Preliminary Results

10 Oct 2007 07:01

Global Coal Management PLC10 October 2007 GLOBAL COAL MANAGEMENT PLC (AIM: GCM) PRELIMINARY ANNOUNCEMENT OF THE RESULTS FOR THE YEAR ENDED 30 JUNE 2007 This year has seen GCM develop as a company. Even though it has been a period ofuncertainty regarding the Phulbari Coal Project, it has also been an excitingperiod with new additions to the Company's portfolio. The development of thePhulbari Coal Project has been delayed following the Government's failure todate to approve the Scheme of Development. The many dynamic changes to the national political situation have placed astrain on the investment climate in Bangladesh. Under the terms of theBangladesh Constitution the Bangladesh National Party (BNP) Government handedover to a caretaker government in October 2006 with the expectation that therewould be an election within three months. The main opposition party decided inJanuary this year to boycott the election, precipitating country-wide unrest.This ultimately led to a state of emergency being declared and a new caretakergovernment being appointed. At this stage the election is now planned beforethe end of 2008. While the political situation remains uncertain, there is general optimism inthe business community that the policy makers will address the critical issuesfacing the country today, including the key issue of energy and power supply.Despite these setbacks and the tragic events that occurred at Phulbari in August2006 we remain committed to working with the Government to find an acceptableand harmonious way to implement the exciting Phulbari Coal Project for thebenefit of the people of Bangladesh and our shareholders and all otherstakeholders. KEY EVENTS • Bangladesh elections were postponed and a new Caretaker Government wasappointed. • New Coal Policy was drafted and is being reviewed by a technicalcommittee ahead of approval by the Government of Bangladesh. • 6% investment in CCEC Ltd provides entry into China's exciting coalmining and downstream activities. • 10% investment in GVM Metals Limited gives access to mature coalprospects in South Africa. • Strategic alliance with Aura Energy Ltd provides an opportunity to moveinto uranium exploration in highly prospective ground with a very experiencedteam. • 26.5% investment in Peoples Telecommunications and Information ServicesLtd. • Launch this year of www.phulbaricoal.com which provides a comprehensivedescription of the Phulbari Coal Project in Bangla. Results The Group made a loss of £1,254,000 after tax for the twelve months to 30 June2007 (June 2006: loss of £520,000). The increased loss was as a consequence ofan £833,000 charge to earnings due to a new accounting policy with theintroduction of FRS20. Exploration expenditure relating to the Phulbari Coal Project amounted to£3,286,000 for the twelve months (June 2006: £7,643,000). The Group completedthe feasibility study and reduced activity while awaiting approval from theGovernment of Bangladesh to proceed with the next stage of the Phulbari CoalProject. Attached below are the detailed Profit and Loss, Balance Sheet and Cash Flow. Global Coal Management plc GROUP PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2007 30 June 30 June 2007 2006 £000's £000's Share-based payments 833 -Exploration costs 42 -Administrative expenses 1,541 1,338 Group operating loss and loss on ordinary activities before interest andtaxation (2,416) (1,338) Interest receivable 1,163 817Loss on ordinary activities before taxation (1,253) (521) Tax on loss on ordinary activities (1) 1Loss on ordinary activities after taxation (1,254) (520) Loss for the financial year attributable to members of the parent company (1,254) (520) Retained loss for the period (1,254) (520) Basic loss per share (pence) (2.6)p (1.2)pDiluted loss per share (pence) (2.6)p (1.2)p The above results relate solely to continuing operating activities of the Group. GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 30 JUNE 2007 30 June 30 June 2007 2006 £000's £000'sLoss for the financial year attributable to members of the parentcompany (1,254) (520) Total recognised losses relating to the period (1,254) (520) Global Coal Management plc GROUP BALANCE SHEET AS AT 30 JUNE 2007 30 June 30 June 2007 2006 (restated) £000's £000'sFixed assetsIntangible assets 21,216 17,930Tangible assets 310 343Investments 7,412 - 28,938 18,273Current assetsDebtors 506 155Deferred tax asset - 1Current asset investments 45 46Cash at bank and in hand 16,932 28,083 17,483 28,285 Creditors: amounts falling due within one year (306) (468) Net current assets 17,177 27,817 Total assets less current liabilities 46,115 46,090 Net assets 46,115 46,090 Capital and reservesCalled up share capital account 4,881 4,877Share premium account 42,731 42,664Other reserves 721 346Profit and loss account (2,218) (1,797) Equity shareholders' funds 46,115 46,090 For further information: Stephen Bywater Charles VivianChief Executive Pelham prPh: +44 (0) 20 7290 1630 +44 (0) 20 7743 6672 Graham Taggart James MacFarlaneFinance Director Pelham prPh: +44 (0) 20 7290 1630 +44 (0) 20 7743 6375 Global Coal Management plcTel: +44 (0) 20 7 290 1630, Fax: +44 (0) 20 7290 1631info@gcmplc.com; www.gcmplc.com This information is provided by RNS The company news service from the London Stock Exchange