Directors’ Shareholdings

Scholium Group plc

(“Scholium” or the “Company”)

Directors/PDMR Shareholding

 The board is pleased to announce that, on 9 February 2015, Thomas James Jennings CBE and Simon Southwood notified the Company that they had acquired shares in the Company on the same day.  The table below details the purchases:

Shares owned before the transaction Shares purchased Price paid Shares owned after the transaction % of the currently issued ordinary share capital
Thomas James Jennings CBE 1,731,320 1,200,000 42p 2,931,320 21.6%
Simon Southwood 0 20,000 47.925p 20,000 0.1%

 

For further information, please contact:

Scholium Group plc

Jasper Allen, Chairman

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

Disposal, Board Changes & Trading Update

Scholium Group plc

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

Disposal, Board Changes & Trading Update

9 February 2014

Proposed Disposal of South Kensington Operations and Board Changes

The Board is pleased to announce that, following a review of operations, it has agreed outline terms for the disposal of its South Kensington operations, South Kensington Books and Ultimate Library. South Kensington Books, which specialises principally in the retail of illustrated contemporary art, architecture and photography books, and Ultimate Library, which creates bespoke libraries on behalf of luxury hotels and resorts, and high-end residences, have become less related to the Group’s core businesses, Shapero Rare Books and Scholium Trading. A company controlled by Philip Blackwell, the current Chief Executive Officer, will acquire the South Kensington operations.

With effect from 30 March, 2015, Philip Blackwell will step aside as Chief Executive in order to focus his attention on the South Kensington operations. Jasper Allen, the Chairman, will act as Executive Chairman whilst a suitable executive is identified to additionally strengthen the board. Philip Blackwell will remain on the board as a non-executive director.

Terms of the Disposal

The agreed terms, which are subject to final contract, provide for cash consideration of £140,000, representing a premium of 15% to the value of the unaudited attributable net assets as at 31 December 2014.

In the year to 31 March 2014, these businesses generated turnover of £650,088 and a profit before taxation, after allocation of central costs, of £24,351. Completion of this sale is expected to take place on or around 30 April 2015 with full details to be confirmed in due course.

Trading Update

Shapero Rare Books

Whilst revenues to date have been steady, we have seen a slowdown in sales, particularly larger value, higher margin sales, to customers from countries that are subject to material political instability and sanctions. Although these clients do have the propensity to be very active in the Spring fairs which, as ever, have a significant impact on the Group’s expected full year performance, the Board considers that a continuation of current trends would make it unlikely that revenues for the full year would be materially ahead of last year.

Scholium Trading

Scholium Trading has been involved in a number of profitable, albeit smaller, transactions across various asset classes, including sculpture, coins, paintings, and ceramics. Nonetheless, we had been hopeful of concluding a significant transaction very recently. Unfortunately, the assets were deemed to be of national importance and export licences were not granted. As a result there will be a corresponding significant shortfall in anticipated revenue and profit.

South Kensington Operations

South Kensington Books and Ultimate Library have generated increased returns, although small in the context of the Group.

Outlook

As a result of the issues detailed above, the Board is no longer confident, notwithstanding that the Group’s most important trade fairs take place in the next two months, that Scholium will meet market expectations for the year ending 31st March 2015 and in the worst case could experience a substantial reduction in profitability

The balance sheet of the Group remains strong with no indebtedness, cash at 31st December 2014 of approximately £2.4 million and a net asset value (unaudited) at the same date of approximately £10.5 million, equating to approximately 77p per share. Notwithstanding disappointing year-to-date performance, the Directors remain confident in the high levels of quality stock built up in Shapero Rare Books and look forward to converting the positive experience gained in Scholium Trading to larger trades in the coming year.

Jasper Allen, Executive Chairman of the Group commented, “Despite the disappointing performance in the current year, the Group remains strong with healthy levels of cash and excellent stock. With a clear focus on Shapero Rare Books and Scholium Trading, we are working hard to secure larger transactions, which have a significant impact on profitability, and continue to have a positive outlook for the future of the Group.”

Scholium Group plcJasper Allen, ChairmanSimon Southwood, Chief Financial Officer +44 (0)20 7493 0876
WH Ireland Ltd – Nominated AdviserChris Fielding/Mark Leonard +44 (0)20 7220 1666
Whitman Howard Ltd – BrokerRanald McGregor-Smith / Niall Devins +44 (0)20 7087 4550

 

 

Press on Scholium

Rare books dealer Scholium to float on AIM junior … – This is Money

Daily Mail – 21 Feb 2014

Scholium joins AIM to boost art business

The Times (subscription)-26 Feb 2014

Rare books dealer Scholium Group reveals IPO plans

Daily Telegraph -26 Feb 2014

Rare books dealer Scholium Group unveils AIM flotation – Business …

Evening Standard – 26 Feb

Oligarchs’ bookshop listed for £16million on AIM

Daily Express -2 Mar 2014

MIDAS SHARE TIPS: Rare book dealer Scholium plans float to buy …

Mail on Sunday- 8 Mar 2014

Tempus: a little taste of sweet and sour

The Times – 8 Mar 2014

Rare books dealer Scholium ‘could double or treble in size’ as it is set to float on AIM market

Daily Mail – 21 Mar 2014

Rare book dealer Scholium to start trading on Aim this week

CITY A.M. -24 Mar 2014

Nick Goodway: A barrage on menu for Osborne over annuities 

Evening Standard -25 Mar 2014

Bernard J. Shapero

Chief Executive Director and Founder of Shapero Rare Books

Bernard is an experienced international dealer in rare books and works on paper. He began dealing in rare books in 1979 from a stall in Gray’s Antique Market, moving to Holland Park in 1989 and Mayfair in 1996. He has specialist knowledge primarily in works of Natural History, Travel and Literature.

Thomas James Jennings CBE

Non-executive director, Scholium Group plc

Thomas is a Fellow of the Institute of Mechanical Engineers. In 1975 he joined the Rotary Group, a family controlled multi-national mechanical and electrical engineering business, and in 1999 was appointed Chairman and Managing Director. He remained in this role until the Group was sold for over £100 million in 2008 to Hastie Limited. In addition, he was Chairman of the Cromwell Hospital in West London from 2006 until 2008, when this business was sold to BUPA for in excess of £90 million. Since 2008 he has controlled the family office and managed various private equity business interests. Thomas James Jennings CBE is a Fellow of the Royal Society of Arts.

Charles Sebag-Montefiore

Non-executive director, Scholium Group plc

Charles qualified as a Chartered Accountant in 1974. He was a corporate advisory partner of Grieveson Grant & Co from 1985 until 1986 and an executive director of Kleinwort Benson Securities Ltd from 1986 until 1994, of Elderstreet Private Equity from 1997 until 1999 and of IDJ Limited from 1999 until 2004. In 2004 he became head of corporate finance and finance director of Ludgate Investments Ltd, retiring at the end of 2012; he was then appointed a non-executive director of that company. He is a Trustee of the National Gallery and Treasurer of a number of charities. For over 40 years, he has collected rare books on the history of collecting fine and decorative arts and is the author of two books on that subject.

Graham Noble

Non-Executive Director, Scholium Group plc

Graham has been a FCA regulated person since 2001, having worked for a number of financial institutions including UBS and Credit Suisse. In 2010 Graham co-founded Rampart Capital, an investment management business based in Mayfair, London. Graham acts as a non executive director for What Group Limited and as Chief Investment Officer for Soho Estates Holdings.

Philip Blackwell

Non-executive Director, Scholium Group plc

Philip founded Bookbank Limited in March 2009. Mr Blackwell trained as a bookseller and publisher before completing an MBA at London Business School in 1996. After four years as a strategy consultant with Cap Gemini, Mr Blackwell became chief executive officer of Blackwell Limited in 2000 until 2006 and in 2002 became a director of Blackwell Publishing (Holdings) Limited until its sale for approximately £572 million in 2007. Mr Blackwell is a former member of the Bodleian Library Development Board, and the Google publisher content advisory board, and is a trustee of the Royal Green Jackets museum in Winchester. Mr Blackwell’s family has owned rare and antiquarian book dealing businesses for over 100 years.

Dividend Timetable

Scholium Group plc

(“Scholium” or the “Company”)

Dividend Timetable

On 15 December 2014, Scholium announced that it would pay an interim dividend of 0.5p to shareholders on its register on 16 January 2015.  The Company’s shares will become ex-dividend on 15 January 2015 and payment will be made on 30 January 2015.

 

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

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