Fenikso Limited - Annual results for the year ended 31 December 2023
27/06/2024 07:00
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RNS Number : 0468U Fenikso Limited 27 June 2024
27 June 2024
Fenikso Limited
("Fenikso" or "the Company")
Annual results for the year ended 31 December 2023
Fenikso Limited (AQSE: FNK), the Cayman Islands enterprise company, is pleased
to announce its final audited results for the year ended 31 December 2023 (the
"Accounts" or "Annual Report").
A copy of the full Accounts will shortly be available on the Company's
website: https://feniksoplc.com/ (https://feniksoplc.com/)
This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.
For further information, please visit www.feniksoltd.com or contact:
Fenikso Limited info@feniksoplc.com
Thomas Richardson, Chairman
First Sentinel Corporate Finance (AQSE Corporate Adviser)
Brian Stockbridge +44 (0) 20 3855 5551
Comments from Tom Richardson, Chairman of Fenikso:
2023 was the first year of trading under the name, Fenikso Limited, following
the settlement agreement with Lekoil Nigeria which had been entered in to on
December 31(st) 2022. The first three quarters of 2023 were spent repaying
creditors that had been built up over the course of the litigation against
Lekoil Nigeria. The litigation was across multiple jurisdictions, extremely
complex and costly. The legal fees relating to the litigation were paid off by
the end of Q3 2023. The Company then started to repay the US$16,256,159 loan
owed to Savanah Energy Investments Limited ("SEIL"). By the end of the year
the Company had accumulated over US$2,603,000 of cash on its balance sheet.
At the outset of 2023 the board was focused on ensuring the Company paid off
its creditors and established a stable financial position as quickly as
possible. Achieving this would demonstrate that the settlement agreement with
Lekoil Nigeria was working. Looking forward to 2024 the Board will start to
look at possible options to best utilise the growing cash balance the Company
will have built up. Based on the performance of the loan during 2023 the
Company will soon be in a position to consider a number of different options
that it can discuss with shareholders on how best to create value from the
money on its balance sheet.
Financial Review
The Company's financial position at the start of the year was a loan
outstanding to Lekoil Nigeria of US$51,919,467, approximately US$2.6 million
owed to creditors and US$16,256,159 owed to SEIL. By the end of 2023 the
Company had over US$2.6 million of cash on its balance sheet and had repaid
over US$2m of the Savanah loan with over US$45m of the Lekoil Nigeria loan
still outstanding. From this perspective the Company is now a stable going
concern and has a valuable asset still sitting on its balance sheet. Currently
the Company's only source of income is from the proceeds of oil sales at the
Otakikpo field in Nigeria. The oil sales take place on approximately a six to
eight week basis and so far the Company has received 12 payments under the
settlement agreement. The Company has no subsidiaries and has no remaining
liabilities in connection with any of its historic subsidiaries. The Company's
only liability is the loan to SEIL which is only due for repayment if the
Company receives repayment of the Lekoil Nigeria Loan. The Company passes a
proportion of the proceeds to SEIL as repayment of the SEIL loan. The Company
has three board members and is listed on the AQSE stock exchange in the United
Kingdom.
Corporate Structure
The Company has simplified its corporate structure, having sold all its
subsidiaries and restructured all its intercompany loans into one loan owed by
Lekoil Oil & Gas Investments ("LOGI") which in turn owns a 40% interest in
the Otakikpo oil and gas field in Nigeria. The board consists of three people
Marco D'Attanasio, Tom Richardson and Dipo Sofola. Dipo is a representative of
Savanah Energy and sits on the board to ensure Savanah's rights under their
loan are upheld. Tom Richardson carries out the executive functions required
in the Company as it pays down its creditors. The Board does not intend to
hire any management until such a point where its strategy would require a
management team. The Board is able to carry out the day to day activities of
the Company to keep it listed and manage the financial position of the
business.
Outlook
The Board is now in a strong enough financial position where it can look at
options on how to grow shareholder value from the cash received under the
Lekoil Nigeria loan agreement. We thank our shareholders for their support
during this period whilst we work on a new strategy for the Company.
Thomas Richardson
Chairman
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
2023 2022
Notes $000 $000
Revenue - -
Administrative expenses (366) (1,526)
Operating loss (366) (1,526)
4
Fair value gains and (losses) on receivables 2,109 (20,710)
Fair value gains and (losses) on borrowings (1,582) 6,839
Profit/(loss) before taxation
161 (15,397)
Tax on profit/(loss) - -
Profit/(loss) for the financial year 161 (15,397)
Basic and diluted profit (loss) per share 9
- (0.03)
The notes contained in the Company's Annual Report form part of these
financial statements.
The income statement has been prepared on the basis that all operations are
continuing operations.
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
2023 2022
Notes $000 $000 $000 $000
Current assets
Trade and other receivables 10 26,587 31,209
Cash and cash equivalents 2,603 208
29,190 31,417
Current liabilities 11 (3,488) (4,501)
Net current assets 25,702 26,916
Non-current liabilities 12 (6,023) (7,398)
Net assets 19,679 19,518
Equity
Called up share capital 14 25 30
Share premium account 264,729 264,729
Retained earnings (245,075) (245,241)
Total equity 19,679 19,518
The notes contained in the Company's Annual Report form part of these
financial statements.
The financial statements were approved by the board of directors and
authorised for issue on 24th June and
are signed on its behalf by:
Thomas Richardson
Chairman
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
Share capital Share premium account Retained earnings Total
Notes $000 $000 $000 $000
Balance at 1 January 2022 264,004 (229,844) 34,187
27
Year ended 31 December 2022:
Loss and total comprehensive income - (15,397) (15,397)
-
Issue of share capital 1,863 - 1,876
14 13
Reduction of shares (1,138) - (1,148)
14 (10)
Balance at 31 December 2022
30
264,729 (245,241) 19,518
Year ended 31 December 2023:
Profit and total comprehensive income - 161 161
-
Reduction of shares - 5 -
14 (5)
Balance at 31 December 2023 264,729 (245,075) 19,679
25
The notes contained in the Company's Annual Report form part of these
financial statements.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
2023
2022
Notes $000
$000 $000 $000
Cash flows from operating activities
Cash generated from operations
16
2,395 158
Net increase in cash and cash equivalents 2,395 158
Cash and cash equivalents at beginning of year 208 50
Cash and cash equivalents at end of year 2,603 208
The notes contained in the Company's Annual Report form part of these
financial statements.
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