Last checked at 29 Sep 2010 07:00
GCM Resources plc
(AIM:GCM)
29th September 2010
Preliminary Results for the twelve months ended 30 June 2010
·; GCM Resources plc (GCM) remains fully committed to the Phulbari Coal Project (the Project) in Bangladesh. We continue to believe that it can provide the fastest, lowest risk and most reliable means of delivering the commercial energy required to bring a step-change in electricity availability for the people of Bangladesh.
·; The energy crisis in Bangladesh continues to worsen, highlighting the need for a significant increase in electricity generating capacity. Load shedding has been averaging 8 to 12 hours per day and power shortages continue to adversely affect industry, business and daily life. The existing generating capacity is being augmented by temporary rental diesel and heavy fuel oil powered generators although progress towards a targeted rental capacity of 1,300 MW is very slow.
·; To deliver longer term solutions, the energy budget has been increased by over 40% and the Government has prioritised the development of new power plants. In December 2009 and January 2010 the Government hosted road-shows in London, New York and Singapore, and another in Dhaka in May 2010 to attract external investment into the Bangladesh energy sector. In February 2010 a joint venture was signed with an Indian state owned power company to carry out a feasibility study for a 1,300 MW coal fired power station at Khulna, in southern Bangladesh.
·; GCM's discussions with the Government have moved onto the detail of Project implementation and continue to progress. GCM remains ready to move the Project forward when it receives approval for its Scheme of Development.
·; As at 30 June 2010 GCM held cash of £0.9 million and listed equity investments of £21.8 million (June 2009: cash £1.4 million, listed investments £20.2 million). On 27 August 2010 GCM received a dividend from Polo Resources Limited of £2.2 million.
·; The Group made a loss of £3.2 million after tax for the year to 30 June 2010 (30 June 2009: loss of £5.7 million). Evaluation expenditure relating to the Phulbari Coal Project was £3.2 million for the year to 30 June 2010 (30 June 2009: £2.9 million).
·; GCM disposed of its holding in Regent Pacific Group Limited and 1.9 million shares in Coal of Africa Limited for combined profit of £2.3 million. An impairment charge of £4.7 million has been incurred in relation to the investment in PeoplesTel.
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
|
|
| 2010 | 2009 |
|
|
| £000 | £000 |
| Operating expenses |
|
|
|
| Exploration and evaluation costs |
| 463 | 353 |
| Administrative expenses |
| 1,435 | 1,578 |
| Operating (loss) |
| (1,898) | (1,931) |
| Exceptional items |
| (2,399) | (5,563) |
| Finance revenue |
| 29 | 188 |
| (Loss) before tax |
| (4,268) | (7,306) |
| Taxation |
| 1,054 | 1,614 |
| (Loss) for the year |
| (3,214) | (5,692) |
|
|
|
|
|
| (Loss) per share |
|
|
|
| Basic and diluted (pence per share) |
| (6.3)p | (11.2)p |
Consolidated Statement of Comprehensive Income For Year Ended 30 June
|
|
| 2010 | 2009 |
|
|
| £000 | £000 |
| (Loss) for the year |
| (3,214) | (5,692) |
| Other comprehensive income |
|
|
|
| Net gain/(loss) on revaluation of available-for-sale financial assets |
| 5,256 | (26,958) |
| Transfer to income statement: sale of available-for-sale financial assets |
| (2,294) | - |
| Transfer to income statement: impairment of available-for-sale financial assets |
| - | 4,430 |
| Income tax relating to components of other comprehensive income |
| (829) | 6,308 |
| Total comprehensive income |
| (1,081) | (21,912) |
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 2008 | 5,101 | 44,164 | 843 | 24,305 | (1,037) | 73,376 |
| Loss for the year | - | - | - | - | (5,692) | (5,692) |
| Other comprehensive income | - | - | - | (16,220) | - | (16,220) |
| Total comprehensive income | - | - | - | (16,220) | (5,692) | (21,912) |
| Share based payments | - | - | 72 | - | 5 | 77 |
| Balance at 30 June 2009 | 5,101 | 44,164 | 915 | 8,085 | (6,724) | 51,541 |
| Loss for the year | - | - | - | - | (3,214) | (3,214) |
| Other comprehensive income | - | - | - | 2,133 | - | 2,133 |
| Total comprehensive income | - | - | - | 2,133 | (3,214) | (1,081) |
| Shares issued during the year | 2 | 20 | - | - | - | 22 |
| Share based payments | - | - | 429 | - | 8 | 437 |
| Balance at 30 June 2010 | 5,103 | 44,184 | 1,344 | 10,218 | (9,930) | 50,919 |
Consolidated Balance Sheet As At 30 June
|
|
| 2010 | 2009 |
|
|
| £000 | £000 |
| Current assets |
|
|
|
| Cash and cash equivalents |
| 891 | 1,355 |
| Receivables |
| 409 | 542 |
| Total current assets |
| 1,300 | 1,897 |
| Non-current assets |
|
|
|
| Property, plant and equipment |
| 116 | 173 |
| Intangible assets |
| 29,765 | 26,571 |
| Financial assets |
| 21,790 | 24,890 |
| Total non-current assets |
| 51,671 | 51,634 |
| Total assets |
| 52,971 | 53,531 |
| Current liabilities |
|
|
|
| Payables |
| 644 | 358 |
| Total current liabilities |
| 644 | 358 |
| Non-current liabilities |
|
|
|
| Deferred tax liabilities |
| 1,408 | 1,632 |
| Total non-current liabilities |
| 1,408 | 1,632 |
| Total liabilities |
| 2,052 | 1,990 |
| Net assets |
| 50,919 | 51,541 |
| Equity |
|
|
|
| Share capital |
| 5,103 | 5,101 |
| Share premium account |
| 44,184 | 44,164 |
| Other reserves |
| 11,562 | 9,000 |
| Accumulated losses |
| (9,930) | (6,724) |
| Total equity |
| 50,919 | 51,541 |
Consolidated Cash Flow Statement For Year Ended 30 June
|
|
| 2010 | 2009 |
|
|
| £000 | £000 |
| Cash flows used in operating activities |
|
|
|
| (Loss) before tax |
| (4,268) | (7,306) |
| Adjusted for: |
|
|
|
| Exceptional items |
| 2,399 | 5,563 |
| Finance revenue |
| (29) | (188) |
| Other non cash expenses |
| 22 | 21 |
|
|
| (1,876) | (1,910) |
| Movements in working capital: |
|
|
|
| Decrease/(increase) in operating receivables | 133 | (290) | |
| Increase/(decrease) in operating payables | 34 | (257) | |
| Cash used in operations |
| (1,709) | (2,457) |
| Interest received |
| 3 | 226 |
| Net cash used in operating activities |
| (1,706) | (2,231) |
| Cash flows from/(used in) investing activities |
|
|
|
| Payments for property, plant and equipment |
| (11) | (19) |
| Proceeds from sale of property, plant and equipment |
| 28 | - |
| Payments for intangible assets |
| (2,487) | (2,745) |
| Payments for investments |
| - | (3,697) |
| Proceeds from sale of investments |
| 3,663 | - |
| Dividends received |
| 27 | - |
| Net cash generated from/(used in) investing activities |
| 1,220 | (6,461) |
| Cash flows from financing activities |
|
|
|
| Issue of ordinary share capital |
| 22 | - |
| Net cash from financing activities |
| 22 | - |
| Total decrease in cash and cash equivalents |
| (464) | (8,692) |
| Cash and cash equivalents at the start of the year |
| 1,355 | 10,047 |
| Cash and cash equivalents at the end of the year |
| 891 | 1,355 |
The audited financial information for the years ended 30 June 2010 and 30 June 2009 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 2009. 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 2010 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 a similar emphasis of matter paragraph on the Group's statutory financial statements for the year ended 30 June 2010. The preliminary announcement was approved by the Board of Directors on 28 September 2010.
For further information:
| GCM Resources plc Steve Bywater Chief Executive +44 (0) 20 7290 1630
Graham Taggart Finance Director +44 (0) 20 7290 1630
| Pelham Bell Pottinger Charles Vivian 44 (0)20 7861 3126
Klara Kaczmarek +44 (0)20 7861 3883 |
| J.P. Morgan Cazenove Nominated Adviser Michael Wentworth-Stanley +44 (0) 20 7588 2828 |
|
| GCM Resources plc |
|
| Tel: +44 (0) 20 7290 1630, Fax: +44 (0) 20 7290 1631 |
|
| info@gcmplc.com; www.gcmplc.com |
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