RNS Number : 0600I
Latitude Resources plc
13 November 2008
NEWS RELEASE 13-11-2008
Latitude Resources plc ("Latitude" or the "Company")
Preliminary Results
for the year ended 30 June 2008
Latitude Resources plc today announces its preliminary results for the year ended 30 June 2008.
In addition, the Company wishes to announce that it has published and posted to shareholders its Annual Report and Accounts for the year
ended 30 June 2008 ("Annual Report").
For the information of investors and shareholders alike, copies of the Annual Report will be available for at least one month, free of
charge, at the Company's head office being 5 Savile Row, London, W1S 3PD. Electronic copies are available on the Company's website,
www.latituderesources.com.
For further information please contact:
Latitude Resources plc
Martyn Konig (Chief Executive Phone: +44 (0) 20 7087 7971
Officer) Fax: +44 (0) 20 7734 3870
Andrew Myers (Non Executive Email: info@latituderesources.com
Director)
Evolution Securities Limited
Rob Collins Phone: +44 (0) 20 7071 4300
Fax: +44 (0) 20 7071 4451
Email: Robert.collins@evosecurities.com
Chairman's Statement
Dear Shareholder
I am pleased to present my review for the year ended 30 June 2008.
Investment Activities
In the 2007 Annual Report, we announced that having concluded that the operating environment in Chile tended to favour larger companies
with existing Chilean mining operations, the Group disposed of its Chilean assets to Tamaya Resources Limited (ASX Code: TMR) ("Tamaya"), an
Australian junior mining company, in consideration of Tamaya granting to Latitude Management Capital Inc ("LMC") 85 million shares. During
the year, LMC sold, for cash, its shares in Tamaya, generating proceeds of approximately �9.3 million.
The Company also disposed of its remaining investment in Western Goldfields and Tanami Gold generating proceeds of approximately �5.3
million
Financial
The consolidated net profit after taxation of the Group in respect of the year ended 30 June 2008 amounted to �1,014,000 (earnings per
share 0.4p) compared to the restated consolidated net profit after taxation for 2007 of �6,598,000 (earnings per share 2.4p).
The Group received no income during the year from advisory fees (2007: �38,000) and �3,927,000 (2007: restated �3,677,000) from the
profit on sales of fixed assets investments. Bank deposit interest amounted to �521,000 (2006: �94,000).
The net assets of the Group amounted to �14,509,000 as at the year end (2007 restated: �15,273,000) which includes cash and cash
equivalents of �15,951,000 (2007: �3,657,000). There was no available for sale financial assets in 2008 (2007 restated: �3,567,000).
Board Changes
On behalf of the Board, I would like to express my sincere gratitude to both Barry Rayment and Sally Schofield who stepped down from the
Board on 31 March 2008 and 30 September 2008 respectively. Both Barry and Sally have been an integral part of Latitude since 2003 and their
skills and commitment have helped us enormously, particularly during the development and sale of our Chilean mining assets.
Outlook
The Company has continued to explore many new investment opportunities. Latitude Shares were suspended from trading on 1 September 2008
pending the fulfilment of its Investment Strategy or the publication of an admission document in relation to a reverse takeover in
accordance with the AIM Rules. At that time we announced that we were in advanced negotiations with a third party with a view to making an
acquisition. If completed, this acquisition would have amounted to a reverse takeover under the AIM Rules. Unfortunately, discussions
regarding this transaction were terminated on 15 October 2008. On 20 October 2008, the Company received an unsolicited cash bid for the
Company. This process is ongoing and I would refer shareholders to the Independent Directors response to that offer.
In closing I should like to take this opportunity to thank our staff, shareholders, and advisors for their excellent support during a
very interesting and challenging period for the Company.
David Whitehead
Chairman
Consolidated Income Statement
Note Year ended Year ended
30 June 2008 30 June 2007
�'000 �'000
Note Year ended Year ended
30 June 2008 30 June 2007
�'000 �'000
Continuing operations:
Revenue - 38
Administrative expenses (1,370) (1,362)
Gains from investment securities 3,927 3,677
Operating profit 2,557 2,353
Finance income 521 94
Finance expense - (509)
Finance costs - net 521 (415)
Profit before taxation 3,078 1,938
Taxation (894) (590)
Profit from continuing operations 2,184 1,348
Discontinued operations:
(Loss)/Profit before taxation from (75) 5,250
discontinued operations
Taxation (1,095) -
(Loss)/Profit for the year from (1,170) 5,250
discontinued operations
Profit for the year 1,014 6,598
Earnings per share for profit attributable to equity holders 4
of the company during the year
Basic (pence) 0.4p 2.4p
Diluted (pence) 0.3p 2.2p
Earnings per share for profit from continuing operations 4
attributable to equity holders of the company during the year
Basic (pence) 0.8p 0.5p
Diluted (pence) 0.7p 0.5p
Earnings per share for profit from discontinued operations 4
attributable to equity holders of the company during the year
Basic (pence) (0.4)p 1.9p
Diluted (pence) (0.4)p 1.7p
Consolidated Balance Sheet
As at 30 June Restated
2008 as at 30 June
�'000 2007
�'000
Non-current assets
Property, plant and equipment - 8
Intangible assets - 116
Available-for-sale financial assets - 3,567
- 3,691
Non-current assets held for sale - 8,947
- 12,638
Current assets
Trade and other receivables 192 167
Deferred tax asset - 1,095
Cash and cash equivalents 15,951 3,657
16,143 4,919
Total assets 16,143 17,557
Current liabilities
Trade and other payables 382 509
Current income tax liabilities 1,252 1,685
1,634 2,194
Current liabilities held for sale - 90
Total liabilities 1,634 2,284
Net assets 14,509 15,273
Equity
Share capital 2,695 2,695
Share premium 6,976 6,976
Fair value reserves - 1,954
Foreign currency translation reserve (142) (318)
Other reserves 112 112
Retained profits 4,868 3,854
Total equity 14,509 15,273
Consolidated Statement of Changes in Shareholders' Equity
Share capital Share premium Foreign Currency Other reserves Fair value reserve Retained
profits/ Total equity
translation Reserve
(losses)
�'000 �'000s �'000s �'000 �'000s
�'000s �'000
As at 1 July 2006 2,695 6,976 (102) 71 5,937
(2,744) 12,833
Exchange loss on foreign - - (19) - -
- (19)
currency investments
Decrease in fair value reserve - - (197) - (306)
- (503)
Disposal of Available-for-sale - - - - (3,677)
- (3,677)
assets
Share option costs recognised - - - 41 -
- 41
in reserves
Total income and expense - - (216) 41 (3,983)
- (4,158)
recognised directly in equity
Profit for the year - - - - -
6,598 6,598
As at 30 June 2007 2,695 6,976 (318) 112 1,954
3,854 15,273
Increase in fair value reserve - - 176 - 1,973
- 2,149
Disposal of Available-for-sale - - - - (3,927)
- (3,927)
assets
Total income and expense - - 176 - (1,954)
- (1,778)
recognised directly in equity
Profit for the year - - - - -
1,014 1,014
As at 30 June 2008 2,695 6,976 (142) 112 -
4,868 14,509
Consolidated Cash Flow Statement
Year ended 30 June Year ended 30 June
2008 2007
�'000 �'000
Cash flows from operating
activities
Cash used in operations (1,455) (1,315)
Income taxes paid (1,328) -
Net cash used in operating (2,783) (1,315)
activities
Cash flow from investing
activities
Proceeds from sale of 5,716 4,884
Available-for-sale financial
assets
Purchase of Available-for-sale - (2,319)
financial assets
Proceeds from disposal of (29) -
property, plant and equipment
Interest received 521 94
Net cash used in investing - (1,480)
activities in respect of
discontinued operations
Discontinued operations 8,857 -
Net cash inflow from investing 15,065 1,179
activities
Net increase/(decrease) in 12,282 (136)
cash and cash equivalents
Cash and cash equivalents at 3,657 3,801
beginning of period
Exchange differences 12 (8)
Cash and cash equivalents at 15,951 3,657
end of period
1. General Information
The preliminary financial information does not constitute full accounts within the meaning of section 240 of the Companies Act 1985 but
is derived from accounts for the years ended 30 June 2008 and 30 June 2007. These figures are audited. The preliminary announcement is
prepared on the same basis as set out in the statutory accounts for the year ended 30 June 2008. The auditors have issued an audit report
modified by the inclusion of an emphasis of matter paragraph which highlights the existence of a material uncertainty that casts doubt on
the company's and group's ability to continue as a going concern. Their opinion is not qualified in this respect. Further information is
disclosed in the going concern paragraph under significant accounting policies.
While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and
measurement criteria of International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), this announcement does
not in itself contain sufficient information to comply with IFRS's.
The Company is a public limited company, which is quoted on the London Stock Exchange Alternate Investment Market and is incorporated
and domiciled in the UK. Latitude Shares were suspended from trading on 1 September 2008 pending the fulfilment of its Investment Strategy
or the publication of an admission document in relation to a reverse takeover in accordance with the AIM Rules. At that time Latitude was in
advanced negotiations regarding a potential reverse takeover, but has subsequently decided not to pursue this opportunity.
The address of its registered office is 5 Savile, Row London W1S 3PD.
Undertakings in the Consolidated Financial Information
The financial information presents the financial results and assets and liabilities for the Group for the years ended 30 June 2007 and
30 June 2008.
The subsidiary undertakings and businesses included within the financial information from 1 July 2006 are disclosed as follows:
Name of undertaking or Registered country Principal business Latitude equity shareholding
business
Latitude Management Capital British Virgin Investment 100% direct
Inc Islands
Latin American Copper Chile British Virgin Investment 100% indirect
Holdings Ltd Islands
Latin American Copper Chile Chile Exploration 100% indirect
S.A
These undertakings and businesses together with the parent company, Latitude Resources Plc, constitute the Group for the purposes of
this consolidated financial information.
2. Summary of significant accounting policies
Basis of preparation
These consolidated financial statements have been prepared on a going concern basis and in accordance with International Financial
Reporting Standards as adopted by the European Union (IFRSs as adopted by the EU), IFRIC interpretations and with those parts of the
Companies Act 1985 applicable to companies reporting under IFRS.
The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of
Available-for-sale financial assets. The accounting policies set out below have been applied consistently in each of the year's shown.
Transition to IFRS
The Groups' IFRS transition date is 1 July 2006 being the first period reported under IFRS for this financial information. The Group
prepared its opening IFRS balance sheet at that date. The Group has applied IFRS 1 in preparing this financial information.
In preparing this consolidated financial information in accordance with IFRS 1, the Group has applied the mandatory exceptions and
certain optional exemptions from full retrospective application of IFRS.
The Group has elected to apply the following optional exemptions from full retrospective application:
Business combination exemption
Business combinations that took place prior to 1 July 2006 have not been restated. Goodwill arising on acquisitions prior to 1 July 2006
has been retained at the previous UK GAAP amounts subject to being tested for impairment at the date of transition.
Cumulative translation differences exemption
All previously accumulated translation differences have been set to zero as at 1 July 2006. This exemption has been applied to all
subsidiaries in accordance with IFRS 1.
Share based payments
All grants of equity instruments up to and including 7 November 2002, which had not vested as at 1 July 2006 have not been recognised.
Basis of accounting
The consolidated financial information has been prepared in accordance with International Financial Reporting Standards (IFRS) for the
first time. The disclosures required by IFRS 1 concerning the transition from UK GAAP to IFRS are given in note 5.
Critical accounting estimates and judgements
In preparing the consolidated financial information, management has had to make judgements, estimates and assumptions that affect the
reported amounts of assets and liabilities, income and expenses. The critical judgements and key assumptions that have been made in
preparing the consolidated financial information are in relation to available-for-sale financial assets, intangible assets and non-current
assets held for sale, as they have the most significant effect on the amount recognised in the financial statements. These judgements
involve assumptions or estimates in respect of future events which will by definition, seldom equal the related actual results. These key
estimates are arrived at through specific analysis and historical experience.
Basis of consolidation
Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the financial and
operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential
voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date
control ceases or are identified for resale.
All inter-entity balances and transactions, including unrealised profits and losses arising from them, are eliminated, all amounts for
sales and profits relate to external transactions only.
Revenue
Revenue comprises fees generated from consultancy services provided, predominantly in the mining sector.
Segmental reporting
A segment is a distinguishable component of the Group that is engaged in providing services. As the risks and rates of return are
unaffected by differences in respect of these services, the primary format for reporting segment information is based on geographical
location.
Financial assets
The Group classifies its financial assets in the following categories: loans and receivables and available-for-sale financial assets.
Management determines the classification of financial assets at initial recognition.
(a) Loans and receivables are classified as financial assets when they are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market and are initially measured at fair value and subsequently measured at
amortised cost using the effective interest method less accumulated impairment losses. Loans and receivables are carried at amortised cost
using the effective interest method. The group*s loans and receivables comprise *trade and other receivables* and *cash and cash
equivalents* in the balance sheet.
(b) Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any
of the other categories. They are included in non-current assets unless management intends to dispose of the investment within 12 months of
the balance sheet date. Financial assets are de-recognised when the rights to receive cash flows from the investments have expired or have
been transferred and the Group has transferred substantially all risks and rewards of ownership. Available-for-sale financial assets are
carried at fair value and changes in the fair value are recorded directly into equity. When the asset is sold the amounts previously
recognised in equity are recycled through the income statement.
Regular purchases and sales of financial assets are recognised on the trade-date, the date on which the Group commits to purchase or
sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value
through profit or loss. Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have
been transferred and the Group has transferred substantially all risks and rewards of ownership. Available-for-sale financial assets are
subsequently carried at fair value.
Impairment of financial assets
The Group assesses at each balance sheet date whether there is objective evidence that a financial asset has been impaired. Impairments
are measured by reference to discounted expected future cash flows, and are recognised in the consolidated income statement.
Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are
carried at cost less any accumulated amortisation and any accumulated impairment losses.
The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are amortised
over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.
Intangible assets with an indefinite life are assessed at least annually for impairment.
Mining rights comprise costs directly incurred in exploration and evaluation as well as the cost of mineral licences. They are
capitalised as intangible assets pending determination of the feasibility of the project. When the existence of economically recoverable
reserves is established the related intangible assets are transferred to tangible fixed assets and the exploration and evaluation costs are
amortised on a depletion percentage basis. Where a project is abandoned or is determined to not be economically viable, the related tangible
fixed asset costs are written off.
Office equipment
Office equipment is stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly
attributable to making the asset capable of operating as intended.
Depreciation is calculated to write off the cost of assets less estimated residual value, based on prices prevailing at the balance
sheet date, in equal annual instalments over the estimated useful economic lives of the assets. These are as follows:
* Furniture, fixtures and fittings 2-5 years
* Computer and office equipment 4 years
The useful economic lives and residual values assigned to office equipment are assessed on an annual basis. The carrying values of
office equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.
Impairment of non- financial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists,
or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount. An asset's
recoverable amount is the higher of either an asset's fair value less costs to sell or its value in use and is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where
the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable
amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses of continuing
operations are recognised in the consolidated income statement in those expense categories consistent with the function of the impaired asset.
An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no
longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss
is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss
was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot
exceed the carrying amount that would have been determined, net of depreciation (or amortisation), had no impairment loss been recognised
for the asset in prior years. Such reversal is recognised in the income statement.
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprises cash at bank and short term deposits with an original maturity of three months
or less. For the purposes of the consolidated cash flow statement, cash and cash equivalents consists of cash and cash equivalents, as
previously defined, net of outstanding bank overdrafts.
Operating leases
Leases in which a significant proportion of the risks and rewards of ownership are retained by the lessor are classified as operating
leases. Payments under operating leases (net of any incentives received from the lessor) are charged or credited to the consolidated income
statement over the lease term.
Foreign currencies
The presentational and functional currency of the Group is the Pound Sterling.
Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date. Any gains or
losses on translation are included in the consolidated income statement. Translation differences on non-monetary financial assets and
liabilities are reported as part of the fair value gain or loss.
Changes in the fair value of monetary securities denominated in foreign currencies classified as Available-for-Sale are analysed between
translation differences resulting from changes in the amortised cost of the security and other changes in the carrying amount of the
security. Translation differences relating to changes in amortised cost are recognised in the income statement and other changes in carrying
amount are recognised in equity.
The assets and liabilities of foreign operations are translated into Sterling at the rate of exchange ruling at the balance sheet date.
Income and expenses are translated at average exchange rates for the year, where this represents a reasonable approximation of actual
exchange rates at the date of transactions. The resulting exchange differences are taken directly to a separate component of equity. On
disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular foreign operation is
recognised in the consolidated income statement.
Taxation
The charge for current taxation is based on the results for the year as adjusted for items which are non-assessable or disallowed, based
on tax rates that are enacted or substantively enacted at the balance sheet date.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is
subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred taxation is accounted for using the balance sheet liability method in respect of temporary differences arising from differences
between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in computation of
taxable profit.
Deferred tax liabilities or assets are recognised on all temporary differences except in respect of investments in subsidiaries and
associates where the Group is able to control the reversal of the temporary difference and it is probable that it will not reverse in the
foreseeable future. The deferred tax is not accounted for if it arises from initial recognition of goodwill or an asset or liability in a
transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.
Deferred tax assets are recognised either to the extent that it is probable that future taxable profit will be available against which
the temporary difference or unused deferred tax asset can be utilised. Their carrying amount is reviewed at each balance sheet date on the
same basis. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which the asset
or liability is settled. This is based upon tax rates and laws enacted or substantively enacted at the balance sheet date in the relevant
taxation jurisdiction.
Financial liabilities and equity
Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations rather
than the financial instrument's legal form. An equity instrument is any contract that evidences a residual interest in the assets of the
Group after deducting all of its liabilities.
Trade receivables
Trade receivables are not interest bearing and are stated at their nominal value, less any accumulated impairment losses.
Trade payables
Trade payables are not interest bearing and are stated at their nominal value.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
Share based payments
The Company issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair
value (excluding the effect of non-market based vesting conditions) at the date of grant. The fair value determined at the grant date of the
equity settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Company's estimate of shares
or options that will eventually vest.
Discontinued operations
A discontinued operation is a component of the Group's business that either has been disposed of or classified as held for sale or is a
company or Group of companies to which a receiver or administrator has been appointed and over which the Group does not exercise control.
Prior year adjustment
The gain arising on the sale of the Chilean operations is potentially exempt from tax under the application of the substantial
shareholding exemption. The availability or otherwise of this relief is unclear and has not, at this time, been confirmed by HM Revenue &
Customs, hence a �1,095,000 provision has been made for the tax liability that would arise if relief were denied. This had not previously
been reflected in the financial statements. In addition, on the basis that sale of the asset was foreseeable at the balance sheet date, a
deferred tax asset equal and opposite to this amount has been recognised, hence there is no resulting impact on the profit and loss account
and the balance sheet debtors and creditors have been grossed up by this amount.
Scope exemption IFRS 7
In line with recent IFRIC interpretations, the Group has elected not to apply the additional IFRS 7 'Financial Instruments: Disclosures'
in relation to assets classified as held-for-sale, and only applied the required IFRS 5 'Non current assets held for sale and discontinued
operations' disclosures. However, the Group has made the necessary disclosure requirements to comply with IAS 1 'Presentation of financial
statements'.
Standards, amendments and interpretations effective but not relevant
The following new standards, amendments to standards or interpretations are mandatory for the first time for the financial period ended
30 June 2009, but are not currently relevant for the Group.
* IFRIC 12, 'Service concession arrangements'. This standard has not been applied as it is not relevant to the Group.
Standards, amendments and interpretations that are not yet effective and have not been early adopted
The following new standards, amendments to standards and interpretations have been issued, but are not effective for the financial
period ended 30 June 2008:
* IFRS 8, 'Operating segments', effective for annual periods beginning on or after 1 January 2009. IFRS 8 replaces IAS 14, 'Segment
reporting', and requires a 'management approach' under which segment information is presented on the same basis as that used for internal
reporting purposes. The expected impact is still being assessed in detail.
* IAS 23 (amendment), 'Borrowing costs', effective for annual periods beginning on or after 1 January 2009. This amendment is not
relevant to the Group.
* IFRS 2 (amendment) 'Share-based payment', effective for annual periods beginning on or after 1 January 2009. Management is
currently evaluating the effect of this interpretation.
* IFRS 3 (amendment), 'Business combinations' and consequential amendments to IAS 27, 'Consolidated and separate financial
statements', IAS 28, 'Investments in associates' and IAS 31, 'Interests in joint ventures', effective prospectively to business combinations
for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 July 2009.
Management is currently assessing the impact of the new requirements regarding acquisition accounting.
* IAS 1 (amendment), 'Presentation of financial statements' effective for annual periods beginning on or after 1 January 2009.
Management is in the process of developing proforma accounts under the revised disclosure requirements of this standard.
* IAS 32 (amendment), 'Financial instruments: presentation', and consequential amendments to IAS 1, 'Presentation of financial
statements', effective for annual periods beginning on or after 1 January 2009. This is not relevant to the Group as the Group does not
currently have any puttable instruments.
* IFRIC 13, 'Customer loyalty programmes', effective for annual periods beginning on or after 1 July 2008. IFRIC 13 has not been
applied as its not relevant to the group.
* IFRIC 14, IAS 19- The limit on a defined benefit asset, minimum funding requirements and their interaction (effective from 1
January 2009). IFRIC 14 has not been applied as it is not relevant to the Group.
3. Segmental analysis
(a) Primary reporting format - business segments
For management purposes, the Group manages its operations through two geographical regions. There was no material inter segment trading.
Allocations have been made on the basis of the location of assets.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a
reasonable basis.
Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more
than one period, including acquisitions through business combinations.
Year ended 30 June 2008 Continuing business Discontinuing business Total
UK and Europe South America �'000
�'000 �'000
Segment revenue - - -
Operating profit/(loss) 2,557 (75) 2,482
segment result
Finance costs (net) 521 - 521
Profit/(loss) before income 3,078 (75) 3,003
tax
Income tax expense (894) (1,095) (1,989)
Profit/(loss) for the year 2,184 (1,170) 1,014
Other segment items included in the Consolidated Income Statement:
Depreciation and amortisation 8 - 8
Total assets 16,143 - 16,143
Total liabilities 1,634 - 1,634
Capital expenditure - - -
Year ended 30 June 2007, as Continuing business Discontinuing business Total
restated UK and Europe South America �'000
�'000 �'000
Segment revenue 38 - 38
Operating profit/(loss) 2,315 5,250 7,565
segment result
Finance costs (net) (415) - (415)
Profit before income tax 1,938 5,250 7,188
Income tax expense (590) - (590)
Profit for the year 1,348 5,250 6,598
Other segment items included in the Consolidated Income Statement:
Depreciation and amortisation 1 13 14
Total assets 7,515 10,042 17,557
Total liabilities 2,194 90 2,284
Capital expenditure - - -
Discontinued business comprises the results for the period of the Latin American Copper Chile S.A operation, which was sold on 7th
September 2007, together with the loss on sale of the Latin American Copper Chile S.A operation.
(b) Secondary reporting format - business segments
The Group operates in one business segment, being that of mining operations. As a consequence no additional business segment information
is required to be provided.
4. Earnings per share
Year ended Year ended
30 June 30 June
2008 2007
�'000 �'000
Profit/(loss) for the financial year
attributable to equity shareholders is
split between continuing and discontinued
activities as follows:
Continuing operations 2,184 1,348
Discontinued operations (1,170) 5,250
1,014 6,598
Number Number
Weighted average number of shares in issue 269,525,377 269,525,377
Basic earnings per share - continuing 0.8 0.5
operations
Basic earnings per share - discontinued (0.4) 1.9
operations
Basic earnings per share - total 0.4 2.4
Weighted average number of shares in issue 269,525,377 269,525,377
Dilutive effect of share options 19,432,377 25,664,384
288,957,754 295,189,761
Diluted earnings/(loss) per share - 0.7 0.5
continuing operations
Diluted earnings/(loss) per share - (0.4) 1.7
discontinued operations
Diluted earnings/(loss) per share - total 0.3 2.2
5. Reconciliation of equity under UK GAAP to IFRS and prior year adjustment
Latitude Resources plc reported under UK GAAP in its previously published financial information for the year ended 30 June 2007. The
analysis below shows a reconciliation of equity as reported under UK GAAP as at 1 July 2006 to the revised net assets and profits under IFRS
as reported in this financial information. There has been no material adjustment to the cash flows.
Reconciliation of equity at 1 July 2006
Reformatted UK GAAP a) �'000 b)�'000 Opening balance under
�'000 IFRS
�'000
Non-current assets
Property, plant and equipment 22 22
Intangible assets 2,010 2,010
Financial assets:
Available-for-sale assets 1,207 5,937 7,144
3,239 5,937 9,176
Current assets
Trade and other receivables 73 73
Cash and cash equivalents 3,801 3,801
3,874 3,874
Total assets 7,113 13,050
Current liabilities
Trade and other payables 217 217
Total liabilities 217 217
Net assets 6,896 5,937 12,833
Equity
Share capital 2,695 2,695
Share premium 6,976 6,976
Fair value reserve 5,937 5,937
-
Foreign currency translation - (102) (102)
reserve
Other reserves 71 71
Retained earnings (2,846) 102 (2,744)
Total equity 6,896 5,937 - 12,833
Note of reclassification under IFRS
a) Reclassification of Available-for-Sale assets.
b) Separate disclosure of foreign exchange reserve movements
Reconciliation of equity as at 30 June 2007
Reformatted UK GAAP a) �'000 b)�'000 c) �'000 d)�'000 2007 Prior Year
Restated 30 June
�'000 under IFRS �'000 Adjustment �'000
2007 �'000
Non-current assets
Property, plant and equipment 37 8
8
(29)
Intangible assets 116 116
116
Financial Assets:
Available-for-sale assets 1,266 2,301 3,567
3,567
1,419 3,691
3,691
Non current assets held for 3,351 5,596 8,947
8,947
sale
4,770 2,301 5,567 12,638
12,638
Current assets
Trade and other receivables 167 167
167
Deferred tax asset - - 1,095
1,095
Cash and cash equivalents 3,657 3,657
3,657
3,824 3,824
4,919
Total assets 8,594 16,462
17,557
Current liabilities
Trade and other payables 599 (90) 509
509
Current income tax liabilities 590 590 1,095
1,685
1,099 1,099
2,194
Current liabilities held for - 90 90
90
sale
Total liabilities 1,189 1,189
2,284
Net assets 7,405 2,301 5,567 15,273
15,273
Equity
Share capital 2,695 2,695
2,695
Share premium 6,976 6,976
6,976
Fair value reserve - 1,954 1,954
1,954
Foreign currency translation - (121) (197) (318)
(318)
reserve
Other reserves 112 112
112
Retained earnings (2,378) 121 544 5,567 3,854
3,854
Total equity 7,405 - - - - 15,273 -
15,273
Reconciliation of net income for the year ended 30 June 2007
Reformatted UK GAAP a)�'000 b)�'000 c)�'000 d)�'000 30 June 2007 e)�'000 Restated 30 June
�'000 under IFRS �'000 2007
�'000
Continuing Operations:
Revenue 38 38 38
Administrative expenses (1,362) (1,362) (1,362)
Gains from investment 3,133 544 3,677 3,677
securities
Operating profit 1,809 544 2,353 2,353
Finance income 94 94 94
Finance expense (509) (509) (509)
Finance costs- net (415) (415) (415)
Profit before taxation 1,394 544 1,938 1,938
Taxation (590) (590) (590)
Profit from continuing 804 544 1,348 1,348
operations
Profit from discontinued
operations:
(Loss)/ Profit before tax from (317) 5,567 5,250 5,250
discontinued operations
Taxation -
(Loss)/ Profit for the year (317) 5,567 5,250 5,250
from discontinued operations
Profit for the year attributed 487 - - 544 5,567 6,598 6,598
to equity shareholders and
parent company
Note of reclassification under IFRS
a) Reclassification of Available-for-Sale assets.
b) Separate disclosure of foreign exchange reserve movements
c) Adjustment to gain on sale of Available-for-Sale assets
d) Remeasurement of disposal of subsidiary as asset held for sale
e) Prior year adjustment
Explanation of reconciling items between UK GAAP and IFRS
Reclassification of Available-for-Sale assets (note a)
Under IFRS, company investments in listed entity securities are classified as financial assets. In accordance with IAS 39 'Financial
instruments - Recognition & Measurement', these assets have been classified as Available-for-Sale assets and have been remeasured to their
fair value. The effect of this adjustment on the transition balance sheet is to increase Available-for-Sale assets by �5,937,000 and create
a fair value reserve of the equivalent value.
Cumulative translation differences (note b)
Translation differences arising on consolidation of all foreign operations were deemed to be zero at 1 July 2006. Foreign exchange
differences arising from the translation of foreign operations subsequent to that date are taken directly to a separate component of equity.
The effect of this adjustment is to increase retained earnings by �102,000 at 1 July 2006 and �121,000 as at 30 June 2007.
Adjustment to gain on sale of Available-for-Sale assets (note c)
Under IFRS, company investments in listed entity securities are classified as financial assets. In accordance with IAS 39 'Financial
instruments - Recognition & Measurement', such assets have been classified as Available-for-Sale assets and have been remeasured to their
fair value. As a result of this remeasurement, the gain on disposal represents the difference between the fair values of such financial
assets up until the time of disposal less proceeds received. The effect of this adjustment on the balance sheet as at 30 June 2007 is to
increase Available-for-Sale assets by �2,301,000 create a fair value reserve of �1,954,000, increase foreign currency translation losses by
�197,000 and adjust the gain on sale of these assets by �544,000 in both retained earnings and the income statement for the year ended 30
June 2007.
Remeasurement of disposal of subsidiary as asset held for sale (note d)
Under IFRS, subsidiary disposal groups are classified as non current assets held for sale in accordance with IFRS 5 'Non Current Assets
Held for Sale and Discontinued Operations'. IFRS 5 further requires subsidiary disposal groups to be shown at their fair value less costs to
sell as at the date immediately preceding their disposal. The net effect of this adjustment on the income statement for the year ended 30
June 2007 and balance sheet as at 30 June 2007 is to add an additional �5,567,000 to the results from discontinued operations, and separate
non current assets of �5,567,000 and current liabilities held for sale from other non current assets and current liabilities.
Prior year adjustment (note e)
The prior year adjustment relates to an income tax charge of �1,095,000 and an equal and opposite deferred tax amount in respect of the
sale of the Chilean operations.
Presentation of financial reports
The overall presentation of interim financial reports and disclosures has been affected due to compliance with IAS 1 "Presentation of
Financial Statements" and IAS 7 "Cash Flow Statements".
6. Report and Accounts
The board of directors of Latitude Resources plc approved the Preliminary Results on 12 November 2008.
The Auditors have reported on these accounts; their report is unqualified and does not contain statements under section 237(2) or (3) of
the Companies Act 1985.
Statutory accounts for the year ended 30 June 2007 have been delivered to the Registrar of Companies. The Auditors Report was
unqualified and did not contain any statements under section 237(2) or (3) of the Companies Act 1985.
Copies of the Report and Accounts will be sent to shareholders in due course and will be available from the Company's registered office
and on the Company's website: www.latituderesources.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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