Half Yearly Report

RNS Number : 4689T

Hameldon Resources Limited

28 September 2010

 

 

Hameldon Resources Limited

(the 'Company' or 'HRE')

 

Interim Results - Six months ended 30 June 2010

 

Summary Financials

 

·; Loss Attributable to Shareholders for the period ended 30 June 2010: US$0.09 million (2009: US$0.4 million, of which US$0.2 million was from continuing operations)

·; Shareholder Equity at 30 June 2010: US$0.4 million (2009: US$0.3 million)

·; Loss Per Share (basic) for the period ended 30 June 2010: US cent 0.07 (2009: US cent 0.33, of which US cent 0.14 was from continuing operations)

 

 

Commentary

 

·; The Company is classified under the AIM Rules as an investing company and shareholders have approved a change in investment strategy to acquire holdings in natural resources, minerals, metals and oil & gas companies. The Board has been active in seeking opportunities in the natural resources arena and has looked at a number of companies in which to invest. In attempting to make the appropriate investment choices the Board has focused on ensuring that it can protect the value of the Company for all shareholders. The Board continues in its attempts to find the most appropriate investments.

 

 

Steve Smith

Chairman

 

 

Consolidated Income Statement
Continuing Operations				Unaudited six months ended 30 June		(Restated) Unaudited six months ended 30 June		Audited year ended 31 December
				2010		2009		2009
		Notes		US$'000		US$'000		US$'000
Continuing operations
Turnover				-		-		-
Material cost of sales				-		-		-
Gross profit				-		-		-
Loss on financial assets at fair value through profit or loss				(5)		-		-
Other income				34		-		-
Other operating expenses				(120)		(144)		(331)
Loss from operations prior to share based payment charge				(91)		(144)		(331)
Share based payment charge				-		(43)		(89)
Loss from operations		5		(91)		(187)		(420)
Finance income				-		-		-
Finance costs				-		-		-
Loss before taxation				(91)		(187)		(420)
Taxation expense		6		-		-		-
Loss from continuing operations				(91)		(187)		(420)
Discontinued operations
Loss from discontinued operations				-		(261)		(283)
Loss for the period, attributable to owners of the Company				(91)		(448)		(703)
Other comprehensive income
Exchange differences on translation of foreign operations				(30)		(39)		364
Total comprehensive income for the period, attributable to owners of the Company				(121)		(487)		(339)

 

 

 

Loss per share attributable to owners of the Company during the period	7		US cents		US cents		US cents
Basic:
Continuing operations			(0.07)		(0.14)		(0.31)
Discontinued operations			-		(0.19)		(0.21)
Total			(0.07)		(0.33)		(0.52)
Diluted:
Continuing operations			(0.07)		(0.14)		(0.31)
Discontinued operations			-		(0.19)		(0.21)
Total			(0.07)		(0.33)		(0.52)

Consolidated Statement of Financial Position

		Unaudited 30 June	Unaudited 30 June	Audited 31 December
		2010	2009	2009
	Notes	US$'000	US$'000	US$'000
ASSETS
Non-current assets
Property, plant and equipment		-	139	-
Intangible assets		-	58	-
		-	197	-
Current assets
Trade and other receivables	8	127	1,164	25
Cash and cash equivalents		562	409	737
		689	1,573	762
Total assets		689	1,770	762
LIABILITIES
Current liabilities
Trade and other payables	9	303	1,081	255
Deferred income		-	315	-
Current tax provision		-	32	-
Bank loan		-	16	-
		303	1,444	255
Non-current liabilities
Deferred taxation	10	-	13	-
Bank loan		-	-	-
		-	13	-
Total liabilities		303	1,457	255
EQUITY
Share capital	11	636	636	636
Reserves		(250)	(323)	(129)
Equity attributable to owners of the Company and total equity		386	313	507
Total equity and liabilities		689	1,770	762

 

 

 

 

 

 

Consolidated Statement of Changes in Equity
	Share capital	Share premium	Capital reserve	Foreign exchange reserve	Accumulated losses	Total equity
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000
At 1 January 2010 (Audited)	636	4,438	29,214	(3,980)	(29,801)	507
Exchange difference	-	-	-	(30)	-	(30)
Loss for the period	-	-	-	-	(91)	(91)
Total comprehensive income for the period	-	-	-	(30)	(91)	(121)
At 30 June 2010 (Unaudited)	636	4,438	29,214	(4,010)	(29,892)	386
At 1 January 2009 (Audited)	636	4,438	6,547	73	(10,937)	757
Exchange difference	-	-	-	(39)	-	(39)
Loss for the period	-	-	-	-	(448)	(448)
Total comprehensive income for the period	-	-	-	(39)	(448)	(487)
Share based payments	-	-	-	-	43	43
Transactions with owners	-	-	-	-	43	43
At 30 June 2009 (Unaudited)	636	4,438	6,547	34	(11,342)	313

 

 

 

 

Condensed Consolidated Statement of Cash Flows

		Unaudited six months ended 30 June	Unaudited six months ended 30 June	Audited year ended 31 December
		2010	2009	2009
		US$'000	US$'000	US$'000
Net cash outflow from operating activities
- Continuing operations		(202)	(105)	(73)
- Discontinued operations		-	(135)	(51)
		(202)	(240)	(124)
Net cash inflow /(outflow) from investing activities
- Continuing operations		67	-	-
- Discontinued operations		-	(19)	130
		67	(19)	130
Net cash outflow from financing activities
- Continuing operations		-	-	-
- Discontinued operations		-	(12)	(20)
		-	(12)	(20)
Net decrease in cash and cash equivalents		(135)	(271)	(14)
Cash and cash equivalents as at start of period		737	719	719
Effect of exchange rate fluctuations		(40)	(39)	32
Cash and cash equivalents as at end of period		562	409	737
Analysed into:
- Continuing operations		562	7	737
- Discontinued operations		-	402	-
Total		562	409	737

 

 

 

 

 

 

 

Notes to the unaudited interim financial information

 

1. Basis of preparation

 

The Company was incorporated as a Corporation in the Cayman Islands which does not prescribe the adoption of any particular accounting framework. The Board has therefore adopted International Financial Reporting Standards as adopted by the European Union (IFRSs). The Company's shares are listed on the AIM market of the London Stock Exchange.

 

The Company is classified under AIM rules as an investing company and the board has been active in seeking opportunities in the natural resources arena. The Company was previously the holding company of the Group. The principal activities of the companies held by the Group were marketing and public relations before the disposal of all its interests in these undertakings on 27 October 2009.

 

The interim financial information has been prepared on the historical cost basis except for financial instruments classified as fair value through profit or loss which are measured at fair value.

 

It should be noted that accounting estimates and assumptions are used in preparation of the interim financial information. Although these estimates are based on management's best knowledge and judgment of current events and actions, actual results may ultimately differ from those estimates. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the interim financial information, are set out in Note 3 to the unaudited interim financial information.

 

The interim financial information contained in this announcement does not constitute statutory accounts within the meaning of the Companies Act 2006. The full accounts for the year ended 31 December 2009 received an unqualified report from the auditors and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.

 

The interim financial information is unaudited but hasbeen reviewed by the Company's Audit Committee.

 

 

2. Principal accounting policies

The interim financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting". These condensed interim financial information should be read in conjunction with the audited annual financial statements of the Group for the year ended 31 December 2009 (the "2009 Annual Report"), which have been prepared in accordance with International Financial Reporting Standards.

 

The principal accounting policies and methods of computation adopted to prepare the interim financial information are consistent with those detailed in the 2009 Annual Report published by the Company on 28 June 2010, except for the accounting policy on financial assets at fair value through profit or loss.

Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term, or it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent pattern of short-term profit-taking.

 

Financial assets may be designated at initial recognition as at fair value through profit or loss if the following criteria are met:

 

- the designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the assets or recognising gains or losses on them on a different basis; or

 

- the assets are part of a group of financial assets which are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management strategy and information about the group of financial assets is provided internally on that basis to the key management personnel.

 

Subsequent to initial recognition, the financial assets included in this category are measured at fair value with changes in fair value recognised in the income statement. Fair value is determined by reference to active market transactions or using a valuation technique where no active market exists. Fair value gain or loss does not include any dividend or interest earned on these financial assets.

 

The financial assets at fair value through profit or loss were acquired and were disposed of during the period ended 30 June 2010.

 

3. Critical accounting estimates and judgments

 

The key sources of estimation uncertainty the Directors had made in preparing these financial statements are as follows:

 

- the assumptions used to calculate the fair value of share options. The share options were cancelled on 27 October 2009.

 

The Directors consider that the critical judgements in applying the accounting policies, as detailed above, in preparing these financial statements were:

 

- the use of the functional currencies used by the operating subsidiaries which accorded with the local currency in which they trade; and

- the recognition of revenue on consultancy services and retainer fees and services over the period the services were provided. The revenue was recognised based on management's assessment of the stage of completion of the services provided.

 

The Company disposed of all its interests in subsidiary undertakings on 27 October 2009. 

 

 

4. Segment Information

 

As described in Note 1 to the unaudited interim financial information, the Group's only segment was that of marketing and public relations. The Group's marketing and public relations activities were discontinued following the disposal of all its interests in subsidiary undertaking on 27 October 2009.

 

 

5. Loss from operations - continuing operations

 

	Unaudited six months ended 30 June 2010	Unaudited six months ended 30 June 2009	Audited year ended 31 December 2009
	US$'000	US$'000	US$'000
Loss before taxation is arrived at after charging/(crediting):
Auditors' remuneration:
- fee payable to the Company's auditors and its associates for the audit of the Company's financial statements	11	19	23
Foreign exchange (gain)/losses, net	(34)	-	44

 

 

6. Taxation expense - continuing operations

 

There is no tax credit on the loss for the current or prior period.

 

 

7. Loss per share for loss attributable to owners of the Company

 

(a) Basic

 

	Unaudited six months ended 30 June 2010	Unaudited six months ended 30 June 2009	Audited year ended 31 December 2009
	US$'000	US$'000	US$'000
Loss attributable to owners of the Company
- Continuing operations	(91)	(187)	(420)
- Discontinued operations	-	(261)	(283)
	(91)	(448)	(703)

 

	Number of shares	Number of shares	Number of shares
Weighted average number of shares for calculating basic loss per share	137,401,194	137,401,194	137,401,194

 

	Unaudited six months ended 30 June 2010	Unaudited six months ended 30 June 2009	Audited year ended 31 December 2009
	US cents	US cents	US cents
Basic loss per share
- Continuing operations	(0.07)	(0.14)	(0.31)
- Discontinued operations	-	(0.19)	(0.21)
	(0.07)	(0.33)	(0.52)

 

(b) Diluted

 

No diluted loss per share is shown for the six month ended 30 June 2010, as the outstanding share options were cancelled on 27 October 2009.

 

No diluted loss per share is shown for the six month ended 30 June 2009 and for the year ended 31 December 2009, as the outstanding share options are anti-dilutive.

 

 

8. Trade and other receivables

 

		Unaudited 30 June	Unaudited 30 June	Audited 31 December
		2010	2009	2009
		US$'000	US$'000	US$'000
Trade receivables -gross		-	1,039	-
Less: impairment losses		-	(79)	-
Trade receivables - net		-	960	-
Other receivables		107	5	-
Deposits and prepayments		20	199	25
Total		127	1,164	25

 

The fair value of trade and other receivables is considered by the Directors not to be materially different to carrying amounts.

 

 

9. Trade and other payables

 

	Unaudited	Unaudited	Audited
	30 June	30 June	31 December
	2010	2009	2009
	US$'000	US$'000	US$'000
Trade payables	-	396	-
Other payables and accrued charges	42	685	119
Amounts due to directors and others	261	-	136
Total	303	1,081	255

 

 

10. Deferred taxation

 

Deferred taxation liabilities recognised can be summarised as follows:

 

	Unaudited 30 June 2010	Unaudited 30 June 2009	Audited 31 December 2009
	US$'000	US$'000	US$'000
Non-current liabilities	-	13	-

 

 

 

	Unaudited 30 June 2010	Unaudited 30 June 2009	Audited 31 December 2009
	US$'000	US$'000	US$'000
At 1 January	-	22	22
Credited to income statement	-	(9)	(15)
Disposal of foreign operations	-	-	(7)
At 30 June/31 December	-	13	-

 

 

11. Share capital

 

	Number of ordinary shares	Value US$'000
Authorised (par value of 0.25p each)
At 30 June 2010, 30 June 2009 and 31 December 2009	4,000,000,000	18,470
Issued and fully paid (par value of 0.25p each)
At 30 June 2010, 30 June 2009 and 31 December 2009	137,401,194	636

 

 

12. Contingencies 

 

As at 30 June 2010, the Company had no material contingent liabilities.

 

 

 

 

 

 

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