TIDMPMG
RNS Number : 9928F
Parkmead Group (The) PLC
20 November 2020
20 November 2020
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Preliminary Results for the year ended 30 June 2020
Parkmead, the UK and Netherlands focused independent energy
group, with four business areas, is pleased to report its
preliminary results for the year ended 30 June 2020.
HIGHLIGHTS
Strong financial position and robust producing assets, despite
low gas price environment
-- Well capitalised, with cash balances of GBP25.7 million
(US$33.4 million) as at 30 June 2020
-- Total asset base increased by 9% to GBP89.8 million at 30
June 2020 (2019: GBP82.3 million)
-- Net assets increased to GBP71.3 million at 30 June 2020 (2019: GBP68.3 million)
-- Revenue for the period was GBP4.1 million (2019: GBP8.3
million), reflecting the record-low gas prices seen during the
year
-- Gross profit achieved of GBP1.3 million (2019: GBP5.7
million), showing the robustness of Parkmead's gas assets
-- Net profit before tax and non-cash impairment charges was GBP0.8 million
-- Gas prices have fallen from highs of approximately EUR
25.7/MWh in October 2018 to lows not seen in over a decade to
around EUR 5.0/MWh in June 2020 due to the oversupply of Liquefied
Natural Gas (LNG) into the European market and the unprecedented
effect of COVID-19
-- Gas prices have since rebounded strongly to approximately EUR 14.0/MWh in November 2020
-- Parkmead's Netherlands assets remain very low cost to
operate, and were uninterrupted by the lockdown restrictions
introduced by the Dutch Government in March
-- Netherlands gas production, plus benchmarking & economics
consultancy, provides positive operating cash flow to Parkmead
-- Parkmead maintains strict financial discipline with very low operating costs
Significant wind farm potential; high-grading of renewables
portfolio underway
-- In September 2019, the Company acquired Pitreadie Farm
Limited ("Pitreadie") as part of its expansion into renewable
energy
-- Studies being conducted on the Group's acquired onshore land
for the potential development of a large
wind farm
-- One of the large areas of land acquired by Parkmead lies
adjacent to the Mid Hill Wind Farm which encompasses 33 Siemens
wind turbines with a generating capacity of around 75MW
-- High-grading of renewables portfolio underway with expected
divestments of non-core acreage
-- Renewable energy opportunities accessed through strategic
acquisition of Pitreadie, where a gain on purchase was recorded of
GBP0.36 million
-- Parkmead's early commitment to building a balanced energy
business through its focus on gas, widely seen as the primary
transition fuel, pre-empted the recent energy transition
acceleration
-- Revenue-generating renewable energy opportunities continue to
be analysed by Parkmead as it seeks to build out its renewable
energy portfolio
Excellent progress on Skerryvore, GPA and Platypus oil and gas
projects
-- New seismic purchased in Q3 2019 covering the Skerryvore
prospect and surrounding area, which is being reprocessed
throughout 2020 to mature the collection of prospects
-- Early-stage reprocessing work showing positive improvements
in seismic image quality, at the Mey Sandstone reservoir level in
particular
-- Skerryvore's main prospects are three stacked targets, at Mey
and Chalk level, which together could contain 157 million barrels
of oil equivalent ("MMBoe")
-- Parkmead is in commercial discussions with the Scott field
partnership, including CNOOC, in order to agree terms for a
tie-back of the Greater Perth Area ("GPA") to the Scott
facilities
-- Parkmead is also in discussions with other operators in the
vicinity where new opportunities have arisen during the year
-- Infrastructure studies completed in 2020 have confirmed that
there are no technical hurdles to produce Perth oil from the wells
all the way through to the onshore facilities
-- Field Development Plan draft and Environmental Statement
submitted to the OGA and OPRED, respectively, for the development
of the Platypus gas project in the UK Southern North Sea
-- Selected development concept is a subsea tie-back to the
Cleeton platform and commercial discussions are ongoing
-- Parkmead and the Platypus partners have obtained an extension
to the Platypus licence to take account of COVID-19 delays
Multiple new opportunities identified across Netherlands
portfolio
-- Gross production at the Group's Netherlands assets for the
financial year averaged 38.3 million cubic feet per day ("MMscfd"),
which equates to approximately 6,608 barrels of oil equivalent per
day ("boepd")
-- Low-cost onshore gas portfolio in the Netherlands produces
from four separate gas fields with an average field operating cost
of just US$9.9 per barrel of oil equivalent, generating strong cash
flows
-- The Brakel field was brought back to full production during
the period following the completion of a work programme
-- Concept selection planning at the Papekop oil and gas
discovery has begun, a proven field with 24.2 million barrels
("MMBbl") of oil-in-place and 39.4 billion cubic feet ("Bcf") of
gas-in-place
-- Multiple further opportunities exist around Diever West, such
as Boergrup and De Bree, both of which contain stacked targets with
similar characteristics to Diever West
-- Boergrup well permitting and planning is underway
-- A new seismic reprocessing project began in Q4 2019, which
will help define and high-grade the extensive
prospects around Diever West
-- Dynamic reservoir modelling suggests Diever West held initial
gas-in-place of approximately 108 Bcf, more
than double the post-drill static volume estimate of 41 Bcf
Substantial oil and gas reserves and resources
-- 2P reserves of 45.7 million barrels of oil equivalent
("MMBoe") as at 30 September 2020 (46.0 MMBoe as at 30 September
2019)
Well positioned for further acquisitions and opportunities
-- Eight acquisitions, at both asset and corporate level, have been completed to date
-- Parkmead actively evaluating further acquisition opportunities in renewables, gas and oil
Parkmead's Executive Chairman, Tom Cross, commented:
"I am pleased to report on an important year of progress for
Parkmead. Despite revenues being impacted by the low gas price
environment, Parkmead has delivered growth in its asset base whilst
retaining financial strength. This creates a strong foundation from
which to build and Parkmead remains robust in the context of
broader global uncertainty brought about by the COVID-19
pandemic.
Following our first strategic acquisition in the renewable
energy arena, we continue to evaluate further opportunities.
Renewable energy is directly in line with Parkmead's business plan,
broadening and enhancing the Group's energy asset base. Potential
has been identified for a large wind farm project on a part of the
Group's onshore acreage.
Further advances have been made within the Greater Perth Area
project. The Group is in discussions with a number of leading,
international service companies and oil companies in relation to
driving forward the GPA project.
The team at Parkmead continues to work intensively to evaluate
and execute further value-adding opportunities which could provide
additional upside for the Group.
Parkmead is well positioned for the future. We have excellent UK
and Netherlands regional expertise, significant cash resources, and
a growing portfolio of high-quality assets. The Group will continue
to build upon the inherent value in its existing interests with a
balanced, acquisition-led, growth strategy to secure opportunities
that maximise future value for our shareholders."
For enquiries please contact:
The Parkmead Group plc +44 (0) 1224 622200
Tom Cross (Executive Chairman)
Ryan Stroulger (Chief Financial Officer)
finnCap Ltd (NOMAD and Broker to Parkmead) +44 (0) 20 7220 0500
Marc Milmo / Emily Watts / Matthew
Radley - Corporate Finance
Andrew Burdis / Tim Harper - ECM
CHAIRMAN'S STATEMENT
2020 has been an important year of progress for Parkmead,
despite the unprecedented challenges resulting from the COVID-19
pandemic. Parkmead has shown its resilience throughout this period
because of the strong foundations built in preceding years, which
has positioned the Group extremely well to continue its growth.
The Company completed its maiden renewable energy acquisition
during the year, demonstrating its early commitment to building a
balanced energy business and entering this exciting area of
growth.
Parkmead has continued to show its strict financial discipline
whilst intensively evaluating a number of value-adding acquisition
opportunities that we have identified through the current economic
environment.
Building a balanced portfolio
In September 2019, Parkmead completed a significant renewable
energy transaction through the all-share acquisition of Pitreadie.
This acquisition was an important milestone for the Group as we
look to build a balanced energy portfolio, ensuring Parkmead is
well positioned to withstand future commodity price fluctuations as
well as investing in an onshore renewables sector with huge growth
opportunities. The Board of Parkmead believes that the growth of
the renewable energy sector will continue to accelerate as the UK
focuses its attention on meeting its net-zero emissions target by
2050.
The portfolio of land now owned by Parkmead, through the
acquisition of Pitreadie, has substantial renewable energy
potential in the form of wind, solar and biomass opportunities.
Our team has already identified substantial wind energy
potential at one location, some 15 miles west of Aberdeen. The site
has excellent average wind speeds of between 7-10 m/s. This acreage
lies adjacent to the Mid Hill Wind Farm which contains 33 Siemens
wind turbines with a generating capacity of around 75 megawatts
(MW).
Parkmead is advancing its renewable energy opportunities through
its in-house expertise coupled with a carefully selected
consultancy team. This will ensure we maximise the upside value
from this new business area.
The Group has also begun evaluating the land within its
renewable energy business and it is expected that land with low
renewable energy potential will be divested.
Strong production from low-cost operations
In the Netherlands, we are working closely with our joint
venture partners to maximise the potential of our resources across
all licences. There are significant low-risk prospects within our
acreage, particularly on the Drenthe VI licence where the Boergrup,
Leemdijk and De Bree structures are being evaluated. Well planning
and government permitting is now underway on the potential Boergrup
well, with high level well planning also underway on Leemdijk and
De Bree. All of these prospects can be drilled from the Diever
wellsite, reducing the permitting requirements and future
infrastructure tie-in costs. Seismic reprocessing is currently
being undertaken across the Drenthe VI licence to further refine
and de-risk the remaining prospectivity on the block. At Papekop,
subsurface reservoir static and dynamic modelling work is nearing
completion, with the results feeding into the ongoing concept
select planning.
Our Netherlands gas production has remained strong with average
gross production during FY 2020 of 38.3 MMscfd, approximately 6,608
boepd. The average operating cost during this year was US$9.9 per
barrel of oil equivalent. Given the low commodity price environment
we are currently experiencing, this profitable gas production
provides important and valuable cash flow to the Group.
Parkmead's Netherlands production was uninterrupted by the
lockdown restrictions introduced by the Dutch Government in
March.
Major progress on three UKCS E&P projects
The Platypus gas project has seen key milestones reached in the
past year. A Field Development Plan draft and Environmental
Statement was submitted in October 2019 to the OGA and OPRED,
respectively, for the development of the project in the UK Southern
North Sea.
Mid case recoverable reserves from Platypus are estimated at 106
Bcf, with peak production of 47 MMscfd. The anticipated producing
life of the field is approximately 20 years. Platypus East
(previously named Possum) provides a material upside opportunity
for the project, potentially adding another 50 Bcf of recoverable
reserves.
The development option selected for the Platypus field was
reached following an extensive concept selection process. This
considered technical feasibility, project execution schedule and
commercial viability, in addition to environmental, health and
safety issues.
The selected development concept will consist of two wells
connected to a subsea manifold, with gas export to the Cleeton
platform via a 23km pipeline. Produced fluids will arrive at the
Cleeton facilities before being routed directly to the Dimlington
Terminal for separation and processing. Front End Engineering
Design studies associated with the Cleeton and Dimlington system
continue to progress, in partnership with Perenco.
Parkmead and the Platypus partners have obtained an extension of
the Platypus licence from the OGA to take account of COVID-19
delays.
The Greater Perth Area development continues to form a key part
of our balanced portfolio of assets. This year has seen the
completion of transportation studies for our base case development
concept. The studies have confirmed there are no technical hurdles
associated with the transportation and processing of fluids from
the Perth producing wells all the way through the infrastructure to
the onshore facilities. Parkmead continues to engage with leading,
internationally-renowned supply chain companies in order to
optimise the commercial solution.
Parkmead is in commercial discussions with the Scott field
partnership, led by China National Offshore Oil Corporation (CNOOC)
International, in order to explore terms for a tie-back of the GPA
oil hub project to the Scott facilities. Scott lies just 10km
southeast of the GPA project and a tie-back could yield a number of
mutually beneficial advantages for both the Scott partnership and
Parkmead. A tie-back to Scott is just one path to potentially
unlock the substantial value of the GPA project. Parkmead continues
to engage with leading, internationally-renowned supply chain and
service companies as it seeks to optimise the commercial solution
and maximise shareholder value from the GPA project.
Parkmead is also in discussions with other operators in the
vicinity where new opportunities have arisen during the year.
Skerryvore has also seen progression this year with the results
of early-stage reprocessing work showing positive improvements in
seismic image quality, at the Mey Sandstone reservoir level in
particular. Three stacked prospects are targeted at Skerryvore at
Mey, Ekofisk and Tor levels, which combined have the potential to
contain 157 million barrels of recoverable oil equivalent on a P50
basis. A discovery at Skerryvore could add considerable upside to
Parkmead. Additional Jurassic and Triassic prospectivity is
identified, similar to the recent Isabella discovery to the north,
operated by Total.
32(nd) UKCS licensing round success
In the most recent UK 32(nd) licensing round awards, Parkmead
was offered four offshore blocks and part blocks spanning three new
licences.
The first of these provisional licence awards covers Blocks
14/20g & 15/16g (Parkmead 50% and operator) situated in the
Central North Sea, adjacent to Parkmead's extensive Greater Perth
Area ("GPA"). These blocks contain two undeveloped oil discoveries,
Fynn Beauly and Fynn Andrew, as well as an oil prospect in the
Piper Formation.
Fynn Beauly is a very large heavy oil discovery which extends
across a number of blocks. The entire discovery is estimated to
contain oil-in-place of between 602 and 1343 million barrels.
Blocks 14/20g & 15/16g contain a section of the discovery to
the south, with oil-in-place of between 77 and 202 million barrels.
The second discovery, Fynn Andrew, is wholly contained on the
offered blocks and holds 50 million barrels of oil-in-place on a
P50 basis.
The addition of these blocks to Parkmead's portfolio would add
34.4 million barrels of 2C resources to the Group.
Two further licences have been offered to Parkmead as part of
the 32nd Round. Block 14/20c (Parkmead 100%) is located in the
Central North Sea and contains extensions to the Lowlander oil
field and the Fynn Beauly oil discovery. Block 42/28g (Parkmead
100%) is situated in the Southern North Sea near the Tolmount gas
discovery.
Increasing our team's capabilities
In line with the Group's strategy to deliver maximum value from
its high-quality asset base, the appointment of Colin Maclaren to
the Board was made in May 2020.
Colin brings with him 37 years of extensive legal and commercial
experience which will be valuable to the Group as we expand our
onshore renewables portfolio.
Results
The Group's revenue for the year to 30 June 2020 was GBP4.1m
(2019: GBP8.3m), generating a gross profit of GBP1.3m (2019:
GBP5.7m). This gross profit shows the resilience and high-quality
nature of Parkmead's gas operations in the Netherlands, despite
record low European gas prices and the unparalleled conditions this
year caused by the COVID-19 pandemic.
Detailed technical work undertaken across the wider Parkmead
portfolio has allowed the Group to release non-core acreage, such
as P.2218, considerably reducing licence costs going forward. The
release of this acreage led to a non-cash impairment charge of
GBP1.6m (2019: GBP0.2) resulting in a small loss for the period of
GBP0.5m (2019: GBP2.4 profit). A net profit before tax and non-cash
impairment charges was recorded of GBP0.8 million.
Administrative expenses were GBP0.3m (2019: GBP0.4m), which
included a non-cash credit in respect of share based payments of
GBP1.4m (2019: GBP1.1m credit). Underlying administrative expenses,
excluding share based payments, were GBP1.7m (2018: GBP1.5m).
Parkmead's total assets at 30 June 2020 increased to GBP89.8m
(2019: GBP82.3m). Interest bearing loans receivable were GBP2.9m
(2019: GBP2.9m). Cash and cash equivalents at year end were
GBP25.7m (2019: GBP30.7m). The Group's net asset value rose to
GBP71.3m (2019: GBP68.3m). Parkmead is therefore well positioned to
withstand the current market conditions and views the macro
environment as an opportunity to capitalise on gas, oil and wider
energy opportunities. This positive position is a direct result of
proactive portfolio management and a strong focus on capital
discipline throughout the year.
Due to Parkmead's ongoing growth opportunities and associated
investment programme, the Board is not recommending the payment of
a dividend in 2020 (2019: GBPnil).
Outlook
The outlook for Parkmead is bright, as our experienced team
continues to analyse a number of high-growth opportunities to
create value for shareholders and strengthen the Group going
forward. As we look towards 2021, our strong balance sheet and
healthy cash position provide Parkmead with the ability to
capitalise on such opportunities.
Tom Cross
Executive Chairman
19 November 2020
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
Notes:
1. Tim Coxe, Parkmead Group's Managing Director, North Sea, who
holds a First-Class Master's Degree in Engineering and over 20
years of experience in the oil and gas industry. Tim is accountable
for the company's HSE, Subsurface, Drilling, Production Operations
and Development Project functions and has approved the technical
information contained in this announcement. Reserves and contingent
resource estimates have been produced by Parkmead's subsurface team
and are stated as of 30 September 2020. Parkmead's evaluation of
reserves and resources was prepared in accordance with the 2007
Petroleum Resources Management System prepared by the Oil and Gas
Reserves Committee of the Society of Petroleum Engineers and
reviewed and jointly sponsored by the World Petroleum Council, the
American Association of Petroleum Geologists and the Society of
Petroleum Evaluation Engineers.
Glossary of key terms
Oil in place The total quantity of petroleum that is estimated to exist originally in naturally
occurring
reservoirs
Contingent Resources Those quantities of petroleum estimated, as of a given date, to be potentially
recoverable
from known accumulations by application of development projects but which are not
currently
considered to be commercially recoverable due to one or more contingencies.
Contingent Resources
are a class of discovered recoverable resources
Recoverable resources Those quantities of hydrocarbons that are estimated to be producible from discovered
or undiscovered
accumulations
Proved and Probable or "2P" Those additional Reserves which analysis of geoscience and engineering data indicate
are less
likely to be recovered than Proved Reserves but more certain to be recovered than
Possible
Reserves. It is equally likely that actual remaining quantities recovered will be
greater
than or less than the sum of the estimated Proved plus Probable Reserves (2P). In
this context,
when probabilistic methods are used, there should be at least a 50 per cent.
probability that
the actual quantities recovered will equal or exceed the 2P estimate
Reserves Reserves are those quantities of petroleum anticipated to be commercially recoverable
by application
of development projects to known accumulations from a given date forward under
defined conditions.
Reserves must further satisfy four criteria: they must be discovered, recoverable,
commercial,
and remaining (as of the evaluation date) based on the development project(s)
applied. Reserves
are further categorized in accordance with the level of certainty associated with the
estimates
and may be sub-classified based on project maturity and/or characterized by
development and
production status
P50 Reflects a volume estimate that, assuming the accumulation is developed, there is a
50% probability
that the quantities actually recovered will equal or exceed the estimate. This is
therefore
a median or best case estimate
Group statement of profit or loss
for the year ended 30 June 2020
Note 2020 2019
GBP'000 GBP'000
Revenue 4,080 8,269
Cost of sales (2,806) (2,524)
Gross profit 1,274 5,745
Exploration and evaluation expenses (1,556) (171)
Gain on bargain purchase 362 -
Administrative expenses 2 (257) (436)
Operating profit / (loss) (177) 5,138
Finance income 199 209
Finance costs (814) (546)
Profit / (loss) before taxation (792) 4,801
Taxation 310 (2,385)
------------------------------------------- ----- -------- --------
Profit / (loss) for the year attributable
to the equity holders of the Parent (482) 2,416
------------------------------------------- ----- -------- --------
Earnings / (loss) per share (pence)
Basic 3 (0.45) 2.44
Diluted 3 (0.45) 2.43
Group statement of profit or loss and other comprehensive income
for the year ended 30 June 2020
2020 2019
GBP'000 GBP'000
Profit / (loss) for
the year (482) 2,416
Items that may be reclassified
subsequently to profit
or loss
Changes in financial
assets at fair value
through other comprehensive
income - 651
-------------------------------------- ------------------------------ -----------
- 651
Income tax relating
to components of other
comprehensive income - -
-------------------------------- ---- ------------------------------ -----------
Other comprehensive
income for the year,
net of tax - 651
-------------------------------------- ------------------------------ -----------
Total comprehensive
profit / (loss) for
the year attributable
to the equity holders
of the Parent (482) 3,067
-------------------------------------- ------------------------------ -----------
Group statement of financial position
as at 30 June 2020
2020 2019
GBP'000 GBP'000
Non-current assets
Property, plant and equipment:
development & production 11,979 11,657
Property, plant and equipment:
other 9,411 165
Goodwill 2,174 2,174
Exploration and evaluation
assets 36,089 34,052
Interest bearing loans 2,900 -
Deferred tax assets 3 3
Total non-current assets 62,556 48,051
-------------------------------------- ----------------------------- -----------
Current assets
Trade and other receivables 1,414 658
Interest bearing loans - 2,900
Inventory 131 -
Cash and cash equivalents 25,708 30,666
-------------------------------------- ----------------------------- -----------
Total current assets 27,253 34,224
-------------------------------------- ----------------------------- -----------
Total assets 89,809 82,275
-------------------------------------- ----------------------------- -----------
Current liabilities
Trade and other payables (4,437) (4,560)
Current tax liabilities - (1,563)
Total current liabilities (4,437) (6,123)
-------------------------------------- ----------------------------- -----------
Non-current liabilities
Trade and other payables (1,372) (5)
Loans (3,600) -
Deferred tax liabilities (1,404) (1,284)
Decommissioning provisions (7,650) (6,607)
-------------------------------------- ----------------------------- -----------
Total non-current liabilities (14,026) (7,896)
-------------------------------------- ----------------------------- -----------
Total liabilities (18,463) (14,019)
-------------------------------------- ----------------------------- -----------
Net assets 71,346 68,256
-------------------------------------- ----------------------------- -----------
Equity attributable to
equity holders
Called up share capital 19,678 19,533
Share premium 87,805 87,805
Merger reserve 3,376 -
Retained deficit (39,513) (39,082)
-------------------------------------- ----------------------------- -----------
Total Equity 71,346 68,256
-------------------------------------- ----------------------------- -----------
Group statement of changes in equity
for the year ended 30 June 2020
Share capital Share premium Merger Revaluation Retained Total
reserve reserve deficit
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 30 June 2018 19,533 87,805 - (325) (42,789) 64,224
Profit for the
year - - - - 2,416 2,416
Changes in financial
assets at fair
value through other
comprehensive income - - - 651 - 651
------------------------ -------------- -------------- --------- ------------ --------- -------------------
Total comprehensive
income for the
year - - - 651 2,416 3,067
Transfer revaluation
reserve on disposal
of financial assets
at fair value through
other comprehensive
income - - - (326) 326 -
Gains arising on
repayment of employee
share based loans - - - - 941 941
Share-based payments - - - - 24 24
------------------------ -------------- -------------- --------- ------------ --------- -------------------
At 30 June 2019 19,533 87,805 - - (39,082) 68,256
------------------------ -------------- -------------- --------- ------------ --------- -------------------
Loss for the year - - - - (482) (482)
Total comprehensive
income / (loss)
for the year - - - - (482) (482)
Share capital issued 145 - 3,376 - - 3,521
Share-based payments - - - - 51 51
------------------------ -------------- -------------- --------- ------------ --------- -------------------
At 30 June 2020 19,678 87,805 3,376 - (39,513) 71,346
------------------------ -------------- -------------- --------- ------------ --------- -------------------
Group statement of cashflows
for the year ended 30 June 2020
2020 2019
Note GBP'000 GBP'000
Cashflows from operating
activities
Cashflows from operations 4 882 4,733
Taxation credit (1,883) (1,779)
----------------------------------- ----- ---------------------- -----------
Net cash (used in) / generated
by operating activities (1,001) 2,954
----------------------------------- ----- ---------------------- -----------
Cash flow from investing
activities
Interest received 163 239
Acquisition of exploration
and evaluation assets (3,335) (3,744)
Proceeds from sale of financial
assets at fair value through
other comprehensive income - 6,351
Acquisition of property,
plant and equipment: development
and production (34) (63)
Disposal of property, plant
and equipment: development
and production - 211
Acquisition of property,
plant and equipment: other (416) (190)
Net cash from Pitreadie 24 -
Net cash (used in) / generated
by investing activities (3,598) 2,804
----------------------------------- ----- ---------------------- -----------
Cash flow from financing
activities
Interest paid (113) (45)
Lease payments (410) -
Proceeds from loans and
borrowings - 941
Net cash (used in) / generated
by in financing activities (523) 896
----------------------------------- ----- ---------------------- -----------
Net (decrease) / increase
in cash and cash equivalents (5,122) 6,654
----------------------------------- ----- ---------------------- -----------
Cash and cash equivalents
at beginning of year 30,666 23,804
Effect of foreign exchange
rate differences 164 208
----------------------------------- ----- ---------------------- -----------
Cash and cash equivalents
at end of year 25,708 30,666
----------------------------------- ----- ---------------------- -----------
Notes to the financial information for the year ended 30 June
2020
1. Basis of preparation of the financial information
The financial information set out in this announcement does not
comprise the Group and Company's statutory accounts for the years
ended 30 June 2020 or 30 June 2019.
The financial information has been extracted from the audited
statutory accounts for the years ended 30 June 2020 and 30 June
2019. The auditors reported on those accounts; their reports were
unqualified and did not contain a statement under either Section
498 (2) or Section 498 (3) of the Companies Act 2006 and did not
include references to any matters to which the auditor drew
attention by way of emphasis.
The statutory accounts for the year ended 30 June 2019 have been
delivered to the Registrar of Companies. The
statutory accounts for the year ended 30 June 2020 will be
delivered to the Registrar of Companies following the
Company's Annual General Meeting.
The accounting policies are consistent with those applied in the
preparation of the interim results for the period ended 31 December
2019 and the statutory accounts for the year ended 30 June 2019,
except for the adoption of IFRS 16 Leases which has resulted in
capitalisation of former operating leases, and have been prepared
in accordance with International Financial Reporting Standards
("IFRS") as adopted by the European Union.
2. Administrative expenses
Administrative expenses include a credit in respect of a
non-cash revaluation of share appreciation rights (SARs) and share
based payments totalling GBP1,364,000 (2019: GBP1,062,000 credit).
The SARs may be settled by cash and are therefore revalued with the
movement in share price. The valuation was impacted by the decrease
in share price between 30 June 2019 and 30 June 2020.
3. Profit / (loss) per share
Profit/(loss) per share attributable to equity holders of the
Company arises from continuing and discontinued operations as
follows:
2020 2019
Profit/(loss) per 1.5p ordinary share
(pence)
Basic (0.45)p 2.44p
Diluted (0.45)p 2.43p
The calculations were based on the following information:
2020 2019
GBP'000 GBP'000
(Loss) / profit attributable to
ordinary shareholders
Continuing operations (482) 2,416
------------------------------------------- ------------------ -----------------
Total (482) 2,416
------------------------------------------- ------------------ -----------------
Weighted average number of shares
in issue
Basic weighted average number of
shares 106,282,006 98,929,160
------------------------------------------- ------------------ -----------------
Dilutive potential ordinary shares
Share options - 1,791,105
------------------------------------------- ------------------ -----------------
Profit/(loss) per share is calculated by dividing the
profit/(loss) for the year by the weighted average number of
ordinary shares outstanding during the year.
Diluted profit/(loss) per share
Profit/(loss) per share requires presentation of diluted
profit/(loss) per share when a company could be called upon to
issue shares that would decrease net profit or net loss per share.
When the group makes a loss the outstanding share options are
therefore anti-dilutive and so are not included in dilutive
potential ordinary shares.
4. Notes to the statement of cashflows
Reconciliation of operating (loss) / profit to net cash flow
from continuing operations
2020 2019
GBP'000 GBP'000
Operating profit/(loss) (177) 5,138
Depreciation 764 217
Amortisation and exploration write off 1,298 -
Disposal of development and production assets - 22
Gain on bargain purchase (362) -
Provision for equity settled share based payments 51 24
Currency translation adjustments (164) (208)
Movement in inventories 230 -
(Increase) / decrease in receivables (683) 636
(Decrease) / increase in payables (75) (1,096)
---------------------------------------------------------- -------------- --------------
Net cash flow from operations 882 4,733
---------------------------------------------------------- -------------- --------------
5. Approval of this preliminary announcement
This announcement was approved by the Board of Directors on 19
November 2020.
6. Posting of annual report and accounts
Copies of the Annual Report and Accounts will be posted to
shareholders shortly. The Annual Report and Accounts will be made
available to download, along with a copy of this announcement, on
the investor relations section of the Company's website
www.parkmeadgroup.com
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END
FR FIFLRLRLIFII
(END) Dow Jones Newswires
November 20, 2020 02:00 ET (07:00 GMT)
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