Fenikso Limited - Interim Results
26/09/2023 07:00
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RNS Number : 5724N Fenikso Limited 26 September 2023
26 September 2023
Fenikso Limited
("Fenikso" or "the Company")
Interim Results
Fenikso Limited ("Fenikso" or the "Company") (AQSE: FNK), the Cayman Islands
enterprise company is pleased to announce its unaudited interim results (the
"Interim Report") for the six months ended 30 June 2023 (the "Reporting
Period").
PRINCIPAL ACTIVITY, FINANCIAL REVIEW, OPERATIONS AND ASSET SUMMARY REPORT
PRINCIPAL ACTIVITY
The Company is an exempted limited liability company incorporated and
registered in the Cayman Islands on 3 December 2010.
Fenikso is the restructured holding company that used to be called Lekoil
Limited. The Company holds one main asset which is a US$51.9 million loan made
to Lekoil Oil & Gas Investments ("LOGI"), a wholly owned subsidiary of
Lekoil Nigeria. The Company is an AQSE listed enterprise company.
FINANCIAL REVIEW
Financial overview and performance
The Company reported a loss of $224,000 for the six month period ended 30 June
2023.
Net assets of the Company at the end of the Reporting Period were $19.3
million. Cash balances as at the end of the Reporting Period were $1.09
million.
OPERATIONS REPORT AND ASSET SUMMARY
The principal business of the Company is to manage and ensure the full
recovery of the LOGI Loan. The Company has received payments under the LOGI
Loan as at the end of 30 June 2023 amounting to $2,615,472. A further
$1,543,240 has since been received post 30 June 2023. The Board will continue
to monitor the compliance with the terms and conditions of the LOGI Loan. As
at the end of June 2023 LOGI had complied with all conditions of the
Settlement Deed save for the cancellation of certain shares in the Company
owned by Lekoil Nigeria, Lekan Akinyami and Samuel Olutu. The total shares
that should have been cancelled are 107,658,847 ordinary shares. On 2 August
2023 the Company announced the surrender of 106,443,637 ordinary shares held
by Lekoil Nigeria to the Company for nil consideration had been completed. The
Company has agreed to extend the period during which the remaining 1,215,210
ordinary shares that are required to be surrendered by Lekoil Nigeria in
accordance with the terms of the Settlement Deed until no later than 15
December 2023.
Outlook
The Company intends to repay all creditors as well as the first instalment of
the Savanah Energy loan repayment before the end of the year. Once these steps
have been taken the Company will look to build its cash position before
deciding how best to deploy the cash it builds up.
This report was approved by the board on 22 September 2023 and signed on its
behalf.
Thomas Richardson
Chairman
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.
For further information, please visit https://feniksoplc.com
(http://www.lekoilplc.com/) or contact:
Fenikso Limited info@feniksoplc.com
Thomas Richardson, Chairman
First Sentinel Corporate Finance Ltd (AQSE Corporate Adviser)
Brian Stockbridge +44 20 3855 5551
Statement of Comprehensive Income
For the six months ended 30 June 2023
Unaudited Unaudited Audited
30 June 30 June 31 December
2023 2022 2022
$000 $000 $000
OTHER OPERATING INCOME
Cost of sales
- - -
Gross (loss)
- - -
Fair value adjustment of receivables - - (20,710)
Fair value adjustment borrowings
- - 6,839
Administrative expenses
Recurring administrative costs (224) (944) (1,526)
OPERATING LOSS (224) (944) (15,397)
Finance income - - -
Finance cost - - -
LOSS FROM CONTINUING ACTIVITIES BEFORE TAXATION (224) (944) (15,397)
Tax expense - - -
LOSS FOR THE PERIOD ATTRIBUTABLE TO THE EQUITY HOLDERS (224) (944) (15,397)
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO THE EQUITY HOLDERS (224) (944) (15,397)
Loss per share - basic (0.0003) (0.001) (0.02)
Loss per share - diluted (0.0003) (0.001) (0.02)
Statement of Financial Position
At 30 June 2023
Unaudited Unaudited Audited
30 June 30 June 31 December 2022
2023 2022
$000
$000 $000
CURRENT ASSETS
Trade and other receivables due within one year 2,474 - 2,114
Cash and cash equivalents 1,093 547 208
TOTAL CURRENT ASSETS 3,567 547 2,322
Trade and other receivables due after one year 26,120 51,919 29,095
TOTAL ASSETS 29,687 52,466 31,417
EQUITY
Share capital 30 38 30
Share premium account 264,729 265,500 264,729
Retained earnings (245,465) (230,788) (245,241)
TOTAL EQUITY 19,294 34,750 19,518
CURRENT LIABILITIES
Trade and other payables due within one year 2,995 1,459 4,501
TOTAL CURRENT LIABILITIES 2,995 1,459 4,501
Trade and other payables due after one year 7,398 16,257 7,398
TOTAL LIABILITIES 10,393 17,716 11,899
TOTAL EQUITY AND LIABILITIES 29,687 52,466 31,417
Statement of Changes in Equity
For the six months ended 30 June 2023
Share capital Share premium Retained losses Total shareholder equity
$000 $000 $000 $000
Balance (restated) as at 31 December 2021 27 264,004 (229,844) 34,187
Loss for the period - - (944) (944)
Total comprehensive income for the period 27 264,004 (230,788) 33,243
Issue of ordinary shares 11 1,496 - 1,507
Total transactions with owners 11 1,496 - 1,507
Balance at 30 June 2022 38 265,500 (230,788) 34,750
Loss for the period - - (14,453) (14,453)
Total comprehensive income for the period 38 265,500 (245,241) 20,297
Issue of ordinary shares 2 367 - 369
Shares cancelled (10) (1,138) - (1,148)
Total transactions with owners (8) (771) - (779)
Balance at 31 December 2022 30 264,729 (245,241) 19,518
Loss for the period - - (224) (224)
Total comprehensive income for the period 30 264,729 (245,465) 19,294
Issue of ordinary shares - - - -
Total transactions with owners - - - -
Balance at 30 June 2023 30 264,729 (245,465) 19,294
Statement of Cashflows
For the six months ended 30 June 2023
Unaudited Unaudited Audited
6 months ended 6 months ended Year
30 June 2023 30 June 2022 ended
31 December 2022
$000 $000 $000
Operating activities
Loss before taxation (224) (944) (15,397)
Decrease in trade and other receivables 2,615 - 20,710
(Decrease) / increase in trade and other payables (1,506) 1,714 (5,155)
Net cash used in operating activities 885 770 158
Cash Flows from Financing Activities
Loans received - 1,096 -
Loan repayment via issue of shares - (1,369) -
Net Cash generated from Financing Activities - (273) -
Increase in cash and cash equivalents in period 885 497 158
Cash and cash equivalents at beginning of period 208 50 50
Cash and cash equivalents at end of period 1,093 547 208
Notes to the Interim Report
For the six months ended 30 June 2023
1. GENERAL INFORMATION
Fenikso Limited ("the Company") is a company incorporated and domiciled in the
Cayman Islands. The address of the registered office is 190 Elgin Avenue,
George Town, Grand Cayman KY1-9001, Cayman Islands.
The Company's shares are traded on the Aquis Stock Exchange under symbol FNK
and ISIN number KYG5462G1073.
2 BASIS OF PREPARATION
These condensed interim financial statements do not include all of the
information required for full annual financial statements and should be read
in conjunction with the financial statements of the Company for the year ended
31 December 2022 which were prepared in accordance with EU-endorsed
International Financial Reporting Standards ('IFRSs'), IFRIC interpretations
as adopted by the EU.
The financial statements have been prepared under the historical cost
convention except for financial instruments and share based payments which are
measured at fair value. Monetary amounts in these financial statements are
rounded to the nearest $000.
The interim financial statements for the six months ended 30 June 2023 are
unaudited and have not been reviewed by the Company's auditors, Bright Grahame
Murray. The comparative interim figures for the six months ended 30 June 2022
are also unaudited and are restated to reflect the adjustments made in the
audited financial statements for the year ended 31 December 2022 to the prior
year comparatives for the year ended 31 December 2021.
The accounting policies applied by the Company in the preparation of these
condensed consolidated interim financial statements are the same as those
applied by the Company in its financial statements for the year ended 31
December 2022.
3. EARNINGS PER SHARE
The basic loss per share is derived by dividing the loss for the period
attributable to ordinary shareholders by the weighted average number of shares
in issue.
Unaudited Unaudited Audited
30 June 2023 30 June 2022 31 December 2022
$000 $000 $000
Loss for the period (224) (944) (15,397)
Weighted average number of shares 599,396 673,394 736,567
Basic earnings per share (0.0003) (0.001) (0.02)
4. TRADE AND OTHER RECEIVABLES
Unaudited Unaudited Audited
30 June 2023 30 June 2022 31 December 2022
$000 $000 $000
Current - falling due within one year
Trade receivables - - -
Other receivables 2,474 - 2,114
2,474 - 2,114
Non current - falling due after one year
Other receivable 26,120 51,919 29,095
Total 28,594 51,919 31,209
Under the settlement deed of 7 December 2022, the Company granted a new loan
of approximately $51,919,467 to Lekoil Oil and Gas Investments Limited
("LOGI") (the "LOGI Loan") in consideration for the transfer of certain loans
granted to Lekoil Nigeria and its related entities to LOGI, the release of
security related to such loans and the waiver of any repayment of amounts due
under such loans. Accordingly, the balance of intercompany receivable at 31
December 2022 was $51,919,467 with residual balances written off to reserves.
The Company carried out an assessment of the value of the amounts due at 31
December 2022 on a discounted basis using a rate of 16.821% to effect a
current market value of the loan of $31,209,408. The difference of $20,710,059
was recognised in the statement of comprehensive income. The loan is being
repaid by 8.653% of the aggregate proceeds of the sales received from Shell
Western in respect of each lifting of crude oil by LOGI. During the period to
30 June 2023, the Company has announced it has received a total of $2,615,472
as partial repayment of the loan of US$51,919,467. A further $1,543,240 has
since been received post 30 June 2023.
5. TRADE AND OTHER PAYABLES
Unaudited Unaudited Audited
30 June 2023 30 June 2022 31 December 2022
$000 $000 $000
Current - falling due within one year
Trade payables 542 737 1,494
Other payables 2,020 137 2,020
Accruals 433 585 987
2,995 1,459 4,501
Non current - falling due after one year
Other payables 7,398 16,257 7,398
Total 10,393 17,716 11,899
Following the Settlement Deed, the Company entered into a loan agreement with
Savannah Energy pursuant to which the Company agreed to pay Savannah Energy
certain upfront payments together with 25% of all amounts received by the
Company from LOGI pursuant to the LOGI Loan, subject to a maximum total
payment of approximately $16,256,159. The Company assessed the value of the
loan amount at 31 December 2022 on a discounted basis using a rate of 16.821%
to effect a current market value of $9,417,555. The difference of $6,838,604
was recognised in the statement of comprehensive income.
6. APPROVAL OF INTERIM FINANCIAL STATEMENTS
The Condensed interim financial statements were approved by the Board of
Directors on 25 September 2023. A copy can be obtained on the Company's
website at https://feniksoplc.com
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