26 Sep 2019 12:44
26 September 2019
Path Investments plc
("Path" or the "Company")
Interim Results for the six months to 30 June 2019
Path Investments plc (TIDM: PATH), the natural resources investment company, announces its interim results for the six months to 30 June 2019.
Highlights
·; Sale of Legacy Turkish assets
·; Broadened focus on the acquisition of producing natural resource assets
·; Announcement of binding Share Purchase Agreement with FineGems Extraction Corporation
·; Appointment of PKF as auditors to the company
·; New website launched www.pathinvestmentsplc.com
·; Profit before tax £ 23,263 (H1 2018 loss before tax of £483,418)
·; Earnings per share 0.01p (H1 2018 loss 0.25 per share)
Commenting, Christopher Theis, Chief Executive of Path, said: "The first half of 2019 was an extremely busy time for the Company, culminating in our announcement, post the review period on 19 August 2019, of our intended purchase of FineGems Extraction Corporation. The proposed acquisition delivers on our corporate strategy; we are working tirelessly in these difficult times for the capital markets towards completion of the transaction."
Enquiries:
Path Investments plc Christopher Theis
| 020 3934 6630 |
Shard Capital (Broker and Financial Adviser) Simon Leathers Damon Heath
| 0207 186 9900 |
IFC Advisory (Financial PR & IR) Tim Metcalfe Zach Cohen
| 020 3934 6630 |
About Path Investments plc
The strategy of the Company is focused on delivering a material acquisition in natural resources production or near production assets with the objective of providing the Company's shareholders with access to a low risk and, over time, diversified portfolio which can offer a dividend stream as well as offering development potential for capital growth. The Directors are looking to create a diversified portfolio of assets that is mindful of the maturity of asset developments, life of income stream and the potential for growth, and a number of opportunities have been evaluated and developed. The Company is open to ideas but intends that the Reverse Takeover will be of a business that can act as the cornerstone for building a substantial group within the sector.
Chairman's Report
The sale of the legacy Turkish assets during the period under review marked the final chapter of the historic business.
Your board is investigating the appropriate method of returning the consideration received to deferred shareholders, mindful of the company's current negative reserves position. We expect to be in a position to say more on this shortly.
We are pleased with the progress that has been made since signing our binding Share Purchase Agreement with FineGems Extraction Corporation. Given the reverse takeover nature of the transaction, we intend to publish a prospectus during the final quarter of 2019 and are grateful of the support of our advisory team in this regard.
I encourage shareholders to visit our new website www.pathinvestmentsplc.com on a regular basis to keep abreast of developments.
Brent Fitzpatrick
Non-executive Chairman
26 September 2019
Financial Review
For the six months to 30 June 2019, the Company recorded a profit before tax of £23,263. There was no revenue in the period.
Cash flow
As at 30 June 2019 the Company held cash of £14,756 in the bank account.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2019
Notes | Six months ended 30 June | Six months ended 30 June | Year ended 31 December | |
2019 | 2018 | 2018 | ||
Unaudited | Unaudited | Audited | ||
£ | £ | £ | ||
Administrative expenses | 3 | (376,800) | (483,492) | (965,608) |
Total administrative expenses | (376,800) | (483,492) | (965,608) | |
Operating loss | (376,800) | (483,492) | (965,608) | |
Other income | 400,000 | - | - | |
Finance income | 63 | 74 | 81 | |
Finance cost | - | - | (93,533) | |
Profit/(loss) on ordinary activities before taxation | 23,263 | (483,418) | (1,059,060) | |
Tax on profit/(loss) on ordinary activities | - | - | - | |
Profit/(loss) for the period and total comprehensive (loss)/profit for period |
| 23,263 | (483,418) | (1,059,060) |
Earnings/(loss) per share (pence) | ||||
- Basic & diluted | 4 | 0.01 | (0.25) | (0.54) |
All operating income and operating gains and losses relate to continuing activities.
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2019
| Share Capital | Share Premium | Retained earnings | Total |
£ | £ | £ | £ | |
As at 1 January 2019 | 8,979,767 | 25,413,617 | (35,466,144) | (1,072,760) |
Comprehensive income Loss for the period |
- |
- |
23,263 |
23,263 |
As at 30 June 2019 | 8,979,767 | 25,413,617 | (35,442,881) | 1,049,497 |
| Share Capital | Share Premium | Retained earnings | Total |
£ | £ | £ | £ | |
As at January 2018 | 8,979,767 | 25,413,617 | (34,407,084) | (13,700) |
Comprehensive income Loss for the period |
- |
- |
(1,059,060) |
(1,059,060) |
As at 31 December 2018 | 8,979,767 | 25,413,617 | (35,466,144) | (1,072,760) |
| Share Capital | Share Premium | Retained earnings | Total |
£ | £ | £ | £ | |
As at 1 January 2018 | 8,979,767 | 25,413,617 | (34,407,084) | (13,700) |
Comprehensive income Profit for the period |
- |
- |
(483,418) |
(483,418) |
Issue of share capital | - | - | - | - |
As at 30 June 2018 | 8,979,767 | 25,413,617 | (34,890,502) | (497,118) |
The Share Capital represents the nominal value of the equity shares.
The Share Premium represents the amount subscribed for share capital, in excess of the nominal amount, less costs directly relating to the issue of shares.
The Share Based Payments reserve represents the fair value of the equity settled share option scheme.
The Retained Earnings reserve represents the cumulative net gains and losses less distributions made.
Statement of financial position
FOR THE SIX MONTHS ENDED 30 JUNE 2019
|
Notes | As at 30 June 2019 | As at 30 June 2018 | As at 31 December 2018 |
Unaudited | Unaudited | Audited | ||
£ | £ | £ | ||
ASSETS | ||||
Current assets | ||||
Trade and other receivables | - | - | 2,220 | |
Cash and cash equivalents | 14,756 | 30,734 | 473 | |
14,756 | 30,734 | 2,693 | ||
LIABILITIES | ||||
Current liabilities | ||||
Trade and other payables | 5 | (1,064,253) | (527,852) | (1,075,453) |
Net Current Liabilities | (1,049,497) | (497,118) | (1,075,453) | |
NET LIABILITIES | (1,049,497) | (497,118) | (1,072,760) | |
SHAREHOLDERS' EQUITY | ||||
Called up share capital | 6 | 195,943 | 195,943 | 195,943 |
Deferred shares | 6 | 8,783,824 | 8,783,824 | 8,783,824 |
Share premium account | 25,413,617 | 25,413,617 | 25,413,617 | |
Retained earnings | (35,442,881) | (34,890,502) | (35,466,144) | |
TOTAL EQUITY | (1,049,497) | (497,118) | (1,072,760) | |
statement of cash flows
FOR THE SIX MONTHS ENDED 30 JUNE 2019
Six months to 30 June 2019 | Six months to 30 June 2018 | Year ended 31 December 2018 | ||
Unaudited | Unaudited | Audited | ||
£ | £ | £ | ||
Operating loss | (376,800) | (483,492) | (965,608) | |
Decrease in debtors | 2,220 | 8,978 | 6,758 | |
(Decrease)/increase in creditors within one year |
(11,200) |
345,669 |
893,270 | |
Convertible loan note interest | - | - | (93,000) | |
Net cash outflow from operating activities | (385,780) | (128,845) | (158,580) | |
Cash flows from investing activities | ||||
Investment income | 400,000 | - | - | |
Interest received | 63 | 74 | 81 | |
Finance costs | - | - | (533) | |
Net cash generated from investing activities |
400,063 |
74 |
(452) | |
Net increase/(decrease) in cash and cash equivalents | 14,283 | (128,771) | (159,032) | |
Cash and cash equivalents at beginning of period | 473 | 159,505 | 159,505 | |
Cash and cash equivalents at end of period | 14,756 | 30,734 | 473 | |
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NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2019
1. GENERAL INFORMATION
Path Investments Plc is a public limited company incorporated in the United Kingdom, registered under company number 04006413. The address of the registered office is Aston House, Cornwall Avenue, London, N3 1LF. The principal activity of the Company is the investment in oil and gas production and development assets.
2. ACCOUNTING POLICIES
2.1 Basis of preparation
The financial statements are presented in UK Sterling and all values are rounded to the nearest pound except where indicated otherwise.
The financial statements have been prepared under the historical cost convention or fair value where appropriate.
The results for the six months to 30 June 2019 have been prepared on the basis of the accounting policies set out in the company's 2018 annual report and accounts. The interim accounts do not constitute statutory accounts as defined by section 434 of the Companies Act 2006. The auditor has reported on the 2018 accounts and the report was unqualified and did not contain a statement under section 498(2) of (3) of the Companies Act 2006. The company's 2018 report and accounts have been filed with the registrar of companies.
During the period, there have been no changes in the nature of the related party transactions from those described in the company's 2018 accounts.
The results for the six months are unaudited.
2.2 Responsibility statement
The directors confirm that these condensed interim financial statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting", as adopted by the European Union and as issued by the IASB and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely;
a) An indication of the important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
b) Material related party transactions in the first six months and any material changes in related party transactions described in the last annual report.
3. ADMINISTRATIVE EXPENSES
Six months to 30 June 2019 | Six months to 30 June 2018 | Year ended 31 December 2018 | |
Unaudited | Unaudited | Audited | |
£ | £ | £ | |
Directors remuneration | 98,031 | 131,960 | 268,896 |
Other administrative expenses | 278,769 | 351,532 | 696,712 |
376,800 | 483,492 | 965,608 |
Included in Directors remuneration for the period ended 30 June 2018 are accrued salaries of £77,031 (June 2018 £95,781, December 2018: £210,718).
4. LOSS PER SHARE
The calculation of the basic and diluted loss per share is based on the loss on ordinary activities after taxation of and on the weighted average number of ordinary shares in issue.
There was no dilutive effect from the share options or convertible loan notes outstanding during the period.
In order to calculate the diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares according to IAS33. Dilutive potential ordinary shares include convertible loan notes and share options granted to Directors and consultants where the exercise price (adjusted according to IAS 33) is less than the average market price of the Company's ordinary shares during the period.
Six months to 30 June 2019 | Six months to 30 June 2018 | Year ended 31 December 2018 | |
Unaudited | Unaudited | Audited | |
£ | £ | £ | |
Net profit/(loss) for the period | 23,263 | (483,418) | (1,059,060) |
The weighted average number of shares in the period were: | |||
Basic and dilutive ordinary shares | 195,943,802 | 195,943,802 | 195,943,802 |
Basic and dilutive earnings/(loss) per share (pence) | 0.01 | (0.25) | (0.54) |
5. TRade and other payables
As at 30 June 2019 | As at 30 June 2018 | As at 31 December 2018 | |
Unaudited | Unaudited | Audited | |
| £ | £ | |
Trade payables | 246,785 | 168,319 | 369,939 |
Other payables | 173,934 | 68,000 | 193,956 |
Accruals and deferred income | 643,534 | 291,533 | 511,558 |
1,064,253 | 527,852 | 1,075,453 |
6. SHARE Capital
Unaudited | Unaudited | Unaudited | Unaudited | |||
Allotted, called up and fully paid | no | £ | no | £ | ||
Ordinary Shares of 0.1p each | Ordinary Shares of 0.1p each | Deferred Share of 39.9p each | Deferred Share of 39.9p each | |||
At 1 January 2018 and as at 30 June 2018 (unaudited), (December 2018 (audited) and June 2019 (unaudited) |
195,943,802 |
195,943 |
22,014,596 |
8,783,824 | ||
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