Last checked at 17 Aug 2011 07:00
17 August 2011
TIGER RESOURCE FINANCE PLC
Interim Results for the six months ended 30 June 2011
CHAIRMAN'S STATEMENT
For the six months ended 30 June 2011
KEY POINTS
·; Net Asset Value per share at 30 June 2011 - 4.00p (2010 - 3.41p)
·; Total assets of £6.9M as at 30 June 2011 (2010 - £5.9M)
·; Tiger Board decision to proceed with Share Buyback through a Tender Offer at 3.75p per qualifying share
·; Tender Offer will be available in respect of a maximum of 50m shares equating to a capital return of £1,875,000
A difficult market in the first half of the year saw the Company reporting a pre tax profit of £106,639 (2010: £622,729), however some unrealised gains from earlier periods reversed following share price falls across the portfolio.
The market for all equities has been erratic in recent times with turmoil in world financial markets due to concerns, initially in some peripheral Euro currency countries, followed by concerns relating to the major Euro economies of Spain and Italy and downgrades in credit rating of the US. There has been a flight from risk and this has introduced the prospect of a double-dip recession, following the difficulties in 2008 post the collapse of Lehman Brothers.
There is a common perception that the share prices of a number of well managed companies, across the natural resource sector, with very strong asset backing and prospects have reached levels that appear to offer unprecedented value but caution needs to be exercised as downward pressure remains due to the unwinding of derivative positions and a reluctance of main stream funds to invest.
The natural resource sector in both oil and gas and minerals has seen significant re-ratings and in particular companies who have little or no production or are pre-development have suffered very substantial share price falls. In this environment management teams who have succeeded in the past and have the experience of dealing with these market setbacks will be a target for Tiger and we will work with these management teams to assist them to rebuild their valuations and share prices.
In the short term, as a result of discussions with shareholders and in an effort to align the net asset value of the Company to the share price, the Directors are proposing to launch a tender offer of up to 50m shares in the Company, representing approximately 28.97 per cent. of the Company's issued share capital (excluding Shares held in Treasury), at a price of 3.75p per share ("Tender Offer"). The Tender Offer will represent a capital return of up to £1,875,000. The formalities of this process are in train and the Directors hope to issue the Circular detailing the Tender Offer and containing a notice of general meeting to consider the necessary shareholder resolutions shortly, on the receipt of regulatory approval.
The Board is conscious that the market price of the Company's shares has long remained at a discount to the gross net asset value ("NAV") per share, despite the success of many of the Company's investments. Consequently, the Board has decided to give qualifying shareholders the opportunity to have some of their investment returned in cash by way of the Tender Offer process. This will result in shareholders receiving an enhanced value for a proportion of their shareholding, should they be prepared to tender their shares.
Once the Tender Offer is completed, the Board of Tiger will look to make strategic and directed investments into companies that have been oversold in the recent sell off and the Board believes that this correction will create opportunities to acquire quality investments at attractive price levels. Tiger is aware of the opportunities and is monitoring these closely, but will adopt a cautious approach and will focus on delivering and executing the Tender Offer, in the short term.
In the period under review the Company has invested in Aurum Mining and New World Oil and Gas, two investments that are seen as having good credentials to offer superior investment returns in the medium to long term.
The Board is conscious of utilising its resources to achieve high level returns and we will continue to explore all avenues to succeed in this regard.
BRUCE ROWAN
CHAIRMAN
17 August 2011
Portfolio Holdings as at 30 June 2011
Investments | Number | Cost | Valuation |
30/06/2011 | 30/06/2011 | 30/06/2011 | |
£ | £ | ||
African Eagle Resources plc | 1,241,174 | 112,264 | 124,117 |
Aurum Mining plc | 8,333,333 | 250,218 | 291,667 |
Ascent Resources plc | 9,642,857 | 400,824 | 318,214 |
Dominion Petroleum Ltd | 2,400,000 | 158,880 | 87,120 |
ETFS Physical Platinum | 2,250 | 245,704 | 237,037 |
In-Solve plc | 625,000 | 37,500 | 31,250 |
Nautical Petroleum plc | 136,502 | 54,601 | 427,251 |
New World Oil and Gas plc | 5,000,000 | 250,218 | 312,500 |
Northern Petroleum plc | 294,118 | 250,000 | 232,353 |
Sovereign Mines of Africa plc | 2,000,000 | 100,000 | 210,000 |
Sunrise Resources plc | 665,000 | 6,650 | 18,753 |
Tertiary Minerals plc | 1,330,000 | 119,700 | 103,075 |
U308 Holdings plc | 4,166,666 | 125,000 | 38,750 |
Vatukoula Gold Mines plc | 150,000 | 112,500 | 141,375
|
2,224,059 | 2,573,462 |
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2011
(Unaudited) Six months ended 30 June 11 | (Unaudited) Six months ended 30 June 10
| (Audited) Year ended 31 Dec 10
| |
£ | £ | £ | |
Profit/(loss) on sale of available for sale assets | 304,696 | 790,974 | 1,528,858 |
Income: | |||
Investment income | 447 | 2,697 | 3,168 |
Interest receivable | 8,639 | 7,457 | 15,818 |
Administrative expenses | (207,143) | (178,409) | (364,484) |
Impairment | - | - | (8,736) |
| |||
PROFIT/(LOSS) BEFORE TAXATION | 106,639 | 622,719 | 1,174,624 |
Taxation | (30,000) | (186,816) | (158,489) |
PROFIT/(LOSS) FOR THE PERIOD | 76,639 | 435,903 | 1,016,135 |
Other Comprehensive Income
Available-for-sale financial assets
| |||
Unrealised (losses)/gains | (882,829) | 386,191 | 1,662,826
|
Reclassification to profit or loss | (298,189) | (866,160) | (880,696) |
Tax relating to components of | |||
other comprehensive income | 330,685 | 134,392 | (218,995) |
OTHER COMPREHENSIVE INCOME AND EXPENSE FOR THE PERIOD, NET OF TAX |
(850,333) |
(345,577) |
563,135 |
TOTAL COMPREHENSIVE INCOME AND EXPENSE FOR THE PERIOD |
(773,694) |
90,326 |
1,579,270 |
| |||
Basic earnings per share | 0.04p | 0.25p | (0.59)p |
Diluted earrings per share | 0.04p | 0.24p | (0.57)p |
All profits are derived from continuing operations.STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2011
(Unaudited) 30 June 11 | (Unaudited) 30 June 10 | (Audited) 31 Dec 10
| |
£ | £ | £ | |
NON CURRENT ASSETS | |||
Financial assets | |||
Available-for-sale investments | 2,573,661 | 2,325,462 | 3,453,633 |
CURRENT ASSETS | |||
Trade and other receivables | 12,879 | 17,403 | 16,639 |
Other debtors | - | 938 | - |
Cash and cash equivalents | 4,336,972 | 3,835,432 | 4,535,506 |
4,349,851 | 3,853,773 | 4,552,145 | |
TOTAL ASSETS | 6,923,512 | 6,179,235 | 8,005,778 |
EQUITY AND LIABILITIES | |||
EQUITY ATTRIBUTABLE TO SHAREHOLDERS | |||
Share capital | 1,770,719 | 2,020,719 | 2,020,719 |
Share premium | 1,557,831 | 1,557,831 | 1,557,831 |
Other components of equity | 979,848 | 541,350 | 1,580,181 |
Retained earnings | 2,292,428 | 1,765,674 | 2,215,789 |
TOTAL EQUITY | 6,600,826 | 5,885,574 | 7,374,520 |
NON CURRENT LIABILITES | |||
Deferred tax liabilities | 97,115 | 74,413 | 427,800 |
CURRENT LIABILITIES | |||
Trade and other payables | 38,694 | 32,432 | 46,581 |
Corporate tax payable | 186,877 | 186,816 | 156,877 |
225,571 | 219,248 | 203,458 | |
TOTAL LIABILITIES | 322,686 | 293,661 | 631,258 |
TOTAL EQUITY AND LIABILITIES | 6,923,512 | 6,179,235 | 8,005,778 |
STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2011
Other components of equity
Share capital | Share premium | Capital redemption reserve | Other reserves | Available-for-sale financial assets | Share based reserves | Retained earnings | Total
| |
£ | £ | £ | £ | £ | £ | £ | £ | |
As at 1 January 2010 | 2,020,719 | 1,557,831 | 350,000 | (208,805) | 745,733 | 130,118 | 1,199,654 | 5,795,250 |
Changes in equity | ||||||||
Available-for-sale financial assets | ||||||||
Current period gains (losses) | - | - | - | - | 386,191 | - | - | 386,191 |
Reclassification to profit or loss | - | - | - | - | (866,160) | - | - | (866,160) |
Tax relating to components of other comprehensive income | - | - | - | 134,392 | - | - | - | 134,392 |
Profit (loss) for the period | - | - | - | - | - | - | 435,901 | 435,901 |
Total comprehensive income and expense for the period | - | - | - | 134,392 | (479,969) | - | 435,901 | 90,324 |
As at 30 June 2010 | 2,020,719 | 1,557,831 | 350,000 | (74,413) | 265,764 | 130,118 | 1,635,555 | 5,885,574 |
Changes in equity | ||||||||
Available-for-sale financial assets | ||||||||
Current period gains (losses) | - | - | - | 1,276,635 | - | - | 1,276,635 | |
Reclassification to profit or loss | - | - | - | (14,536) | - | - | (14,536) | |
Tax relating to components of other comprehensive income | - | - | - | (353,387) | - | - | - | (353,387) |
Profit (loss) for the period | - | - | - | - | - | - | 580,234 | 580,234 |
Total comprehensive income and expense for the period | (353,387) | 1,262,099 | - | 580,234 | 1,488,946 | |||
As at 31 Dec 2010 | 2,020,719 | 1,557,831 | 350,000 | (427,800) | 1,527,863 | 130,118 | 2,215,789 | 7,374,520 |
Changes in equity | ||||||||
Available-for-sale financial assets | ||||||||
Current period gains (losses) | - | - | - | - | (882,829) | - | - | (882,829) |
Reclassification to profit or loss | - | - | - | - | (298,189) | - | - | (298,189) |
Tax relating to components of other comprehensive income | - | - | - | 330,685 | - | - | - | 330,685 |
Profit (loss) for the period | - | - | - | - | - | - | 76,639 | 76,639 |
Cancellation of shares held in treasury | (250,000) | - | 250,000 | - | - | - | - | - |
Total comprehensive income and expense for the period | (250,000) | - | 250,000 | 330,685 | (1,181,018) | - | 76,639 | (773,694) |
As at 30 June 2011 | 1,770,719 | 1,557,831 | 600,000 | (97,115) | 346,845 | 130,118 | 2,292,428 | 6,600,826 |
CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2011
(Unaudited) 30 June 11 | (Unaudited) 30 June 10 | (Audited) 31 Dec 10 | |
£ | £ | ||
CASH FLOW FROM OPERATIONS | |||
Profit/(loss) before taxation | 106,639 | 622,719 | 1,174,624 |
(Increase)/Decrease in receivables | 3,560 | (4,479) | (1,735) |
Increase/(Decrease) in payables | (7,887) | (15,470) | (2,846) |
Adjustment for (profit)/loss on sale of available for sale assets | (304,696) | (790,754) | (1,520,122) |
NET CASH OUTFLOW FROM OPERATING ACTIVITIES
| (202,384) | (187,984) | (350,079) |
TAXATION PAID
| - | - | - |
CASH FLOW FROM INVESTING ACTIVITIES | |||
Sale of assets available for sale | 664,455 | 1,445,781 | 2,310,129 |
Purchase of assets available for sale | (660,605) | (891,833) | (894,012) |
Adjustment for additional investment income | - | - | - |
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES
| 3,850 | 553,948 | 1,416,117 |
CASH FLOW FROM FINANCING ACTIVITIES | |||
NET CASH OUTFLOW FROM INVESTING ACTIVITIES | - | ||
Net increase/(decrease) in cash and cash equivalents in the period | (198,534)
| 365,964 | 1,066,038 |
Cash and cash equivalents at the beginning of the period | 4,535,506 | 3,469,468 | 3,469,468 |
Cash and cash equivalents at the end of the period | 4,336,972 | 3,835,432 | 4,535,506 |
Interim Report - Notes | ||||
1 | The financial information for the six months ended 30 June 2011 and 30 June 2010 is unaudited. The interim accounts have been prepared using the same accounting policies that were used in the Group's statutory accounts to 31 December 2010. In the opinion of the directors the financial information for these periods represents fairly the financial position, operations and cash flows for the period in conformity with International Financial Reporting Standard (IFRS). The interim statement for the six months ended 30 June 2011 was approved by the directors on 12 August 2011. | |||
2 | The financial information for the year ended 31 December 2010 does not constitute full accounts, it is an extraction from the Company's accounts for the year in which they have been delivered to the Registrar of Companies and on which the auditors gave an unqualified report. | |||
3 | Earnings per ordinary share included in the Income Statement and the NAV calculation is based on weighted average number of shares of 172,571,939. | |||
4 | Copies of this interim report are available to the public, free of charge, from 4th Floor, 2 Cromwell Place, London SW7 2JE, during normal office hours. A copy will also be posted on Tiger Resource Finance plc's website www.tiger-rf.com. | |||