REG - Leyshon Resources - Half Yearly Report <Origin Href="QuoteRef">LRL.AX</Origin> - Part 2
29/10/2014 11:41
- Part 2: For the preceding part double click ID:nRSO6042Ra
classified as held for distribution - 418,224
-
418,224
5. DISPOSAL OF SUBSIDIARY
As disclosed in Note 4, the Group obtained shareholder approval on 13 January
2014 to demerge its energy assets via an in-specie distribution to eligible
shareholders of the Company, which was implemented on 23 January 2014.
The major classes of assets and liabilities of the energy business at the
implementation date were as follows:
23 January 2014
$
Cash and bank balances 32,833,304
Trade and other receivables 105,684
Property, plant and equipment 205,886
Exploration & evaluation assets 4,711,162
Other assets 7,301
Assets disposed of 37,863,337
Trade and other payables 8,019,929
Provisions 93,920
Deferred tax liabilities 1,087,191
Liabilities disposed of 9,201,040
Net assets distributed to shareholders 28,662,297
Cumulative exchange gain in respect of the net assets of the subsidiary reclassified from equity to profit and loss on loss of control of subsidiary 2,429,383
2,429,383
Gain on disposal of subsidiary
Half-Year Ended30 June 2014 Half-Year Ended30 June 2013
$ $
Fair value of assets distributed 27,278,327 -
Net assets distributed to shareholders (28,662,297) -
Cumulative exchange gain in respect of the net assets of the subsidiary reclassified from equity to profit and loss on loss of control of subsidiary 2,429,383 -
Gain on disposal 1,045,413 -
6. TRADE AND OTHER PAYABLES 30 June 2014 31 Dec 2013
$ $
Current
Trade creditors 1,128,961 40,786
Accruals 27,002 36,428
1,155,963 77,214
Trade creditors represent liabilities for goods and services provided to the
Group prior to the end of the financial period which are unpaid. The amounts
are unsecured and non-interest bearing with average payment terms of 30 days.
7. ISSUANCES, REPURCHASES AND REPAYMENTS OF EQUITY SECURITIES
During the half-year reporting period, there was a reduction in ordinary share
capital due to the return of capital via an in-specie distribution of shares
in Leyshon Energy Limited or other issued share capital of the Company during
the current half-year reporting period (2013: There were no movements in
ordinary share capital or other issued share capital of the Company).
During the half-year reporting period, there were 9,000,000 incentive options
issued over ordinary shares (2013: nil).
Movements in share capital were as follows (Group and Company):-
Date Details Ordinary Shares(Number) Ordinary Shares($)
1 January 2013 Opening Balance 249,457,212 57,071,050
30 June 2013 Closing Balance 249,457,212 57,071,050
1 January 2014 Closing Balance 249,457,212 57,071,050
23 January 2014 Redistribution of capital - (12,389,829)
23 January 2014 in-specie distribution of Leyshon Energy shares - (27,770,369)
30 June 2014 Closing Balance 249,457,212 16,910,852
Note
(i) Fully paid ordinary shares carry one vote per share and carry the
right to dividends.
(ii) During 2013, the Company agreed to issue 5,000,000 performance
rights to Key Management Personnel, however the officers concerned agreed to
forego their entitlement should the demerger of the Company's energy assets
proceed. The demerger was completed on 23 January 2014 and accordingly the
performance rights have not been and will not be issued.
(iii) On 18 June 2014, in accordance with shareholder approval, the
Company granted the following incentive options to the Managing Director,
Corey Nolan:
i. 3,000,000 options exercisable at A$0.02 each, expiring 18 June 2017;
ii. 3,000,000 options exercisable at A$0.04 each, expiring 18 June 2017;
iii. 3,000,000 options exercisable at A$0.06 each, expiring 18 June 2017;
30 June 2014 31 Dec 2013
8. RESERVES $ $
Share-based payment reserve 1,490 11,044
Foreign currency translation reserve (176,049) 1,877,673
(174,559) 1,888,717
Movement in reserves
The movement in each of the reserves has been set out in the Statement of
Changes in Equity.
Nature and purpose of reserves
Share-based payment reserve
The share-based payment reserve is used to recognise the fair value of
services provided to the Company in return for the issue of equity-based
payments in the Company.
Foreign currency translation reserve
The foreign currency translation reserve recognises exchange differences that
arise from translation of foreign controlled entities into the Group's
functional currency and from translation from the functional currency to the
presentation currency for reporting. Exchange differences arising from
translation of foreign controlled entities into the functional currency are
taken to the foreign currency translation reserve. The accumulated exchange
difference is recognised in profit or loss when the net investment is disposed
of.
9. DIVIDENDS PAID OR PROVIDED FOR
No dividends have been paid or provided for during the half-year (June 2013:
nil).
10. COMMITMENTS FOR EXPENDITURE AND CONTINGENT LIABILITIES
There were no commitments for expenditure at 30 June 2014 (31 December 2013:
nil).
There has been no material change in the contingent assets or liabilities of
the Consolidated Entity during the half-year.
11. LEASE COMMITMENTS
Operating leases
Leasing arrangements
The operating leases relate to the lease of an office in Beijing, China and an office in Perth, Australia. The current lease in Beijing is for a period of two years commencing 1 November 2012 and the lease in Perth is for a period of 1 year commencing 1 September 2013. The Group does not have an option to acquire the leased assets at the expiry of the lease period.
30 June 2014$ 31 Dec2013$
Non-cancellable operating leases
Not longer than 1 year 29,572 279,970
Longer than 1 year and not longer than 5 years - -
Longer than 5 years - -
29,572 279,970
12. SEGMENT INFORMATION
At 31 December 2013 the Group had two operating segments, being the
exploration for unconventional gas in China ("the Energy business") and
exploration for minerals and to the Group's continuing Minerals business ("the
Mineral business").
As disclosed in notes 4 and 5, on 13 September 2013, the Company announced
that it would seek shareholder and regulatory approvals to separate its energy
and mineral businesses. On 9 December 2013 the Company despatched a Notice of
Meeting seeking shareholder approval to demerge its energy assets via an
in-specie distribution to eligible shareholders of the Company. Shareholders
subsequently approved the demerger on 13 January 2014 and the demerger was
implemented on 23 January 2014. The current and comparative period loss and
cash flows relating to the energy business have been presented within note 4
and have been classified as discontinued operations.
Following the disposal of the Energy the Group has only one operating segments
being the continuing Minerals business.
All assets, liabilities, revenue and expenses that do not relate to the Energy
business (as disclosed in note 4 and 5) relate to the Group's continuing
Minerals business.
13. SUBSEQUENT EVENTS AFTER BALANCE DATE
Australian Securities Exchange ("ASX") policy is to allow companies that have
disposed of their main undertakings a six-month period within which to satisfy
ASX that the company has a sufficient level of operations to justify continued
quotation of the company's securities on the ASX. On 14 July 2014 the
securities of the Company were suspended from quotation on the ASX until the
Company is able to demonstrate compliance with Chapter 12 of the ASX Listing
Rules. The Company's securities continue to trade on the AIM Market.
Subsequent to the balance date, a settlement with other parties resulted in a
reduction in both receivables and trade creditors of $1,036,074.
There were no other significant events occurring after balance date requiring
disclosure in the financial statements.
Deloitte
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Woodside Plaza
Level 14
240 St Georges Terrace
Perth WA 6000
GPO Box A46 Perth WA 6837
Australia Tel: +61 8 9365 7000
Fax: +61 9368 7001
www.deloitte.com.au
Independent Auditor's Review Report
to the members of Leyshon Resources Limited
We have reviewed the accompanying half-year financial report of Leyshon
Resources Limited, which comprises the condensed statement of financial
position as at 30 June 2014, and the condensed statement of profit or loss and
other comprehensive income, the condensed statement of cash flows and the
condensed statement of changes in equity for the half-year ended on that date,
selected explanatory notes and, the directors' declaration of the consolidated
entity comprising the company and the entities it controlled at the end of the
half-year or from time to time during the half-year as set out on pages 7 to
18.
Directors' Responsibility for the Half-Year Financial Report
The directors of the company are responsible for the preparation of the
half-year financial report that gives a true and fair view in accordance with
Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the
preparation of the half-year financial report that gives a true and fair view
and is free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express a conclusion on the half-year financial
report based on our review. We conducted our review in accordance with
Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report
Performed by the Independent Auditor of the Entity, in order to state whether,
on the basis of the procedures described, we have become aware of any matter
that makes us believe that the half-year financial report is not in accordance
with the Corporations Act 2001 including: giving a true and fair view of the
consolidated entity's financial position as at 30 June 2014 and its
performance for the half-year ended on that date; and complying with
Accounting Standard AASB 134 Interim Financial Reporting and the Corporations
Regulations 2001. As the auditor of Leyshon Resources Limited, ASRE 2410
requires that we comply with the ethical requirements relevant to the audit of
the annual financial report.
A review of a half-year financial report consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with Australian Auditing
Standards and consequently does not enable us to obtain assurance that we
would become aware of all significant matters that might be identified in an
audit. Accordingly, we do not express an audit opinion.
Auditor's Independence Declaration
In conducting our review, we have complied with the independence requirements
of the Corporations Act 2001. We confirm that the independence declaration
required by the Corporations Act 2001, which has been given to the directors
of Leyshon Resources Limited, would be in the same terms if given to the
directors as at the time of this auditor's review report.
Conclusion
Based on our review, which is not an audit, we have not become aware of any
matter that makes us believe that the half-year financial report of Leyshon
Resources Limited is not in accordance with the Corporations Act 2001,
including:
(a) giving a true and fair view of the consolidated entity's financial
position as at 30 June 2014 and of its performance for the half-year ended on
that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting
and the Corporations Regulations 2001.
DELOITTE TOUCHE TOHMATSU
David Newman
Partner
Chartered Accountants
Perth, 12 September 2014
Liability limited by a scheme approved under Professional Standards
Legislation.
Member of Deloitte Touche Tohmatsu Limited
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Labyrinth Resources
See all newsREG - Reckitt Benckiser Gp - Annual Financial Report <Origin Href="QuoteRef">LRL.AX</Origin> <Origin Href="QuoteRef">RB.L</Origin>
AnnouncementREG - AIM Leyshon Resources - Suspension - Leyshon Resources Limited <Origin Href="QuoteRef">LRL.AX</Origin>
AnnouncementREG - Leyshon Resources - Proposed Acquisition Interest in Tungsten Project <Origin Href="QuoteRef">LRL.AX</Origin>
AnnouncementREG - Leyshon Resources - Quarterly Cashflow Report <Origin Href="QuoteRef">LRL.AX</Origin>
AnnouncementREG - Leyshon Resources - Quarterly Activities Report <Origin Href="QuoteRef">LRL.AX</Origin>
Announcement