and artistic prints. Mr Shapero is a well-known and established international dealer in rare books and maps. He developed his expertise from an initial focus on travel and illustrated books into a broad spectrum of rare and collectible works.

 The management of Shapero Rare Books has experience in acquiring large consignments of rare and historically important antiquarian books for sale to an international client base. The business has operated since 1996 from its current leasehold premises in St George Street, Mayfair, London.

 Scholium Trading

Scholium Trading acquires and trades in the wider market for rare and collectible goods alongside other specialist dealers.

 South Kensington Books and Ultimate Library

South Kensington Books is the current trading name of a bookshop that has been operating from leasehold premises in Thurloe Street, South Kensington, London for several decades and which specialises in books valued at up to £150 in visual arts, architecture and photography.

 Ultimate Library, which operates from the same premises, creates bespoke libraries on behalf of luxury hotels and resorts, and high-end personal residences around the world.

AGM Statement

Scholium Group plc

(together with its subsidiaries, the “Group”)

AGM Statement

At the AGM this morning, the Chairman, Jasper Allen, will make the following statement:

 “Since admission to trading on 28 March 2014, we have been applying the new capital raised to increasing the Group’s stock and trade.  It has taken time and effort to judiciously build the stock, and the Group is now in a strong position for the second half of the year with high quality inventory.

“At 31 July 2014, the aggregate inventories of the Group were approximately £6.45 million (31 March 2014: £4.67 million) which provides a healthy position going into the second half of the year, traditionally our busier half.

“Interest in Shapero Rare Books remains strong with a number of material deals expected to complete in September.  It will also be exhibiting at a number of important international fairs before the end of the financial year including New York, Hong Kong and The European Fine Art Fair in March.

For further information please visit www.scholiumgroup.com or contact:

Scholium Group plc

Philip Blackwell, Chief Executive Officer

Simon Southwood, Chief Financial Officer

+44 (0)20 7493 0876

WH Ireland Ltd – Nominated Adviser

Chris Fielding / Nick Field

+44 (0)20 7220 1666

Whitman Howard Ltd – Broker

Ranald McGregor-Smith / Niall Devins

+44 (0)20 7087 4550

Notes to Editors

Scholium Group plc is the holding company for a group of companies involved in the retail and trade of rare books, works on paper and fine art.

Shapero Rare Books

Shapero Rare Books was founded in 1979, is a dealer in rare and antiquarian books and works on paper. This includes maps of historic importance, vintage photographs and decorative and artistic prints. Mr Shapero is a well-known and established international dealer in rare books and maps. He developed his expertise from an initial focus on travel and illustrated books into a broad spectrum of rare and collectible works.

The management of Shapero Rare Books has experience in acquiring large consignments of rare and historically important antiquarian books for sale to an international client base. The business has operated since 1996 from its current leasehold premises in St George Street, Mayfair, London.

Scholium Trading

Scholium Trading acquires and trades in the wider market for rare and collectible goods alongside other specialist dealers.

South Kensington Books and Ultimate Library

South Kensington Books is the current trading name of a bookshop that has been operating from leasehold premises in Thurloe Street, South Kensington, London for several decades and which specialises in books valued at up to £150 in visual arts, architecture and photography.

Ultimate Library, which operates from the same premises, creates bespoke libraries on behalf of luxury hotels and resorts, and high-end personal residences around the world

AGM Notice and posting of results

Scholium Group plc 

(“Scholium Group” or the “Company”)

AGM Notice and posting of results

31 July 2014

Scholium Group is pleased to announce that it has today posted copies of its Annual Report and Financial Statements for the period ended 31 March 2014 to its shareholders.  A notice convening the Company’s Annual General Meeting (AGM) was included.  The AGM will be held in the library of the Ham Yard Hotel (which was supplied by the Scholium Group’s Ultimate Library division) at One Ham Yard, London W1D 7DT on Thursday, 4 September 2014 at 9:30 a.m. 

A copy of the Annual Report and Financial Statements for the period ended 31 March 2014 as well as the Notice of the AGM is available on the Company’s website, www.scholiumgroup.com 

For further information please visit www.scholiumgroup.com or contact:

Scholium Group plc

Philip Blackwell, Chief Executive Officer

Simon Southwood, Chief Financial Officer

+44 (0)20 7493 0876

Notes to Editors

Scholium Group plc is the holding company for a group of companies involved in the retail and trade of rare books, works on paper and fine art.

Shapero Rare Books

Shapero Rare Books was founded in 1979, is a dealer in rare and antiquarian books and works on paper. This includes maps of historic importance, vintage photographs and decorative and artistic prints. Mr Shapero is a well-known and established international dealer in rare books and maps. He developed his expertise from an initial focus on travel and illustrated books into a broad spectrum of rare and collectible works.

The management of Shapero Rare Books has experience in acquiring large consignments of rare and historically important antiquarian books for sale to an international client base. The business has operated since 1996 from its current leasehold premises in St George Street, Mayfair, London.

Scholium Trading

Scholium Trading acquires and trades in the wider market for rare and collectible goods alongside other specialist dealers.

South Kensington Books and Ultimate Library

South Kensington Books is the current trading name of a bookshop that has been operating from leasehold premises in Thurloe Street, South Kensington, London for several decades and which specialises in books valued at up to £150 in visual arts, architecture and photography.

Ultimate Library, which operates from the same premises, creates bespoke libraries on behalf of luxury hotels and resorts, and high-end personal residences around the world

Director Shareholding

Scholium Group plc (the “Company”)

Director Shareholding

28 July 2014

The Company announces that it was informed on 28 July 2014 that on 25 July 2014 Jasper Allen, Chairman, purchased 2,000 ordinary shares in the capital of the Company at a price of £0.80 per share. 

Following this purchase Jasper Allen is interested in 102,000 ordinary shares in the Company, representing approximately 0.75 per cent of the issued share capital of the Company. 

For further information please visit www.scholiumgroup.com or contact:

Scholium Group plc

Philip Blackwell, Chief Executive Officer

Simon Southwood, Chief Financial Officer

 

+44 (0)20 7493 0876

Notes to Editors

Scholium Group plc is the holding company for a group of companies involved in the retail and trade of rare books, works on paper and fine art.

Shapero Rare Books

Shapero Rare Books was founded in 1979, is a dealer in rare and antiquarian books and works on paper. This includes maps of historic importance, vintage photographs and decorative and artistic prints. Mr Shapero is a well-known and established international dealer in rare books and maps. He developed his expertise from an initial focus on travel and illustrated books into a broad spectrum of rare and collectible works.

The management of Shapero Rare Books has experience in acquiring large consignments of rare and historically important antiquarian books for sale to an international client base. The business has operated since 1996 from its current leasehold premises in St George Street, Mayfair, London.

Scholium Trading

Scholium Trading acquires and trades in the wider market for rare and collectible goods alongside other specialist dealers.

South Kensington Books and Ultimate Library

South Kensington Books is the current trading name of a bookshop that has been operating from leasehold premises in Thurloe Street, South Kensington, London for several decades and which specialises in books valued at up to £150 in visual arts, architecture and photography.

Ultimate Library, which operates from the same premises, creates bespoke libraries on behalf of luxury hotels and resorts, and high-end personal residences around the world.

Issue of Equity

Scholium Group plc (the “Company”)

Issue of Equity

2 July 2014

The Company is pleased to announce that 399,675 ordinary shares of £0.01 each in the capital of the Company have been issued pursuant to the exercise of options at an exercise price of 15.4p per share.  Bernard Shapero and Pierre-Yves Guillemet, both senior managers of the group, have acquired 324,736 shares and 74,939 shares respectively.  Application has been made for these new ordinary shares to be admitted to AIM and admission is expected to take place on 07 July 2014.

The new Ordinary Shares will rank pari passu with the existing ordinary shares. Following allotment of the new ordinary shares, the Company will have in issue 13.6 million ordinary shares exactly. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure and Transparency Rules.

For further information please visit www.scholiumgroup.com or contact:

Scholium Group plc

Philip Blackwell, Chief Executive Officer

Simon Southwood, Chief Financial Officer

 

+44 (0)20 7493 0876

Notes to Editors

Scholium Group plc is the holding company for a group of companies involved in the retail and trade of rare books, works on paper and fine art.

 

Shapero Rare Books

Shapero Rare Books was founded in 1979, is a dealer in rare and antiquarian books and works on paper. This includes maps of historic importance, vintage photographs and decorative and artistic prints. Mr Shapero is a well-known and established international dealer in rare books and maps. He developed his expertise from an initial focus on travel and illustrated books into a broad spectrum of rare and collectible works.

 

The management of Shapero Rare Books has experience in acquiring large consignments of rare and historically important antiquarian books for sale to an international client base. The business has operated since 1996 from its current leasehold premises in St George Street, Mayfair, London.

 

Scholium Trading

Scholium Trading acquires and trades in the wider market for rare and collectible goods alongside other specialist dealers.

 

South Kensington Books and Ultimate Library

South Kensington Books is the current trading name of a bookshop that has been operating from leasehold premises in Thurloe Street, South Kensington, London for several decades and which specialises in books valued at up to £150 in visual arts, architecture and photography.

 

Ultimate Library, which operates from the same premises, creates bespoke libraries on behalf of luxury hotels and resorts, and high-end personal residences around the world

Final Results

Scholium Group plc (“Scholium” or the “Company”)

together with its subsidiaries (the “Group”)

Final Results

1 July 2014

SUMMARY INFORMATION

Scholium Group plc (“Scholium” or the “Company”) together with its subsidiaries (the “Group”) is pleased to present a preliminary statement summarising its annual report and financial statements for the year ended 31 March 2014.  The Group is involved in the trading of rare and collectible goods.  Shapero Rare Books, its main operating brand, trades in rare books and other works on paper from Mayfair and through international fine art fairs.  The Group also retails art and literature from premises in South Kensington where it operates Ultimate Library, which provides bespoke libraries to hotels and private residences.

The Company’s shares are admitted to trading on AIM, a market operated and regulated by the London Stock Exchange under stock (Symbol: SCHO). 

Operational Highlights in the year ending 31 March 2014

·   Material increase in the stock and trade of Shapero Rare Books following acquisition in 2012

·   Strong growth in South Kensington Books and Ultimate Library

·   Admission to trading on AIM, raising £8 million before expenses

 

Financial Highlights

31 March 2014

31 March 2013

Revenue from operations (up 13.4%)

£6.73m

£5.94m

Gross Profit from operations (up 19.2%)

£2.78m

£2.33m

EBITDA (up 88%)

£0.61m

£0.33m

Stock (up 40%)

£4.67m

£3.33m

Total Assets (up 187%)

£14.44m

£5.04m

Net Assets (up 1100%)

£10.78m

£0.98m

Dividend per ordinary share

1p

 

Commenting on the final results Philip Blackwell, Chief Executive of the Group, noted “We are very pleased to report a strong performance for 2014.  Our business has grown materially on all fronts and culminated in admission to trading on AIM raising £8 million.

“We have made an encouraging start to the year with Shapero Rare Books and South Kensington Books ahead of the same period for the previous year and are looking forward to developing our business through selective deployment of new capital.”

For further information, contact:

Scholium Group plc

Philip Blackwell, Chief Executive Officer

Simon Southwood, Chief Financial Officer

+44 (0)20 7493 0876

WH Ireland Ltd – Nominated Adviser

Chris Fielding / Nick Field

+44 (0)20 7220 1666

Whitman Howard Ltd – Broker

Ranald McGregor-Smith / Niall Devins

+44 (0)20 7087 4550

Notes to Editors

Shapero Rare Books

Shapero Rare Books was founded in 1979, is a dealer in rare and antiquarian books and works on paper. This includes maps of historic importance, vintage photographs and decorative and artistic prints. Mr Shapero is a well-known and established international dealer in rare books and maps. He developed his expertise from an initial focus on travel and illustrated books into a broad spectrum of rare and collectible works.

The management of Shapero Rare Books has experience in acquiring large consignments of rare and historically important antiquarian books for sale to an international client base. The business has operated since 1996 from its current leasehold premises in St George Street, Mayfair, London.

Scholium Trading

Scholium Trading acquires and trades in the wider market for rare and collectible goods alongside other specialist dealers.

South Kensington Books and Ultimate Library

South Kensington Books is the current trading name of a bookshop that has been operating from leasehold premises in Thurloe Street, South Kensington, London for several decades and which specialises in books valued at up to £150 in visual arts, architecture and photography.

Ultimate Library, which operates from the same premises, creates bespoke libraries on behalf of luxury hotels and resorts, and high-end personal residences around the world


CHAIRMAN’S STATEMENT

I am delighted to present our maiden set of financial statements as a public company for the year ending 31 March 2014.  It has been an eventful year for the Group. On the back of the strong performance of our principal operating subsidiary, Shapero Rare Books, we gained investor support to secure further funds for the business to facilitate future growth. This was achieved through a placing of new shares to raise £8 million and admission of the Company’s shares to trading on AIM.

Revenue for the year amounted to £6.73 million (2013: £5.94 million) which delivered EBITDA1 of £0.61 million (2013: £0.33 million).

Business Review

During the year under review, the Group had two principal operating units:

·     Shapero Rare Books, a dealer in rare and antiquarian books and works on paper, located in Mayfair, London; and

·     South Kensington Books, a bookshop specialising primarily in art, and its sister business, Ultimate Library, which creates bespoke libraries for luxury hotels and private residences.

Performance

Shapero Rare Books

Shapero Rare Books is a Mayfair-based dealer in rare and antiquarian books and works on paper.  It regularly exhibits at major international fairs and typically trades alongside other high-end art and collectibles dealers.

We are particularly pleased with the performance of Shapero Rare Books over the year.  It became clear to us, once the group had stabilised in early April 2013 that the business was undercapitalised and under stocked.  When we sought a route to more permanent capital during the year, interim financing by way of a £273,000 working capital loan was made available by shareholders in September 2013.  The resultant immediate increase in the stock and trade of Shapero Rare Books underpinned our confidence to raise further funds and formed the basis for our admission to trading on AIM in March 2014.

Revenues in the year under review amounted to £6.08 million (2013: £5.38 million) and generated an EBITDA contribution of £0.56 million (2013: £ 0.27 million).  Continued investment in stock by the business resulted in material growth in stock at the year end to £4.57 million (31 March 2013: £3.33 million).

South Kensington Books

South Kensington Books and Ultimate Library made up approximately 10% of group turnover for the year (2013: 9%) and made a contribution of 9%.  Whilst the business is smaller than Shapero Rare Books, it goes from strength to strength; with turnover during the year of £0.65 million (2013: £0.55 million) generating EBITDA of £0.05 million (2013: £0.03 million).

_______________
1 EBITDA is stated before depreciation, amortization, loan related costs, foreign exchange losses, exceptional share-based payments and IPO costs.

Staff

As ever, our dedicated employees have contributed significantly to the development of the Group throughout the year and I would like to take this opportunity of thanking them again for their hard work and effort. Our new board has seen the appointment of Charles Sebag-Montefiore as senior independent non-executive and Simon Southwood as finance director.  Both of them bring a wealth of experience and I look forward to their contribution.

Current Trading

Since the year-end performance at both our Mayfair and South Kensington operations has been encouraging, with both businesses ahead of prior-year trading.  In particular, Shapero Rare Books has been deploying capital and has made attractive acquisitions of new stock.  The Scholium Trading proposition continues to be active in building its market presence in the community.  The Group is advancing conversations with a number of dealers on material acquisitions/collections they are pursuing.

Dividend

Due to performance in the year, we are pleased to declare an interim dividend of 1 penny per ordinary share. Payment will be made on 25 July 2014 to shareholders on the Company’s register on 11 July 2014.

Jasper Allen

Chairman

30 June 2014

STRATEGIC REPORT

This report provides an overview of our strategy and of our business model; gives a review of how the business has performed and of our financial position at the year-end; and sets out the principal risks to which the Group is exposed. In addition it comments on the future prospects of the business.

Principal activities of the business

Scholium group companies are involved primarily in the trading and retailing of books and other works on paper, as well as dealing in rare and collectible goods in the wider art market.

The group of businesses comprises:

·      Shapero Rare Books, a dealer in rare and antiquarian books and works on paper, located in Mayfair, London;

·      South Kensington Books, a bookshop specialising primarily in art, and its sister business, Ultimate Library, which creates bespoke libraries for luxury hotels and private residences; and

·      Scholium Trading, a company set up to trade in conjunction with other dealers in high value rare and collectible goods.

Revenue Streams

The Group earns revenue from:

•       the sale of rare books and works on paper through Shapero Rare Books;

•       the sale of art books and literature through South Kensington Books;

•       the sale of whole collections and libraries through Ultimate Library; and

•       the sale of other rare and collectible items through Scholium Trading.

Strategy

The Company raised new capital in a recent placing of new shares in order to:

·      increase the day-to-day stock and trade of Shapero Rare Books and broaden the product mix into Modern prints;

·      invest in developing Scholium Trading – a company created to trade alongside other dealers in high value rare and collectible items and participate in the acquisition for sale of large consignments; and

·      accelerate the growth of the South Kensington Books and Ultimate Library brands; the latter concomitant with the development of international hospitality groups and the demand for premium property in Central London.

The directors intend to provide an attractive level of dividends to shareholders along with stable asset-backed growth driven by inefficiencies in the markets in which the Group operates.

Our business model

Shapero Rare Books

Shapero Rare Books trades in rare and antiquarian books and works on paper.  It trades from premises in Mayfair, at international art fairs in London, Continental Europe and America and through its website www.shapero.com.  The items for sale typically range in value from £100 up to £1.5 million. Shapero Rare Books particularly specialises in Natural History, travel and Russian materials.  Recently it has started to develop its Modern Prints department.

 

South Kensington operations

South Kensington Books is an independent bookshop operating from premises in Thurloe Street, South Kensington, serving its local professional community in the museums, Christie’s, the Lycée and the vibrant tourist and local resident community. Ultimate Library operates from the same premises and supplies bespoke libraries for private residences, luxury resorts and hotels on four continents.

 

Scholium Trading

Scholium Trading is a new operation set up to trade in conjunction with dealers in high value rare and collectible goods.  It seeks to build on our experience of acquiring items or collections either as principal or in consortia with dealers who are expert in their own subject area; and to extend this expertise to working with a wider range of dealers in related areas of the collectibles market.

Key objectives and key performance indicators (KPIs)

Our key objectives are to:

•       increase the stock and trade of Shapero Rare Books through selective purchasing;

•       increase the trade of South Kensington operations through expanding its hotel client base to sell more libraries and grow the exclusive private residence market through working with more design groups ; and

•       develop Scholium Trading to be the ‘first call’ for high-end fine art and collectible dealers looking for partners to acquire and sell individual items or collections that exceed their immediate financial capacity.

 

Our current principal KPIs are:

·      gross margin, EBITDA, earnings per share;

·      the breadth and distribution of the stock of assets held by the Group;

·      stock turnover of assets; and

·      various key risk indicators including capital resources, portfolio allocation and cash.

 

Years ending March

2014

2013

Revenue

6.73

5.94

Gross Profit

2.78

2.34

Gross Margin

41%

39%

Stock Turnover

12 months

11 months

Review of the year and current trading

Overall performance

We are pleased to report that the business has grown over the year.  Revenue has increased 13.4% to £6.73 million (2013: £5.94 million) whilst the gross margin has increased from 39% to 41%. Much of this margin improvement was due to an increased level of commission sales in Shapero Rare Books. EBITDA for the period increased to £0.61 million (2013: £0.33 million), reflecting the operational gearing that the group enjoys.

Shapero Rare Books

Shapero Rare Books has been, in large part, responsible for the increase in growth and profitability of the Group.  Revenue for the year amounted to £6.1 million (2013: £5.4 million) which represented 90% of the overall revenues of the Group (2013: 91%).  The Operational EBITDA of Shapero Rare Books exceeded our initial expectations for the year with exceptional purchases and sales in the latter part of the year.  A strong final quarter was underpinned by sales at The European Fine Art Fair (TEFAF) and the success of our catalogue ’50 Fine Books’.

The year has seen a marked increase in the stock holding of the group to £4.7 million (31 March 2013: £3.3 million). This increase in stock was largely in the last quarter of the year and was enabled by strong trading and a short-term loan from shareholders. In line with plan, we have continued to invest the proceeds of the listing to increase stock as a driver of future sales. We have been able to acquire some attractive new items as evidenced by the recent Natural History catalogue which carried books and prints valued at more than £4m at retail prices.

The development of the prints side of the business has seen a strategic investment in modern prints through the acquisition of a portfolio by Andy Warhol.

South Kensington operations

South Kensington Books enjoyed like-for-like sale growth of over 12% in last financial year and is trading to plan in the current year. The bookshop is not an inherently scalable business with just one location but it remains cash generative.  Ultimate Library grew by over 50% in the year to March 2014 and has started the current year strongly with a number of new clients in London, Greece, Vietnam, the Caribbean and mainland China. As planned we are recruiting to meet demand. The library business works off the buying expertise of the South Kensington Books team.

Revenue for the year increased to £0.65 million (2013: £0.55 million) that drove an increase in EBITDA to £0.05 million (2013: £0.03 million).  The stock-turn of 4x per annum is typical for a business of this nature

Scholium Trading

The new operation, Scholium Trading was set up to trade in conjunction with dealers in high value rare and collectible goods and began trading in the current financial year.  It seeks to build on our previous experience of acquiring items or collections either as principal or in consortia with dealers who are expert in their own subject area; and to extend this expertise to working with a wider range of dealers in related areas of the collectibles market. We have been active in promoting the new business to our network of other dealers in the market and are looking at a number of interesting opportunities.

Financial Position and Cash flow

As at 31 March 2014 our gross stock levels were £4.67 million (2013: £3.33 million) and gross assets were £14.44 million (2013: £5.04 million).  The increase in stock levels is largely due to the Group’s policy of reinvestment in stock to drive turnover and return on capital.  The increase in gross assets is largely due to the fundraising undertaken concomitant with admission of the Company’s shares to trading on AIM.  Cash at 31 March 2014 was £7.58 million. In the current year we are investing the proceeds of the listing to plan.

Dividend

The Board has resolved to pay an interim dividend of 1 penny per ordinary share to shareholders on the register as at 11 July 2014 (ex-dividend date of 9 July). Payment will be made on 25 July 2014.

Principal risks and uncertainties

Supply of antiquarian books and other items

By definition, rare and antiquarian books and other works on paper are rare. The availability of fresh stock of such items is often driven by major life events, such as inheritance, unrecovered debt, divorce or downsizing due to economic malaise. The continued growth of Shapero Rare Books’ business is reliant upon individual works and collections of works coming onto the market and upon the Group being able to access those business opportunities. Oftentimes, such sales are dealt with privately and discreetly, thereby meaning access to such dealflow is not guaranteed.

Reliance on key international trade fairs

A significant proportion of the Group’s sales are made at international trade fairs, and in particular The European Fine Art Fair. If this fair were to be discontinued it would have a material effect on the ability of the Group to sell goods. There are a limited number of stands at this and other international trade fairs and as a result places are highly sought after. Whilst there can be no certainty that the Group will continue to secure a place in the future, members of the Group have been exhibiting at these fairs for many years and, as such, have a well-established presence.

Competition

The market in the books and other items in which the Group trades is competitive. In the market for antiquarian books and other items in which Shapero Rare Books trades, the Group faces various competitive pressures including from the major auctioneers, Sotheby’s, Christie’s and Bonham’s, as well as smaller auctioneers and a large number of dealers and smaller operators.

The other parts of the Group’s business, including the business of South Kensington Books and Ultimate Library, also face various competitive pressures. While the directors believe that the art book market has been less impacted by e-readers and online retailers than the UK retail book market as a whole, the art book market is nonetheless highly competitive and the Group competes with large bookshop chains, smaller independent bookshops and large and small online retailers.

The Group is likely to face continued and/or increased competition in the future both from established competitors and/or from new entrants to the market. The Group’s competitors include businesses with greater financial and other resources than the Group. Such competitors may be in a better position than the Group to compete for future business opportunities. If the Group is unable to compete effectively in any of the markets in which it operates, it could have a material adverse effect on the Group’s business, financial condition, and operating.

Co-owned rare and collectible goods

In the case of high value items or collections, the Group will often acquire the items jointly with another bookseller and if not expressly provided for there is a risk that the Group will not be able to sell the entire asset without the agreement of all joint-owners. In this and other respects the Group relies on the honesty and integrity of other dealers. Whilst the Group takes care to deal only with established counterparties and experienced dealers who are well known to senior management and/or the directors, there can be no guarantee that co-owners will comply with the agreed terms (including, for example not charging the items) or that such co-owners will not enter into administration or other insolvency procedure, and in the event there is a loss of the co-owned goods it is not certain that the Group could claim under its insurance policy in relation thereto.

Stock valuation and liquidity

The Group will trade in rare and collectible items, which may be highly illiquid. The value of goods acquired is difficult to assess and it may not be possible for management to sell the assets at or above the price for which they were acquired. The value of assets in the balance sheet may not represent the actual resale value achievable.

Theft, loss or damage

Rare and collectible items are highly mobile goods. Furthermore such goods are frequently transported internationally for trade shows or other marketing opportunities. Whilst precautions are taken to ensure safe passage, the Group’s assets may be lost, damaged or stolen. While the Group carries specialist insurance, there is no guarantee that the Group’s insurance cover will be adequate in all circumstances. Assets of the Group will be placed with third parties for sale on commission. While the Group intends to take appropriate precautions when placing assets with third parties, there is a risk that these assets outside of the Group’s direct control may be stolen or replaced by unscrupulous third parties with fakes or forgeries.

Authenticity and export authority

The directors of the Company will ensure that due diligence is undertaken on the authenticity of the assets acquired for sale. Nonetheless fakes and forgeries do exist in the market and the Group may acquire these believing them to be authentic. Further, the attribution of works to a particular writer or artist is not an exact science, and there can be no guarantee that assets of the Group will not have been mistakenly attributed in this way. Lack of authenticity is not covered by the Group’s insurance. Whilst the Group takes appropriate care when acquiring works which may be of material importance in the state of origin, there can be no guarantee that works acquired by the Group are not subject to restrictions on export or sale.

Insurance

The Group carries a specialist insurance policy under the Antiquarian Booksellers Association Insurance Scheme which covers each of the businesses. The directors believe that the Group carries appropriate insurance for a business of its size and nature but there can be no guarantee that the extent or value of the cover will be sufficient, in particular in relation to stock in transit or on consignment. The directors review the Group’s insurance arrangements on an annual basis and endeavour to insure its stock adequately, but there is no certainty that future claims will not fall within the exclusions under the policy or that the insurer will pay out any claim if made. Further, there can be no guarantee that the necessary insurance will be available to the Group in the future at an acceptable cost or at all.

Premises

Like many of the established dealers in the market, the Group has a publicly accessible gallery in Mayfair, London from where Shapero Rare Books operates. In addition, the Group has a shop in South Kensington, London from where the South Kensington Books and Ultimate Library businesses operate. The directors believe that both locations are highly desirable and an important factor in the success of the business as a whole. However, both premises are leased and, unless extended, will terminate. Whilst discussions with the landlords have commenced, there can be no guarantee that the leases of either of the premises will be extended on terms acceptable to the Company or at all. In addition, the Group might incur dilapidation liabilities.

Terms of sale

To date, the contractual arrangements which the Group has entered into with clients, customers and other dealers have not always included (amongst other things) terms dealing specifically with

(i)           transfer of ownership and risk,

(ii)          contract formation,

(iii)         price and payment,

(iv)         limitations and exclusions of liability, and

(v)          governing law and jurisdiction.

In light of the foregoing, there can be no guarantee that the Group’s arrangements with its customers will not be terminated on short notice or that the Group will not at some future time face challenges or disputes in relation to the contractual or other arrangements with its clients. If the Group became involved in a contractual dispute and/or a third party was successful in any contractual dispute with the Group, any resultant loss of revenues or exposure to litigation costs or other claims could have a material adverse effect on the Group’s reputation, business, financial condition and/or operations or financial results. The Group is revising its standard terms of sale to seek to ensure that, going forward, the arrangements with clients, customers, dealers and others will include terms dealing with each of the aforementioned areas.

Currency risk

The directors anticipate that the Group will conduct certain of its transactions other than in Pounds Sterling, the Company’s functional currency. As a result, movements in foreign exchange rates may impact the Group’s performance. The Group does not contract any hedging arrangements in respect of currency positions.

On behalf of the Board

Philip Blackwell

Chief Executive Officer

30 June 2014

 

Responsibility statement

The Directors confirm that to the best of their knowledge:

the financial statements, prepared in accordance with International Financial Reporting Standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and

the Strategic Report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole.

Forward-looking statements

These financial statements contain forward-looking statements with respect to the financial condition, results, operations and businesses of the Company. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct.  Such statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by forward-looking statements and forecasts. Forward-looking statements and forecasts are based on the Directors’ current view and information known to them at the date of this statement. The Directors do not make any undertaking to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Consolidated statement of comprehensive income

Year

 ended

Year

 ended

31 March

31 March

2014

2013

Note

£’000

£000

Revenue

3

6,733

5,936

Cost of sales

(3,954)

(3,602)

Gross profit

2,779

2,334

Distribution expenses

(423)

(525)

Administrative expenses

(1,802)

(1,497)

Exceptional items:

Replacement share-based payment scheme

9

(385)

IPO expenses

9

(228)

Total administrative expenses

(2,415)

(1,496)

(Loss)/profit from operations

(59)

312

Adjusted profit from operations before IPO expenses and share-based payment expense

554

312

Replacement share-based payment scheme

(385)

IPO expenses

(228)

(Loss)/profit from operations

(59)

312

Financial income

1

1

Financial expenses

10

(290)

(239)

(Loss)/profit before taxation

4

(348)

74

Income tax credit/(expense)

11

251

(Loss)/profit  for the year and total comprehensive income attributable to equity holders of the parent company

(97)

74

Basic (loss)/earnings per share – pence

12

(36.5)

112.4

Diluted (loss)/earnings per share – pence

12

(36.5)

112.4

Basic (loss)/earnings per share calculated on full number of shares in issue – pence

12

(0.7)

0.6

All amounts relate to continuing activities.

There were no other recognised gains and losses in the year.

Consolidated statement of financial position

Registered company number:  08833975

31 March

31 March

31 March

2014

2013

2012

Note

£000

£000

£000

Assets

Non-current assets

Property, plant and equipment

104

119

135

Intangible assets

16

24

31

Deferred taxation

18

258

378

143

166

Current assets

Inventories

14

4,667

3,331

3,250

Trade and other receivables

15

1,816

1,368

764

Cash and cash equivalents

7,578

196

97

14,061

4,895

4,111

Total assets

14,439

5,038

4,277

Current liabilities

Trade and other payables

16

3,111

1,599

924

Loans and borrowings

17

533

350

350

Current corporation tax liabilities

14

7

3

Total current liabilities

3,658

1,956

1,277

Non-current liabilities

Loans and borrowings

17

2,104

2,096

2,104

2,096

Total liabilities

3,658

4,060

3,373

Net assets

10,781

978

904

Equity and liabilities

Equity attributable to owners of the Company

Ordinary shares

19

132

52

52

Share Premium

9,458

Merger reserve

82

2,047

2,047

Retained earnings/(deficit)

1,109

(1,121)

(1,195)

Total equity

10,781

978

904

The financial statements were approved by the Board of Directors and authorised for issue on 30 June 2014.

P Blackwell

Director

Consolidated statement of changes in equity

Note

Share

Share

Merger

Retained

Total

capital

premium

reserve

deficit

Equity

£000

£000

£000

£000

£000

At 1 April 2012 as originally stated

17

2,082

(1,195)

904

Effect of merger accounting

2

35

(2,082)

2,047

Balance at 1 April 2012 restated

52

2,047

(1,195)

904

Profit for the year

74

74

Total comprehensive income for the year

74

74

Shares issued by subsidiary undertaking in the period

Share-based payments

20

Total contributions by owners of the parent

Balance at 31 March 2013

52

2,047

(1,121)

978

The following describes the nature and purpose of each reserve within owners’ equity:

Share capital

Amount subscribed for shares at nominal value.

Share premium

Amount subscribed for share capital in excess of nominal value less attributable share-issue expenses.

Merger reserve

Amounts attributable to equity in respect of merged subsidiary undertakings.

Retained deficit

Cumulative loss of the Group attributable to equity shareholders.

Consolidated statement of changes in equity continued

Note

Share

Share

Merger

Retained

Total

capital

premium

reserve

deficit

Equity

£000

£000

£000

£000

£000

At 1 April 2013 as originally stated

17

2,082

(1,121)

978

Effect of merger accounting

2

35

(2,082)

2,047

Balance at 1 April 2013 restated

52

2,047

(1,121)

978

Loss for the year

(97)

(97)

Total comprehensive income for the year

(97)

(97)

Shares issued in the period

80

10,259

10,339

Share issue expenses

(801)

(801)

Capital reduction in subsidiary

(1,986)

1,986

Cancellation of shares in subsidiary from merger reserve

21

3

24

Share-based payments

20

338

338

Total contributions by owners of the parent

80

9,458

(1,965)

2,327

9,900

Balance at 31 March 2014

132

9,458

82

1,109

10,781

The following describes the nature and purpose of each reserve within owners’ equity:

Share capital

Amount subscribed for shares at nominal value.

Share premium

Amount subscribed for share capital in excess of nominal value less attributable share-issue expenses.

Merger reserve

Amounts attributable to equity in respect of merged subsidiary undertakings.

Retained deficit

Cumulative loss of the Group attributable to equity shareholders.

Consolidated statement of cash flows

31 March

31 March

2014

2013

£000

£000

Cash flows from operating activities

(Loss)/profit before tax

(348)

74

Depreciation of property, plant and equipment

38

33

Amortisation of intangible assets

8

8

Share-based payment

338

36

115

Increase in inventories

(1,336)

(81)

Decrease in trade and other receivables

(448)

(604)

Increase in trade and other payables

2,211

817

Net cash generated from operating activities

463

247

Cash flows from investing activities

Purchase of property, plant and equipment

(22)

(17)

Interest received

1

1

Net cash generated used in investing activities

(21)

(16)

Cash flows from financing activities

8,000

Proceeds from the issuance of ordinary shares

(801)

Share issue expenses

Repayment of shareholder loans

Interest paid

(259)

(132)

Net cash generated from financing activities

6,940

(132)

Net increase in cash and cash equivalents

7,382

99

Cash and cash equivalents at the beginning of the year

196

97

Cash and cash equivalents at the end of the year

7,578

196

 

Company statement of financial position

Registered company number:  08833975

31 March

2014

Note

£000

Assets

Non-current assets

Investments

13

5,200

Current assets

Trade and other receivables

15

507

Cash and cash equivalents

7,433

7,940

Total assets

13,140

Current liabilities

Trade and other payables

16

569

Current corporation tax liabilities

7

Total current liabilities

576

Total liabilities

576

Net assets

12,564

Equity and liabilities

Equity attributable to owners of the Company

Ordinary shares

19

132

Share Premium

9,458

Merger reserve

2,809

Retained deficit

165

Total equity

12,564

P Blackwell

Director

The following describes the nature and purpose of each reserve within owners’ equity:

Share capital

Amount subscribed for shares at nominal value.

Share premium

Amount subscribed for share capital in excess of nominal value less attributable share-issue expenses.

Merger reserve

Amounts attributable to equity in respect of merged subsidiary undertakings.

Retained deficit

Cumulative loss of the Group attributable to equity shareholders.

Company statement of cash flows

31 March

2014

£000

Cash flows from operating activities

Loss from operations

(165)

Share-based payment

338

173

Increase in trade and other receivables

(507)

Increase in trade and other payables

568

Net cash generated from operating activities

234

Cash flows from financing activities

Proceeds from the issuance of ordinary shares

8,000

Share issue expenses

(801)

Net cash generated from financing activities

7,199

Net increase in cash and cash equivalents

7,433

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

7,433

1

General information

Scholium Group plc and its subsidiaries (together ‘the Group’) are engaged in the trading and retailing of rare and antiquarian books and works on paper primarily in the United Kingdom. The Company is a public company domiciled and incorporated in England and Wales (registered number 08833975). The address of its registered office 32 St George Street, London W1S 2EA. The Company was incorporated on 7 January 2014 for the purpose of becoming the new parent undertaking of the Group.

2

Basis of preparation and accounting policies

The Company’s basis of preparation and accounting policies have not changed since admission of the Company’s shares to trading on AIM and as reflected in the Company’s AIM Admission Document.

Operating profit and loss

Operating profit and loss comprises revenues less operating costs. Operating costs comprise adjustments for changes in inventories, employee costs including share-based payments, amortisation, depreciation and impairment and other operating expenses.

Expenditure

Expenditure is recognised in respect of goods and services received when supplied in accordance with contractual terms.  Provision is made when an obligation exists for a future liability relating to a past event and where the amount of the obligation can be reasonably estimated.

Exceptional items of expense

Exceptional items of expense are administrative costs which are large or unusual in nature and are not expected to recur on a regular basis.

3

Revenue

31 March

31 March

2014

Group

2013

Group

£000

£000

Book sales

6,474

5,772

Commissions

256

152

Other income

3

12

6,733

5,936

4

Profit  before taxation

Profit before taxation is after charging/(crediting):

31 March

2014

Group

31 March 2013

Group

£000

£000

Depreciation of property, plant and equipment

38

33

Amortisation of intangible assets

8

8

Operating lease rentals

351

343

Foreign currency losses

13

14

Share-based payment expense (note 20)

338

Employee costs (note 5)

1,015

681

Fees payable to the Company’s auditor (note 7)

39

9

5

Employee costs including Directors

31 March

31 March

2014

Group

2013

Group

£000

£000

Wages and salaries

880

611

Social Security Costs

123

55

Pension costs

12

12

Other employee benefits

3

Share-based payments

338

1,353

681

6

Average number of employees

31 March

31 March

2014

Group

2013

Group

Number

Number

Management

6

6

Operations

14

13

20

19

7

Auditors’ remuneration

31 March

31 March

2014

Group

2013

Group

£000

£000

Fees payable to the Company’s auditor for the audit of the Company’s consolidated financial statements

4

Fees payable to the Company’s auditor for the audit of subsidiary undertakings of the Company

14

7

Fees payable to the Company’s auditor for taxation compliance services to the Group

1

2

Fees payable to the Company’s auditor for services related to the institutional placing offer

20

39

9

Of the total auditors’ remuneration for the year £4,350 has been charged directly to equity (2013: £nil).

8

Directors’ remuneration

31 March

31 March

2014

Group and Company

2013

Group and Company

£000

£000

Salaries and fees

220

94

Social Security Costs

Pension costs

220

94

Information regarding the highest paid Director which comprises salary and benefits is as follows:

100

67

9

Exceptional items of expenditure

31 March

31 March

2014

Group

2013

Group

£

£

Accelerated share-based for replacement option scheme on listing

385

IPO expenses

228

613

On 27 March 2014 the previous share option incentive scheme within the Group, based upon ordinary shares within Bookbank Limited was accelerated on listing and a new share-incentive scheme put in place. The options related to the previous scheme are vested and exercisable on the date of issue. The expense comprises a share-based payment expense of £338,000 (note 20) and the related national insurance liability of £47,000.

On 28 March 2014 the Company was admitted to the AIM market and an associated placing of shares was made. The total costs were £1,029,000 of which £801,000 were attributed to share premium.

10

Financial expense

31 March

31 March

2014

Group

2013

Group

£000

£000

Interest on shareholder loan notes and director loans

259

231

Amortised loan expenses

31

8

290

239

31 March

31 March

2014

Group

2013

Group

£000

£000

Net finance income/(expense)

(289)

(238)

11

Income tax

31 March

31 March

2014

Group

2013

Group

£000

£000

Current tax (credit)/expense

Current  tax

7

Deferred tax:

Origination and reversal of temporary differences

(258)

Total tax(credit

(251)

The reasons for the difference between the actual tax (credit)/charge for the year and the standard rate of corporation tax in the United Kingdom applied to (loss)/profit for the year as follows:

31 March

31 March

2014

Group

2013

Group

£000

£000

(Loss)/profit before tax

(348)

74

Applied corporation tax rates:

20%

20%

Tax at the UK corporation tax rate of 20%

(70)

14

Expenses not deductible for tax purposes

53

7

Utilisation of previously unrecognised tax losses

(39)

2

Origination and reversal of temporary differences

(195)

(23)

Total tax credit

(251)

12

(Loss)/earnings per share

31 March

31 March

2014

Group

2013

Group

£000

£000

(Loss)/profit used in calculating basic and diluted (loss)/earnings per share

(97)

74

Number of shares

Weighted average number of shares for the purpose of basic earnings per share

265,813

65,807

Weighted average number of shares for the purpose of diluted earnings per share

265,813

65,807

Basic (loss)/earnings per share (pence per share)

(36.5)

112.4

Diluted (loss)/ earnings per share (pence per share)

(36.5)

112.4

Basic (loss)/earnings per share calculated on full number of shares in issue (pence per share)

(0.7)

0.6

Basic earnings per share amounts are calculated by dividing net (loss)/profit for the year or period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

Where the Group has incurred a loss in a year or period the diluted earnings per share is the same as the basic earnings per share as the loss has an anti-dilutive effect. The diluted loss per share for 2014 is therefore the same as the basic loss per share for the year and the diluted weighted average number of shares is the same as the basic weighted average number of shares.

Basic earnings per share calculated on the full number of shares in issue are calculated by dividing net (loss)/profit for the year or period attributable to ordinary equity holders of the parent by number of shares in issue at 31 March 2014, amounting to 13,200,325 shares, to reflect the considerable number of new shares, including placing shares, issued in late March 2014. See also note 19.

The Company has 1,455,675 potentially issuable shares all of which relate to the potential dilution from the Group’s share-options issued to the Directors and certain employees in the year (note 20).

13

Investments

31 March

2014

Company

£000

At 7 January 2014

Nominal value of shares issued

28

Fair-value adjustment taken to merger reserve

2,809

Deferred consideration

2,363

At 31 March 2013

5,200

The investment is in Bookbank Limited and is valued at fair-value on 20 March 2014 based upon quoted prices as at the date of the Group reorganisation. This is a Level 2 valuation under the fair-value hierarchy. On 22 March 2014 the deferred consideration was satisfied in full by the issue of ordinary shares in the Company (notes 2 and 19).

14

Inventories

31 March

31 March

2014

Group

2013

Group

£000

£000

Books & works on paper

4,667

3,331

Books & works on paper expensed in the year

3,954

3,602

15

Trade and other receivables

31 March

31 March

31 March

31 March

2014

Group

2013

Group

2014

Company

2013

Company

£000

£000

£000

£000

Trade and other receivables

1,412

1,018

Amounts due from Group undertakings

435

Other debtors

198

63

68

Prepayments and accrued income

206

287

4

1,816

1,368

507

The age profile trade and other receivables comprised:

£000

Current

846

One month past due

251

Two months past due

70

Three months past due

12

Over three months past due

237

Provision for doubtful debts

(4)

1,412

As at 31 March 2014, trade receivable of £4,000 (31 March 2013 and 31st March 2012 £nil) were considered past due and impaired. The other debtors’ balances are categorised as loans and receivables.  All amounts shown under trade and other receivables are due for payment within one year.

16

Trade and other payables

31 March

31 March

31 March

31 March

2014

Group

2013

Group

2014

Company

2013

Company

£000

£000

£000

£000

Trade creditors

2,355

980

197

Social security and other taxes

18

17

Accrued expenses

686

550

372

Other creditors

52

52

3,111

1,599

569

The directors consider the carrying value of trade and other payables approximate to their fair values.

17

Loans and borrowings

31 March

31 March

2014

Group

2013

Group

Current liabilities:

£000

£000

Loans from shareholders

350

350

Loans form directors

183

533

350

31 March

31 March

2014

Group

2013

Group

Non-current liabilities:

£000

£000

Loans from shareholders

2,104

2,104

 

The directors’ and shareholders’ loans of £350,000 carry interest at 5 per cent per annum and are secured by floating charges over the company’s assets.  Subsequent to 10th February 2013 this loan has been repayable on demand.

 

During the six months ended 30th September 2013 additional loans of £273,000 were advanced to the company. This amount carries interest at 12 per cent per year and was repayable in eight equal instalments.  By mutual agreement between the lenders and the company, repayments have been postponed, continuing to bear interest under the terms of the agreement.  On 3rd March 2014, £90,000 was repaid to the lenders.  Repayment of the remaining balance £183,000 was made after the year end.

18

Deferred tax

31 March

31 March

2014

Group

2013

Group

£000

£000

Included in non-current assets

258

Deferred tax gross movements

31 March

31 March

2014

Group

2013

Group

£000

£000

Opening balance

Credit to income statement

(258)

Closing balance

(258)

The deferred tax asset comprises:

31 March

31 March

2014

Group

2013

Group

£000

£000

Temporary differences on property, plant and equipment

Available losses

176

Other temporary and deductible differences

82

Closing balance

258

Deferred tax is calculated in full on temporary differences under the liability method using the tax rates expected for future periods of 20%. The deferred tax has arisen due to the availability of trading losses The Group has unutilised tax allowances of £258,000 at expected tax rates in future periods.

19

Share capital

31 March

31 March

2014

Group and Company

2013

Group

Ordinary shares of £0.10 each

£000

£000

At the beginning of the year

52

52

Issued in the year

80

At the end of the year

132

52

Number of shares

31 March

31 March

2014

Group and Company

2013

Group

Ordinary shares of £0.10 each

Number

Number

At the beginning of the year

Issued in the year in exchange for Bookbank Limited shares

5,200,325

Placing of shares on admission to AIM

8,000,000

At the end of the year

13,200,325

The introduction of the new holding company constitutes a Group reconstruction and has been accounted for using merger accounting principles. Therefore the consolidated financial statements of Scholium Group plc are presented as if Scholium Group plc has always been the holding company for the Group and the share capital issued on this date treated as if issued in the earliest year presented.

Accordingly, the results of the Group for the entire year ended 31 March 2014 and the results for the comparative year ended 31 March 2013 are also prepared on this basis.

Share-issue costs of £801,000 have been deducted from the share premium in the year. A further £228,000 has been expensed (note 9).

20

Share-based payment arrangements

Scholium Group plc operates three equity-settled share based remuneration scheme for employees.

The first is a replacement option scheme on behalf of B Shapero and P Guillemet, both senior managers of the Company. The share options issued under this scheme are fully vested on 27 March 2014, the date of issue. They have been valued at the intrinsic value of the options on the date of issue being the market price of the Company’s shares on admission to AIM of £1.00 and the share option prices of £0.154. These options are immediately exercisable.

The second scheme (EMI performance scheme) and the third scheme combine a long term incentive scheme and an unapproved scheme for certain senior management and executive Directors. These schemes were put in place on 27 March 2014 but effective from 1 April 2014. The options held under these schemes are subject to performance conditions and vest, subject to annual performance criteria, over three years.

Equity-settled share-based payments in respect of the second and third schemes are measured at fair value (excluding the effect of non-market-based vesting conditions) as determined through use of the Black-Scholes technique, at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group and Company’s estimate of shares that will eventually vest and adjusted for the effect of non-market-based vesting conditions.

21

Commitments

There were no outstanding capital commitments at 31 March 2014 (31 March 2013: £nil).

22

Events after the balance sheet date

There are no significant post-balance sheet events.

Additional Information

The financial information included in this statement does not constitute the Group’s statutory accounts (within the meaning of section 434 of the Companies Act 2006) for the years ended 31 March 2014 or 2013, but is derived from those accounts. Statutory accounts for 2013 have been delivered to the Registrar of Companies and those for 2014 will be delivered following the Company’s Annual General Meeting. The auditors have reported on those accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain statements under s498(2) or (3) Companies Act 2006 or equivalent preceding legislation.

The Annual General Meeting of Scholium Group plc will be held on 4 September 2014.

Company statement of changes in equity

Share

Share

Merger

Retained

Total

capital

premium

Reserve

deficit

Equity

£000

£000

£000

£000

£000

At 7 January 2014

Loss for the period

(173)

(173)

Total comprehensive income for the period

(173)

(173)

Shares issued in the period

132

10,259

10,391

Share issue expenses

(801)

(801)

Investment in Bookbank Limited (note 13)

2,809

2,809

Share-based payments

338

338

Total contributions by owners of the parent

132

9,458

2,809

338

12,737

Balance at 31 March 2014

132

9,458

2,809

165

12,564