REG-Bisichi Plc: Half-year Report
31/08/2021 07:05
31 August 2021
BISICHI PLC
Interim Results for the period ended 30 June 2021
For the six months ending 30(th) June 2021:
· EBITDA 1 :
£1.03million (2020: 0.35million
loss)
· Adjusted EBITDA 2 :
£0.74million (2020: 0.1million)
· Loss before tax
£0.7million (2020:
£2.0million)
· EPS (basic): 2.78 p
loss (2020: 12.66 p loss)
· Total production: 553,000
tonnes (2020: 580,000 tonnes)
· Improved international coal markets help offset difficult mining
conditions at the Group’s South African Mining operations in the first half
of 2021.
· The Group’s management continue to focus on opportunities to extend
the life of mining operations in South Africa, as well as developing new
opportunities at the Group’s coal processing plant, Sisonke Coal Processing.
· Invoiced income from the Group’s directly owned UK retail property
portfolio was £0.59million (2020: £0.50million) with rental revenue
collections improving during the period.
END
For further information, please call:
Andrew Heller/Garrett Casey Bisichi PLC
020 7415 5030
1 Earnings before Interest, taxation, depreciation and amortisation.
2 Operating profit before depreciation, fair value adjustments and exchange
movements.
Bisichi PLC
Half year review – 30 June 2021
In the wake of the challenges of 2020 arising from the Covid-19 pandemic, we
are pleased to report that your management has continued to ensure the
Group’s key priorities are addressed. These are the health and safety of our
employees and stakeholders, ensuring our operations continued in an efficient
manner, and maintaining balance sheet flexibility.
As we reflect back on the last eighteen months, one of the most challenging
priorities for your Company has been the continuity of our South African
mining and coal processing operations. At the beginning of the crisis, when
global coal demand fell, the average weekly price of Free on Board (FOB) Coal
from Richard Bay Coal Terminal (API4 price) fell from a high of US$92 in
January 2020 to $44 in mid-April 2020. Thereafter, coal prices remained
largely supressed until the end of the year. Under these very difficult
circumstances, your management has worked tirelessly, along with our key
stakeholders, to ensure that our South African operations continued operating
in an efficient manner until global economic activity and coal markets
improved going into 2021.
During the first half of 2021, we are pleased to report that the improvement
in global economic activity had a significant impact on demand for coal in the
international market. In the first six months of 2021, the API4 price averaged
US$97, compared to $67 in the first six months of 2020 when, as outlined
above, demand for coal was particularly impacted by the outbreak of Covid-19.
This has had a positive impact on the Group’s operations, particularly our
South African coal mining and processing operations. As a result, in the six
months ended 30 June 2021, Bisichi PLC made a profit before interest, tax,
depreciation and amortisation of £1.03 million (2020: loss of £0.35
million).
Results would have been even better if we had not encountered difficult mining
conditions at Black Wattle, our South African mining operation, which impacted
adversely our coal production during the period. Nonetheless, the mine
achieved production of 553,000 metric tonnes compared to 580,000 metric tonnes
in the first half of 2020. Black Wattle’s operating costs during the period
were also impacted by the difficult mining conditions, as well as the higher
overall cost of mining of the remaining reserves at Black Wattle’s current
mining area.
Despite lower output from Black Wattle, at Sisonke Coal Processing, our South
African coal processing operation, we were able to take advantage of the
improved coal price by increasing overall coal processed and reducing our
stockpiles of coal that had built up during the economic downturn of 2020. The
overall increase in Group revenue, operating costs and earnings during the
first half of the year can mainly be attributable to our coal processing
operations.
Looking forward, the Group’s overall mining production in the second half of
2021 is expected to remain at similar levels to the first half of the year.
However, plans are in place to move into a new mining area at Black Wattle by
the end of 2021, where mining conditions and production are expected to
improve. In the interim, the Group will look to keep costs as low as possible
while developing new opportunities for Sisonke Coal Processing, to take
advantage of the improved coal market conditions seen in 2021 to date. In
addition, we continue to work closely with our BEE partner in South Africa, to
seek further opportunities to extend the life of mine of our existing mining
operations or to develop new independent mining operations in South Africa.
In the UK, although the final impact of the pandemic on the UK property
portfolio remains uncertain, in 2021 to date we have seen rental revenue
collections improve as tenants begin to resume operating. Overall, the Group
billed revenue from our directly owned property portfolio of £0.59million
(2020: £0.50million) during the period.
The Group continues to hold its joint venture investment, with London &
Associated Properties PLC and Metroprop Real Estate Ltd, in the freehold of a
retail and residential redevelopment in West Ealing, London.
As previously announced, planning permission for an expanded residential
redevelopment of 56 flats on the site has been received. Planning approval
documents for the planning consent are currently being finalised and we look
forward to updating shareholders further on the situation in due course.
Finally, during these times, your management continue to do their utmost to
ensure the Group’s key priorities as outlined above are delivered.
Therefore, until such time as the impact of Covid-19 can be fully assessed,
the Board has decided that it will not be proposing an interim dividend. We
will review this when there is greater visibility of the ongoing impact of
Covid-19.
After what has been an incredibly challenging eighteen months we would like to
thank all our employees and stakeholders for their hard work and support
during this period.
.
Sir Michael
Heller
Andrew Heller
Chairman
Managing Director
31 August
2021
Bisichi PLC
Consolidated income statement
For the six months ended 30 June 2021
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 June 30 June 31 December
2021 2020 2020
Notes £000 £000 £000
Group revenue 1 23,639 14,250 29,805
Operating costs (24,238) (15,731) (33,070)
Operating profit on trading activities (599) (1,481) (3,265)
Decrease in value of investment properties - - (1,295)
Gain/(Loss) on investments held at fair value 376 (261) 67
Operating profit 1 (223) (1,742) (4,493)
Share of profit/(loss) in joint ventures (80) 13 (87)
Profit before interest and taxation (303) (1,729) (4,580)
Interest receivable 9 19 25
Interest payable (392) (309) (641)
Profit before taxation 1 (686) (2,019) (5,196)
Income tax 2 272 481 1,402
Profit for the period (414) (1,538) (3,794)
Attributable to:
Equity holders of the company (297) (1,352) (3,354)
Non-controlling interest (117) (186) (440)
Profit for the period (414) (1,538) (3,794)
Earnings per share - basic 3 (2.78p) (12.66p) (31.42p)
Earnings per share - diluted 3 (2.78p) (12.66p) (31.42p)
Bisichi PLC
Consolidated statement of comprehensive income
For the six months ended 30 June 2021
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 June 30 June 31 December
2021 2020 2020
£000 £000 £000
Profit for the period (414) (1,538) (3,794)
Other comprehensive income:
Exchange differences on translation of foreign operations 6 (467) (467)
Taxation - - -
Other comprehensive income for the period, net of tax 6 (467) (467)
Total comprehensive income for the period (408) (2,005) (4,261)
Attributable to:
Equity shareholders (292) (1,752) (3,752)
Non-controlling interest (116) (253) (509)
Total comprehensive income for the period (408) (2,005) (4,261)
Bisichi PLC
Consolidated Balance Sheet
as at 30 June 2021
Unaudited Unaudited Audited
30 June 2021 30 June 2020 31 December 2020
Assets £000 £000 £000
Non-current-assets
Value of investment properties 10,270 11,566 10,270
Fair value of head leases 201 184 201
Investment property 10,471 11,750 10,471
Reserves, plant and equipment 9,674 8,786 10,174
Investments in joint ventures 1,174 1,355 1,255
Other investments at fair value through profit and loss (“FVPL”) 2,721 449 1,746
Total non-current assets 24,040 22,340 23,646
Current assets
Inventories 2,593 4,552 3,445
Trade and other receivables 7,659 6,385 6,958
Corporation tax recoverable - - -
Investments in listed securities held at FVPL 923 926 833
Cash and cash equivalents 3,543 4,977 3,768
Total current assets 14,718 16,840 15,004
Total assets 38,758 39,180 38,650
Liabilities
Current liabilities
Borrowings (3,995) (4,835) (5,110)
Trade and other payables (12,807) (8,409) (10,856)
Current tax liabilities (1) (317) (209)
Total current liabilities (16,803) (13,561) (16,175)
Non-current liabilities
Borrowings (4,076) (4,180) (3,943)
Provision for rehabilitation (1,461) (1,359) (1,442)
Finance lease liabilities (437) (231) (427)
Deferred tax liabilities (200) (1,404) (474)
Total non-current liabilities (6,174) (7,174) (6,286)
Total liabilities (22,977) (20,735) (22,461)
Net assets 15,781 18,445 16,189
Equity
Share capital 1,068 1,068 1,068
Share premium 258 258 258
Translation reserve (2,483) (2,490) (2,488)
Other reserves 707 707 707
Retained earnings 16,231 18,530 16,528
Total equity attributable to equity shareholders 15,781 18,073 16,073
Non-controlling interest - 372 116
Total equity 15,781 18,445 16,189
Bisichi PLC
Consolidated Cash Flow Statement
For the six months ended 30 June 2021
Unaudited Unaudited Audited
30 June 30 June 31 December
2021 2020 2020
£000 £000 £000
Cash flows from operating activities
Operating profit (223) (1,743) (4,493)
Depreciation 1,338 1,379 2,193
Unrealised (gain)/loss on investments (376) 261 (67)
Unrealised loss on investment properties - - 1,295
Exchange adjustments 9 206 (39)
Movement in working capital 2,075 (633) 2,374
Net interest paid (383) (289) (616)
Income tax (paid)/received (211) (72) (198)
Cash flow from operating activities 2,229 (891) 449
Cash flows from investing activities (1,395) (2,079) (4,292)
Cash flows from financing activities (142) (125) (285)
Net increase/(decrease) in cash and cash equivalents 692 (3,095) (4,128)
Cash and cash equivalents at 1 January (1,078) 2,878 2,878
Exchange adjustment (40) 481 172
Cash and cash equivalents at end of period (426) 264 (1,078)
Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise the following balance sheet amounts:
Cash and cash equivalents 3,543 4,977 3,768
Bank overdrafts (3,969) (4,713) (4,846)
Cash and cash equivalents at end of period (426) 264 (1,078)
Bisichi PLC
Consolidated statement of changes in shareholders' equity
For the six months ended 30 June 2021
Share Share Translation Available for sale Other Retained Non- controlling Total
capital premium reserve reserves reserves earnings Total Interest Equity
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 31 December 2019 1,068 258 (2,090) - 707 19,989 19,932 625 20,557
Profit for the period - - - - - (1,352) (1,352) (186) (1,538)
Other comprehensive income and expense - - (400) - - - (400) (67) (467)
Total comprehensive income for the period - - (400) - - (1,352) (1,752) (253) (2,005)
Dividend - - - - - (107) (107) - (107)
Balance at 30 June 2020 1,068 258 (2,490) - 707 18,530 18,073 372 18,445
Balance at 31 December 2019 1,068 258 (2,090) - 707 19,989 19,932 625 20,557
Profit for the year - - - - - (3,354) (3,354) (440) (3,794)
Other comprehensive income and expense - - (398) - - - (398) (69) (467)
Total comprehensive income for the year - - (398) - - (3,354) (3,752) (509) (4,261)
Dividend - - - - - (107) (107) - (107)
Balance at 31 December 2020 1,068 258 (2,488) - 707 16,528 16,073 116 16,189
Profit for the year - - - - - (297) (297) (117) (414)
Other comprehensive income and expense - - 5 - - - 5 1 6
Total comprehensive income for the period - - 5 - - (297) (292) (116) (408)
Dividend - - - - - - - - -
Balance at 30 June 2021 1,068 258 (2,483) - 707 16,231 15,781 - 15,781
ACCOUNTING POLICIES AND NOTES TO THE
ACCOUNTS:
The results for the six months ended 30 June 2021 have been prepared in
accordance with International Financial Reporting Standards (IFRS). The
principal accounting policies applied are the same as those set out in the
Financial Statements for the year ended 31 December 2020, and which will form
the basis of the 2021 Annual report.
1. Segmental analysis
For management purposes, the Group is organised into two operating Divisions,
Mining and Property. These Divisions are the primary basis on which the Group
reports its segment information. This is consistent with the way the Group is
managed and with the format of the Group's internal financial reporting.
Unaudited Unaudited Audited
30 June 30 June 31 December
2021 2020 2020
£000 £000 £000
Revenue
Mining 23,016 13,716 28,567
Property 594 503 1,181
Other 29 31 57
23,639 14,250 29,805
Operating profit/(loss)
Mining (900) (1,920) (3,975)
Property 275 409 (637)
Other 402 (231) 119
(223) (1,742) (4,493)
Share of profit in joint ventures (80) 13 (87)
Interest receivable 9 19 25
Interest payable (392) (309) (641)
Profit/(Loss) before taxation (686) (2,019) (5,196)
2. Taxation
Unaudited Unaudited Audited
30 June 30 June 31 December
2021 2020 2020
£000 £000 £000
Based on the results for the period:
Corporation tax at 27.00% (2020: 27%) 5 6 12
Prior year adjustment - UK - - 2
5 6 14
Deferred taxation (276) (487) (1,416)
(271) (481) (1,402)
3. Earnings/ (loss) per share
Both the basic and diluted earnings per share calculations are based on a loss
of £297,000 (2020: loss of £1,352,000). The basic earnings per share has
been calculated on a weighted average of 10,676,839 (2020: 10,676,839)
ordinary shares being in issue during the year. The diluted earnings per share
has been calculated on the weighted average number of shares in issue of
10,676,839 (2020: 10,676,839) plus the dilutive potential ordinary shares
arising from share options of nil (2020: nil) totalling 10,676,839 (2020:
10,676,839).
4. Investment properties
Investment properties are held a fair value at each reporting period.
Management evaluate on an ongoing basis the impact of Covid-19 and the current
economic performance of the UK Retail market on the future performance of the
group’s existing UK property portfolio. The Board considers the final impact
of Covid-19 on the investment properties to remain uncertain. However the
Directors have placed a valuation on the properties which is not materially
different to the value as at 31 December 2020. Therefore no change in fair
value of investment properties has been made during the period. Investment
properties are therefore included at a Director’s valuation which is
considered to be the fair value as at 30 June 2021. Please refer to page 71 to
73 of the 2020 Annual report and Accounts for details on the valuation of
investment and development properties as at 31 December 2020.
5. Related Parties
The related parties and the nature of costs recharged are as disclosed in the
Group's annual financial statements for the year ended 31 December 2020. The
Group paid management fees of £100,000 (30 June 2020: £100,000 December
2020: £200,000) to London & Associated Properties PLC, an associated company.
6. Financial information
The above financial information does not constitute statutory accounts within
the meaning of section 434 of the Companies Act 2006. The figures for the
year ended 31st December 2020 are based upon the latest statutory accounts,
which have been delivered to the Registrar of Companies; the report of the
auditors on those accounts was unqualified and did not contain a statement
under Section 498(2) or (3) of the Companies Act 2006.
As required by the Disclosure and Transparency Rules of the UK's Financial
Conduct Authority, the interim financial statements have been prepared in
accordance with the International Financial Reporting Standards (IFRS) and in
accordance with both IAS 34 'Interim Financial Reporting' as adopted by the
European Union and the disclosure requirements of the Listing Rules.
The half year results have not been audited or subject to review by the
company's auditors.
The annual financial statements of Bisichi PLC are prepared in accordance with
IFRS as adopted by European Union. The same accounting policies are used for
the six months ended 30 June 2021 as were used for the year ended 31 December
2020.
The assessment of new standards, amendments and interpretations issued but not
effective, are not anticipated to have a material impact on the financial
statements.
The largest areas of estimation and uncertainty in the interim financial
statements are in respect of:
- The valuation of investment and development properties;
- Life of mine and reserves;
- Depreciation;
- Provision for rehabilitation (relating to environmental rehabilitation
of mining areas); and
- Impairment
Property, plant and equipment representing the group’s mining assets in
South Africa are reviewed for impairment where there is evidence of a material
impairment. The impairment test indicated significant headroom as at 31
December 2020 and no impairment was considered appropriate. Although the final
impact of Covid-19 remains uncertain, the directors have assessed the expected
range of impact of the Covid-19 pandemic on its impairment model using similar
key assumptions and estimates as outlined on page 60 of the 2020 Annual report
and Accounts, and no impairment was considered appropriate as at 30 June 2021.
Other areas of estimation and uncertainly are referred to in the Group's
annual financial statements. There have been no significant changes to the
basis of accounting of key estimates and judgements as disclosed in the annual
report as at 31 December 2020.
The interim financial statements have been prepared on the going concern
basis. Although the final impact of Covid-19 on both our UK and South African
operations remains uncertain and an estimate of the overall financial effect
cannot be made, the Directors have assessed the range of expected impact of
the pandemic on its cashflow forecasts. The forecasts demonstrate that the
group has adequate resources to continue in operational existence for the
foreseeable future and is well placed to manage its business risks.
7. Dividend
No final dividend in respect of 2020 was proposed by the Board. No interim
dividend for the year ended 31 December 2021 has been proposed by the Board.
8. Principal risks and uncertainties
The Group has an established risk management process which works within the
corporate governance framework as set out in the 2020 Annual Report and
Accounts. Risks and uncertainties identified by the Group are set out on page
11 of the 2020 Annual Report & Accounts and are reviewed on an ongoing basis.
There have been no significant changes in the first half of 2021 to the
principle risks and uncertainties as set out in the 2020 Annual Report &
Accounts.
Covid-19 risk:
The Group is proactively assessing and managing the potential risks brought
about by the uncertainty of the Covid-19 pandemic. Overall the Group is
exposed to impacts on the health and safety of its employees and stakeholders
and risks related to business continuity. In the UK, the Group expects there
to be an impact on retail property revenue and potentially values. In South
Africa, the Group is expected to be impacted by additional health and safety
measures related to its workforce and coal price risk.
Risks faced by the business are assessed by the Board on an ongoing basis.
Strategies for mitigating the risks have been defined and specific measures
for achieving these are already underway. These include the measures outlined
in the Chairman’s Statement, Mining Review and Financial Review &
Performance sections of the 2020 Annual report and Accounts. The final impact
of the Covid-19 pandemic remains uncertain and the Group will adapt plans
accordingly as more information becomes available or government advice
changes.
The other principal risks as stated in the 2020 Annual Report & Accounts
reflect the challenging environment in which the business operates and are
considered under the following broad headings:
Mining:
- Coal price risk
- Mining risk
- Currency risk
- New reserves and mining permissions
- Power supply risk
- Flooding risk
- Environmental risk
- Health & safety risk
- Labour risk
- Cashflow
Property:
- Property valuation
- Economic performance of United Kingdom
- Covid-19
- Brexit
9. Board approval
These interim results were approved by the Board of Bisichi PLC on 31 August
2021.
DIRECTORS RESPONSIBILITY STATEMENT AND REPORT ON PRINCIPAL RISKS
AND UNCERTAINITIES
Responsibility Statement
We confirm to the best of our knowledge:
(a) the condensed set of financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by the
EU;
(b) the interim management report includes a fair review of the information
required by:
(1) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication
of important events that have occurred during the first six months of the
financial year and their impact on the condensed set of financial statements;
and a description of the principal risks and uncertainties for the remaining
six months of the year; and
(2) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during the period; and any changes in the related
party transactions described in the last annual report that could do so.
This report contains forward-looking statements. These statements are based on
current estimates and projections of management and currently available
information. Future statements are not guarantees of the future developments
and results outlined therein. Rather, future developments and results are
dependent on a number of factors; they involve various risks and uncertainties
and are based upon assumptions that may not prove to be accurate. Risks and
uncertainties identified by the Group are set out on page 11 of the 2020
Annual Report & Accounts. We do not assume any obligation to update the
forward-looking statements contained in this report.
Michael Heller
Andrew Heller
Chairman
Managing Director
31 August 2021
DIRECTORS AND
ADVISERS
Directors
Sir Michael A Heller MA, FCA (Chairman)
Andrew R Heller MA, ACA (Managing Director)
Robert Grobler PR Cert Eng (Mining Director)
Garrett Casey CA (SA) (Finance
Director)
Christopher A Joll MA
(Non-executive)
John A Sibbald BL (Non-executive)
John Wong ACA, CFA (Non-executive)
Secretary & Registered office Garrett
Casey CA
(SA)
24 Bruton
Place
London W1J 6NE
Black Wattle Colliery - Directors Andrew Heller
(Managing Director)
Garrett Casey (Finance Director)
Ethan Dube (Commercial Director)
Robert Grobler (Mining Director)
Millicent Zvarayi
Registrars and transfer office Link Group
Shareholder Services
10th Floor
Central Square
29 Wellington Street
Leeds
LS14DL
UK Telephone: 0371 664 0300
International Telephone: +44 (0) 371 664 0300
(Calls are charged at the standard geographic rate and will vary by provider.
Calls outside the United Kingdom will be charged at the applicable
international rate. We are open between 09:00 - 17:30, Monday to Friday
excluding public holidays in England and Wales)
Website: www.linkgroup.com
E-mail: shareholderenquiries@linkgroup.co.uk
Company registration number 112155 (Incorporated
in England and Wales)
Web site
www.bisichi.co.uk
E-mail
admin@bisichi.co.uk
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