Final Results

RNS Number : 5711Z

GCM Resources PLC

24 September 2009

 



Date: 24 September 2009

GCM RESOURCES PLC 

(AIM: GCM)

PRELIMINARY RESULTS 

FOR THE YEAR ENDED 30 JUNE 2009

GCM Resources plc remains fully committed to the Phulbari Coal Project ('the Project') in Bangladesh. The Company believes it can provide the fastest, lowest risk and most reliable means of delivering the commercial energy required to bring a step-change in electricity access and availability for the people of Bangladesh.  

Phulbari Project Update

The successful Parliamentary elections held in Bangladesh on 29 December 2008 brought to an end a period of almost two years during which the country was governed by Caretaker Governments under a state of emergency. These democratic elections returned a government with an overwhelming majority and which publicly recognises the importance of energy security to the future development of Bangladesh. The provision of power and energy, including the development of coal mines and coal-fired power generation, was one of the five priority issues in the manifesto of the incoming Government.  

Since the election, GCM has re-engaged and promoted the Project with the new Government and their advisors as they evaluate options to address the energy and electrical power shortfall that the country is experiencing.  GCM will continue to engage with the Government and other stakeholders to move the Project forward and will announce to the market any material developments of which it becomes aware.

Other Investments

GCM has investments in a number of other junior mining companies. During the 2009 financial year an interest in Polo Resources Limited was acquired for £2.8 million and joint venture activities with Aura Energy Limited in West Africa continued to be supported. In line with equity markets in general, and junior mining companies in particular, the value of listed investments has fallen from the highs experienced in mid-2008 but overall, their market value is still double the cash invested.  

Through all its investments, GCM aims to help bring about further economic and social development for all stakeholders. It aims to do this in a safe and sustainable way, paying full regard to the interests and concerns of local communities and the environment in which it operates.

Financial Review

The Group made a loss of £5.7 million after tax for the twelve months to 30 June 2009 (June 2008: profit of £0.9 million). An impairment charge of £5.4 million has been incurred, predominantly in relation to some of the Group's listed equity investments.  The profit for 2008 included £2.5 million profit on the deemed disposal of GCM's investment in CCEC Ltd on its takeover by Regent Pacific Group Limited.

Evaluation expenditure relating to the Phulbari Coal Project was £2.8 million for the year to 30 June 2009 (June 2008: £2.5 million).

As at 30 June 2009 GCM held cash of £1.4 million and listed equity investments of £20.2 million.  The combined value of cash and listed equity investments as of 23 September 2009 was £30.0 million, equivalent to 59p per GCM share.

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

  Consolidated Income Statement for year ended 30 June

		2009	2008
		£000	£000
Operating expenses
Exploration costs		353	139
Administrative expenses		1,578	1,806
Operating loss		(1,931)	(1,945)
Exceptional items		(5,563)	2,486
Finance revenue		188	742
(Loss)/profit before tax		(7,306)	1,283
Taxation		1,614	(419)
(Loss)/profit for the year		(5,692)	864
(Loss)/earnings per share
Basic (pence per share)		(11.2)p	1.8p
Diluted (pence per share)		(11.2)p	1.6p

Consolidated Statement of Changes in Equity for year ended 30 June 

	Share Capital	Share premium account	Other reserves	Accumulated losses	Total
	£000	£000	£000	£000	£000
Balance at 1 July 2007	4,881	42,731	4,073	(1,901)	49,784
Change in fair value of available-for-sale financial assets	-	-	31,587	-	31,587
Tax on items taken directly to equity	-	-	(8,148)	-	(8,148)
Transfer to income statement on disposal of available-for-sale financial assets	-	-	(2,486)	-	(2,486)
Share based payments	-	-	122	-	122
Profit for the financial year	-	-	-	864	864
Equity share warrants exercised	220	1,433	-	-	1,653
Balance at 30 June 2008	5,101	44,164	25,148	(1,037)	73,376
Change in fair value of available-for-sale financial assets	-	-	(26,958)	-	(26,958)
Available-for-sale financial assets impaired	-	-	4,430	-	4,430
Tax on items taken directly to equity	-	-	6,308	-	6,308
Share based payments	-	-	72	5	77
Loss for the financial year	-	-	-	(5,692)	(5,692)
Balance at 30 June 2009	5,101	44,164	9,000	(6,724)	51,541

Consolidated Balance Sheets as at 30 June 

		2009	2008
		£000	£000
Current assets
Cash and cash equivalents		1,355	10,047
Receivables		542	776
Total current assets		1,897	10,823
Non-current assets
Property, plant and equipment		173	241
Intangible assets		26,571	23,710
Financial assets		24,890	48,799
Total non-current assets		51,634	72,750
Total assets		53,531	83,573
Current liabilities
Payables		358	643
Total current liabilities		358	643
Non-current liabilities
Deferred tax liabilities		1,632	9,554
Total non-current liabilities		1,632	9,554
Total liabilities		1,990	10,197
Net assets		51,541	73,376
Equity
Share capital		5,101	5,101
Share premium account		44,164	44,164
Other reserves		9,000	25,148
Accumulated losses		(6,724)	(1,037)
Total equity		51,541	73,376

Consolidated Cash Flow Statement for year ended 30 June 

		2009	2008
		£000	£000
Cash flows from operating activities
Loss/profit before tax		(7,306)	1,283
Adjusted for:
Exceptional		5,563	(2,486)
Finance revenue		(188)	(742)
Other non cash expenses		21	15
		(1,910)	(1,930)
Movements in working capital:
(Increase) in operating receivables		(290)	(77)
(Decrease)/increase in operating payables		(257)	211
Cash used in operations		(2,457)	(1,796)
Interest received		226	770
Net cash used in operating activities		(2,231)	(1,026)
Cash flows from investing activities
Payments for property, plant and equipment		(19)	(19)
Payments for intangible assets		(2,745)	(2,172)
Payments for investments		(3,697)	(5,321)
Net cash used in investing activities		(6,461)	(7,512)
Cash flows from financing activities
Issue of ordinary share capital		-	1,653
Net cash generated by financing activities		-	1,653
Total decrease in cash and cash equivalents		(8,692)	(6,885)
Cash and cash equivalents at the start of the year		10,047	16,932
Cash and cash equivalents at the end of the year		1,355	10,047

The audited financial information for the years ended 30 June 2009 and 30 June 2008 contained in this document do not constitute statutory accounts as defined in the Companies Act 1985. The comparative financial information is based on the statutory accounts for the financial year ended 30 June 2008. 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 2009 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 a similar emphasis of matter paragraph on the Group's statutory financial statements for the year ended 30 June 2009.  The preliminary announcement was approved by the Board of Directors on 23 September 2009.

For further information:

GCM Resources plc Steve Bywater  Chief Executive   [phone] Graham Taggart Finance Director [phone]	Pelham  Charles Vivian  44 (0)207 337 1538 Klara Kaczmarek [phone]
J.P. Morgan Cazenove Nominated Adviser Michael Wentworth-Stanley  Steve Baldwin  [phone]

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

 

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