V22 Plc - Interim Results for Half-Year Ended 30 June 2017

V22 Plc

("V22", the "Company" or, together with its subsidiaries, the "Group")

Interim Results for Half-Year Ended 30 June 2017

V22 Plc announces the Group's results for the six-month period to 30 June 2017.

Co-Chairperson's statement

• In the half year to 30 June 2017, V22 generated a profit of GBP 51,282 (Six months to 30 June 2016: profit of GBP £190,232).
• The Group's net asset value per share (valuing the art portfolio at cost) increased to 3.94 pence (As at 30 June 2016: 1.55 pence).
• The Group's net asset value per share (valuing the art portfolio at GBP 1,670,429, the valuation as at 31 December 2015) increased to 7.47 pence (As at 30 June 2016: 5.10p).
• As at 30 June 2017 the Group had a cash balance of GBP 234,586 (As at 30 June2016: GBP 47,690) .

The Directors are pleased to report our results for the half year. The profit generated reflects the uplift in the value of our property portfolio, whilst the operating loss reflects continued investment in longer term leases. Much of the profit for the period was generated through the sale of the option on the freehold of our Peckham/South Bermondsey premises. As reported in May 2016, V22 accrued an interest entitling the Company to an option to acquire 30 per cent of the freehold interest in the building. During the period, the Company sold the remaining 50 per cent of its option for a consideration of GBP 350,000. The consideration is on a deferred basis, GBP 100,000 of which has already been received by the Company and the other GBP 250,000 is due to be received 25 December 2017.

The success of our property strategy is also reflected in the increase in net asset value. Our subsidiary V22 London Ltd entered into a 125-year lease on Louise House in Forest Hill, London, in May 2016. A premium of GBP 250,000 was paid for the long leasehold and the upside of a revised valuation has been reflected in the accounts at the end of 2016 and at this half year.

As part of the Company's growth strategy we have taken on leases and management of three new spaces during the half year to June 2017. These include premises in EC2A on the city fringe, the Viewtube in the Olympic Park, and the Grade II* Manor House Library building in South East London.

Our management of the Viewtube is in partnership with Poplar HARCA and Dot Dot Dot Property Ltd. We are developing the concept of a studio market, which aims to provide studio space for designer and artists which is open to the public on a regular basis. If successful we would like to replicate this model in further buildings.

The Manor House Library continues to be run as a public library by the not-for-profit V22 Foundation, whilst additional space in the building is let and managed by V22 London Ltd. This is the second public library run by V22 Foundation. We strongly believe that as public libraries close across London and the UK, the not-for-profit, charitable and private sectors need to step in to support the continued operation of these spaces as libraries and protect these valuable community resources.

Also in the half year, V22 Silvertown Studios Ltd was incorporated to deliver Silvertown Studios in the Royal Docks. V22 Silvertown Studios will comprise up to 200 purpose-built structures and shipping containers repurposed as workspace and studios, exhibition and community spaces, as well as maker/show space and pop-up retail for London's creative community. The new community will be set within a section of a 62-acre Silvertown development site. V22 Silvertown Studios will be delivered in partnership with the landowners, the Greater London Authority and the Silvertown Partnership, who are responsible for delivering the wider Silvertown regeneration project. As reported in July 2017, we have received planning permission from the London Borough of Newham for the project, and look forward to starting work on site later this year.

V22 continues to expand in scope and reputation and, as ever, we would like to thank our artists, shareholders, staff, business partners, advisors and friends for their on-going support.

Co-Chairperson	Co-Chairperson
G. Hunt	K. T. Cranswick

29 September 2017

V22 PLC Interim Report for Half-Year Ended 30 June 2017
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTHS ENDED 30 JUNE 2017
	Note		Unaudited		Unaudited		Audited
			6 months to		6 months to		12 Months to
			30-Jun-17		30-Jun-16		31-Dec-16
			GBP		GBP		GBP
TURNOVER			538,812		587,005		1,244,639
Cost of sales			(489,329)		(496,407)		(950,670)
GROSS PROFIT			49,483		90,598		293,969
Administration expenses			(204,136)		(165,784)		(351,545)
Other operating Income	1		100,000		54,545		620,981
OPERATING (LOSS)/PROFIT			(54,653)		(20,641)		563,405
Gain on disposal of investments	2		125,000		225,000		225,000
Value adjustment on investments			-		-		225,000
Interest payable and similar charges			(2,065)		(3,218)		6,628
PROFIT BEFORE TAXATION			68,282		201,141		1,006,777
Tax on profit on ordinary activities			(17,000)		(10,909)		(113,340)
PROFIT FOR THE FINANCIAL YEAR			51,282		190,232		893,437
Other comprehensive income			-		-		-
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR			51,282		190,232		893,437
PROFIT PER SHARE - basic			0.16p		0.60p		2.85p
Note 1
Gain on fair value of investment property
Note 2
Gain on sale of option

V22 PLC Interim Report for Half-Year Ended 30 June 2017
GROUP BALANCE SHEET
30 JUNE 2017
	Unaudited		Unaudited			Audited
	30-Jun-17		30-Jun-16			31-Dec-16
	GBP		GBP			GBP
FIXED ASSETS
Tangible assets	283,679		203,659			231,240
Investment property	900,000		225,615			800,000
Investments	-		-			225,000
	1,183,679		429,274			1,256,240
CURRENT ASSETS
Debtors	365,969		258,195			143,144
Trade investments	558,181		558,181			558,181
Cash at bank and in hand	234,586		47,690			63,946
	1,158,736		864,066			765,271
CREDITORS:
Amounts falling due within one year	(552,389)		(745,684)			(608,791)
NET CURRENT ASSETS	606,347		118,382			156,480
TOTAL ASSETS LESS CURRRENT LIABILITIES	1,790,026		547,656			1,412,720
CREDITORS:
Amounts falling due after more than one year	(423,928)		(42,654)			(114,902)
PROVISION FOR LIABILITIES	(125,331)		(18,720)			(108,331)
NET ASSETS	1,240,767		486,282			1,189,487
CAPITAL AND RESERVES ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
Called up share capital	6,650		6,650			6,650
Share premium account	713,289		713,289			713,289
Profit and Loss account	520,828		(233,657)			469,548
SHAREHOLDERS' FUNDS	1,240,767		486,282			1,189,487
Net Asset Value per share (valuing current asset investments at the lowers of cost and net realisable value)	3.94p		1.55p			3.78p
Net Asset Value per share if current asset investments valued at last valuation (31 December 2015)	7.47p		5.10p			7.31p

Interim report notes

1. The interim report was approved by the Directors on 29 September 2017.
2. The financial information for the period ended 30 June 2017 has not been audited or reviewed by the Group's auditors and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.
3. These interim financial statements consolidate the financial statements of the Company and its subsidiaries, V22 London Limited and V22 Silvertown Studios.
4. Current asset investments - art collection. The art collection which is valued at the lower of cost and net realisable value.
5. The collection has not been revalued at the half year, therefore for the purposes of these interim results and to assess the value of the art portfolio, the Directors have used the valuation as at 31 December 2015 of GBP 1,670,429.

The Directors of the Company accept responsibility for this announcement.

-ENDS-

Contact Details:

V22 PLC:
Tara Cranswick
Email: [e-mail]

PETERHOUSE CORPORATE FINANCE LIMITED
Fungai Ndoro and Eran Zucker
[phone]