Interim Results

RNS Number : 4275S
Atlantis Resources Limited
24 September 2014
 



24 September 2014

 

ATLANTIS RESOURCES LIMITED

("Atlantis")

 

Interim Results

 

Atlantis, owner of the world's largest planned tidal stream energy project, MeyGen Limited ("MeyGen"), is pleased to announce its Interim Results for the six months to 30 June 2014.

 

Highlights

 

MeyGen Project

·     In September, MeyGen achieved financial close of a £51 million funding package for delivery of the first 6MW stage of the project, Phase 1A.  The funding syndicate includes Atlantis, the UK government's Department of Energy & Climate Change, The Crown Estate, Scottish Enterprise (through the Renewable Energy Investment Fund), and Highlands and Islands Enterprise

·     MeyGen has also entered into supply and construction contracts for Phase 1A, including turbine supply contracts with Atlantis and Andritz Hydro Hammerfest (UK) Limited for a total of four 1.5MW tidal turbines

 

Turbine Technology

·     In March, Atlantis and Lockheed Martin Corporation formally commenced the AR1500 turbine detailed design programme, which is due for completion at the end of the year.  This includes the systems integration scope for all the turbine sub-assemblies

·     During March, Atlantis also completed a consulting contract for Carnegie Wave Energy Ltd for initial analysis of array configurations to reduce cost of energy, and has agreed a second phase of work which is now underway

 

Other Projects

·     Atlantis continues to work with Lockheed Martin Corporation and the Fundy Ocean Research Centre for Energy in pursuit of development opportunities in Canada

·     Atlantis has reached agreement with the Energy Technologies Institute for commencement of the £7.5 million Phase 2 of the Tidal Energy Converter project, which will involve detailed design and demonstration of the innovative concepts identified in Phase 1

 

Corporate

·     In February, Atlantis successfully completed its listing and initial public offering on AIM, raising £12 million

·     Also in February, Atlantis announced that it had been awarded €7.7 million for the development of a multi-turbine array using Atlantis' AR1500 turbine at the MeyGen site, following a grant application to the European Commission's Seventh Framework Programme during 2013

·     In July, Atlantis formally opened its new Edinburgh office, from which it will deliver the MeyGen project and build a projects and engineering hub.  This has been supported through a £2 million loan from Scottish Enterprise, through its Renewable Energy Investment Fund

 

 

Tim Cornelius, Chief Executive of Atlantis, said:

"The first half of 2014 was a very busy period for Atlantis with our successful admission to AIM raising £12m from investors in February. 

 

"Post the period end, on 18 September 2014, the most significant milestone in Atlantis' history was reached when the MeyGen project reached financial close on a £51m funding package.  This is a great achievement for the company and marks the significant time and effort that has been invested by the company and its partners.  The outlook for Atlantis remains strong and the Board looks to the future with confidence."

 

 

For further information please contact:

 

Atlantis Resources Limited

via FTI Consulting

Tim Cornelius, Chief Executive Officer


Duncan Black, Chief Financial Officer




Peel Hunt LLP (Nominated Adviser and Broker)

+44 (0) 20 7418 8900

Daniel Harris / Andy Crossley




FTI Consulting

+44 (0) 20 3727 1000

Ben Brewerton / Alex Beagley / Stephanie Blott / James Styles


 

 

CHAIRMAN'S STATEMENT

 

The first 6 months of 2014 have seen the achievement of some significant milestones across the Atlantis group. In February, we became the world's first tidal energy company to float on London's AIM exchange, raising £12 million in our initial public offering. In the same month we announced grant funding support of €7.7 million through the European Commission towards the development of a multi-turbine array using Atlantis' turbines on the MeyGen site, and the entry into a £2 million loan from Scottish Enterprise's Renewable Energy Investment Fund. The latter was provided in support of the opening of our new office in Edinburgh, where we have now established the MeyGen project team. This office will serve as our technology and projects hub for the group.

 

September heralded a seminal moment for Atlantis and the tidal power industry when we achieved financial close for a £51 million funding package for Phase 1A of the MeyGen project. We have also reached agreement to continue into the detailed design and demonstration phase of the Energy Technology Institute's Tidal Energy Converter project, which will ensure that Atlantis remains at the forefront of tidal energy technology development. This represents a £7.5 million investment by the ETI.

 

I look forward to providing you with further updates in the coming months as we progress with construction of the MeyGen project, marking the next stage in Atlantis' and the tidal power industry's development.

 

 

 

John Neill

Chairman

24 September 2014

 

BUSINESS UPDATE

 

2014 has been an exciting year to date, notably marking our transition to a public company and celebrating the finalisation of a £51 million funding package for the world's first full scale tidal stream array. The commencement of construction on Phase 1A of the MeyGen array in the second half of this year will be the culmination of over 5 years of origination and development effort to realise this project. The broad support the company has received through this process is reflected in the diversity of our funding syndicate, which includes the UK government, Scottish Enterprise, The Crown Estate, and Highlands and Islands Enterprise. We look forward to providing further updates as we progress with the works on site.

 

The technology side of our business has also made headway so far this year, with formal commencement of the AR1500 detailed design contract with Lockheed Martin in March. We have been working with key subcontractors to agree terms for long lead components in readiness to deliver the first turbine to MeyGen next year, and we're also preparing for commencement of the detailed design phase of the ETI's Tidal Energy Converter project, scheduled to commence in Q3 2014.

 

SUMMARY OF RESULTS

 

The group significantly strengthened its balance sheet over the six months to 30 June 2014 as a result of the funds raised from its initial public offering as well as the conversion of shareholder loans on admission of the company shares to trading on AIM. The group's net asset position was strengthened from S$21.6 million at 31 December 2013 to S$76.4 million at 30 June 2014, with total loans and borrowings reduced from S$51.2 million to S$18.3 million.

 

The company generated S$170,000 of revenue in the 6 months to June 2014 from the provision of consulting services to Carnegie Wave Energy Limited. Cash generated from financing activities, including grants received and proceeds from the initial public offering in February, was S$31.1 million.


 

Consolidated statement of profit and loss and other comprehensive income 

for the six months ended 30 June 2014

 


                                Group

              Six months ended





30 June

30 June



2014

2013


Note

S$'000

S$'000

Revenue


170

2,093

Other gains/(losses)

7

75

(1,651)





Subcontractors costs


-

(1,999)

Depreciation and amortisation expenses


(1,673)

(1,665)

Research and development costs


(376)

(243)

Employee benefits expenses


(3,182)

(1,712)

Other operating expenses


(2,144)

(1,364)





Total expenses


(7,375)

(6,983)

Finance costs

8

(1,585)

(1,375)





Loss before tax


(8,715)

(7,916)

Income tax benefit


-

5





Loss for the period


(8,715)

(7,911)





Other comprehensive income:




Items that may be reclassified subsequently to profit or loss




Exchange differences on translation of foreign operation


2,749

813





Total comprehensive income for the period


(5,966)

(7,098)





Losses attributable to:




Owners of the group


(8,715)

(7,911)

Total comprehensive income attributable to:




Owners of the group


(5,966)

(7,098)

Loss per share (basic and diluted)


(0.12)

(0.25)

 

 

 

Consolidated STATEMENT OF FINANCIAL POSITION
as at 30 June 2014

 


                                Group



30 June

31 December



2014

2013


Note

S$'000

S$'000

ASSETS




Non-current assets




Property, plant and equipment

9

3,047

3,007

Intangible assets

10

47,931

44,040







50,978

47,047





Current assets




Trade and other receivables

12

742

1,601

Other assets

13

39,599

37,052

Cash and cash equivalents

11

20,557

2,620







60,898

41,273





Total assets


111,876

88,320





LIABILITIES




Current liabilities




Trade and other payables

14

7,885

6,805

Provisions


1,136

1,104

Income tax payable


-

11

Loans and borrowings

15

1,634

38,762







10,655

46,682





Non-current liabilities




Deferred taxation


8,146

7,602

Loans and borrowings

15

16,710

12,414







24,856

20,016





Total liabilities


35,511

66,698





Net assets


76,365

21,622





EQUITY




Share capital

16

175,615

114,906

Translation reserve


2,033

(716)

Option fee


10

10

Share option reserve


3,994

3,994

Accumulated losses


(105,287)

(96,572)





Total equity


76,365

21,622

 

 

 

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
for the six months ended 30 june 2014

 






Attributable







to equity


Share

Translation

Option

Share option

Accumulated

holder of


capital

reserve

fee

reserve

losses

the Group


S$'000

S$'000

S$'000

S$'000

S$'000

S$'000

Group







As at 1 January 2013

111,282

1,259

10

3,435

(86,896)

29,090








Total comprehensive income for the period







Loss for the period

-

-

-

-

(7,911)

(7,911)

Other comprehensive income for the period

-

813

-

-

-

813








Total comprehensive income for the period

-

813

-

-

(7,911)

(7,098)








Transactions with owners, recognised directly in equity







Recognition of share based payments, net

-

-

-

8

-

8

Costs related to fund raising activities

(4)

-

-

-

-

(4)








Total transactions with owners

(4)

-

-

8

-

4








At 30 June 2013

111,278

2,072

10

3,443

(94,807)

21,996

 

 







Attributable








to equity



Share

Translation

Option

Share option

Accumulated

holder of



capital

reserve

fee

reserve

losses

the Group


Note

S$'000

S$'000

S$'000

S$'000

S$'000

S$'000

Group








As at 1 January 2014


114,906

(716)

10

3,994

(96,572)

21,622









Total comprehensive income for the period








Loss for the period


-

-

-

-

(8,715)

(8,715)

Other comprehensive income for the period


-

2,749

-

-

-

2,749









Total comprehensive income for the period


-

2,749

-

-

(8,715)

(5,966)









Transactions with owners, recognised directly in equity








Issued for cash during public offering

16

22,872

-

-

-

-

22,872

Conversion of convertible loans into shares during public offering


37,837

-

-

-

-

37,837









Total transactions with owners


60,709

-

-

-

-

60,709









At 30 June 2014


175,615

2,033

10

3,994

(105,287)

76,365









 

 

CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 june 2014

 


                                Group

             Six months ended





30 June

30 June



2014

2013


Note

S$'000

S$'000

Cash flows from operating activities




Loss before tax


(8,715)

(7,916)

Adjustments for:




Depreciation of plant and equipment


15

85

Amortisation of intangible assets


1,658

1,580

Finance costs

8

1,585

1,375

Share-based payments


-

9

Net foreign exchange loss


12

1,651





Operating cash flows before movements in working capital


(5,445)

(3,216)

Trade and other receivables


(1,651)

72

Trade and other payables


(2,873)

1,437

Income tax paid


(11)

5





Net cash used in operating activities


(9,980)

(1,702)





Investing activities




Purchase of property, plant and equipment


(14)

(11)

Expenditure on project development


(4,959)

-

Purchase of available-for-sale investments


-

(35)

Deposits pledged


(4,233)

-





Net cash used in investing activities


(9,206)

(46)





Financing activities




Proceeds from grants received


3,954

-

Proceeds from borrowings


4,913

743

Repayment of borrowings


(504)

-

Interest paid


(89)

-

Proceeds from issue of shares

16

25,214

-

Costs related to fundraising

16

(2,342)

(4)





Net cash from financing activities


 31,146

739





Net increase/(decrease) in cash and cash balances


11,960

(1,009)

Cash and cash equivalents at beginning of period


2,620

2,338

Effect of foreign exchange rate changes on the balance of cash held in foreign currencies


32

259





Cash and cash equivalents at end of period

11

14,612

1,588





Non-cash transaction:

During the period, the convertible loans outstanding as at 31 December 2013 were converted to ordinary shares upon successful listing of the Company. Please see note 16 for further details.


 

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2014

 

These notes form an integral part of the consolidated interim financial statements.

The consolidated interim financial statements comprise those of the Company and its subsidiaries (together referred to as the Group). These consolidated interim financial statements do not constitute the Group's statutory accounts within the meaning in the provisions of the Singapore Companies Act, Chapter 50. Statutory accounts for the year ended 31 December 2013, which were prepared in accordance with International Financial Reporting Standards, were approved by the Board of Directors on 30 May 2014, and delivered to the Accounting and Corporate Regulatory Authority of Singapore.  The report of the auditors in the statutory accounts for the year ended 31 December 2013 was (i) unqualified (ii) did not include reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report.

The consolidated interim financial statements is unaudited but has been formally reviewed by the auditors and their report to the Company is set out on page 1. The consolidated interim financial statements were authorised for issue by the Board of Directors on 24 September 2014.

1.       Domicile and activities

Atlantis Resources Limited is incorporated in the Republic of Singapore with its principal place of business and registered office at 65 Niven Road, Singapore 228414.

The principal activity of the Company is that of pioneering the development of tidal current power as the most reliable, economic and secure form of renewable energy. The Company is an inventor, developer, owner, marketer and licensor of technology, intellectual property, trademarks, products and services.

2.       Basis of preparation

Statement of compliance

The consolidated interim financial statements of the Group have been prepared in accordance with International Accounting Standard ("IAS") 34 - Interim Financial Reporting ("IAS 34").

Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the last annual consolidated financial statements as at and for the year ended 31 December 2013.

The consolidated interim financial statements, which do not include the full disclosures of the type normally included in a complete set of consolidated financial statements, are to be read in conjunction with the last issued consolidated financial statements of the Group and the Company as at and for the year ended 31 December 2013.

3.       Significant accounting policies

Except for the new and revised IASs effective for the financial year beginning 1 January 2014 adopted during the six month period ended 30 June 2014, and except as disclosed below, the accounting policies and method of computation used in the consolidated interim financial statements are consistent with those applied in the last issued consolidated financial statements of the Group for the year ended 31 December 2013.

During the period, the Group has changed the presentation of the analysis of expenses from the "function of expense" method to "nature of expense" method to provide the consolidated interim financial statements users a more reliable and relevant information of the expenses incurred by the Group. Certain comparative information has been updated to conform with the change in presentation of analysis of expenses.

The adoption of the new and revised IASs for the financial year beginning 1 January 2014 does not have a significant effect on the consolidated interim financial statements of the Group.

New standards, amendments to standards and interpretations that are not effective for the six months ended 30 June 2014 have not been applied in preparing these consolidated interim financial statements. None of these are expected to have a significant effect on the consolidated interim financial statements of the Group.

4.       Critical accounting judgements and key sources of estimation uncertainty

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

In preparing this set of consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2013.

5.       Going concern basis

The Group meets its day to day working capital requirements through shareholders' funding, loans and grants. The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its consolidated interim financial statements.

6.       Seasonality of operations

The Group's businesses are not affected significantly by seasonal or cyclical factors during the financial period.

7.       Other Gains and losses

30 June

30 June


2014

2013


S$'000

S$'000

Net foreign exchange losses

(12)

(1,651)

Other income

87

-





75

(1,651)




Other income represents grants received during the period.

8.       FINANCE COSTS

30 June

30 June


2014

2013


S$'000

S$'000

Interest expense arising from:



- shareholders' loans

144

1,375

- related party loan

149

-

- long term loans

698

-

- convertible loans

594

-





1,585

1,375




The long term loans are related to loans obtained by a subsidiary acquired by the Company in 2013. During the acquisition, the long term loans were recorded at fair value. Subsequent to the acquisition, the long term loans were recorded at amortised cost. The interest expense of S$698,000 relating to the long term loans includes the re-measurement of the long term loans on an amortised cost basis using the effective interest rate method.

9.       Property, plant and equipment

There are no material additions or disposals during the period.

10.    Intangible assets

Total expenditure on turbine development and project development for the period amounted to S$4,960,000. Of this, S$2,598,000 related to the Group's tidal turbine development programme, in particular expenditure on the detailed design of and system integration for the Group's AR1500 turbine.

A further S$2,362,000 of expenditure related to the development of the MeyGen tidal power project at the Inner Sound off the Scottish coast was capitalised during the period. Included in the capitalised development costs is an amount of S$559,000 that represents borrowing costs capitalised during the period. The project is progressing according to plan and management estimates the recoverable amount to be higher than the carrying amount such that no impairment was required.

11.    Cash and cash equivalents

30 June

31 December


2014

2013


S$'000

S$'000

Cash at bank

14,594

895

Fixed deposits

5,945

1,712

Cash on hand

18

13





20,557

2,620

Less: encumbered deposits

(5,945)

(1,712)




Cash and cash equivalents in the statement of cash flows

14,612

908




The encumbered deposits of S$5,945,000 served as collateral in support of the provision of bank guarantees on behalf of subsidiaries of the Group. An aggregate amount of S$1,990,000 of this collateral was used in support of the provision of standby letters of credit on behalf of MeyGen Limited to secure the MeyGen project's electricity transmission capacity.

The remaining S$3,955,000 of the collateral supported a bank guarantee that was required to secure an advance payment of the same amount received from the European Commission as part of the pre-funding of a grant obtained from European Commission, which was released subsequent to the period end.

12.    Trade and other receivables

With reference to the trade and other receivables as at 31 December 2013, other receivables due from a shareholder and a director of S$57,000 and S$209,000 respectively were received during the period.

13.    Other assets

In relation to the option to enter into a seabed lease for the MeyGen project, at the reporting date, management estimates the recoverable amount to be higher than the carrying amount and therefore no impairment was required.

14.    Trade and other payables

30 June

31 December


2014

2013


S$'000

S$'000

Trade payables

1,858

2,273

Other payables

412

221

Accruals

1,507

4,157

Advance receipts

4,108

154





7,885

6,805




Advance receipts includes S$3,955,000 advance payment received from European Commission as explained in Note 11.

15.    Loans and borrowings

30 June

31 December


2014

2013


S$'000

S$'000

Current



Shareholders' loans

1,634

1,520

Convertible loans

-

37,242





1,634

38,762




Non-current



Related party loan

6,803

6,207

Long term loans

9,907

6,207





16,710

12,414





18,344

51,176




Upon admission of the Company's shares to trading on AIM, a market operated by the London Stock Exchange, all convertible loans were converted into ordinary shares of the Company at the price of shares issued in the initial public offering less a discount of 10%. S$36,970,000 of convertible loans from directors and shareholders were converted into 18,668,000 ordinary shares.

In February 2014, Atlantis Resources (Scotland) Limited, a wholly owned subsidiary of the Company, entered into a loan agreement with Scottish Enterprise (as administrator of the Renewable Energy Investment Fund) and Atlantis Resources Limited (as guarantor). Of the S$4.3 million (£2.0 million) principal amount of the loan, S$3.2 million (£1.5 million) had already been drawn down by 30 June 2014, with the final S$1.1 million (£0.5 million) drawn down in August 2014. The loan is to be used to support the development of Atlantis Resources (Scotland) Limited's engineering hub in Scotland and in support of the development of the initial phase of the MeyGen project. The interest rate on the loan is 12% per annum with interest accrued and capitalised each six months. The loan plus all accrued and capitalised interest is repayable on the fifth anniversary of the first drawdown of the loan.

The Company also received a bridging loan of S$504,000 (A$400,000) from a shareholder secured by way of a floating charge over its assets in February 2014. The loan was repaid in March 2014.

Other than the above, there were no changes in the terms and conditions of any of the remaining loans. No covenants of any loans have been breached.

16.    share capital

Number of


Number of

Number of



ordinary

Number of

non-voting

non-voting



 shares of

ordinary

preference

preference



no par value

"A" shares

"B" shares

 "C" shares



'000

'000

'000

'000

S$'000

At 1 January 2014

-

1,258,217

27,250

59,524

114,906

Conversion into ordinary "A" shares

-

86,774

(27,250)

(59,524)

-

Consolidation of shares of 1 ordinary share for every 30 ordinary "A" shares

44,833

(1,344,991)

-

-

-

Public offerings issued for cash

12,766

-

-

-

25,214

Convertible loan notes converted into shares

19,105

-

-

-

37,837

Transaction costs incurred in relation to shares issuance

-

-

-

-

(2,342)







At 30 June 2014

76,704

-

-

-

175,615







On 20 February 2014, the Company's entire share capital was admitted to trading on AIM, a market of the London Stock Exchange. On the point of admission, the Company's class "B" non-voting preference shares and class "C" non-voting preference shares in the capital of the Company were converted into class "A" ordinary shares. Furthermore, the Company's class "A" ordinary shares were consolidated on the basis of one new ordinary share for 30 "A" ordinary shares held by such person on admission. After conversion of the convertible loans to shares and the public offering of shares for cash, the Company had a total of 76,704,000 shares issued.

17.    SHARE OPTIONS

Ordinary share options

Number of non-voting

preference "B" shares




Weighted


Weighted


Number of

average

Number of

average


share options

exercise price

share options

exercise price


'000

S$

'000

S$

2014





At 1 January 2014

-

-

39,266

0.195

Conversion into ordinary shares options(1)

1,309

5.553

(39,266)

0.195

Lapsed during the period

(1,209)

5.553

-

-

Issued during the period

4,255

1.999

-

-






At 30 June 2014

4,355


-







(1)  On the point of admission of the Company's shares to trading on AIM, the options on class "B" shares were converted and consolidated on a similar basis to the class "B" shares, as described in note 16.

As at 30 June 2014, the number of share options and their expiration dates are as follows:

Number of options

Expiry on

66,667

4 June 2015

33,333

9 June 2015

4,255,000

20 February 2019



During the period, all the share options were granted to key management personnel and members of the Board of Directors of the Company.

Further details of the options granted are provided in the Company's annual report for the year ended 31 December 2013.

18.    LOSS PER SHARE

The calculation of loss per share is based on the loss after tax and on the weighted average number of ordinary shares in issue during each period.

Loss after tax

Weighted average

number of shares

Loss per share



2014

2013

2014

2013

2014

2013


S$'000

 S$'000

'000

'000

 S$

 S$

Basic and diluted

8,715

7,911

73,158

32,075

0.12

0.25








19.    FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT

(a)     Categories of financial instruments

          The following table sets out the financial instruments as at the end of reporting period:


30 June

31 December



2014

2013



 S$'000

 S$'000


Financial assets




Cash and cash equivalents

20,557

2,620


Loans and receivables




  Trade and other receivables

373

506







20,930

3,126






Financial liabilities




Amortised cost




  Trade and other payables

3,777

6,651


  Loans and borrowings

18,344

13,934


Fair value through profit or loss




  Loans and borrowings

-

37,242







22,121

57,827





(b)     Financial risk management policies and objectives

The Group is exposed to various financial risks arising in the normal course of business. It has adopted financial risk management policies and utilised a variety of techniques to manage its exposure to these risks.

The Group does not hold or issue derivative financial instruments for speculative purposes.

There has been no change to the Group's exposure to these financial risks or the manner in which it manages and measures the risk. Market risk exposures are measured using sensitivity analysis indicated below.

          (i)      Foreign exchange risk management


Liabilities

Assets





30 June

31 December

30 June

30 December



2014

2013

2014

2013



S$'000

S$'000

S$'000

S$'000


Australian dollars

66

266

10

12


British pounds

441

7,178

118

59


Euros

84

-

3,967

6


United States dollars

895

527

7

29







                    Foreign currency sensitivity


Australian dollars

British pounds

Euros

United States dollars



30 June

31 December

30 June

31 December

30 June

31 December

30 June

31 December



2014

2013

2014

2013

2014

2013

2014

2013



S$'000

S$'000

S$'000

S$'000

S$'000

S$'000

S$'000

S$'000


Group










Profit or loss

(6)

(25)

(32)

(712)

388

1

(160)

(90)











          (ii)     Interest rate risk management

          (iii)    Equity price risk management

          (iv)    Credit risk management

          (v)     Liquidity risk management

 

          (vi)    Analysis of financial instruments by remaining contractual maturities.


Contractual cash flows





One period

One to five

Over five


Carrying



or less

periods

periods

Adjustment(1)

amounts


30 June 2014

S$'000

S$'000

S$'000

S$'000

S$'000


Financial assets







Cash and cash equivalents

20,557

-

-

-

20,557


Trade and other receivables

373

-

-

-

373










20,930

-

-

-

20,930









Financial liabilities







Trade and other payables

3,777

-

-

-

3,777


Shareholders' loans

1,699

-

-

(65)

1,634


Loan from related party

-

-

14,005

(7,202)

6,803


Long term loans

-

-

19,727

(9,820)

9,907










5,476

-

33,732

(17,087)

22,121









31 December 2013







Financial assets







Cash and cash equivalents

2,620

-

-

-

2,620


Trade and other receivables

506

-

-

-

506










3,126

-

-

-

3,126









Financial liabilities







Trade payables and other payables

6,651

-

-

-

6,651


Shareholders' loans

1,675

-

-

(155)

1,520


Convertible loans

37,837

-

-

(595)

37,242


Loan from related party

-

-

13,762

(7,555)

6,207


Long term loan

-

-

13,762

(7,555)

6,207










46,163

-

27,524

(15,860)

57,827








(1)   Relates to contractual interest payments.

          (vii)   Fair value of financial assets and financial liabilities


30 June

30 June

31 December

31 December



2014

2014

2013

2013



Carrying Value

Fair Value

Carrying Value

Fair Value



S$'000

S$'000

S$'000

S$'000


Financial Liabilities






Shareholders' loans

1,634

1,648

1,520

1,554


Convertible loans

-

-

37,242

37,242


Related party loan

6,803

6,631

6,207

6,207


Long term loans

9,907

9,992

6,207

6,207









18,344

18,271

51,176

51,210









Level 1

Level 2

Level 3

Total Fair Value


30 June 2014

S$'000

S$'000

S$'000

S$'000


Financial Liabilities






Shareholders' loans

-

-

1,648

1,648


Related party loan

-

-

6,631

6,631


Long term loans

-

-

9,992

9,992









-

-

18,271

18,271









Level 1

Level 2

Level 3

Total Fair Value


31 December 2013

S$'000

S$'000

S$'000

S$'000


Financial Liabilities






Shareholders' loans

-

-

1,554

1,554


Convertible loans

-

-

37,242

37,242


Related party loan

-

-

6,207

6,207


Long term loan

-

-

6,207

6,207









-

-

51,210

51,210







The interest rate used to discount estimated cash flows, where applicable, are based on the unsecured long term cost of borrowings rate of 12%. There were no transfers between levels 2 and 3 during the period.

(c)     Capital risk management policies and objectives

          The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balances.

The capital structure of the Group consists of equity attributable to owners of the parent, comprising issued capital and accumulated losses as well as loans due to shareholders, related parties and third parties.

The Company's capital is represented by the sum of loans and borrowings and shareholders' equity in the statement of financial position as at 30 June 2014 of S$94,709,000 (31 December 2013: S$72,798,000).

The Company's objectives when maintaining capital are:

(i)      to safeguard the entity's ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders; and

(ii)     to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

20.    RELATED COMPANY AND related PARTY TRANSACTIONS

Other than those disclosed elsewhere in the consolidated interim financial statements, the following are the significant transactions with related parties/companies during the period:

30 June

30 June


2014

2013


 S$'000

 S$'000

Rental expense paid to companies with common director

25

81

Interest expense arising from shareholders' loans

202

1,341

Interest expense arising from related party loan

216

-




Compensation of directors and key management personnel:

The remuneration of directors and other members of key management during the period was as follows:

30 June

30 June


2014

2013


S$'000

S$'000

Short-term benefits

747

429




21.    EVENTS AFTER THE REPORTING PERIOD

In August 2014, the Company's subsidiary, MeyGen Limited, secured committed financing and entered into construction and supply contracts for the first 6 MW phase of the MeyGen project. Key events associated with this development were:

•        Incorporation of Tidal Power Scotland Holdings Limited as a wholly owned indirect subsidiary of Atlantis Projects Pte Ltd, a direct wholly owned subsidiary of the Company, and the sale and purchase of 100% of the shares of MeyGen Limited from Atlantis Projects Pte Ltd to Tidal Power Scotland Holdings Limited.

•        An aggregate equity investment of £20.5 million from the Company via Atlantis Project Pte Ltd (£10.8 million), and Scottish Enterprise, as administrator of the Renewable Energy Investment Fund (£9.7 million), in Tidal Power Scotland Holdings Ltd. under the terms of a Subscription Agreement and Shareholders' Agreement, resulting in Scottish Enterprise taking a shareholding of 13.5% and Atlantis retaining an 86.5% stake.

•        A £7.5 million project finance loan from Scottish Enterprise, as administrator of the Renewable Energy Investment Fund, to MeyGen Limited.

•        An investment of £10.0 million by The Crown Estate Commissioners into MeyGen Limited, to be serviced through the payment of "enhanced rent" to The Crown Estate with an exit payment at or before 10 years from commissioning.

•        Entry by MeyGen Limited into grant agreements in an aggregate amount of £13.3 million, comprising a £10 million grant from the Department of Energy and Climate Change, and two grants from Highlands and Islands Enterprise in an aggregate amount of £3.3 million.

•        Entry by MeyGen Limited into a 25 year seabed lease with the Crown Estate for the installation of up to 398 MW of tidal turbines at MeyGen's Pentland Firth site.

•        MeyGen's entry into a 10 year power purchase agreement with Smartest Energy, a wholly owned subsidiary of Marubeni Corporation, for the purchase of all renewable obligation certificates and power generated by the project.

•        MeyGen Limited's entry into a turbine supply agreement with Atlantis Operations (UK) Limited, a wholly owned indirect subsidiary of the Company, for the supply of one AR1500 tidal turbine to MeyGen with a total contract value of £4.5 million.

•        MeyGen Limited's entry into a turbine supply agreement with Andritz Hammerfest Hydro (UK) Limited for the supply of three 1.5 MW tidal turbines to MeyGen with a total contract value of £13.4 million.

•        Entry by MeyGen Limited into an offshore installation agreement with James Fisher Marine Services Limited for the installation of cables, foundation structures and turbines for the MeyGen project with a total contract value of £3.2 million.

•        Entry into an onshore infrastructure works agreement between MeyGen Limited and ABB Limited with a total contract value of £7.0 million.

Also in August 2014, the European Commission released the S$3,955,000 equivalent bank guarantee that had been cash collateralised by a subsidiary of the Company.

In addition, in August 2014 the Company announced that it had been awarded a £7.5 million contract from the Energy Technologies Institute for Phase 2 of the Tidal Energy Converter project.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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