20 May 2008 14:48
20 May 2008 AIM:CSH
CASPIAN HOLDINGS Plc
("Caspian" or the "Company")
PRELIMINARY RESULTS FOR YEAR ENDED 31st DECEMBER 2007
Caspian Holding Plc, ("Caspian" or "the Company"), the oil and gas exploration Company, announces its preliminary results for the year ended 31st December 2007.
Highlights
Reduced loss after taxation of £1,570,595 (2006:£3,412,588)
Core operations base in Zhengeldy was built on and new office in Atyrau was opened, all of which have contributed to the reduction in losses after tax
Revenue for the period was £0.8m (2007 Revenue £1.5m). The Company was adversely affected by a suspension in exports by the Kazakhstan government in April 2008. However, the Company has submitted the Development Report required by the Ministry in Kazakhstan to restart production at Zhengeldy.
Post year end Highlights
Expansion into the USA via significant oil lease agreement with Vittorino Serri
Michael Masterman, CEO of Caspian Holdings commented: "There's no doubt that the Company has gone through a difficult year. However, we have now streamlined our operations in Kazakhstan and have submitted the Development Report which will hopefully allows us to restart exports. Meanwhile, we announced our move into the USA in April, through a lease agreement with Vittorino Serri. This has widened our geographic reach and allowed us to capitalise on a highly prospective oil project, which we believe in the long term has the potential to provide our shareholders with value. "
-Ends-
Chairman's Statement and extracts from the Financial Statements follow.
Enquiries:
| Caspian Holdings Plc | Grant Thornton Corporate Finance | Hoodless Brennan | Parkgreen Communications |
| Michael Masterman | Fiona Owen | Luke Cairns | Ana Ribeiro / Justine Howarth |
| T: +44 (0) 7791 288381 | T: +44 (0) 20 7383 5100 | T: +44 (0) 20 7538 1166 | T: +44 (0) 20 7851 7480 |
| www.caspianoil.co.uk |
CHAIRMAN'S STATEMENT
2007 has proved to be a difficult year for Caspian Holdings Plc.
On the operations front our objective was to achieve stable production without drilling new wells and to achieve a significant reduction in operating costs to put the Zhengeldy operation on a more secure financial footing. Very significant progress has been made on streamlining costs and in reducing operating losses. A very lean core operations base built in Zhengeldy and a small office in Atyrau is now in place. Production for the year 2007 decreased from 2006 reflecting the stabilization of production rates following the heavy new well drilling programs in 2005 and 2006.
On the sales and marketing front the company was adversely affected by a suspension in exports in April 2007 though the Company continued to sell its oil domestically. This contributed to the reduction in revenue from £1.5m to £0.8m in 2007. The supervision on the Development Report required by the Ministry to restart production has now been submitted and we are working intensively to gain the necessary approvals to restart export. To support exports a new export facility was completed at Karsak. Given the slow progress in resolving some of the regulatory issues we deemed it prudent to suspend production from the field in early 2008.
On the new project front good progress has been made and the objective of the company is to establish operations outside Kazakhstan in 2008.
The 2007 Financials show a reduced loss after taxation of £1,570,595 compared to £3,412,588 in the previous year. This includes a further write down of £326,998 in goodwill.
In closing I would like to thank the Directors and the management for their efforts during the year in particular Mariyam Musrepova, Michael Garland and Dietmar Greil. Andrew Robinson retired as a director in September 2007 and we thank him for his contribution.
With record high oil prices, a sold cost base for Zhengeldy to restart production and exports and new growth opportunities we hope that 2008 will be a more rewarding year.
EVENTS SINCE THE BALANCE SHEET DATE
The Company drew down an additional £100,000 from its Credit Facility Agreement. An additional £200,000 is available for drawdown in a third tranche approved by noteholders.
As noted above production from Zhengeldy was suspended in February 2008.
CASPIAN HOLDINGS Plc
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2007
| Notes | 2007 unaudited | 2006 | ||||
| REVENUE | 2 | 820,798 | 1,508,015 | |||
| Cost of sales | (1,000,222) | (936,578) | ||||
| GROSS PROFIT/(LOSS) Administrative expenses | 4 | (179,424) (1,708,922) | 571,437 (3,289,610) | |||
| OPERATING LOSS | (1,888,346) | (2,718,173) | ||||
| Exchange gains/(losses) in year Adjustment in fair values of fixed assets Provisions created in period | 354,858 - 5,104 | (595,594) (52,864) (88,795) | ||||
| Finance income Finance costs | 5 5 | 16,689 ( 58,900) | 57,648 (14,810) | |||
| LOSS BEFORE TAX | 6 | (1,570,595) | (3,412,588) | |||
| Tax | 7 | - | - | |||
| RETAINED LOSS FOR THE FINANCIAL YEAR | 21 | £(1,570,595) | £(3,412,588) | |||
| Basic and diluted loss per share | 9 | 1.60p | 3.60p | |||
CASPIAN HOLDINGS Plc
GROUP BALANCE SHEET
31 DECEMBER 2007
| Notes | 2007 unaudited | 2006 | |||
| ASSETS NON-CURRENT ASSETS | |||||
| Goodwill Intangible assets | 10 11 | - 195,138 | 326,998 528,327 | ||
| Property, plant and equipment | 12 | 3,209,092 | 3,196,870 | ||
| 3,404,230 | 4,052,195 | ||||
| CURRENT ASSETS | |||||
| Inventories | 13 | 197,021 | 296,268 | ||
| Trade and other receivables | 14 | 560,265 | 767,890 | ||
| Cash and cash equivalents | 15 | 83,254 | 200,652 | ||
| 840,540 | 1,264,810 | ||||
| LIABILITIES CURRENT LIABILITIES Trade and other payables Financial liabilities - borrowings Interest bearing loans and borrowings Provisions | 16 17
18 | 441,594 76,983
61,439 580,016 | 519,797 1,753
108,186 629,736 | ||
| NET CURRENT ASSETS | 260,524 | 635,074 | |||
| NON CURRENT LIABILITIES Trade and other payables Financial liabilities - borrowings Interest bearing loans and borrowings |
16 17 |
93,913
699,976 793,889 |
98,728 - 98,728 | ||
| NET ASSETS | £2,870,865 | £4,588,541 | |||
| SHAREHOLDERS EQUITY Called up share capital | 20 | 98,699 | 98,699 | ||
| Share premium account | 21 | 9,474,645 | 9,474,645 | ||
| Revaluation reserve Translation reserve Profit and loss account | 21 21 21 | 26,334 29,700 (6,705,371) | 24,945 183,370 (5,193,118) | ||
| Minority Interest | 22 | (53,142) | - | ||
| £2,870,865 | £4,588,541 |
CASPIAN HOLDINGS Plc
COMPANY BALANCE SHEET
31 DECEMBER 2007
| Notes | 2007 unaudited | 2006 | |||
| ASSETS NON CURRENT ASSETS | |||||
| Investments | 10 | 4,800 | 1,145,146 | ||
| CURRENT ASSETS | |||||
| Trade and other receivables | 14 | 7,736,045 | 7,023,985 | ||
| Cash and cash equivalents | 15 | 54,834 | 106,964 | ||
| 7,790,879 | 7,130,949 | ||||
| LIABILITIES CURRENT LIABILITIES Trade and other payables | 16 | 265,287 | 120,336 | ||
| Financial liabilities - borrowings, interest bearing loans and borrowings | 17 | - | - | ||
| 265,287 | 120,336 | ||||
| NET CURRENT ASSETS | 7,525,592 | 7,010,613 | |||
| NET CURRENT LIABILITIES | |||||
| Financial liabilities - borrowings | 17 | 699,976 | - | ||
| NET ASSETS | £6,830,416 | £8,155,759 | |||
| SHAREHOLDERS' EQUITY | |||||
| Called up share capital | 20 | 98,699 | 98,699 | ||
| Share premium account Profit and loss account | 21 21 | 9,474,645 (2,742,928) | 9,474,645 (1,417,585) | ||
| TOTAL EQUITY | £6,830,416 | £8,155,759 | |||
CASPIAN HOLDINGS Plc
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2007
| Notes | 2007 unaudited | 2006 | |||
| Cash flows from operating activities Cash generated from operations Finance cost Net cash from operating activities | 1 | (393,769) (58,900) (452,669) | (1,232,898) (14,810) (1,247,708) | ||
| Cash flows from investing activities Proceeds from disposal of fixed assets Purchase of intangible fixed assets Purchase of tangible fixed assets Finance income Net cash from investing activities | - (241,451) (220,373) 16,689 (445,135) | 1,345 (312,123) (2,024,468) 57,648 (2,277,598) | |||
| Cash flows from financing activities Share issue Net Loans Repayment of financial liabilities - borrowings Interest bearing loans and borrowings Net cash from financing activities | - 776,959
(1,753) 775,206 | 3,261,407 -
(13,196) 3,248,211 | |||
| Cash Flow from Acquisitions and Disposals | |||||
| Acquisition of Subsidiary | (4,800) | - | |||
| New Assets acquired with Subsidiary | 10,000 | - | |||
| £5,200 | £- | ||||
| (Decrease)/Increase in cash and cash equivalents Cash and cash equivalents at beginning of year |
2 | (117,398)
200,652 | (277,095)
477,747 | ||
| Cash and cash equivalents at end of year | 2 | £83,254 | £200,652 |
CASPIAN HOLDINGS Plc
NOTES TO THE GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2007
1. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES
| 2007 unaudited | 2006 | ||||
| Operating loss Exchange gains/(losses) in period Provisions in Year Translation adjustments Translation adjustments relating to fixed assets | (1,888,346) 354,858 5,104 (152,281) (201,370) | (2,718,173) (648,986) - 183,370 215,294 | |||
| Loss on disposal of tangible assets Depreciation charges | - 990,161 | 738 604,513 | |||
| Impairment losses | 326,998 | 1,587,164 | |||
| (Increase)/decrease in inventories | 99,247 | (279,919) | |||
| Increase in trade and other receivables | 207,625 | (342,722) | |||
| Increase/(decrease) in trade and other payables (Decrease)/increase in other provisions | (83,018)
(46,747) | 169,951
(4,128) | |||
| Net cash outflow from operating activities | £(393,769) | £(1,232,898) | |||
2. CASH AND CASH EQUIVALENTS
The amounts disclosed on the cash flow in respect of cash and cash equivalents are in respect of these balance sheet amounts.
| Year ended 31 December 2007 | |||||
| 31.12.07 | 01.01.07 | ||||
| Cash and cash equivalents | £83,254 | £200,652 | |||
| Year ended 31 December 2006 | |||||
| 31.12.06 | 01.01.06 | ||||
| Cash and cash equivalents | £200,652 | £477,747 | |||