Interim Results

RNS Number : 8233N

Path Investments plc

26 September 2019

 

26 September 2019

Path Investments plc

("Path" or the "Company")

Interim Results for the six months to 30 June 2019

Path Investments plc (TIDM: PATH), the natural resources investment company, announces its interim results for the six months to 30 June 2019.

Highlights

·      Sale of Legacy Turkish assets

·      Broadened focus on the acquisition of producing natural resource assets

·      Announcement of binding Share Purchase Agreement with FineGems Extraction Corporation

·      Appointment of PKF as auditors to the company

·      New website launched www.pathinvestmentsplc.com

·      Profit before tax £ 23,263 (H1 2018 loss before tax of £483,418)

·      Earnings per share 0.01p (H1 2018 loss 0.25 per share)

Commenting, Christopher Theis, Chief Executive of Path, said: "The first half of 2019 was an extremely busy time for the Company, culminating in our announcement, post the review period on 19 August 2019, of our intended purchase of FineGems Extraction Corporation. The proposed acquisition delivers on our corporate strategy; we are working tirelessly in these difficult times for the capital markets towards completion of the transaction."

Enquiries:

Path Investments plc Christopher Theis	020 3934 6630
Shard Capital (Broker and Financial Adviser) Simon Leathers Damon Heath	0207 186 9900
IFC Advisory (Financial PR & IR) Tim Metcalfe Zach Cohen	020 3934 6630

About Path Investments plc

The strategy of the Company is focused on delivering a material acquisition in natural resources production or near production assets with the objective of providing the Company's shareholders with access to a low risk and, over time, diversified portfolio which can offer a dividend stream as well as offering development potential for capital growth. The Directors are looking to create a diversified portfolio of assets that is mindful of the maturity of asset developments, life of income stream and the potential for growth, and a number of opportunities have been evaluated and developed. The Company is open to ideas but intends that the Reverse Takeover will be of a business that can act as the cornerstone for building a substantial group within the sector.

Chairman's Report

The sale of the legacy Turkish assets during the period under review marked the final chapter of the historic business.

Your board is investigating the appropriate method of returning the consideration received to deferred shareholders, mindful of the company's current negative reserves position. We expect to be in a position to say more on this shortly.

We are pleased with the progress that has been made since signing our binding Share Purchase Agreement with FineGems Extraction Corporation. Given the reverse takeover nature of the transaction, we intend to publish a prospectus during the final quarter of 2019 and are grateful of the support of our advisory team in this regard.

I encourage shareholders to visit our new website www.pathinvestmentsplc.com on a regular basis to keep abreast of developments.

Brent Fitzpatrick

Non-executive Chairman

26 September 2019

Financial Review

For the six months to 30 June 2019, the Company recorded a profit before tax of £23,263. There was no revenue in the period.

Cash flow

As at 30 June 2019 the Company held cash of £14,756 in the bank account.

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2019

	Notes	Six months ended 30 June	Six months ended 30 June	Year ended 31 December
		2019	2018	2018
		Unaudited	Unaudited	Audited
		£	£	£
Administrative expenses	3	(376,800)	(483,492)	(965,608)
Total administrative expenses		(376,800)	(483,492)	(965,608)
Operating loss		(376,800)	(483,492)	(965,608)
Other income		400,000	-	-
Finance income		63	74	81
Finance cost		-	-	(93,533)
Profit/(loss) on ordinary activities before taxation		23,263	(483,418)	(1,059,060)
Tax on profit/(loss) on ordinary activities		-	-	-
Profit/(loss) for the period and total comprehensive (loss)/profit for period		23,263	(483,418)	(1,059,060)
Earnings/(loss) per share (pence)
- Basic & diluted	4	0.01	(0.25)	(0.54)

All operating income and operating gains and losses relate to continuing activities.

STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2019

	Share Capital	Share Premium	Retained earnings	Total
	£	£	£	£
As at 1 January 2019	8,979,767	25,413,617	(35,466,144)	(1,072,760)
Comprehensive income Loss for the period	-	-	23,263	23,263
As at 30 June 2019	8,979,767	25,413,617	(35,442,881)	1,049,497

	Share Capital	Share Premium	Retained earnings	Total
	£	£	£	£
As at January 2018	8,979,767	25,413,617	(34,407,084)	(13,700)
Comprehensive income Loss for the period	-	-	(1,059,060)	(1,059,060)
As at 31 December 2018	8,979,767	25,413,617	(35,466,144)	(1,072,760)

	Share Capital	Share Premium	Retained earnings	Total
	£	£	£	£
As at 1 January 2018	8,979,767	25,413,617	(34,407,084)	(13,700)
Comprehensive income Profit for the period	-	-	(483,418)	(483,418)
Issue of share capital	-	-	-	-
As at 30 June 2018	8,979,767	25,413,617	(34,890,502)	(497,118)

The Share Capital represents the nominal value of the equity shares.

The Share Premium represents the amount subscribed for share capital, in excess of the nominal amount, less costs directly relating to the issue of shares.

The Share Based Payments reserve represents the fair value of the equity settled share option scheme.

The Retained Earnings reserve represents the cumulative net gains and losses less distributions made.

Statement of financial position

FOR THE SIX MONTHS ENDED 30 JUNE 2019

	Notes	As at 30 June 2019	As at 30 June 2018	As at 31 December 2018
		Unaudited	Unaudited	Audited
		£	£	£
ASSETS
Current assets
Trade and other receivables		-	-	2,220
Cash and cash equivalents		14,756	30,734	473
		14,756	30,734	2,693
LIABILITIES
Current liabilities
Trade and other payables	5	(1,064,253)	(527,852)	(1,075,453)
Net Current Liabilities		(1,049,497)	(497,118)	(1,075,453)
NET LIABILITIES		(1,049,497)	(497,118)	(1,072,760)
SHAREHOLDERS' EQUITY
Called up share capital	6	195,943	195,943	195,943
Deferred shares	6	8,783,824	8,783,824	8,783,824
Share premium account		25,413,617	25,413,617	25,413,617
Retained earnings		(35,442,881)	(34,890,502)	(35,466,144)
TOTAL EQUITY		(1,049,497)	(497,118)	(1,072,760)

statement of cash flows

FOR THE SIX MONTHS ENDED 30 JUNE 2019

		Six months to 30 June 2019	Six months to 30 June 2018	Year ended 31 December 2018
		Unaudited	Unaudited	Audited
		£	£	£
Operating loss		(376,800)	(483,492)	(965,608)
Decrease in debtors		2,220	8,978	6,758
(Decrease)/increase in creditors within one year		(11,200)	345,669	893,270
Convertible loan note interest		-	-	(93,000)
Net cash outflow from operating activities		(385,780)	(128,845)	(158,580)
Cash flows from investing activities
Investment income		400,000	-	-
Interest received		63	74	81
Finance costs		-	-	(533)
Net cash generated from investing activities		400,063	74	(452)
Net increase/(decrease) in cash and cash equivalents		14,283	(128,771)	(159,032)
Cash and cash equivalents at beginning of period		473	159,505	159,505
Cash and cash equivalents at end of period		14,756	30,734	473

NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2019

1.         GENERAL INFORMATION

Path Investments Plc is a public limited company incorporated in the United Kingdom, registered under company number 04006413. The address of the registered office is Aston House, Cornwall Avenue, London, N3 1LF. The principal activity of the Company is the investment in oil and gas production and development assets.

2.         ACCOUNTING POLICIES

2.1    Basis of preparation

The financial statements are presented in UK Sterling and all values are rounded to the nearest pound except where indicated otherwise.

The financial statements have been prepared under the historical cost convention or fair value where appropriate. 

The results for the six months to 30 June 2019 have been prepared on the basis of the accounting policies set out in the company's 2018 annual report and accounts. The interim accounts do not constitute statutory accounts as defined by section 434 of the Companies Act 2006. The auditor has reported on the 2018 accounts and the report was unqualified and did not contain a statement under section 498(2) of (3) of the Companies Act 2006. The company's 2018 report and accounts have been filed with the registrar of companies.

During the period, there have been no changes in the nature of the related party transactions from those described in the company's 2018 accounts.

The results for the six months are unaudited.

2.2       Responsibility statement

The directors confirm that these condensed interim financial statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting", as adopted by the European Union and as issued by the IASB and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely;

a)    An indication of the important events that have occurred during the first six months 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 financial year; and

b)    Material related party transactions in the first six months and any material changes in related party transactions described in the last annual report.

3.         ADMINISTRATIVE EXPENSES

	Six months to 30 June 2019	Six months to 30 June 2018	Year ended 31 December 2018
	Unaudited	Unaudited	Audited
	£	£	£
Directors remuneration	98,031	131,960	268,896
Other administrative expenses	278,769	351,532	696,712
	376,800	483,492	965,608

Included in Directors remuneration for the period ended 30 June 2018 are accrued salaries of £77,031 (June 2018 £95,781, December 2018: £210,718).

4.         LOSS PER SHARE

The calculation of the basic and diluted loss per share is based on the loss on ordinary activities after taxation of and on the weighted average number of ordinary shares in issue.

There was no dilutive effect from the share options or convertible loan notes outstanding during the period.

In order to calculate the diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares according to IAS33. Dilutive potential ordinary shares include convertible loan notes and share options granted to Directors and consultants where the exercise price (adjusted according to IAS 33) is less than the average market price of the Company's ordinary shares during the period.

	Six months to 30 June 2019	Six months to 30 June 2018	Year ended 31 December 2018
	Unaudited	Unaudited	Audited
	£	£	£
Net profit/(loss) for the period	23,263	(483,418)	(1,059,060)
The weighted average number of shares in the period were:
Basic and dilutive ordinary shares	195,943,802	195,943,802	195,943,802
Basic and dilutive earnings/(loss) per share (pence)	0.01	(0.25)	(0.54)

5.         TRade and other payables

	As at 30 June 2019	As at 30 June 2018	As at 31 December 2018
	Unaudited	Unaudited	Audited
		£	£
Trade payables	246,785	168,319	369,939
Other payables	173,934	68,000	193,956
Accruals and deferred income	643,534	291,533	511,558
	1,064,253	527,852	1,075,453

6.         SHARE Capital

			Unaudited	Unaudited	Unaudited	Unaudited
Allotted, called up and fully paid			no	£	no	£
			Ordinary Shares of 0.1p each	Ordinary Shares of 0.1p each	Deferred Share of 39.9p each	Deferred Share of 39.9p each
At 1 January 2018 and as at 30 June 2018 (unaudited), (December 2018 (audited) and June 2019 (unaudited)			195,943,802	195,943	22,014,596	8,783,824

 

END

 

 

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