Information  X 
Enter a valid email address

Ocean Res Cap Hldgs (OCE)

  Print   

Friday 29 September, 2006

Ocean Res Cap Hldgs

Interim Results

Ocean Resources Capital HoldingsPLC
29 September 2006

                                OCEAN RESOURCES
                              CAPITAL HOLDINGS PLC



               Interim report for the six months to 30 June 2006

The Directors of Ocean Resources Capital Holdings Plc announce the interim
results for the six months to 30 June 2006.

Chairman's Interim statement

Against the background of continuing strong commodity markets, the Company's net
asset value has shown an improvement, from 21.92p on 31 December 2005 to 25.09p
on 30 June 2006.  This is a gain of  14.6% over the six months and compares to
an increase of 23.9% in the HSBC Global Mining Index over the same period.



During the period, the investment manager's have made significant progress in
reducing the Company's overdraft, which at 30 June stood at £2.54million and
since then has been further reduced and currently stands at £0.5 million.   It
is expected that the overdraft will be completely paid off before the end of the
year and that the Company will also have sufficient cash reserves to repay the
convertible unsecured loan stock which is also due at the end of the year.



We have just been advised of the decision by the Galician Xunta in Spain to deny
Picobello Andalucita SL the necessary planning and environmental permits
required to commence development of their mining project.  Consequently, the
Board has made the decision to reduce the carrying value of this investment to
nil.  This decision represents a write down of approximately 1.4p per share.  We
are in ongoing discussions with the company concerning the most appropriate
strategy for the company's future direction.



Archipelago Resources plc remains the portfolio's largest holding and, while the
current price performance has not been spectacular, the company is making sound
progress in bringing its Toka Tindu gold project into production and, following
some development delays, this is currently scheduled for mid-2007.



With the increasing concentration of the portfolio the future prospects for
Archipelago Resources plc and Rheochem plc, the portfolio's two largest
holdings, become ever more significant.  In this respect, your Board is
confident that both companies have the ability to perform well over the coming
twelve months, and any such improvement will have a direct impact on the
Company's net asset value.





Consolidated Profit and Loss Account

For the six months to 30 June 2006


                                                   Notes            Unaudited        Unaudited           Audited
                                                                      30 June          30 June       31 December
                                                                         2006             2005              2005
                                                                        £'000            £'000             £'000
Income from investments
Unlisted securities                                                        26              568             1,091

                                                                           26              568             1,091

(Loss)/surplus on disposal of investments
Listed securities                                                       (173)            (150)             (294)
Unlisted securities                                                     (280)                -               789

Interest receivable and similar income                                      3               12                28
Fees and commission                                                         -              220               230

Administrative expenses                                                 (514)            (265)             (666)

Operating (loss)/profit - pre write-down of
investments                                                             (938)              385             1,178

Net write-up/(write-down) of investments             3                    387          (3,390)          (10,320)

Operating loss                                                          (551)          (3,005)           (9,142)

Interest payable                                                        (122)            (194)             (404)

Loss for the period before and after taxation                           (673)          (3,199)           (9,546)

Loss per share
Basic loss per share                                 4                (0.79p)          (3.75p)          (11.20p)

Diluted loss per share                                                (0.79p)          (3.75p)          (11.20p)




The Group's current period results shown above are derived entirely from
continuing activities.





Balance Sheets of the Group and Company

As at 30 June 2006


                               Notes          Unaudited               Unaudited                Audited
                                          Group     Company       Group       Company      Group    Company
                                            30 June 2006             30 June 2005          31 December 2005
                                         £ '000      £ '000      £ '000        £ '000     £ '000     £ '000
Fixed asset investments
Group undertakings                            -           -           -             -          -          -
Other investments                 2      24,322      24,322      30,374        30,374     23,953     23,953

                                         24,322      24,322      30,374        30,374     23,953     23,953

Current assets
Debtors                                     453         453       1,335         1,335        466        466
Cash at bank and in hand                    229         229         131           131        171        171

                                            682         682       1,466         1,466        637        637

Creditors: amounts falling due          (3,621)     (3,621)     (5,174)       (5,174)    (5,902)    (5,902)
within one year

Net current liabilities                 (2,939)     (2,939)     (3,708)       (3,708)    (5,265)    (5,265)

Total assets less current                21,383      21,383      26,666        26,666     18,688     18,688
liabilities

Creditors: amounts falling due
after more than one year
8% Convertible Unsecured Loan                 -           -     (1,003)       (1,003)          -          -
Stock 2006

Net assets                               21,383      21,383      25,663        25,663     18,688     18,688



Capital and reserves
Called up share capital                     852         852         852           852        852        852
Share premium account                    38,202      38,202      38,202        38,202     38,202     38,202
Warrant reserve                           1,109       1,109       1,109         1,109      1,109      1,109
Revaluation reserve                       4,760       4,760       2,967         2,967      2,171      2,171
Profit and loss account                (23,540)    (23,540)    (17,467)      (17,467)   (23,646)   (23,646)

Equity shareholders' funds               21,383      21,383      25,663        25,663     18,688     18,688


Net asset value per share         5      25.09p                  30.11p                   21.92p





Consolidated Cash Flow Statement

For the six months to 30 June 2006


                                                                    Unaudited      Unaudited         Audited
                                                                 30 June 2006        30 June     31 December
                                                                                        2005            2005
                                                                       £ '000         £ '000          £ '000

Net cash outflow from operating activities                              (458)          (292)         (1,047)

Interest paid on loan                                                   (176)          (146)           (311)
Interest paid on 8% Convertible Unsecured Loan Stock                     (41)           (41)            (81)
2006

Net cash outflow from servicing of finance                              (217)          (187)           (392)


Taxation paid                                                               -              -               -

Investing activities
Purchase of fixed asset investments                                         -        (1,345)         (3,355)
Proceeds of disposal of fixed asset investments                         3,072          2,126           5,482

Net cash inflow from capital expenditure and financial
investment                                                              3,072            781           2,127

Net cash inflow before financing                                        2,397            302             688

Loan repaid                                                                 -        (2,200)         (2,200)
Loans (granted to) / repaid from investee companies                     (111)          (192)           (352)

Net cash outflow from financing                                         (111)        (2,392)         (2,552)

Increase/(decrease) in cash                                             2,286        (2,090)         (1,864)


Reconciliation of net cash inflow/(outflow) to movement
in net debt

Increase/(decrease) in cash                                             2,286        (2,090)         (1,864)
Net repayment of loan facility                                              -          2,200           2,200
Debt due on 8% Convertible Unsecured Loan Stock 2006                      (4)            (4)             (7)

Movement in net debt in period                                          2,282            106             329
Net debt at beginning of period                                       (5,599)        (5,928)         (5,928)

Net debt at period end                                                (3,317)        (5,822)         (5,599)

Major non-cash transactions

Interest and commissions received in the form of shares                     -            200             210

                                                                            -            200             210







Notes



1.   Basis of preparation



The interim accounts have been prepared in accordance with applicable accounting
standards in the United Kingdom and the Company's established accounting
policies.  The interim accounts do not constitute statutory accounts within the
meaning of S.240 of the Companies Act 1985.



2.   Fixed asset investments



Investments are treated as fixed assets and are shown in the balance sheet at
valuation. Increases against book cost attributable to share price changes are
taken to the revaluation reserve.  Write-downs and foreign exchange movements
are taken to the profit and loss account.



Investments quoted in the United Kingdom are valued at bid prices at the close
of business at the balance sheet date. Unquoted investments are valued at market
prices at the close of business at the balance sheet date where an organised
market exists; otherwise, unquoted investments have been valued by the directors
based upon dealing prices or stockbrokers' valuations where available, net asset
values or other relevant information. Where an event occurs during the period
that requires the valuation of an unquoted investment to be revised, that
revision is reflected in the next announced net asset value. All valuations are
based upon the guidelines set out by the British Venture Capital Association.



3.   Net write up of investments


                                                                        30 June          30 June     31 December
                                                                           2006             2005            2005
                                                                          £'000            £'000           £'000

Write down of investments                                               (1,832)          (3,390)        (10,320)
Adjustment to previously impaired investments                             2,219                -               -

                                                                            387          (3,390)        (10,320)



4.   Earnings per share


                                                                        30 June          30 June     31 December
                                                                           2006             2005            2005
                                                                          £'000            £'000           £'000

Loss attributable to ordinary shareholders                                (673)          (3,199)         (9,546)
Number of ordinary shares in issue during the period                 85,241,078       85,241,078      85,241,078

Loss per share (pence)                                                  (0.79p)          (3.75p)        (11.20p)



At 30 June 2006 the warrants in issue were not dilutive.



5.   Net asset value per ordinary share


                                                                        30 June          30 June     31 December
                                                                           2006             2005            2005
                                                                          £'000            £'000           £'000

Net asset value attributable to ordinary shareholders                    21,383           25,663          18,688
Number of ordinary shares in issue                                   85,241,078       85,241,078      85,241,078

Net asset value per share (pence)                                        25.09p           30.11p          21.92p





The Interim Report will be posted to shareholders shortly. Copies may be
obtained during normal business hours from the Company's registered office, The
Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU.



By order of the Board



Capita IRG Trustees Limited

Secretary, 30 September 2006


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

a d v e r t i s e m e n t