REG - Primorus Investments - Half-year Report
18/08/2023 15:15
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RNS Number : 8240J Primorus Investments PLC 18 August 2023
Primorus Investments plc
("Primorus" or the "Company")
Interim Results for the six months ended 30 June 2023
Primorus Investments plc (AIM: PRIM) is pleased to announce its unaudited
interim results for the six months ended 30 June 2023.
Overview
The last six months have been a difficult time for the capital markets with
rising interest rates causing a general slowdown in the deployment of capital
being invested. With greater uncertainties, investors are more cautious
which has had a negative effect on the asset valuations for some of Primorus'
investments. Despite this, we remain confident in the longer-term prospects
of these investments.
Primorus has restructured the repayments due under its Convertible Loan Note
with Bushveld Minerals Limited. At the date of this announcement, £307,000
has been repaid and the balance continues to accrue interest at 10% per annum.
Alteration Earth PLC, a special purpose acquisition company in which Primorus
holds approximately 28% of the issued share capital, announced on 1 August
2023 its intention to acquire the entire issued share capital of Verdant Earth
Resources Limited.
In addition, Primorus has exited several non-core holdings to ensure the
Company remains in a healthy position to deliver the objectives set out within
its investing policy.
Financial Results
The operating loss for the six months to 30 June 2023 was £512,000 (30 June
2022: £847,00 loss). The net loss after tax was £512,000 (30 June 2022:
£847,000 loss).
Total assets, including cash, at 30 June 2023 amounted to £7.21 million (30
June 2022: £8.23 million).
Outlook
The Board remains confident that significant opportunities exist for the
Company going forward. The Board is continually seeking new investment
opportunities whilst also monitoring its existing investments.
The Board has screened several exciting opportunities within the period and
looks forward to making further investments in the near term.
We look forward to updating shareholders as and when our existing investments
mature, and new investments present themselves.
The Directors would like to take this opportunity to thank our shareholders
and consultants for their continued support.
Rupert Labrum Chairman
This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors. While management believes that these
forward-looking statements are reasonable as and when made, there can be no
assurance that future developments affecting the Company will be those that it
anticipates.
For further information please contact:
Primorus Investments plc
Matthew Beardmore, Chief Executive Officer +44 (0)20 8154 7907
Nominated Adviser
Cairn Financial Advisers LLP +44 (0) 20 7213 0880
James Caithie / Sandy Jamieson
Unaudited Condensed Company Statement of Comprehensive Income
for the six months ended 30 June 2023
6 months to 6 months to Year to
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
Notes £'000 £'000 £'000
Continuing operations
Revenue
Investment income 40 52 93
Realised (loss)/gain on disposal of financial investments (538) (300) (288)
Unrealised gain/(loss) on market value movement of financial investments 314 (500) (542)
Total (losses)/gains on financial investments (184) (748) (737)
Share based payments - (63) (121)
Operating costs (328) (36) (280)
Impairment of financial investments - - (375)
(Loss)/Profit before tax (512) (99) (1,513)
Taxation - - 29
(Loss)/Profit for the period attributable to equity shareholders of the (512) (847) (1,484)
company
- - -
Other comprehensive income
Total Comprehensive Income for the year attributable to equity shareholders of
the company
(512) (847) (1,484)
Profit/(Loss) per share:
Basic profit/(loss) per share (pence) 2 (0.366) (0.605) (1.061)
Diluted profit/(loss) per share (pence) 2 (0.366) (0.605) (1.061)
Unaudited Condensed Company Statement of Financial Position
as at 30 June 2023
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
Note s £'000 £'000 £'000
ASSETS
Non-current assets
Financial investments 5,279 7,742 5,444
5,279 7,742 5,444
Current assets
Investments 1,843 20 2,064
Trade and other receivables 49 39 34
Cash and cash equivalents 35 427 114
1,927 486 2,212
Total assets 7,206 8,228 7,656
EQUITY
Equity attributable to equity holders of the parent
Share capital 280 280 280
Share based payment reserve - 76 -
Retained earnings 6,754 7,769 7.266
Total equity 7,034 8,125 7.546
LIABILITIES
Current liabilities
Trade and other payables 172 70 110
Corporation tax - 33 -
Total liabilities 172 103 110
Total equity and liabilities 7,206 8,228 7,656
Unaudited Condensed Company Statement of Changes in Equity
for the six months ended 30 June 2023
Share based Total attributable
Share capital Share premium payment reserve Retained earnings to owners of parent
£'000 £'000 £'000 £'000 £'000
Unaudited
Balance at 31 December 2021 280 - 13 8,616 8,909
Loss for the period - - - (1,484) (1,484)
Total comprehensive income for the
period - - - (1,484) (1,484)
Share based payment expense - - 121 - 121
Reclassification upon cancellation of share options - - (134) 134 -
Balance at 31 December 2022 280 - - 7,266 7,546
Loss for the period - - - (512) (512)
Total comprehensive income for the period
- - - (512) (512)
Balance at 30 June 2023 280 - - 6,754 7,034
Unaudited Condensed Company Statement of Cash Flows
for the six months ended 30 June 2023
6 months to 6 months to Year
to
30-Jun-23 30-Jun-22 31-Dec-22
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash flows from operating activities
Operating Profit/(Loss) (512) (847) (1,484)
Adjustments for:
(Profit)/Loss on disposal of financial investments 538 300 288
Fair value movement on listed investments (314) 500 542
Impairment provision on unlisted investments - - 375
Decrease/(increase) in trade and other receivables (15) (34) -
Increase/(decrease) in trade and other payables 62 26 66
Foreign exchange loss/(gain) 166 (132) (112)
Interest income on investments (40) (52) (93)
Share based payment - 63 121
Income tax (credit) - - (29)
(115) (176) (326)
Income taxes paid - (4) (36)
Net cash used in operating activities (115) (180) (362)
Cash flows from investing activities
Disposal proceed from sale of financial investments
36 3,026 1,937
Payment for financial investments - (3,360) (2,402)
Net cash from/(used in) investing activities 36 (334) (465)
Net change in cash and cash equivalents (79) (514) (827)
Cash and cash equivalents at beginning of period 114 941 941
Cash and cash equivalents at end of period 35 427 114
Notes to the condensed unaudited interim financial statements
1. General Information
The condensed interim financial information for the 6 months to 30 June 2023
does not constitute statutory accounts for the purposes of Section 434 of the
Companies Act 2006 and has not been audited or reviewed. No statutory accounts
for the period have been delivered to the Registrar of Companies.
The condensed interim financial information in respect of the year ended 31
December 2022 has been produced using extracts from the statutory accounts for
that period. Consequently, this does not constitute the statutory information
(as defined in section 434 of the Companies Act 2006) for the year ended 31
December 2022, which was audited. The statutory accounts for this period have
been filed with the Registrar of Companies. The auditors' report was
unqualified and did not contain a statement under Sections 498 (2) or 498 (3)
of the Companies Act 2006.
The auditor's report was approved by the Directors on 15 June 2023 and is
available on the Company's website at www.primorusinvestments.com
(http://www.primorusinvestments.com/) .
2. Basis of preparation and accounting
The financial information has been prepared on the historical cost basis. The
Company's business activities, together with the factors likely to affect its
future development, performance and position are set out in the Chairman's
Statement. This statement also includes a summary of the Company's financial
position and its cash flows.
The financial statements have been prepared in accordance with the Companies
Act 2006 and UK-adopted international accounting standards (UK-adopted IAS)
and related interpretations. As permitted, this does not include IAS 34
"Interim Financial Reporting". This condensed set of financial statements
has been prepared applying the accounting policies that were applied in the
preparation of the Company's published financial statements for the year ended
31(st) December 2022. As these interim financial statements do not include
all of the information or disclosures required in the annual financial
statements they should be read in conjunction with the Company's 2022 annual
financial statements.
3. Earnings per share
Earnings per ordinary share has been calculated using the weighted average
number of shares in issue during the period. The weighted average number of
equity shares in issue was 139,830,968. IAS 33 requires presentation of
diluted EPS when a company could be called upon to issue shares that would
decrease earnings per share or increase the loss per share.
Six months Six months Year ended
to to
30 June 30 June 31 December
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
restated
(£'000) (£'000) (£'000)
Net profit/(loss) attributable to equity holders of (512) (847) (1,484)
the company
Weighted average number of shares 139,830,968 139,830,968 139,830,968
Weighted average number of diluted shares 139,830,968 139,830,968 139,830,968
Basic (loss)/profit per share (pence) (0.366) (0.605) (1.061)
Diluted (loss)/profit per share (pence) (0.366) (0.605) (1.061)
4. Events after the reporting date
There are no events after the end of the reporting date to disclose that have
not already been the subject of an announcement by the Company.
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