Final Results

RNS Number : 6002J

Critical Metals PLC

23 December 2020

 

Critical Metals plc / EPIC: CRTM / Market: Main Market / Sector: Closed End Investments

23 December 2020

Critical Metals plc ("Critical Metals" or the "Company")

Final Results

Critical Metals plc, a mining investment company established to target opportunities in the overlooked and under-analysed mining sector, is pleased to announce its Final Results for the year ended 30 June 2020. A copy of this announcement and the Annual Report for the year ended 30 June 2020 will be made available on the Company's website at www.criticalmetals.co.uk.

Chairman's Statement

I am pleased to present the financial statements for the year ended 30 June 2020.

After navigating through a long public listing process during which the markets experienced significant volatility amidst BREXIT negotiations, the UK elections and the Covid-19 pandemic, we are delighted to present our first financial statements as a public company.

When considering the global macro-environmental uncertainties regarding supply and demand in the critical metals sector, the need to identify and invest in the stable supply of metals that will allow economies to operate and grow becomes increasingly evident. Critical Metals' strategy is to search for acquisition opportunities in the natural resources sector on known deposits and more specifically minerals that are perceived to have strategic importance to future economic growth. With this in mind, after listing the Board evaluated a large number of potential targets and has now narrowed down its search to a smaller number which it believes have the potential to produce any combination of cobalt, copper, niobium, tantalum, titanium, or vanadium and that meet its stringent investment criteria. Preliminary discussions are on going with these exciting opportunities and we look forward to providing further updates if material developments occur. 

Any transaction would be deemed a Reverse Take Over ('RTO') and we would expect funding of any transaction to be from existing cash resources or the raising of additional capital. 

Looking forward, I am very excited about what 2021 might hold for Critical Metals and hope that it will be a year of significant growth for the Company as we look to advance our strategy and build value for shareholders.

Financial

Funding

The Company is funded through investment from its shareholders, having successful raised £140,000 since incorporation to 30 June 2020. Subsequent to year end, the Company completed its Standard Listing IPO onto the London Stock Exchange on 29 September 2020, raising £800,000 before costs.

Revenue

The Company has generated no revenue during the year, however is focussing on acquisition targets that will ultimately generate revenue for the Company.

Expenditure

During the year, the Company progressed with its listing on the London Stock Exchange and focussed its expenditure on this process, with very minimal expenditure unrelated to the listing being incurred.

Liquidity, cash and cash equivalents

At 30 June 2020, the Company held £62,072 (2019: £52,468) which is all denominated in pounds sterling.

Dividend

The Directors do not intend to declare a dividend in respect of the period under review (2019: £nil).

Russell S. Fryer

Director

22 December 2020

For further information on the Company please visit www.criticalmetals.co.uk or contact:

Russell Fryer	Critical Metals plc	Tel: [phone]
Rory Murphy / James Bellman	Strand Hanson Limited Financial Adviser	Tel: [phone]
Lucy Williams / Heena Karani	Peterhouse Capital Limited, Corporate Broker	Tel: [phone] Tel: [phone]
Catherine Leftley / Beth Melluish	St Brides Partners Ltd, Financial PR	Tel: [phone]

About Critical Metals

Critical Metals was formed as an investment company and intends to make equity investments into operators or near-term production operators within the natural resources development and production sector in the continent of Africa. It is envisaged that such acquisition or acquisitions will trigger a reverse takeover in accordance with the listing rules. The Company intends to search initially for acquisition opportunities in the natural resources sector on known deposits and more specifically minerals that are perceived to have strategic importance to future economic growth. Commodities such as antimony, beryllium, cobalt, copper, fluorspar, gold, rare earth elements, tin, tungsten, titanium, and vanadium have been identified by several governments as "critical minerals" and so guaranteeing supplies is seen as a strategic necessity. The Company therefore believes that the market conditions for these minerals will remain strong in the short-to-long term.

 

Statement of Comprehensive Income

	Notes	Year ended 30 June 2020  £		Period ended 30 June 2019 - restated  £
Revenue
Revenue from continuing operations		-		-
		-		-
Expenditure
Costs associated with listing	5	(72,172)		(65,934)
Other expenses		(26,121)		(7,300)
	5	(98,293)		(73,234)
Loss on ordinary activities before taxation		(98,293)		(73,234)
Taxation on loss on ordinary activities		-		-
Loss and total comprehensive income for the year attributable to the owners of the company		(98,293)		(73,234)
Earnings per share (basic and diluted) attributable to the equity holders (pence)	8	(0.69)		(0.66)

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

 

Statement of Financial Position

	Notes		30 June 2020  £		30 June 2019 - restated £
CURRENT ASSETS
Trade and other receivables	9		417		4,536
Cash at bank and in hand	10		62,072		52,468
			62,489		57,004
TOTAL ASSETS			62,489		57,004
CURRENT LIABILITIES
Trade and other payables	11		94,016		10,238
TOTAL LIABILITIES			94,016		10,238
NET (LIABILITIES) / ASSETS			(31,527)		46,766
EQUITY
Called up share capital	12		71,428		68,571
Share premium account	12		68,572		51,429
Retained earnings			(171,527)		(73,234)
TOTAL EQUITY			(31,527)		46,766

Statement of Changes in Equity

	Notes	Issued Share Capital		Share Premium		Retained Earnings		Total Equity
		£		£		£		£
Balance at incorporation (30 May 2018)		-		-		-		-
Shares issued during the period		68,571		51,429		-		120,000
Total comprehensive loss for the period - restated		-		-		(73,234)		(73,234)
As at 30 June 2019 - restated		68,571		51,429		(73,234)		46,766
Shares issued during the period		2,857		17,143		-		20,000
Total comprehensive loss for the period		-		-		(98,293)		(98,293)
As at 30 June 2020		71,428		68,572		(171,527)		(31,527)

Share capital	Amount subscribed for share capital at nominal value.
Share premium	Amount subscribed for share capital in excess of nominal value.
Retained earnings	Cumulative other net gains and losses recognised in the financial statements.

 

Statement of Cashflow

		30 June 2020  £		30 June 2019 - restated £
Cash from operating activities
Loss for the year		(98,293)		(73,234)
Adjustments for:
Operating cashflow before working capital movements
Decrease / (increase) in trade and other receivables		4,119		(4,536)
(Decrease) / increase in trade and other payables		83,778		10,238
Net cash used in operating activities		(10,396)		(67,532)
Cash from financing activities
Proceeds on the issue of shares		20,000		120,000
Net cash from financing activities		20,000		120,000
Net increase in cash and cash equivalents		9,604		52,468
Cash and cash equivalents at being of year		52,468		-
Foreign exchange		-		-
Cash and cash equivalents at end of period	10	62,072		52,468

Notes to the Financial Statements

1.  General Information

Critical Metals plc ('the "Company'') looks to identify potential companies, businesses or asset(s) that have operations in the natural resources exploration, development and production sector.

The Company is domiciled in the United Kingdom and incorporated and registered in England and Wales as a public limited company.  The Company's registered office is The Broadgate Tower, 20 Primrose Street, London UK, EC2A 2EW. The Company's registered number is 11388575.

2.  Accounting policies

The principal accounting policies applied in preparation of these financial statements are set out below. These policies have been consistently applied unless otherwise stated.

2.1.  Basis of preparation

The financial information for the period ended 30 June 2020 has been prepared by Critical Metals Plc ("the Company") under applicable International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU") and those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.

2.2.  Going concern

The financial information has been prepared on a going concern basis, which assumes that the Company will continue to meet its liabilities as they fall due.

With the cash balance at year coupled with the £800,000 (before costs) raised following the successful admission to the London Stock Exchange subsequent to year end, the Company has sufficient financial resources to enable it to continue to seek and identify a suitable acquisition, however upon completion of a, still yet to be identified, acquisition, may need to raise additional capital. As a consequence, the directors believe that the Company is well placed to manage its business risks successfully despite the current uncertain economic outlook.

The directors note that COVID-19 has had a significant negative impact on the global economy. Having prepared budgets and cash flow forecasts covering the going concern period which have been stress tested for the negative impact of possible scenarios from COVID-19, coupled with the successful raise of £800,000 before expenses subsequent to year end, the Directors believe the Group has sufficient resources to meet its obligations for a period of at least 12 months from the date of approval of these financial statements. Discretionary expenditure will be curtailed, if necessary, in order to preserve cash for working capital purposes.

After making enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

2.3.  Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, and demand deposits with banks and other financial institutions.

2.4.  Equity

Share capital is determined using the nominal value of shares that have been issued.

The Share premium account includes any premiums received on the initial issuing of the share capital. Any transaction costs associated with the issuing of shares are deducted from the Share premium account, net of any related income tax benefits.

Equity-settled share-based payments are credited to a share-based payment reserve as a component of equity until related options or warrants are exercised or lapse.

Retained losses includes all current and prior period results as disclosed in the income statement.

2.5.  Foreign currency translation

The financial information is presented in Sterling which is the Company's functional and presentational currency.

Transactions in currencies other than the functional currency are recognised at the rates of exchange on the dates of the transactions.  At each balance sheet date, monetary assets and liabilities are retranslated at the rates prevailing at the balance sheet date with differences recognised in the Statement of comprehensive income in the period in which they arise.

2.6.  Financial instruments

IFRS 9 requires an entity to address the classification, measurement and recognition of financial assets and liabilities.

a)  Classification

The Company classifies its financial assets in the following measurement categories:

· those to be measured subsequently at fair value (either through OCI or through profit or loss);

· those to be measured at amortised cost; and

· those to be measured subsequently at fair value through profit or loss.

The classification depends on the Company's business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will be recorded either in profit or loss or in OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI).

b)  Recognition

Purchases and sales of financial assets are recognised on trade date (that is, the date on which the Company commits to purchase or sell the asset). Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership.

c)  Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset.

Transaction costs of financial assets carried at FVPL are expensed in profit or loss.

Debt instruments

Amortised cost: Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest, are measured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as a separate line item in the statement of profit or loss.

Equity instruments

The Company subsequently measures all equity investments at fair value. Where the Company's management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other income when the Company's right to receive payments is established. Changes in the fair value of financial assets at FVPL are recognised in other gains/(losses) in the statement of profit or loss as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value.

d)  Impairment

The Company assesses, on a forward looking basis, the expected credit losses associated with any debt instruments carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

2.7.  Equity

Share capital is determined using the nominal value of shares that have been issued.

The Share premium account includes any premiums received on the initial issuing of the share capital. Any transaction costs associated with the issuing of shares are deducted from the Share premium account, net of any related income tax benefits.

Equity-settled share-based payments are credited to a share-based payment reserve as a component of equity until related options or warrants are exercised or lapse.

Based on IFRS 2, for equity-settled share-based payment transactions, the entity shall measure the goods or services received, and the corresponding increase in equity, directly, at the fair value of the goods or services received, unless that fair value cannot be estimated reliably. The fair value of the service received in exchange for the grant of options and warrants is recognised as an expense. If the entity cannot estimate reliably the fair value of the goods or services received, the entity shall measure their value, and the corresponding increase in equity, indirectly, by reference to the fair value of the equity instruments granted.  The seed warrants issued to the investors and directors in raising private equity funds is not within the scope of IFRS 2 and accounting policy mentioned doesn't apply.

Retained losses includes all current and prior period results as disclosed in the income statement.

2.8.  Taxation

Tax currently payable is based on taxable profit for the period. Taxable profit differs from profit as reported in the income statement because it excludes items of income and expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial information and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised. Deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

2.9.  Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial information in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. To date, there are no critical accounting judgements and key sources of estimation uncertainty affecting the Company.

2.10.  New standards, amendments and interpretations

The Company have adopted all of the new and amended standards and interpretations issued by the International Accounting Standards Board that are relevant to its operations and effective for accounting periods commencing on or after 1 July 2019, which are not expected to impact the Company as they are either not relevant to the Company's activities or require accounting which is consistent with the Company's current accounting policies.

2.11.  New standards and interpretations not yet adopted

At the date of approval of these financial statements, the following standards and interpretations which have not been applied in these financial statements were in issue but not yet effective (and in some cases had not been adopted by the EU):

· Amendments to References to Conceptual Framework in IFRS Standards - effective from 1 January 2020

· Definition of Material (Amendments to IAS 1 and IAS 8) - effective from 1 January 2020

· Amendment to IFRS 3 Business Combinations - effective 1 January 2020*

· Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current - effective 1 January 2022*

*subject to EU endorsement

The effect of these new and amended Standards and Interpretations which are in issue but not yet mandatorily effective is not expected to be material.

3.  PRIOR YEAR RESTATEMENT

The Company identified costs in the current year that were associated with the period ended 30 June 2019 which have been restated in the prior period. These costs were primarily related to the accrual of the 30 June 2019 audit fees of £3,500 and other various costs for £3,790

There was no revenue generated in the year (2019: nil).

4.  Segmental analysis

The Company manages its operations in one segment, being seeking a suitable investment. The results of this segment are regularly reviewed by the board as a basis for the allocation of resources, in conjunction with individual investment appraisals, and to assess its performance.

5.  operating loss

This is stated after charging:

	30 June 2020         £	30 June 2019 -  restated   £
Costs associated with the listing	(72,172)		(65,934)
Auditors remuneration	(14,000)		(3,500)
Other expenses	(12,121)		(3,800)
	(98,293)		(73,234)

6.  Employees

The average number of persons employed by the Company (including directors) during the period ended 30 June 2020 was:

	2020  No of  employees		2019 No of  employees
Management	3		3
	3		3

The aggregate payroll costs of these persons were as follows:	2020   £		2019   £
Wages and salaries	-		-
Social security costs	-		-
	-		-

The directors are not accruing any salary until the completion of the Admission to the London Stock Exchange through an IPO.

7.  Taxation

		As at 2020   £		As at 2019 - restated   £
The charge / credit for the year is made up as follows:
Corporation taxation on the results for the year		-		-
Taxation charge / credit for the year		-		-
A reconciliation of the tax charge / credit appearing in the income statement to the tax that would result from applying the standard rate of tax to the results for the year is:
Loss per accounts		(98,293)		(73,234)
Tax credit at the standard rate of corporation tax in the UK of 19% (2019: 19%)		(18,676)		(13,914)
Other tax adjustments		18,676		13,914
		-		-

The Company has total carried forward losses of £167,737 (2019: £73,234). The taxed value of the unrecognised deferred tax asset is £31,870 (2019: £13,914) and these losses do not expire. No deferred tax assets in respect of tax losses have not been recognised in the accounts because there is currently insufficient evidence of the timing of suitable future taxable profits against which they can be recovered.

8.  EARNINGS per share

The calculation of the basic and diluted earnings per share is calculated by dividing the profit or loss for the year by the weighted average number of ordinary shares in issue during the year

		2020	2019
Loss for the year from continuing operations - £		98,293	73,234
Weighted number of ordinary shares in issue		13,787,666	11,092,352
Basic earnings per share from continuing operations - pence		(0.71)	(0.66)

There is no difference between the diluted loss per share and the basic loss per share presented. Share options and warrants could potentially dilute basic earnings per share in the future but were not included in the calculation of diluted earnings per share as they are anti-dilutive for the year presented. See note 24 for further details.

9.  TRADE AND OTHER RECEIVABLES

	30 June 2020   £	30 June 2019
Prepayments	417		-
Other debtors	-		4,536
	417		4,536

10.  Cash at bank and in hand

	30 June 2020   £		30 June 2019   £
Cash at bank	62,072		52,468
	62,072		52,468

11.  TRADE AND OTHER PAYABLES

	30 June 2020   £		30 June 2019 - restated   £
Trade payables	762		420
Other payable and accruals	93,254		9,818
	94,016		10,238

Within other payables and accruals in 2020 relates to £45,000 received in advance of the listing on the London stock exchange which was completed subsequent to year end.

12.  Share capital and share premium

	Number of Shares on Issue	Share  Capital	Share Premium   £	Total   £
Ordinary shares of £0.005 each issued at par on 30 May 2018	10,000,000	50,000	-	50,000
Ordinary shares of £0.005 each issued at par on 29 January 2019	2,000,000	10,000	-	10,000
Ordinary shares of £0.005 each issued at £0.035 on 16 April 2019	1,714,286	8,571	51,429	60,000
Balance at 30 June 2019	13,714,286	68,571	51,429	120,000
Ordinary shares of £0.005 each issued at par on 14 May 2020	571,428	2,857	17,143	20,000
Balance at 30 June 2020	14,285,714	71,428	68,572	140,000

The Company has only one class of share. All ordinary shares have equal voting rights and rank pari passu for the distribution of dividends and repayment of capital.

13.  SHARE OPTIONS

(i)  Share options or warrants

On 16 April 2019, the Company issued 1,714,286 new shares of 0.005p each for cash at 0.035p each to raise £60,000 (gross). In connection with that seed placing, the Company issued 1,714,286 warrants to the places on the basis of one warrant for every one Ordinary shares subscribed pursuant to the seed placing, valid for 24 months from Admission to subscribe for ordinary shares at 0.05p per share - the seed warrants. These are considered to be investor warrant and in accordance with IFRS 2 are not fair valued.

On 14 May 2020, the Company issued 571,428 new shares of 0.005p each for cash at 0.035p each to raise £20,000 (gross) from director, Russell Fryer. In connection with that seed placing, the Company issued 571,428 warrants to Russell Fryer on the basis of one warrant for every one Ordinary shares subscribed pursuant to the seed placing, valid for 24 months from Admission to subscribe for ordinary shares at 0.05p per share - the seed warrants. T

The number and weighted average exercise price of share options and warrants are as follows:

		2020			2019
		Weighted average exercise price	Number of options		Weighted average exercise price		Number of options
Outstanding at the beginning of the year		-	-		-	-
Granted during the year (Share options)		5p	2,285,714		-	-
Outstanding at the end of the year		5p	2,285,714		-	-
Exercisable at the end of the year		-	-		-	-

14.  Financial Instruments and Risk Management

Fair Value Measurements Recognised in the Statement of Financial Position

The following provides an analysis of the Company's financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 & 2 based on the degree to which the fair value is observable.

· Level 1 fair value measurements are those derived from inputs other than quoted prices that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

· Level 2 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

· Level 3 assets are assets whose fair value cannot be determined by using observable inputs or measures, such as market prices or models. Level 3 assets are typically very illiquid, and fair values can only be calculated using estimates or risk-adjusted value ranges.

General objectives and policies

The overall objective of the Board is to set policies that seek to reduce as far as practical without unduly affecting the Company's competitiveness and flexibility. Further details regarding these policies are:

Policy on financial risk management

The Company's principal financial instruments comprise cash and cash equivalents, other receivables, trade and other payables. The Company's accounting policies and methods adopted, including the criteria for recognition, the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are set out in note 1 - "Accounting Policies".

The Company does not use financial instruments for speculative purposes. The carrying value of all financial assets and liabilities approximates to their fair value.

Derivatives, financial instruments and risk management

The Company does not use derivative instruments or other financial instruments to manage its exposure to fluctuations in foreign currency exchange rates, interest rates and commodity prices.

Foreign currency risk management

The Company has very limited transactional currency exposures as all operations currently undertaken are based in the UK.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties. The Company's exposure and the credit ratings of its counterparties are monitored by the Board of Directors  to ensure that the aggregate value of transactions is spread amongst approved counterparties.

The Company applies IFRS 9 to measure expected credit losses for receivables, these are regularly monitored and assessed. Receivables are subject to an expected credit loss provision when it is probable that amounts outstanding are not recoverable as set out in the accounting policy. The impact of expected credit losses was immaterial.

The Company's principal financial assets are cash and cash equivalents and other receivables. Cash equivalents include amounts held on deposit with financial institutions.

The credit risk on liquid funds held in current accounts and available on demand is limited because the Company's counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

No financial assets have indicators of impairment.

The Company's maximum exposure to credit risk is limited to the carrying amount of financial assets recorded in the financial statements.

Borrowings and interest rate risk

The Company currently has no borrowings. The Company's principal financial assets are cash and cash equivalents and other receivables. Cash equivalents include amounts held on deposit with financial institutions. The effect of variable interest rates is not significant.

Liquidity risk

During the period ended 30 June 2019 and year ended 30 June 2020, the Company was financed by cash raised through equity funding. Funds raised surplus to immediate requirements are held as short-term cash deposits in Sterling.

The maturities of the cash deposits are selected to maximise the investment return whilst ensuring that funds will be available as required to maintain the Company's operations.

In managing liquidity risk, the main objective of the Company is to ensure that it has the ability to pay all of its liabilities as they fall due. The Company monitors its levels of working capital to ensure that it can meet its liabilities as they fall due.

The table below shows the undiscounted cash flows on the Company's financial liabilities on the basis of their earliest possible contractual maturity.

	Total   £	Within 2 months   £	Within 2-6 months   £
At 30 June 2020
Trade payables	762	762	-
Other payable and accruals	89,464	44,464	45,000

	Total   £	Within 2 months   £	Within 2-6 months   £
At 30 June 2019
Trade payables	420	420	-
Other payable and accruals	9,818	9,818	-

Capital management

The Company considers its capital to be equal to the sum of its total equity. The Company monitors its capital using a number of key performance indicators including cash flow projections, working capital ratios, the cost to achieve development milestones and potential revenue from partnerships and ongoing licensing activities.

The Company's objective when managing its capital is to ensure it obtains sufficient funding for continuing as a going concern. The Company funds its capital requirements through the issue of new shares to investors.

15.  FINANCiaL ASSETS AND FINANCIAL LIABILITIES

2020		Financial assets at fair value through profit or loss	Financial assets at amortised cost	Financial liabilities at amortised cost	Total
Financial assets / liabilities		£	£'	£	£
Trade and other receivables		-	-	-	-
Cash and cash equivalents		-	62,072	-	62,072
Trade and other payables		-	-	(94,016)	(94,016)
		-	62,072	(94,016)	(31,944)

2019		Financial assets at fair value through profit or loss	Financial assets at amortised cost	Financial liabilities at amortised cost	Total
Financial assets / liabilities		£	£'	£	£
Trade and other receivables		-	4,536	-	4,536
Cash and cash equivalents		-	52,468	-	52,468
Trade and other payables		-	-	(10,238)	(10,238)
		-	57,004	(10,238)	46,766

16.  Related party transactions

There were no related party transactions.

17.  Events subsequent to year end

Subsequent to year end, the Company completed the successful Admission to the London Stock Exchange on 29 September 2020 with 16,015,000 Ordinary Shares being issued by the Company. 16,000,000 ordinary shares were issued upon the raising of £800,000 for the Company before expenses and 15,000 shares were also issued in lieu of cash settlement of commission payable.

As part of the Placement, one warrant exercisable at £0.10 within 24 months of Admission for every shares subscribed for (including the shares issued in lieu of cash settlement), resulting in 16,015,000 Placement Warrants being issued by the Company.

Additionally, 1,314,201 warrants exercisable at £0.10 and 1,000,000 warrants exercisable at £0.05, within 24 months of Admissions were issued to various consultants and advisors to the Company in connection with the Admission.

 

END

 

 

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