Last checked at 20 Aug 2012 07:00
PATERNOSTER RESOURCES PLC
"Paternoster" or the "Company"
Unaudited results for the 6 months ended 30 June 2012
Paternoster is pleased to announce its unaudited interim results for the six months ended 30 June 2012.
Chairman's review
Paternoster has made an excellent start to the year recording a profit before taxation of £1,856,334 for the six months to 30 June 2012 (30 June 2011: loss of £308,810). Net assets as at 30 June 2012 amounted to £3,092,265 (30 June 2011: £690,614). Of the Company's net assets, £2,433,734 were represented by cash as a result of the successful realisation of investments.
Despite the recent increase in the Company's share price, I do not believe it reflects these outstanding results and the Company continues to trade at a significant discount to its underlying net assets, the majority of which comprise cash.
The reasons for this seem to be a general lack of liquidity in the small company sector and the absence of a constant deal flow that seems to be a requirement of certain investors. Paternoster is in an extremely enviable position having an excellent track record of investment and realisation and significant cash balances.
We are constantly reviewing a range of opportunities but are only prepared to invest in those that have scope for very significant upside and a level of downside protection - this requirement necessarily slows the rate of investment but for good reason.
The Company has made two investments in the last six months. Astar Minerals plc has a strong position in the North American aggregates market and represents an excellent platform for future expansion. Bison Energy Services Limited owns deposits of frac sand which are extremely sought after in the fast growing North American fracking industry as there is limited supply of such material that is key to the industry. We are also actively working with the Company's other two investments, Brady Exploration plc and Leed Resources plc in order to deliver value to shareholders.
We are very confident that the successes to date can be replicated going forward and that your Company has a very exciting future ahead.
The key performance indicators are set out below.
COMPANY STATISTICS | 30 June 2012 | 31 December 2011 | Change % |
Net asset value | £3,092,265 | £2,168,091 | +43% |
Net asset value - fully diluted per share | 0.499p | 0.355p | +41% |
Closing share price | 0.28p | 0.50p | -44% |
Share price premium to net asset value | - | 41% | - |
Market capitalisation | £1,618,000 | £3,054,000 | -47% |
N Lee
Chairman
20 August 2012
For more information please contact:
Paternoster Resources Plc: +44 (0) 20 7580 7576
Nicholas Lee, Chairman
Nominated Adviser and Joint Broker: +44 (0) 20 7601 6100
Westhouse Securities
Antonio Bossi/Paul Gillam
Joint Broker: +44 (0) 20 7562 3351
Peterhouse Corporate Finance
Jon Levinson
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2012
Unaudited 6 months ended 30 June 2012 | Unaudited 6 months ended 30 June 2011 | Audited Year ended 31 December 2011 | |
£ | £ | £ | |
Profit on disposal of investments | 1,962,124 | - | - |
Administration expenses | (106,886) | (305,240) | (392,423) |
Operating profit/(loss) | 1,855,238 | (305,240) | (392,423) |
Finance income | 1,096 | - | 876 |
Profit/(loss) before taxation | 1,856,334 | (305,240) | (391,547) |
Taxation | - | - | 1,391 |
Profit/(loss) for the period from continuing operations | 1,856,334 | (305,240) | (390,156) |
Loss for the period from discontinued operations | - | (3,570) | (3,570) |
Profit/(loss) for the period | 1,856,334 | (308,810) | (393,726) |
Basic earnings/(loss) per share | |||
Continuing operations | 0.32p | (0.87p) | (0.11p) |
Discontinued operations | 0.00p | (0.01p) | 0.00p |
Total basic earnings/(loss) per share | 0.32p | (0.88p) | (0.11p) |
Diluted earnings/(loss) per share | |||
Continuing operations | 0.30p | (0.87p) | (0.11p) |
Discontinued operations | 0.00p | (0.01p) | 0.00p |
Total diluted earnings/(loss) per share | 0.30p | (0.88p) | (0.11p) |
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2012
Unaudited 6 months ended 30 June 2012 | Unaudited 6 months ended 30 June 2011 | Audited Year ended 31 December 2011 | |
£ | £ | £ | |
Profit/(loss) for the period | 1,856,334 | (308,810) | (393,726) |
Movement in investment reserve | (951,370) | - | 1,085,573 |
Exchange differences on translating foreign operations | - | (370) | - |
Total comprehensive income/(expense) for the period | 904,964 | (308,440) | 691,847 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2012
| Called up share capital | Share premium account | Investment reserve | Other reserves |
Retained deficit |
Total equity |
£ | £ | £ | £ | £ | ||
Balance at 1 January 2011 | 3,285,796 | 1,852,339 | - | 27,000 | (5,161,091) | 4,0744 |
Loss for the year | - | - | - | - | (393,726) | (393,726) |
Other comprehensive income: | ||||||
Movement in investment reserve | - | - | 1,085,573 | - | - | 1,085,573 |
Total comprehensive income for the year | - | - | 1,085,573 | - | (393,726) | 691,847 |
Issue of share capital | 545,000 | 1,005,000 | - | - | - | 1,550,000 |
Share issue costs | - | (82,490) | - | - | - | (82,490) |
Share based payment costs | - | - | - | 4,690 | - | 4,690 |
Transactions with owners | 545,000 | 922,510 | - | 4,690 | - | 1,472,200 |
Balance at 31 December 2011 | 3,830,796 | 2,774,849 | 1,085,573 | 31,690 | (5,554,817) | 2,168,091 |
Profit for the period | - | - | - | - | 1,856,334 | 1,856,334 |
Other comprehensive income: | ||||||
Movement in investment reserve | - | - | (951,370) | - | - | (951,370) |
Total comprehensive income for the year | - | - | (951,370) | - | 1,856,334 | 904,964 |
Share based payments costs | - | - | - | 19,210 | - | 19,210 |
Balance at 30 June 2012 | 3,830,796 | 2,774,849 | 134,203 | 70,109 | (3,698,483) | 3,092,265 |
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2012
Unaudited 6 months ended 30 June 2012 | Unaudited 6 months ended 30 June 2011 | Audited Year ended 31 December 2011 | |
£ | £ | £ | |
ASSETS | |||
Non-current assets | |||
Available for sale investments | 629,447 | - | 1,760,086 |
Total non-current assets | 629,447 | - | 1,760,086 |
Current assets | |||
Trade and other receivables | 94,533 | 18,867 | 85,170 |
Cash and cash equivalents | 2,433,734 | 730,693 | 375,659 |
Total current assets | 2,528,267 | 749,560 | 460,829 |
Total assets | 3,157,714 | 749,560 | 2,220,915 |
LIABILITIES | |||
Current liabilities | |||
Trade and other payables | 65,449 | 58,946 | 52,824 |
Total current liabilities | 65,449 | 58,946 | 52,824 |
Net assets | 3,092,265 | 690,614 | 4,044 |
EQUITY | |||
Share capital | 3,830,796 | 452,858 | 3,830,796 |
Share premium account | 2,774,849 | 2,427,349 | 2,774,849 |
Capital redemption reserve | 27,000 | 27,000 | 27,000 |
Investment reserve | 134,203 | - | 1,085,573 |
Share option reserve | 23,900 | - | 4,690 |
Translation reserve | - | 370 | - |
Retained losses | (3,698,483) | (5,469,901) | (5,554,817) |
Total equity | 3,092,265 | 690,614 | 2,168,091 |
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2012
| Unaudited 6 months ended 30 June 2012 | Unaudited 6 months ended 30 June 2011 | Audited Year ended 31 December 2011 |
£ | £ | £ | |
Cash flows from operating activities | |||
Profit/(loss) before taxation - continuing operations | 1,856,334 | (305,240) | (391,547) |
Loss before taxation - discontinued operations | (3,570) | (3,570) | (3,570) |
Profit on disposal of investments | (1,962,124) | - | - |
Share based payment expense | 19,210 | - | 4,690 |
Interest receivable | (1,096) | - | (876) |
Increase in trade and other receivables | (9,363) | (10,289) | (76,592) |
Increase in trade and other payables | 12,625 | 11,951 | 5,829 |
(84,414) | (306,778) | (462,066) | |
Tax received | - | - | 1,391 |
Net cash used by operating activities | (84,414) | (306,778) | (460,675) |
Cash flows from investing activities | |||
Purchase of investments | (300,000) | - | (674,513) |
Proceeds from disposal of investments | 2,441,393 | - | - |
Interest received | 1,096 | - | 876 |
Net cash from investing activities | 2,142,489 | - | (673,637) |
Cash flows from financing activities | |||
Issue of shares | - | 1,050,000 | 1,550,000 |
Share issue expenses | - | (54,990) | (82,490) |
Net cash generated from financing activities | - | 995,010 | 1,467,510 |
Net increase in cash and cash equivalents | 2,058,075 | 688,232 | 333,198 |
Cash and cash equivalents at beginning of period | 375,659 | 42,461 | 42,461 |
Cash and cash equivalents at end of period | 2,433,734 | 730,693 | 375,659 |
NOTES TO THE INTERIM REPORT
1. The financial information set out in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The group's statutory financial statements for the period ended 31 December 2011, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The interim financial information has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) and on the same basis and using the same accounting policies as used in the financial statements for the year ended 31 December 2011. The interim financial statements have not been audited or reviewed in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.
The financial statements have been prepared on a going concern basis under the historical cost convention.
The Directors believe that the going concern basis is appropriate for the preparation of the financial statements as the Company is in a position to meet all its liabilities as they fall due.
2. The calculation of basic and diluted earnings per share is based on the profit for the period of £1,837,125 (2011: loss £308,810) and a weighted average number of ordinary shares of 577,857,956 (2011: 35,080,331).
3. No interim dividend will be paid.
4. Copies of the interim report can be obtained from: The Company Secretary, Paternoster Resources plc, 31, Harley Street, London W1G 9QS and are available to view and download from the Company's website : www.paternosterresources.com