Half Yearly Report

RNS Number : 3309N

Tiger Resource Finance PLC

27 September 2012

 



TIGER RESOURCE FINANCE PLC

INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2012

Operations Review

§  Net Asset Value per share at 30 June 2012 - 3.53p (30 June 2011: 4.00p)

§  Total assets of £4.5m as at 30 June 2012 (30 June 2011: £6.9m which includes £1.875m subsequently returned to shareholders pursuant to a tender offer completed in October 2011)

During the period under review, the Company realised gains of £550,872.  The sale of an investment in Nautical Petroleum Plc produced a gain of £398,429 and the sale of the Ophir Energy Plc position realised a gain of £152,443 in the six month period to 30 June 2012. New investments totalling £1,106,953 were made in Anglo American Plc, BP Plc, Pan Pacific Aggregates Plc, PanContinental Oil and Gas NL, Papua Mining Plc, Petroceltic International Plc, Trap Oil Plc and Wentworth Resources Plc.

The period under review has maintained a similar pattern to that of the previous two years being characterised by immense volatility within all sectors.  The volatility is being caused by political and fiscal news which is unnerving the investment community. Dominating the uncertainty is the debate concerning the Euro, will it survive or will it die?  If the single currency collapses then the knock-on effects are thought to be catastrophic in the short-term and will most certainly also be difficult to manage.  Should the Euro survive, many are asking the question as to what the costs will be and there are predictions of civil unrest in some of the southern European countries within the Eurozone.

If there is a satisfactory solution, lurking in the background is the Israeli-Iran situation, a Chinese slow down and the possibility of a stalled American growth scenario add further uncertainty to the global economic growth picture.  Everybody has varied views on these issues and access to information is greater and quicker than ever before.  It could be argued that too much information is available since critical issues are often resolved somewhat differently to the anticipated outcomes and these outcomes are often not as simple as those predicted by the media.

The small cap sector has been the biggest victim of this uncertainty and investor appetite to buy stock or participate in equity placings of smaller companies is possibly at an all-time low.  Current predictions are that if the aforementioned conditions prevail for much longer, there will be considerable erosion of small company presence in the public markets.  This situation is not confined to the resource industry but is endemic to all smaller companies trying to operate and raise finance in the small cap sector.

Tiger and its management team's philosophy has in the past concentrated on "stock picking" in the resource sector and the Company has enjoyed some considerable success in identifying stocks that have appreciated significantly in value in relatively short periods.  The Directors now believe that "stock picking" is made much more difficult by the duress that companies are experiencing, with less effort given to rolling out their business plans and more in keeping "the lights on" and maintain their listings in good standing. 

We have recently embarked on a refined investment strategy as indicated in the 2011 Annual Report and approved by shareholders at the annual general meeting on 19 June 2012. Since then, the Board of Tiger have incorporated and progressed two cash shells, one of which is expected to be admitted to PLUS Markets in the coming weeks, covering the mining and oil and gas sectors respectively.  We have also taken a significant equity interest in Xtract Energy Plc ("Xtract") where we have appointed a Tiger Director on the company's Board.  The first of the two cash shells, African Pioneer plc, will be utilised to either acquire or receive by way of a reverse transaction a substantial mineral project based in sub-Sahara Africa.  The Directors firmly believe that base metals will maintain their strong demand and as such will direct the asset search in the direction of base metals.  We will also use our significant contact base and "in-house" expertise to participate in new oil and gas deals through Xtract and we also look forward to admitting our second cash shell to PLUS Market to avail of a potential single or regional oil and gas opportunity.

The extension of our investment mandate to include active management of several quoted companies where both Tiger and in some situations, individual Directors of the Company jointly hold equity positions with the Company will, we believe, significantly enhance value for Tiger shareholders and it is a model that we intend to roll out aggressively in the months ahead.

By Order of the Board

27 September 2012

Portfolio Holdings as at 30 June 2012

Investments	Number	Cost £	Valuation £
African Eagle Resources PLC	1,241,174	112,264	37,235
Anglo American PLC	11,500	250,122	240,120
Ascent Resources PLC	9,642,857	400,824	221,786
Aurum Mining PLC	8,333,333	250,218	241,667
BP PLC	58,500	249,743	246,812
ETFS Physical Platinum	2,250	246,458	201,015
New World Oil and Gas	5,000,000	250,218	500,000
Northern Petroleum	294,118	250,519	191,177
Astar Minerals PLC	4,000,000	100,635	76,000
PanContinental Oil and Gas	885,714	97,827	100,086
Papua Mining PLC	230,000	101,200	106,950
Petroceltic International PLC	1,666,000	101,593	108,290
Sovereign Mines of Africa	2,000,000	100,000	98,000
Sunrise Resources PLC	665,000	6,650	43,225
Tertiary Minerals	1,330,000	119,700	81,130
Trap Oil PLC	330,000	101,660	62,040
U3O8 Holdings	4,166,666	125,000	12,500
Union Med Tech  PLC	625,000	37,500	12,500
Vatukoula Gold Mines plc	150,000	112,500	42,750
Wentworth Resources PLC	220,000	104,174	103,180
Total		3,118,805	2,726,463

 

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2012  

	(Unaudited) Six months ended 30 June 12	(Unaudited) Six months ended 30 June 11	(Audited) Year ended 31 Dec 11
	£	£	£
Profit/(loss) on sale of available for sale assets	550,872	304,696	304,696
Income:
Investment income	-	447	447
Interest receivable	8,313	8,639	14,669
Administrative expenses	(196,389)	(207,143)	(374,599)
Impairment	-	-	-
PROFIT/(LOSS) BEFORE TAXATION	362,796	106,639	(54,787)
Taxation	(64,591)	(30,000)	-
PROFIT/(LOSS) FOR THE PERIOD	298,205	76,639	(54,787)
Other Comprehensive Income Available-for-sale financial assets
Unrealised (loss)	(209,491)	(882,829)	(1,114,341)
Reclassification to profit or loss	(298,179)	(298,189)	(298,189)
Tax relating to components of
other comprehensive income	126,454	330,685	395,508
OTHER COMPREHENSIVE LOSS FOR THE PERIOD, NET OF TAX	(381,216)	(850,333)	(1,017,022)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD	(83,011)	(773,694)	(1,071,809)
Basic earnings per share	0.24p	0.04p	(0.03)p
Diluted earnings per share	0.24p	0.04p	(0.03)p

All profits are derived from continuing operations.

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2012

	(Unaudited) 30 June 12	(Unaudited) 30 June 11	(Audited) 31 Dec 11
	£	£	£
NON CURRENT ASSETS
Financial assets
Available-for-sale investments	2,726,463	2,573,661	2,341,950
Deferred tax asset	94,162	-	-
	2,820,625	2,573,661	2,341,950
CURRENT ASSETS
Trade and other receivables	216,997	12,879	13,653
Cash and cash equivalents	1,480,298	4,336,972	2,038,535
	1,697,295	4,349,851	2,052,188
TOTAL ASSETS	4,517,920	6,923,512	4,394,138
EQUITY AND LIABILITIES
EQUITY ATTRIBUTABLE TO SHAREHOLDERS
Share capital	1,428,319	1,770,719	1,270,719
Share premium	1,597,231	1,557,831	1,557,831
Other components of equity	931,943	979,848	1,313,159
Retained earnings	456,052	2,292,428	157,847
TOTAL EQUITY	4,413,545	6,600,826	4,299,556
NON CURRENT LIABILITES
Deferred tax liabilities	-	97,115	32,292
	-	97,115	32,292
CURRENT LIABILITIES
Trade and other payables	39,799	38,694	62,305
Corporate tax payable	64,576	186,877	(15)
	104,375	225,571	94,582
TOTAL LIABILITIES	104,375	322,686	94,582
TOTAL EQUITY AND LIABILITIES	4,517,920	6,923,512	4,394,138

STATEMENT OF CHANGES IN EQUITY

AS AT 30 JUNE 2012

                                                                                                     Other components of equity

	Share capital	Share premium	Capital redemption reserve	Other  reserves	Available-for-sale financial assets	Share based reserves	Retained             earnings	Total
	£	£	£	£	£	£	£	£
As at 1 January 2011	2,020,719	1,557,831	350,000	(427,800)	1,527,863	130,118	2,215,789	7,374,520
Changes in equity
Available-for-sale financial assets
Current period gains (losses)	-	-	-	-	(882,829)	-	-	(882,829)
Reclassification to profit or loss	-	-	-	-	(298,189)	-	-	(298,189)
Tax relating to components of other comprehensive income	-	-	-	330,685	-	-	-	330,685
Profit (loss) for the period	-	-	-	-	-	-	76,639	76,639
Total comprehensive income and expense for the period Reserve movements	-	-	-	330,685	(1,181,018)	-	76,639	(773,694)
Cancellation of shares held in treasury	(250,000)	-	250,000	-	-	-	-	-
As at 30 June 2011	1,770,719	1,557,831	600,000	(97,115)	346,845	130,118	2,292,428	6,600,826
Changes in equity
Available-for-sale financial assets
Current period gains (losses)	-	-	-		(231,512)	-	-	(231,512)
Reclassification to profit or loss	-	-	-		-	-	-	-
Tax relating to components of other comprehensive income	-	-	-	64,823	-	-	-	64,823
Profit (loss) for the period	-	-	-	-	-	-	(131,426)	(131,426)
Total comprehensive income and expense for the period	-	-	-	64,823	(231,512)		(131,426)	(298,115)
Reserve movements
Cancellation of shares held in treasury	(500,000)	-	500,000			-
Purchase of own shares	-	-	-	-	-	-	(1,875,000)	(1,875,000)
Cost relating to purchase of own shares	-	-	-	-	-	-	(128,155)	(128,155)
As at 31 Dec 2011	1,270,719	1,557,831	1,100,000	(32,292)	115,333	130,118	157,847	4,299,556
Changes in equity
Available-for-sale financial assets
Current period gains (losses)	-	-	-	-	(209,491)	-	-	(209,491)
Reclassification to profit or loss	-	-	-	-	(298,179)	-	-	(298,179)
Tax relating to components of other comprehensive income	-	-	-	126,454	-	-	-	126,454
Profit (loss) for the period	-	-	-	-	-	-	298,205	298,205
Total comprehensive income and expense for the period	-	-	-	126,454	(507,670)	-	298,205	(83,011)
Reserve movements
Share options exercised	157,600	39,400	-	-	-	-	-	197,000
As at 30 June 2012	1,428,319	1,597,231	1,100,000	94,162	(392,337)	130,118	456,052	4,413,545

CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2012

	(Unaudited) 30 June 12	(Unaudited) 30 June 11	(Audited) 31 Dec 11
	£	£	£
CASH FLOW FROM OPERATIONS
Profit/(loss) before taxation	362,796	106,639	(54,787)
(Increase)/Decrease in receivables	(203,344)	3,560	2,986
Increase/(Decrease) in payables	(22,506)	(7,887)	15,724
Adjustment for (profit)/loss on sale of available for sale assets	(550,872)	(304,696)	(304,696)
NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES	(413,926)	(202,384)	(340,773)
TAXATION PAID	-	-	(156,892)
CASH FLOW FROM INVESTING ACTIVITIES
Sale of assets available for sale	765,642	664,455	664,454
Purchase of assets available for sale	(1,106,953)	(660,605)	(660,605)
Adjustment for additional investment  income	-	-	-
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	(341,311)	3,850	3,849
CASH FLOW FROM FINANCING ACTIVITIES
Share buy-back programme	-	-	(1,875,000)
Share buy - Tender Offer expenses	-	-	(128,155)
Purchase of shares (through exercise of share options)	197,000	-	-
NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES	197,000	-	(2,003,155)
Net increase/(decrease) in cash and cash equivalents in the period	(558,237)	(198,534)	(2,496,971)
Cash and cash equivalents at the beginning of the period	2,038,535	4,535,506	4,535,506
Cash and cash equivalents at the end of the period	1,480,298	4,336,972	2,038,535

Interim Report - Notes
1	The financial information for the six months ended 30 June 2012 and 30 June 2011 is unaudited. The interim accounts have been prepared using the same accounting policies that were used in the Group's statutory accounts to 31 December 2011. In the opinion of the directors the financial information for these periods represents fairly the financial position, operations and cash flows for the period in conformity with International Financial Reporting Standard (IFRS). The interim statement for the six months ended 30 June 2012 was approved by the directors on 27 September 2012.
2	The financial information for the year ended 31 December 2011 does not constitute full accounts, it is an extraction from the Company's accounts for the year in which they have been delivered to the Registrar of Companies and on which the auditors gave an unqualified report.
3	Earnings per ordinary share included in the Income Statement and the NAV calculation is based on weighted average number of shares of 125,198,606.
4	Copies of this interim report are available to the public, free of charge, from 4th Floor,            2 Cromwell Place, London SW7 2JE, during normal office hours. A copy will also be posted on Tiger Resource Finance plc's website www.tiger-rf.com.

 

END

 

 

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