REG - Infrastrata PLC - Interim Results <Origin Href="QuoteRef">ASPL.L</Origin> <Origin Href="QuoteRef">INFAT.L</Origin> - Part 2
15/07/2015 14:54
- Part 2: For the preceding part double click ID:nRSb4624La
Notes Six months ended 31 January 2015 Unaudited Six months ended 31 January 2014 Unaudited Year ended 31 July 2014 Audited
£ £ £
Continuing operations
Revenue 5,138 5,652 17,764
Cost of sales - - -
Gross profit 5,138 5,652 17,764
Administrative expenses 2 (582,768) (806,538) (1,331,350)
Operating loss (577,630) (800,886) (1,313,586)
Finance income Share of loss of Associates 1,105 (22,523) 3,434 (48,677) 8,921 (82,961)
Loss before taxation (599,048) (846,129) (1,387,626)
Taxation 3 - 140,177 140,925
Loss for the period attributable to equity holders of the parent (599,048) (705,952) (1,246,701)
Other comprehensive income
Reclassification of funds received from BP Gas Marketing Limited 4 - 2,028,275 2,033,450
Total comprehensive (loss)/profit for the period attributable to the equity holders of the parent (599,048) 1,322,323 786,749
Basic and diluted earnings per share
Continuing operations 5 (0.60)p (0.73)p (1.27)p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 January 2015
Notes 31 January 2015 Unaudited 31 January 2014 Unaudited 31 July 2014 Audited
£ £ £
Non-current assets
Intangible fixed assets: Exploration & Evaluation Gas Storage DevelopmentProperty, plant and equipment 3,882,8233,843,219440,100 3,588,6893,585,643440,559 3,827,0663,641,437440,100
Investments in associates 2,522,489 2,579,296 2,545,012
Total non-current assets 10,688,631 10,194,187 10,453,615
Current assets
Trade and other receivables 139,047 992,537 144,823
Cash and cash equivalents 624,227 1,334,748 1,648,955
Total current assets 763,274 2,327,285 1,793,778
Current liabilities
Trade and other payablesDeferred income tax liabilities 3 (608,650)- (585,304)(72,949) (836,287)-
Total current liabilities (608,650) (658,253) (836,287)
Net current assets 154,624 1,669,032 957,491
Non-current liabilities
Deferred income tax liabilities 3 (745,183) (672,982) (745,183)
Net assets 10,098,072 11,190,237 10,665,923
Shareholders' funds
Share capital 9,949,160 9,949,160 9,949,160
Share premium 11,920,219 11,920,219 11,920,219
Merger reserve 8,988,112 8,988,112 8,988,112
Share based payment reserve 561,607 519,150 530,410
Retained earnings (21,321,026) (20,186,404) (20,721,978)
Total equity 10,098,072 11,190,237 10,665,923
Total equity
10,098,072
11,190,237
10,665,923
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 January 2015
Share capital Share premium Merger reserve Share based payment reserve Retained earnings Attributable to the owners of the parent Non-controlling interests Total equity
£ £ £ £ £ £ £ £
Balance at 31 July 2013 9,149,160 11,920,219 8,988,112 434,920 (21,508,727) 8,983,684 1,427,277 10,410,961
Loss for the period - - - - (705,952) (705,952) - (705,952)
Other comprehensive income - - - - 2,028,275 2,028,275 - 2,028,275
Total comprehensiveprofit for the period - - - - 1,322,323 1,322,323 - 1,322,323
Issue of equity capital 800,000 - - - - 800,000 - 800,000
Share based payments - - - 84,230 - 84,230 - 84,230
Funds received from BPGM - - - - - - 600,998 600,998
Reclassification of funds received from BPGM (Note 4) - - - - - - (2,028,275) (2,028,275)
Balance at 31 January 2014 9,949,160 11,920,219 8,988,112 519,150 (20,186,404) 11,190,237 - 11,190,237
Loss for the period - - - - (540,749) (540,749) - (540,749)
Other comprehensive income - - - - 5,175 5,175 - 5,175
Total comprehensive loss for the period - - - - (535,574) (535,574) - (535,574)
Share based payments - - - 11,260 - 11,260 - 11,260
Funds received from BPGM - - - -- - - 5,175 5,175
Reclassification of funds received from BPGM (Note 4) - - - - - - (5,175) (5,175)
Balance at 31 July 2014 9,949,160 11,920,219 8,988,112 530,410 (20,721,978) 10,665,923 - 10,665,923
Loss for the period - - - - (599,048) (599,048) - (599,048)
Total comprehensive loss for the period - - - - (599,048) (599,048) - (599,048)
Share based payments - - - 31,197 - 31,197 - 31,197
Balance at 31 January 2015 9,949,160 11,920,219 8,988,112 561,607 (21,321,026) 10,098,072 - 10,098,072
10,098,072
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 31 January 2015
Notes Six months ended 31 January 2015 Unaudited Six months ended 31 January 2014 Unaudited Year ended 31 July 2014 Audited
£ £ £
Net cash used in operating activities 6 (768,294) (542,186) (702,407)
Investing activities
Interest received 1,105 2,358 4,772
Purchase of intangible assets: Exploration & Evaluation Gas Storage Development (55,757)(201,782) (109,846)(199,498) (347,211)(255,292)
Proceeds from disposal of exploration intangible assets - - 360,000
Portland Gas Limited preference share receipts - 367,476 367,474
Net cash (used in)/from investing activities (256,434) 60,490 129,743
Financing activities
Proceeds on issue of ordinary shares - 800,000 800,000
Contribution from non-controlling interest - 200,998 606,173
Cash inflow on reclassification of assets previously held for sale - 40,701 40,701
Net cash generated from financing activities - 1,041,699 1,446,874
Net (decrease)/increase in cash and cash equivalents (1,024,728) 560,003 874,210
Cash and cash equivalents at beginning of period 1,648,955 774,745 774,745
Cash and cash equivalents at end of period 624,227 1,334,748 1,648,955
Cash and cash equivalents at end of period
624,227
1,334,748
1,648,955
NOTES TO THE INTERIM RESULTS
for the six months ended 31 January 2015
1. Basis of preparation
The interim financial information in this report has been prepared using
accounting policies consistent with IFRS as adopted by the European Union.
IFRS is subject to amendment and interpretation by the International
Accounting Standards Board (IASB) and the IFRS Interpretations Committee and
there is an ongoing process of review and endorsement by the European
Commission. The financial information has been prepared on the basis of IFRS
that the Directors expect to be adopted by the European Union and applicable
as at 31 July 2015.
Non-statutory accounts
Financial information contained in this document does not constitute statutory
accounts within the meaning of section 434 of the Companies Act 2006. A copy
of the statutory accounts of the Company for the year ended 31 July 2014 has
been delivered to the Registrar of Companies. The audit report on these
accounts is unqualified and did not contain a statement under Sections 498(2)
or (3) of the Companies Act 2006.
In their report, the auditors drew attention by way of emphasis and without
qualifying their report to uncertainties associated with each of a) the
carrying value of the Group's development costs relating to the Islandmagee
gas storage facility and the amounts due to the Company from its subsidiaries
if further funding to progress the project was not secured; b) the carrying
value of the Group's licence interest in Licence PL1/10 if the Group were
unable to providing a commitment to DETI by 4 March 2015 to undertake
exploration drilling on the licence before the end of the current licence
period in March 2016 and the possible relinquishment of the licence in those
circumstances; and c) the adoption of the going concern basis for the
preparation of the accounts in the circumstances that there was material
uncertainty regarding the Group's ability to secure new funding to meet its
obligations for the foreseeable future. The current position regarding these
uncertainties are detailed below.
The financial information for the 6 months ended 31 January 2015 and 31
January 2014 is unaudited.
Accounting policies
The interim financial information has been prepared under the historical cost
convention. The same accounting policies, presentation and methods of
computation are followed in preparing the interim financial information as
were applied in preparation of the Group's financial statements for the year
ended 31 July 2014.
Funding for and carrying value of Islandmagee gas storage project
The next stage of the development of this project (drilling a well to obtain a
salt core sample to obtain and subsequent testing and engineering work) was
funded after the period end. Once this work is completed, it is the Directors'
intention to realise cash for the Group's interest in the project as soon as
practicable with a target of early 2016.
Having reviewed the value of the Islandmagee gas storage project using the
same methodologies as described in the 2014 financial statements the Directors
are of the opinion that the asset is not impaired in value.
Carrying value of exploration and evaluation assets
The Group is currently seeking a farm in partner for the PL1/10 license and to
ensure that the all necessary funds are available for the proposed Q4 drilling
programme. The terms of the PL1/10 license required a commitment by the
license partners before 4 March 2015 to the drilling of a well before the end
of the licence term on 4 March 2016. In February DETI accepted a notice of the
Company's intent to drill a well before the end of the licence term dependent
upon a number of factors including rig availability and the completion of all
contractual arrangements.
Under the terms of the Dorset offshore licence P1918, a well is required to be
drilled by February 2016. However, seasonal restrictions on the timing of when
2D seismic data can be obtained will delay the finalisation of the design of
the first well and the P1918 partners are investigating the possibility with
DECC of a licence extension.
Having reviewed the value of exploration and evaluation assets using the same
methodologies as described in the 2014 financial statements the Directors are
of the opinion that these assets are not impaired in value.
Going concern
The Company's current exploration activities are carried by partners and the
next stage of the Islandmagee gas storage development is funded. Following the
February 2015 equity fundraising, the Group has sufficient resources to cover
its management and administrative costs to the end of December 2015.
The directors anticipate that additional funding to meet costs beyond the end
of December 2015 can be generated through a combination of further data sales,
the realisation or partial realisation of the Group's assets or if necessary a
further equity fundraising. Consequently the Directors consider it appropriate
to prepare the interim financial information on a going concern basis which
assumes that the Group will continue in operational existence without
significant curtailment of its activities for the foreseeable future.
NOTES TO THE INTERIM RESULTS
for the six months ended 31 January 2015 (continued)
2. Administrative expenditure
Six months ended 31 January 2015 Unaudited Six months ended 31 January 2014 Unaudited Year ended 31 July 2014Audited
£ £ £
Administrative costs which are paid in cash 537,910 628,812 1,126,482
Non-cash items:- Share options expense 31,197 84,230 95,490
- Depreciation - 1,515 1,974
- Exchange differences - 49,197 58,903
Pre-licence costs written offExpenses of share issue 13,661- -42,784 5,71742,784
582,768 806,538 1,331,350
13,661-
-42,784
5,71742,784
582,768
806,538
1,331,350
3. Taxation
The gross movement on the deferred income tax account is as follows:
Six months ended 31 January 2015 Unaudited Six months ended 31 January 2014 Unaudited Year ended 31 July 2014Audited
£ £ £
Balance at the beginning of the period (745,183) (886,108) (886,108)
Reversal of timing differences - 102,882 96,446
Change of rate of tax - 37,295 44,479
Credit for the period - 140,177 140,925
Balance at the end of the period (745,183) (745,931) (745,183)
Classified as current - (72,949) -
Classified as non-current (745,183) (672,982) (745,183)
Balance at the end of the period (745,183) (745,931) (745,183)
(672,982)
(745,183)
Balance at the end of the period
(745,183)
(745,931)
(745,183)
NOTES TO THE INTERIM RESULTS
for the six months ended 31 January 2015 (continued)
4. Reclassification of assets previously held for
sale To 24 January 2014 BP Gas Marketing
Limited (BPGM) had an option to acquire a
majority holding in the equity of the Group's
subsidiary, Islandmagee Storage Limited (IMSL)
and option payments from BPGM were classified
as Non-controlling interests as a component of
equity in the Group balance sheet. On 24
January 2014 BPGM relinquished its option and
the balance of amounts paid and payable by
BPGM at that date amounting to £2,033,450 was
transferred from Non-controlling interests to
Retained earnings.
5. Earnings per share
Six months ended 31 January 2015Unaudited Six months ended 31 January 2014 Unaudited Year ended 31 July 2014 Audited
£ £ £
LossThe (loss) for purposes of basic
anddiluted loss per share being the net(loss)
attributable to equity shareholders:
Continuing operations (599,048) (705,952) (1,246,701)
Number of shares
Weighted average number of ordinary shares for 99,491,599 97,174,659 98,307,952
the purposes of basic earnings per share
Basic and diluted earnings per share
Continuing operations (0.60)p (0.73)p (1.27)p
(1.27)p
For all periods presented, share options were not dilutive as a loss was
incurred.
Note 9 details the post period end issue of shares which will impact on future
earnings per share.
NOTES TO THE INTERIM RESULTS
for the six months ended 31 January 2015(continued)
6. Cash (used in) operations Six months ended 31 January 2015 Unaudited Six months ended 31 January 2014 Unaudited Year ended 31 July 2014Audited
£ £ £
Operating loss for the period (577,630) (800,886) (1,313,586)
Decrease in trade and other receivables 5,776 20,893 103,863
(Decrease)/Increase in trade and other payables (227,637) 12,472 263,455
Share option expenseDepreciationExchange differences on eCORP debtor 31,197- - 84,2301,515 49,197 95,4901,974 56,004
Net working capital change in Islandmagee Storage Limited prior to reclassification - 90,393 90,393
Cash used in operating activities (768,294) (542,186) (702,407)
Cash used in operating activities
(768,294)
(542,186)
(702,407)
7. Fyrd asset exchange
In December 2014 the group agreed to an asset exchange with Fyrd Energy
Limited ("Fyrd") ("the Agreement").
Under the terms of the Agreement, InfraStrata will acquire a 25% interest in
UK Promote Licence P2235, a 22.5% shareholding in Integrated GeoRenewables
(Dorset) Limited ("IGR") and a carry for the first £200,000 of expenditure by
IGR. InfraStrata will assign its rights and intellectual property in the
Portland project (excluding the gas pipeline construction authorisation and
associated rights) to IGR and will grant an option to that company to acquire
the gas pipeline rights from InfraStrata in return for the Company being
carried for a further £200,000 of expenditure by IGR.
The Portland project was fully impaired in prior years and it is not expected
that this transaction will have any impact on the reported results.
8. Dividend
The Directors do not recommend payment of a dividend.
9. Post balance sheet events
In February 2015 the Company's subsidiary Islandmagee Storage Limited received
£400,000 in cash in relation to a data release agreement in respect of
proprietary seismic data in Northern Ireland.
On 23 February 2015 the Company issued 52,500,000 new ordinary shares of 1
pence each at 4 pence per share to institutional and other shareholders and
raised £2,100,000 before costs. Following the issue, the Company has
151,991,599 ordinary shares in issue.
9. Publication of the interim report
This interim report is available on the Company's website
www.infrastrata.co.uk.
This information is provided by RNS
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