Final Results

Bisichi Mining PLC 11 March 2002 11th March 2002 BISICHI MINING PLC Preliminary results - 31st December 2001 2001 2000 Turnover: £4,060,000 £3,695,000 Profit before tax and goodwill amortisation and after minorities £324,000 £218,000 Earnings per share: 1.52 p 0.61 p Net assets per share 67.3 p 66.3 p • Significant improvement in the performance of Black Wattle Colliery • Bisichi Mining is now one of the major producers of low phosphorous coal in South Africa, a commodity much in demand • New coal reserves acquired • New prices for the coal, effective from January 2002, offset SA Rand devaluation Commenting, Michael Heller, chairman of Bisichi Mining said: 'The combination of a strong performance from our South African coal mine, the prospects for growth in that performance and the strength of the UK retail property portfolio, despite uncertain economic and political times, allows me to view the prospects for 2002 with considerable confidence.' END For further information, please call: Andrew Heller, Bisichi Mining PLC 020 7415 5000 Chairman's Statement I am pleased to report to shareholders that Bisichi Mining has made a profit before tax and goodwill amortisation, but after minority interests, of £324,000 for the year to 31st December 2001 (2000: £218,000). Earnings per share have increased from 0.61p to 1.52p an increase of 149%. This is a very substantial improvement on the results your company achieved in 2000 and arises from the management-driven improvement in the performance of Black Wattle Colliery, the company's direct mining operation in South Africa. These direct mining activities continue to be underpinned by the strong performance of our UK retail property portfolio. Shareholders' funds now stand at £6.88 million (2000: £6.74 million) and this increase would have been greater had the company's balance sheet not had to absorb £0.29 million arising from the severe devaluation of the South African Rand in the second half of the year. Direct mining and mining investments The company's mining activities are detailed in the Mining Report. However, in this statement, I would like to draw shareholders' attention to a number of strategic achievements that have been made by your company in South Africa. Firstly, since Bisichi Mining acquired control of Black Wattle Colliery, the management has had to contend with a series of challenges. It is considerably to the credit of both our London and South African based teams that not only have they dealt with these problems but that, despite them, they have achieved a situation where, today, Black Wattle Colliery is one of the major producers in South Africa of low phosphorous coal, a type of coal that is very much in demand. Secondly, when your company acquired Black Wattle Colliery it was a coal mine with limited prospects. We believed that the decline could be reversed and prospects improved. As a result of complex and often difficult negotiations, Black Wattle Colliery has acquired new reserves. Lastly, although the sharp decline in the value of the South African Rand has impacted on the balance sheet value of our South African investment, coal is ultimately a US Dollar valued commodity and the management team has managed to negotiate very substantial price increases for our coal from January 2002. These increases have offset the decline in the value of the local currency. The operating profit from our mining division increased in the year under review by £100,000 and we believe that this is only the beginning. Mineral Products Limited, a wholly owned subsidiary of Bisichi Mining, continues to manage an equity portfolio with a weighting in mineral and natural resources stocks. This portfolio also provides us with an easily accessible cash reserve. Property Bisichi Mining's property portfolio of fully let shopping centres is managed for a fee by London & Associated Properties PLC. It was valued at 31st December 2001, by independent chartered surveyors, at £8.08 million (£7.78 million) an increase of 4% over the previous year. Bisichi Mining also owns, jointly with London & Associated Properties, Dragon Retail Properties. Dragon Retail's property portfolio was independently valued at 31st December 2001 at £6.18 million (£5.25 million). During the year under review Dragon Retail made or contracted to make property sales of £2.18 million and purchases of £1.36 million. Dividend Your directors are recommending the maintenance of the final dividend of 1p per share which is one and a half times covered by profit. Prospects Although we live in uncertain economic and political times, I view the prospects for Bisichi Mining in 2002 with considerable confidence. Finally, and on behalf of all shareholders, I would like to thank all our employees both in the UK and South Africa for their continuing commitment to your company. MICHAEL HELLER Chairman MINING REVIEW BLACK WATTLE COLLIERY Bisichi Mining's direct mining in 2001 was concentrated on Black Wattle Colliery, the Company's coal mine in South Africa. It was a year of expansion for the mine in terms of both production and reserves as detailed below. Production This was the first full year of mining in which we have operated three underground sections on a 2-shift basis. As a result of this, the monthly coal production in 2001 increased to 65,000 tons per month from the 44,000 tons per month average achieved in 2000. In 2002, our policy is to maintain and even increase those levels of production and so reduce the mining cost per ton. To help in achieving this objective, all future rebuilds of our mining equipment will be undertaken by a contractor working offsite, allowing our engineering department to concentrate on maintenance and minor repairs underground. At the same time, we are in the process of acquiring additional underground machinery to support further the operating machines in the 3 existing sections. Marketing & Pricing The demand for Black Wattle's coal has remained strong throughout the year and, as we continue to expand, we already have purchase commitments in place for our future coal production at good prices. The decline in the value of the South African Rand has various effects on our business, in particular with regard to pricing. Because coal is ultimately an international commodity priced in US Dollars, as the Rand has declined so the price of our coal has increased. This benefits not only our mining operation but the South African coal industry as a whole. Ore reserves During the year, we completed the acquisition of a reserve to the South, following the acquisition we made last year to the West. Prospects The expansion of the mine detailed above is due in no small measure to the efforts of Mr Sipho Dube, our South African director and partner, and to Mr Robert Grobler, our General Mine Manager with his staff and employees. Against this background we look forward to 2002 with confidence. BOB MACKILLIGIN ANDREW HELLER Bisichi Mining PLC Preliminary Consolidated Profits Statement Year Ended 31st December 2001 2001 2000 £000 £000 Note Turnover 4,060 3,695 Operating costs (3,711) (3,406) Operating profit 349 289 Income from interests in joint venture 70 37 Exceptional items in respect of fixed assets 1 4 (14) Interest receivable 5 4 Interest payable (208) (234) Profit on ordinary activities before taxation 220 82 Taxation on profit on ordinary activities 2 (80) (69) Profit after taxation 140 13 Minority interest 19 51 Profit for the financial year 159 64 Dividends (105) (105) Retained profit (loss) for the financial year 54 (41) Earnings per share 3 1.52 p 0.61p Dividend per share 4 1.00 p 1.00p Turnover and operating profit for the year derive from continuing operations, which are made up as follows: Turnover Operating profit 2001 2000 2001 2000 £000 £000 £000 £000 Mining 3,298 2,900 129 28 Goodwill amortised - - (85) (85) 3,298 2,900 44 (57) Property 733 716 296 331 Share dealing 22 72 5 12 Other investments 7 7 4 3 Group 4,060 3,695 349 289 Bisichi Mining PLC Consolidated Balance Sheet at 31st December 2001 2001 2000 £000 £000 Fixed assets Intangible assets 216 301 Tangible assets 8,632 8,714 Investments 1,109 924 9,957 9,939 Current assets Stocks 13 31 Debtors 575 492 Investments at cost - (market value £624,000(2000: £606,000)) 474 424 Bank balances 64 88 1,126 1,035 Creditors - amounts falling due within one year (2,405) (2,249) Net current liabilities (1,279) (1,214) Total assets less current liabilities 8,678 8,725 Creditors - amounts falling due after one year (1,904) (2,131) Deferred taxation (16) (12) Minority interest 121 162 6,879 6,744 Capital and reserves Share capital 1,045 1,045 Revaluation reserve 5,403 5,100 Other reserves 86 86 Retained earnings 345 513 Shareholders' funds 6,879 6,744 Statement of total recognised gains and losses: The company 132 80 Subsidiaries and associated undertaking 27 (16) Profit for the year 159 64 Revaluation of investment properties - company 268 418 - joint venture 101 95 Exchange adjustments (288) (84) Total gains recognised in period 240 493 Bisichi Mining PLC Consolidated Cash Flow Statement Year ended 31st December 2001 2001 2000 £000 £000 Net cash inflow from operating activities 736 631 Dividend from joint venture 40 - Returns on investments and servicing of finance Interest received 5 4 Interest paid (201) (234) (196) (230) Taxation Corporation tax paid (76) (59) Capital expenditure and financial investment Payments to acquire fixed assets (274) (329) Payments to acquire current asset investments (52) (48) Receipts from sale of fixed assets 11 17 Receipts from sale of current asset investments 7 56 (308) (304) Equity dividends paid (105) (105) Cash inflow (outflow) before financing 91 (67) Financing Loans (repaid) drawn (134) 10 (Decrease) in cash for the year (43) (57) Reconciliation of net cash flow to movement in net debt: (Decrease) in cash in the year (43) (57) Net cash flow from changes in debt 134 (10) 91 (67) Net debt at 1st January 2001 (2,954) (2,887) Net debt at 31st December 2001 (2,863) (2,954) Reconciliation of operating profit to net cash inflow from operating activities: Operating profit 349 289 Depreciation charges 214 246 Goodwill amortised 85 85 Provision against current asset investment - 4 Profit on sale of current asset investments (5) (16) Decrease in stock 9 71 Increase in debtors (209) (183) Increase in creditors 293 135 736 631 Analysis of net debt: At 1st At 31st January Exchange December 2001 Cash flow adjustment 2001 £000 £000 £000 £000 Bank balances 88 (10) (14) 64 Overdrafts (838) (33) 17 (854) (750) (43) 3 (790) Debt due within one year (73) (108) 12 (169) Debt due in after one year (2,131) 242 (15) (1,904) (2,954) 91 - (2,863) NOTES 2001 2000 £000 £000 1. Exceptional items Arising in respect of fixed assets - profit (loss) from disposals 4 (14) 2. Taxation Based on results for the year: Corporation tax at 30% (2000: 30%) 53 72 Prior year adjustment - UK (3) (12) - Overseas 10 - Deferred taxation 4 - 64 60 Joint venture 16 9 80 69 3. Earnings per share These have been calculated on 10,451,506 (2000: 10,451,506) Ordinary shares being the number of shares in issue during the year and the Profit for the financial year attributable to holders of ordinary shares of £159,000 (2000: £64,000). 4. Dividend The proposed final dividend of 1.00p will be paid on 19 August 2002 to shareholders registered at the close of business on 26 July 2002. 5. The figures for the year ended 31st December 2000 are based on the audited accounts for that year, which have been delivered to the Registrar of Companies and on which the Auditors gave an unqualified report. The statutory accounts for the year ended 31st December 2001, which have been prepared using the same accounting policies as in 2000, have been completed and an unqualified audit opinion will be issued. The figures in the preliminary announcement are an extract and do not constitute statutory accounts within the meaning of the Companies Act 1985. This preliminary statement was approved by the board on 8 March 2002. This information is provided by RNS The company news service from the London Stock Exchange

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