Half-yearly Report
29 August 2013
BISICHI MINING PLC
Interim Results for the period ended 30 June 2013
A STEADY START TO 2013
For the six months ending 30th June 2013
* Group Revenues: £19.097 million (2012: £16.477 million)
* EBITDA: £3.184 million (2012: £2.209 million)
* EPS (basic): 10.07p (2012: 10.86p)
* Net Assets per share: £1.72 (2012: £1.65)
Sir Michael Heller, Chairman, states:
"In the first half of this year we have continued to benefit from steady coal
production at Black Wattle and strong demand for our products both of which
have contributed to a satisfactory profit."
END
For further information, please call:
Andrew Heller/Garrett Casey Bisichi Mining PLC 020 7415 5030
Bisichi Mining PLC
Half year review - 30 June 2013
We are pleased to report to shareholders that for the six month period ending
on 30 June 2013, Bisichi Mining achieved EBITDA of £3.2million (2012: £2.2
million). These results reflect the strong performance of our South African
coal mining subsidiary, Black Wattle Colliery.
The physical demand for the lower quality coal, which we are currently mining
at Black Wattle, has remained strong in both our domestic and export markets
during the first six months of 2013. In particular, the South African coal
market has continued to benefit from stable market conditions and the
significantly improved performance of Transnet, the South African railway
network.
During this period Black Wattle has accessed successfully a number
of additional opencast pits. The transition into these new areas has ensured
that our monthly production has been maintained at an average of 145,000 metric
tonnes per month. Looking forward, we expect monthly production to remain at
these same levels for the remainder of 2013 although we will be mining into
much deeper reserves.
The Company's UK retail property portfolio, which is managed by London &
Associated Properties PLC, continues to perform well despite the ongoing
difficulties in the UK retail property sector. Voids across the portfolio
continue to remain low.
Your directors intend to pay an interim dividend of 1p per share which will be
paid on the 31 January 2014, to shareholders on the register at the close of
business on 3 January 2014.
On behalf of the Board we would like to thank all our staff for their hard work
during the first six months of the year.
Sir Michael Heller Andrew Heller
Chairman Managing Director
28 August 2013
Bisichi Mining PLC
Consolidated income statement
for the six months ended 30 June 2013
Unaudited 6 Unaudited 6 Audited Year
months ended 30 months ended ended 31
June 30 June December
2013 2012 2012
Notes £000 £000 £000
Group revenue 1 19,097 16,477 35,962
Operating costs (17,492) (15,268) (33,088)
Operating profit on 1,605 1,209 2,874
trading activities
Decrease in value of investment - - (456)
properties
(Loss)/gains on held for trading (48) (54) 39
investments
Operating profit 1 1,557 1,155 2,457
Share of profit /(loss) in 34 47 (137)
joint ventures
Profitbefore interest and 1,591 1,202 2,320
taxation
Interest receivable 154 122 281
Interest payable (170) (205) (411)
Profitbefore taxation 1 1,575 1,119 2,190
Income tax 2 (404) 95 (650)
Profitfor the period 1,171 1,214 1,540
Attributable to:
Equity holders of the 1,063 1,147 1,295
company
Non-controlling 108 67 245
interest
Profit for the period 1,171 1,214 1,540
Earnings per share - basic 3 10.07p 10.86p 12.27p
Earnings per share - 3 9.92p 10.57p 12.08p
diluted
Bisichi Mining PLC
Consolidated statement of comprehensive income
for the six months ended 30 June 2013
Unaudited 6 Unaudited 6 Audited Year
months ended months ended ended 31
30 June 30 June December
2013 2012 2012
£000 £000 £000
Profitfor the period 1,171 1,214 1,540
Other comprehensive income:
Exchange differences on translation of (367) (143) (391)
foreign operations
Other comprehensive income for the (367) (143) (391)
period, net of tax
Total comprehensive income for the 804 1,071 1,149
period
Attributable to:
Equity shareholders 738 1,011 936
Non-controlling interest 66 60 213
Total comprehensive incomefor the 804 1,071 1,149
period
Bisichi Mining PLC
Consolidated Balance Sheet
as at 30 June 2013
Unaudited 30 June Unaudited 30 Audited 31
June December
2013 2012 2012
Assets £000 £000 £000
Non-current-assets
Value of investment 11,612 12,068 11,612
properties attributable
to the group
Fair value of head 198 204 202
leases
Property 11,810 12,272 11,814
Reserves, plant and 8,764 7,887 8,638
equipment
Investments in joint 3,125 1,454 3,061
ventures
Loan to joint venture 1,080 1,138 1,117
Other investments 158 148 131
Total non-current assets 24,937 22,899 24,761
Current assets
Inventories 1,185 2,085 1,876
Trade and other 7,926 7,010 7,604
receivables
Corporation tax 45 47 49
recoverable
Held for trading 737 678 787
investments
Cash and cash 2,540 1,346 1,802
equivalents
12,433 11,166 12,118
Non-current assets held - 1,820 -
for sale
Total current assets 12,433 12,986 12,118
Total assets 37,370 35,885 36,879
Liabilities
Current liabilities
Borrowings (7,840) (6,898) (6,186)
Trade and other payables (7,477) (8,395) (9,218)
Current tax liabilities (118) (102) (2)
Total current (15,435) (15,395) (15,406)
liabilities
Non-current liabilities
Borrowings - - (86)
Provision for (960) (1,002) (989)
rehabilitation
Finance lease (198) (204) (202)
liabilities
Deferred tax liabilities (2,606) (1,624) (2,437)
Total non-current (3,764) (2,830) (3,714)
liabilities
Total liabilities (19,199) (18,225) (19,120)
Net assets 18,171 17,660 17,759
Equity
Share capital 1,056 1,056 1,056
Share premium 169 169 169
Translation reserve (1,130) (582) (805)
Other reserves 558 507 528
Retained earnings 17,008 16,219 16,367
Total equity 17,661 17,369 17,315
attributable to equity
shareholders
Non-controlling interest 510 291 444
Total equity 18,171 17,660 17,759
Bisichi Mining PLC
Consolidated Cash Flow Statement
For the six months ended 30 June 2013
Unaudited Unaudited Audited 31
30 June 30 June December
2013 2012 2012
£000 £000 £000
Cash flows from operating activities
Operating profit 1,557 1,155 2,457
Depreciation 1,593 1,007 2,253
Unrealised gain/(loss) on investments held 48 54 (39)
for trading
Unrealised gain on investment properties - - 456
Share based payment expense 30 7 27
Realised share of profit in joint venture 34 33 64
Increase in working capital (1,489) (188) (1,478)
Net interest paid (16) (83) (130)
Income tax (paid)/received - (60) 83
Cash flow from operating activities 1,757 1,925 3,693
Cash flows from investing activities (2,484) (1,153) (3,665)
Cash flows from financing activities (371) (2,264) (550)
Net decreasein cash and cash equivalents (1,098) (1,492) (522)
Cash and cash equivalents at 1 January 718 1,114 1,114
Exchange adjustment 93 42 126
Cash and cash equivalents at end of period (287) (336) 718
Cash and cash equivalents
For the purposes of the cash flow statement,
cash and cash equivalents comprise the
following balance sheet amounts:
Cash and cash equivalents 2,540 1,346 1,802
Bank overdrafts (2,827) (1,682) (1,084)
Cash and cash equivalents at end of period (287) (336) 718
Bisichi Mining PLC
Consolidated statement of changes in shareholders' equity
for the six months ended 30 June 2013
Non-
Share Share Translation Other Retained controlling Total
capital premium reserve reserves earnings Total Interest Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance as at 1 1,056 169 (446) 500 15,494 16,773 231 17,004
January 2012
Profit for the - - - - 1,147 1,147 67 1,214
period
Exchange - - (136) - - (136) (7) (143)
adjustment
Total - - (136) - 1,147 1,011 60 1,071
comprehensive
income for the
period
Dividend - - - - (422) (422) - (422)
Equity share - - - 7 - 7 - 7
options
Balance at 30 June 1,056 169 (582) 507 16,219 17,369 291 17,660
2012
Balance as at 1 1,056 169 (446) 500 15,494 16,773 231 17,004
January 2012
Revaluation of - - - - (456) (456) - (456)
investment
properties
Other income - - - - 1,751 (1,751) 245 1,996
statement
movements
Profit for the - - - - 1,295 1,295 245 1,540
year
Exchange - - (359) - - (359) (32) (391)
adjustment
Total - - (359) - 1,295 936 213 1,149
comprehensive
income for the
year
Dividend - - - - (422) (422) - (422)
Equity share - - - 28 - 28 - 28
options
Balance at 31 1,056 169 (805) 528 16,367 17,315 444 17,759
December 2012
Profit for the - - - - 1,063 1,063 108 1,171
year
Exchange - - (325) - - (325) (42) (367)
adjustment
Total - - (325) - 1,063 738 66 804
comprehensive
income for the
period
Dividend - - - - (422) (422) - (422)
Equity share - - - 30 - 30 - 30
options
Balance at 30 June 1,056 169 (1,130) 558 17,008 17,661 510 18,171
2013
ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS:
The results for the six months ended 30 June 2013 have been prepared in
accordance with International Financial Reporting Standards (IFRS). The
principal accounting policies applied are the same as those set out in the
Financial Statements for the year ended 31 December 2012.
1. Segmental analysis
For management purposes, the Group is organised into two operating Divisions,
Mining and Property. These Divisions are the primary basis on which the Group
reports its segment information. This is consistent with the way the Group is
managed and with the format of the Group's internal financial reporting.
Unaudited Unaudited Audited 31
30 June 30 June December
2013 2012 2012
Revenue
Mining 18,597 15,950 34,952
Property 484 489 957
Other 16 38 53
19,097 16,477 35,962
Operating profit
Mining 1,319 834 2,162
Property 270 339 210
Other (32) (18) 85
1,557 1,155 2,457
Share of profit/(loss) in 34 47 (137)
joint ventures
Interest receivable 154 122 281
Interest payable (170) (205) (411)
Profitbefore taxation 1,575 1,119 2,190
2. Taxation
Based on the results for the period:
Corporation tax at 23.5% (2012: 114 102 7
26.5%)
Prior year adjustment - UK (1) - -
113 102 7
Deferred taxation 291 (197) 643
404 (95) 650
3. Earnings per share
Both the basic and diluted earnings per share calculations are based on a
profit of £1,063,000 (2012: £1,147,000). The basic earnings per share has been
calculated on 10,556,839 (2012: 10,556,839) ordinary shares being in issue
during the year. The diluted earnings per share has been calculated on the
number of shares in issue of 10,556,839 (2012: 10,556,839) plus the dilutive
potential ordinary shares arising from share options of 155,712 (2012: 296,255)
totalling 10,712,551 (2012: 10,853,094).
4. Properties
Properties are included at valuation as at 31 December 2012 plus additions in
the period ended 30 June 2013.
5. Related Parties
The related parties and the nature of costs recharged are as disclosed in the
group's annual financial statements for the year ended 31 December 2012. The
group paid management fees of £68,750 (30 June 2012: £103,125, 31 December
2012: £172,000) to London & Associated Properties PLC, an associated company.
6. Financial information
The above financial information does not constitute statutory accounts within
the meaning of section 434 of the Companies Act 2006. The figures for the year
ended 31st December 2012 are based upon the latest statutory accounts, which
have been delivered to the Registrar of Companies; the report of the auditors
on those accounts was unqualified and did not contain a statement under Section
498(2) or (3) of the Companies Act 2006.
As required by the Disclosure and Transparency Rules of the UK's Financial
Services Authority, the interim financial statements have been prepared in
accordance with the International Financial Reporting Standards (IFRS) and in
accordance with both IAS 34 'Interim Financial Reporting' as adopted by the
European Union and the disclosure requirements of the Listing Rules.
The half year results have not been audited or subject to review by the
company's auditors.
The annual financial statements of Bisichi Mining PLC are prepared in
accordance with IFRS as adopted by European Union. The same accounting policies
are used for the six months ended 30 June 2013 as were used for the year ended
31 December 2012.
The assessment of new standards, amendments and interpretations issued but not
effective, are not anticipated to have a material impact on the financial
statements.
The largest area of estimation and uncertainty in the interim financial
statements is in respect of the directors' judgements and estimates surrounding
the life of mine and its reserves as well as to a lesser extent the valuation
of investment properties (which are not re-valued at the half year end). Other
areas of estimation and uncertainty are referred to in the group's annual
financial statements.
There is no material seasonal impact on the group's financial performance.
Taxes on income in the interim periods are accrued using tax rates expected to
be applicable to total annual earnings.
The interim financial statements have been prepared on the going concern basis
as the Directors are satisfied the group has adequate resources to continue in
operational existence for the foreseeable future.
7. Dividend
The interim dividend in respect of 2012, totalling £105,000 was paid on the 1st
of February 2013. The final dividend in respect of 2012, totalling £317,000 was
approved by the shareholders at the Annual General Meeting held on the 5th June
2013 and was paid on the 2nd August 2013. The final dividend in respect of 2012
is included as a liability in these interim financial statements.
A proposed interim dividend for the year ended 31 December 2013 totalling
£105,000 was approved by the Board of Directors on 28th August 2013 and has not
been included as a liability in these Interim Financial Statements.
8. Principal risks and uncertainties
The Group has an established risk management process which works within the
corporate governance framework as set out in the 2012 Annual Report and
Accounts. Risks and uncertainties identified by the Group are set out on page
11 of the 2012 Annual Report & Accounts and are reviewed on an ongoing basis.
There have been no significant changes in the first half of 2013 to the
principle risks and uncertainties as set out in the 2012 Annual Report &
Accounts.
The principal risks as stated in the accounts reflect the challenging
environment in which the business operates and are considered under the
following broad headings:
Mining:
- Coal price
- Coal washing process
- Health & safety
- Coal qualities
- Currency movements
- Regulatory requirements & permissions
- Transport
- Power supply
- Flooding
- Environment
- Labour
Property:
- Property valuation
- Occupancy
9. Board approval
These interim results were approved by the Board of Bisichi Mining on 28th
August 2013.
DIRECTORS RESPONSIBILITY STATEMENT AND REPORT ON PRINCIPAL RISKS AND UNCERTAINITIES
Responsibility Statement
We confirm to the best of our knowledge:
(a) the condensed set of financial statements have been prepared in accordance
with IAS 34 Interim Financial Reporting as adopted by the EU;
(b) the interim management report includes a fair review of the information
required by:
(1) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of
important events that have occurred during the first six months of the
financial year and their impact on the condensed set of financial statements;
and a description of the principal risks and uncertainties for the remaining
six months of the year; and
(2) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during the period; and any changes in the related
party transactions described in the last annual report that could do so.
Sir Michael Heller Andrew Heller
Chairman Managing Director
28 August 2013
DIRECTORS AND ADVISERS
Directors
Sir Michael A Heller MA, FCA (Chairman)
Andrew R Heller MA, ACA (Managing Director)
Robert Grobler PR Cert Eng (Mining Director)
Garrett Casey CA (SA) (Finance Director)
C A Joll MA (Non-executive)
John A Sibbald MA (Non-executive)
Secretary & Registered Office
Heather A Curtis ACIS
24 Bruton Place
London W1J 6NE
Black Wattle Colliery - Directors
Robert Corry (Chairman)
Andrew Heller (Managing Director)
Garrett Casey (Finance Director)
Robert Grobler (Mining Director)
Ethan Dube (Commercial Director)
General mine manager Luis Pinel
Registrars and transfer office
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Telephone 0871 664 0300
(Calls cost 10p per minute + network extras)
or +44 208 639 3399 for overseas callers
Website: www.capitaregistrars.com
E-mail: ssd@capitaregistrars.com
Company registration number 112155 (Incorporated in England and Wales)
Web site www.bisichi.co.uk
E-mail admin@bisichi.co.uk
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