REG - Parkmead Group (The) - Interim Results for six-months ended 31 Dec 2021
25/03/2022 07:16
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RNS Number : 9867F Parkmead Group (The) PLC 25 March 2022
25 March 2022
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Interim Results for the six-month period ended 31 December 2021
Parkmead, the independent energy group focused on growth through gas, oil and
renewable energy projects, is pleased to report its interim results for the
six-month period ended 31 December 2021.
HIGHLIGHTS
Revenue tripled, gross profit up 389% and profits recorded at operating and
pre-tax levels
· Revenue tripled to £4.6 million for the period (2020: £1.5
million) as the Company benefited from the continued increase in gas prices
· Gross profit increased by 389% to £3.8 million (2020: £0.8
million), demonstrating the high-quality nature of Parkmead's onshore
Netherlands assets and strong operating leverage
· Gross profit margin increased to 82% (2020: 50%)
· Operating profit achieved of £1.9 million (2020: £1.1 million
loss) or 1.7p on a per share basis
· Profit before tax of £1.3 million (2020: £1.4 million loss)
· Well capitalised, with cash balances of US$32.2 million (£24.1
million) as at 31 December 2021, equivalent to 22.1 pence per share
· Net cash generated from operating activities of £1.7 million
(2020: £0.3 million used in operating activities)
· Total assets of £80.5 million at 31 December 2021 (2020: £86.8
million)
· The strong recovery in gas prices continued during the period
with prices in June 2021 of around €25/MWh, increasing to around €95/MWh
in December 2021
· Due to ongoing geopolitical events, the current gas price has
reached €160/MWh in March 2022; Parkmead is 100% unhedged
New two-well drilling campaign in the Netherlands; gas royalty acquisition
proving highly beneficial
· Firm budget agreed for the 'LDS' two-well drilling campaign from
the Diever site
· The LDS project will target a combined Pmean GIIP of 37.2 billion
cubic feet ("Bcf"), in the prolific Rotliegendes reservoirs found on the
licence
· Papekop gas development has successfully progressed through the
concept select gate and is now in the permitting stage; planned gas
development targeting 35.6 Bcf of gross reserves with oil upside
· Acquisition of Netherlands gas royalty completed in July 2021 for
a consideration of €565k, doubling Parkmead's effective financial interest
from 7.5% to 15% in the Grolloo, Geesbrug and Brakel gas fields
· Parkmead is benefitting strongly from this gas royalty deal,
completed ahead of the recent increase in energy prices
· Low-cost onshore gas portfolio in the Netherlands produces from
four separate gas fields with an average field operating cost of just US$8.6
per barrel of oil equivalent, generating strong cash flows
· Average netback over the six-month period to 31 December from the
Netherlands of approximately $72.9 per barrel of oil equivalent
· Average gross production for the period across the Group's
Netherlands assets was 22.2 MMscfd, approximately 3,810 barrels of oil
equivalent per day ("boepd")
Oil price upside from Perth project; excellent progress on large Skerryvore
prospect
· Every $10/bbl increase in the long-term oil price assumption adds
approximately £130 million to the modelled P50 post-tax NPV of the Perth
field development alone
· Parkmead is assessing commercial offers received for the
potential tie-back of the Greater Perth Area ("GPA") and is in discussions
with operators in the GPA vicinity where new opportunities have arisen
· GPA has the potential to deliver 75-130 million barrels of oil
equivalent ("MMBoe") on a P50 basis
· Extension to the Skerryvore licence has been successfully awarded
to Parkmead (as operator) and joint venture partners
· Completed reprocessing of Skerryvore 3D seismic, allowing final
rock physics and inversion scopes to begin
· Multiple exploration and development activities centred around
Skerryvore prospect in 2021/22
· Skerryvore's main prospects are three stacked targets, at Mey and
Chalk level, which together could contain 157 MMBoe
Operational wind farm acquired, delivering immediate electricity revenue
· Acquisition of 1.5MW onshore wind farm in Scotland through
purchase of Kempstone Hill Wind Energy Limited ("KHWEL") for £3.29 million in
cash (post period end)
· The Kempstone Hill wind farm provides power for up to 1,000 homes
and has an attractive inflation-linked, Feed-in Tariff through until 2036
· Electricity is sold through a power purchase agreement which
provides valuable upside through rising wholesale electricity prices
· It is expected that annual PPA redetermination will capture
increased electricity prices
· This acquisition significantly increases Parkmead's presence in
the renewable energy and electricity markets
Substantial oil and gas reserves
· 2P reserves of 45.6 MMBoe as at 1 March 2022 (45.7 MMBoe as at 1
March 2021)
Well positioned for further acquisitions and opportunities
· Parkmead is actively evaluating further acquisition opportunities
in each of its areas of activity, renewables, gas and oil
Parkmead's Executive Chairman, Tom Cross, commented:
"I am delighted to report excellent growth in the six-month period to 31
December 2021. We have delivered a tripling of our revenue, led by our
high-quality Dutch assets and the significant rise in gas prices.
The innovative royalty deal we completed last summer is proving to be highly
advantageous and is adding considerable value to Parkmead. Parkmead is 100%
unhedged and is directly benefitting from these additional gas sales at higher
prices.
We now plan to increase our activity in the Netherlands with a firm drilling
campaign planned for 2022/23.
Parkmead's acquisition of the Kempstone Hill wind farm provides another
revenue-generating asset to the Group, which has a long-life and a very steady
stream of cash flow. This operational wind farm is complementary to our
earlier stage, high-upside renewable energy projects.
Our team continues to carefully evaluate further potential gas, oil and
renewable energy acquisitions that would enhance our existing business.
Parkmead is well positioned for the future. We have excellent UK and
Netherlands regional expertise, strong financial discipline, and a growing
portfolio of high-quality assets. The Group will continue to build upon
the inherent value in its existing interests with a balanced, acquisition-led,
growth strategy to secure opportunities that maximise future value for our
shareholders"
Enquiries:
The Parkmead Group plc +44 (0) 1224 622200
Tom Cross (Executive Chairman)
Ryan Stroulger (Chief Financial Officer)
finnCap Ltd (NOMAD and Broker to Parkmead) +44 (0) 20 7220 0500
Marc Milmo / Seamus Fricker - Corporate Finance
Andrew Burdis / Barney Hayward - ECM
Financial Performance
During the six-month period to 31 December 2021, the Group tripled its revenue
to £4.6 million (2020: £1.5 million). This large increase was driven by the
significant uplift in gas prices, with prices rising from around €25/MWh in
June 2021 to approximately €95/MWh in December 2021. In addition, the
Company benefitted from a greater proportion of production from certain of its
licences in the Netherlands following the completion of the gas royalty
acquisition in July 2021. Gross profit increased by 389% to £3.8 million
(2020: £0.8 million), demonstrating the high-quality nature of Parkmead's
onshore Netherlands, assets and strong operating leverage. An outstanding
gross profit margin of 82% was achieved as a result (2020: 50%).
Due to ongoing geopolitical events, the current TTF gas price has reached
€160/MWh. Parkmead remains 100% unhedged, thus giving exposure to these
higher Dutch gas prices for the remainder of the year.
Parkmead delivered an operating profit of £1.9 million for the half year
(2020: £1.1 million loss), or 1.7p on a per share basis. The Group moved into
profit before tax of £1.3 million (2020: £1.4 million loss). Taxation for
the period was £1.7 million (2020: £0.2 million), mainly due to the very low
Netherlands cost base and payment timing. Net cash generated from operating
activities was £1.7 million (2020: £0.3 million used in operating
activities). Administrative expenses amounted to £1.5 million (2020: £1.1
million).
Parkmead's total assets as at 31 December 2021 stood at £80.5 million (2020:
£86.8 million). Parkmead is very carefully managed and maintains a strong
financial discipline. Cash and cash equivalents at 31 December 2021 were
£24.1 million (30 June 2021: £23.4 million), equivalent to 22.1 pence per
share. Interest bearing loans receivable were £2.9 million (2020: £2.9
million). Debt was reduced significantly during the period to £0.5 million
(2020: £3.1 million).
Review of Activities
Parkmead has delivered substantial growth in its high-quality asset portfolio
across the UK and the Netherlands.
High-quality Netherlands asset base
In July 2021, Parkmead completed the acquisition of a gas royalty associated
with the Group's existing interests in the Drenthe IV, Drenthe V and Andel Va
licenses in the Netherlands from Vermilion Energy. These licences contain the
Grolloo, Geesbrug and Brakel onshore gas fields, respectively.
The acquisition doubled the Group's effective financial interest from 7.5% to
15% (in line with Parkmead's working interest in the licences). This royalty
was previously held by NAM (a Shell and ExxonMobil joint venture) and came
with the licences when they were acquired by Parkmead. The consideration for
the royalty was €565k.
The acquisition is already proving to be of significant benefit to Parkmead as
it was completed ahead of the recent increase in energy prices. It is expected
that the royalty deal will also significantly extend the producing life of
these fields, through greater partner alignment.
Parkmead and its joint venture partners have now agreed a firm budget which
includes a new two-well drilling campaign, expected to take place in late
2022/early 2023, targeting the LDS-A-SW, LDS-A-CE and LDS-B prospects
(previously named Leemdijk and De Bree). Drilling will target up to 37.3 Bcf
of gross gas resources, on a Pmean basis, in the prolific Rotliegendes
reservoirs found on the licence (CoS of between 40 and 49%). If successful,
the prospects offer a fast-track tie-in opportunity.
Our Netherlands production was some of the most efficient and profitable in
Europe during 2021, on a per-barrel basis. Production across the fields
remained uninterrupted throughout national and local COVID-19 lockdowns.
Average gross production for the period across the Group's Netherlands assets
was 22.2 MMscfd, approximately 3,810 barrels of oil equivalent per day
("boepd").
The operating cost of the combined fields is very low at just $8.6 per barrel
of oil equivalent. These high-quality assets, combined with the operating
leverage from a fixed cost base, underpins the outstanding gross profit margin
during the period and allows us to invest in further opportunities. Parkmead's
onshore gas production continues to form a key part of the Group and an
important role in our transition to a lower-carbon environment. On our Drenthe
VI licence, the Diever gas field remains in the top three most prolific
producing onshore fields in the Netherlands. Given the production from
Parkmead's Netherlands assets, especially in the context of current gas
prices, a key near term focus for the Company will be to maximise the
opportunities within these licences. The planned two-well drilling campaign is
part of this strategy.
Finally, we are pleased to report that our Papekop development has
successfully progressed through the concept select gate and we will now carry
out further engineering studies and continue the permitting process.
Transportation discussions are also maturing. A potential gas development is
planned at Papekop targeting 35.6 Bcf of gross reserves, with oil upside.
UK Oil and Gas Projects
Greater Perth Area ("GPA")
The Greater Perth Area (GPA) development continues to form a part of our
balanced portfolio of assets. Transportation studies for our base case
development concept were previously completed. These have confirmed there are
no technical hurdles associated with the transportation and processing of
fluids from the Perth producing wells all the way through the offshore
infrastructure to the onshore facilities. Parkmead continues to engage with
leading, supply chain companies in order to optimise the commercial
solution.
Parkmead is assessing draft commercial offers received from the Scott field
partnership for the potential tie-back of the GPA project. Scott lies just
10km southeast of the GPA project and a tie-back could yield a number of
mutually beneficial advantages for both the Scott partnership and Parkmead. A
tie-back to Scott is just one path to potentially unlock the substantial value
of the GPA project.
The GPA project has the potential to deliver 75-130 MMBoe on a P50 basis. For
the Perth field development alone, every $10/bbl increase in the long-term oil
price assumption adds approximately £130 million of value to the modelled P50
post-tax NPV of the project. We believe that projects like GPA play an
important role in underpinning the supply of energy that the UK requires in
its transition to net zero. As a fuel that is primarily used for
transportation, manufacturing and petrochemicals, oil will continue to feature
as a vital commodity in the UK over the coming years. Therefore, it is very
important that the UK continues to develop such projects in order to reduce
reliance on less-regulated, more carbon-intensive imports. Parkmead believes
that production of hydrocarbons from GPA can be done in a sustainable fashion
in alignment with the UK government's most recent targets on carbon
emissions.
Skerryvore
An extension to the Skerryvore licence, P.2400, was successfully awarded to
Parkmead and its joint venture partners during the period. The joint venture
has made excellent progress over the last 12 months, having completed
reprocessing of the 3D seismic, rock physics, inversion, biostratigraphy and
geochemistry scopes. Volumetrics and economics are currently being finalised
ahead of a drilling decision.
The acreage around Skerryvore is currently seeing important activity on
several fronts, with Harbour Energy close to a Final Investment Decision on
the adjacent Talbot discovery, NEO continuing with the redevelopment of
Affleck and Shell recently spudding the nearby Edinburgh well (March 2022).
Development activity is also taking place in the Norwegian sector and in close
proximity to Skerryvore at Tommeliten A (ConocoPhillips). Skerryvore's main
prospects are three stacked targets, at Mey and Chalk level, which together
could contain 157 million barrels of oil equivalent ("MMBoe"). Parkmead
operates the Skerryvore licence with a 30% working interest. Our joint venture
partners in the licence are Serica Energy (20%), CalEnergy Resources (20%) and
NEO Energy (30%).
UK Renewables Portfolio
On 31 January 2022, Parkmead completed a major expansion of its UK renewable
energy portfolio through the acquisition of Kempstone Hill Wind Energy Limited
("KHWEL"). This provides Parkmead with its first operational renewable energy
asset, a 1.5MW wind farm in Scotland, which provides power for up to 1,000
homes.
The total consideration comprised £3.29 million in cash. In addition,
Parkmead assumed a project loan of approximately £990k and £300k of cash
within KHWEL on acquisition (which becomes a subsidiary of the Group).
The wind farm has an attractive inflation-linked, Feed-in Tariff through until
2036. Electricity is sold through a power purchase agreement which provides
exposure to rising wholesale electricity prices. We anticipate that a new PPA,
taking effect in Q3 2022, means that Parkmead should benefit from the
considerable increase in electricity prices.
The acquisition of this wind farm sits well within the Board's strategy and
increases the Group's presence in this rapidly growing sector. Furthermore,
the Board believes that, as a successful wind farm already connected to the
grid, the Group will benefit from Kempstone Hill's established relationships
and expertise as it looks to advance the Group's other renewable energy
opportunities.
Within its existing renewable energy portfolio, Parkmead has identified
substantial wind energy potential at one location, some 15 miles west of
Aberdeen. The acreage has excellent average wind speeds and lies adjacent to
the Mid Hill Wind Farm which contains 33 Siemens wind turbines with a
generating capacity of around 75 megawatts (MW). Technical studies are
underway on this site.
Outlook
Parkmead has delivered significant growth across its portfolio in the
six-month period to 31 December 2021 and in the three months post period end.
This had been achieved whilst maintaining the Group's healthy financial
position. The Directors believe that there are excellent opportunities to
increase production from its Netherlands assets and we are focused on working
with our partners in the Netherlands to drive forward a two-well drilling
campaign. The current gas price environment provides excellent opportunities
to capitalise on the low cost of production from these interests.
We are pleased with the Group's continuing progress in building a high-quality
business of increasing breadth and scale. Parkmead has a strong core of
profitable gas production and a balanced portfolio with significant growth
potential.
As we move further into 2022, Parkmead maintains its appetite for acquisitions
and is carefully analysing a number of opportunities. The Board is confident
that the Parkmead team is well positioned to drive the business forward and to
build upon the achievements already made to date.
Tom Cross
Executive Chairman
25 March 2022
Notes:
1. Tim Coxe, Parkmead Group's Managing Director, North Sea, who holds a
First-Class Master's Degree in Engineering and over 30 years of experience in
the oil and gas industry, has overseen the review and approval of the
technical information contained in this announcement. Tim is accountable for
the company's HSE, Subsurface, Drilling, Production Operations and Development
Project functions. Reserves and contingent resource estimates have been
produced by Parkmead's subsurface team and are stated as of 1 March 2022.
Parkmead's evaluation of reserves and resources was prepared in accordance
with the 2007 Petroleum Resources Management System prepared by the Oil and
Gas Reserves Committee of the Society of Petroleum Engineers and reviewed and
jointly sponsored by the World Petroleum Council, the American Association of
Petroleum Geologists and the Society of Petroleum Evaluation Engineers.
A glossary of key terms can be found at
https://www.nstauthority.co.uk/site-tools/glossary-of-terms/
Condensed Consolidated statement of profit and loss and other comprehensive
income
for the six months ended 31 December 2021
Six months to 31 December 2021 Six months to 31 December 2020 Twelve months to 30 June 2021
Continuous operations Notes £'000 £'000 £'000
Revenue 4,633 1,548 3,608
Cost of sales (837) (772) (1,835)
Gross profit 3,796 776 1,773
Exploration and evaluation expenses 2 (465) (605) (11,116)
Loss on sale of assets - (35) (388)
Administrative (expenses)/credit 3 (1,457) (1,192) (3,040)
Operating profit / (loss) 1,874 (1,056) (12,771)
Finance income 37 62 148
Finance costs (625) (393) (819)
Profit / (loss) before taxation 1,286 (1,387) (13,442)
Taxation (1,697) (165) (364)
Loss for the period (411) (1,552) (13,806)
Loss per share (pence)
Basic 5 (0.38) (1.42) (12.64)
Diluted (0.38) (1.42) (12.64)
Condensed Consolidated statement of financial position
as at 31 December 2021
At 31 December 2021 At 31 December 2020 At 30 June 2021
Notes (unaudited) (unaudited) (audited)
£'000 £'000 £'000
Non-current assets
Property, plant and equipment: development & production 14,613 11,926 14,646
Property, plant and equipment: other 4,391 8,491 4,654
Goodwill 2,174 2,174 2,174
Exploration and evaluation assets 30,685 36,019 29,497
Interest bearing loans 4 2,900 - 2,900
Deferred tax assets - 3 -
Total non-current assets 54,763 58,613 53,871
Current assets
Trade and other receivables 1,597 597 1,352
Interest bearing loans 4 - 2,937 -
Inventory 46 114 66
Cash and cash equivalents 24,128 24,533 23,378
Total current assets 25,771 28,181 24,796
Total assets 80,534 86,794 78,667
Current liabilities
Trade and other payables (2,975) (4,162) (3,490)
Decommissioning provisions (13,498) - -
Current tax liabilities (1,219) - (241)
Total current liabilities (17,692) (4,162) (3,731)
Non-current liabilities
Other liabilities (903) (1,247) (1,011)
Loan (500) (3,110) (500)
Deferred tax liabilities (1,339) (1,404) (1,339)
Decommissioning provisions (2,739) (7,945) (14,365)
Total non-current liabilities (5,481) (13,706) (17,215)
Total liabilities (23,173) (17,868) (20,946)
Net assets 57,361 68,926 57,721
Equity attributable to equity holders
Called up share capital 19,688 19,687 19,688
Share premium 88,017 87,983 88,017
Merger reserve 3,376 3,376 3,376
Retained deficit (53,720) (42,120) (53,360)
Total equity 57,361 68,926 57,721
Condensed Consolidated statement of changes in equity
for the six months ended 31 December 2021
Share capital Share premium Merger reserve Retained deficit Total
£'000 £'000 £'000 £'000 £'000
At 1 July 2020 19,678 87,805 3,376 (39,513) 71,346
Loss for the period - - - (1,552) (1,552)
Total comprehensive income / (loss) for the year - - - (1,552) (1,552)
Share capital issued 9 178 - - 187
Share-based payments - - - (1,055) (1,055)
At 31 December 2020 19,687 87,983 3,376 (42,120) 68,926
Loss for the period - - - (12,254) (12,254)
Total comprehensive income / (loss) for the year - - - (12,254) (12,254)
Share capital issued 1 34 - - 35
Share-based payments - - - 1,014 1,014
At 30 June 2021 19,688 88,017 3,376 (53,360) 57,721
Loss for the period - - - (411) (411)
Total comprehensive income / (loss) for the year - - - (411) (411)
Share-based payments - - - 51 51
At 31 December 2021 19,688 88,017 3,376 (53,720) 57,361
Condensed Consolidated statement of cashflows
for the six months ended 31 December 2021
Six months to 31 December 2021 Six months to 31 December 2020 Twelve months to 30 June 2021
Notes £'000 £'000 £'000
Cashflows from operating activities
Cashflows from operations 2,474 (1) (1,191)
Taxation paid (770) (293) (124)
Net cash generated from / (used in) operating activities 1,704 (294) (1,315)
Cash flow from investing activities
Interest received 37 43 148
Acquisition of exploration and evaluation assets (360) (346) (369)
Proceeds from sale of property, plant and equipment - 700 4,000
Acquisition of property, plant and equipment: development and production (46) (16) (165)
Acquisition of property, plant and equipment: other (1) (75) (114)
Decommissioning expenditure (233) - (31)
Net cash (used in) / generated from investing activities (603) 306 3,468
Cash flow from financing activities
Lease payments (162) (222) (421)
Interest paid (24) (56) (110)
Repayment of loans and borrowings - (490) (3,100)
Net cash used in financing activities (186) (768) (3,631)
Net increase / (decrease) in cash and cash equivalents 915 (756) (1,477)
Cash and cash equivalents at beginning of period 23,378 25,708 25,708
Effect of foreign exchange rate differences (165) (419) (853)
Cash and cash equivalents at end of period 24,128 24,533 23,378
Notes to the Interim financial statements
1 Accounting policies
General Information
These condensed consolidated interim financial statements of The Parkmead
Group plc and its subsidiaries (the "Group") were approved by the Board of
Directors on 25 March 2022. The Parkmead Group plc is the parent company of
the Group. Its shares are quoted on AIM, part of the London Stock Exchange.
The registered office is located at 20 Farringdon Street, 8th Floor, London,
England, EC4A 4AB.
The condensed consolidated interim financial statements for the period 1 July
2021 to 31 December 2021 are unaudited. In the opinion of the Directors, the
condensed consolidated interim financial statements for the period presents
fairly the financial position, and results from operations and cash flows for
the period in conformity with the generally accepted accounting principles
consistently applied. The condensed consolidated interim financial statements
incorporate unaudited comparative figures for the interim period 1 July 2020
to 31 December 2020 and the audited financial year ended 30 June 2021.
The financial information set out in this interim report does not constitute
statutory accounts as defined in Section 434 of the Companies Act 2006. The
Group's statutory accounts for the year ended 30 June 2021 which were prepared
under International Financial Reporting Standards ("IFRS") as adopted for use
in the UK were filed with the Registrar of Companies. The auditors reported on
those accounts and their report was unqualified and did not contain a
statement under either Section 498 (2) or Section 498 (3) of the Companies Act
2006 and did not include references to any matters to which the auditor drew
attention by way of emphasis.
Basis of preparation
The interim financial information in this report has been prepared under the
historical cost convention using accounting policies consistent with
International Financial Reporting Standards (IFRS) as adopted by the UK and
IFRS Interpretations Committee (IFRIC) interpretations. IFRS is subject to
amendment and interpretation by the International Accounting Standards Board
(IASB) and IFRIC and there is an ongoing process of review and endorsement by
the UK. The financial information has been prepared on the basis of UK-adopted
international accounting standards that the Directors expect to be adopted and
applicable as at 30 June 2021.
The Group has chosen not to adopt IAS 34 - Interim Financial Statements, in
preparing these financial statements.
The accounting policies applied in this report are the same as those applied
in the consolidated financial statements for the year ended 30 June 2021.
Going concern
The Directors have made an assessment of the Group's ability to continue as a
going concern. As at 31 December 2021 the Group had £57.4 million of net
assets of which £24.1 million is held in cash, of which £5.9 million is held
as restricted cash.
The Group's production in the Netherlands has been uninterrupted by COVID-19
and the Group and Company employees have utilised technology to work remotely
where required. The Group's current cash reserves are the principal source of
funding and are expected to more than exceed its estimated liabilities. Based
on these circumstances, the Directors have considered it appropriate to adopt
the going concern basis of accounting in preparing these interim results.
2 Exploration and evaluation expenses
Exploration and evaluation expenses includes impairment charges of £318,000
recorded in respect of exploration licences relinquished in the period (Six
months to 31 December 2020: £416,000, Twelve months to 30 June 2021:
£10,855,000).
3 Administrative expenses
Administrative expenses include an expense in respect of a non-cash
revaluation of share appreciation rights (SARs) totalling £238,000 (Six
months to 31 December 2020: £556,000 charge, Twelve months to 30 June 2021:
£52,000 charge). The SARs may be settled by cash or shares and are therefore
revalued with the movement in share price.
Administrative expenses also includes a non-cash share based payment charge of
£51,000 due to options which have been granted, lapsed or forfeited (Six
months to 31 December 2020: £1,055,000 credit, Twelve months to 30 June 2021:
£41,000 credit).
Administrative expenses also include a foreign exchange expense of £165,000
(Six months to 31 December 2020: £419,000 expense, Twelve months to 30 June
2021: £853,000 expense).
Notes to the Interim financial statements
4 Interest bearing loans
On 27 July 2017, The Parkmead Group plc entered into a credit facility with
Energy Management Associates Limited, whereby Parkmead agreed to lend up to
£2,900,000 to Energy Management Associates Limited.
The loan has a period of two years, with a fixed interest rate of 2.5 per
cent. Interest charged by Parkmead during the period amounted to £37,000 (Six
months to 31 December 2020: £37,000, Twelve months to 30 June 2021:
£73,000).
On 26 July 2021, The Parkmead Group plc entered into a 24-month extension of
the loan.
5 Loss per share
Loss per share attributable to equity holders of the Company arise as follows:
Six months to 31 December 2021 Six months to 31 December 2020 Twelve months to 30 June 2021
(unaudited) (unaudited)
(0.38) (1.42) (12.64)
Loss per 1.5p ordinary share (pence)
Basic
Diluted (0.38) (1.42) (12.64)
The calculations were based on the following information:
Six months to 31 December 2021 Six months to 31 December 2020 Twelve months to 30 June 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Loss attributable to ordinary shareholders (411) (1,552) (13,806)
Weighted average number of shares in issue
Basic weighted average number of shares 109,266,931 109,181,797 109,188,561
Dilutive potential ordinary shares
Share options 10,778,154 9,314,068 10,778,154
Basic loss per share is calculated by dividing the loss for the period by the
weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share is calculated by dividing the loss for the period
by the weighted average number of ordinary shares outstanding during the
period plus the weighted average number of ordinary shares that would be
issued on conversion of all the dilutive potential ordinary shares into
ordinary shares.
Diluted loss per share
Loss per share requires presentation of diluted loss per share when a company
could be called upon to issue shares that would decrease net profit or net
loss per share. When the Group makes a loss the outstanding share options are
anti-dilutive and so are not included in dilutive potential ordinary shares.
Notes to the Interim financial statements
6 Notes to the statement of cashflows
Reconciliation of operating (loss) / profit to net cash flow from
operations
Six months to 31 December 2021 Six months to 31 December 2020 Twelve months to 30 June 2021
£'000 £'000 £'000
Operating profit / (loss) 1,874 (1,056) (12,771)
Depreciation 341 328 611
Amortisation and exploration write-off 318 416 10,855
Loss on sale of property, plant and equipment - 35 388
Provision for share based payments 51 (1,055) (41)
Currency translation adjustments 165 419 853
Decreases / (increase) in receivables (359) 779 62
Decrease in stock 20 17 65
Increase/(decrease) in payables 64 116 (1,212)
Net cash flow from / (used in) operations 2,474 (1) (1,191)
7 Post balance sheet events
On 31 January 2022, the Group acquired the entire issued share capital of
Kempstone Hill Wind Energy Limited ("Kempstone Hill"), a company owning a
1.5MW onshore wind farm in Scotland (the "Acquisition") for £3.29 million.
The initial accounting for the business is incomplete at the time of the
approval of the interim results; therefore, no business combination disclosure
has been made.
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inside information as stipulated under the Market Abuse Regulations (EU No.
596/2014) which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.
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