Westmount Engy. Regulatory News (WTE)

2 Mar 2006 07:00

Westmount Energy Limited02 March 2006 CONTACTS: Westmount Energy Limited Tel: 01534 814209Derek Williams, ChairmanPaul Anderson, Director Ruegg & Co Limited Tel: 020 7584 3663Gavin Burnell Brett Miller Merlin Tel: 020 7653 6620 Tom RandellPaul Downes 2 March 2006 WESTMOUNT ENERGY LIMITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2005 The Board of Westmount Energy Limited ("the Company") today announces theinterim results of the Company and its subsidiary ("the Group") for the sixmonths ended 31 December 2005. Highlights are as follows: • Turnover from discontinued operations in the North Sea £1,118 (2004: £60,090). • Profit before tax of £4,810,877, profit after tax £4,343,603 (2004: Loss before tax of £80,786, loss after tax £91,690). • Earnings per share of 28.93p (2004: Loss per share of 0.61p). • The results for the six months ended 31 December 2005 include the surplus realised on the termination of the Group's overriding royalty interest relating to Licence P.241 North Sea amounting to £1,706,201 and the profit realised on the disposal of 40 million of the Company's shareholding of 70 million Ordinary Shares of Sterling Energy plc amounting to £3,189,999. No investments were sold in the corresponding period last year. Following the approval of Shareholders at the Extraordinary General Meeting ofthe Company held on 22 December 2005 Capital of the equivalent of 50p per 10pOrdinary Share totalling approximately £7,500,000 was authorised to be returnedto shareholders. Shareholders have also received one Consolidated Share of 20pfor every two Ordinary Shares of 10p each held. On 31 January 2006 a total of£5,836,679 was returned to shareholders and those shareholders not receivingfull earlier payment will be forwarded return of capital on 1 May 2006,totalling £1,670,001.50. The 10p Ordinary Shares of the Company commenced trading on AIM on 2 October1995 at 15p. Following the Share Capital Re-organisation there are now 7,506,68020p Ordinary Shares in issue traded on AIM held by approximately 1,500shareholders. There are also Share Options outstanding over 750,000 20p OrdinaryShares exercisable at a subscription price of 103.5p per share, over variousperiods, expiring 31 December 2012. Attached: Full text of the Chairman's Interim Review from the forthcomingInterim Report, including the Consolidated Profit and Loss Account, ConsolidatedBalance Sheet and Consolidated Cash Flow Statement. Copies of the interim results will be available from the offices of Ruegg & CoLimited, 39 Cheval Place, London SW7 1EW for a period of one month from today'sdate. CHAIRMAN'S INTERIM REVIEW The results for the six months ended 31 December 2005 show profits beforetaxation of £4,810,877 (£4,343,603 after taxation) compared with a loss beforetaxation of £80,786 (£91,690 after taxation) for the six months ended 31December 2004. Turnover for the six months ended 31 December 2005 arising fromthe Group's discontinued operations in the North Sea amounted to £1,118 ascompared with £60,090 for the six months ended 31 December 2004. For the six months ended 31 December 2005 the results include the surplusrealised on the termination of the Group's overriding royalty interest relatingto Licence P.241, North Sea amounting to £1,706,201. Also included in theprofits for the period was the profit realised on the disposal of 40,000,000Ordinary Shares of Sterling Energy plc ("Sterling") amounting to £3,189,999. Noinvestments were sold in the corresponding period last year. As set out in the Circular to Shareholders dated 25 November 2005, following thesale of the two Investments referred to above, the Company had cash fundsavailable of approximately £9 million and the Directors were in a position torecommend return of capital to Shareholders, whilst retaining sufficient fundsfor the future growth of the Company. Following the Extraordinary GeneralMeeting of the Company held on 22 December 2005 it was announced that allenabling resolutions as set out in the Circular were duly passed and accordinglyCapital of the equivalent of 50p per Ordinary Share totalling approximately£7,500,000 would be returned to Shareholders. Shareholders would also receiveone Consolidated Ordinary Share of 20p for every two Ordinary Shares of 10p eachheld. On 31 January 2006 a total of £5,836,679 was returned to shareholders andthose shareholders not receiving full earlier payment will be forwarded returnof capital on 1 May 2006, totalling £1,670,001.50. On 19 January 2006 Westmount announced it had provided a £500,000 ConvertibleLoan to AIM quoted CDS Oil & Gas Group plc ("CDS") to be utilised solely towardsthe funding of its exploration programme in the Chaco Basin in North WestParaguay. Westmount has the option at any time prior to 29 December 2006 toelect to apply the Loan by subscribing for and paying up 5 million new ordinaryshares of 1p in CDS at 10p per share and CDS will procure the issue to Westmountof warrants to subscribe for a further 5 million new ordinary shares of 1p eachin CDS at 10p per share for a period of one year thereafter. In the eventWestmount does not exercise its option or the Loan is not repaid on 29 December2006, Westmount will apply the Loan by paying up and subscribing for on 29December 2006, such number of new ordinary shares of 1p each in CDS as shall befound by dividing the aggregate amount of the Loan and accrued interest by theaverage price of an ordinary share of 1p each in CDS as traded on AIM for theprevious 14 trading days, less 5% thereof. On 22 December 2005, Westmount was pleased to announce the appointment of PaulAnderson as a director of the Company. Paul is an associate member of theInstitute of Chartered Secretaries and Administrators, a trust manager of BedellGroup, Jersey, and has been involved with Westmount's business for over 9 years.On 17 January 2006, the Board announced that Ruegg & Co Limited, whichspecialises in the AIM and OFEX markets, had been appointed as Nominated Adviserand Broker to the Company. The moves outlined above have been designed to assist in the further developmentof Westmount and the growth in value per share for the benefit of Shareholders. Westmount's investments continue to perform well. Besides the recent investmentin CDS these include, 30,000,000 shares of AIM quoted Sterling, 5,500,000 sharesof AIM quoted Desire Petroleum plc and 244,000 shares of presently unquoted,Eclipse Energy Company Limited. The 10p Ordinary Shares of Westmount Energy Limited commenced trading on AIM on2 October 1995 at 15p. Following the Share Capital Re-organisation there are now7,506,680 20p Ordinary Shares in issue traded on AIM held by approximately 1,500shareholders. There are also Share Options outstanding over 750,000 20p OrdinaryShares, exercisable at a subscription price of 103.5p per share, over variousperiods, expiring 31 December 2012. Derek G. WilliamsChairman 2 March 2006 CONSOLIDATED PROFIT AND LOSS ACCOUNT Six months to Six months to Year to 31 December 31 December 30 June 2005 2004 2005 (unaudited) (unaudited) (audited) £ £ £ Turnover - discontinuedoperations 1,118 60,090 137,925 Operating Costs - (4,411) (5,927) Surplus on termination ofNorth Sea overriding royaltyinterest(before taxation) 1,706,201 - - Profit on disposal ofinvestments 3,189,999 - 639,751 Interest Receivable 73,277 24,670 27,584 Interest Payable - (28,983) (32,625) Administration Expenses (159,718) (132,152) (280,841) ________ ________ ________ Profit (Loss) on ordinaryactivitiesbefore taxation 4,810,877 (80,786) 485,867 Taxation (467,274) (10,904) (24,505) ________ ________ ________ Profit (Loss) on ordinaryactivitiesafter taxation 4,343,603 (91,690) 461,362 ________ ________ ________ Earnings (Loss) per ordinaryshare 28.93p (0.61p) 3.07p CONSOLIDATED BALANCE SHEET 31 December 2005 30 June 2005 Note (unaudited) (audited) £ £ FIXED ASSETS Tangible fixed assets - 32,563Investments 4,882,017 9,482,017 _________ ________ 4,882,017 9,514,580 CURRENT ASSETS Debtors 2,425 11,779Cash at bank 9,432,825 34,791 _________ ________ 9,435,250 46,570CREDITORS Amounts falling due within one year (639,471) (71,060) _________ ________ TOTAL ASSETS LESS CREDITORS 13,677,796 9,490,090 _________ ________ SHARE CAPITAL AND RESERVES Share Capital 1 1,651,470 1,501,336Share Premium Account 2 8,024,765 974,248Profit and Loss Account 3 4,001,561 7,014,506 _________ ________ SHAREHOLDERS' FUNDS 13,677,796 9,490,090 _________ ________ Notes: £ 1. Share Capital - Balance 01.07.2005 1,501,336 Transfer from Share Premium Account: 15,015,361 'B' Shares of 1p 150,134 _________ Balance 31.12.2005 1,651,470 _________ 2. Share Premium Account - Balance 01.07.2005 974,248 Transfer to Share Capital: 15,013,261 'B' Shares of 1p (150,134) Transfer from Profit and Loss Account 49p Premium on 'B' Shares 7,356,548 Expenses of Share Capital (155,897) Reorganisation _________ Balance 31.12.2005 8,024,765 _________ 3. Profit and Loss Account - Balance 01.07.2005 7,014,506 Profit for 6 months ended 4,343,603 31.12.2005 Transfer to Share Premium (7,356,548) Account _________ Balance 31.12.2005 4,001,561 _________ CONSOLIDATED CASH FLOW STATEMENT Six months to Six months to Year to 31 December 31 December 30 June 2005 2004 2005 (unaudited) (unaudited) (audited) £ £ £ Net cash outflow from operatingactivities (161,479) (94,126) (64,519) Returns on investment andservicing of finance 73,277 95,424 63,813 Taxation paid - - (19,605) Capital expenditure andfinancial investment 9,528,763 - 779,581 ________ ________ ________ Cash inflow before financing 9,440,561 1,298 759,270 Financing (42,527) 41,875 (764,174) ________ ________ ________ Increase (decrease) in cash 9,398,034 43,173 (4,904) ________ ________ ________ Reconciliation of cash flow tomovement in net funds/(debt) Increase (decrease) in cash 9,398,034 43,173 (4,904) Cash outflow from decrease in debt - - 764,174 Cash inflow from decrease incurrent asset - - (94,332) _________ ________ ________ Change in net funds/(debt)resultingfrom cash flows 9,398,034 43,173 664,938 Non-cash movements on debt - (602,015) (575,900) _________ ________ ________ Movement in net funds/(debt) 9,398,034 (558,842) 89,038 Net funds/(debt) brought forward 34,791 (54,247) (54,247) _________ ________ ________ Net funds/(debt) carried forward 9,432,825 (613,089) 34,791 _________ ________ ________ This information is provided by RNS The company news service from the London Stock Exchange