Preliminary Results for the year ended 30 Jun 2014

RNS Number : 8775W

GCM Resources PLC

12 November 2014

 

12 November 2014

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM) 

Preliminary Results for the year ended 30 June 2014

GCM Resources plc (AIM:GCM), a resource exploration and development company, is pleased to report its preliminary results for the year ended 30 June 2014.

Highlights:

·      Bangladesh has moved strongly towards coal as the primary source of power in the country, with plans for the development of coal-fired power plants generating 8,536 MW by 2021.

·      GCM continued its advocacy efforts with the Government of Bangladesh in communicating how the Phulbari Coal Project can promote national and regional benefits, as well as supporting the Government's plans to restructure the country's energy supply.

·      As a result of substantially reducing spend, GCM's loss for the year ended 30 June 2014 was £1.3 million (2013: loss of £3.2 million) and capitalised Project-related expenditure during the year was £0.8 million (2013: £1.9 million).

The Annual Report and Accounts for the year ended 30 June 2014 will be posted on the Company's website today (www.gcmplc.com) and will shortly be mailed to shareholders. Copies will also be available on request from the Company.

In the Chairman's Statement Michael Tang, Executive Chairman stated: "During the last twelve months, Bangladesh has gone through a period of considerable change. Throughout 2013 the country was dominated by the political activity leading up to the national election, which was held on 4 January 2014. During this period of uncertainty the Company undertook a substantial cost-reduction exercise, which resulted in 60% less cash spend than the previous financial year followed by a £2.3 million share placement. The combination of these measures ensured that GCM could continue throughout the 2014 financial year and into 2015.

"The first half of 2014 saw a renewal in Government activity following its re-election and renewed term of office. It has been very encouraging to see the positive steps that have been taken, including the Government's commitment to an increase in power production to 16,000MW by 2016 and 24,000MW by 2021, with coal being the main source of energy. The Company has continued its advocacy with Government ministers and officials in communicating how the Phulbari Coal Project (the "Project") can complement the objectives of the Government and promoting the national and regional benefits that the Project would deliver.

"As mentioned above, we have restructured operations from a cost perspective and I am pleased to advise that the loss for the year ended 30 June 2014 was £1.3 million, compared to £3.2 million in the previous financial year. Capitalised Project-related expenditure during the year was £0.8 million compared to £1.9 million in the last financial year. Whilst reducing costs has been a key focus for the Company, we have also ensured that the necessary expertise and resources are in place to continue pursuing Project approval.

"Going forward, the Company will continue to advocate development of the Project with the Government of Bangladesh and the benefits that the Project can bring to the country. Recognising the importance of partnering with local people, we will continue to build and maintain a constructive relationship with the project affected communities. GCM will also continue to look for other investment opportunities to enhance shareholder value.

"I would like to thank the Board, staff and advisers for all their hard work over the last year."

The Income Statement, Statement of Comprehensive Income, Statement of Changes in Equity, Balance Sheet and Cash Flow are presented on the following pages.

Consolidated Income Statement

For year ended 30 June

		2014	2013
		£000	£000
Operating expenses
Exploration and evaluation costs		(109)	(405)
Share based payments		(570)	(186)
Administrative expenses		(633)	(1,242)
Operating (loss)		(1,312)	(1,833)
Exceptional items		-	(864)
Finance revenue		10	-
(Loss) before tax		(1,302)	(2,697)
Taxation		-	(471)
(Loss) for the year		(1,302)	(3,168)
(Loss) per share
Basic (pence per share)		(2.2p)	(6.2p)
Diluted (pence per share)		(2.2p)	(6.2p)

 

Consolidated Statement of Comprehensive Income

For year ended 30 June

		2014	2013
		£000	£000
Loss for the year		(1,302)	(3,168)
Other comprehensive income
Items that may be reclassified to profit or loss:
Net loss on revaluation of available-for-sale financial assets		-	(2,825)
Transfer to income statement: sale of available-for-sale financial assets		-	662
Transfer to income statement: impairment of available-for-sale financial assets		-	202
Income tax relating to components of other comprehensive income		-	471
Total comprehensive loss		(1,302)	(4,658)

 

Consolidated Statement of Changes in Equity              

For year ended 30 June

	Share capital	Share premium account	Share based payments not settled	Net movement in available-for-sale investments	Accumulated losses	Total
	£000	£000	£000	£000	£000	£000
Balance at 1 July 2012	5,110	44,246	1,316	1,490	(10,200)	41,962
Total comprehensive loss	-	-	-	(1,490)	(3,168)	(4,658)
Shares issued during the year	5	12	-	-	-	17
Share based payments	-	-	(728)	-	280	(448)
Balance at 30 June 2013	5,115	44,258	588	-	(13,088)	36,873
Total comprehensive loss	-	-	-	-	(1,302)	(1,302)
Shares issued during the year	1,171	1,148	-	-	-	2,319
Share issue transaction costs	-	(120)	-	-	-	(120)
Share based payments	-	-	(3)	-	570	567
Balance at 30 June 2014	6,286	45,286	585	-	(13,820)	38,337

Consolidated Balance Sheet

As at 30 June

		2014	2013
		£000	£000
Current assets
Cash and cash equivalents		1,332	707
Receivables		64	178
Total current assets		1,396	885
Non-current assets
Property, plant and equipment		35	47
Intangible assets		37,153	36,393
Total non-current assets		37,188	36,440
Total assets		38,584	37,325
Current liabilities
Payables		(247)	(452)
Total current liabilities		(247)	(452)
Total liabilities		(247)	(452)
Net assets		38,337	36,873
Equity
Share capital		6,286	5,115
Share premium account		45,286	44,258
Other reserves		585	588
Accumulated losses		(13,820)	(13,088)
Total equity		38,337	36,873

 

Consolidated Cash Flow Statement

For year ended 30 June

		2014	2013
		£000	£000
Cash flows from/(used in) operating activities
(Loss) before tax		(1,302)	(2,697)
Adjusted for:
Exceptional items		-	864
Finance revenue		(10)	-
Share based payments		570	186
Other non-cash expenses		5	4
		(737)	(1,643)
Movements in working capital:
Decrease in operating receivables		114	125
(Decrease) in operating payables		(111)	(46)
Cash used in operations		(734)	(1,564)
Interest received		10	-
Net cash used in operating activities		(724)	(1,564)
Cash flows from/(used in) investing activities
Payments for property, plant and equipment		(1)	-
Payments for intangible assets		(849)	(2,502)
Proceeds from sale of investments		-	4,403
Net cash generated from/(used in) investing activities		(850)	1,901
Cash flows from/(used in) financing activities
Issue of ordinary share capital		2,319	17
Costs on issue of ordinary share capital		(120)	-
Net cash from financing activities		2,199	17
Total increase in cash and cash equivalents		625	354
Cash and cash equivalents at the start of the year		707	353
Cash and cash equivalents at the end of the year		1,332	707

 

The audited financial information for the years ended 30 June 2014 and 30 June 2013 contained in this document do not constitute statutory accounts as defined in the Companies Act 2006. The comparative financial information is based on the statutory accounts for the financial year ended 30 June 2013. Those accounts, upon which the auditors issued an unqualified opinion with an emphasis of matter paragraph, have been delivered to the Registrar of Companies. The financial information for the year ended 30 June 2014 has been extracted from the financial statements of GCM Resources plc which will be delivered to the Registrar of Companies in due course. The auditors have issued an unqualified opinion with emphasis of matter paragraphs on the Group's statutory financial statements for the year ended 30 June 2014. The preliminary announcement was approved by the Board of Directors on 12 November 2014.

For further information:

GCM Resources plc James Hobson CFO & Company Secretary  [phone]	Bell Pottinger Public Relations Lorna Cobbett / Joanna Boon [phone]
ZAI Corporate Finance Ltd Nominated Adviser and Broker Tom Price [phone]

GCM Resources plc
Tel: [phone]
[e-mail]; www.gcmplc.com

 

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