12 Apr 2010 15:36
Alecto Energy plc / Index: AIM / Epic: ALO
12 April 2010
Alecto Energy plc ('Alecto' or the 'Company')
Final Results
CHAIRMAN'S REPORT
Operational Review
The past year has been a period of re-orientation for Alecto. Following a board restructure and a placing that raised £720,000 for the Company, we have been focusing on implementing the Company's investing strategy.
While we evaluated many projects in line with our investing strategy towards the end of 2009, none of these progressed until after the year end.
On 27 January 2010 the Company announced that it had entered into a non-binding memorandum of terms with Bulgarian Mining Company ("BMC") giving Alecto a 90 day exclusivity period to assess uranium exploration licences held by BMC. Alecto also agreed to provide BMC with a 90 day working capital facility of £45,000 for general working capital related to BMC's strategy of acquiring uranium exploration licences in Bulgaria. Bulgaria was historically a top 20 producer of uranium globally, however, in 1992 mining ceased due to it becoming uneconomical as a result of low uranium prices. Recent years have seen a revival in the mining industry in general with increased foreign investment and good exploration results. There has been a drive to privatise the mining sector and the Government of Bulgaria is working to enforce new regulations in line with EU standards. The Company has engaged SRK Exploration Services to perform a detailed analysis of the licences in question and we look forward to announcing the results of this by the end of April 2010. This is an exciting opportunity to access some high grade uranium assets at a low entry cost and we look forward to developing this project as the current year progresses.
Alongside the agreement with BMC, we have also been assessing other potential investments in the energy sector. We believe that there are some excellent opportunities available whereby we can utilise our new Board's strengths in these sectors and its deal structuring abilities to build an exciting future for the Company.
On 30 March we announced that we had completed a placing of 53,125,000 new ordinary shares of 0.07 pence each at a price of 0.32p per Placing Share, raising £170,000 to be used for working capital.
Other Matters
Along with the Annual Report and Financial Statements, a Notice of Annual General Meeting ("AGM") has today been sent to shareholders.
Included in the resolutions to be put before the AGM is a proposal to broaden the Company's investing strategy to include investing in natural resources and mining opportunities in addition to the Company's existing strategy of investing in the energy sector. The Directors believe that broadening the Company's investment strategy is in the best interests of the Company and will widen the opportunities available to us.
Also included is a resolution to consolidate the Company's share capital on the basis of 1 New Ordinary Share for every 10 Existing Ordinary share. The Board believes that a share consolidation at this point in the Company's development would be beneficial to our current shareholders and it should assist in reducing some of the volatility in our share price.
Financial Review
The loss of the Group for the year ended 31 December 2009 amounted to £213,750 (31 December 2008: £2,282,168). During the year the Company raised £720,000 through a placing of new shares. Subsequent to year end we have raised an additional £170,000 to be used to progress the Company's investing strategy.
Malcolm James
Chairman
12 April
Contact Information
| Damian Conboy | Alecto Energy plc | Tel: 020 3006 0260 |
| Greg Kuenzel | Alecto Energy plc | Tel: 020 3328 5670 |
| Nick Naylor | Allenby Capital Limited | Tel: 020 3328 5656 |
| Alex Price | Allenby Capital Limited | Tel: 020 3328 5656 |
BALANCE SHEETS
As at 31 December 2009
|
| Group |
| |
|
| 2009 £ | 2008 £ |
|
| Non-Current Assets |
|
|
|
| Property, plant and equipment | - | 292 |
|
| Intangible assets | - | - |
|
| Investment in subsidiaries | - | - |
|
| Other receivables | - | - |
|
|
| - | 292 |
|
| Current Assets |
|
|
|
| Trade and other receivables | 27,200 | 21,435 |
|
| Cash and cash equivalents | 741,964 | 276,145 |
|
|
| 769,164 | 297,580 |
|
| Total Assets | 769,164 | 297,872 |
|
| Current Liabilities |
|
|
|
| Trade and other payables | 67,330 | 102,465 |
|
| Total Liabilities | 67,330 | 102,465 |
|
| Net Assets | 701,834 | 195,407 |
|
| Capital and Reserves Attributable to Equity Holders of the Company |
|
|
|
| Called up share capital | 656,412 | 196,146 |
|
| Share premium account | 3,007,576 | 2,755,170 |
|
| Merger reserve | - | - |
|
| Other reserves | 182,504 | 175,707 |
|
| Foreign currency translation reserve | (52,106) | (52,814) |
|
| Retained losses | (3,092,552) | (2,878,802) |
|
| Total Equity | 701,834 | 195,407 |
|
GROUP INCOME STATEMENT
For the year ended 31 December 2009
|
| Group | |||||||||
|
| Continuing Operations | Discontinuing Operations | Total | Continuing Operations | Discontinuing Operations | Total | ||||
|
| 2009 £ | 2009 £ | 2009 £ | 2008 £ | 2008 £ | 2008 £ | ||||
| Administration expenses | (208,538) | (4,287) | (212,825) | (226,017) | (36,179) | (262,196) | ||||
| Other expenses | - | - | - | - | (282,960) | (282,960) | ||||
| Other income | - | - | - | - | 137,350 | 137,350 | ||||
| Other net (losses)/gains | - | (1,623) | (1,623) | - | 39,690 | 39,690 | ||||
| Operating Loss | (208,538) | (5,910) | (214,448) | (226,017) | (142,099) | (368,116) | ||||
| Impairment of goodwill | - | - | - | - | (1,920,371) | (1,920,371) | ||||
| Finance income | 698 | - | 698 | 13,566 | - | 13,566 | ||||
| Finance costs | - | - | - | - | (7,247) | (7,247) | ||||
| Loss Before Taxation | (207,840) | (5,910) | (213,750) | (212,451) | (2,069,717) | (2,282,168) | ||||
| Corporation tax expense | - | - | - | - | - | - | ||||
| Loss for the Year | (207,840) | (5,910) | (213,750) | (212,451) | (2,069,717) | (2,282,168) | ||||
| Attributable to Equity Holders | (207,840) | (5,910) | (213,750) | (212,451) | (2,069,717) | (2,282,168) | ||||
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|
|
|
|
|
|
| ||||
| Basic and diluted loss per share (pence) | (0.041) p | (0.001) p | (0.042) p | (0.08) p | (0.77) p | (0.85) p | ||||
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|
|
|
|
|
|
| ||||
Discontinuing Operations relate to the operations of Oreion Australia Energy Pty Ltd (see Note 21).
GROUP STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2009
|
| Group | |||||
|
| Continuing Operations | Discontinuing Operations | Total | Continuing Operations | Discontinuing Operations | Total |
|
| 2009 £ | 2009 £ | 2009 £ | 2008 £ | 2008 £ | 2008 £ |
| Loss for the year | (207,840) | (5,910) | (213,750) | (212,451) | (2,069,717) | (2,282,168) |
| Other comprehensive income: |
|
|
|
|
|
|
| Exchange differences on translating foreign operations |
- |
708 |
708 |
- |
(52,814) |
(52,814) |
| Total comprehensive income for the year |
(207,840) |
(5,202) |
(213,042) |
(212,451) |
(2,122,531) |
(2,334,982) |
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
For the year ended 31 December 2009
| Group (£) | Share capital | Share Premium | Merger Reserve | Share option reserve | Translation reserve | Profit and loss account | Total equity |
| As at 1 January 2008 | 161,146 | 2,755,170 | - | 175,707 | - | (1,001,634) | 2,090,389 |
| Share capital issued | 35,000 | - | 405,000 | - | - | - | 440,000 |
| Total comprehensive income for the year |
- |
- |
- |
- |
(52,814) |
(2,282,168) |
(2,334,982) |
| Transfer of goodwill impairment to reserve | - | - | (405,000) | - | - | 405,000 | - |
| As at 31 December 2008 | 196,146 | 2,755,170 | - | 175,707 | (52,814) | (2,878,802) | 195,407 |
| Share capital issued | 460,266 | 258,010 | - | - | - | - | 718,276 |
| Share based payments | - | (5,604) | - | 6,797 | - | - | 1,193 |
| Total comprehensive income for the year |
- |
- |
- |
- |
708 |
(213,750) |
(213,042) |
| As at 31 December 2009 | 656,412 | 3,007,576 | - | 182,504 | (52,106) | (3,092,552) | 701,834 |
The Statement of Changes in Shareholders' Equity for the Group shows the Company figures as at the beginning of the year plus the acquisition which created the Group for which the consolidated Financial Statements have been prepared.
GROUP CASH FLOW STATEMENT
For the year ended 31 December 2009
|
| Group | |||||
|
|
Continuing Operations | Dis-continuing Operations | Total |
Continuing Operations | Dis-continuing Operations | Total |
|
| 2009 £ | 2009 £ | 2009 £ | 2008 £ | 2008 £ | 2008 £ |
| Cash flows from operating activities |
|
|
|
|
|
|
| Operating loss | (208,538) | (5,910) | (214,448) | (226,017) | (142,099) | (368,116) |
| Adjustments for: |
|
|
|
|
|
|
| Depreciation | 292 | - | 292 | 1,235 | - | 1,235 |
| Share options expense | 1,193 | - | 1,193 | - | - | - |
| Profit from disposal of plant and equipment | - | - | - | (287) | - | (287) |
| Decrease/(increase) in prepayments | 4,732 | 948 | 5,680 | 8,841 | (806) | 8,035 |
| Decrease/(increase) in VAT receivable | 485 | 249 | 734 | 181,200 | (212) | 180,988 |
| Decrease in creditors | (45,139) | - | (45,139) | (7,853) | (191,709) | (199,562) |
| Decrease in accruals | (3,620) | - | (3,620) | (85,218) | - | (85,218) |
| Foreign exchange | - | 1,623 | 1,623 | - | (39,690) | (39,690) |
| Funding of discontinued operations | - | - | - | (2,111,331) | 2,111,331 | - |
| Net cash used in operations | (250,595) | (3,090) | (253,685) | (2,239,430) | 1,736,815 | (502,615) |
| Cash flows from investing activities |
|
|
|
|
|
|
| PEM commercialisation costs | - | - | - | - | (145,609) | (145,609) |
| Proceeds from sale of computer equipment | - | - | - | 500 | - | 500 |
| Interest paid | - | - | - | (7,247) | - | (7,247) |
| Interest received | 698 | - | 698 | 13,566 | - | 13,566 |
| Net cash generated/(used) in investing activities | 698 | - | 698 | 6,819 | (145,609) | (138,790) |
| Cash flows from financing activities |
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|
|
|
|
|
| Proceeds from issue of share capital | 723,277 | - | 723,277 | - | - | - |
| Transaction costs of share issue | (5,000) | - | (5,000) | - | - | - |
| Net cash generated from financing activities | 718,277 | - | 718,277 | - | - | - |
| Net increase (decrease) in cash and cash equivalents | 468,380 | (3,090) | 465,290 | (2,232,611) | 1,591,206 | (641,405) |
| Cash acquired on acquisition of subsidiary | - | - | - | - | 22,006 | 22,006 |
| Cash and cash equivalents at beginning of period | 273,132 | 3,013 | 276,145 | 2,505,743 | (1,610,199) | 895,544 |
| Exchange gains on cash and cash equivalents |
- |
529 |
529 |
- |
- |
- |
| Cash and cash equivalents at end of period | 741,512 | 452 | 741,964 | 273,132 | 3,013 | 276,145 |
ACCOUNTING POLICIES
For the year ended 31 December 2009
Summary of Significant Accounting Policies
The principal Accounting Policies applied in the preparation of these Financial Statements are set out below. These Policies have been consistently applied to all the periods presented, unless otherwise stated.
Basis of Preparation of Financial Statements
The Financial Statements have been prepared in accordance with EU-endorsed International Financial Reporting Standards (IFRSs) and International Financial Reporting Interpretations Committee (IFRIC) interpretations and the parts of the Companies Act 2006 applicable to companies reporting under IFRS. The Financial Statements have also been prepared under the historical cost convention other than financial assets and financial liabilities at fair value through profit or loss.
The Financial Statements are presented in Pound Sterling rounded to the nearest pound.
Alecto Energy Plc, the legal parent, is domiciled and incorporated in the United Kingdom.
The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's Accounting Policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the Financial Statements are disclosed in Note 2.
Segmental Information
Management has determined the operating segments based on reports reviewed by the Board of Directors that are used to make strategic decisions. During the year Group has interests in two geographical segments, the United Kingdom and Australia. The parent Company operates a head office based in the United Kingdom which incurred certain administration and corporate costs.
The Group had no turnover during the year.
|
| Group | |||||
|
| Continuing Operations | Discontinuing Operations | Total | Continuing Operations | Discontinuing Operations | Total |
| Operating Loss | 2009 £ | 2009 £ | 2009 £ | 2008 £ | 2008 £ | 2008 £ |
| Australia | - | 5,910 | 5,910 | - | 107,786 | 107,786 |
| UK | 208,538 | - | 208,538 | 226,017 | 34,313 | 260,330 |
| Total | 208,538 | 5,910 | 214,448 | 226,017 | 142,099 | 368,116 |
|
| Group | |
| Total Liabilities | 2009 £ | 2008 £ |
| UK | 67,330 | 102,465 |
|
| Group | |
| Total Assets | 2009 £ | 2008 £ |
| Australia | 452 | 4,030 |
| UK | 768,712 | 293,842 |
|
| 769,164 | 297,872 |
|
| Group | |||||
|
| Continuing Operations | Discontinuing Operations | Total | Continuing Operations | Discontinuing Operations | Total |
| Depreciation | 2009 £ | 2009 £ | 2009 £ | 2008 £ | 2008 £ | 2008 £ |
| UK | 292 | - | 292 | 1,235 | - | 1,235 |
Called-Up Share Capital
|
| Number | £ |
| Authorised |
|
|
| Ordinary shares of 0.07 p each | 20,000,000,000 | 14,000,000 |
There has been no movement in the authorised share capital during the year
| Issued | Number of shares | Ordinary shares £ |
| Share premium £ | Total £ |
| At 1 January 2008 | 230,207,901 | 161,146 |
| 2,755,170 | 2,916,316 |
| Acquisition of subsidiary | 50,000,000 | 35,000 |
| - | 35,000 |
| At 31 December 2008 | 280,207,901 | 196,146 |
| 2,755,170 | 2,951,316 |
| Issue of new shares - 28 August 2009 | 657,523,869 | 460,266 |
| 258,010 | 718,276 |
| At 31 December 2009 | 937,731,770 | 656,412 |
| 3,013,180 | 3,669,592 |
Loss per Share
The calculation of the total basic loss per share of 0.042 pence (2008: loss of 0.85 pence) is based on the loss attributable to ordinary shareholders of £213,750 (2008: £2,282,168) and on the weighted average number of ordinary shares of 507,188,743 (2008: 270,235,223) in issue during the period. The calculation of the basic loss per share from continuing operations of 0.041 pence (2008: loss of 0.08 pence) is based on the loss attributable to ordinary shareholders from continuing operations of £207,840 (2008: £212,451). The basic loss per share from discontinued operations of 0.001 pence (2008: loss of 0.77 pence) is based on the loss attributable to ordinary shareholders from discontinued operations of £5,910 (2008: £2,069,717).
In accordance with IAS 33, no diluted earnings per share is presented as the effect on the exercise of share options would be to decrease the loss per share.
**ENDS**