Preliminary Results for year

RNS Number : 4611T

GCM Resources PLC

29 September 2010

 



GCM Resources plc 

(AIM:GCM)

29th September 2010

Preliminary Results for the twelve months ended 30 June 2010

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

·      The energy crisis in Bangladesh continues to worsen, highlighting the need for a significant increase in electricity generating capacity.  Load shedding has been averaging 8 to 12 hours per day and power shortages continue to adversely affect industry, business and daily life.  The existing generating capacity is being augmented by temporary rental diesel and heavy fuel oil powered generators although progress towards a targeted rental capacity of 1,300 MW is very slow.

·      To deliver longer term solutions, the energy budget has been increased by over 40% and the Government has prioritised the development of new power plants.  In December 2009 and January 2010 the Government hosted road-shows in London, New York and Singapore, and another in Dhaka in May 2010 to attract external investment into the Bangladesh energy sector.  In February 2010 a joint venture was signed with an Indian state owned power company to carry out a feasibility study for a 1,300 MW coal fired power station at Khulna, in southern Bangladesh.

·      GCM's discussions with the Government have moved onto the detail of Project implementation and continue to progress.  GCM remains ready to move the Project forward when it receives approval for its Scheme of Development. 

·      As at 30 June 2010 GCM held cash of £0.9 million and listed equity investments of £21.8 million (June 2009: cash £1.4 million, listed investments £20.2 million).  On 27 August 2010 GCM received a dividend from Polo Resources Limited of £2.2 million.

·      The Group made a loss of £3.2 million after tax for the year to 30 June 2010 (30 June 2009: loss of £5.7 million).  Evaluation expenditure relating to the Phulbari Coal Project was £3.2 million for the year to 30 June 2010 (30 June 2009: £2.9 million).

·      GCM disposed of its holding in Regent Pacific Group Limited and 1.9 million shares in Coal of Africa Limited for combined profit of £2.3 million.  An impairment charge of £4.7 million has been incurred in relation to the investment in PeoplesTel. 

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

		2010	2009
		£000	£000
Operating expenses
Exploration and evaluation costs		463	353
Administrative expenses		1,435	1,578
Operating (loss)		(1,898)	(1,931)
Exceptional items		(2,399)	(5,563)
Finance revenue		29	188
(Loss) before tax		(4,268)	(7,306)
Taxation		1,054	1,614
(Loss) for the year		(3,214)	(5,692)
(Loss) per share
Basic and diluted (pence per share)		(6.3)p	(11.2)p

Consolidated Statement of Comprehensive Income For Year Ended 30 June

		2010	2009
		£000	£000
(Loss) for the year		(3,214)	(5,692)
Other comprehensive income
Net gain/(loss) on revaluation of available-for-sale financial assets		5,256	(26,958)
Transfer to income statement: sale of available-for-sale financial assets		(2,294)	-
Transfer to income statement: impairment of available-for-sale financial assets		-	4,430
Income tax relating to components of other comprehensive income		(829)	6,308
Total comprehensive income		(1,081)	(21,912)

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 2008	5,101	44,164	843	24,305	(1,037)	73,376
Loss for the year	-	-	-	-	(5,692)	(5,692)
Other comprehensive income	-	-	-	(16,220)	-	(16,220)
Total comprehensive income	-	-	-	(16,220)	(5,692)	(21,912)
Share based payments	-	-	72	-	5	77
Balance at 30 June 2009	5,101	44,164	915	8,085	(6,724)	51,541
Loss for the year	-	-	-	-	(3,214)	(3,214)
Other comprehensive income	-	-	-	2,133	-	2,133
Total comprehensive income	-	-	-	2,133	(3,214)	(1,081)
Shares issued during the year	2	20	-	-	-	22
Share based payments	-	-	429	-	8	437
Balance at 30 June 2010	5,103	44,184	1,344	10,218	(9,930)	50,919

Consolidated Balance Sheet As At 30 June

		2010	2009
		£000	£000
Current assets
Cash and cash equivalents		891	1,355
Receivables		409	542
Total current assets		1,300	1,897
Non-current assets
Property, plant and equipment		116	173
Intangible assets		29,765	26,571
Financial assets		21,790	24,890
Total non-current assets		51,671	51,634
Total assets		52,971	53,531
Current liabilities
Payables		644	358
Total current liabilities		644	358
Non-current liabilities
Deferred tax liabilities		1,408	1,632
Total non-current liabilities		1,408	1,632
Total liabilities		2,052	1,990
Net assets		50,919	51,541
Equity
Share capital		5,103	5,101
Share premium account		44,184	44,164
Other reserves		11,562	9,000
Accumulated losses		(9,930)	(6,724)
Total equity		50,919	51,541

Consolidated Cash Flow Statement For Year Ended 30 June

		2010	2009
		£000	£000
Cash flows used in operating activities
(Loss) before tax		(4,268)	(7,306)
Adjusted for:
Exceptional items		2,399	5,563
Finance revenue		(29)	(188)
Other non cash expenses		22	21
		(1,876)	(1,910)
Movements in working capital:
Decrease/(increase) in operating receivables		133	(290)
Increase/(decrease) in operating payables		34	(257)
Cash used in operations		(1,709)	(2,457)
Interest received		3	226
Net cash used in operating activities		(1,706)	(2,231)
Cash flows from/(used in) investing activities
Payments for property, plant and equipment		(11)	(19)
Proceeds from sale of property, plant and equipment		28	-
Payments for intangible assets		(2,487)	(2,745)
Payments for investments		-	(3,697)
Proceeds from sale of investments		3,663	-
Dividends received		27	-
Net cash generated from/(used in) investing activities		1,220	(6,461)
Cash flows from financing activities
Issue of ordinary share capital		22	-
Net cash from financing activities		22	-
Total decrease in cash and cash equivalents		(464)	(8,692)
Cash and cash equivalents at the start of the year		1,355	10,047
Cash and cash equivalents at the end of the year		891	1,355

The audited financial information for the years ended 30 June 2010 and 30 June 2009 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 2009.  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 2010 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 2010.  The preliminary announcement was approved by the Board of Directors on 28 September 2010.

For further information:

GCM Resources plc Steve Bywater Chief Executive  [phone] Graham Taggart Finance Director [phone]	Pelham Bell Pottinger Charles Vivian 44 (0)20 7861 3126 Klara Kaczmarek [phone]
J.P. Morgan Cazenove Nominated Adviser Michael Wentworth-Stanley [phone]

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

 

 

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