Interim Results

RNS Number : 7961O

Tiger Resource Finance PLC

25 September 2013

 



TIGER RESOURCE FINANCE PLC

INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2013

Operations Review

·      Net asset value per share at 30 June 2013 - 2.40p (30 June 2012 - 3.53p)

·      Total assets of £3.5 million as at 30 June 2013 (30 June 2012 £4.5 million)

A difficult market in the first half of the year saw the Company reporting a post tax profit of £31,989 (2012: £298,205). Unrealised losses in several stocks increased during the period following share price falls across the portfolio.

The period under review has not changed from previous reports issued over the last three years. The investment world has turned its back on commodity driven small companies and small cap stocks have continued to suffer major value loss, irrespective of their underlying fundamentals. The disenchantment with small cap resource companies is to a certain extent also being shared by the majors and many large mining companies have also suffered from internal upheaval often resulting in material write down of assets and restructured boards.

The bull run in larger cap stocks is still gathering momentum, although share price appreciation has more recently been challenged by the threatened tapering of monthly bond purchases by the US treasury.  We do not necessarily see this as a major issue, since the fundamentals for the tapering programme suggest that recovery is well on its way.  Similarly in Europe, economic fundamentals are improving but not at the speed we would all like to see.

Historically, at this juncture in the cycle we would reasonably expect price earnings ratios to be driven up to the point where investors start bottom fishing for better value. This is yet to happen but we do see signs of history repeating itself.  The recent change in legislation allowing the inclusion of AIM quoted stocks in ISA portfolios has been a major step in encouraging investment in smaller company stocks.

Our proactive investment in Xtract Resources PLC is showing signs of appreciation; the company recently appointed Jan Nelson, the previous Chief Executive Officer of Pan African Resources PLC as its Chief Executive Officer.   African Pioneer PLC is now positioned to take on new investments and the third entity incorporated as part of the pro-active strategy, Sovereign Energy PLC is currently in the embryonic stage.

Whilst it is difficult to be optimistic, when surrounded by negative influences, your board maintains a positive outlook towards Tiger's business plan and we are particularly directed toward proactive investment.

By order of the Board

24 September 2013

Portfolio Holdings as at 30 June 2013

Investments	Number	Cost	Valuation
African Eagle Resources PLC	1,241,174	112,264	1,551
Anglo American PLC	11,500	250,122	145,590
Ascent Resources PLC	9,642,857	400,824	79,554
Astar Minerals PLC	4,000,000	100,635	5,000
Aurum Mining PLC	8,333,333	250,218	208,333
BP PLC	58,500	249,743	264,045
ETFS Physical Platinum	2,250	246,458	190,424
Jubilee Platinum PLC	1,169,600	100,219	68,714
New World Oil and Gas PLC	5,000,000	250,218	33,750
Northern Petroleum PLC	294,118	250,519	89,706
PanContinental Oil and Gas PLC	885,714	97,827	26,633
Papua Mining PLC	230,000	101,200	172,500
Petroceltic International PLC	1,666,000	101,593	91,297
Praetorian Resources PLC	4000,000	200,218	86,000
Sovereign Mines of Africa PLC	2,000,000	100,000	42,500
Sunrise Resources PLC	665,000	6,650	3,491
Taipan Resources Inc.	310,000	98,262	45,555
Tertiary Minerals PLC	1,330,000	119,700	64,838
Trap Oil PLC	330,000	101,660	35,888
U3O8 Holdings PLC	4,166,666	125,000	-
Union Med Tech  PLC	625,000	37,500	9,063
Vatukoula Gold Mines PLC	150,000	112,500	9,368
Wentworth Resources PLC	220,000	104,174	125,217
Total		3,517,504	1,799,017

Note:

1)   The Company also holds an investment in Xtract Resources Plc. This investment has been classified as a Financial Asset at Fair Value through Profit or Loss and is valued at £810,344 on 30 June 2013.

2)   The Company incubated a subsidiary company, African Pioneer Plc in 2012.  Tiger currently holds 57,000,002 shares in African Pioneer Plc which trades on ISDX and are valued at 1 pence per share on 30 June 2013.

3)   The Company's investments in Xtract Resources Plc and African Pioneer Plc are not included in the investment table shown above.

 

Statement of Comprehensive Income

For the six months ended 30 June 2013          

	(Unaudited) Six months ended 30 June 13	(Unaudited) Six months ended 30 June 12	(Audited) Group Year ended 31 Dec 12
	£	£	£
Profit/(loss) on sale of available for sale assets	-	550,872	550,872
Income:
Investment income	10,846	-	8,483
Unrealised gain on financial assets at fair value through profit and loss	327,585	-	332,759
Interest receivable	3,191	8,313	13,253
Administrative expenses	(197,369)	(196,389)	(477,027)
Impairment	(112,264)	-	(244,905)
PROFIT/(LOSS) BEFORE TAXATION	31,989	362,796	183,435
Taxation	-	(64,591)	(3,700)
PROFIT/(LOSS) FOR THE PERIOD	31,989	298,205	179,735
Other Comprehensive Income
Available-for-sale financial assets unrealised (loss)	(869,238)	(209,491)	(666,398)
Reclassification to profit or loss	-	(298,179)	(298,179)
Transfer to Impairment	112,264	-	244,905
Tax relating to components of
other comprehensive income	-	126,454	32,292
OTHER COMPREHENSIVE LOSS FOR THE PERIOD, NET OF TAX	(756,974)	(381,216)	(687,380)
TOTAL COMPREHENSIVE PROFIT/ (LOSS) FOR THE PERIOD	(724,985)	(83,011)	(507,645)
Profit/(loss) for the period attributable to:
Shareholders of the Company	49,640	298,205	218,902
Non-controlling interest	(17,651)	-	(39,167)
	31,989	298,205	179,735
Basic earnings per share	0.04p	0.24p	0.17p
Diluted earnings per share	0.04p	0.24p	0.17p

All profits are derived from continuing operations.

Statement of Financial Position

As at 30 June 2013

	(Unaudited) Group 30 June 13	(Unaudited) Company 30 June 12	(Audited) Group 31 Dec 12
	£	£	£
NON CURRENT ASSETS
Financial assets at fair value through profit or loss	810,344	-	482,759
Available-for-sale investments	1,799,017	2,726,463	2,668,255
Deferred tax asset	-	94,162	-
	2,609,361	2,820,625	3,151,014
CURRENT ASSETS
Trade and other receivables	73,564	216,997	53,020
Cash and cash equivalents	810,666	1,480,298	1,066,888
	884,230	1,697,295	1,119,908
TOTAL ASSETS	3,493,591	4,517,920	4,270,922
EQUITY AND LIABILITIES
EQUITY ATTRIBUTABLE TO SHAREHOLDERS
Share capital	1,428,319	1,428,319	1,428,319
Share premium	1,597,231	1,597,231	1,597,231
Other components of equity	(131,195)	931,943	625,779
Retained earnings	426,389	456,052	376,749
EQUITY ATRIBUTABLE TO THE OWNERS	3,320,744	4,413,545	4,028,078
Equity interest of non-controlling interest	136,182	-	153,833
TOTAL EQUITY	3,456,926	4,413,545	4,181,911
NON CURRENT LIABILITES
Deferred tax liabilities	-	-	-
	-	-	-
CURRENT LIABILITIES
Trade and other payables	32,980	39,799	85,324
Corporate tax payable	3,685	64,576	3,687
	36,665	104,375	89,011
TOTAL LIABILITIES	36,665	104,375	89,011
TOTAL EQUITY AND LIABILITIES	3,493,591	4,517,920	4,270,922

Statement of Changes in Equity

As at 30 June 2013

                                                                                                     Other components of equity

	Share capital	Share premium	Capital redemption reserve	Other reserves	Available-for-sale financial assets	Share based reserves	Retained             earnings	Non-controlling interest	Total
	£	£	£	£	£	£	£	£	£
As at 1 January 2012	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
Changes in equity
Available-for-sale financial assets:
Current period gains (losses)	-	-	-		(456,907)	-	-	-	(456,907)
Profit (loss) for the period	-	-	-	(94,162)	-	-	(79,303)	39,167	(134,298)
Transfer to impairment	-	-	-	-	244,905	-	-		244,905
Acquisition of subsidiary	-	-	-	-	-	-	-	114,666	114,666
Total comprehensive income and expense for the period	-	-	-	(94,162)	(212,002)		(79,303)	153,833	(231,634)
Reserve movements	-	-	-	-	-	-	-	-	-
As at 31 Dec 2012	1,428,319	1,597,231	1,100,000	-	(604,339)	130,118	376,749	153,833	4,181,911
Changes in equity
Available-for-sale financial assets	-	-	-	-	(869,238)	-	-	-	(869,238)
Current period gains (losses)	-	-	-	-	-	-	-	-	-
Transfer to impairment	-	-	-	-	112,264	-	-	-	112,264
Profit (loss) for  the period	-	-	-	-	-	-	49,640	(17,651)	31,989
Total comprehensive income and expense for the period	-	-	-	-	(756,974)	-	49,640	(17,651)	(724,985)
Reserve movements	-	-	-	-	-	-		-	-
As at 30 June 2013	1,428,319	1,597,231	1,100,000	-	(1,361,313)	130,118	426,389	136,182	3,456,926

Cash Flow Statement

For the six months ended 30 June 2013

	(Unaudited) 30 June 13	(Unaudited) 30 June 12	(Audited) 31 Dec 12
	£	£	£
CASH FLOW FROM OPERATIONS
Profit/(loss) before taxation	31,989	362,796	183,435
Adjustment for:
Investment in subsidiary	-	-	193,000
Interest received	(3,191)	-	(13,253)
Dividends received	(10,846)	-	(8,483)
Operating profit/(loss) before movement in working capital	17,952	362,796	354,699
(Increase)/Decrease in receivables	(20,544)	(203,344)	(39,367)
Increase/(Decrease) in payables	(52,347)	(22,506)	23,021
Adjustment for (profit)/loss on sale of available for sale assets	-	(550,872)	(550,872)
Transfer to impairment	112,264	-	244,905
Increase in value of financial assets at fair value through profit or loss	(327,584)	-	(332,759)
NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES	(270,259)	(413,926)	(300,373)
TAXATION PAID		-	-
CASH FLOW FROM INVESTING ACTIVITIES
Sale of assets available for sale	-	765,642	765,642
Purchase of assets available for sale	-	(1,106,953)	(1,505,652)
Investment in investments designated as at fair value through profit or loss	-	-	(150,000)
Interest received	3,191	-	13,253
Dividends received	10,846	-	8,483
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	14,037	(341,311)	(868,274)
CASH FLOW FROM FINANCING ACTIVITIES
Purchase of shares (through exercise of share options)	-	197,000	197,000
NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES	-	197,000	197,000
Net increase/(decrease) in cash and cash equivalents in the period	(256,222)	(558,237)	(971,647)
Cash and cash equivalents at the beginning of the period	1,066,888	2,038,535	2038,535
Cash and cash equivalents at the end of the period	810,666	1,480,298	1,066,888

Selected notes to the consolidated financial statements

For the six months ended 30 June 2013

1.         Basis of preparation

The financial statements have been prepared under the historical cost convention except for the measurement of certain non-current asset investments at fair value. The measurement bases and principal accounting policies of the Group are set out below. The financial statements have been prepared using policies based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and endorsed by the European Union. These interim financial statements for the period ended 30 June 2013 have been prepared by applying the accounting policies adopted in the audited accounts for the year ended 31 December 2012. As permitted, the Group has chosen not to adopt IAS 34 "Interim Financial Reporting".

2.         Earnings Per Share    

Basic	Unaudited	Unaudited	Audited
	6 months to 30 June 2013	6 months to 30 June 2012	Year ended 31 December 2012
Profit after tax for the purpose of earnings per share	£49,640	£298,205	£218,902
Weighted average number of shares	138,331,939	131,898,405	131,898,405
Basic earnings per ordinary share	0.04p	0.24p	0.17p

Diluted
Profit after tax	£49,640		£298,205	£218,902
Weighted average number of shares	138,331,939		131,898,405	131,898,405
Diluted effect of options	-		-	-
Diluted weighted average  number of shares		138,331,939	131,898,405	131,898,405
Diluted earnings per ordinary share	0.04p		0.24p	0.17p

3.         Investments in Financial Assets at Fair Value through Profit or Loss

On 10 September 2012, Tiger Resource Finance PLC acquired 14.9 % of the voting rights of Xtract Resources PLC (formally Xtract Energy PLC,) a UK based natural resources exploration company quoted on AIM (XTR). 

The acquisition of the 344,827,584 shares in Xtract Resources PLC was paid for in cash at 0.0435 pence per Ordinary share. The investment has been revalued to fair value at year end to reflect the market value of 0.14 pence per share and at 30 June 2013 to reflect the market value of 0.23 pence.

	Unaudited 30 June 2013 £	Audited 31 December 2012             £
At 1 January	482,759	-
Additions	-	150,000
Adjustment to fair value	327,585	332,759
At 30 June 2013/31 December 2012	810,344	482,759

Selected notes to the consolidated financial statements

For the six months ended 30 June 2013

4.         Deferred Tax

On 30 June 2012 deferred tax asset of £94,162 was recognised arising from unrealised losses relating to available for sale assets. As at 30 June 2013 and 31 December 2012 the deferred tax asset has been netted off with the deferred tax liability arising from the unrealised gain relating to the Xtract Resources PLC investment resulting in a net deferred tax asset.  However, deferred tax assets are not recognised due to the unpredictability of future profit streams arising from the disposal of investments held by the Group.  Losses may be carried forward indefinitely and will only be recoverable if suitable profits arise in the future.

5.         Called Up Share Capital

The share capital of Tiger Resource Finance PLC consists only of fully paid ordinary shares with a nominal value of 1p each.  All shares are equally eligible to receive dividends and the repayment of capital and represent one vote at the shareholders' meeting of Tiger Resource Finance PLC.

	Unaudited 30 June  2013	Unaudited 30 June 2013	Unaudited 30 June 2012	Unaudited 30 June 2012	Audited 31 December 2012	Audited 31 December 2012
	Number	£	Number	£	Number	£
Authorised:
1,000,000,000 ordinary shares 1p each	1,000,000,000	10,000,000	1,000,000,000	10,000,000	1,000,000,000	10,000,000
At 1 January	142,831,939	1,428,319	127,071,939	1,270,719	127,071,939	1,270,719
Issued/(cancelled) during the year	-	-	15,760,000	157,600	15,760,000	157,600
Shares in issue at 31 December 2012 /30 June 2013	142,831,939	1,428,319	142,831,939	1,428,319	142,831,939	1,428,319

Included in allotted called and fully paid share capital are 4,500,000 shares with a nominal value of £45,000 held by the company in treasury. 

On 28 May 2012 the Company issued and allotted 15,760,000 new Ordinary shares of 1p each as a result of the exercise of options. Bruce Rowan and Colin Bird, both directors of the Company, exercised 10,000,000 and 5,760,000 options respectively at a strike price of 1.25 pence per ordinary share.

6.       Post-reporting date

No adjusting or significant non-adjusting events have occurred between the reporting date and the date of release of the Company interim financials.

 

END

 

 

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