ELX.L Regulatory News (ELX)

31 Mar 2008 12:45

El Oro And Exploration Co Plc31 March 2008 El Oro and Exploration Company plc 31 March 2008 Interim Results El Oro and Exploration Company plc (the "Company") announces its interim resultsfor the six months ended 31 December 2007. The interim results for the six months ended 31 December 2007 will be posted toshareholders and are available on the Company's website www.eloro.co.uk.Extracts from these financial statements are set out below. For further information, please contact: C Robin Woodbine Parish: ChairmanSteven McKeane: Company SecretaryEl Oro and Exploration Company plcTel: 020 7581 2782 Philip Secrett: Nominated AdviserGrant Thornton Corporate FinanceTel: 020 7383 5100 EL ORO AND EXPLORATION COMPANY plc CHAIRMAN'S STATEMENT Results for the period ended 31 December 2007 The Group profit before tax for the six months to 31 December 2007 was£4,810,071 (six months to 31 December 2006: £3,049,025). Group net assets at 31December 2007 under IFRS, taking all assets at fair value were £81,588,816 equalto 757p per stock unit, (31 December 2006: £77,167,354 equal to 712p per stockunit). 'When them as wallers in sin thinks they's getting by with it, she said, that'swhen He strikes em in His holy wrath. He jest bides His time'. "Cormac McCarthy- The Orchard Keeper". The results for the half-year have since been overshadowed, by continuingturmoil in the financial markets; the collapse of funds such as Peloton, Focusand Carlyle Capital amongst others, and more significantly the rescue of BearStearns, underline the gravity of storms swirling through Western economies. Ananalysis of the indebtedness of some Baltic and East European nations, alongwith Iceland and Turkey, can only exacerbate this sense of foreboding. Sadly, in no wise is this the story of events unforetold: the consistentcondemnation of derivatives from the hallowed halls of Omaha and Pasadena,warnings from the Governor of the Bank of England and the unremittingCassandra-like criticism of the US credit boom by the late Dr. Richebacheramongst others, were all happily ignored in the Gadarene rush to amass ever moreGargantuan empires based, as it now appears, on foundations of sand. The monstrous maelstrom mowing down the mighty and the minnows has made theproud and powerful into mendicant monks seeking salvage from the Federal Reserveor the Bank of England; meanwhile their erstwhile leaders set off into the sunclutching their Brobdingnagian booty, regardless of seeming success or apparentfailure. We have not been immune to declines in the price of property assets as themarket anticipates a falling residential and commercial property market. With awearyingly familiar sense of inevitability, where market conditions ofthemselves are challenging, Government action has or will exacerbate thesituation: in the case of property by imposing rates on vacant property, alongwith the ridiculous HIPS on residential property; in the case of our BreweryEstate investments, by the malicious assault on smoking within the confines ofthe pubs, followed hard on its heels by the determination to banish the sale ofcigarette vending machines; the decline in profits is beginning to becomeapparent, albeit in the dim light of dawn. This attack on the pub sector hasbeen compounded by raising the tax on alcohol over and above inflation.Historically, well managed and monitored pubs have presented a secure andagreeable venue for moderate drinking and convivial encounter; wholly atvariance with the effects of the Government's 24-hour drinking and changes tothe licensing laws; to which a Parliamentary committee has attributed the spreadof lager louts in city centres, and other unattractive phenomena. As if this madness was not enough, the eponymous Harman now proposes to banrepartee and terms of endearment from bars and stores, to give those litigiousmembers of society another chance to sue for supposed or imagined slights. Whata desperate state of affairs, to see our vocabulary monitored by the legalprofession, under the guise of preventing 'sex discrimination' and ourhostelries emasculated and age-old beverages consigned to history by ministersand civil-servants in their plush glass palaces drinking lattes and frattes,whilst imposing ever-more onerous taxes and restrictions on the traditionaltipples and tittle-tattle of the British people. This urge to interfere and 'act', rather than 'sitting pretty, doing nothing' isonly too apparent, now that the Government has seen the light and embraced thebirth of a new Nuclear Age: sadly, it sold Westinghouse, the leader in thatfield, to Toshiba, in the same futile fashion it flicked away Qinetiq toCarlyle, and our historic Gold reserves: all first-class National assets. The British Government has paid obscene obeisance to the European Union,ignoring every promise and poll to align us with that unholy herd, and nowassaults the Old Commonwealth and its rights of entry, despite the longeviousand formidable ties of blood, trade, tradition and civilisation shared over somany years, with its huge contribution to trade and economy for all parties.Such a perverse policy reaches its nadir in the refusal of residence rights tothe Gurkha soldiers who have fought so valiantly to defend us; whilst PostOffices and Village Schools fall to the same Statist or Stalinist philosophy;hill farms and the landscape are discarded, and non-doms are sacrificed for amess of pottage; playing-fields, including those of Jersey, are pillaged, andeven mince-meat, a staple of the beef industry, is confronted with a mad new EUdirective; it is remarkable indeed, given the vast reduction in public swimmingpools, despite an obligation for their provision, and almost completedestruction of diving-boards, that England can suddenly discover a EuropeanDiving Champion. The attack on 'Risk' is now a central plank of national 'elf and safety' policy,producing generations less and less able to cope with the every day and moresubstantial crises of life. It also engenders a vast infrastructure which, asthe FSA has proved, is horrendously expensive and ultimately incapable ofdealing with situations once resolved discreetly, or managed with a raisedeyebrow in the confines of the old establishment, but mostly driven by commonsense and discernment. The necessity and obligation facing our economy to cut both taxes and spendingsignificantly has been denied by all parties, particularly the Conservatives intheir Cyclops-post-Odysseus blindness driven by the inchoate urging of theirspineless strategists. The symbolism of Banana Republic's arrival in Britain isperhaps apposite. The deflation of domestic residences whose rise had created the credit boom bothin Britain and the United States is now making its sombre black marks in thehistory books: quite possibly further wreckage may yet descend from the ether asthe deflated balloon subsides across the Western world and beyond. This hasprofound and negative consequences for consumer spending which is no longerunderpinned by an annual increase in the value of an underlying asset. For thefirst time since 1945 the share of equity held by the individual in homes in theUnited States has fallen below 50%. Proverbs 11 v 13 state; 'Happy is the man that findeth wisdom and the man thatgetteth understanding. For the merchandise of it is better than the merchandiseof silver and the gain thereof than fine gold.' Wisdom and vision have been sadly lacking amongst our political and businessleaders and the day of Reckoning is upon them. Given this absence, our vision isfor the continued accumulation of the alternative, both Silver and Gold and theshares thereof. We congratulate Colin Loosemore of Archipelago in finallysecuring the remit to develop the exciting mine at Toka Tindung. We have visitedother promising projects in Chile and Argentina whilst remaining wary ofpolitical interference in various parts of the world. The inability of SouthAfrica to provide adequate power for its burgeoning population and industry hasenhanced metal prices for both Gold and Platinum. We are also increasing ourexposure to the production of food, fertilizer and agricultural products and areheartened by the continued rise in MP Evans, an outstanding performer in theportfolio. In conclusion the outlook for retail and housing remains distinctly gloomy,whilst the continuing rise in inter-bank rates bodes ill for the entirefinancial sector. We would be surprised albeit happy at any pick up in propertyprices. We are however well placed in our traditional areas of strength particularlyBasic Resources, Energy and Precious Metals. We would expect the latterespecially to thrive in the current climate, and will attempt to restrain ourexcitement. My thanks are due to my peripatetic Directors, our numerous advisers around theworld, and the increasingly formidable team in Cheval Place led by SteveMcKeane, Abbie playing in Midfield, and Vicky solid in defence: the Rooney,Ronaldo, Vidic triumvirate. Onwards to Victory. Robin Woodbine Parish31 March 2008 EL ORO AND EXPLORATION COMPANY plc CONSOLIDATED INCOME STATEMENT (Unaudited)for the six months ended 31 December six months to six months to 31 December 31 December 2007 2006 £ £Revenue 1,326,876 6,978,291Movement in fair value 8,661,186 (199,439)Impairment loss on available for saleinvestments (3,140,729) (2,174,506)Expenses (922,373) (909,295) ------------ ------------Profit before finance costs and taxation 5,924,960 3,695,051Finance costs:Banks 1,114,889 646,026 ------------ ------------ 1,114,889 646,026 ------------ ------------Profit before taxation 4,810,071 3,049,025Taxation 1,511,254 870,816 ------------ ------------Profit for the period 3,298,817 2,178,209 ------------ ------------Earnings per stock unit (basic anddiluted) 30.44p 20.10p ------------ ------------ CONSOLIDATED STATEMENT OF CHANGES IN INCOME AND EXPENSE (Unaudited)for the six months ended 31 December six months to six months to 31 December 31 December 2007 2006 £ £Profit for the period 3,298,817 2,178,209Revaluation of available for sale (AFS)investments during the period (1,182,555) 9,835,193Deferred tax on revaluation of AFSinvestments during the period 441,047 (2,950,558) ------------ -----------Total recognised income and expense forthe period 2,557,309 9,062,844 ------------ ----------- CONSOLIDATED BALANCE SHEET (Unaudited)As at 31 December 31 December 31 December 2007 2006Assets £ £Non-current assetsProperty, plant and equipment 716,127 734,895Investment properties 504,504 444,933 ----------- ----------- 1,220,631 1,179,828 ----------- -----------Current assetsTrade and other receivables 128,025 191,408Financial assets:Available for sale investments 126,012,539 116,492,915Financial assets - fair valued through the income statement:Commodities 2,892,093 2,146,315Cash and cash equivalents 1,505,262 236,565 ----------- ----------- 130,537,919 119,067,203 ----------- -----------LiabilitiesCurrent liabilitiesFinancial liabilities:Borrowings 16,285,214 23,564,269Trade and other payables 915,462 422,470Current tax liabilities 1,276,394 1,211,438 ----------- ----------- 18,477,070 25,198,177 ----------- -----------Net current assets 112,060,849 93,869,026 ----------- -----------Non-current liabilitiesBorrowings 15,000,000 -Deferred taxation 16,692,664 17,881,500 ----------- ----------- 31,692,664 17,881,500 ----------- -----------Net assets 81,588,816 77,167,354 ----------- -----------Stockholders' equityOrdinary stock units 538,825 539,210Share premium 6,017 6,017Capital redemption reserve 347,402 347,018Merger reserve 3,564 3,564Other reserves 43,682,572 42,653,699Retained earnings reserve 37,010,436 33,617,846 ----------- -----------Total equity 81,588,816 77,167,354 ----------- ----------- CONSOLIDATED CASH FLOW STATEMENT (Unaudited)for the six months ended 31 December six months to six months to 31 December 31 December 2007 2006 £ £ Cash flow from operating activities 4,868,131 569,923Income taxes paid (1,219,555) (503,787) ----------- ----------- 3,648,576 66,136 ----------- -----------Cash flow from investing activities - (271,780) ----------- -----------Cash flow from financing activities (2,529,519) (1,922,508) ----------- -----------Net increase/(decrease) in cash and cashequivalents 1,119,057 (2,128,152) ----------- -----------Cash and cash equivalents at 30 June (30,891,807) (20,648,219)Effect of foreign exchange rate changes 301,747 (259,132) ----------- -----------Cash and cash equivalents at 31 December (29,471,003) (23,035,503) ----------- ----------- EL ORO AND EXPLORATION COMPANY plc NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL INFORMATION The Unaudited Consolidated Interim Financial Information ("FinancialInformation") for the six months ended 31 December 2007 does not constitutestatutory accounts within the meaning of section 240 of the Companies Act 1985.The Financial Information has been prepared using accounting policies andprinciples consistent with those applied in the preparation of the auditedaccounts of El Oro and Exploration Company plc for the year ended 30 June 2007.No changes were made to those policies in the preparation of this FinancialInformation. The Directors have elected not to adopt IFRS 8 "Operating Segments"early. There was an interim dividend of 13.2 pence paid on 25 October 2007 in relationto the year ended 30 June 2007. The Financial Information was approved by a Committee of the Board of Directorson 31 March 2007. The Financial Information has not been subject to review or audit by the Group'sAuditor, PriceWaterhouseCoopers LLP. REVENUE six months to six months to(Unaudited) 31 December 31 December 2007 2006for the six months ended 31 December £ £ Dividends from listed available for saleinvestments 1,043,902 1,006,036Dividends from unlisted available forsale investments 244,751 146,775Net gains/(losses) on fair value throughthe income statement investments 326,355 (80,828)Net profit on available for saleinvestments realised 7,024,971 5,993,499Currency translation gains/(losses) 1,309,860 (110,619)Other income 38,223 23,428 ----------- ----------- 9,988,062 6,978,291 ----------- ----------- EL ORO AND EXPLORATION COMPANY plc NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL INFORMATION RESERVES Share Capital Merger Other Retained premium redemption earnings At 1 July 2007 6,017 347,402 3,564 49,482,060 35,134,116Movement inperiod invalues of AFSassets (1,182,555)Tax providedon above 441,047Fair value ofAFSinvestmentsrecycled toincomestatement (7,024,971)Tax relief onabove 1,966,991Profit for theperiod 3,298,818Dividends paid (1,422,498) -------- --------- ------ --------- ---------At 31 December2007 6,017 347,402 3,564 43,682,572 37,010,436 -------- --------- ------ --------- --------- RESERVES Share Capital Merger Other Retained premium redemption earnings At 1 July 2006 6,017 344,442 3,564 38,069,136 33,005,519Purchase andcancellationof own shares 2,576 (271,780)Movement inperiod invalues of AFSassets 9,835,193Tax providedon above (2,950,558)Fair value ofAFSinvestmentsrecycled toincomestatement (3,285,817)Tax relief onabove 985,745Profit for theperiod 2,178,209Dividends paid (1,294,102) -------- --------- ------ --------- ---------At 31 December2006 6,017 347,018 3,564 42,653,699 33,617,846 -------- --------- ------ --------- --------- This information is provided by RNS The company news service from the London Stock Exchange