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29 Sep 2023 07:00
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company
29 September 2023
Armadale Capital Plc
('Armadale' the 'Company' or the 'Group')
Interim Results
Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce its unaudited interim results for the six months ended 30 June 2023.
Highlights
During the half year Armadale has made further progress towards commercial production at the Mahenge Liandu Project in Tanzania.
· Armadale continue to advance the FEED study in preparation for obtaining project financing. This information will enhance the detail in the Definitive Feasibility Study.
· Armadale continued to collect environmental baseline data as is required for the compliance of the mining lease and to assist in the design and planning of the proposed mining operations. In addition, the base line data for temperature, pressure, wind, moon phase, humidity, solar radiation, rainfall and stream flow data assists the local community to have access to regional weather data for local planning requirements in the Mahenge region.
· Logistics routes for the product were assessed to determine the optimum methods to ensure the final product will enter the market at the desired price level.
The Group is continuing discussions with several potential financing partners regarding the debt and equity funding required for project development. The significantly improved market fundamentals for graphite concentrates has lead to increased interest from stakeholders capable of providing long-term project finance. Armadale continued its ongoing review of its quoted equity portfolio, where the Directors believe there are opportunities for capital gains, and made a number of acquisitions of quoted companies in the resources sector.
Armadale also continued to actively review other investment opportunities for mineral exploration in Africa.
During the period, a further £60,000 was spent on the project and the Company also expanded its portfolio of passively managed investments, spending £587,000 on three new holdings in listed resource companies. The portfolio performed well during the period, increasing in overall market value by £456,000 net. At 30 June 2023 the Company had cash of £300,000 (with and average monthly cash burn of about £20,000 including annual audit costs) and listed investments worth £1,593,000.
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2023
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2023
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| Unaudited Six months ended | |
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| 30 June 2023 £'000 | 30 June 2022 £'000 |
Administrative expenses | (165) | (151) | |
Change in fair value of investments | 456 | (1) | |
Profit/(loss) before taxation | 291 | (152) | |
Taxation | - | - | |
Profit/(loss) after taxation | 291 | (152) | |
Other comprehensive income/(loss) |
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Items that may be reclassified to profit or loss: | |||
Exchange differences on translating foreign entities | 24 | (57) | |
Total comprehensive income/(loss) attributable to equity holders of the parent company |
| 315 | (209) |
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| Pence | Pence |
Earnings/(loss) per share attributable to equity holders of the parent company (note 3) Basic and fully diluted | 0.05 |
(0.03) | |
Consolidated Statement of Financial Position
At 30 June 2023
| Unaudited | Audited | ||
| 30 June 2023 | 30 June 2022 | 31 December 2022 | |
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| £'000 | £'000 | £'000 |
Assets | ||||
Non-Current assets | ||||
Exploration and evaluation assets | 5,550 | 5,010 | 5,483 | |
Investments | 1,593 | 79 | 562 | |
7,143 | 5,089 | 6,045 | ||
Current assets | ||||
Trade and other receivables | 137 | 60 | 150 | |
Cash and cash equivalents | 300 | 1,723 | 1,046 | |
437 | 1,783 | 1,196 | ||
Total assets |
| 7,580 | 6,872 | 7,241 |
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Equity and liabilities | ||||
Equity |
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Share capital |
| 3,324 | 3,321 | 3,324 |
Share premium | 25,153 | 25,076 | 25,153 | |
Shares to be issued | 286 | 286 | 286 | |
Share option and warrant reserve | 362 | 610 | 362 | |
Foreign exchange reserve | 342 | 9 | 318 | |
Retained earnings | (21,988) | (22,473) | (22,279) | |
Total equity | 7,479 | 6,829 | 7,164 | |
Current liabilities |
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Trade and other payables |
| 101 | 43 | 77 |
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Total equity and liabilities |
| 7,580 | 6,872 | 7,241 |
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Unaudited Consolidated Statement of Changes in Equity
For the period ended 30 June 2023
Share Capital £'000 | Share Premium £'000 | Shares to be Issued £'000 | Share Option Reserve £'000 | Foreign Exchange Reserve £'000 | Retained Earnings £'000 | Total
£'000 | |
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Balance 1 January 2022 | 3,275 | 23,906 | 286 | 925 | 66 | (22,636) | 5,822 |
Loss for the year | - | - | - | - | - | (206) | (206) |
Other comprehensive income | - | - | - | - | 252 | - | 252 |
Total comprehensive income for the year |
- |
- |
- |
- | 252 | (206) | 46 |
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Issue of shares | 49 | 1,247 | - | - | - | - | 1,296 |
Transfer on exercise and expiry of warrants | - | - | - | (563) | - | 563 | - |
Total other movements | 49 | 1,247 | - | (563) | - | 563 | 1,296 |
Balance 31 December 2022 | 3,324 | 25,153 | 286 | 362 | 318 | (22,279) | 7,164 |
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Profit for the period | - | - | - | - | - | 291 | 291 |
Other comprehensive income | - | - | - | - | 24 | - | 24 |
Total comprehensive income for the period | - | - | - | - | 24 | 291 | 315 |
Balance 30 June 2023 | 3,324 | 25,153 | 268 | 362 | 342 | (21,988) | 7,479 |
The following describes the nature and purpose of each reserve within shareholders' equity:
Reserve Description and purpose
Share capital Amount subscribed for share capital at nominal value
Share premium Amount subscribed for share capital in excess of nominal value, net of allowable expenses
Shares to be issued Share capital to be issued in connection with historical acquisition
Share option and warrant reserve Cumulative charge recognised under IFRS2 in respect of share-based payment awards
Foreign exchange reserve Gains/losses arising on re-translating the net assets of overseas operations into sterling
Retained earnings Cumulative net gains and losses recognised in the statement of comprehensive income
Consolidated Statement of Cash Flows
For the period ended 30 June 2023
| Unaudited | Audited | |
| Six Months ended | Year ended | |
| 30 June 2023 | 30 June 2022 | 31 December 2022 |
£'000 | £'000 | £'000 | |
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Cash flows from operating activities | |||
Profit/(loss) before taxation | 291 | (152) | (206) |
Change in fair value of investments | (456) | 1 | (102) |
| (165) | (151) | (308) |
Changes in working capital | |||
Receivables | 13 | 30 | (11) |
Payables | 24 | (31) | 12 |
Net cash used in operating activities | (128) | (152) | (307) |
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Cash flows from investing activities | |||
Expenditure on exploration and evaluation assets | (60) | (345) | (518) |
Purchase of listed investments | (587) | (411) | |
Sale of listed investments | 29 | 58 | 89 |
Net cash used in investing activities | (618) | (287) | (840) |
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Cash flows from financing activities | |||
Proceeds from share issues | - | 1,276 | 1,307 |
Net cash from financing activities | - | 1,276 | 1,307 |
Net (decrease)/increase in cash and cash equivalents | (746) | 837 | 160 |
Cash and cash equivalents at 1 January 2023 | 1,046 | 886 | 886 |
Cash and cash equivalents at 30 June 2023 | 300 | 1,723 | 1,046 |
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Notes to the unaudited condensed consolidated financial statements
For the period ended 30 June 2023
1. Incorporation and principal activities
Country of incorporation
Armadale Capital Plc was incorporated in the United Kingdom as a public limited company on 19 August 2005. Its registered office is 1 Arbrook Lane, Esher, Surrey, KT10 9EG.
Principal activities
The principal activity of the Group during the period was that of an investment company.
2. Accounting policies
2.1. Statement of compliance
The financial information for the six months ended 30 June 2022 and 30 June 2021 is unaudited and does not constitute the Group's statutory financial statements for those periods within the meaning of Section 434 of the Companies Act 2006. The comparative financial information for the year ended 31 December 2021 has been derived from the Annual Report and Accounts, which were approved by the Board of Directors on 20 May 2022 and delivered to the Registrar of Companies. The report of the Auditors on those accounts was unqualified and did not contain any statement under Section 498 of the Companies Act 2006.
This condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union. This condensed set of financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2021 which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
The accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 December 2021 as described in those annual financial statements.
In respect of new financial reporting standards which came into effect for reporting periods beginning on 1 January 2022, the Directors consider that their implementation has no material effect on the financial information presented in this statement.
2.2. Going Concern
The financial statements have been prepared on the going concern basis as, in the opinion of the Directors, there is a reasonable expectation that the Group will continue in operational existence for the foreseeable future. The Company's ability to continue as a going concern and to achieve its long term strategy of developing its exploration projects is dependent on further fundraising. At 30 June 2023, the Group had cash of £300,000 and listed investments with a value of £1,593,000.
2.3. Exploration and evaluation assets
These assets are recorded at cost and are amortised over their expected useful life on a pro rata basis of actual production for the period to expected total production.
2.4. Investments
Investments are stated at fair value.
3. Earnings/(loss) per share
The calculation of earnings per share is based on a profit of £291,000 (2022, loss of £152,000) and on 587,529,895 (2022, 560,588,302) Ordinary Shares, being the weighted average number of Ordinary Shares in issue during the period.
For the period ended 30 June 2022, there was no difference between basic loss per share and diluted loss per share as the Group reported a loss.
**ENDS**
For further information, please visit the Company's website www.armadalecapitalplc.com, follow Armadale on Twitter @ArmadaleCapital or contact:
Enquiries: | |
Armadale Capital Plc Tim Jones, Company Secretary | +44 (0)20 7236 1177 |
Nomad and broker: Cavendish Capital Markets Limited Simon Hicks / Seamus Fricker | +44 (0)20 7220 0500 |
The Company also announces that its Nominated Adviser and Broker, finnCap Ltd, has now changed its name to Cavendish Capital Markets Limited following completion of its own corporate merger.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU No. 596/2014) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
More information can be found on the website www.armadalecapitalplc.com.
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