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Half Yearly Report

RNS Number : 2865P
Brady Exploration PLC
30 September 2013
 



Brady Exploration plc

2013 Interim Report

 

Unaudited interim results for the six months ended 30 June 2013

 

Brady Exploration plc ("Brady" or the "Company"), the AIM listed, natural resources focused investment company, announces its unaudited interim results for the six months ended 30 June 2013.

        

For further information, contact:

 

 

Brady Exploration plc

Alex Borrelli                                                                               +44 7747 020 600                                                                               

www.bradyexploration.com                                                                                                                         

                                                                                                                                                                                                                 

Allenby Capital Limited

(Nominated Adviser and Joint Broker)

Nick Naylor/Nick Athanas                                                      +44 20 3328 5656 

                                                                                                   

 

Peterhouse Corporate Finance

(Joint Broker)

Jon Levinson/Lucy Williams                                                  +44 20 7469 0935                 

                                                                                                                                                                                                                 

 

 

Chairman's Statement

 

I am pleased to report on the Company's results for the six months ended 30 June 2013.  

 

On 30 April 2013, the Company announced that it is at an advanced stage of acquiring the entire issued share capital of Energy Equity Resources (Norway) Limited ("EER") which has oil and gas interests in Nigeria and which the Directors believe is capable of generating significant value for the Company and its shareholders.  As announced on 15 August 2013, the Company was encouraged by the positive development at EER of its acquisition of a 9% participating interest (16.875% economic interest) in Oil Mining Lease 113 ("OML 113"), a major offshore Nigerian oil and gas asset, from Chevron for US$40 million, financed largely through a loan from First Bank of Nigeria plc, one of the largest banks in Nigeria. 

 

The consideration for the proposed acquisition of EER (the "Proposed Acquisition") is expected to be satisfied through the issue of new ordinary shares in the Company.  The Proposed Acquisition will also be conditional on the raising of additional equity finance.  The Proposed Acquisition would constitute a reverse takeover under the AIM Rules and the Company's shares are currently suspended from trading on AIM.  The shares will remain suspended pending publication of an admission document by the Company or an announcement being made that the Proposed Acquisition is no longer proceeding. The Directors are mindful that, under AIM Rule 41, if a company has been suspended from trading for six months the trading of the shares in that company on AIM will be cancelled.

 

Whilst the Proposed Acquisition is at an advanced stage, there can be no certainty that it will be concluded successfully.  The Directors entered into a cost agreement with EER whereby, in the event that the Proposed Acquisition did not proceed, in certain circumstances, costs incurred by Brady in relation to the Proposed Acquisition would be reimbursed by EER.  Such costs are therefore held as debtors within current assets on Brady's balance sheet.

 

The unaudited results for the six month period show a loss before taxation of £81,100, principally comprising administrative expenses, and a loss per share of 0.1p. Net assets at 30 June 2013 amounted to £154,800, while cash and cash equivalents at that date were £46,500.  

 

During the period under review, the Company has also disposed of the remainder of the investments held which were acquired in 2012. 

 

I look forward to updating shareholders on our progress with EER in the near future.

 

Alex Borrelli 

Chairman

 

 

 

 

 

Profit and loss account for the six months ended 30 June 2013

 

 



Unaudited

Six months

Unaudited

Six months

Audited

year



ended

ended

ended



30 June
30 June

31 December



2013

2012

2012



£'000

£'000

£'000






Loss on sale of shares


(16.6)

-

(5.9)

Loss on revaluation of shares

 

-

-

(13.3)



______

______

______



(16.6)

(81.7)

(19.2)






Administrative expenses


(63.5)

(81.7)

(218.8)



  _______

  _______

______

Operating loss


(80.1)

(81.7)

(238.0)






Other interest receivable and similar income


-

0.6

1.6

Interest payable and similar charges


(1.0)

-

(0.6)



  _______

  _______

______






Loss before taxation


(81.1)

(81.1)

(237.0)










 

Tax on loss on ordinary activities


-

-

-



_______

_______

_______

Loss on ordinary activities after





taxation


(81.1)

(81.1)

(237.0)



_______

_______

_______

Loss per share










Basic and fully diluted

3

(0.1)p

(0.1)p

(0.4)p






 

 

 

Balance sheet as at 30 June 2013

 


Unaudited
Unaudited
Audited


as at

as at

as at


30 June

30 June

31 December


2013

2012

2012


£'000

£'000

£'000

 

Fixed assets




Investments

-

-

-

 




Current assets




Debtors

229.8

10.3

190.4

Investments

-

-

46.6

Cash and cash equivalents

46.5

342.8

65.0

 

_______

_______

______

Total current assets

276.3

353.1

302.0









Creditors amounts falling due within one year








Other creditors and accruals

(61.5)

(21.5)

(74.8)

Loans and borrowings

(60.0)

-

-


_______

_______

_______

Total current liabilities

(121.5)

(21.5)

(74.8)






_______

_______

_______





Net assets

154.8

331.6

227.2


_______

_______

_______





Capital and reserves




Called up share capital

619.0

582.4

619.0

Share premium account

2,893.6

2,888.1

2,893.6

Share based payment reserve

18.0

40.3

9.3

Profit and loss account

(3,375.8)

(3,179.2)

(3,294.7)






_______

_______

_______





Shareholder funds

154.8

331.6

227.2


_______

_______

_______





 



Cash flow statement for the six months ended 30 June 2013

 



Unaudited

Unaudited

Audited



as at

as at

as at



30 June

30 June

    31 December



2013

2012

2012



£'000

£'000

£'000

Cash flows from operating activities










Operating loss


(80.1)

(81.7)

(238.0)



_______ 

_______ 

_______ 











(Increase)/decrease in debtors


(39.5)

3.3

(176.7)

(Decrease)/increase in creditors


(13.2)

(23.9)

29.4

Share based payment


8.7

-

9.3

Loss on disposal of shares


16.6

-

5.9

Loss on revaluation of shares


-

-

13.3



_______ 

_______ 

_______ 

 

Net cash outflow from operating activities


(107.5)

(102.3)

(356.8)     






Return on investment and servicing of finance





Interest received


-

0.6

1.6

Interest paid


(1.0)

-

(0.6)



_______ 

_______ 

_______ 






Net cash (outflow)/inflow from returns on investment and servicing of finance


(1.0)

0.6

1.0



_______ 

_______ 

_______






Capital expenditure and financial investments





Purchases of investments


-

-

(300.2)

Receipts from sale of investments


30.0

-

234.4



_______ 

_______ 

_______ 






Net cash inflow/(outflow) from capital expenditure and financial investments


30.0

-

(65.8)



_______ 

_______ 

_______

 

Financing activities

Issue of ordinary shares


-

5.7

47.8

Proceeds of loans


60.0

-

-

Loan stock repaid


-

(25.0)

(25.0)



_______ 

_______ 

_______






Net cash inflow/(outflow) from financing


60.0

(19.3)

22.8



________ 

________

_______

Net decrease in cash in the period


(18.5)

(121.0)

(398.8)



_______

_______

_______











Cash and cash equivalents at beginning of period


65.0

463.8

463.8



_______ 

_______

_______  






Cash and cash equivalents at end of period


46.5

342.8

65.0



_______ 

_______

_______ 






 

 



Notes to the unaudited interim accounts

For the six months ended 30 June 2013

 

1.       Basis of preparation

 

The financial statements included in the interim accounts have been prepared under the historical cost convention and in accordance with United Kingdom Generally Accepted Accounting Practice (UK GAAP). The comparative financial statements for the six months ended 30 June 2012 have also been re-produced for the purposes of these interim accounts under the historical cost convention and in accordance with UK GAAP.

 

The principal accounting policies used in preparing these interim accounts are those expected to apply in the Company's Financial Statements for the year ended 31 December 2013 and are unchanged from those disclosed in the Company's Annual Report for the year ended 31 December 2012.

 

The interim accounts were approved by the Board of Brady on 30 September 2013. The interim financial information for the six months ended 30 June 2013 does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 and is unaudited. The comparatives for the year ended 31 December 2012 are not the Company's full statutory accounts for that period. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies.  The auditors' report on those accounts was unqualified, and did not contain statements under sections 498(2) or (3) of the Companies Act 2006. Copies of the accounts for the year ended 31 December 2012 are available on the Company's website  (www.bradyexploration.com).

 

Except as noted above, the following principal accounting policies have been applied consistently in the preparation of these interim accounts:

 

2.       Accounting policies

 

The principal accounting policies are:

 

Basis of preparation

 

At 30 June 2013 Brady Exploration plc had one wholly owned subsidiary, Brady Exploration (Operations) Limited. Since incorporation, Brady Exploration (Operations) Limited has not commenced operations and has no material assets or liabilities. As such, no consolidated financial statements have been prepared on the basis that in accordance with section 405 of the Companies Act 2006 its inclusion is not material for the purpose of giving a true and fair view.

 

The comparative figures for the six months ended 30 June 2012 have been presented on the same basis as the interim accounts for the six months ended 30 June 2013.

 

Going concern

 

The interim financial statements have been prepared on the going concern basis as, in the opinion of the Directors, at the time of approving the interim financial statements, there is a reasonable expectation that the Company will continue in operational existence for the foreseeable future. The interim financial statements do not include any adjustments that would result from the going concern basis of preparation being inappropriate.

 

               Financial Instruments

 

Financial instruments are measured initially and subsequently at cost. Finance costs are charged to the profit and loss account over the term of the debt so that the amount charged is at the constant rate on the carrying amount of the debt. Finance costs include issue costs, which are initially recognised as a reduction in the proceeds of the associated capital instrument. Loan stock interest accruals are rolled up and included in the loan stock balance.

 

 

 

 

 



Notes to the interim accounts

For the six months ended 30 June 2013

 

2.       Accounting policies (cont'd)

 

Share-based payments

 

Where share options are awarded to employees, the fair value of the options at the date of the grant is charged to the profit and loss account over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. 

 

Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to the profit and loss account over the remaining vesting period.

 

Where equity instruments are granted to persons other than employees, the profit and loss account is charged with the fair value of goods and services received.

 

Where warrants are issued for services of Directors and employees the accounting treatment is consistent with the above.

 

 

 

 

 

3.       Loss per share

 



Unaudited

Unaudited

Audited



Six months

 Six months

year



ended

ended

ended



30 June

30 June

31 December



2013

2012

2012



£'000

£'000

£'000






Loss used for calculation of basic and diluted EPS


(81.1)

(81.1)

(237.0)



_______

_______

_______






Shares used for calculation of basic and diluted EPS


61,905,803

58,112,637

58,839,864



_______

_______

_______






Loss per share





Basic and fully diluted


(0.1)p

(0.1)p

(0.4)p

 

 

4.       Distribution of Interim Report and Change of Registered Office Address

 

A copy of the Interim Report will be available shortly on the Company's website, www.bradyexploration.com, in accordance with Rule 26 of the AIM Rules for Companies and copies will be available from the Company's registered office. With immediate effect the registered office address has been changed to 40 Dukes Avenue, London, W4 2AE.

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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