Bisichi Regulatory News (BISI)

29 August 2013 BISICHI MINING PLC Interim Results for the period ended 30 June 2013 A STEADY START TO 2013 For the six months ending 30th June 2013 * Group Revenues: £19.097 million (2012: £16.477 million) * EBITDA: £3.184 million (2012: £2.209 million) * EPS (basic): 10.07p (2012: 10.86p) * Net Assets per share: £1.72 (2012: £1.65) Sir Michael Heller, Chairman, states: "In the first half of this year we have continued to benefit from steady coalproduction at Black Wattle and strong demand for our products both of whichhave contributed to a satisfactory profit." END For further information, please call: Andrew Heller/Garrett Casey Bisichi Mining PLC 020 7415 5030 Bisichi Mining PLC Half year review - 30 June 2013 We are pleased to report to shareholders that for the six month period endingon 30 June 2013, Bisichi Mining achieved EBITDA of £3.2million (2012: £2.2million). These results reflect the strong performance of our South Africancoal mining subsidiary, Black Wattle Colliery. The physical demand for the lower quality coal, which we are currently miningat Black Wattle, has remained strong in both our domestic and export marketsduring the first six months of 2013. In particular, the South African coalmarket has continued to benefit from stable market conditions and thesignificantly improved performance of Transnet, the South African railwaynetwork. During this period Black Wattle has accessed successfully a numberof additional opencast pits. The transition into these new areas has ensuredthat our monthly production has been maintained at an average of 145,000 metrictonnes per month. Looking forward, we expect monthly production to remain atthese same levels for the remainder of 2013 although we will be mining intomuch deeper reserves. The Company's UK retail property portfolio, which is managed by London &Associated Properties PLC, continues to perform well despite the ongoingdifficulties in the UK retail property sector. Voids across the portfoliocontinue to remain low. Your directors intend to pay an interim dividend of 1p per share which will bepaid on the 31 January 2014, to shareholders on the register at the close ofbusiness on 3 January 2014. On behalf of the Board we would like to thank all our staff for their hard workduring the first six months of the year. Sir Michael Heller Andrew HellerChairman Managing Director 28 August 2013 Bisichi Mining PLC Consolidated income statement for the six months ended 30 June 2013 Unaudited 6 Unaudited 6 Audited Year months ended 30 months ended ended 31 June 30 June December 2013 2012 2012 Notes £000 £000 £000 Group revenue 1 19,097 16,477 35,962 Operating costs (17,492) (15,268) (33,088) Operating profit on 1,605 1,209 2,874trading activities Decrease in value of investment - - (456)properties (Loss)/gains on held for trading (48) (54) 39investments Operating profit 1 1,557 1,155 2,457 Share of profit /(loss) in 34 47 (137)joint ventures Profitbefore interest and 1,591 1,202 2,320taxation Interest receivable 154 122 281 Interest payable (170) (205) (411) Profitbefore taxation 1 1,575 1,119 2,190 Income tax 2 (404) 95 (650) Profitfor the period 1,171 1,214 1,540 Attributable to: Equity holders of the 1,063 1,147 1,295company Non-controlling 108 67 245interest Profit for the period 1,171 1,214 1,540 Earnings per share - basic 3 10.07p 10.86p 12.27p Earnings per share - 3 9.92p 10.57p 12.08pdiluted Bisichi Mining PLC Consolidated statement of comprehensive income for the six months ended 30 June 2013 Unaudited 6 Unaudited 6 Audited Year months ended months ended ended 31 30 June 30 June December 2013 2012 2012 £000 £000 £000 Profitfor the period 1,171 1,214 1,540 Other comprehensive income: Exchange differences on translation of (367) (143) (391)foreign operations Other comprehensive income for the (367) (143) (391)period, net of tax Total comprehensive income for the 804 1,071 1,149period Attributable to: Equity shareholders 738 1,011 936 Non-controlling interest 66 60 213 Total comprehensive incomefor the 804 1,071 1,149period Bisichi Mining PLC Consolidated Balance Sheet as at 30 June 2013 Unaudited 30 June Unaudited 30 Audited 31 June December 2013 2012 2012 Assets £000 £000 £000 Non-current-assets Value of investment 11,612 12,068 11,612 properties attributable to the group Fair value of head 198 204 202 leases Property 11,810 12,272 11,814 Reserves, plant and 8,764 7,887 8,638 equipment Investments in joint 3,125 1,454 3,061 ventures Loan to joint venture 1,080 1,138 1,117 Other investments 158 148 131 Total non-current assets 24,937 22,899 24,761 Current assets Inventories 1,185 2,085 1,876 Trade and other 7,926 7,010 7,604 receivables Corporation tax 45 47 49 recoverable Held for trading 737 678 787 investments Cash and cash 2,540 1,346 1,802 equivalents 12,433 11,166 12,118 Non-current assets held - 1,820 - for sale Total current assets 12,433 12,986 12,118 Total assets 37,370 35,885 36,879 Liabilities Current liabilities Borrowings (7,840) (6,898) (6,186) Trade and other payables (7,477) (8,395) (9,218) Current tax liabilities (118) (102) (2) Total current (15,435) (15,395) (15,406) liabilities Non-current liabilities Borrowings - - (86) Provision for (960) (1,002) (989) rehabilitation Finance lease (198) (204) (202) liabilities Deferred tax liabilities (2,606) (1,624) (2,437) Total non-current (3,764) (2,830) (3,714) liabilities Total liabilities (19,199) (18,225) (19,120) Net assets 18,171 17,660 17,759 Equity Share capital 1,056 1,056 1,056 Share premium 169 169 169 Translation reserve (1,130) (582) (805) Other reserves 558 507 528 Retained earnings 17,008 16,219 16,367 Total equity 17,661 17,369 17,315 attributable to equity shareholders Non-controlling interest 510 291 444 Total equity 18,171 17,660 17,759 Bisichi Mining PLC Consolidated Cash Flow Statement For the six months ended 30 June 2013 Unaudited Unaudited Audited 31 30 June 30 June December 2013 2012 2012 £000 £000 £000 Cash flows from operating activities Operating profit 1,557 1,155 2,457 Depreciation 1,593 1,007 2,253 Unrealised gain/(loss) on investments held 48 54 (39)for trading Unrealised gain on investment properties - - 456 Share based payment expense 30 7 27 Realised share of profit in joint venture 34 33 64 Increase in working capital (1,489) (188) (1,478) Net interest paid (16) (83) (130) Income tax (paid)/received - (60) 83 Cash flow from operating activities 1,757 1,925 3,693 Cash flows from investing activities (2,484) (1,153) (3,665) Cash flows from financing activities (371) (2,264) (550) Net decreasein cash and cash equivalents (1,098) (1,492) (522) Cash and cash equivalents at 1 January 718 1,114 1,114 Exchange adjustment 93 42 126 Cash and cash equivalents at end of period (287) (336) 718 Cash and cash equivalents For the purposes of the cash flow statement,cash and cash equivalents comprise thefollowing balance sheet amounts: Cash and cash equivalents 2,540 1,346 1,802 Bank overdrafts (2,827) (1,682) (1,084) Cash and cash equivalents at end of period (287) (336) 718 Bisichi Mining PLC Consolidated statement of changes in shareholders' equityfor the six months ended 30 June 2013 Non- Share Share Translation Other Retained controlling Total capital premium reserve reserves earnings Total Interest Equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance as at 1 1,056 169 (446) 500 15,494 16,773 231 17,004January 2012 Profit for the - - - - 1,147 1,147 67 1,214period Exchange - - (136) - - (136) (7) (143)adjustment Total - - (136) - 1,147 1,011 60 1,071comprehensiveincome for theperiod Dividend - - - - (422) (422) - (422) Equity share - - - 7 - 7 - 7options Balance at 30 June 1,056 169 (582) 507 16,219 17,369 291 17,6602012 Balance as at 1 1,056 169 (446) 500 15,494 16,773 231 17,004January 2012 Revaluation of - - - - (456) (456) - (456)investmentproperties Other income - - - - 1,751 (1,751) 245 1,996statementmovements Profit for the - - - - 1,295 1,295 245 1,540year Exchange - - (359) - - (359) (32) (391)adjustment Total - - (359) - 1,295 936 213 1,149comprehensiveincome for theyear Dividend - - - - (422) (422) - (422) Equity share - - - 28 - 28 - 28options Balance at 31 1,056 169 (805) 528 16,367 17,315 444 17,759December 2012 Profit for the - - - - 1,063 1,063 108 1,171year Exchange - - (325) - - (325) (42) (367)adjustment Total - - (325) - 1,063 738 66 804comprehensiveincome for theperiod Dividend - - - - (422) (422) - (422) Equity share - - - 30 - 30 - 30options Balance at 30 June 1,056 169 (1,130) 558 17,008 17,661 510 18,1712013 ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS: The results for the six months ended 30 June 2013 have been prepared inaccordance with International Financial Reporting Standards (IFRS). Theprincipal accounting policies applied are the same as those set out in theFinancial Statements for the year ended 31 December 2012. 1. Segmental analysis For management purposes, the Group is organised into two operating Divisions,Mining and Property. These Divisions are the primary basis on which the Groupreports its segment information. This is consistent with the way the Group ismanaged and with the format of the Group's internal financial reporting. Unaudited Unaudited Audited 31 30 June 30 June December 2013 2012 2012 Revenue Mining 18,597 15,950 34,952 Property 484 489 957 Other 16 38 53 19,097 16,477 35,962 Operating profit Mining 1,319 834 2,162 Property 270 339 210 Other (32) (18) 85 1,557 1,155 2,457 Share of profit/(loss) in 34 47 (137)joint ventures Interest receivable 154 122 281 Interest payable (170) (205) (411) Profitbefore taxation 1,575 1,119 2,190 2. Taxation Based on the results for the period: Corporation tax at 23.5% (2012: 114 102 726.5%) Prior year adjustment - UK (1) - - 113 102 7 Deferred taxation 291 (197) 643 404 (95) 650 3. Earnings per share Both the basic and diluted earnings per share calculations are based on aprofit of £1,063,000 (2012: £1,147,000). The basic earnings per share has beencalculated on 10,556,839 (2012: 10,556,839) ordinary shares being in issueduring the year. The diluted earnings per share has been calculated on thenumber of shares in issue of 10,556,839 (2012: 10,556,839) plus the dilutivepotential ordinary shares arising from share options of 155,712 (2012: 296,255)totalling 10,712,551 (2012: 10,853,094). 4. Properties Properties are included at valuation as at 31 December 2012 plus additions inthe period ended 30 June 2013. 5. Related Parties The related parties and the nature of costs recharged are as disclosed in thegroup's annual financial statements for the year ended 31 December 2012. Thegroup paid management fees of £68,750 (30 June 2012: £103,125, 31 December2012: £172,000) to London & Associated Properties PLC, an associated company. 6. Financial information The above financial information does not constitute statutory accounts withinthe meaning of section 434 of the Companies Act 2006. The figures for the yearended 31st December 2012 are based upon the latest statutory accounts, whichhave been delivered to the Registrar of Companies; the report of the auditorson those accounts was unqualified and did not contain a statement under Section498(2) or (3) of the Companies Act 2006. As required by the Disclosure and Transparency Rules of the UK's FinancialServices Authority, the interim financial statements have been prepared inaccordance with the International Financial Reporting Standards (IFRS) and inaccordance with both IAS 34 'Interim Financial Reporting' as adopted by theEuropean Union and the disclosure requirements of the Listing Rules. The half year results have not been audited or subject to review by thecompany's auditors. The annual financial statements of Bisichi Mining PLC are prepared inaccordance with IFRS as adopted by European Union. The same accounting policiesare used for the six months ended 30 June 2013 as were used for the year ended31 December 2012. The assessment of new standards, amendments and interpretations issued but noteffective, are not anticipated to have a material impact on the financialstatements. The largest area of estimation and uncertainty in the interim financialstatements is in respect of the directors' judgements and estimates surroundingthe life of mine and its reserves as well as to a lesser extent the valuationof investment properties (which are not re-valued at the half year end). Otherareas of estimation and uncertainty are referred to in the group's annualfinancial statements. There is no material seasonal impact on the group's financial performance. Taxes on income in the interim periods are accrued using tax rates expected tobe applicable to total annual earnings. The interim financial statements have been prepared on the going concern basisas the Directors are satisfied the group has adequate resources to continue inoperational existence for the foreseeable future. 7. Dividend The interim dividend in respect of 2012, totalling £105,000 was paid on the 1stof February 2013. The final dividend in respect of 2012, totalling £317,000 wasapproved by the shareholders at the Annual General Meeting held on the 5th June2013 and was paid on the 2nd August 2013. The final dividend in respect of 2012is included as a liability in these interim financial statements. A proposed interim dividend for the year ended 31 December 2013 totalling £105,000 was approved by the Board of Directors on 28th August 2013 and has notbeen included as a liability in these Interim Financial Statements. 8. Principal risks and uncertainties The Group has an established risk management process which works within thecorporate governance framework as set out in the 2012 Annual Report andAccounts. Risks and uncertainties identified by the Group are set out on page11 of the 2012 Annual Report & Accounts and are reviewed on an ongoing basis.There have been no significant changes in the first half of 2013 to theprinciple risks and uncertainties as set out in the 2012 Annual Report &Accounts. The principal risks as stated in the accounts reflect the challengingenvironment in which the business operates and are considered under thefollowing broad headings: Mining: - Coal price - Coal washing process - Health & safety - Coal qualities - Currency movements - Regulatory requirements & permissions - Transport - Power supply - Flooding - Environment - Labour Property: - Property valuation - Occupancy 9. Board approval These interim results were approved by the Board of Bisichi Mining on 28thAugust 2013. DIRECTORS RESPONSIBILITY STATEMENT AND REPORT ON PRINCIPAL RISKS AND UNCERTAINITIES Responsibility Statement We confirm to the best of our knowledge: (a) the condensed set of financial statements have been prepared in accordancewith IAS 34 Interim Financial Reporting as adopted by the EU; (b) the interim management report includes a fair review of the informationrequired by: (1) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication ofimportant events that have occurred during the first six months of thefinancial year and their impact on the condensed set of financial statements;and a description of the principal risks and uncertainties for the remainingsix months of the year; and (2) DTR 4.2.8R of the Disclosure and Transparency Rules, being related partytransactions that have taken place in the first six months of the currentfinancial year and that have materially affected the financial position orperformance of the entity during the period; and any changes in the relatedparty transactions described in the last annual report that could do so. Sir Michael Heller Andrew HellerChairman Managing Director 28 August 2013 DIRECTORS AND ADVISERS DirectorsSir Michael A Heller MA, FCA (Chairman)Andrew R Heller MA, ACA (Managing Director)Robert Grobler PR Cert Eng (Mining Director)Garrett Casey CA (SA) (Finance Director)C A Joll MA (Non-executive)John A Sibbald MA (Non-executive) Secretary & Registered OfficeHeather A Curtis ACIS24 Bruton PlaceLondon W1J 6NE Black Wattle Colliery - DirectorsRobert Corry (Chairman)Andrew Heller (Managing Director)Garrett Casey (Finance Director)Robert Grobler (Mining Director)Ethan Dube (Commercial Director) General mine manager Luis Pinel Registrars and transfer officeCapita RegistrarsThe Registry34 Beckenham RoadBeckenhamKent BR3 4TU Telephone 0871 664 0300(Calls cost 10p per minute + network extras)or +44 208 639 3399 for overseas callersWebsite: www.capitaregistrars.comE-mail: ssd@capitaregistrars.com Company registration number 112155 (Incorporated in England and Wales) Web site www.bisichi.co.ukE-mail admin@bisichi.co.uk