TIDMBNR
RNS Number : 1444L
Blenheim Natural Resources PLC
29 September 2016
29 September 2016
BLENHEIM NATURAL RESOURCES PLC
("Blenheim" or the "Company)
Final Results for the year ended 30 April 2016
Blenheim is pleased to announce its final results for the year
ended 30 April 2016.
Copies of the Company's annual report and financial statements
for the year ended 30 April 2016 will shortly be sent to
shareholders and will be available at the Company's website:
www.blenheimnaturalresources.com
For further information please contact:
Blenheim Natural Resources
Chris Ells Plc +44 (0) 1622 844601
Colin Aaronson/Jamie
Barklem/ Daniel Grant Thornton UK
Bush LLP +44 (0) 20 7383 5100
Nick Emerson SI Capital Ltd +44 (0)1483 413500
Lucy Williams Peterhouse Corporate
/ Duncan Vasey Finance Limited +44 (0) 20 7469 0932
Colin Rowbury Cornhill Capital Limited +44 (0) 20 7710 9610
The information contained within this announcement is considered
to be inside information, for the purposes of Article 7 of EU
Regulation 596/2014, prior to its release.
CHAIRMAN'S STATEMENT
Challenging times persist for the natural resources sector, but
I am pleased to report that Blenheim has finalised two transactions
since the beginning of 2016 and the Company continues to explore
opportunities for major transactions.
In February, the Company invested in IGS (International
Geoscience Services) Limited ("IGS"). IGS is a company which was
spun out of the British Geological Survey and, in addition to its
global consulting business, has created IGS Xplore, a cutting-edge
system for picking exploration targets from geoscientific data
using a unique knowledge-based approach.
In August, Blenheim signed a Subscription Option Agreement with
TAM Mining Limited, which holds the exclusive rights, via a local
subsidiary, to a highly prospective large copper/gold project in
the North Western Province of Zambia. At a cost to Blenheim of only
GBP1, the option allows the Company to acquire 7.5% of TAM's equity
by providing corporate and technical input.
The results for Blenheim for the year ended 30 April 2016 show a
loss of GBP234,588 (2015: GBP252,123). A proportion of this loss
relates to the further full impairment of the Company's investment
in African Eagle Resources Plc ("AFE") of GBP82,345 (2015:
GBP86,832). After AFE entered administration, as announced by
Blenheim on 3 February 2016, the Company then endeavoured to
acquire AFE as a shell and relist it in South Africa. After due
diligence by the Company, it was not deemed economic to pursue this
course of action.
Operating costs, including maintenance of the Company's AIM
listing, were GBP175,227 (2015: GBP86,748), whilst changes in fair
value of investments and profit on disposal of financial assets at
fair value provided a net gain of GBP51,954 (2015: loss of
GBP49,243).
We reiterate our stated strategy of making investments in "good
value" companies and projects in the natural resources sector,
technology associated with the natural resources sector, and in the
agribusiness sector by way of cash and Blenheim stock. As an
investment company, we are well positioned to take advantage of low
valuations in these core sectors.
We continue to receive many investment propositions and we are
confident that we will be able to make strategic investments to
benefit Blenheim shareholders.
I look forward to providing the Company's shareholders with
future updates.
Chris Ells
Chairman
28 September 2016
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 30 APRIL 2016
Year ended Year ended
30 April 30 April
2016 2015
Notes GBP GBP
CONTINUING OPERATIONS
REVENUE 6,196 2,361
Administrative expenses (175,227) (86,748)
Impairment of available
for sale financial assets (82,345) (86,832)
Other gains/(losses) -
net 2 51,954 (49,243)
OPERATING LOSS (199,422) (220,462)
Finance income 315 36
Finance costs (35,481) (31,697)
LOSS BEFORE INCOME TAX (234,588) (252,123)
Income tax expense - -
LOSS FOR THE YEAR (234,588) (252,123)
OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR (234,588) (252,123)
=========== ===========
EARNINGS PER SHARE
(expressed in pence per
share)
Basic and diluted 3 (0.23) (0.35)
=========== ===========
STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2016
30 April 30 April
2016 2015
Notes GBP GBP
ASSETS
NON-CURRENT ASSETS
Available for sale financial
assets 4 260,463 82,345
------------ ------------
CURRENT ASSETS
Financial assets at fair
value through profit
or loss 5 297,378 141,334
Cash and cash equivalents 6 207,503 39,829
Prepayments 22,490 13,704
------------ ------------
527,371 194,867
TOTAL ASSETS 787,834 277,212
============ ============
EQUITY
Share capital 7 1,350,045 1,238,545
Share premium 7 1,383,432 801,614
Other reserves 8 501,582 493,419
Retained earnings (2,746,862) (2,512,274)
------------ ------------
TOTAL EQUITY 488,197 21,304
------------ ------------
LIABILITIES
NON-CURRENT LIABILITIES
Borrowings 9 - 226,513
CURRENT LIABILITIES
Borrowings 9 245,476 -
Trade and other payables 54,161 29,395
------------ ------------
TOTAL LIABILITIES 299,637 255,908
------------ ------------
TOTAL EQUITY AND LIABILITIES 787,834 277,212
============ ============
STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 30 APRIL 2016
Share Share Other Retained
capital premium reserves earnings Total
GBP GBP GBP GBP GBP
Balance at 1
May 2014 1,207,045 633,164 493,419 (2,260,151) 73,477
Loss for the
year - - - (252,123) (252,123)
Total comprehensive
income for the
year - - - (252,123) (252,123)
---------- ---------- ---------- ------------ ----------
Issue of share
capital 31,500 173,250 - - 204,750
Issue costs - (4,800) - - (4,800)
---------- ---------- ---------- ------------ ----------
Total transactions
with owners,
recognised directly
in equity 31,500 168,450 - - 199,950
---------- ---------- ---------- ------------ ----------
Balance at 30
April 2015 1,238,545 801,614 493,419 (2,512,274) 21,304
Balance at 1
May 2015 1,238,545 801,614 493,419 (2,512,274) 21,304
Loss for the
year - - - (234,588) (234,588)
Total comprehensive
income for the
year - - - (234,588) (234,588)
---------- ---------- ---------- ------------ ----------
Issue of share
capital 111,500 670,250 - - 781,750
Issue costs - (88,432) - - (88,432)
Issue of share
options and warrants - - 8,163 - 8,163
Total transactions
with owners,
recognised directly
in equity 111,500 581,818 8,163 - 701,481
Balance at 30
April 2016 1,350,045 1,383,432 501,582 (2,746,862) 488,197
STATEMENT OF CASH FLOWS
FOR THE YEARED 30 APRIL 2016
Year ended Year ended
30 April 30 April
2016 2015
GBP GBP
Cash flows from operating
activities
Loss before income tax (234,588) (252,123)
Finance costs 35,481 31,697
Finance income (315) (36)
(Gain)/loss on disposal of
trade investments (51,954) 49,243
Impairment of available for
sale financial assets 82,345 86,832
Share based payments 8,163 -
(Increase)/decrease in trade
and other receivables (8,786) 3,226
Increase/(decrease) in trade
and other payables 21,166 (2,273)
----------- -----------
Net cash used in operating
activities (148,488) (83,434)
Cash flows from investing
activities
Purchase of available for
sale financial assets (260,463) (12,546)
Purchase of financial assets
at fair value through profit
or loss (210,757) (147,126)
Proceeds from disposal of
financial assets at fair
value through profit or loss 106,950 27,299
----------- -----------
Net cash used in investing
activities (364,270) (132,373)
Cash flows from financing
activities
Proceeds from the issue of
share capital 781,750 204,750
Share issue expenses paid (84,832) (4,800)
Interest paid (16,518) (16,500)
Interest received 32 36
Net cash generated from financing
activities 680,432 183,486
----------- -----------
Increase/(decrease) in cash
and cash equivalents 167,674 (32,321)
Cash and cash equivalents
at the beginning of the year 39,829 72,150
Cash and cash equivalents
at the end of the year 207,503 39,829
=========== ===========
NOTES TO THE FINAL RESULTS
1. ACCOUNTING POLICIES
General information
Blenheim Natural Resources Plc is a public limited company
incorporated in England and Wales under the Companies Act
(registered number 02956279). The Company is domiciled in the
United Kingdom and its registered address is Hyde Park House, 5
Manfred Road, London, SW15 2RS. The Company's shares are traded on
the AIM market of the London Stock Exchange.
Basis of preparation
These financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) and IFRS
Interpretations Committee (IFRS IC) interpretations as adopted by
the European Union and the Companies Act 2006 applicable to
companies reporting under IFRS. The financial statements have been
prepared under the historical cost convention, as modified by the
revaluation of available-for-sale financial assets and financial
assets at fair value through profit or loss.
The Company is an investment entity and has therefore prepared
its financial statement on this basis.
The preparation of financial statements in conformity with IFRS
requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of
applying the Company's accounting policies.
The financial information set out in this announcement does not
constitute the Company's statutory accounts for the year ended 30
April 2016 or the year ended 30 April 2015 under the meaning of
Section 434 the Companies Act 2006 but is derived from those
accounts. The annual report and financial statements for the year
ended 30 April 2016 were approved by the Board of Directors on 28
September 2016 along with this announcement, but have not yet been
delivered to the Registrar of Companies. The annual report and
financial statements will be delivered to the Registrar of
Companies following the Company's Annual General Meeting.
The auditor's report on the statutory accounts for the year
ended 30 April 2016 is unqualified with an emphasis of matter
paragraph. This emphasis of matter paragraph indicates the
existence of a material uncertainty which may cast significant
doubt about the Company's ability to continue as a going concern
and notes that the ability to continue as a going concern is
dependent on the Company's ability to raise funds, renegotiate the
terms of its convertible loans, and generate returns from its
investments.
The statutory accounts for the year ended 30 April 2015 have
been filed with the Registrar of Companies. The auditor's report on
the statutory accounts for the years ended 30 April 2015 was
unqualified and did not contain a reference to any matters to which
the auditors drew attention by way of emphasis without qualifying
their report, and did not contain a statement under section 498(2)
or 498(3) of the Companies Act 2006.
Going concern
The financial statements have been prepared assuming the Company
will continue as a going concern. Under the going concern
assumption, an entity is ordinarily viewed as continuing in
business for the foreseeable future with neither the intention nor
the necessity of liquidation, ceasing trading or seeking protection
from creditors pursuant to laws or regulations.
The assessment has been made on the Company's anticipated
activities which have been included in the financial forecast and
in which Management has taken into account all available
information for the foreseeable future, in particular for the 12
months from the date of approval of the financial statements. It
also considers the Directors' assessment regarding the potential
settlement of the convertible loan notes. The Directors carefully
manage running costs and post year end, have reduced their fees in
order to conserve cash resources.
Whilst the Directors remain actively cost conscious and value
focused, the Company will still need to attract additional funding
to meet its strategic goals.
To this end the Directors are in discussions with various
parties in relation to potential acquisitions that have been
identified and which are expected to contribute positively to cash
flow in the short to medium term. The Directors are also looking at
funding options, including the raising funds on the open market, to
take advantage of acquisitions potentially available and to fund
ongoing operations.
On this basis, the Directors have formed a judgement, at the
time of approving the financial statements, that the Company has
adequate resources to continue in operational existence for the
foreseeable future. For this reason the Directors have adopted the
going concern basis in preparing the financial statements.
Should the Company be unable to continue operations, adjustments
would have to be made to reduce the value of the assets to their
recoverable amounts, to provide for future liabilities which might
arise and to reclassify non-current assets to current assets.
2. OTHER GAINS/(LOSSES) - NET
30 April 30 April
2016 2015
GBP GBP
Fair value gains/(losses) on
financial assets at fair value
through profit or loss 51,954 (49,243)
======== ========
3. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year.
Diluted earnings per share is calculated using the weighted
average number of shares adjusted to assume the conversion of all
dilutive potential ordinary shares.
Reconciliations are set out below.
30 April
2016
Weighted
average
number Per-share
Earnings of amount
GBP shares pence
Basic EPS
Earnings attributable to
ordinary shareholders (234,588) 102,397,288 (0.23)
Effect of dilutive securities - - -
--------- ----------- ---------
Diluted EPS
Adjusted earnings (234,588) 102,397,288 (0.23)
========= =========== =========
30 April
2015
Weighted
average
number Per-share
Earnings of amount
GBP shares pence
Basic EPS
Earnings attributable to
ordinary shareholders (252,123) 71,151,200 (0.35)
Effect of dilutive securities - - -
--------- ---------- ---------
Diluted EPS
Adjusted earnings (252,123) 71,151,200 (0.35)
========= ========== =========
On 30 October 2015 the Directors passed a resolution to
undertake a sub division of the Ordinary Shares in issue at a rate
of 100 for 1. Following the sub division the nominal value of each
share became 0.10 pence per share from 10 pence per share. As a
consequence the weighted average number of shares in the
comparative has been restated.
In accordance with IAS 33 the share options in issue do not have
a dilutive impact on earnings per share for the year ended 30 April
2016.
4. AVAILABLE FOR SALE FINANCIAL ASSETS
2016 2015
GBP GBP
At 1 May 82,345 156,631
Additions 260,463 12,546
Impairment (82,345) (86,832)
-------- --------
At 30 April 260,463 82,345
======== ========
The above represents the Company's strategic equity holding in
African Eagle Resources Plc and IGS (International Geoscience
Services) Limited referred to in the Chairman's Statement.
5. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
2016 2015
GBP GBP
Equity securities - held for
trading 297,378 141,334
======= =======
Financial assets at fair value through profit or loss are
presented within 'operating activities' as part of changes in
working capital in the Statement of Cash Flows.
Changes in fair values of financial assets at fair value through
profit or loss are recorded in 'other gains/(losses) - net' in the
Income Statement.
The fair value of all equity securities is based on their
current bid prices in an active market.
6. CASH AND CASH EQUIVALENTS
2016 2015
GBP GBP
Cash at bank 207,079 38,578
Cash held in investment portfolio 424 1,251
------- ------
207,503 39,829
======= ======
7. SHARE CAPITAL
Number Ordinary Deferred Share
of shares shares shares premium Total
No. GBP GBP GBP GBP
At 1 May 2014 412,909 41,335 1,165,710 633,164 1,840,209
Issue of shares 315,000 31,500 - 173,250 204,750
Share issue
costs - - - (4,800) (4,800)
At 30 April
2015 727,909 72,835 1,165,710 801,614 2,040,159
============ ========= ========== ========== ==========
At 1 May 2015 727,909 72,835 1,165,710 801,614 2,040,159
Sub division 72,062,991 - - - -
of shares
Issue of shares 111,500,000 111,500 - 670,250 781,750
Share issue
costs - - - (88,432) (88,432)
At 30 April
2016 184,290,900 184,335 1,165,710 1,383,432 2,733,477
============ ========= ========== ========== ==========
On 30 October 2015 the Directors passed a resolution to
undertake a sub division of the Ordinary Shares in issue at a rate
of 100 for 1. Following the sub division the nominal value of each
share became 0.10 pence per share from 10 pence per share.
On 30 October 2015, 31,500,000 Ordinary Shares of 0.10p each
were allotted as fully paid at a premium of 0.35 pence per share
during the year.
On 17 December 2015, 80,000,000 Ordinary Shares of 0.10p each
were allotted as fully paid at a premium of 0.70 pence per share
during the year.
8. OTHER RESERVES
Shares Share
to be option Merger
issued reserve reserve Total
At 1 May 2014 76,135 - 417,284 493,419
At 30 April 2015 76,135 - 417,284 493,419
Issue of share options
and warrants - 8,163 - 8,163
At 30 April 2016 76,135 8,163 417,284 501,582
======== ========= ========= ========
Merger relief reserve of GBP417,284 (2015: GBP417,284) arose in
the period ended 31 December 1995 and relates to shares that were
issued on a share for share basis in relation to the Langdon
(Coffee & Tea) Limited transaction.
Shares to be issued comprise the equity component of the
compound financial instruments issued in the past.
Share option reserve comprises the fair value at the date of
grant share options and warrants issued in the year.
9. BORROWINGS
2016 2015
GBP GBP
Non-current:
Convertible loan notes - 226,513
======= =======
Current:
Convertible loan notes 245,476 -
======= =======
Terms and debt repayment schedule:
GBP GBP
Less than 1 year 245,476 -
Between 1 and 2 years - 226,513
======= =======
Borrowings represent convertible loan notes redeemable on or
before 15 April 2017, following a change in the original redeemable
date of 15 October 2016. The loan notes attract an interest charge
of 6% per annum. If converted the loan notes can be exchanged for 1
ordinary share for every 0.65p of loan notes held.
The carrying amounts and the fair value of borrowings are as
follows:
Carrying amount Fair value
2016 2015 2016 2015
GBP GBP GBP GBP
Convertible
loan notes 245,476 226,513 275,000 275,000
======== ======== ======== ========
The carrying amounts of the Company's borrowings are denominated
in UK sterling.
The convertible bond recognised at the year-end is calculated as
follows:
2016 2015
GBP GBP
Face value of convertible loan
notes issued 275,000 275,000
Equity component (76,135) (76,135)
-------- --------
Liability component on initial
recognition 198,865 198,865
Interest expense 94,778 59,315
Interest paid (48,167) (31,667)
-------- --------
245,476 226,513
======== ========
The fair value has been calculated using discounted cash flows
at a rate of 15% per annum.
10. SHARE-BASED PAYMENT TRANSACTIONS
The measurement requirements of IFRS 2 have been implemented in
respect of share options that were granted after 27 May 2009. The
expense recognised for share based payments made during the year is
GBP8,163 (2015: GBPnil).
10,000,000 and 9,000,000 options were issued during the year
ended 30 April 2016, exercisable at 0.80 pence and 0.65 pence,
respectively. There are no vesting conditions and the options are
exercisable any time up to 15 October 2018 and 5 April 2017
respectively.
Movement in issued share options during the year
The table illustrates the number and weighted average exercise
price (WAEP) of, and movements in, share options during the year as
follows:
No of WAEP
options
Outstanding at the beginning of 1.25p
the period 3,500,000
Granted during the
year 19,000,000 0.72p
Outstanding at the
end of the period 22,500,000 0.96p
========== ======
Exercisable at the
end of the period 22,500,000 0.96p
========== ======
The fair value of the options granted in the year have been
calculated using the Black Scholes model assuming the inputs shown
below:
- Grant date 15 January 2015 30 October 3 November
2015 2015
- Number of options
granted 3,500,000 10,000,000 9,000,000
- Share price at
grant date 60p 0.80p 0.80p
- Exercise price
at grant date GBP1.25 0.80p 0.65p
- Risk free rate 2.75% 2.75% 2.75%
- Option life 1 year 3 years 1.25 years
- Expected volatility 7.83% 10.81% 10.81%
- Expected dividend
yield 0% 0% 0%
- Fair value of GBP0.00 GBP8,027 GBP136
option
This information is provided by RNS
The company news service from the London Stock Exchange
END
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