Predator Oil Regulatory News (PRD)

FOR IMMEDIATE RELEASE

28 May 2021

Predator Oil & Gas Holdings Plc / Index: LSE / Epic: PRD / Sector: Oil & Gas

LEI 213800L7QXFURBFLDS54

Predator Oil & Gas Holdings Plc

("Predator" or the "Company" and together with its subsidiaries "the Group")

Financial Statements for the Year Ended 31 December 2020

Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company with operations in Trinidad, Morocco and Ireland is pleased to announce its audited financial statements for the year ended 31 December 2020, extracts of which are set out below.

The Company's Annual Report is being posted to shareholders over the coming weeks, allowing for production delays and restricted working practices caused by COVID-19. Copies of the Annual Report will be available at the time of posting to download from the Company's website at www.predatoroilandgas.com.

In addition, a copy of the 2020 Annual Report will be uploaded to the National Storage Mechanism and will be available for viewing at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The financial information set out below does not constitute the Company's statutory accounts for the year ending 31 December 2020.

Key Activities in 2020

Highlights include:

· Environmental Impact Assessment ratified by the Ministry of Energy and Mines and Environment valid for three wells for five years from the effective date of issue of 29 January 2020.

· Rig option agreement entered into, without incurring any financial liabilities, with Canadian drilling contractor Star Valley Drilling Ltd. for Rig No. 101, for one initial well and up to six contingent wells.

· Draft geological programme, well design and drilling programme for the MOU-1 well used to seek quotes for third party well services and logistical field support.

· MOU-1 well location and drilling budget approved by ONHYM.

· Well inventory required for drilling MOU-1 identified as being available within Morocco.

· Guebbas and Hoot equivalent reservoir targets (using Rharb Basin terminology) forecast to occur between 1,200 and 1,500 metres depth in MOU-1 and take up to 15 days to reach.

· Studies resulted in developing the MOU-4 Prospect covering 31.7km² and a 92% increase in Best Estimate prospective gross recoverable gas resources for the primary Tertiary reservoirs was reported in a new independent Competent Persons Report by SLR Consulting (Ireland) Ltd.

· Scoping criteria for the pilot CNG project using a delivery profile of 10 mm cfgpd for a minimum of 5 years gave scoping after tax net-back profit of at least US$ 5/mcf based on a sales price of US$ 10 - 12 /mcf.

· Company-operated CO2 EOR delivery and injection system was successfully installed, commissioned and tested at its dedicated site in the AT-4 Block in the Inniss-Trinity oil field.

· 458.1 metric tonnes of anthropogenic CO2 injected equivalent to 458,100 kg.

· AT-12 showed enhanced oil production averaging 21.3 bopd - 69% higher than the pre-Pilot reservoir engineering forecast.

· 2,928 barrels of enhanced oil production achieved from the pilot C02 EOR operations during the year.

· The combined effect of CO2 injection and the amount of enhanced oil production for this period resulted in a net CO2 emissions reduction of 458,100 kg (equivalent to 799,795 kg of C02 emissions if the oil is burned when taking into account C02 sequestration) and "greener" oil closer to the C02 emissions level of natural gas.

· Submission to the Public Consultation on the expert advisory group report entitled "Expanding Ireland's Marine Protected Area Network", published by the Department of Housing, Local Government and Heritage in conjunction with applying for Marine Area Consent for the FSRU project.

· Restructured the Board with the appointment of Dr. Stephen Staley as permanent Non-executive Chairman, to replace the retiring Carl Kindinger, and Mr Louis Castro as Non-executive Director.

Highlights of Financial Results for 2020 

· Loss from operations of £1,689,521 (2019: Loss of £1,279,243).

· Cash balance at period end of 2020 £1,325,75 (2019: £109,716).

· Restricted cash of USD1,500,000 (USD1,500,000 for the period ended 31 December 2019).

· Placed 89,000,000 new ordinary shares of no par value in the Company at a placing price of 4 pence to raise £3.56 million (before expenses) and 22,438,842 new ordinary shares of no par value in the Company at a placing price of 2 pence to raise £0.448 million (before expenses).

· Issued to Brokers 4,875,000 new ordinary shares of no par value in settlement of placing fees.

· Issued warrants to subscribe for 4,450,000 new ordinary shares in the Company at an exercise price of 12p per share to brokers.

· Issued 15,192,506 shares to repay £269,000 of the outstanding principal balance on the Arato Convertible Loan Note inclusive of 5% conversion fee for the amount of the Loan Note being converted and used some Placing funds for redemption in full of the outstanding principal balance on the Arato Convertible Loan Notes of £746,000 (£ nil for the period to 31 December 2020).

Post Period End:

· Pilot CO2 EOR results at Inniss-Trinity would potentially allow the Company to reach, by cumulative monthly growth over 12 months, target plateau production in the AT-4 Block in the range 243 to 547 bopd, in alignment with pre-Pilot CO2 EOR model forecasts.

· Guercif exploration well planning was targeting a well to be drilled in Q 2 2021.

· The Warrant Instrument with Novum Securities Ltd dated 15 February 2019 granting the right to subscribe in cash for 2,000,000 ordinary shares exercisable at a price per share equal to the subscription price (12p per share) was being amended to allow the exercise date of the warrants to be extended by one year.

· The Warrant Instrument with Novum Securities Ltd and Optiva Securities Ltd dated 24 May 2018 granting the right to subscribe in cash for 2,231,248 and 160,714 ordinary shares respectively exercisable at a price per share equal to the subscription price (2.8p per share) was being amended to allow the exercise date of the warrants to be extended by one year.

· The Warrant Instrument with Arato Global Opportunities pursuant to the Convertible Loan Note dated 15 February 2019 granting the right to subscribe in cash for 2,000,000 ordinary shares exercisable at a price per share equal to the subscription price (12p per share) has expired without the warrants being exercised.

· Placed 17 million new ordinary shares of no-par value in the Company at a placing price of 10.5 pence each to raise £1,785,000 (before expenses).

· As a result of insufficient headroom shares to enable the issue and admission of all of the 17,000,000 Placing Shares which are required to be issued pursuant to the Placing without the production of an FCA approved prospectus, 5,215,155 new ordinary shares were issued (up to its existing headroom) and a director, Paul Griffiths, made up the shortfall with a transfer of 11,784,845 existing shares held by him to Novum Securities.

When the Company has the ability to issue further shares it intends to issue 11,784,845 new Ordinary Shares to Paul Griffiths to restore the position that existed, in terms of his aggregate shareholding in the Company, had he not made the transfer of Ordinary Shares.

Paul Griffiths, Predator's CEO, said:

"During the period, despite the unique challenges presented by the impact of the COVID-19 pandemic, we reached an important milestone in successfully executing and operating the Inniss-Trinity pilot C02 EOR project in Trinidad to demonstrate the potential for reducing C02 emissions by facilitating cost-effective C02 storage in producing reservoirs. The focus on gas onshore Morocco to reduce an over-reliance on more carbon intensive fuels and the planning of offshore LNG solutions for Ireland to address security of energy supply and to provide greater transparency on sources of gas relative to co-mingled imported gas is consistent with our emphasis now firmly on ESG and demonstrating energy sustainability. We are pleased to be able to demonstrate practical and pragmatic options for the Energy Transition which have a role in helping to ameliorate the effects of climate change but also in maintaining a fair, equitable and just social responsibility.

We have eliminated debt, strengthened our balance sheet and further developed our in-country relationships to execute our business strategies and create materiality by aligning with key stakeholders in the energy sectors. With this solid platform we are well-positioned to move forward in 2021 to increase operational activity beginning with the MOU-1 well in northern Morocco, which potentially could lead to the establishment of a new potential gas basin straddling the Maghreb gas pipeline to Europe."

This announcement contains inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 on market abuse (as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018).

For more information, please visit the Company's website at www.predatoroilandgas.com: 

Enquiries:

Notes to Editors:

Predator is an oil and gas exploration company with the objective of participating with FRAM Exploration Trinidad Ltd. in further developing the remaining oil reserves and sequestrating anthropogenic carbon dioxide in the producing Inniss Trinity oil field onshore Trinidad, primarily through the application of C02 EOR technology. Potential for cash flow exists by executing a successful Pilot Enhanced Oil Recovery project using locally sourced liquid carbon dioxide for injection into and storage within the oil reservoirs ("C02 EOR"). Near-term expansion and production growth potential is focussed on upscaling the C02 EOR operations in the Inniss-Trinity oil field, subject to all necessary approvals.

Predator is operator of the Guercif Petroleum Agreement onshore Morocco which is prospective for Tertiary gas in prospects less than 10 kilometres from the Maghreb gas pipeline. A drilling programme, subject to the lifting of COVID-19 restrictions, targeting material prospective gas resources is scheduled for Q2 2021.

In addition, Predator also owns and operates exploration and appraisal assets in licensing options offshore Ireland, for which Successor Authorisations have been applied for, adjoining Vermilion's Corrib gas field in the Slyne Basin on the Atlantic Margin and east of the Kinsale gas field and Barryroe oil field in the Celtic Sea.

The Company has a highly experienced management team with a proven track record in the oil and gas industry.

Statement of accounting policies

For the year ended 31 December 2020

Predator Oil & Gas Holdings Plc ("the Company") and its subsidiaries (together "the Group") are engaged principally in a CO2 EOR operations and C02 sequestration business in the Republic of Trinidad and Tobago and maintaining an exploration and appraisal portfolio in Ireland and Morocco. The Company's ordinary shares are on the Official List of the UK Listing Authority in the Standard Listing section of the London Stock Exchange.

Predator Oil & Gas Holdings plc was incorporated in 2017 as a public limited company under Companies (Jersey) Law 1991 with registered number 125419. It is domiciled and registered at 3rd Floor, Standard Bank House, 47-49 La Motte Street, St Helier, Jersey, JE2 4SZ, Channel Islands.

Basis of preparation and going concern assessment

The principal accounting policies adopted in the preparation of the financial information are set out below. The policies have been consistently applied throughout the current year and prior year, unless otherwise stated. These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs and IFRIC interpretations) issued by the International Accounting Standards Board (IASB) as adopted by the European Union and with those parts of the Companies (Jersey) Law, 1991 applicable to companies preparing their accounts under IFRS. The Company has adopted the exemption under Companies (Jersey) Law 1991 Article 105 (11) not to prepare separate accounts.

The consolidated financial statements incorporate the results of Predator Oil & Gas Holdings Plc and its subsidiary undertakings as at 31 December 2020.

The financial statements are prepared under the historical cost convention on a going concern basis. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions that are recognised in assets, are eliminated in full. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases.

The preparation of financial statements requires an assessment on the validity of the going concern assumption. At the date of these financial statements the Directors expect that the Group will not require further funding for the Group's corporate overheads; Irish licence interests, Moroccan licence or for the further development of the CO2 EOR pilot project. Post the year end the Group raised £1.785 million gross through a Placing, to supplement funds required for drilling the MOU-1 well in Morocco in the event costs escalated due to COVID-related impositions and to provide additional working capital. The Directors are confident that the Group will be able to raise further funds as and when it considers appropriate to meet requirements over the course of the next 24 months, in cash, from the Group's share of production profits from Trinidad, through the return of US$1 million of the Guercif Bank Guarantee, as debt finance, joint venture or farminee partner equity, share issues or otherwise. Failing the success of these fund-raising activities the Directors will be prepared to accept appropriate reductions in their remuneration to conserve cash resources.

Change in Accounting Policies

At the date of approval of these financial statements, certain new standards, amendments and interpretations have been published by the International Accounting Standards Board but are not as yet effective and have not been adopted early by the Group. All relevant standards, amendments and interpretations will be adopted in the Group's accounting policies in the first period beginning on or after the effective date of the relevant pronouncement.

The Directors do not anticipate that the adoption of these standards and interpretations, or any of the amendments made to existing standards as a result of the annual improvements cycle, will have a material effect on the financial statements in the year of initial application.

Standards and amendments to existing standards effective 1 January 2020

- Amendments to References to the Conceptual Framework in IFRS Standards - effective 1 January 2020.

- Amendments to IAS 1 and IAS 8: Definition of Material - effective 1 January 2020.

These amendments do not have a material effect on the financial statements of the Group.

New Standards, amendments and interpretations effective after 1 January 2020 and have not been early adopted

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the financial statements are listed below. The Group and Company intend to adopt these standards, if applicable, when they become effective. These are summarised below:

Amendments to IAS 1: Classification of Liabilities as Current or Non-current: the amendments clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period, and refer to the "right" to defer settlement by at least twelve months. They make explicit that only rights in place "at the end of the reporting period" should affect the classification of a liability. The amendments clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability, and clarify that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services. Issued 23 January 2020, applies to accounting periods beginning on or after 1 January 2022, subject to EU endorsement.

Amendment to IAS 1: Classification of Liabilities as Current or Non-current - Deferral of Effective Date: the amendment defers the effective date of the January 2020 amendments to IAS 1 by one year to annual reporting periods beginning on or after 1 January 2023. Issued 15 July 2020, applies to accounting periods beginning on or after 1 January 2023 with early application of the January 2020 amendments permitted, subject to EU endorsement.

Amendments to IFRS 3: Business Combinations - reference to the Conceptual Framework: The changes in Reference to the Conceptual Framework (Amendments to IFRS 3) update IFRS 3 so that it refers to the 2018 Conceptual Framework instead of the 1989 Framework. They also add to IFRS 3 a requirement that, for transactions and other events within the scope of IAS 37 or IFRIC 21, an acquirer applies IAS 37 or IFRIC 21 (instead of the Conceptual Framework) to identify the liabilities it has assumed in a business combination. Lastly, they add to IFRS 3 an explicit statement that an acquirer does not recognise contingent assets acquired in a business combination. Issued 14 May 2020, applies for annual periods beginning on or after 1 January 2020, with early application permitted if an entity also applies all other updated references at the same time or earlier, subject to EU endorsement.

Annual Improvements to IFRS Standards 2018-2020: The pronouncement contains amendments to four International Financial Reporting Standards (IFRSs) as result of the IASB's annual improvements project:

· IFRS 1 First-time Adoption of International Financial Reporting Standards: subsidiary as a first-time adopter - The amendment permits a subsidiary that applies paragraph D16(a) of IFRS 1 to measure cumulative translation differences using the amounts reported by its parent, based on the parent's date of transition to IFRSs.

· IFRS 9 Financial Instruments - fees in the '10 per cent' test for derecognition of financial liabilities - The amendment clarifies which fees an entity includes when it applies the '10 per cent' test in IFRS 9 in assessing whether to derecognise a financial liability. An entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other's behalf.

· IFRS 16 Leases - Lease incentives - the amendment to Illustrative Example 13 accompanying IFRS 16 removes from the example the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives are illustrated in that example. Issued 14 May 2020, applicable for annual periods beginning on or after 1 January 2022 with early application permitted in respect of IFRS 1, IFRS 9, and IAS 41. The amendment to IFRS 16 only regards an illustrative example, so no effective date is stated. All subject to EU endorsement.

The Group has not early adopted any of the above standards and the directors are assessing the impact on future financial statements. There are no other IFRS or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Group.

Areas of estimates and judgement

The preparation of the Group's financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, actual results may ultimately differ from those estimates. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in the next financial year are discussed below:

a) Going concern

The Group's going concern is detailed above.

b) Recoverability of loan

The Group entered into an agreement with FRAM Exploration Trinidad Limited ("FRAM"), a wholly-owned subsidiary of Bahamas Petroleum Plc, who are listed on AIM.

The FRAM Loan is recovered from a share of revenues generated by FRAM from oil sales based on the production profile and oil price. At lower oil prices and lower production rates the loan will take longer to be recovered as their share of revenues will be lower. Under the legally binding WPA, Predator is entitled to its share of revenue earned from all oil sales made by FRAM until cost recovery of all Predator's costs, inclusive of the FRAM Loan, expended on the Project. Share of revenue is defined as sales from all oil barrels made by FRAM less agreed costs defined in the WPA.

Management have concluded that the loan remains recoverable and that there is no impairment required at the reporting date as the project is still in the early stages of production.

c) Useful lives of property, plant & equipment

Property, plant and equipment are depreciated over their useful economic lives. Useful economic lives are based on management's estimates of the period that the assets will be in operational use, which are periodically reviewed for continued appropriateness. More details, including carrying values, are included in note 10 to the financial statements.

d) Share based payments

The Group has applied the requirements of IFRS 2 Share-based Payment for all grants of equity instruments.

The Group operates an equity settled share option scheme for directors. The increase in equity is measured by reference to the fair value of equity instruments at the date of grant. The liabilities assumed under these arrangements convert into shares in the parent company, under an option arrangement. The fair value of the service received in exchange for the grant of options and warrants is recognised as an expense. Equity-settled share-based payments are measured at fair value (excluding the effect of non-market based vesting conditions) at the date of grant. The fair value determined at the grant date of equity-settled share-based payment is expensed on a graded vesting basis over the vesting period, based on the Group's estimate of shares that will eventually vest, and adjusted for the effect of non-market based vesting conditions.

During the year the Company issued warrants in lieu of fees to stockbrokers. The warrant agreements do not contain vesting conditions and therefore the full share-based payment charge, being the fair value of the warrants using the Black-Scholes model, has been recorded immediately. A charge was recorded against share premium as a transaction cost. The valuation of these warrants involves making a number of estimates relating to price volatility, future dividend yields and continuous growth rates (see Note 19).

The fair value of these share options is estimated by using the Black Scholes model on the date of grant based on certain assumptions. Those assumptions are described in note 19 and include, among others, the expected volatility and expected life of the options. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability exercise restrictions and behavioural considerations. The market price used in the model is the issue price of the Company's shares at the last placement of shares immediately preceding the calculation date. Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.

Where equity instruments are granted to persons or entities other than staff, the fair value of goods and services received is charged to profit or loss, except where it is in respect to costs associated with the issue of shares, in which case, it is charged to the share premium account.

The fair values calculated are inherently subjective and uncertain due to the assumptions made and the limitation of the calculations used. Further details of the specific amounts concerned are given in note 19.

Basis of consolidation

Where the Group has control over an investee, it is classified as a subsidiary. The Group controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control.

The consolidated financial statements present the results of the Company and its subsidiaries ("the Group") as if they formed a single entity. Inter-company transactions and balances between Group companies are therefore eliminated in full. Uniform accounting policies are applied across the Group.

The consolidated financial statements incorporate the results of business combinations using the acquisition method. In the statement of financial position, the acquirer's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date on which control ceases.

Financial assets

The Financial assets currently held by the Group and Company are classified as loans and receivables and cash and cash equivalents. These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue and are subsequently carried at amortised cost using the effective interest rate method less provision for impairment. The loans receivable from FRAM disclosed in note 12 are dependent on future oil production and are therefore outside of the scope of IFRS 9 Expected Credit Losses.

Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the Group will be unable to collect all of the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. For receivables, which are reported net, such provisions are recorded in a separate allowance account with the loss being recognised within administrative expenses in the statement of comprehensive income. On confirmation that the receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.

Cash and cash equivalents

These amounts comprise cash on hand and balances with banks. Cash equivalents are short term, highly liquid accounts that are readily converted to known amounts of cash. They include short-term bank deposits and short-term investments.

Any cash or bank balances that are subject to any restrictive conditions, such as cash held in escrow pending the conclusion of conditions precedent to completion of a contract, are disclosed separately as "Restricted cash". The security deposit is recognised within trade and other receivables in note 12.

There is no significant difference between the carrying value and fair value of receivables.

Derecognition

The Group derecognises a financial asset when the contractual rights to the cash flow from the asset expire, or it transfers the asset and substantially all the risk and rewards of ownership of the asset to another entity.

Financial liabilities

The Group's financial liabilities consist of trade and other payables (including short terms loans) and long term secured borrowings. These are initially recognised at fair value and subsequently carried at amortised cost, using the effective interest method. All interest and other borrowing costs incurred in connection with the above are expensed as incurred and reported as part of financing costs in profit or loss. Where any liability carries a right to convertibility into shares in the Group, the fair value of the equity and liability portions of the liability is determined at the date that the convertible instrument is issued, by use of appropriate discount factors.

Derecognition

The Group derecognises a financial liability when the obligations are discharged, cancelled or they expire.

Foreign currency

The functional currency of the Group and all of its subsidiaries is the British Pound Sterling.

Transactions entered into by the Group entities in a currency other than the currency of the primary economic environment in which it operates (the "functional currency") are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates ruling at the date of the statement of financial position. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are similarly recognised immediately in profit or loss, except for foreign currency borrowings qualifying as a hedge of a net investment in a foreign operation.

The exchange rates applied at each reporting date were as follows:

Investments in subsidiaries

The Group's investment in its subsidiaries are recorded at cost.

Plant and equipment

The only assets the Group currently has are personal computers.

Depreciation is provided on equipment so as to write off the carrying value of items over their expected useful economic lives. It is applied at the following rates:

Share options and Equity Instruments

Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than consultants, the fair value of goods and services received is charged to profit or loss, except where it is in respect to costs associated with the issue of shares, in which case, it is charged to the share capital or share premium account.

Taxation

The Company and all subsidiaries ('the Group') are registered in Jersey, Channel Islands and are taxed at the Jersey company standard rate of 0%. However, the Group's projects are situated in jurisdictions where taxation may become applicable to local operations.

The major components of income tax on the profit or loss include current and deferred tax.

Current tax

Current tax is based on the profit or loss adjusted for items that are non-assessable or disallowed and is calculated using tax rates that have been enacted or substantively enacted by the reporting date.

Tax is charged or credited to the statement of comprehensive income, except when the tax relates to items credited or charged directly to equity, in which case the tax is also dealt with in equity.

Deferred tax

Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the statement of financial position differs to its tax base, except for differences arising on:

• The initial recognition of an asset or liability in a transaction which is not a business combination and at the

time of the transaction affects neither accounting or taxable profit; and

• Investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the

reversal of the difference and it is probable that the differences will not reverse in the foreseeable future.

Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised.

The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when deferred tax liabilities/ (assets) are settled/ (recovered). Deferred tax balances are not discounted.

The Group currently does not hold any deferred tax asset or liability.

Notes to the financial statements

For the year ended 31 December 2020