Last checked at 12 Nov 2014 16:03
12 November 2014
GCM Resources plc
("GCM" or the "Company")
(AIM:GCM)
Preliminary Results for the year ended 30 June 2014
GCM Resources plc (AIM:GCM), a resource exploration and development company, is pleased to report its preliminary results for the year ended 30 June 2014.
Highlights:
· Bangladesh has moved strongly towards coal as the primary source of power in the country, with plans for the development of coal-fired power plants generating 8,536 MW by 2021.
· GCM continued its advocacy efforts with the Government of Bangladesh in communicating how the Phulbari Coal Project can promote national and regional benefits, as well as supporting the Government's plans to restructure the country's energy supply.
· As a result of substantially reducing spend, GCM's loss for the year ended 30 June 2014 was £1.3 million (2013: loss of £3.2 million) and capitalised Project-related expenditure during the year was £0.8 million (2013: £1.9 million).
The Annual Report and Accounts for the year ended 30 June 2014 will be posted on the Company's website today (www.gcmplc.com) and will shortly be mailed to shareholders. Copies will also be available on request from the Company.
In the Chairman's Statement Michael Tang, Executive Chairman stated: "During the last twelve months, Bangladesh has gone through a period of considerable change. Throughout 2013 the country was dominated by the political activity leading up to the national election, which was held on 4 January 2014. During this period of uncertainty the Company undertook a substantial cost-reduction exercise, which resulted in 60% less cash spend than the previous financial year followed by a £2.3 million share placement. The combination of these measures ensured that GCM could continue throughout the 2014 financial year and into 2015.
"The first half of 2014 saw a renewal in Government activity following its re-election and renewed term of office. It has been very encouraging to see the positive steps that have been taken, including the Government's commitment to an increase in power production to 16,000MW by 2016 and 24,000MW by 2021, with coal being the main source of energy. The Company has continued its advocacy with Government ministers and officials in communicating how the Phulbari Coal Project (the "Project") can complement the objectives of the Government and promoting the national and regional benefits that the Project would deliver.
"As mentioned above, we have restructured operations from a cost perspective and I am pleased to advise that the loss for the year ended 30 June 2014 was £1.3 million, compared to £3.2 million in the previous financial year. Capitalised Project-related expenditure during the year was £0.8 million compared to £1.9 million in the last financial year. Whilst reducing costs has been a key focus for the Company, we have also ensured that the necessary expertise and resources are in place to continue pursuing Project approval.
"Going forward, the Company will continue to advocate development of the Project with the Government of Bangladesh and the benefits that the Project can bring to the country. Recognising the importance of partnering with local people, we will continue to build and maintain a constructive relationship with the project affected communities. GCM will also continue to look for other investment opportunities to enhance shareholder value.
"I would like to thank the Board, staff and advisers for all their hard work over the last year."
The Income Statement, Statement of Comprehensive Income, Statement of Changes in Equity, Balance Sheet and Cash Flow are presented on the following pages.
Consolidated Income Statement
For year ended 30 June
2014 | 2013 | ||
£000 | £000 | ||
Operating expenses | |||
Exploration and evaluation costs | (109) | (405) | |
Share based payments | (570) | (186) | |
Administrative expenses | (633) | (1,242) | |
Operating (loss) | (1,312) | (1,833) | |
Exceptional items | - | (864) | |
Finance revenue | 10 | - | |
(Loss) before tax | (1,302) | (2,697) | |
Taxation | - | (471) | |
(Loss) for the year | (1,302) | (3,168) | |
(Loss) per share | |||
Basic (pence per share) | (2.2p) | (6.2p) | |
Diluted (pence per share) | (2.2p) | (6.2p) |
Consolidated Statement of Comprehensive Income
For year ended 30 June
2014 | 2013 | ||
£000 | £000 | ||
Loss for the year | (1,302) | (3,168) | |
Other comprehensive income | |||
Items that may be reclassified to profit or loss: | |||
Net loss on revaluation of available-for-sale financial assets | - | (2,825) | |
Transfer to income statement: sale of available-for-sale financial assets | - | 662 | |
Transfer to income statement: impairment of available-for-sale financial assets | - | 202 | |
Income tax relating to components of other comprehensive income | - | 471 | |
Total comprehensive loss | (1,302) | (4,658) | |
Consolidated Statement of Changes in Equity
For year ended 30 June
| Share capital | Share premium account | Share based payments not settled | Net movement in available-for-sale investments | Accumulated losses | Total |
£000 | £000 | £000 | £000 | £000 | £000 | |
Balance at 1 July 2012 | 5,110 | 44,246 | 1,316 | 1,490 | (10,200) | 41,962 |
Total comprehensive loss | - | - | - | (1,490) | (3,168) | (4,658) |
Shares issued during the year | 5 | 12 | - | - | - | 17 |
Share based payments | - | - | (728) | - | 280 | (448) |
Balance at 30 June 2013 | 5,115 | 44,258 | 588 | - | (13,088) | 36,873 |
Total comprehensive loss | - | - | - | - | (1,302) | (1,302) |
Shares issued during the year | 1,171 | 1,148 | - | - | - | 2,319 |
Share issue transaction costs | - | (120) | - | - | - | (120) |
Share based payments | - | - | (3) | - | 570 | 567 |
Balance at 30 June 2014 | 6,286 | 45,286 | 585 | - | (13,820) | 38,337 |
Consolidated Balance Sheet
As at 30 June
2014 | 2013 | ||
£000 | £000 | ||
Current assets | |||
Cash and cash equivalents | 1,332 | 707 | |
Receivables | 64 | 178 | |
Total current assets | 1,396 | 885 | |
Non-current assets | |||
Property, plant and equipment | 35 | 47 | |
Intangible assets | 37,153 | 36,393 | |
Total non-current assets | 37,188 | 36,440 | |
Total assets | 38,584 | 37,325 | |
Current liabilities | |||
Payables | (247) | (452) | |
Total current liabilities | (247) | (452) | |
Total liabilities | (247) | (452) | |
Net assets | 38,337 | 36,873 | |
Equity | |||
Share capital | 6,286 | 5,115 | |
Share premium account | 45,286 | 44,258 | |
Other reserves | 585 | 588 | |
Accumulated losses | (13,820) | (13,088) | |
Total equity | 38,337 | 36,873 |
Consolidated Cash Flow Statement
For year ended 30 June
2014 | 2013 | ||
£000 | £000 | ||
Cash flows from/(used in) operating activities | |||
(Loss) before tax | (1,302) | (2,697) | |
Adjusted for: | |||
Exceptional items | - | 864 | |
Finance revenue | (10) | - | |
Share based payments | 570 | 186 | |
Other non-cash expenses | 5 | 4 | |
(737) | (1,643) | ||
Movements in working capital: | |||
Decrease in operating receivables | 114 | 125 | |
(Decrease) in operating payables | (111) | (46) | |
Cash used in operations | (734) | (1,564) | |
Interest received | 10 | - | |
Net cash used in operating activities | (724) | (1,564) | |
Cash flows from/(used in) investing activities | |||
Payments for property, plant and equipment | (1) | - | |
Payments for intangible assets | (849) | (2,502) | |
Proceeds from sale of investments | - | 4,403 | |
Net cash generated from/(used in) investing activities | (850) | 1,901 | |
Cash flows from/(used in) financing activities | |||
Issue of ordinary share capital | 2,319 | 17 | |
Costs on issue of ordinary share capital | (120) | - | |
Net cash from financing activities | 2,199 | 17 | |
Total increase in cash and cash equivalents | 625 | 354 | |
Cash and cash equivalents at the start of the year | 707 | 353 | |
Cash and cash equivalents at the end of the year | 1,332 | 707 | |
The audited financial information for the years ended 30 June 2014 and 30 June 2013 contained in this document do not constitute statutory accounts as defined in the Companies Act 2006. The comparative financial information is based on the statutory accounts for the financial year ended 30 June 2013. Those accounts, upon which the auditors issued an unqualified opinion with an emphasis of matter paragraph, have been delivered to the Registrar of Companies. The financial information for the year ended 30 June 2014 has been extracted from the financial statements of GCM Resources plc which will be delivered to the Registrar of Companies in due course. The auditors have issued an unqualified opinion with emphasis of matter paragraphs on the Group's statutory financial statements for the year ended 30 June 2014. The preliminary announcement was approved by the Board of Directors on 12 November 2014.
For further information:
GCM Resources plc James Hobson CFO & Company Secretary +44 (0) 20 7290 1630
| Bell Pottinger Public Relations Lorna Cobbett / Joanna Boon +44 (0) 20 7861 3232
|
ZAI Corporate Finance Ltd Nominated Adviser and Broker Tom Price +44 (0) 20 7060 2220 |
GCM Resources plc | |
Tel: +44 (0) 20 7290 1630 | |
info@gcmplc.com; www.gcmplc.com |