REG-Bisichi Plc: Half-year Report
31/08/2022 07:45
31 August 2022
This announcement contains inside information for the purposes of Article 7 of
the UK Market Abuse Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018
BISICHI PLC
Interim Results for the period ended 30 June 2022
For the six months ending 30(th) June 2022:
* EBITDA 1 :
£22.25million (2021:
£1.03million)
* Adjusted EBITDA 2 : £22.24million (2021:
£0.74million)
* Profit before tax
£21.17million (2021: Loss: £0.7million)
* EPS (basic): 108.29
p (2021: 2.78 p
loss)
* The substantial increase in group earnings and cash generation in the first
half of the year can be attributed to a very strong performance from the
Group’s South African mining and processing operations.
* International coal market conditions continued to improve significantly in
first half of 2022 with Group exports to date in line with average export
tonnages achieved in 2021.
* Black Wattle’s transition into new mining areas now complete with mining
production expected to improve in the second half of 2022.
* In light of the strong results achieved for the first half of the year and
the performance of the Group’s South African operations in the second half
of the year to date, an interim dividend of 10p declared.
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 2022
Follow our trading update on 6 June 2022, I am very pleased to report to
shareholders that for the half year ended 30 June 2022, your company made a
profit before interest, tax, depreciation and amortisation (EBITDA) of
£22.25million (2021: £1.03 million) and an operating profit before
depreciation, fair value adjustments and exchange movements (Adjusted EBITDA)
of £22.24million (2021: £0.74million).
These unprecedented earnings for the Group can be attributed to a strong
performance from Sisonke Coal Processing, the Group’s South African coal
processing operation which benefited from significantly higher prices of Free
on Board (FOB) coal from Richards Bay Coal Terminal (API4 price). During the
period, the weekly API4 price averaged $277 compared to $97 in the first half
of 2021 and $151 in the second half the year. Despite constraints in
transporting coal for export on the South African rail network, constraints
which were largely beyond our control, we were able to take advantage of the
improved international coal price by increasing our export sales during the
first half of the year to 177,000 metric tonnes, compared to 171,000 metric
tonnes in the first half of 2021 and 320,000 metric tonnes overall in 2022.
Results would have been even better if we had not encountered operational
delays that impacted our transition into new mining areas at Black Wattle,
which in turn impacted adversely our coal production. During the period the
mine achieved production of 301,000 metric tonnes compared to 553,000 metric
tonnes in the first half of 2021. We are pleased to report that these delays
have now been addressed successfully and in July the transition into the new
mining areas was completed. Consequently, we expect mining production to
recover in the second half of the year to the levels seen in 2021. The
increases evident on the balance sheet in our reserves, plant and equipment is
mainly attributable to the costs of completing the development of these new
mining areas which will be mined throughout the remainder of 2022 and 2023.
Despite the lower coal production from Black Wattle, at Sisonke Coal
Processing, we were able maintain our overall levels of coal processed. During
the period the Group sold 614,000 metric tonnes (2021: 731,000 metric tonnes)
and reported £44.7million in mining revenue (2021: £23.0million) with the
higher prices achievable for our coal offsetting the lower overall quantity of
coal sold.
Looking forward into the second half of 2022, we are already beginning to see
the benefits from the mining of the new areas at Black Wattle. This is mainly
due to the higher quality coal being mined which is currently in high demand
in both our export and domestic markets. As a result, we are pleased to report
that, in the second half of the year to date, we have achieved significant
improvements in prices for our coal in the domestic market. In the export
market, the API4 price continues to remain at levels similar to the first half
of 2022 and exports for the year to date are in line with the average export
tonnages we achieved in 2021. However, looking beyond the year to date,
uncertainties remain. These are particularly with regard to the sustainability
of the higher coal prices in both our markets, as well as the impact of
continued constraints in transporting coal for export on the South African
rail network.
In addition to our existing mining and processing operations, the Group is
searching for new independent mining and renewable energy related
opportunities.
In the UK, we have seen rental revenue from our retail property portfolio
remain stable in the first half of 2022. Overall, the Group billed revenue
from our directly owned property portfolio of £0.56million (2021:
£0.59million) during the first half of the year. The Group continues to hold
its joint venture development investment in West Ealing, with London
Associated Properties PLC and Metroprop Real Estate Ltd. We continue to
progress the development and a final decision on whether we will develop this
asset ourselves or sell it has yet to be taken.
Finally, in light of the strong results achieved for the first half of the
year and the performance of the Group’s South African operations in the
second half of the year to date, your directors intend to pay an interim
dividend of 10p (2021: Nil) per share. The dividend will be payable on Friday
3 February 2023 to shareholders registered at the close of business on 6
January 2023.
On behalf of the Board and shareholders, I would like to thank all of our
staff for their hard work during this extraordinary period.
Sir Michael
Heller
Andrew Heller
Chairman
Managing Director
30 August
2022
Bisichi PLC
Consolidated income statement
For the six months ended 30 June 2022
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 June 30 June 31 December
2022 2021 2021
Notes £000 £000 £000
Group revenue 1 45,399 23,639 50,520
Operating costs (23,937) (24,238) (48,184)
Operating profit on trading activities 21,462 (599) 2,336
Decrease in value of investment properties - - 255
Gain/(Loss) on investments held at fair value 49 (261) 812
Operating profit 1 21,511 (223) 3,403
Share of loss in joint ventures (1) (80) (125)
Profit before interest and taxation 21,510 (303) 3,278
Interest receivable 39 19 22
Interest payable (383) (392) (799)
Profit before taxation 1 21,166 (686) 2,501
Income tax 2 (5,956) 272 (795)
Profit/(Loss) for the period 15,210 (414) 1,706
Attributable to:
Equity holders of the company 11,562 (297) 1,491
Non-controlling interest 3,648 (117) 215
Profit/(Loss) for the period 15,210 (414) 1,706
Earnings per share - basic 3 108.29p (2.78p) 13.96p
Earnings per share - diluted 3 103.63p (2.78p) 13.94p
Bisichi PLC
Consolidated statement of comprehensive income
For the six months ended 30 June 2022
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 June 30 June 31 December
2022 2021 2021
£000 £000 £000
Profit/(Loss) for the period 15,210 (414) 1,706
Other comprehensive income/(expenses):
Exchange differences on translation of foreign operations 565 6 (60)
Taxation - - -
Other comprehensive income for the period, net of tax 565 6 (60)
Total comprehensive income for the period 15,775 (408) 1,646
Attributable to:
Equity shareholders 12,052 (292) 1,439
Non-controlling interest 3,723 (116) 207
Total comprehensive income for the period 15,775 (408) 1,646
Bisichi PLC
Consolidated Balance Sheet
as at 30 June 2022
Unaudited Unaudited Audited
30 June 2022 30 June 2021 31 December 2021
Assets £000 £000 £000
Non-current-assets
Value of investment properties 10,525 10,270 10,525
Fair value of head leases 175 201 175
Investment property 10,700 10,471 10,700
Mining reserves, plant and equipment 14,342 9,674 9,065
Investments in joint ventures 1,130 1,174 1,130
Other investments at fair value through profit and loss (“FVPL”) 6,418 2,721 3,631
Total non-current assets 32,590 24,040 24,526
Current assets
Inventories 4,188 2,593 1,253
Trade and other receivables 8,820 7,659 8,626
Investments in listed securities held at FVPL 1,209 923 685
Cash and cash equivalents 5,176 3,543 3,018
Total current assets 19,393 14,718 13,582
Total assets 51,983 38,758 38,108
Liabilities
Current liabilities
Borrowings (3,929) (3,995) (2,666)
Trade and other payables (9,246) (12,807) (10,743)
Current tax liabilities (1,657) (1) (726)
Total current liabilities (14,832) (16,803) (14,135)
Non-current liabilities
Borrowings (3,903) (4,076) (3,853)
Provision for rehabilitation (1,609) (1,461) (1,390)
Finance lease liabilities (400) (437) (389)
Deferred tax liabilities (57) (200) (506)
Total non-current liabilities (5,969) (6,174) (6,138)
Total liabilities (20,801) (22,977) (20,273)
Net assets 31,182 15,781 17,835
Equity
Share capital 1,068 1,068 1,068
Share premium 258 258 258
Translation reserve (2,050) (2,483) (2,540)
Other reserves 707 707 707
Retained earnings 28,940 16,231 18,019
Total equity attributable to equity shareholders 28,923 15,781 17,512
Non-controlling interest 2,259 - 323
Total equity 31,182 15,781 17,835
Bisichi PLC
Consolidated Cash Flow Statement
For the six months ended 30 June 2022
Unaudited Unaudited Audited
30 June 30 June 31 December
2022 2021 2021
£000 £000 £000
Cash flows from operating activities
Operating profit 21,511 (223) 3,403
Depreciation 744 1,338 2,571
Unrealised (gain)/loss on investments (49) (376) (812)
Unrealised loss on investment properties - - (255)
Exchange adjustments 37 9 121
Movement in working capital (4,960) 2,075 397
Net interest paid (344) (383) (777)
Income tax (paid)/received (5,554) (211) (216)
Cash flow from operating activities 11,385 2,229 4,432
Cash flows from investing activities (8,680) (1,395) (2,706)
Cash flows from financing activities (1,889) (142) (271)
Net increase/(decrease) in cash and cash equivalents 816 692 1,455
Cash and cash equivalents at 1 January 482 (1,078) (1,078)
Exchange adjustment (51) (40) 105
Cash and cash equivalents at end of period 1,247 (426) 482
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 5,176 3,543 3,018
Bank overdrafts (3,929) (3,969) (2,536)
Cash and cash equivalents at end of period 1,247 (426) 482
Bisichi PLC
Consolidated statement of changes in shareholders' equity
For the six months ended 30 June 2022
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 1 January 2021 1,068 258 (2,488) - 707 16,528 16,073 116 16,189
Profit for the period - - - - - (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
Balance at 1 January 2021 1,068 258 (2,488) - 707 16,528 16,073 116 16,189
Profit for the year - - - - - 1,491 1,491 215 1,706
Other comprehensive income and expense - - (52) - - - (52) (8) (60)
Total comprehensive income for the year - - (52) - - 1,491 1,439 207 1,646
Dividend - - - - - - - - -
Balance at 31 December 2021 1,068 258 (2,540) - 707 18,019 17,512 323 17,835
Profit for the year - - - - - 11,562 11,562 3,648 15,210
Other comprehensive income and expense - - 490 - - - 490 75 565
Total comprehensive income for the period - - 490 - - 11,562 12,052 3,723 15,755
Dividend - - - - - (641) (641) (1,787) (2,428)
Balance at 30 June 2022 1,068 258 (2,050) - 707 28,940 28,923 2,259 31,182
ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS:
The results for the six months ended 30 June 2022 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 2021, and which will form
the basis of the 2022 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
2022 2021 2021
£000 £000 £000
Revenue
Mining 44,692 23,016 49,226
Property 561 594 1,119
Other 146 29 175
45,399 23,639 50,520
Operating profit/(loss)
Mining 21,055 (900) 1,574
Property 264 275 847
Other 192 402 982
21,511 (223) 3,403
Share of profit in joint ventures (1) (80) (125)
Interest receivable 39 9 22
Interest payable (383) (392) (799)
Profit/(Loss) before taxation 21,166 (686) 2,501
2. Taxation
Unaudited Unaudited Audited
30 June 30 June 31 December
2022 2021 2021
£000 £000 £000
Based on the results for the period:
Corporation tax at 28.00% (2021: 27%) 6,425 5 750
Deferred taxation (469) (276) 45
5,956 (271) 795
3. Earnings/ (loss) per share
Both the basic and diluted earnings per share calculations are based on a
profit of £11,562,000 (2021: loss of £297,000). The basic earnings per share
has been calculated on a weighted average of 10,676,839 (2021: 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 (2021: 10,676,839) plus the dilutive potential ordinary shares
arising from share options of 479,878 (2021: nil) totalling 11,156,717 (2021:
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 the current economic
performance of the UK Retail market on the future performance of the group’s
existing UK property portfolio. The Directors have placed a valuation on the
properties which is not materially different to the value as at 31 December
2021. 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
2022. Please refer to page 73 to 75 of the 2021 Annual report and Accounts for
details on the valuation of investment and development properties as at 31
December 2021.
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 2021. The
Group paid management fees of £100,000 (30 June 2021: £100,000 December
2021: £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 2021 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
United Kingdom 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
UK-adopted international accounting standards in conformity with the
requirements of the Companies Act 2006. The same accounting policies are used
for the six months ended 30 June 2022 as were used for the year ended 31
December 2021.
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:
* Life of mine and reserves;
* Depreciation;
* Provision for rehabilitation (relating to environmental rehabilitation of
mining areas);
* Impairment; and
* The valuation of investment and development properties
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 2021 and no impairment was considered appropriate. The directors have
used similar key assumptions and estimates as outlined on page 62 of the 2021
Annual report and Accounts, and no impairment was considered appropriate as at
30 June 2022.
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 2021.
The interim financial statements have been prepared on the going concern
basis. Cashflow 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
The final dividends in respect of 2021, totalling £641,000 was approved by
the shareholders at the Annual General Meeting held on the 16th June 2022 and
were paid on the 29th July 2022. The final dividends in respect of 2022 are
included as a liability in these interim financial statements. A proposed
interim dividend for the year ended 31 December 2022 totalling £1,067,684
(2021: Nil) was approved by the Board of Directors on 30 August 2022 and has
not been included as a liability in these Interim Financial Statements.
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 2021 Annual Report and
Accounts. Risks and uncertainties identified by the Group are set out on page
11 of the 2021 Annual Report & Accounts and are reviewed on an ongoing basis.
There have been no significant changes in the first half of 2022 to the
principle risks and uncertainties as set out in the 2021 Annual Report &
Accounts.
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 2021 Annual report and Accounts.
The principal risks as stated in the 2021 Annual Report & Accounts reflect the
challenging environment in which the business operates and are considered
under the following broad headings:
Mining:
* Coal price and volume 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
* Geo-political events in Ukraine
* Brexit
9. Board approval
These interim results were approved by the Board of Bisichi PLC on 30 August
2022.
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 2021
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
30 August 2022
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)
12 Little Portland
Street
London W1W 8BJ
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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