REG - Parkmead Group (The) - Preliminary Results Statement 2021
26/11/2021 07:00
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RNS Number : 6638T Parkmead Group (The) PLC 26 November 2021
26 November 2021
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Preliminary Results for the year ended 30 June 2021
Parkmead, the UK and Netherlands focused independent energy group, is pleased
to report its preliminary results for the year ended 30 June 2021.
HIGHLIGHTS
Revenue momentum from increased gas prices; strong financial position
· Revenue for the period was £3.6 million (2020: £4.1 million),
with a 33% increase in the second half compared to the first half reflecting
the strong recovery in gas prices from the COVID-19 pandemic lows
· Gross profit increased by 39% to £1.8 million (2020: £1.3
million), showing the robustness of Parkmead's gas assets and continued
improving efficiency
· Gross margin increased from 31% to 49%
· Well capitalised, with cash balances of £23.4 million (US$31.6
million) as at 30 June 2021
· Parkmead has seen the benefit of the strong climb in energy prices
and are 100% unhedged. From lows of around €5.0/MWh in July 2020 prices have
rebounded strongly, with Dutch TTF prices reaching around €75.0/MWh in
November 2021
· Excellent revenue generation since period end, €3.0 million of
revenue generated in the first four months of FY 2022, 355% higher than the
equivalent four months last year
· Parkmead's Netherlands assets remain very low cost to operate,
and were uninterrupted by lockdown restrictions introduced by the Dutch
Government
· Non-cash impairment charge recorded of £10.9 million relating
primarily to relinquishment of the Platypus licence at the pre-development
stage
· Parkmead maintains strict financial discipline with very low
operating costs
Acquisition of Netherlands gas royalty and potential drilling campaign in 2022
· Acquisition of Netherlands gas royalty completed in July 2021 for
a consideration of €565k, satisfied through a part cash payment and part of
the remaining 2021 net revenue from the Geesbrug gas field
· The revenue associated with this royalty for just the year to 30
June 2020 was €325k, delivering a relatively short payback
· Through this acquisition, Parkmead's effective financial interest
doubled from 7.5% to 15% in the Grolloo, Geesbrug and Brakel gas fields
· Gross production at the Group's Netherlands assets for the
financial year averaged 30.3 million cubic feet per day ("MMscfd"), which
equates to approximately 5,212 barrels of oil equivalent per day ("boepd")
· Low-cost onshore gas portfolio in the Netherlands produces from
four separate gas fields with an average field operating cost of just US$9.9
per barrel of oil equivalent, generating strong cash flows
· Average netback per barrel of oil equivalent for the last two
months from the Netherlands (September and October 2021) of €48.3
· Partnership analysing a potential two-well drilling campaign next
year from the Diever site, targeting LDS-A and LDS-B
· Drilling would target 22.7 Bcf of gross gas resources, on a P50
basis, in the prolific Rotliegendes reservoirs found on the licence (CoS of
between 40 and 49%)
· Papekop gas development has successfully progressed through the
concept select gate; planned gas development targeting 35.6 Bcf of gross
reserves with oil upside
Renewables Growth Strategy
· Two successful sales of separate areas of non-core land from UK
renewable energy portfolio achieved an aggregate cash consideration of £4.0
million, representing a substantial 82% of the original Pitreadie net
consideration
· Sites with the largest renewable energy potential have been
retained and high-graded
· Technical studies are already underway on a specific location
within the Group's onshore land portfolio for the potential development of a
large wind farm
· This area of land lies adjacent to the Mid Hill Wind Farm which
encompasses 33 Siemens wind turbines with a generating capacity of around 75
megawatts
· Other renewable opportunities exist across the Group's asset
portfolio
· Considering further acquisition opportunities to expand the
Group's renewables portfolio
UK North Sea licence refocus
· New project secured through successful award of Fynn licence in
the Central North Sea (Parkmead 50% and operator), containing two undeveloped
discoveries and a prospect in the Piper Formation
· Fynn Beauly is a very large oil discovery extending across
multiple blocks and is estimated to contain oil-in-place of between 602 and
1,343 million barrels, with our licence containing a section of the discovery
to the south holding oil-in-place of between 77 and 202 million barrels
· Fynn Andrew is wholly contained on the licence and holds 50
million barrels of oil-in-place on a P50 basis
· Addition of these blocks adds 34.4 million barrels of 2C
resources to Parkmead
· 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 million barrels of oil
equivalent ("MMBoe")
· Relinquishment of Playtpus licence by Parkmead and the remaining
joint venture partner following the very late withdrawal of the majority
partner and operator
· Parkmead continues to assess draft commercial offers received for
the potential tie-back of the Greater Perth Area ("GPA") project, which has
the potential to deliver 75-130 MMBoe on a P50 basis
· For the Perth field development alone, every $10/bbl increase in
the oil price adds approximately £130 million to the P50 post-tax NPV of the
project
Substantial gas and oil reserves and resources
· 2P reserves of 45.5 million barrels of oil equivalent ("MMBoe")
as at 30 September 2021 (45.7 MMBoe as at 30 September 2020)
Evaluating further acquisitions and opportunities
· Nine acquisitions, at both asset and corporate level, have been
completed to date
· Parkmead actively evaluating further acquisition opportunities in
renewables, gas and oil in line with its strategy to build a balanced
portfolio of assets
Parkmead's Executive Chairman, Tom Cross, commented:
"I am pleased to report an important year of progress for Parkmead, despite
the year being significantly disrupted by the COVID-19 pandemic. The
substantial rise in gas prices post year end is also creating strong momentum
for the Group. We intend to capitalise on this by further balancing the
Group's operations to include other energies.
The innovative royalty deal we completed in July enhances our gas interests in
the Netherlands and adds significant value to Parkmead. This growth step adds
to our portfolio of high-quality energy projects delivered through
acquisitions, organic growth and active asset management.
The successful divestment of non-core land areas is a testament to the team's
ability to ensure value is generated from its assets. Parkmead has already
identified a number of possible locations for renewable energy opportunities
within the Group's high-graded onshore acreage.
Our team is carefully evaluating further potential gas, oil and renewable
energy acquisitions that would complement 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."
For enquiries please contact:
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
CHAIRMAN'S STATEMENT
2021 has been an important year for Parkmead as we recover from the COVID-19
pandemic. Parkmead's experienced and resourceful team ensured that the Group
was able to quickly transition to remote working to cope with the COVID-19
restrictions, where necessary, and demonstrated commitment and innovation to
developing new work programmes to support the future growth of the business.
This, combined with a carefully managed business strategy, ensured that the
Group was resilient during the historical lows in commodity prices and
difficult market conditions during the year. The Group's gas production also
remained uninterrupted throughout national and local COVID-19 restrictions
providing a strong position that meant we were able to capitalise on these
conditions to make a producing gas acquisition.
We also continued to make a number of important steps in progressing our
strategy to balance the Group's operations through initiating new work
programmes, refining development plans and lowering our operational costs.
Parkmead is now a more resilient company with a very positive outlook for the
years ahead.
Financial Performance
The Group's revenue for the year to 30 June 2021 was £3.6m (2020: £4.1m),
generating a 39% increase in gross profit to £1.8m (2020: £1.3m). The gross
margin improved from 31% to 49% showing the high-quality nature of Parkmead's
onshore production in the Netherlands, especially given the economic
environment during the period.
The reduced revenue in the year reflected the substantially lower commodity
prices during 2020 resulting from the pandemic. Since the lows experienced in
the last financial year, we have seen a very encouraging recovery in prices,
particularly in Dutch gas. Revenue in the second half of the year increased by
33% compared to the first half as a result of this price recovery. This
strength in gas prices has continued since the financial year end, with prices
more than tripling during the period from June 2021 to October 2021.
As a result, Parkmead has recorded €3 million of revenue during the first
four months of the current financial year alone, 355% higher than the
equivalent four months last year. Parkmead continues to remain unhedged for
100% of our gas production, thus giving exposure to these higher Dutch gas
prices for the remainder of the year.
Parkmead maintains a strong balance sheet with total assets of £78.7m (2020:
£89.8m) as at 30 June 2021. Cash and cash equivalents at year-end were
£23.4m (2020: £25.7m) and interest bearing loans receivable were £2.9m
(2020: £2.9m). The Group's net asset value was £57.7m (2020: £71.3m). We
reduced debt within the Group by 86% to £0.5m on a pre-IFRS 16 basis at 30
June 2021 (2020: £3.6m). This prudent approach is an important part of our
financial discipline.
Exploration and evaluation expenses were £11.1m (2020: £1.6m), which
includes a non-cash impairment of £10.9 million related to the relinquishment
of Licences P.2296, P.2362 and P.1242 (Platypus) in the UK North Sea.
Administrative expenses were £3.0m (2020: £0.3m). Underlying staff costs
stayed almost flat at £2.0 million (2020: £1.9m).
In June 2021, Parkmead completed an extensive tendering process with the view
of appointing a new auditor following the ten year tenure from Nexia Smith
& Williamson. We are pleased to announce that Jeffreys Henry assumed the
role of auditor in August 2021. Parkmead would like to express our sincere
thanks to Nexia Smith & Williamson for their work.
Netherlands
Our Netherlands production remained some of the most efficient and profitable,
on a per-barrel basis, across Europe in 2021. Production across the fields
remained uninterrupted throughout national and local COVID-19 lockdowns.
Gas production across the four fields has remained strong, with average gross
production of 30.3MMscfd, approximately 5,212boepd. The operating cost of the
combined fields is very low at just $9.9 per barrel of oil equivalent. These
high-quality assets, combined with efficient operational cost control
underpins the strong gross profit margin 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. Parkmead and our JV
partners are also pleased to be making material progress on the Leemdijk and
De Bree prospects (renamed LDS-A and LDS-B respectively), also on the Drenthe
VI licence. A two-well drilling campaign from the Diever well site, targeting
both structures, is scheduled for late 2022/early 2023, and if successful,
offers a fast-track tie-in opportunity.
Our Drenthe V licence includes the Geesbrug gas field, which continues to see
steady production at material rates. During the reporting period, seismic
reprocessing has been ongoing to identify infill opportunities on this
licence.
Finally, we are pleased to report that our Papekop development has
successfully progressed through the concept select gate and we will now carry
out some further engineering studies and continue the permitting process.
Gas Royalty Acquisition
In July 2021 Parkmead completed the acquisition of a historic 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.
This royalty was previously held by NAM, a Shell and ExxonMobil joint venture.
The consideration for this acquisition was €565k, satisfied through a part
cash payment of approximately €150k and the remaining 2021 net revenue from
Parkmead's working interest in the Geesbrug gas field. The acquisition removed
the royalty associated with the existing producing gas wells. The revenue
associated with this royalty for the year to 30 June 2020 was €325k, meaning
a relatively short payback.
Through this important acquisition, Parkmead has increased its net gas
production from these wells, doubling the Group's effective financial interest
from 7.5% to 15% (in line with Parkmead's working interest in the licences).
This step added significant core value to Parkmead and will extend the
producing life of these fields through greater partner alignment.
UK Licence Refocus
The Company has now finalised the award of Licence P.2516 (Parkmead 50% and
operator) containing two undeveloped oil discoveries, Fynn Beauly and Fynn
Andrew, as well as an oil prospect in the Piper Formation. The licence covers
Blocks 14/20g & 15/16g situated in the Central North Sea and is adjacent
to Parkmead's GPA project.
Fynn Beauly is a very large oil discovery which extends across a number of
blocks. The entire discovery is estimated to contain oil-in-place of between
602 and 1,343 million barrels, with Licence P.2516 containing a section of the
discovery to the south holding oil-in-place of between 77 and 202 million
barrels.
Fynn Andrew is wholly contained on the licence and holds 50 million barrels of
oil-in-place on a P50 basis. The addition of these blocks to Parkmead's
portfolio adds 34.4 million barrels of 2C resources to the Group. Parkmead's
partner on the licence is Orcadian Energy.
An extension to the Skerryvore licence, P.2400, has been successfully awarded
to Parkmead and its joint venture partners. The joint venture has made
significant progress over the last year having completed reprocessing of the
3D seismic, allowing final rock physics and inversion scopes to begin.
Follow-on technical studies are planned before the end of the year, ahead of a
drilling decision 2022.
The acreage around Skerryvore is currently seeing activity on several fronts,
with Harbour Energy drilling the adjacent Talbot opportunity and Shell looking
to drill the Edinburgh prospect. Development activity is also taking place in
close proximity to Skerryvore at Tommeliten A (ConocoPhillips) and Affleck
(NEO Energy).
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. Joint
venture partners in the licence are Serica Energy (20%), CalEnergy Resources
(20%) and Zennor Petroleum (30%).
Following the unexpected, late withdrawal of Dana Petroleum from the Platypus
licence, Parkmead agreed in principle to become the temporary acting operator
and entered into commercial discussions with the Platypus supply chain to
formulate a revised commercial project that could be put to the regulatory
authorities to seek extension of the licence. A considered and improved
commercial plan was put to the regulator well ahead of the formal end of the
licence, however, despite intensive and prolonged discussions it was not
possible to arrive at suitable terms for an extension and, although a new
licence could be sought in due course, it was ultimately decided by the
partners not to pursue the matter further at this time. So Parkmead has
prudently recognised a full impairment charge. The Board of Parkmead is now
able to re-focus the Group's time and resources, that it would otherwise have
spent on Platypus on projects, where we can see a clear pathway to delivering
enhanced shareholder value.
Elsewhere in the UK, we have secured an extension to the Initial Term A of
West of Shetland licence P.2406, which contains the large Davaar Paleocene
prospect. We have begun interpretation of the newly reprocessed seismic data
ahead of further work next year.
The Greater Perth Area (GPA) development continues to form a part of our
balanced portfolio of assets. This year has seen the completion of
transportation studies for our base case development concept. The studies 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 infrastructure to the onshore facilities. Parkmead continues to engage
with leading, internationally-renowned supply chain companies in order to
optimise the commercial solution.
Parkmead continues to assess 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 oil price adds approximately £130 million to the 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 and it is very
important that the UK continues to develop its 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.
Onshore Renewables
In March 2021, Parkmead completed the successful sales of two separate areas
of non-core land from its UK renewable energy portfolio for an aggregate
consideration of £4.0 million. This divestment follows detailed analysis
carried out across the Group's onshore land acreage. Sites with the largest
renewable energy potential have been retained and high-graded, with a strategy
to divest non-core land. These sales are in line with that strategy.
A number of renewable energy opportunities exist within our onshore portfolio
and we continue to advance these through Parkmead's in-house technical and
commercial expertise, alongside regional experts. Significant wind energy
potential lies at a location within our portfolio 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 already
underway at this site.
Outlook
Our focus at Parkmead is to continue building a robust and balanced European
energy business with both organic and inorganic growth opportunities. We have
an excellent and determined team of energy experts who view the
rapidly-changing energy landscape as an opportunity, not as a threat. Our team
is looking at several new opportunities in gas and renewable energy.
We maintain a very healthy appetite for transactions which could provide
incremental revenue, cash flow and long-term value for shareholders.
Our proactive approach to investment in cleaner energies stands us in
excellent shape to continue building a balanced portfolio of assets within the
Company.
We continue to remain unhedged for 100% of our gas production, thus giving
exposure to the higher Dutch gas prices for the remainder of the year.
We have started the 2022 financial year on a sound footing with record high
gas prices and work ongoing across a number of projects which should pave the
way for a successful year ahead.
Tom Cross
Executive Chairman
25 November 2021
The information contained within this announcement is deemed to constitute
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.
Notes:
1. Tim Coxe, Parkmead Group's Managing Director, North Sea, holds a
First-Class Master's Degree in Engineering and over 30 years of experience in
the oil and gas industry. Tim is accountable for the company's HSE,
Subsurface, Drilling, Production Operations and Development Project functions
and has approved the technical information contained in this announcement.
Reserves and contingent resource estimates have been produced by Parkmead's
subsurface team and are stated as of 30 September 2021. 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.
Group statement of profit or loss
for the year ended 30 June 2021
Jun-21 Jun-20
Continuing operations Notes £'000 £'000
Revenue 3,608 4,080
Cost of sales (1,835) (2,806)
Gross profit 1,773 1,274
Exploration and evaluation expenses 4 (11,116) (1,556)
Gain on bargain purchase - 362
Loss on sale of assets (388) -
Administrative expenses 2 (3,040) (257)
Operating loss (12,771) (177)
Finance income 148 199
Finance costs (819) (814)
Loss before taxation (13,442) (792)
Taxation (364) 310
Loss for the period attributable to the equity holders of the Parent (13,806) (482)
(Loss) / earnings per share (pence)
Basic 3 (12.64) (0.45)
Diluted 3 (12.64) (0.45)
Adjusted EBITDA (958) 1,574
Depreciation (611) (764)
Amortisation and exploration write-off (10,855) (1,298)
Loss on sale of property, plant and equipment (388) -
Gain on bargain purchase - 362
Provision for share based payments 41 (51)
Operating Loss (12,771) (177)
Group statement of profit or loss and other comprehensive income
for the year ended 30 June 2021
2021 2020
£'000 £'000
(Loss) / profit for the year (13,806) (482)
Other comprehensive income
Income tax relating to components of other comprehensive income - -
Other comprehensive income for the year, net of tax - -
Total comprehensive (loss) / income for the year attributable to the equity (13,806) (482)
holders of the Parent
Group statement of financial position
as at 30 June 2021
2021 2020
£'000 £'000
Non-current assets
Property, plant and equipment: development & production 14,646 11,979
Property, plant and equipment: other 4,654 9,411
Goodwill 2,174 2,174
Exploration and evaluation assets 29,497 36,089
Investment in subsidiaries and joint ventures - -
Interest bearing loans 2,900 2,900
Deferred tax assets - 3
Total non-current assets 53,871 62,556
Current assets
Trade and other receivables 1,352 1,414
Inventory 66 131
Cash and cash equivalents 23,378 25,708
Total current assets 24,796 27,253
Total assets 78,667 89,809
Current liabilities
Trade and other payables (3,490) (4,437)
Current tax liabilities (241) -
Total current liabilities (3,731) (4,437)
Non-current liabilities
Trade and other payables (1,011) (1,372)
Loans (500) (3,600)
Deferred tax liabilities (1,339) (1,404)
Decommissioning provisions (14,365) (7,650)
Total non-current liabilities (17,215) (14,026)
Total liabilities (20,946) (18,463)
Net assets 57,721 71,346
Equity attributable to equity holders
Called up share capital 19,688 19,678
Share premium 88,017 87,805
Merger reserve 3,376 3,376
Retained deficit (53,360) (39,513)
Total Equity 57,721 71,346
Group statement of changes in equity
for the year ended 30 June 2021
Share capital Share premium Merger reserve Retained deficit Total
£'000 £'000 £'000 £'000 £'000
At 30 June 2019 19,533 87,805 - (39,082) 68,256
Loss for the year - - - (482) (482)
Total comprehensive loss for the year - - - (482) (482)
Share capital issued 145 - 3,376 - 3,521
Share-based payments - - - 51 51
At 30 June 2020 19,678 87,805 3,376 (39,513) 71,346
Loss for the year - - - (13,806) (13,806)
Total comprehensive loss for the year - - - (13,806) (13,806)
Share capital issued 10 212 - - 222
Share-based payments - - - (41) (41)
At 30 June 2021 19,688 88,017 3,376 (53,360) 57,721
Group statement of cashflows
for the year ended 30 June 2021
2021 2020
Notes £'000 £'000
Cashflows from operating activities
Continuing activities 4 (1,191) 882
Taxation paid (124) (1,883)
Net cash (used in) / generated by operating activities (1,315) (1,001)
Cash flow from investing activities
Interest received 148 163
Acquisition of exploration and evaluation assets (369) (3,335)
Disposal of property, plant and equipment 4,000 -
Acquisition of property, plant and equipment: development and production (165) (34)
Acquisition of property, plant and equipment: other (114) (416)
Decommissioning expenditure (31) -
Net cash from Pitreadie - 24
Net cash generated by / (used in) investing activities 3,469 (3,598)
Cash flow from financing activities
Interest paid (110) (113)
Lease payments (421) (410)
Repayment from loans and borrowings (3,100) -
Net cash (used in) / generated by financing activities (3,631) (523)
Net (decrease) / increase in cash and cash equivalents (1,477) (5,122)
Cash and cash equivalents at beginning of year 25,708 30,666
Effect of foreign exchange rate differences (853) 164
Cash and cash equivalents at end of year 23,378 25,708
Notes to the financial information for the year ended 30 June 2021
1. Basis of preparation of the financial information
The financial information set out in this announcement does not comprise the
Group and Company's statutory accounts for the years ended 30 June 2021 or 30
June 2020.
The financial information has been extracted from the audited statutory
accounts for the years ended 30 June 2021 and 30 June 2020. The auditors
reported on those accounts; their reports were 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.
The statutory accounts for the year ended 30 June 2020 have been delivered to
the Registrar of Companies. The
statutory accounts for the year ended 30 June 2021 will be delivered to the
Registrar of Companies following the
Company's Annual General Meeting.
The accounting policies are consistent with those applied in the preparation
of the interim results for the period ended 31 December 2020 and the statutory
accounts for the year ended 30 June 2020, and have been prepared in accordance
with International Financial Reporting Standards ("IFRS") as adopted by the
United Kingdom.
2. Administrative expenses
Administrative expenses include a charge in respect of a non-cash revaluation
of share appreciation rights (SARs) and share based payments totalling
£56,000 (2020: £1,364,000 credit). The SARs may be settled by cash and are
therefore revalued with the movement in share price. The valuation was
impacted by the increase in share price between 30 June 2020 and 30 June 2021.
3. Profit / (loss) per share
Profit/(loss) per share attributable to equity holders of the Company arise
from continuing and discontinued operations as follows:
2021 2020
(Loss) / profit per 1.5p ordinary share from continuing operations (pence)
Basic (12.64)p (0.45)p
Diluted (12.64)p (0.45)p
The calculations were based on the following information:
2021 2020
£'000 £'000
Loss attributable to ordinary shareholders
Continuing operations (13,806) (482)
Total (13,806) (482)
Weighted average number of shares in issue
Basic weighted average number of shares 109,188,561 106,282,006
Dilutive potential ordinary shares
Share options - -
Profit/(loss) per share is calculated by dividing the profit/(loss) for the
year by the weighted average number of ordinary shares outstanding during the
year.
Diluted profit/(loss) per share
Profit/(loss) per share requires presentation of diluted profit/(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 therefore anti-dilutive and so are not included in dilutive
potential ordinary shares.
4. Notes to the statement of cashflows
Reconciliation of operating (loss) / profit to net cash flow from continuing
operations
2021 2020
£'000 £'000
Operating profit / (loss) (12,771) (177)
Depreciation 611 764
Amortisation and exploration write-off 10,855 1,298
Loss on sale of property, plant and equipment 388 -
Gain on bargain purchase - (362)
Provision for share based payments (41) 51
Currency translation adjustments 853 (164)
Decreases / (increase) in receivables 62 (683)
Decrease in stock 65 230
Increase/(decrease) in payables (1,213) (75)
(1,191) 882
5. Approval of this preliminary announcement
This announcement was approved by the Board of Directors on 25 November 2021.
6. Publication of annual report and accounts
Copies of the Annual Report and Accounts will be made available shortly on the
Company's website www.parkmeadgroup.com, along with a copy of this
announcement.
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. END FR LELLLFFLBFBVRecent news on Parkmead
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