TIDMGRIT
RNS Number : 5809N
Global Resources Investment Tst PLC
30 September 2021
Global Resources Investment Trust plc
'GRIT' or 'the Company'
Half-year results for the six months ended 30 June 2021
Chairman's statement
I'm pleased to report that the Company has concluded its
preparations for its re-launch as a natural resources investment
trust. As soon as the formalities have been completed, two of the
principal participants in the latest round of funding, Malcolm
Burne and Richard Lockwood, both of whom are veteran fund managers,
with exceptional records in the natural resources sector, will join
the Board.
Set out below is the interim statement covering the six months
ended 30 June 2021. For the first time in a number of years GRIT is
able to report a profit (of GBP366,000 - compared to a loss of
GBP288,000 in the six months ended 30 June 2020). This was achieved
largely as a result of the profit on the sale of the Company's
stake in Siberian Goldfields Limited, but was assisted by the
waiver of fees by directors and by advisers.
Salient events
In January GRIT raised GBP226,000 of additional capital in the
form of new ordinary shares and a convertible loan note.
In April the Company sold its interest in Siberian Goldfields
Limited for GBP488,000.
The proceeds of these transactions enabled the CVA Supervisor to
pay an aggregate 71% dividend to the creditors subject to the
CVA.
On 21 July, following the publication of the 2020 Annual Report,
the suspension of trading in the Company's shares was lifted by the
FCA.
On 2 August the Company raised from existing and new investors
additional capital of GBP599,000 in the form of a convertible loan
note.
On 5 September the Republic of Guinea, the home of the mining
activities of Anglo African Mining plc ('AAM'), GRIT's residual
investment, suffered a military coup. There is no doubt that this
will make the realisation of any of the Company's investment in AAM
even more remote; and further justifies the directors' decision to
make full provision against it in the 2019 financial statements;
and to institute the CVA which has enabled the re-launch of the
Company.
Board of directors
On publication of the 2020 Annual Report, the lifting of the
suspension in trading in the Company's shares and the raising of
additional capital, Stephen Roberts resigned from the Board (as
announced at the time).
As soon as Malcom Burne and Richard Lockwood are appointed to
the Board, I shall also step down from the Board. I joined in
August 2019, with Stephen Roberts and Martin Lampshire, in order to
oversee the transformation of GRIT into a company which could be
re-launched as an active natural resources investment trust.
Although this has been a much harder task than we had anticipated
at the time, I believe that we have now reached that point.
Future plans
Further details on my successors and on their plans for GRIT
(which include proposals for the re-building of a small diverse
portfolio of natural resources investments) will be set out in an
announcement to be published at the time that they are formally
appointed (expected very shortly). I wish them and Martin
Lampshire, who will continue as Executive Director, every success
for the future of GRIT.
James Normand
Chairman
30 September 2021
Executive Director's Review
The six months ended 30 June 2021 saw no investment activity
other than the sale of the Company's interest in Siberian
Goldfields Limited.
The results for the period reflect administrative expenditure
only.
The last two years have been challenging for a number of
reasons, but the Company is now well positioned for future growth
as an Investment Trust focused on the natural resources sector. The
proposed appointments of fund managers Malcolm Burne and Richard
Lockwood will bring a depth of experience to the board which will
prove invaluable in all prospective investment decisions. We look
forward to the future with considerable optimism and believe that
the natural resources sector should present a number of exciting
investment opportunities.
Martin Lampshire
Executive Director
30 September 2021
Enquiries:
Global Resources Investment Trust plc
Martin Lampshire
Tel: +44 (0) 20 3198 2554
Peterhouse Capital Limited
Lucy Williams/Duncan Vasey
Tel: +44 (0)20 7469 0930
Income Statement
Revenue Capital Total
Unaudited Unaudited Unaudited
-------------------------------------- ------ ---------------- ---------- -----------
Notes GBP'000 GBP'000 GBP'000
-------------------------------------- ------ ---------------- ---------- -----------
Six months ended 30 June 2021
Profit on disposal of investments - 488 488
Income - - -
Other expenses (122) - (122)
-------------------------------------- ------ ---------------- ---------- -----------
Net return before finance costs
and taxation (122) 488 366
Interest payable and similar charges - - -
-------------------------------------- ------ ---------------- ---------- -----------
Net return on ordinary activities
before taxation (122) 488 366
Tax on ordinary activities - - -
-------------------------------------- ------ ---------------- ---------- -----------
Net return attributable to equity
shareholders (122) 488 366
-------------------------------------- ------ ================ ========== ===========
Profit (loss) per ordinary share 2 (0.24p) 0.97p 0.73p
-------------------------------------- ------ ---------------- ---------- -----------
Six months ended 30 June 2020
Losses on investments - (28) (28)
Income - - -
Other expenses (256) - (256)
-------------------------------------- ------ ---------------- ---------- -----------
Net return before finance costs
and taxation (256) (28) (284)
Interest payable and similar charges - - -
-------------------------------------- ------ ---------------- ---------- -----------
Net return on ordinary activities
before taxation (256) (28) (284)
Tax on ordinary activities - - -
-------------------------------------- ------ ---------------- ---------- -----------
Net return attributable to equity
shareholders (256) (28) (284)
-------------------------------------- ------ ================ ========== ===========
Loss per ordinary share 2 (0.61p) (0.07p) (0.68p)
-------------------------------------- ------ ---------------- ---------- -----------
Year ended 31 December 2020
Losses on investments - (28) (28)
Income - - -
Other expenses (466) - (466)
-------------------------------------- ------ ---------------- ---------- -----------
Net return before finance costs
and taxation (466) (28) (494)
Interest payable and similar charges - - -
-------------------------------------- ------ ---------------- ---------- -----------
Net return on ordinary activities
before taxation (466) (28) (494)
Tax on ordinary activities - - -
-------------------------------------- ------ ---------------- ---------- -----------
Net return attributable to equity
shareholders (466) (28) (494)
-------------------------------------- ------ ================ ========== ===========
Loss per ordinary share 2 (1.11p) (0.07p) (1.18p)
-------------------------------------- ------ ---------------- ---------- -----------
The 'total' column of this statement represents the Company's
profit and loss account, prepared in accordance with IFRS. All
revenue and capital items in this statement derive from continuing
operations. All of the profit for the period is attributable to the
owners of the Company.
No operations were acquired or discontinued in the year.
A Statement of Total Recognised Gains and Losses is not required
as all gains and losses of the Company have been reflected in the
above Income Statement.
Balance Sheet
As at As at 31 As at
30 June December 30 June
2021 2020 2020
Unaudited Audited Unaudited
---------------------------------- ------ ---------- ---------- ----------
Notes GBP'000 GBP'000 GBP'000
---------------------------------- ------ ---------- ---------- ----------
Fixed assets
Investments - - -
---------------------------------- ------ ---------- ---------- ----------
- - -
---------------------------------- ------ ---------- ---------- ----------
Current assets
Investments - - -
Debtors - - -
Cash at bank and on deposit 30 - -
---------------------------------- ------ ---------- ---------- ----------
30 - -
Creditors: amounts falling due
within one year
Other creditors (338) (900) (685)
---------------------------------- ------ ---------- ---------- ----------
( 900
Net current (liabilities) assets (308) ) (685)
---------------------------------- ------ ---------- ---------- ----------
Creditors: amounts falling due
after one year
Convertible unsecured loan notes (100) - -
---------------------------------- ------ ---------- ---------- ----------
Net (liabilities) assets (408) (900) (685)
---------------------------------- ------ ========== ========== ==========
Capital and reserves
Called up share capital 504 420 420
Share premium 36,922 36,880 36,880
Capital reserve (32,697) (33,185) (33,185)
Revenue reserve (5,137) (5,015) (4,800)
---------------------------------- ------ ---------- ---------- ----------
Equity shareholders' funds (408) (900) (685)
---------------------------------- ------ ========== ========== ==========
Net asset value per share 3 (0.81p) (2.14p) (1.63p)
---------------------------------- ------ ---------- ---------- ----------
Statement of Changes in Equity Share
Share premium Capital Revenue
capital account reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------- --------- --------- --------- --------- --------
For the 6 months to 30 June 2021 (unaudited)
Balance at 31 December 2020 420 36,880 (33,185) (5,015) (900)
Issue of shares 84 42 - - 126
Return on ordinary activities
after taxation - - 488 (122) 366
--------- --------- --------- --------- --------
Balance at 30 June 2021 504 36,922 (32,697) (5,137) (408)
---------------------------------- ========= ========= ========= ========= ========
For the 6 months to 30 June 2020
(unaudited)
---------------------------------- --------- --------- --------- --------- --------
Balance at 31 December 2019 420 36,880 (33,157) (4,544) (401)
Return on ordinary activities
after taxation - - (28) (256) (284)
--------- --------- --------- --------- --------
Balance at 30 June 2020 420 36,880 (33,185) (4,800) (685)
---------------------------------- ========= ========= ========= ========= ========
The revenue reserve represents the amount of the Company's
reserves distributable by way of dividend.
Cash Flow Statement
Six months ended
30 June
---------------------------------------
2021 2020
Unaudited Unaudited
-------------------------------------------------- --------------------------- ----------
GBP'000 GBP'000
-------------------------------------------------- --------------------------- ----------
Operating activities
Profit/(loss) before finance costs and
taxation 366 (284)
(Profit) on disposal of investment (488)
Losses on revaluation of investments - 28
Decrease in other receivables - 13
(Decrease)/increase in other payables (562) 241
-------------------------------------------------- --------------------------- ----------
Net cash outflow from operating activities (684) (2)
-------------------------------------------------- --------------------------- ----------
Investing activities
Proceeds from the sale of investment 488
-------------------------------------------------- --------------------------- ----------
Net cash inflow from investing activities 488
-------------------------------------------------- --------------------------- ----------
Financing activities
Issue of shares 126 -
Issue of convertible unsecured loan notes 100 -
Net cash inflow from financing activities 226 -
-------------------------------------------------- --------------------------- ----------
Increase/(decrease) in cash and cash equivalents 30 (2)
Net cash at the start of the period - 2
-------------------------------------------------- --------------------------- ----------
Net cash at the end of the period 30 -
-------------------------------------------------- --------------------------- ----------
The accompanying notes are an integral part of the financial
statements.
Notes
1. Interim Results
These condensed financial statements have been prepared in
accordance with International Financial Reporting Standards
('IFRS') and IAS 34 'Interim Financial Reporting' as adopted by the
European Union and the accounting policies set out in the statutory
accounts of the Company for the year ended 31 December 2020. The
condensed financial statements do not include all of the
information required for a complete set of IFRS financial
statements and should be read in conjunction with the financial
statements of the Company for the year ended 31 December 2020,
which were prepared under IFRS as adopted by the European Union.
There have been no significant changes to management judgements and
estimates.
2. Going Concern Basis of Accounting
At the time of approving the financial statements, the directors
have a reasonable expectation that the company has adequate
resources to continue in operational existence for the foreseeable
future. Thus the directors continue to adopt the going concern
basis of accounting in preparing the financial statements.
3. Return per Ordinary Share
The revenue loss per ordinary share for the six months ended 30
June 2021 is based on a net loss after taxation of GBP122,000 and
on a weighted average of 50,357,414 ordinary shares in issue during
the period.
The capital loss per ordinary share for the six months ended 30
June 2021 is based on a net capital profit after taxation of
GBP488,000 and on a weighted average of 50,357,414 ordinary shares
in issue during the period.
4. Net Asset Value per Ordinary Share
The net asset value per ordinary share is based on net
liabilities of GBP408,000 (31 December 2020: net liabilities of
GBP900,000) and on 50,357,414 (31 December 2020: 41,964,512)
ordinary shares, being the number of ordinary shares in issue at
the period end.
5. Related Party Transactions
The Board of Directors is considered to be a related party. The
Directors of the Company received fees for their services. Total
fees for the six months to 30 June 2021 were GBP18,750 (six months
ended 30 June 2020: GBP83,207). At 30 June 2021 directors were owed
GBP134,964 (30 June 2020: GBP229,636).
5. Post Balance Sheet Events
Events since the balance sheet date are fully described in the
outgoing Chairman's statement.
Interim Report Statement
The Company's auditor PKF Littlejohn LLP, has not audited or
reviewed the Interim Report to 30 June 2021 pursuant to the
Auditing Practices Board guidance on 'Review of Interim Financial
Information'. These are not full statutory accounts in terms of
Section 434 of the Companies Act 2006 and are unaudited. Statutory
accounts for the year ended 31 December 2020, which received an
unqualified audit report and which did not contain a statement
under Section 498 of the Companies Act 2006, have been lodged with
the Registrar of Companies. No full statutory accounts in respect
of any period after 30 December 2020 have been reported on by the
Company's auditor or delivered to the Registrar of Companies.
Directors' Statement of Principal Risks and Uncertainties
The risks, and the way in which they are managed, are described
in more detail in the Strategic Report contained within the Annual
Report and Financial Statements for the year ended 31 December
2020. In the opinion of the Directors the Company's principal risks
and uncertainties have not changed materially since the date of
that report and did not change materially for the rest of the
Company's financial reporting period to 31 December 2021.
Statement of Directors' Responsibilities in Respect of the
Interim Report
We confirm that to the best of our knowledge:
-- the condensed set of financial statements has been prepared
in accordance with IAS 34 'Interim Financial Reporting' and gives a
true and fair view of the assets, liabilities, financial position
and loss of the Company;
-- the Chairman's Statement and Executive Director's Review
(together constituting the Interim Management Report) include a
fair review of the information required by the Disclosure Guidance
and Transparency Rules ('DTR') 4.2.7R, being an indication of
important events that have occurred during the first six months of
the year and their impact on the financial statements; and
-- other than directors' remuneration, there have been no
related party transactions that materially affected the financial
position or performance of the Company during the period.
On behalf of the Board
James Normand
Chairman
30 September 2021
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IR BBGDCRXXDGBG
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