RNS Number:6557E
Libra Natural Resources PLC
28 September 2007
Press Release 28 September 2007
Libra Natural Resources plc
("LNR" or "the Company")
Interim Results
Libra Natural Resources plc ("LNR" or "the Company"), the international
renewable wood-to-energy company, is pleased to announce its Interim Results for
six months ended 30 June 2006.
Highlights:
* Turnover more than trebled to #4.52m (2006: #1.2m)
* Gross Profits increased 450% to #820,000 (2006: #187,000)
* Net Assets of #21.48m (2006: #12.75m)
* Net cash of #2.52m (31st December 2007: #0.4m)
Commenting on the Results, Chief Executive Officer, Peter Greensmith said, "We
are very pleased with the excellent performance for the first six months of the
year from our core wood pellet manufacturing operations, particularly the rapid
progress made in integrating the newly acquired Princeton Co-Generation
Corporation business, which has exceeded our expectations.
"The volatility in the value of our non-core investments during this period
re-emphasises the validity of your Board's recently announced intention to
divest these assets in the near future. Whilst I am pleased to say that all of
these non-core holdings still show a positive return for your company on its
original investments, it is your Board's intention that these Results will be
the last which LNR reports as a conglomerate. Shareholders can expect to receive
news shortly on how this re-focusing of LNR will be implemented.
"In addition to these results, LNR is pleased to announce today details of the
Company's first major move into the US wood pellet manufacturing market. Your
Company is making an initial U$2m investment in a profitable wood-chip
production plant in Virginia, USA. Your Board views this investment as providing
a spring-board for the creation of a major US regional wood-pellet business
similar to that which LNR has successfully developed in British Columbia,
Canada.
"This, together with our recently announced West Kootenay development plans, is
further evidence of your Company's absolute commitment to the development of a
major international wood to energy business.
"We look forward confidently to the full year Results , which your Board
believes will demonstrate an accelerating profits profile, as recent plant
upgrades and sell price increases are reflected for the first time."
For further information:
Libra Natural Resources plc
Peter Greensmith, Chief Executive Tel: +44 (0) 20 7877 5040
Landsbanki Securities (UK) Ltd
Nominated Advisor & Joint Broker Tel: +44 (0) 20 7426 9000
Gareth Price/Simon Brown, Corporate Finance
Media enquiries:
Abchurch
Heather Salmond / Franziska Bohnke Tel: +44 (0) 20 7398 7700
franziska.boehnke@abchurch-group.com www.abchurch-group.com
Financial Results
In the six months ended 30 June 2006, turnover in our operating businesses
increased by over 350% to #4.52 million (#1.2 million in 2006). Profits before
administrative expenses accelerated to #820,000 (#187,000 in 2006). As
anticipated, we experienced higher general and administrative expenses as
one-off, accrued consultancy, legal and financial costs, associated with the
group's expansion since its listing, were met.
Other gains and loses showed an overall loss of #1.5 million vs a profit of #3.5
million at 31 December 2006. This loss, relating to the Company's non-core
holding in Prometheus Energy Company, was partly offset by gains over the period
relating to other such non-core stakes held by the Company.
Our cash position was #2.5million at 30 June 2007 as compared to #0.4million at
31 December 2006.
Core Operations
We are pleased to report that the Company has successfully undertaken several
projects to enhance its core wood pellet operations. During Q1, Westwood
completed an upgrade to its gasification drying system which resulted in a 24%
increase in throughput of lower cost 'green' fibre. In June, a new larger
pellet mill replaced a smaller, older unit at Princeton which will result in
approximately a 10% production increase in Q3. A 2,700 metric ton finished
storage expansion is also underway at Princeton that will reduce handling costs
and improve customer service. In September, semi-automated bagging equipment
was installed at Westwood which is already significantly improving productivity
and increasing access to higher margin retail markets. Princeton is also
preparing for a drying capacity expansion . As recently reported, the Company is
also pleased to report the renewal of key feedstock supply contracts through
2010.
The impact of these capital improvements, together with operational improvements
and marketing investments, can start to be seen in the Results for the first six
months of the year. The phased sequence of these efforts means that the full
impact of the changes have not yet been seen, and, therefore, provides
management with strong confidence for the second half of the year.
US and UK growth strategy
In line with our previously stated strategy, LNR today announces that it is to
make an initial investment of U$2 million, payable from the company's existing
cash resources, for a 75% interest in an existing 180,000 tons pa, operational
wood chip plant. This facility is in Louisa County, central Virginia, USA, an
area where the timber supply is substantial. This site is capable of
integrating a scaleable 75,000 ton wood pellet manufacturing plant, which is
currently under development and is targeted to be in commercial service in Q2 of
2008. This plant, when fully developed, will enable our wood pellet business in
North America to more cost effectively serve customers in the eastern USA and
Europe.
LNR previously announced it was in discussion to potentially invest in a major
UK wood pellet opportunity. Whilst these discussions have now terminated, the
Company continues to evaluate other potentially attractive opportunities in the
UK, although these are likely to be project development-led rather than via
acquisitions, due to the lack of scale and profitability in the existing UK
marketplace.
Dividend
No dividend is proposed for the six months ended 30 June 2007.
Copies of Interim Report
Copies of the interim report can be obtained by writing to The Company
Secretary, Libra Natural Resources Plc, 40 Basinghall Street, London, EC2V 5DE
or on the Company's website www.lnrplc.com
Outlook
We are confident that the Company can maintain the momentum from the first half
of the year and deliver record results for 2007, as a focused, leading
international wood-to-energy group.
Peter Greensmith
Chief Executive Officer
27 September 2007
Consolidated Income Statement
for the 6 months to 30 June 2007
6 months 6 months 12 months to
to 30 June to 30 June 31 December
2007 2006 2006
Notes #'000 #'000 #'000
Revenue 4,527 1,201 2,362
Cost of Sales (3,707) (1,014) (2,050)
Gross Profit/(loss) 820 187 312
Other operating income 3 - 201
Administrative expenses (1,135) (280) (1,206)
Profit/(loss) from operations (312) (93) (693)
Other gains and losses (1,510) - 3,570
Interest receivable and similar income 2 18 62
Interest payable and similar charges (463) (58) (484)
(Loss)/profit before taxation (2,283) (133) 2,455
Taxation 688 - (788)
(Loss)/profit for the period (1,595) (133) 1,667
(Loss)/Profit attributable to:
Equity holders of the company (1,593) 1,777
Minority interest (2) (110)
(1,595) 1,667
Earnings per share 2
Basic (0.93p) (0.08p) 1.12p
Diluted (0.93p) (0.08p) 1.02p
Consolidated statement of changes in equity
for the 6 months to 30 June 2007
Share Share Bond Share- Currency Minority Retained
Capital Premium holders Based Translation interest earnings Total
reserve Payments reserve
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Balance at 1 256 1,424 - 99 - - 109 1,888
January 2006
Issue of share 65 3,009 - - - - - 3,074
capital
Loss for the - - - - - 8 (141) (133)
period
Balance at 30 321 4,433 - 99 - 8 (32) 4,829
June 2006
Balance at 1 322 4,886 963 135 (186) 126 1,886 8,132
January 2007
Issue of share 88 4,219 - - - - - 4,307
capital
Loss for the - - - - - (2) (1,593) (1,595)
period
Share-based - - - 18 - - - 18
payment charge
Exchange rate - - - - (143) - - (143)
translation
adjustment
410 9,105 963 153 (329) 124 293 10,719
Consolidated Balance Sheet
At 30 June 2006
At At At
30 June 30 June 31 December
2007 2006 2006
Notes #'000 #'000 #'000
Assets
Non-current assets
Goodwill 4,235 2,030 4,046
Other intangible assets 437 - 476
Property, plant and equipment 6,398 3,634 6,193
11,070 5,664 10,715
Current Assets
Inventories 745 61 381
Investments held-for-trading 5,606 3,755 6,845
Debtors 1,533 613 1,889
Cash and cash equivalents 2,528 2,660 410
10,412 7,089 9,525
Total assets 21,482 12,753 20,240
Equity and liabilities
Equity attributable to equity holders of the
company
Share Capital 3 410 321 322
Share Premium account 9,105 4,433 4,886
Bond holders reserve 963 - 963
Share-based payments reserve 153 99 135
Currency translation reserve (329) - (186)
Minority Interests 124 8 126
Accumulated (losses) 293 (32) 1,886
Total equity 10,719 4,829 8,132
Total non-current liabilities
Borrowings 7,557 7,361 7,099
Deferred tax liabilities 546 47 1,250
Deferred consideration 458 - 458
Total non current liabilities 8,561 7,408 8,807
Current liabilities
Bank overdrafts 601 122 1,013
Trade payables 1,601 394 2,288
Total current liabilities 2,202 516 3,301
Total liabilities 10,763 7,924 12,108
Total Equity and Liabilities 21,482 12,753 20,240
Consolidated Cash Flow Statement
for the 6 months to 30 June 2007
6 months to 6 months to 12 months to 31
30 June 2007 30 June 2006 December 2006
#'000 #'000 #'000
Operating activities
Profit/(loss) from operations ( 312) ( 93) ( 693)
Adjustment for depreciation and amortisation 186 - 241
Loss on disposal of fixed assets - - 26
Adjustment for share-based payments 18 - 36
(Increase)/decrease in inventories ( 52) - (19)
(Increase)/decrease in receivables 356 - ( 266)
Increase/(decrease) in payables ( 374) ( 117) 430
Tax paid ( 34) - (3)
Net cash used in operating activities ( 212) ( 210) ( 248)
Investing activities
Purchase of property, plant and equipment ( 88) - ( 2,052)
Proceeds on disposal of property, plant and - - 110
equipment
Purchase of trading investments ( 281) ( 2,252) ( 2,210)
Investment in subsidiaries ( 205) ( 4,098) ( 4,601)
Redemption of share capital in subsidiary ( 18) - ( 183)
Interest received 2 18 62
Net cash used in investment activities ( 590) ( 6,332) ( 8,874)
Financing activities
Net proceeds of share issues 3,462 3,517 3,528
Net proceeds of long term debt - 5,073 5,957
Repayment of long term debt ( 80) - ( 25)
Finance costs ( 463) ( 58) ( 484)
Net cash from financing activities 2,919 8,532 8,976
Net (decrease)/increase in cash and cash 2,117 1,990 ( 146)
equivalents
Effect of foreign exchange rate changes 1 ( 18) ( 10)
Cash and cash equivalents at beginning of period 410 566 566
Cash and cash equivalents at 30 June 2007 2,528 2,538 410
Notes to the Financial Statements
for the 6 months to 30 June 2007
1. ACCOUNTING POLICIES
The consolidated interim statements for the period ended 30 June 2007 have been
prepared in accordance with International Financial Reporting Standards ("IFRS
"), including International Accounting Standards ("IAS") and Interpretations
issued by the International Accounting Standards Board.
The financial information contained in this interim report does not constitute
statutory accounts within the meaning of s240 of the Companies Act 1985, and has
not been audited or reviewed. The interim statement has been prepared on the
basis of accounting policies set out in the full annual accounts of the Group
for the year ended 31 December 2006. The interim accounts were approved by the
directors on 27 September 2007.
2. EARNINGS PER SHARE
6 months to 6 months to 12 months to 31
30 June 2007 30 June 2006 December 2006
#'000 #'000 #'000
Earnings:
Earnings for the purpose of basic earnings per share ( 1,593) ( 133) 1,777
Earnings for the purpose of basic earnings per share ( 1,593) ( 133) 2,025
Number of shares: '000 '000 '000
Weighted average number of shares for the purposes of
basic earnings per share
171,032 156,242 158,576
Number of dilutive warrants 11,678 13,670 13,337
Number of dilutive shares under option 3,304 3,304 3,304
Weighted number of ordinary shares on conversion of 22,436 1,870 22,436
bonds
208,450 175,086 197,653
Weighted average number of ordinary shares for the
purpose of fully diluted earnings per share
Basic earnings per share ( 0.93p) ( 0.08p) 1.12p
Fully diluted earnings per share ( 0.93p) ( 0.08p) 1.02p
3. Issued share capital
Number of shares Nominal value
'000 #'000
Ordinary shares of 0.2p each:
At 1 January 2007 161,077 322
Consideration shares for Princeton Co-Generation Corporation 7,042 14
Share placing 35,000 70
Conversion of warrants 1,659 4
At 30 June 2007 208,450 410
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
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