Audited Annual Results for the year ended 31 December 2022
26/06/2023 14:39
26 June 2023
Evrima plc
AQSE: EVA
(“Evrima” or “the Company”)
Audited Annual Results for the year ended 31 December 2022
The Company is pleased to announce its final results for the year ended 31
December 2022. The financial information below has been extracted from the
audited financial statements of the Company for the year ended 31 December
2022, which have been prepared in compliance with United Kingdom Accounting
Standards, including Financial Reporting Standard 102, "The Financial
Reporting Standard applicable in the United Kingdom and the Republic of
Ireland" (“FRS102”) and the Companies Act 2006. The Annual Report is
available from the Company’s website at www.evrimaplc.com.
The directors of Evrima accept responsibility for this announcement.
This announcement contains information which, prior to its disclosure, was
inside information as stipulated under Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310 (as amended).
- Ends -
Enquiries:
Company:
Burns Singh Tennent-Bhohi (CEO & Director): burns@evrimaplc.com
Simon Grant-Rennick (Executive Chairman): simon@evrimaplc.com
Novum Securities Limited (AQSE Corporate Adviser):
David Coffman / George Duxberry: + 44 (0) 20 7399 9400
REVIEW OF BUSINESS
2022 proved to be a very challenging year for global financial markets with a
visceral transition of capital leaving equity markets with global themes being
focused on central banks tightening monetary policy and combatting rampant
inflation with accelerated base rate increases at a pace not seen for some
time. This shift in attitude and repricing of risk resulted in risk off
investing returning after a strong and sustained period for equity markets.
For Evrima, this economic backdrop tends to favour commodities, this theme
further supported through the performance of the S&P GSCI a benchmark for
commodities which rose 26% to the year ending 2022 whilst the S&P 500
delivered a negative return of -18.01%.
Evrima remains committed to structuring well evaluated investment transactions
in the natural resource industry where the Company look for investment
exposure to assets ranging from exploration to development and pre-production.
To date the company have executed three major investment transactions with the
underlying assets independent but as a collective located in the same
jurisdiction being, Botswana.
In spite of the challenges 2022 brought, Evrima had somewhat of a breakthrough
year with our private investments seeing a combination of material events
including; go public transaction (s), substantive capital investment &
meaningful operational development at our investee's.
Below, I provide an overview of key events across each of our material
investments to the year end.
Investment Interests & Progress to 31 December 2022
Premium Nickel Resources Corporation Ltd("PNRL")
Investment Interest as at Year End:
Opening Shareholding: 1,114,115
Shares Held as at Year End: 1,014,115
Shares Sold to the Year End: 100,000
Gross Proceeds Realised: $169,000 (CAD)
Average Consolidated Sales Price: $1.69
Book Cost on Shares Purchased: $0.21
Capital Gain / %-Gain on Sale: $148,000 ($1.48 p/share sold) / 704%
Warrants held in PNRL: 12,500 (Strike Price: $1.75 / Life to Expiry: October
16 2023)
Premium Nickel Resources Ltd is a mineral exploration and development company
that focuses on discovering and advancing high-quality nickel, copper and
cobalt resources. PNRL is a Canada-based mining company listed on the Toronto
Stock Venture Exchange. The Company's Selebi Project encompass two fully
permitted, Ni-Cu-Co Mine re-development projects; former BCL Selebi Mine
(Selebi Main and Selebi North deposits), dubbed the "Tsholofelo Project" as
well as the former Tati Nickel Mining Company (TNMC) Selkirk Mine.
Material Highlights to the Year End Include:
17 August 2022 - Premium Nickel Resources Corporation successfully completed
the amalgamation with North American Nickel Inc. Resulting in the amalgamated
Premium Nickel Resources Limited to commence trading on August 17 on the TSX
Venture Exchange.
17 August 2022 - First assay results released from the 2022 diamond drill
program including hole SMD-22-001 (lower interval): 25.65 metres of 0.95% Ni,
2.03% Cu, 0.04% Co and 7.40 ppm Ag.
22 August 2022 - Premium Nickel Resources Ltd completes the purchase of
Selkirk Mine in Botswana.
22 December 2022 - Assay results released from the 2022 diamond drill program
including hole SMD-22-006a-W2 (upper interval): 9.8 metres of 1.56% NiEq
(0.97% Ni, 1.74% Cu, 0.03% Co)
Eastport Ventures Inc.
Investment Interest as at Year End:
Shareholding at beginning of the Year: 523,677
Shares Acquired during the Year: 3,072,946
Average Price Paid Per Share: $0.23
Resulting Holding: 3,596,623 (Representing ~7% of the Issued Share Capital of
Eastport Ventures Inc.)
Warrants Held as at Year End: 1,281,265 (Strike Price: $0.30 / Life to Expiry:
June 2027)
Burns Singh Tennent-Bhohi, Chief Executive Officer & Director of Evrima plc is
a Founding Partner in Eastport Ventures and the current Chairman and Chief
Executive Officer. Non-Executive Director, as at Year End but not as at date
of this report, Guy Miller was as at year end a non-controlling, minority
shareholder of Eastport Ventures Inc. The Company commissioned an independent
valuation of Eastport to ensure that any investment considered or executed was
externally valued as fair and reasonable.
Formed by seasoned explorers and corporate investors, Eastport Ventures is a
Canadian mining house that is predicated on building and maximising value from
its asset base of investments and projects. Eastport is focused on driving
value in its direct asset interests through attempting to yield material
discoveries. Supporting this operational model is the Company's internal
investment and securities division that focuses on both private and public
investment opportunities, this division was started in 2020 with ~$50,000
(CAD) in start-up cost and now commands a market value in excess of
$3,000,000.
Over a four-year period, the Company has constructed a portfolio of advanced
exploration assets targeting copper, nickel, uranium and diamonds. The mineral
assets within Eastport's portfolio of exploration assets have seen aggregate
exploration expenditures in excess of $15,000,000 USD in both historic and
current capital expenditures. Cumulatively, Eastport's projects cover a
licence area of over 7,816 km2.
In September 2022, Eastport entered a non-binding LOI with TSX-V listed,
Auston Capital Corp (TSX-V: ASTN.P) in respect of a proposed business
combination that subject to completion and all legal and regulatory approvals
would result in Eastport becoming a publicly quoted company on a recognised
investment exchange. Eastport continue to make positive progress in working to
agree to terms with Auston.
Eastport Project Overview:
Matsitama Copper
Eastport subsidiary, Matsitama Minerals (Pty) Ltd, holds 100% of six
prospecting licences that cover 1,668 km2 prospective for copper
mineralisation. The licences were renewed for a further two years in January
2022.The six licences cover the majority of the Palaeo-Proterozoic Matsitama
Schist Belt, a predominantly clastic sedimentary suite of rocks with minor
mafic to ultramafic volcanic intrusives. Mineralisation is copper, lead, and
zinc when located in major fault zones, and copper sulphide when found within
the schistose rocks. Past and present mining operations within the belt have
exploited both styles of mineralisation.
Over the ensuing years, the exploration programme at Matsitama will be
dominated by drilling, targeting both styles of mineralisation. Early
application of self-organizing maps (SOM) has identified a new large area of
favourable alteration that suggests an unexplored area of copper pyrite
(Cu-Py) mineralisation stratigraphically below the Thakadu deposit.
Matsitama 2022 Highlights:
- Identification of major target, Phudulooga, 1.2km strike length, Eastport
first pass drilling intercepted high grade copper results including:
DS07-12: 0.44m @ 10.95% Cu
DS21-18: 0.65m @ 12.85% Cu
Historic Drilling at Phudulooga included:
DS07-011 - 4.42% Cu, 5.94 g/t Ag over 3.3m at 24.1m depth
DS07-012 - 3.36% Cu, 3.72 g/t over 3.4m at 85.8m depth
- Identification of new exploration targets within the centre of the
Matsitama Prospecting Licences ("PLs")
- Ongoing development and evaluation of existing SAMREC compliant Copper
Deposit within the Matsitama PLs
Selebi Nickel-Copper
Eastport's Selebi project is comprised of four licences that cover a total
area of 2,100 km2, with favourable amphibolite geology located throughout the
licence area. The neighbouring licence has historical annual production of
40,000 tonnes of copper and nickel, and is today owned by Eastport investee,
TSX listed, Premium Nickel Resources Limited (TSV:PNRL).
Eastport's Selebi licences are located to the south-east of the Selebi and
Phikwe sulphide deposits, which Wood Mackenzie has estimated contain a
remaining in-situ resource of 33.07 million tonnes grading 0.8% nickel, and
1.18% copper.
Selebi 2022 Highlights:
- Commencement of extensive soil sampling campaign
- Airborne reprocessing
- Preparation of regional stream sampling survey
- Conclusion of Soil Sampling / Geochemistry will allow for target
identification through Geophysical instruments
Keng Nickel-Copper
Eastport's Keng project is comprised of two licences that cover 1,345 km2, and
which are prospective for copper, nickel, and platinum group metals (PGMs).
Keng is situated on an important section of the northern edge of a
mafic-ultramafic intrusive, known as the Molopo Farms Complex, and where the
licences overlie the contact with "reactive" carbonate rocks. Narrow intervals
of veined mineralisation, indicative of metal movements within the system, are
reported in the historic drilling data.
The large, multi-lobed Molopo Farms mafic-ultramafic Complex is observed in
drill core, and the complex is often cited as being analogous to the Bushveld
in South Africa; a significant producer of platinum group elements that
attract exploration interest from a wide-range of exploration entities.
Within the Keng licences, the Molopo Farms Complex is uncommonly near vertical
dips, with structural features that suggest stacking and folding of thrust
sheets, which offer open space opportunities for mineralisation. Significant
nickel-in-soil anomalies are found in close proximity to these thrust sheets,
providing a target for focused mineralisation. The geologic opportunity is
further enhanced through the presence of broad areas of reactive
carbonate-rich rocks known to destabilise mineral-rich fluids.
Keng 2022 Highlights:
- Meetings with local authorities and interested parties initiated, securing
a series of access agreements to allow for uninterrupted work
- Reprocessing of airborne magnetic surveys
- Historic data compilation covering; geochemistry, drilling and gravity
surveys
- Drill target (s) identification
Jwaneng Diamond Project
Eastport has two exploration licences in the Jwaneng area that span over 100
km2. The licences are located next to Debswana's Jwaneng Mine, acknowledged as
"the richest diamond mine in the world by value", producing over 11 million
carats per annum.
At present, three kimberlite pipes are known within Eastport's Jwaneng diamond
licences, with all three implying a long history of kimberlite emplacement in
the area. The diamond content of the three kimberlite pipes is largely unknown
and each appears to have been historically under-sampled.
The Kgare pipe is the most well understood of the kimberlites at Jwaneng,
being diamondiferous, and having returned encouraging mineral geochemistry
that is comparable to indicators found in Debswana's Jwaneng mine.
Jwaneng 2022 Highlights:
- Airborne survey acquired and reprocessed resulting in identification of
new kimberlite targets
- Upon completion of 2021 Phase 1 Drilling, ~400kg of kimberlite delivered
to Canada for recovery and indicator chemistry studies
- Agreement entered with Tier 1 mining company providing assistance with a
portion of our program, with the combination of these studies leading to a
grade/tonnage and value estimation for the Kgare target
Foley Uranium
Located in north-central Botswana, the Foley project covers 971.9 km2 under
licence, wholly-owned by Eastport. The project borders A-Cap Energy's
Letlhakane deposit, one of the world's largest undeveloped uranium deposits,
with an in-situ resource of 280 million pounds (Mlbs) U3O8. Uranium was first
discovered in the region in the early 1970s, and an improved understanding of
the deposit type has enabled the resource to be significantly expanded.
Mining infrastructure in the region is excellent, with power, transport, and
skilled labour all in close proximity. At Selebi- Phikwe the processing of
sulphide ores creates the opportunity for a local acid supply for uranium ore
processing.
Foley 2022 Highlights:
- Preparation of uranium-in-water sampling in existing boreholes to aid in
vectoring toward hidden mineralization
Kalahari Key Mineral Exploration Company (pty) Ltd ("Kalahari Key")
Investment Interest as at Year End:
Shares held in Kalahari Key: 3,802
Kalahari Key is a private mineral exploration company registered in Botswana,
engaged in the development of its Nickel- Copper-Platinum Group Metals
(Ni-Cu-PGM) project called the Molopo Farms Complex ("MFC").
The Kalahari Key opportunity developed from a recognition that no historical
exploration targeting "feeder" styles of Ni-Cu- PGE mineralisation had been
completed within the Molopo Farms ultramafic complex. The founder's group of
four seasoned metals explorers identified a number of prospecting licences
over a prospective geological feature often associated with feeder-style
deposits. The exploration work conducted to date by Kalahari Key continues to
support the prospectivity of the licence area and a series of exciting targets
has been identified for a proposed drilling campaign.
During the year, Evrima elected to retain its interest in Kalahari Key
following Power Metal Resources ("POW") conditional acquisition. POW has
signed a conditional agreement to acquire an additional 58.7% interest in the
share capital of Kalahari Key. Metal to acquire a further 15,002 Kalahari Key
shares for £807,348. Following completion and a restructuring of the MFC
Project interest Power Metal will hold 87.71% of Kalahari Key which will
wholly own the Molopo Farms Complex Project on completion. Power Metal will
become operator of Kalahari Key with immediate effect and will look to
accelerate exploration.
Key Corporate Highlights to Year End:
Directors Compensation and Administrative Costs
The Directors of the Company were paid in aggregate £0 to the Year End in a
sign of complete commitment to Evrima and its commercial strategy.
The Company effectively reduced administrative expenses to Year End by 64%.
Addition to the Board of Directors
In November 2022, the Company expanded its Board of Directors through the
appointment of seasoned Corporate Financier, Duncan Gordon;
Mr. Gordon is a Canadian businessman and financier. He serves as the President
of Ivy Capital Corp., a firm dedicated to providing financing services and
strategic plans for companies seeking guidance through the capital raising
process. He has a wide range of financial transaction experience in
originating and structuring deals which range from traditional equity to debt
and alternative financing options.
Mr. Gordon was formerly a Vice President and Senior Investment Advisor at
Canaccord Genuity Wealth Management for over seventeen years. His dedication
to his clients, passion and knowledge resulted in him being honoured with
membership into the Chairman's Club, placing him as owning one of the top 20
investment advisory practices in Canada. Mr. Gordon's long-term focus and
support of the junior mining arena has led to a niche specialization as a
leading financier who has raised over $500M throughout his career.
Burns Singh Tennent-Bhohi CEO Direct Financing
During the year and upon Board & Shareholder approval the Company entered a
Secured Convertible Loan Note Facility ("SCLN") with the Company's Chief
Executive Officer & Director, Burns Singh Tennent-Bhohi. The terms of the
facility were announced to market on 30 November 2022 & the facility approved
by the shareholders at the Company's Annual General Meeting on 28 December
2022.
The terms of the SCLN Facility:
- SCLN shall have a maturity of 12 months from the date of the agreement
entered between both parties, with the Maturity date being 29.11.2023
- The SCLN shall carry a coupon of 10% and will be rolled-up on draw
of funds to the borrower and payable upon maturity
- The SCLN will maintain a floating charge over the assets of the Company,
upon redemption and at the election of the lender, the lender shall have the
right to redeem the monies owing through cash redemption, conditional
settlement by way of an issue of equity or settlement by way of a distribution
of assets that reflect the monetary sum lent and outstanding, including all
and any accrued interest payable to the lender.
- Burns Singh Tennent-Bhohi has the right to serve the Directors notice and
intention to convert any monies outstanding at the lower of the mid-price of
Evrima as at the date of this agreement being, four pence per share (£0.04)
or the 15-day volume weighted average price (VWAP) preceding the lenders
intention to serve notice to convert.
PRINCIPAL RISKS AND UNCERTAINTIES
The Directors consider the key risks to the company to be that of maintaining,
augmenting and realising value from its investment positions and the company's
reliance on capital markets.
The company seeks to mitigate these risks through adhering to internal
protocols that govern the time for which investments should be maintained and
their respective liquidity profile to ensure that the company's asset profile
is diverse, flexible and importantly not overexposed.
The Directors continue to review investment opportunities that have the
potential to generate the company income that would reduce the company's
reliance on equity and debt finance to secure the ongoing operations of the
business.
Acquiring Less than Controlling Interests
The Company may acquire either less than whole voting control of, or less than
a controlling equity interest in, a target, which may limit the Company's
operational strategies and reduce its ability to enhance Shareholder value. In
recognising the risk in non-controlling investment interests, the Company
ensures to categorise an investment based on the desired exit strategy. If a
clear exit for the investment is pre-determined save for time to disposal,
then the Company is content to invest on the basis that non-control does not
impact or create an underlying risk by virtue of percentage ownership. To
further protect investment activity where this may occur the Company carefully
allocate capital to investments for which the Company have no influence over.
Inability of Investee to Raise Capital Post-Investment
An investee of the company may be unable to raise capital to fund operations
and achieve its commercial objectives post- investment by the Company. This
may lead to devaluation of the Company's investment interest, dilution or
render the investee insolvent. It may also lead the investee to seeking
distressed asset funding options that could create irrecoverable damages to
the Company's investment. The Company believe in evaluating investment
opportunities whereby they are not the sole investor responsible for
capitalising the investment ensuring that the investee has a broad shareholder
base and access to a wide pool of capital. Additionally in certain
circumstances when conducting and structuring investments the Company will do
so using a variety of financial instruments and terms that provide protection
against risks associated with an investee being unable to secure capital
investment.
The Company's Relationship with the Directors and Conflicts of Interest
The Company is dependent on the Directors to identify potential acquisition
opportunities and to structure and complete investments consistent with its
investment strategy. The Directors are not obliged to commit their whole time
to the Company's business; they will allocate a portion of their time to other
businesses which may lead to the potential for conflicts of interest in their
determination as to how much time to assign to the Company's affairs. The
Company ensures that the Board maintains independence where conflicts may
arise both internally with the Board and its advisors. In the event any
conflicts should arise, the Board maintain a policy of disclosure and
independent opinion.
Risks Inherent in an Investment
Although the Company and the Directors will evaluate the risks inherent in a
particular investment, they cannot offer any further assistance that all of
the significant risk factors can be identified or properly assessed.
Furthermore, no assurance can be made that an investment in Ordinary Shares in
the Company will ultimately prove to be more favourable to investors then a
direct investment, if such an opportunity were available, in an investment
interest. The Company believe that in holding investments through a quoted
investment issuer structure the Company can provide sufficient indirect
investment protection were they to own the investment directly. Furthermore,
through the Company creating a basket of investment interests that in
aggregate provide increased optionality in exposure to the underlying the
Company is aiming to mitigate downside risk should an event impact the
valuation of any of the investments.
Funding
The aim of the investment strategy is to seek capital gains on successful
disposals of its investment interests rather than financial investments and
instruments that generate income. The absence of income will mean that the
company is reliant on the performance of the investee not just in its ability
to operate but in its ability to provide the Company a material and liquid
exit to ensure the company has capital to progress its investment strategy.
Impact of the business on the environment and other environmental matters
The report does not contain such information, as the nature and principal
activity of the business is that of investment, the Board consider
environmental matters in forming any investment they may make and ensuring
that the potential investment opportunity maintains internal standards and
disciplines that demonstrate competence when evaluating their underlying
operations.
Within the mineral and natural resource industry, companies operating must
comply with legislative and regulatory policy when undertaking such activity,
including reclamation and environmental liabilities as a requisite of
operating in an industry that involves the extraction of minerals from the
environment and the remediation associated.
Company's employees
The employees of the company are the Board of Directors. The Board of
Directors must adhere to high standards of operation consistent with managing
a quoted company at all times.
Social, community and human rights issues
The report does not contain such information, as the nature and principal
activity of the business is that of investment, the Board consider social,
community and human right issues in forming any investment they may make and
ensuring that the potential investment opportunity maintains internal
standards and disciplines that demonstrate competence when evaluating their
underlying operations.
Key performance indicators
The company's principal activity is to acquire investment interests in global
mineral and natural resource opportunities through mechanisms including direct
asset investment, indirect asset investment (including investment in quoted
companies operating in the mineral/natural resource industry) and through
investing in instruments such as royalties that have the ability to generate
the company investment income.
For the year ending 31 December 2022, the company held three unquoted
investments in private companies operating in the natural resource sector. The
three companies were actively developing their underlying assets through
operating exploration and development activities in base and industrial
metals.
The company continue to focus on the underlying investments held generating
capital returns that can enable the company to consider redeployment of
capital in additional opportunities as the Directors see suitable or the
distribution of profits to the shareholders of the company in the form of a
cash or in-specie dividends.
The company's key investment objectives include;
1. Identification of undervalued opportunities that the Board can augment
through capital and direct involvement whether at the Board or Consultancy
level.
1. The generation of internal investment opportunities that can be developed
through investment and creative commercial structures.
1. To evaluate opportunities that post-investment are not reliant on the
company to provide consistent capital investment over a period of time that
will isolate and concentrate too much of the company’s investment portfolios
capital and focus.
The company's key investment disposal objectives include;
1. For the unquoted investment positions to achieve either a trade sale or
consummate a go public transaction that would result in a premium realised to
the cost of investment.
1. To redeploy capital where the Directors of the company identify suitable
opportunities that can generate sufficient returns for the company and its
shareholders.
1. To consider methods where shareholders can benefit in having exposure to
the company's underlying assets through in- specie dividends
SECTION 172(1) STATEMENT
The Directors are required to make a statement which describes their attitude
with regard to the matters set out in Section 172
(1) of the Companies Act 2006, namely:
Duty to promote the success of the company
(a) The likely consequences of any decision in the long term
(b) The interests of the company's employees
(c) The need to maintain the company's business relationships with
suppliers, customers and others
(d) The impact of the company's operations on the community and environment
(e) The desirability of the company maintaining a reputation for high
business conduct
(f) The need to act fairly between members of the company
Section 172 Statement
The Directors of the company commit to maintaining high operating standards
and fiscal discipline and frequently communicate and engage with each other in
order to consider and understand the underlying issues within the
organisation. In order to enhance the standards of the business, the Board
considers the global landscape that may present impediments to the business.
The Board maintains a disciplined internal evaluation process that is used to
identify opportunities consistent with its underlying investment strategy that
are determined as suitable investment opportunities. Thorough internal and
external analysis is completed and of much significance is a pre-determined
exit strategy with an associated timeframe for realisation of value.
The company is committed to the highest levels of integrity and transparency
with stakeholders.
Stakeholders include, suppliers, government and regulatory agencies, service
providers and shareholders. The Board, both individually and together,
consider that they have acted in the way they consider would be most likely to
promote the success of the Company as a whole. In order to do this, there is a
process of dialogue with stakeholders to understand the uses that they might
have. Communications with shareholders occur on an ongoing basis and as
questions arise.
Transparency and integrity are central themes for the Company's Directors. The
Directors of the company strive to provide our stakeholders with timely and
informative responses.
The Board recognises its responsibilities under Section 172 as outlined above
and has acted at all times in a way consistent with promoting the success of
the Company with regard to all stakeholders.
POST YEAR END REVIEW
Reflecting on key moments for the Company in 2022, I am pleased to report to
shareholders that despite challenging capital market conditions the Company
has been able to reduce costs and only seek to release capital from its
portfolio of investments for key financial obligations and to evaluate new
investment opportunities. A significant outcome of this exercise has been in
understanding and acknowledging that as a business the Board are committed to
using its internal treasury to capitalise growth and create value for our
shareholders and not to seek capital investment through equity finance that
would be dilutive to our existing shareholders.
This model has required patience and sacrifice from our Board, advisors,
management and our shareholders and I would like to take this opportunity to
thank all for their continued support of Evrima as we continue to progress our
investment mandate concurrent with considering optimal realisation strategies
for our shareholders.
When considering the first half of 2023 and looking to the following six
months to the year ending 2023 the key objectives at Evrima include:
- Augmenting the treasury position of the business, primarily our portfolio
of marketable securities for which is the main source of the Company's current
direct liquidity position
- To evaluate quality investment opportunities in the exploration,
development and mining industry both in private and public markets
-To materialise value in our two substantive private interests being Eastport
Ventures Inc. & Kalahari Key for which the Board are actively pursuing with
Eastport Ventures Inc. seeking to complete its go public transaction in North
America in this year
- To consider potential market synergies that would enhance the liquidity
profile for our current shareholders
ON BEHALF OF THE BOARD:
Mr B S Tennent-Bhohi - Director
Date: 23 June 2023
Statement of Comprehensive Income for the year ended 31 December 2022
TURNOVER Notes 2022 £ - 2021 £ -
Administrative expenses (166,997) (274,780)
(166,997) (274,780)
Other operating income 10,250 -
OPERATING LOSS 5 (156,747) (274,780)
Gain on revaluation of assets (253,032) 1,338,384
(409,779) 1,063,604
Interest payable and similar expenses 6 (129) -
(LOSS)/PROFIT BEFORE TAXATION (409,908) 1,063,604
Tax on (loss)/profit 7 81,178 (135,958)
(LOSS)/PROFIT FOR THE FINANCIAL YEAR (328,730) 927,646
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (328,730) 927,646
Earnings per share expressed in pence per share: 8
Basic (0.5) 1.8
Diluted (0.3) 1.1
Statement of Financial Position 31 December 2022
2022 2021
FIXED ASSETS Notes £ £
Investments 9 886,884 1,814,387
CURRENT ASSETS Debtors 10 13,710 376,059
Investments 11 1,046,355 35,604
Cash at bank 44,386 106,119
CREDITORS 1,104,451 517,782
Amounts falling due within one year 12 (161,640) (92,567)
NET CURRENT ASSETS 942,811 425,215
TOTAL ASSETS LESS CURRENT LIABILITIES 1,829,695 2,239,602
PROVISIONS FOR LIABILITIES 15 (54,781) (135,958)
NET ASSETS 1,774,914 2,103,644
CAPITAL AND RESERVES Called up share capital 16 244,068 244,068
Share premium 17 1,360,29 1,360,029
Other reserves 17 44,100 44,100
Retained earnings 17 126,717 455,447
SHAREHOLDERS' FUNDS 1,774,914 2,103,644
Statement of Changes in Equity for the year ended 31 December 2022
Called up share capital £ Retained earnings £ Share premium £ Other reserves £ Total equity £
Balance at 1 January 2021 229,668 (472,199) 673,448 27,821 458,738
Changes in equity Profit for the year - 927,646 - - 927,646
Other comprehensive income - - - 16,279 16,279
Total comprehensive income - 927,646 - 16,279 943,925
Issue of share capital 14,400 - 686,581 - 700,981
Balance at 31 December 2021 244,068 455,447 1,360,029 44,100 2,103,644
Changes in equity Deficit for the year - (328,730) - - (328,730)
Total comprehensive income - (328,730) - - (328,730)
Balance at 31 December 2022 244,068 126,717 1,360,029 44,100 1,774,914
Statement of Cash Flows for the year ended 31 December 2022
Cash flows from operating activities Notes 2022 £ 2021 £
Cash generated from operations 1 (119,258) (272,068)
Interest paid (129) -
Net cash from operating activities (119,387) (272,068)
Cash flows from investing activities Purchase of fixed asset investments (148,297) (166,631)
Sale of fixed asset investments Loans granted 101,710 - - (319,589)
Net cash from investing activities (46,587) (486,220)
Cash flows from financing activities Amount introduced by directors 104,241 -
Share issue - 700,800
Net cash from financing activities 104,241 700,800
Decrease in cash and cash equivalents (61,733) (57,488)
Cash and cash equivalents at beginning of year 2 106,119 163,607
Cash and cash equivalents at end of year 2 44,386 106,119
Notes to the Statement of Cash Flows for the year ended 31 December 2022
1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
(Loss)/profit before taxation 2022 £ (409,908) 2021 £ 1,063,604
Loss on disposal of fixed assets 29,895 -
Loss/(gain) on revaluation of fixed assets 253,032 (1,338,384)
Share based payments movement - 16,279
Other non cash items - 181
Finance costs 129 -
(126,852) (258,320)
Decrease in trade and other debtors 42,760 12,425
Decrease in trade and other creditors (35,166) (26,173)
Cash generated from operations (119,258) (272,068)
2. CASH AND CASH EQUIVALENTS
The amounts disclosed on the Statement of Cash Flows in respect of cash and
cash equivalents are in respect of these Statement of Financial Position
amounts:
Year ended 31 December 2022 31/12/22 1/1/22
Cash and cash equivalents £ 44,386 £ 106,119
Year ended 31 December 2021 31/12/21 1/1/21
Cash and cash equivalents £ 106,119 £ 163,607
3. ANALYSIS OF CHANGES IN NET FUNDS
Net cash Cash at bank At 1/1/22 £ 106,119 Cash flow £ (61,733) At 31/12/22 £ 44,386
106,119 (61,733) 44,386
Liquid resources Current asset investments 35,604 1,010,751 1,046,355
35,604 1,010,751 1,046,355
Total 141,723 949,018 1,090,741
4. MAJOR NON-CASH TRANSACTIONS
Excluded from the cashflows is the deferred tax of £81,178 recognised on the
fair value uplift on the investments.
Copyright (c) 2023 PR Newswire Association,LLC. All Rights Reserved