22 Dec 2008 07:00
BioEnergy Africa Ltd / Index: AIM / Epic: BAL / Sector: Renewable Energy
22 December 2008
BioEnergy Africa Ltd ('BioEnergy Africa' or 'the Company')
Interim Results
BioEnergy Africa Ltd, the AIM listed company formed to develop the production of ethanol from sugar cane projects in southern Africa, announces its results for the six months ended 30 September 2008.
Chairman's Statement
In September 2008 we were successfully admitted to trading on AIM having raised £8.6 million through the issue of 68,825,600 new Ordinary Shares at 12.5 pence. I believe this in itself was a considerable achievement taking into account the general economic climate.
I am pleased to report that considerable progress has been made in spite of the current market conditions, on both a corporate and operational level and I am pleased to provide the following update on our activities to date.
Our initial focus is the development of the Massingir Fuel Ethanol Project in south eastern Massingir District in the Gaza Province of Mozambique. Under the terms of the investment agreement signed with the Government of Mozambique, ProCana (our 94% owned subsidiary) is entitled to develop the 30,000ha project, which includes 26,500ha of planted sugar cane with rotating soya crops, an ethanol from sugarcane plant, a bagasse electricity facility, new transport infrastructures and an 11,000ha out-grower scheme. ProCana has also secured guarantees from the Mozambican government to enable it to use up to 750 million m³ of water per annum, sourced from the nearby Massingir Dam, in order to irrigate the entire project and also improve the quality of the land in the surrounding area to the benefit of the local population.
Work has commenced to clear the land designated for the cane nursery, and we have planted a limited amount of seed cane with a drip irrigation system. We are also currently in the process of conducting an extensive training programme for local employees and communities on best agricultural practice, for example water conservation and fertilisers.
In addition to the operational developments that we have made since listing, we have added to our management team and Board, recruiting industry professionals with experience in our area of operation. At the beginning of this month we appointed Nick Brooks as Chief Executive Officer and Jorge Neves as Executive Director. I am confident that we have a strong team for the development of the Massingir Project and I look forward to benefiting from their insight and expertise in the future. We also announced that, with effect from 5 January 2009, Ashwin Rana would be joining the Board as Chief Operations Officer. Ashwin, although remaining involved in the business, is now to not joining the Board.
In summary, we have achieved a great deal in the short period of time since listing on AIM, both in terms of the development of our initial Massingir Fuel Ethanol project and also the building and strengthening of a team orientated to developing such a project. However, we are in a period of great economic uncertainty and cognisant of the global situation, we are taking all steps to ensure we drive value and protect our shareholders. It is important for us to evolve with the times and as such we are constantly looking at our development programmes to ensure they are relevant to the economic environment.
Finally, I'd like to thank all those involved in the Company for their hard work.
Phil Edmonds
Chairman
22 December 2008
** ENDS **
For further information please visit www.bioenergy-ltd.com or contact:
| Phil Edmonds | BioEnergy Africa Plc | Tel: 0845 108 6060 |
| Jonathan Wright | Seymour Pierce Ltd | Tel: 020 7107 8000 |
| Sarah Jacobs | Seymour Pierce Ltd | Tel: 020 7107 8000 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
| Susie Callear | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
Unaudited Income Statement
For the six month period to 30 September 2008
| 30.9.08 | 27.4.07 to 30.9.07 | |||
| USD'000 | USD'000 | |||
| Revenue | - | - | ||
| Operating expenses | (944) | - | ||
| Operating loss | (944) | - | ||
| Finance income | 330 | - | ||
| Finance expenses | - | - | ||
| Net financing income | 330 | - | ||
| Loss before taxation | (614) | - | ||
| Income tax expense | - | - | ||
| Loss for the period | (614) | - | ||
| Attributable to: | ||||
| - Equity holders of the Company | (614) | - | ||
| - Minority interest | - | - | ||
| Loss for the period | (614) | - | ||
| Loss per share | ||||
| - Basic (cents) | (0.5) | - | ||
| - Diluted (cents) | (0.5) | - |
Unaudited Statement of Recognised Income and Expense
For the six month period to 30 September 2008
| Six months ended 30.9.08 | 27.4.07 to 30.9.07 | |||
| USD'000 | USD'000 | |||
| Foreign exchange translation differences | (215) | - | ||
| Net income recognised directly in equity | (215) | - | ||
| Loss for the period | (614) | - | ||
| Total recognised income and expense for the period | (829) | - | ||
| Attributable to: | ||||
| - Equity holders of the Company | (816) | - | ||
| - Minority interest | (13) | - | ||
| Total recognised income and expense for the period | (829) | - |
Unaudited Balance Sheet
As at 30 September 2008
| 30.09.08 | 31.03.08 | |||
| USD'000 | USD'000 | |||
| ASSETS | ||||
| Non-current assets | ||||
| Property, plant and equipment | 1,968 | - | ||
| Intangible assets | 49,904 | - | ||
| Total non-current assets | 51,872 | - | ||
| Current assets | ||||
| Trade and other receivables | 1,981 | - | ||
| Cash and cash equivalents | 25,408 | - | ||
| Total current assets | 27,389 | - | ||
| TOTAL ASSETS | 79,261 | - | ||
| LIABILITIES | ||||
| Current liabilities | ||||
| Trade and other payables | 222 | - | ||
| Loans from related parties | 4,901 | - | ||
| Total current liabilities | 5,123 | - | ||
| TOTAL LIABILITIES | 5,123 | - | ||
| NET ASSETS | 74,138 | - | ||
| EQUITY | ||||
| Issued capital | 72,134 | - | ||
| Translation reserve | (202) | - | ||
| Accumulated losses | (614) | - | ||
| Total equity attributable to equity holders of the Company | 71,318 | - | ||
| Minority interest | 2,820 | - | ||
| TOTAL EQUITY | 74,138 | - |
Unaudited Cash Flow Statement
For the six month period to 30 September 2008
| Six months ended 30.9.08 | 27.4.07 to 30.9.07 | ||||
| USD'000 | USD'000 | ||||
| OPERATING ACTIVITIES | |||||
| Loss before tax | (614) | - | |||
| Adjustments for: | |||||
| - Net interest costs/(income) | (330) | - | |||
| Unrealised exchange rate loss | 939 | - | |||
| Cash used in operations | (5) | - | |||
| Interest received | 330 | - | |||
| Net cash generated from operating activities | 325 | - | |||
| INVESTING ACTIVITIES | |||||
| Purchase of intangible assets | (532) | - | |||
| Purchase of property, plant and equipment | (186) | - | |||
| Cash held by subsidiary acquired | 333 | - | |||
| Net cash used in investing activities | (385) | - | |||
| FINANCING ACTIVITIES | |||||
| Proceeds from issue of share capital | 28,046 | - | |||
| Proceeds of borrowings from related parties | 302 | ||||
| Share issue costs | (1,943) | - | |||
| Net cash flow from financing activities | 26,405 | - | |||
| Net increase in cash and cash equivalents | 26,345 | - | |||
| Cash and cash equivalents at start of the period | - | - | |||
| Exchange rate adjustments | (937) | - | |||
| Cash and cash equivalents at end of the period | 25,408 | - |
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION
1. General information
BioEnergy Africa Limited ('BEA' or 'the Company') (formerly known as Southern Africa Energy Limited) and its subsidiary (together the 'Group') is in the business to develop the production of ethanol from sugar cane projects in southern Africa. BEA is a limited company incorporated and domiciled in the British Virgin Island. The address of its registered office is Romasco Place, Wickhams Cay 1, PO Box 3140, Road Town, Tortola, British Virgin Islands, VG1110. The Company's principle place of business is Av 24, Julho 2016, Maputo, Mozambique.
The Company has its primary listing on the Alternative Investment Market ('AIM') of London Stock Exchange plc.
This condensed consolidated financial information for the separate interim period ended 30 September 2008 was approved for issue on 19 December 2008.
These interim financial statements do not constitute statutory accounts of the Group within the meaning of Section 240 of the Companies Act 1985. As the Group formally commenced operations on 12 August 2008, the first audited financial statements shall be produced for the period ended 31 March 2009.
2. Basis of preparation
The consolidated financial results of the Group for the six months ended 30 September 2008 have been prepared in accordance with the recognition and measurement criteria for IFRS as adopted by the European Union, IFRIC interpretations and the Companies Act 1985 with the exception of IAS 34 'Interim financial reporting' which AIM quoted companies need not comply with.
The consolidated financial statements have been prepared under the historical cost convention.
3. Capital commitments and other contractual arrangements
| 30.09.08 | 31.03.2008 | ||
| USD'000 | USD'000 | ||
| Capital expenditure contracted for but not provided in the financial statements | 10 | - |
4. Business combination
On 12 August 2008, the Company acquired 94% of the share capital of Procana Limitada, a Mozambique entity developing facilities to produce ethanol from sugar cane, for consideration of 185,180,000 shares.
Details of net assets acquired are as follows:
| USD'000 | |||
| Purchase consideration | |||
| Fair value of shares issued | 44,385 | ||
| Fair value of assets acquired | (44,385) | ||
| Goodwill | - |
The fair value of shares issued was based on the placing price of 12.5p translated at the exchange rate ruling on completion.
The assets and liabilities arising from the acquisition, provisionally determined, are as follows:
| Fair Value | Acquirer's carrying Amount | ||
| USD'000 | USD'000 | ||
| Cash and cash equivalents | 333 | 333 | |
| Trade and other receivables | 191 | 191 | |
| Property, plant and equipment | 1,775 | 1,775 | |
| Intangible assets | 49,559 | 766 | |
| Loans payable to former shareholders | (4,599) | (4,599) | |
| Trade and other payables | (41) | (41) | |
| Net assets acquired | 47,218 | (1,575) | |
| 94% of fair value | 44,385 |