Final Results

21 Sep 2006 17:03

Capricorn Resources PLC21 September 2006 Capricorn Resources plc Results for the year ended 31 December 2005 CHAIRMAN'S STATEMENT The accounts for the year ended 31 December 2005 show a loss before and aftertax of £ 127,194 (2004 - £175,111). Since I took over executive control of thecompany in July 2005 I have taken steps to reduce expenditure and thereforelosses, and I believe that these are now at a minimum level for a publiccompany. For this thanks are due also to my co-director, John Stuttaford. Inparticular the payments to directors have reduced to £5,000 per annum, and I amnot taking any remuneration from Capricorn. The company had some £174,964 in cash at 31 December 2005 and this is sufficientto pay overheads at the current rate for several years. Despite these economies,the future of the Company will only be secured by a transaction to add value. Atpresent the Company's shares are suspended from trading on AIM under the newrules relating to cash shells. Should the Company not have completed atransaction resulting in its being readmitted to AIM by 30 September 2006 itslisting on AIM will be cancelled. While technically this would have littleeffect, the directors believe that the psychological effect would be great, andin that case they will consider recommending that the Company be wound up. The efforts of the Directors have therefore been focused on identifying anacquisition to add value for shareholders, which will be a reverse transactionrequiring consent of shareholders with 75% voting in favour. As one shareholdergrouping controls more than 25% of the Company's shares the agreement of thatgrouping is essential for a transaction to be approved. To date the directorshave brought forward two possible transactions, the first an alluvial diamondproject in South Africa and the second a natural gas and coal bed methaneproject in the United Kingdom. Unfortunately we were informed that neither ofthese would be approved by the 25% shareholder group, and we were thereforeunable to put them to shareholders generally for their approval. We continue toexamine potential projects and have the deadline of 30 September 2006 very muchin mind. Brian Moritz(Chairman) 28 June 2006 PROFIT AND LOSS ACCOUNTfor the year ended 31 December 2005 Year Year ended 31 ended 31 December December 2005 2004 £ £ TURNOVER 0 0Operating expenses (127,390) (175,594) -------- --------- OPERATING LOSS (127,390) (175,594)Interest receivable 196 483 -------- --------- LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (127,194) (175,111)Taxation 0 0 -------- --------- LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (127,194) (175,111) ======== ========= LOSS PER ORDINARY SHARE Basic and diluted -0.19p -0.27p ======== ========= The operating loss for the year arises from the company's continuingoperations. No separate statement of Total Recognised Gains and Losses has been presented asall gains and losses have been dealt with in the profit and loss account. BALANCE SHEETAt 31 December 2005 2005 2004 £ £FIXED ASSETSTangible assets 0 3,158 -------- --------- CURRENT ASSETSDebtors 6,881 26,368Cash at bank and in hand 174,964 294,263 -------- --------- 181,845 320,631 CREDITORS: Amounts falling due within one year 20,030 46,033 -------- ---------NET CURRENT ASSETS 161,815 274,598 -------- ---------TOTAL ASSETS LESS CURRENT LIABILITIES 161,815 277,756 ======== =========CAPITAL AND RESERVESCalled up share capital 66,574 65,449Share premium account 491,868 480,614Other reserves 57,125 58,251Profit and loss account (453,752) (326,558) -------- ---------SHAREHOLDERS' FUNDS 161,815 277,756 ======== ========= Approved by the board on 28 June 2006 J C StuttafordDirector CASH FLOW STATEMENTfor the year ended 31 December 2005 Year ended Year ended 31 December 31 December 2005 2004 £ £ Cash outflow from operating activities (132,208) (204,108)Returns on investments and servicing offinance 196 483Capital expenditure and financialinvestment 1,460 (920) -------- ---------CASH OUTFLOW BEFORE FINANCING (130,552) (204,545)Financing 11,253 86,201 -------- ---------DECREASE IN CASH IN THE PERIOD (119,299) (118,344) ======== =========RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDSDecrease in cash in the period (119,299) (118,344)NET FUNDS AT 1 JANUARY 2005 294,263 412,607 -------- --------- NET FUNDS AT 31 DECEMBER 2005 174,964 294,263 ======== ========= 1 FINANCIAL INFORMATION The financial information for the year ended 31 December 2005 has been extractedfrom the Company's audited accounts which have not yet been filed with the UKRegistrar of Companies. The Financial Information does not constitute theCompany's statutory financial statements within the meaning of S240 of theCompanies Act 1985. 2 BASIS OF ACCOUNTING The financial statements have been prepared under the historical cost conventionin accordance with applicable United Kingdom accounting standards and on a goingconcern basis. Having reviewed the future of the AIM listing, the options set out in note 21,the forecast expenditure for the coming year and the reduced rate of expenditurethe Directors are satisfied that the going concern basis is appropriate forthese accounts. The report of the auditors, Nexia Smith & Williamson, includes the followingstatement: "Emphasis of matter - going concern In forming our opinion, which is not qualified, we have considered the adequacyof the disclosure made in notes 1 and 21 to the accounts concerning thecompany's continuance as a going concern. In particular, the directors haveindicated that should the Company's AIM listing be cancelled they may considerrecommending the Company be wound up voluntarily. These conditions indicate theexistence of a material uncertainty as to the company's continuance as a goingconcern. The accounts do not include the adjustments that would result if thecompany did not continue as a going concern" 3 LOSS ON ORDINARY SHARE The calculation of basic and diluted loss per ordinary share is based on thefollowing losses and number of shares. Year to 31 Year to 31 December 2005 December 2004 £ £ Loss for the financialperiod (127,194) (175,111) 2005 2004 No. of shares No. of shares Weighted averagenumber of shares 66,235,387 64,855,150 Due to the loss incurred in the year, there is no dilutive effect from theissue of share options and warrants. 4 AVAILABILITY OF ACCOUNTS The annual report and accounts have been posted to shareholders and will beavailable at Craven House, West Street, Farnham, Surrey, GU9 7EN. This information is provided by RNS The company news service from the London Stock Exchange