REG - Armadale Capital PLC - Half-year Report
29/09/2023 07:00
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RNS Number : 0663O Armadale Capital PLC 29 September 2023
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company
29 September 2023
Armadale Capital Plc
('Armadale' the 'Company' or the 'Group')
Interim Results
Armadale, the AIM quoted investment company focused on natural resource
projects in Africa, is pleased to announce its unaudited interim results for
the six months ended 30 June 2023.
Highlights
During the half year Armadale has made further progress towards commercial
production at the Mahenge Liandu Project in Tanzania.
· Armadale continue to advance the FEED study in preparation for
obtaining project financing. This information will enhance the detail in the
Definitive Feasibility Study.
· Armadale continued to collect environmental baseline data as is
required for the compliance of the mining lease and to assist in the design
and planning of the proposed mining operations. In addition, the base line
data for temperature, pressure, wind, moon phase, humidity, solar radiation,
rainfall and stream flow data assists the local community to have access to
regional weather data for local planning requirements in the Mahenge region.
· Logistics routes for the product were assessed to determine the
optimum methods to ensure the final product will enter the market at the
desired price level.
The Group is continuing discussions with several potential financing partners
regarding the debt and equity funding required for project development. The
significantly improved market fundamentals for graphite concentrates has lead
to increased interest from stakeholders capable of providing long-term project
finance. Armadale continued its ongoing review of its quoted equity portfolio,
where the Directors believe there are opportunities for capital gains, and
made a number of acquisitions of quoted companies in the resources sector.
Armadale also continued to actively review other investment opportunities for
mineral exploration in Africa.
During the period, a further £60,000 was spent on the project and the Company
also expanded its portfolio of passively managed investments, spending
£587,000 on three new holdings in listed resource companies. The portfolio
performed well during the period, increasing in overall market value by
£456,000 net. At 30 June 2023 the Company had cash of £300,000 (with and
average monthly cash burn of about £20,000 including annual audit costs) and
listed investments worth £1,593,000.
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2023
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2023
Unaudited
Six months ended
30 June 30 June
2023 2022
£'000 £'000
Administrative expenses (165) (151)
Change in fair value of investments 456 (1)
Profit/(loss) before taxation 291 (152)
Taxation - -
Profit/(loss) after taxation 291 (152)
Other comprehensive income/(loss)
Items that may be reclassified to profit or loss:
Exchange differences on translating foreign entities 24 (57)
Total comprehensive income/(loss) attributable to equity holders of the parent 315 (209)
company
Pence Pence
Earnings/(loss) per share attributable to equity holders of the parent company 0.05
(note 3)
Basic and fully diluted
(0.03)
Consolidated Statement of Financial Position
At 30 June 2023
Unaudited Audited
30 June 2023 30 June 2022 31 December 2022
£'000 £'000 £'000
Assets
Non-Current assets
Exploration and evaluation assets 5,550 5,010 5,483
Investments 1,593 79 562
7,143 5,089 6,045
Current assets
Trade and other receivables 137 60 150
Cash and cash equivalents 300 1,723 1,046
437 1,783 1,196
Total assets 7,580 6,872 7,241
Equity and liabilities
Equity
Share capital 3,324 3,321 3,324
Share premium 25,153 25,076 25,153
Shares to be issued 286 286 286
Share option and warrant reserve 362 610 362
Foreign exchange reserve 342 9 318
Retained earnings (21,988) (22,473) (22,279)
Total equity 7,479 6,829 7,164
Current liabilities
Trade and other payables 101 43 77
Total equity and liabilities 7,580 6,872 7,241
Unaudited Consolidated Statement of Changes in Equity
For the period ended 30 June 2023
Share Share Premium Shares to be Share Option Reserve Foreign Exchange Reserve Retained Earnings Total
Capital £'000 Issued £'000 £'000 £'000
£'000 £'000 £'000
Balance 1 January 2022 3,275 23,906 286 925 66 (22,636) 5,822
Loss for the year - - - - - (206) (206)
Other comprehensive income - - - - 252 - 252
Total comprehensive income for the year 252 (206) 46
- - - -
Issue of shares 49 1,247 - - - - 1,296
Transfer on exercise and expiry of warrants - - - (563) - 563 -
Total other movements 49 1,247 - (563) - 563 1,296
Balance 31 December 2022 3,324 25,153 286 362 318 (22,279) 7,164
Profit for the period - - - - - 291 291
Other comprehensive income - - - - 24 - 24
Total comprehensive income for the period - - - - 24 291 315
Balance 30 June 2023 3,324 25,153 268 362 342 (21,988) 7,479
The following describes the nature and purpose of each reserve within
shareholders' equity:
Reserve Description and purpose
Share capital Amount subscribed for share capital at nominal value
Share premium Amount subscribed for share capital in excess of nominal value, net of allowable expenses
Shares to be issued Share
capital to be issued in connection with historical acquisition
Share option and warrant reserve Cumulative charge recognised under IFRS2 in respect of share-based payment awards
Foreign exchange reserve Gains/losses arising
on re-translating the net assets of overseas operations into sterling
Retained earnings Cumulative net gains and losses recognised in the statement of comprehensive income
Consolidated Statement of Cash Flows
For the period ended 30 June 2023
Unaudited Audited
Six Months ended Year ended
30 June 2023 30 June 2022 31 December 2022
£'000 £'000 £'000
Cash flows from operating activities
Profit/(loss) before taxation 291 (152) (206)
Change in fair value of investments (456) 1 (102)
(165) (151) (308)
Changes in working capital
Receivables 13 30 (11)
Payables 24 (31) 12
Net cash used in operating activities (128) (152) (307)
Cash flows from investing activities
Expenditure on exploration and evaluation assets (60) (345) (518)
Purchase of listed investments (587) (411)
Sale of listed investments 29 58 89
Net cash used in investing activities (618) (287) (840)
Cash flows from financing activities
Proceeds from share issues - 1,276 1,307
Net cash from financing activities - 1,276 1,307
Net (decrease)/increase in cash and cash equivalents (746) 837 160
Cash and cash equivalents at 1 January 2023 1,046 886 886
Cash and cash equivalents at 30 June 2023 300 1,723 1,046
Notes to the unaudited condensed consolidated financial statements
For the period ended 30 June 2023
1. Incorporation and principal activities
Country of incorporation
Armadale Capital Plc was incorporated in the United Kingdom as a public
limited company on 19 August 2005. Its registered office is 1 Arbrook Lane,
Esher, Surrey, KT10 9EG.
Principal activities
The principal activity of the Group during the period was that of an
investment company.
2. Accounting policies
2.1. Statement of compliance
The financial information for the six months ended 30 June 2022 and 30 June
2021 is unaudited and does not constitute the Group's statutory financial
statements for those periods within the meaning of Section 434 of the
Companies Act 2006. The comparative financial information for the year ended
31 December 2021 has been derived from the Annual Report and Accounts, which
were approved by the Board of Directors on 20 May 2022 and delivered to the
Registrar of Companies. The report of the Auditors on those accounts was
unqualified and did not contain any statement under Section 498 of the
Companies Act 2006.
This condensed set of financial statements has been prepared in accordance
with IAS 34 'Interim Financial Reporting' as adopted by the European Union.
This condensed set of financial statements should be read in conjunction with
the annual financial statements for the year ended 31 December 2021 which have
been prepared in accordance with International Financial Reporting Standards
(IFRSs) as adopted by the United Kingdom.
The accounting policies adopted are consistent with those of the annual
financial statements for the year ended 31 December 2021 as described in those
annual financial statements.
In respect of new financial reporting standards which came into effect for
reporting periods beginning on 1 January 2022, the Directors consider that
their implementation has no material effect on the financial information
presented in this statement.
2.2. Going Concern
The financial statements have been prepared on the going concern basis as, in
the opinion of the Directors, there is a reasonable expectation that the Group
will continue in operational existence for the foreseeable future. The
Company's ability to continue as a going concern and to achieve its long term
strategy of developing its exploration projects is dependent on further
fundraising. At 30 June 2023, the Group had cash of £300,000 and listed
investments with a value of £1,593,000.
2.3. Exploration and evaluation assets
These assets are recorded at cost and are amortised over
their expected useful life on a pro rata basis of actual production for the
period to expected total production.
2.4. Investments
Investments are stated at fair value.
3. Earnings/(loss) per share
The calculation of earnings per share is based on a profit of £291,000 (2022,
loss of £152,000) and on 587,529,895 (2022, 560,588,302) Ordinary Shares,
being the weighted average number of Ordinary Shares in issue during the
period.
For the period ended 30 June 2022, there was no difference between basic loss
per share and diluted loss per share as the Group reported a loss.
**ENDS**
For further information, please visit the Company's website
www.armadalecapitalplc.com (http://www.armadalecapitalplc.com) , follow
Armadale on Twitter @ArmadaleCapital or contact:
Enquiries:
Armadale Capital Plc +44 (0)20 7236 1177
Tim Jones, Company Secretary
Nomad and broker: Cavendish Capital Markets Limited +44 (0)20 7220 0500
Simon Hicks / Seamus Fricker
The Company also announces that its Nominated Adviser and Broker, finnCap Ltd,
has now changed its name to Cavendish Capital Markets Limited following
completion of its own corporate merger.
The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU No.
596/2014) which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.
More information can be found on the website www.armadalecapitalplc.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.armadalecapitalplc.com&esheet=52244720&newsitemid=20200702005192&lan=en-US&anchor=www.armadalecapitalplc.com&index=1&md5=7209221bbf1231bc13f525c3f5835785)
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