Last checked at 15 Nov 2013 07:00
15 November 2013
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Preliminary Results for the year ended 30 June 2013
Parkmead, the UK and Netherlands focused oil and gas group, is pleased to report its preliminary results for the year ended 30 June 2013.
HIGHLIGHTS
Exploration and Appraisal
· Major licence awards in the UKCS 27th Licensing Round, gaining stakes in 25 blocks across the Central North Sea, West of Scotland and West of Shetlands
· Work being accelerated on the high-impact Skerryvore oil prospect in the UK Central North Sea
· Successful first appraisal well at the UK Platypus field, flowing 27 million cubic feet of gas per day
· Platypus Field Development Plan (FDP) preparation already underway
· Exploration drilling in progress at the Pharos gas prospect, just 14km from the Platypus field
Development and Production
· Completed the acquisition of Lochard Energy Group PLC, providing Parkmead with a substantial increase in production, revenue and cash flow
· Completed the acquisition of DEO Petroleum plc, adding significant oil reserves in the UK North Sea
· Completed the acquisition of a portfolio of Netherlands assets from Dyas B.V., comprising 4 producing gas fields and 2 oil & gas developments
· Continued progress with the Greater Perth Area. Evaluating potential joint development of the Perth and Lowlander oil fields
· Net oil and gas production grew by approximately 400%
Financial Growth
· Revenue increased 38% to £4.1 million (2012: £2.9 million)
· Total assets grew 133% to £53.4 million at 30 June 2013 (£22.9 million at 30 June 2012)
· Cash balances of £13.3 million as at 30 June 2013
· Raised approximately £15.925 million in January 2013, providing finance for further growth
· In advanced discussion with lenders regarding debt facilities to increase financial firepower
Parkmead's Executive Chairman, Tom Cross commented:
"I am pleased to report excellent progress in the year to 30 June 2013. Parkmead has significantly increased its reserve base and also added production to the Group's portfolio, providing first cash flow from E&P operations.
These key achievements have been delivered through the completion of three important acquisitions, securing two oil companies in the UK and a portfolio of gas and oil fields in the Netherlands.
Parkmead was also delighted to be awarded several new licences through the UK 27th Licensing Round, covering some 25 blocks across the UKCS. In addition, the Company delivered successful drilling results with its first appraisal well at the Platypus gas field in the UK Southern North Sea, providing a valuable near-term development opportunity.
Parkmead has created a strong platform from which to become a key E&P player in the North Sea, and we look forward to updating shareholders as we continue to grow into 2014 and beyond."
For enquiries please contact:
The Parkmead Group plc | |
Tom Cross (Executive Chairman) | +44 (0) 1224 622200 |
Ryan Stroulger (Chief Financial Officer) | +44 (0) 1224 622200 |
Charles Stanley Securities (Financial Adviser, NOMAD and Corporate Broker to Parkmead) | |
Marc Milmo | +44 (0) 20 7149 6000 |
Karri Vuori | +44 (0) 20 7149 6000 |
Carl Holmes | +44 (0) 20 7149 6000 |
College Hill Associates (PR Adviser to Parkmead) | |
David Simonson | +44 (0) 20 7457 2020 |
Alexandra Roper | +44 (0) 20 7457 2020 |
Chairman's Statement
2013 has been an excellent year for Parkmead. Following strong growth in the Group's oil and gas portfolio during 2012, in May 2013 the Company announced its acquisition of Lochard Energy Group PLC ("Lochard"), Parkmead's largest deal to date. The Lochard acquisition provides Parkmead with a significant increase in production, revenue and cash flow, which acts as a superb platform for the Company's next phase of growth.
Parkmead was successful in winning interests in, and operatorship of, a total of 25 offshore blocks across the UK in the 27th Licensing Round in October 2012. The award of these new licences was finalised in January 2013. We have already begun various work programmes across the licences, with seismic and detailed mapping work underway. This substantial increase in the Group's asset portfolio has firmly established Parkmead as an offshore operator in the UK.
Operations and Portfolio Growth
The Group has made considerable progress towards building an independent oil and gas company of significant scale, maximising opportunities and adding value to Parkmead's growing portfolio. In May 2013, the Group announced its recommended offer for Lochard, which was completed post financial year end in July 2013. As a result, Parkmead now holds a 10% working interest in the producing Athena oil field in the UK North Sea. This has increased Parkmead's production, revenue and cash flow substantially, and provides an excellent complement to our gas production in the Netherlands. We are working alongside the operator of Athena to increase oil recovery from the field, thus maximising shareholder value from the Lochard acquisition.
In line with our strategy, Parkmead has shown a strong appetite for value-accretive transactions, at both asset and corporate level, as we look to build oil and gas projects across the entire spectrum from exploration through to appraisal, development and production. Parkmead is pleased to have completed the DEO Petroleum plc acquisition as well as the purchase of a portfolio of producing Netherlands assets, both in August 2012. These acquisitions have provided the Group with low-cost onshore gas production as well as a sizeable oil reserves position in the UK.
Acquisitions to date have focused on opportunities in Parkmead's preferred geographical area of Europe. The high level of activity demonstrates the drive and ambition of our Company, and its team, and creates a strong foundation from which to become a key E&P player in the North Sea and beyond.
Parkmead is equally focused on building the business through organic growth, with licence applications, seismic and drilling. In October 2012, the Group was awarded six new licences in the UKCS 27th Licensing Round, covering 25 blocks across the Central North Sea, West of Shetlands and West of Scotland, all with Parkmead as operator.
This was an outstanding result for our Company, ranking Parkmead in the top tier of awardees in the Licensing Round. Parkmead's operatorship of all of the new licences awarded to the Group confirms the industrial credibility and reputation of the Parkmead geotechnical team. The licence awards were finalised in January 2013 and we have already initiated various work programmes across a number of the blocks. The Group has also applied for certain licences in the 27th Round within the UK Southern Gas Basin. These are yet to be awarded by the UK government due to their location close to, or in, certain Special Areas of Conservation (SACs) and Special Protection Areas (SPAs).
In August 2012, the Group was delighted to announce very positive drilling results from the Platypus appraisal well in the UK Southern North Sea. A horizontal well was successfully completed and flow tested at 27 million cubic feet of gas per day. Parkmead is working closely with its partners on the Platypus gas field to fast-track the development programme, with a draft Field Development Plan (FDP) expected to be submitted in due course. As we move into 2014, the Group has an active work programme across its portfolio of assets, with the aim of adding further shareholder value to each project. Our oil and gas team will continue to utilise its detailed technical knowledge of certain proven and frontier areas to identify and acquire assets, including participation in further UK and international licensing rounds.
The three aforementioned acquisitions, alongside Parkmead's 27th Licensing Round awards, have provided the Group with a strong and balanced portfolio across the asset life cycle.
Results
The Group's revenue has increased significantly in 2013 to £4.1m (2012: £2.9m). This increase was driven by gas production from Parkmead's Netherlands portfolio, demonstrating the value of these assets at this early stage in the Company's growth. Administrative expenses were £7.7m (2012: £5.5m). The Group's operating loss for the year was £5.1m (2012: £4.7m). The loss after tax was £5.6m (2012: £4.9m). Total comprehensive loss for the year was £6.9m (2012: £5.1m).
Parkmead's total assets have more than doubled to £53.4m (2012: £22.9m). This was as a result of the acquisition of DEO Petroleum plc and a portfolio of Netherlands assets from Dyas B.V. Available-for-sale financial assets were £4.4m (2012: £6.5m). Cash and cash equivalents increased considerably to £13.3m (2012: £7.7m). The total current liabilities were £11.1m (2012: £4.2m).
The Group's net asset value more than trebled to £37.3m (2012: £12.3m). In August 2012, Parkmead completed the acquisition of fellow independent oil and gas company, DEO Petroleum plc ("DEO"). This acquisition was completed by way of a court sanctioned Scheme of Arrangement and offered DEO shareholders two Parkmead shares for every DEO share held. Following this deal 86,219,860 ordinary shares were admitted for trading.
In January 2013, the Group raised approximately £15.925 million (gross) through a successful, oversubscribed placing of 130m new ordinary shares at 12.25 pence per share, providing Parkmead with considerable financial firepower for further growth. In addition, 27.8m new ordinary shares were issued to T P Cross (and entities affiliated to him) at the placing price pursuant to the conversion of £3.4 million of the loans drawn down by the Company from T P Cross (and entities affiliated to him). Some 1,744,908 new ordinary shares were issued on the exercise of options, bringing the Group's total ordinary shares in issue to 921,139,016 (2012: 675,419,147).
Subsequent to its 30 June year-end, the Group completed the acquisition of Lochard. Like DEO, this acquisition was also completed by way of a court sanctioned Scheme of Arrangement and offered Lochard shareholders 0.385 Parkmead shares for every Lochard share held. Following this acquisition 115,063,262 ordinary shares were admitted for trading and the Group's total ordinary shares in issue increased to 1,036,202,278.
As at 30 June 2013 Parkmead had drawn £2.0m of its shareholder loan facility following the debt for equity conversion. Due to Parkmead's ongoing growth and investment programme, the Board is not recommending the payment of a dividend in 2013 (2012: nil).
Investments
The Group's principal investment is shares held in Faroe Petroleum plc ("Faroe") (LSE AIM: FPM.L). As at 30 June 2013, the value of this investment was £4.4m (30 June 2012: £6.5m). The investment is held as available-for-sale and the decrease in its value due to share price movement has been reflected in equity.
Faroe's share price fell from 148p to 113p over the 12 months to 30 June 2013. Faroe reported a significant boost to production and revenue, together with a number of new licence awards across the UK and Norway. However, after two unsuccessful drilling results in quick succession, targeting the North Uist prospect in the UK West of Shetlands and the Darwin prospect in Norway, the share price decreased to 113p at 30 June 2013. We remain of the view that Faroe has long-term upside with an ongoing drilling programme and a broad portfolio of exploration licences.
Outlook
The Directors of Parkmead are delighted with the major progress the Group has made this year in building an exciting independent oil and gas company of increasing scale. With a balanced asset base and the completion of the acquisition of Lochard in July 2013, we believe Parkmead has built considerable momentum over the last twelve months. In addition, we are pleased by our substantial award in the UKCS 27th Licensing Round, with Parkmead elected as operator of all the 25 blocks awarded to the Company. We also look forward to the results of the Pharos exploration well which is currently in progress.
As we advance towards 2014 and beyond, our team maintains its appetite for acquisitions and will seek to add shareholder value through a dynamic work programme. The Group has built a strong platform from which to become a key E&P player in the North Sea, and we look forward to updating shareholders as we make further progress.
Tom Cross
Executive Chairman
14 November 2013
Notes:
1. Dr Colin Percival, Parkmead's Technical Director, who holds a First Class Honours Degree in Geology and a Ph.D in Sedimentology and has over 30 years' experience in the oil and gas industry, has reviewed and approved the technical information contained in this announcement. Reserves and contingent resources estimates are stated as at 7 August 2013 and include deals signed during the financial year ended 30 June 2013 that subsequently completed post financial year end. Parkmead's evaluation of reserves and resources was completed in accordance with the 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers and reviewed and jointly sponsored by the World Petroleum Council, the American Association of Petroleum Geologists and the Society of Petroleum Evaluation Engineers.
Group statement of profit or loss
for the year ended 30 June 2013
Note | 2013 | 2012 | |
£ | £ | ||
Continuing operations | |||
Revenue | 4,069,916 | 2,948,901 | |
Cost of sales | (2,455,287) | (1,435,994) | |
Gross profit | 1,614,629 | 1,512,907 | |
Exploration and evaluation expenses | (274,745) | (685,621) | |
Administrative expenses | (7,655,620) | (5,531,847) | |
Gain on bargain purchase | 1,215,976 | - | |
Operating loss | (5,099,760) | (4,704,561) | |
Finance income | 36,437 | 11,484 | |
Finance costs | (175,313) | (222,737) | |
Loss on sale of available-for-sale financial assets | (43,039) | - | |
Loss before taxation | (5,281,675) | (4,915,814) | |
Taxation | (303,006) | 4,225 | |
Loss for the year attributable to the equity holders of the Parent | (5,584,681) | (4,911,589) | |
Loss per share (pence) | |||
Continuing operations Basic and diluted | 2 | (0.68) | (0.78) |
Group and company statement of profit or loss and other comprehensive income
for the year ended 30 June 2013
Group |
Company | ||||
2013 £ | 2012 £ | 2013 £ | 2012 £ | ||
Loss for the year | (5,584,681) | (4,911,589) | (7,313,781) | (5,037,678) | |
Other comprehensive income | |||||
Items that will not be reclassified subsequently to profit or loss | |||||
Gains on repayment of employee share based loans | - | 369,012 |
- |
369,012 | |
- | 369,012 | - | 369,012 | ||
Items that may be reclassified subsequently to profit or loss | |||||
Fair value loss on available-for-sale financial assets | (1,306,067) | (590,900) |
(1,304,957) |
(590,900) | |
Income tax relating to components of other comprehensive income | - | - |
- |
- | |
Other comprehensive loss for the year, net of tax | (1,306,067) | (221,888) |
(1,304,957) |
(221,888) | |
Total comprehensive loss for the year attributable to the equity holders of the Parent | (6,890,748) | (5,133,477) |
(8,618,738) |
(5,259,566) | |
Group and company statement of financial position
as at 30 June 2013
Group | Company | |||||
2013 | 2012 | 2013 | 2012 | |||
£ | £ | £ | £ |
| ||
Non-current assets |
| |||||
Property, plant and equipment: development & production | 3,600,834 | - | - | - |
| |
Property, plant and equipment: other | 170,313 | 248,137 | 141,487 | 200,385 |
| |
Goodwill | 2,173,532 | 2,173,532 | - | - |
| |
Other intangible assets | 11,399 | 25,170 | - | - |
| |
Exploration and evaluation assets | 25,789,601 | 3,063,502 | - | - |
| |
Investment in subsidiary and joint ventures | - | - | 16,639,471 | 3,931,404 |
| |
Available-for-sale financial assets | 4,393,752 | 6,456,132 | 4,393,506 | 6,456,132 |
| |
Total non-current assets | 36,139,431 | 11,966,473 | 21,174,464 | 10,587,921 |
| |
| ||||||
Current assets |
| |||||
Trade and other receivables | 3,972,006 | 3,253,846 | 14,240,573 | 3,436,953 |
| |
Cash and cash equivalents | 13,268,650 | 7,694,141 | 12,749,450 | 7,666,393 |
| |
Total current assets | 17,240,656 | 10,947,987 | 26,990,023 | 11,103,346 |
| |
| ||||||
Total assets | 53,380,087 | 22,914,460 | 48,164,487 | 21,691,267 |
| |
| ||||||
Current liabilities |
| |||||
Trade and other payables | (8,671,513) | (4,085,963) | (7,733,328) | (2,983,985) |
| |
Interest-bearing loans and borrowings | (2,000,000) | - | (2,000,000) | - |
| |
Current tax liabilities | (307,950) | (4,293) | - | (4,293) |
| |
Other provisions | (140,647) | (122,105) | (73,517) | (76,001) |
| |
Total current liabilities | (11,120,110) | (4,212,361) | (9,806,845) | (3,064,279) |
| |
| ||||||
Non-current liabilities |
| |||||
Interest-bearing loans and borrowings | - | (2,981,819) | - | (2,981,819) |
| |
Other liabilities | (2,812,371) | (3,452,069) | (2,812,371) | (3,452,069) |
| |
Deferred tax liabilities | (1,592,675) | (5,710) | - | - |
| |
Decommissioning provisions | (512,269) | - | - | - |
| |
Total non-current liabilities | (4,917,315) | (6,439,598) | (2,812,371) | (6,433,888) |
| |
| ||||||
Total liabilities | (16,037,425) | (10,651,959) | (12,619,216) | (9,498,167) |
| |
| ||||||
Net assets | 37,342,662 | 12,262,501 | 35,545,271 | 12,193,100 |
| |
| ||||||
Equity attributable to equity holders |
| |||||
Called up share capital | 18,969,886 | 18,724,166 | 18,969,886 | 18,724,166 |
| |
Share premium | 30,447,657 | 11,619,452 | 30,447,657 | 11,619,452 |
| |
Merger reserve | 12,631,209 | - | 12,631,209 | - |
| |
Revaluation reserve | (1,632,287) | (326,220) | (1,631,177) | (326,220) |
| |
Retained deficit | (23,073,803) | (17,754,897) | (24,872,304) | (17,824,298) |
| |
Total Equity | 37,342,662 | 12,262,501 | 35,545,271 | 12,193,100 | ||
Group statement of changes in equity
for the year ended 30 June 2013
Share capital | Share premium | Merger reserve | Revaluation reserve | Retained earnings | Total |
| |||
£ | £ | £ | £ | £ | £ | ||||
At 1 July 2011 | 18,658,349 | 2,907,986 | - | 264,680 | (12,823,758) | 9,007,257 | |||
Loss for the year | - | - | - | - | (4,911,589) | (4,911,589) | |||
Fair value loss on available-for-sale financial assets | - | - | - | (590,900) | - | (590,900) | |||
Gains arising on repayment of employee share based loans | - | - | - | - | 369,012 | 369,012 | |||
Total comprehensive loss for the year | - | - | - | (590,900) | (4,542,577) | (5,133,477) | |||
Issue of new ordinary shares | 65,817 | 8,711,466 | - | - | - | 8,777,283 | |||
Share-based payments | - | - | - | - | (388,562) | (388,562) | |||
At 30 June 2012 | 18,724,166 | 11,619,452 | - | (326,220) | (17,754,897) | 12,262,501 | |||
Loss for the year | - | - | - | - | (5,584,681) | (5,584,681) | |||
Fair value loss on available-for-sale financial assets | - | - | - | (1,306,067) | - | (1,306,067) | |||
Total comprehensive loss for the year | - | - | - | (1,306,067) | (5,584,681) | (6,890,748) | |||
Issue of new ordinary shares | 159,500 | 18,828,205 | - | - | - | 18,987,705 | |||
Issue of new ordinary shares on acquisition of subsidiary | 86,220 | - | 12,631,209 | - | - | 12,717,429 | |||
Share-based payments | - | - | - | - | 265,775 | 265,775 | |||
At 30 June 2013 | 18,969,886 | 30,447,657 | 12,631,209 | (1,632,287) | (23,073,803) | 37,342,662 | |||
Company statement of changes in equity
for the year ended 30 June 2013
Share capital | Share premium | Merger reserve | Revaluation reserve | Retained earnings | Total |
| |||
£ | £ | £ | £ | £ | £ | ||||
At 1 July 2011 | 18,658,349 | 2,907,986 | - | 264,680 | (12,767,070) | 9,063,945 | |||
Loss for the year | - | - | - | - | (5,037,678) | (5,037,678) | |||
Fair value loss on available-for-sale financial assets | - | - | - | (590,900) | - | (590,900) | |||
Gains arising on repayment of employee share based loans | - | - | - | - | 369,012 | 369,012 | |||
Total comprehensive loss for the year | - | - | - | (590,900) | (4,668,666) | (5,259,566) | |||
Issue of new ordinary shares | 65,817 | 8,711,466 | - | - | - | 8,777,283 | |||
Share-based payments | - | - | - | - | (388,562) | (388,562) | |||
At 30 June 2012 | 18,724,166 | 11,619,452 | - | (326,220) | (17,824,298) | 12,193,100 | |||
Loss for the year | - | - | - | - | (7,313,781) | (7,313,781) | |||
Fair value loss on available-for-sale financial assets | - | - | - | (1,304,957) | - | (1,304,957) | |||
Total comprehensive loss for the year | - | - | - | (1,304,957) | (7,313,781) | (8,618,738) | |||
Issue of new ordinary shares | 159,500 | 18,828,205 | - | - | - | 18,987,705 | |||
Issue of new ordinary shares on acquisition of subsidiary | 86,220 | - | 12,631,209 | - | - | 12,717,429 | |||
Share-based payments | - | - | - | - | 265,775 | 265,775 | |||
At 30 June 2013 | 18,969,886 | 30,447,657 | 12,631,209 | (1,631,177) | (24,872,304) | 35,545,271 | |||
Group and company statement of cashflows
for the year ended 30 June 2013
Group | Company |
| ||||||
2013 | 2012 | 2013 | 2012 | |||||
Note | £ | £ | £ | £ | ||||
Cashflows from operating activities | ||||||||
Continuing activities | 3 | (4,693,973) | (2,331,370) | (13,450,727) | (4,913,093) | |||
Taxation paid | (4,293) | 6,304 | (4,293) | 4,293 | ||||
Net cash used in operating activities | (4,698,266) | (2,325,066) | (13,455,020) | (4,908,800) | ||||
Cash flow from investing activities | ||||||||
Interest received | 36,437 | 11,485 | 35,776 | 11,260 | ||||
Repayment of employee share based loans | - | 369,012 | - | 369,012 | ||||
Acquisition of subsidiary, net of cash | 303,728 | - | - | - | ||||
Acquisition of exploration and evaluation assets | (5,184,849) | (3,063,502) | - | - | ||||
Proceeds from sale of available-for-sale financial assets | 714,632 | 16,985 | 714,632 | 16,985 | ||||
Acquisition of property, plant and equipment: development and production | (3,382,082) | - | - | - | ||||
Acquisition of property, plant and equipment: other | (92,872) | (189,986) | (90,112) | (172,618) | ||||
Proceeds from sale of property, plant and equipment | - | 1,250 | - | 1,250 | ||||
Net cash generated by/(used in) investing activities | (7,605,006) | (2,854,756) | 660,296 | 225,889 | ||||
Cash flow from financing activities | ||||||||
Issue of ordinary shares | 15,587,706 | 8,777,283 | 15,587,706 | 8,777,283 | ||||
Interest paid | (128,106) | (159,337) | (128,106) | (159,337) | ||||
Proceeds from loans and borrowings | 2,418,181 | 2,981,819 | 2,418,181 | 2,981,819 | ||||
Net cash generated by financing activities | 17,877,781 | 11,599,765 | 17,877,781 | 11,599,765 | ||||
Net increase in cash and cash equivalents | 5,574,509 | 6,419,943 | 5,083,057 | 6,916,854 | ||||
Cash and cash equivalents at beginning of year | 7,694,141 | 1,274,198 | 7,666,393 | 749,539 | ||||
Cash and cash equivalents at end of year | 13,268,650 | 7,694,141 | 12,749,450 | 7,666,393 | ||||
Notes to the financial information for the year ended 30 June 2013
1. Basis of preparation of the financial information
The financial information set out in this announcement does not comprise the Group and Company's statutory accounts for the years ended 30 June 2013 or 30 June 2012.
The financial information has been extracted from the audited statutory accounts for the years ended 30 June 2013 and 30 June 2012. The auditors reported on those accounts; their reports were unqualified and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis.
The statutory accounts for the year ended 30 June 2012 have been delivered to the Registrar of Companies. The statutory accounts for the year ended 30 June 2013 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
The accounting policies are consistent with those applied in the preparation of the interim results for the period ended 31 December 2012 and the statutory accounts for the year ended 30 June 2012, which have been prepared in accordance with International Financial Reporting Standards ("IFRS").
2. Loss per share
Loss per share attributable to equity holders of the Company arise from continuing operations as follows:
2013 | 2012 | |||
Loss per 0.1p ordinary share from continuing operations (pence) | ||||
Basic and diluted | (0.68p) | (0.78p) |
The calculations were based on the following information:
2013 | 2012 | ||||
£ | £ | ||||
Loss attributable to ordinary shareholders | |||||
Continuing operations | (5,584,681) | (4,911,589) | |||
Total | (5,584,681) | (4,911,589) | |||
Weighted average number of shares in issue | |||||
Basic weighted average number of shares | 826,849,960 | 630,738,232 | |||
Dilutive potential ordinary shares | |||||
Share options | 24,030,792 | 35,910,993 |
Loss per share is calculated by dividing the loss for the year by the weighted average number of ordinary shares outstanding during the year. Potential ordinary shares are anti-dilutive and are therefore excluded from the weighted average number of ordinary shares for the purposes of continuing operations diluted loss per share.
Diluted loss per share
Loss per share requires presentation of diluted loss per share when a company could be called upon to issue shares that would decrease net profit or increase net loss per share. For a loss making company with outstanding share options, net loss per share would only be decreased by the exercise of share options.
3. Notes to the statement of cashflows
Reconciliation of operating loss to net cash flow from continuing operations
Group | Company | |||||
2013 | 2012 | 2013 | 2012 | |||
£ | £ | £ | £ | |||
Operating loss | (5,099,760) | (4,704,561) | (7,166,100) | (4,826,202) | ||
Depreciation | 369,762 | 70,406 | 66,153 | 49,528 | ||
Amortisation | 33,521 | 18,487 | - | - | ||
(Gain)/loss on disposal of fixed assets | 133,198 | (1,250) | 82,856 | (1,250) | ||
Gain on bargain purchase | (1,215,976) | - | - | - | ||
Provision for share based payments | 4,528,505 | 2,963,030 | 4,537,867 | 2,934,443 | ||
Increase in receivables | (265,435) | (1,531,682) | (10,803,620) | (3,239,618) | ||
Increase/(decrease) in payables | (3,196,330) | 1,070,184 | (165,400) | 418,068 | ||
Increase/(decrease) in other provisions | 18,542 | (215,984) | (2,484) | (248,062) | ||
Net cash flow from operations | (4,693,973) | (2,331,370) | (13,450,727) | (4,913,093) | ||
4. Approval of this preliminary announcement
The preliminary report, including the financial information contained therein, is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the report in accordance with the AIM rules issued by the London Stock Exchange.
This announcement was approved by the Board of Directors on 14 November 2013.
5. Posting of annual report and accounts
Copies of the Annual Report and Accounts will be posted to shareholders shortly. The Annual Report and Accounts will be made available to download, along with a copy of this announcement, on the investor relations section of the Company's website www.parkmeadgroup.com