TIDMPMG
RNS Number : 7592T
Parkmead Group (The) PLC
17 November 2023
17 November 2023
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Preliminary Results for the year ended 30 June 2023
Parkmead, the independent energy group focused on growth through
gas, oil and renewable energy projects, is pleased to report its
preliminary results for the year ended 30 June 2023.
HIGHLIGHTS
Increased revenues and cash flow
-- Revenues increased by 22% to GBP14.77 million (2022: GBP12.13 million)
-- Gross profit increased to GBP12.5 million (2022: GBP10.8 million)
-- Gross margin remained strong at 85% demonstrating very low operating costs
-- Net Cashflow from Operations rose 44% to GBP6.5 million (2022: GBP4.5 million)
-- Operating profit before exploration write off and impairments
of GBP10.6 million (2022: GBP6.9 million) or 9.7p on a per share
basis
-- Taxation of GBP4.7 million and Dutch windfall taxation of GBP2.4 million
-- Cash and cash equivalents as at 30 June 2023 of GBP11.6
million (2022: GBP23.3 million) after decommissioning expenditure
in the year of GBP17.0 million
-- Non-cash impairment charges recorded of GBP46 million
relating primarily to relinquishment of the Core Perth and Athena
Licences on the UKCS
-- Parkmead's balance sheet remains strong with total assets as
at 30 June 2023 of GBP28.6 million
Netherlands E&P Business - drilling success and excellent
operating margin
-- Low-cost onshore gas portfolio in the Netherlands produces
from four separate gas fields, with a low average field operating
costs generating strong cash flows
-- Average netback for the year from the Netherlands of approximately $150 per boe
-- Average gross production for the period across the Group's
Netherlands assets was 17.5 million cubic feet per day ("MMscfd"),
approximately 3,015 barrels of oil equivalent per day ("boepd")
-- The LDS drilling campaign was completed safely, on time and under budget in early 2023
-- LDS-01 successfully encountered commercial gas volumes which
were tied into production within just a few months. A positive
outcome, with higher gas & condensate production than expected,
led to the well being temporarily shut-in for increased processing
capacity work to be carried out
-- Excellent progress on the potential Papekop development,
targeting gross reserves of 35.6 bcf, with first production planned
for 2027
-- Major review of the exploration potential on the Drenthe VI
licence has identified multiple new prospects
UK Skerryvore exploration well on track
-- Parkmead is Operator with a significant 50% interest in the project
-- Planned well will target the main stacked exploration
prospects, at Mey and Chalk level (Tor Dip and Tor Strat), with
Pmean STOIIP of approximately 43mmbbls, 98mmbls and 566mmbbls
respectively
-- The sub-surface team believe there is a high geological
chance of success at the Mey of c.47% as this area is surrounded by
fields producing from the same target interval
-- Close to early-life infrastructure, giving potential for accelerated development
UK Renewable Energy Portfolio
-- Kempstone Hill delivered record revenue during the period of GBP0.7millon
-- Production of electricity during the period was 2,446 MWh
-- Work is progressing on studies for a wind farm at Pitreadie
as part of a major proposal to create a 90-100MW wind farm joint
venture
-- Through the relationship with Energy Management Associates,
an area of land suitable for a large solar farm has been identified
with Parkmead executing an option agreement over the proposed
site
-- The Group is also actively pursuing wind and solar
acquisitions which would be immediately cash-flow enhancing for the
Group
Well positioned for further acquisitions and opportunities
-- Parkmead continues to pursue acquisitions in the gas, oil and
renewable energy sectors that will build upon its balanced energy
portfolio
Parkmead's Executive Chairman, Tom Cross, commented:
"I am pleased to report Parkmead's results for the financial
year to 30 June 2023. We have achieved increased revenues and cash
flow, whilst ensuring the Company is forging ahead with new growth
opportunities.
The Netherlands assets have continued to deliver consistent and
efficient gas production, with exciting additional prospectivity
identified across our Dutch portfolio. In particular, the maturing
exploration targets on the Drenthe VI licence confirms the high
quality of these assets. The Papekop development has the potential
to add significant revenues to Parkmead from 2027 onwards.
Parkmead has achieved its first full year of revenue from the
Kempstone Hill Wind Farm. This asset complements the Group's
low-cost onshore gas operations in the Netherlands and strengthens
our balance sheet position. We will build upon the success of these
two business areas, of natural gas and renewables, through organic
and inorganic growth as the Company transitions to being a clean
energy producer.
In addition, we remain committed to maximizing the opportunities
within the Company's oil & gas portfolio on our pathway towards
energy transition. We are excited by the progress being made on
Skerryvore towards drilling. There is major upside potential, given
Parkmead's high equity position in a number of its prospects and
the sizeable tax losses that could be deployed on the Company's
projects in due course.
Parkmead continues to maintain a strong balance sheet which aids
the pursuit of value-adding acquisitions. Our team is working hard
on the near-term opportunities that lie within our existing
portfolio, and is focused on the substantial value-creation that
could be achieved for shareholders."
For enquiries please contact:
The Parkmead Group plc +44 (0) 1224 622200
Tom Cross (Executive Chairman)
Andrew Smith (Executive Director - Business
Development)
Cavendish Capital Markets Limited +44 (0) 20 7220 0500
Marc Milmo / Seamus Fricker - Corporate Finance
Andrew Burdis / Barney Hayward - ECM
CHAIRMAN'S STATEMENT
The year to 30 June 2023 has been a challenging one for the
energy industry. The UK sector has been facing major uncertainties
with respect to government future direction on UKCS oil & gas,
and the significant impact of new windfall taxes. The Parkmead team
has reviewed its strategic direction, recognising that the global
energy landscape is changing. Parkmead understands the need to
reduce the industry's carbon footprint and seeks to address the
requirement for clean energy. We recognise that profitable business
opportunities that arise in the ongoing energy transition away from
oil can be used to further investment in clean energy technologies.
The Company's portfolio provides a low risk and attractive long
term steady cashflow which will underpin the future of Parkmead, as
well as provide a platform to monetise the relatively higher risk,
but valuable oil & gas prospects.
Parkmead has continued to grow its clean energy asset base,
increasing revenue by 22% in the period to GBP14.77 million. Our
Netherlands gas fields have performed very well and the full
integration of our acquisition of Kempstone Hill Wind Farm
complements the Group by providing another revenue stream.
Our Company now looks forward to an exciting next phase of
growth as we build on these two key business areas of renewable
energy and natural gas production.
Netherlands E&P Business
Our Netherlands production remains some of the most efficient
and profitable in Europe, on a per-barrel basis. Production across
the fields continues to perform well, and gross production averaged
17.5MMscfd, approximately 3,015 barrels of oil equivalent per day
(boepd), during the period.
The operating costs of the combined fields is low, and these
high-quality assets underpin our Group's outstanding gross profit
margin of 85%. This allows the Company to reinvest in further
opportunities, particularly given the prospectivity within the
Netherlands portfolio. Onshore gas production is considered to play
an important role in energy transition policies and we continue to
progress further projects on our licences, in line with government
strategy.
Excellent progress is being made towards a Papekop field
development. The permitting process is underway, with commercial
discussions progressing around transportation and offtake. A
potential development of the Papekop field would target 35.6 Bcf of
gross gas reserves with first production targeted for as early as
2027.
Seismic reprocessing on the highly productive Drenthe VI
concession has identified a number of exciting new leads and
prospects. Work to mature this portfolio of opportunities has
continued throughout 2023, with plans to firm up the JV's
exploration strategy for 2024.
The drilling campaign in Q4 2022 resulted in LDS-01 encountering
commercial volumes of gas and the well was tied in to the Diever
production infrastructure within three months. We are pleased to
report that both wells were drilled safely, on time and under
budget. Following tie-in and production testing LDS-01 was
temporarily shut-in to allow optimisation works to be carried out
on the processing facilities due to the higher than anticipated
condensate production levels. LDS-01 was recently brought back
onstream. LDS-02 was unfortunately unsuccessful in encountering
commercial volumes of gas. However, the well information has
greatly helped the joint venture's understanding of the regional
geology for follow-on prospects. The LDS-02 well has been
successfully suspended and is currently being assessed for
potential re-entry and sidetrack to other nearby prospects.
UK Renewable Energy Portfolio
As we benefit from a full year of revenue and electricity
generation from Kempstone Hill, the Company continues to identify
and analyse further value-adding renewable energy opportunities.
Parkmead is investing in the renewables arena alongside our oil and
gas projects. This is with the aim of continued diversification as
we build a balanced portfolio of energy assets.
Since the integration of Kempstone Hill, we have achieved
outstanding operational uptime of 98%, as well as benefitting from
a large increase in wholesale electricity export prices. This has
resulted in 2,446MWh of electricity being generated and record
revenue from the wind farm of GBP0.7 million during the period.
At Pitreadie, commercial discussions continue to progress with
potential joint venture partners. Following positive results of
initial studies, further environmental surveys and planning work
are ongoing in support of a joint venture for a major 100MW wind
farm planning application.
Parkmead, through its strategic relationship with EMA, has
agreed an option over land at Brachmont where initial screening
studies have been completed for a major solar energy project which
is in line with the Scottish Government's commitment to install 4-6
GW of solar energy by 2030.
Apart from the organic development of renewable projects,
Parkmead is actively seeking opportunities to acquire renewable
projects both in production and/or under development.
UK Oil and Gas Projects
Greater Perth Area ("GPA")
The UK North Sea upstream industry is facing unprecedented
challenges associated with volatile oil and gas prices, ageing
infrastructure and rising capital and operating costs. This,
combined with the sharp increases in taxation in the last 18 months
and the related exodus of key equipment and human resources from
the UK North Sea, has resulted in a large number of drilling
campaigns and investment decisions on new field developments being
delayed, curtailed or cancelled. A further major consideration has
been the significant increase in the cost of capital made more
difficult by a lack of appetite from traditional funding sources to
support oil and gas projects. These factors are affecting all
companies active on the UKCS, from major multi-nationals to
independents.
The Parkmead team has worked extremely hard in recent years to
progress the unique and challenging GPA potential development which
included problems handling sour gas through ageing nearby
infrastructure. This work included extensive transportation,
engineering and processing studies and commercial negotiations with
infrastructure owners including INEOS and the Scott Area owners.
Latterly, Parkmead was encouraged with the positive initial
findings from a NetZero feasibility study, conducted in conjunction
with CNOOC and Worley, which demonstrated that a technical solution
was possible using the Scott platform for the reinjection of
associated sour gas into a nearby depleted reservoir. However,
updated development capital costs for Perth, including the
significant additional costs of achieving net-zero requirements,
climbed to over one billion US dollars.
In addition to large capital requirements, important concerns
were highlighted over the longevity of potential nearby host
infrastructure, the inability to pursue a stand-alone FPSO
development option under the NetZero requirements and, in
particular, the recent fiscal changes which has led to a large
increase in effective taxation. Such an increase materially damages
project economics, undermining the usual risk-reward equation
associated with making major offshore oil and gas field investment
decisions. These factors, combined with a lack of public and
political support for new oil projects, resulted in a very cautious
and conditional approach from industry during partnering
discussions. Throughout this in-depth and extensive process, it
became clear that without full and committed engagement from
industrial partners it was not practical to progress the Perth
development to FID, particularly recognising the massive level of
capital investment required. The Company therefore relinquished
licences P588 and P2154 licences containing the Perth
discovery.
Skerryvore
Skerryvore remains a key focus for Parkmead over the next 12
months. The Company's detailed technical work programme has
confirmed the considerable multi-interval potential at Mey and
Chalk intervals that the exploration well will target. The licence
also contains additional prospectivity at the Ekofisk and Jurassic
levels. A successful discovery will result in a tie back to nearby
infrastructure in line with the NSTA's MER and Hub Strategy for new
developments.
During the period, Parkmead increased its stake in the
high-impact Skerryvore project from 30% to 50% and gained
regulatory approval to progress into the next phase of the licence.
Parkmead's joint venture partners on the licence are Serica Energy
(UK) Limited (20%) and CalEnergy (Gas) Limited (30%).
The area around Skerryvore is currently seeing important
activity on several fronts, with Harbour Energy now in the execute
phase of the adjacent Talbot development project, and NEO Energy
proceeding with the redevelopment of Affleck. Further development
activity is also taking place in the Norwegian sector in close
proximity to Skerryvore, and Tommeliten A came into production
recently.
Gamma East
Despite relinquishing the majority of the GPA licences, Parkmead
retained its interest in a key part of P218 which contains the
Gamma East prospect with dual targets in the Piper and Scott
formations. Following recent technical work, the mean STOIIP has
been assessed at 9.5mmbbls and 20.8mmbbls for the respective
formations with mean recoverable reserves of 4.9mmbbls and
9.5mmbbls respectively. Parkmead has approached nearby
infrastructure owners to open discussions on the anticipated
processing and transportation tariffs in the event of a successful
well.
UKCS 33rd Offshore Oil and Gas Licensing Round
Despite industry concerns over the imposition of the UK Energy
Profits Levy, Parkmead remains committed to the UKCS oil and gas
sector. We have therefore made selective applications in the UKCS
33rd Offshore Oil and Gas Licensing Round, to target material
value-adding opportunities. The relevant licensing round results
are expected to be announced early in 2024.
Decommissioning
Parkmead has successfully completed legacy decommissioning
liabilities on the UKCS in order to capitalise on lower supply
chain costs, agreed with our supply chain partners before
significant inflation hit the offshore market. The Company is
pleased to report that well plugging and abandonment activities
across P218, P1242 and P1293 have been completed safely, on time
and on budget. Additionally, post year end the subsea removal scope
on P1293 has been successfully completed safely and on budget. The
completion of this work leaves Parkmead with no remaining
decommissioning liabilities on the UKCS.
Financial Performance
The Group's revenue for the year to 30 June 2023 increased 22%
to GBP14.77m (2023: GBP12.13m). The increased revenue in the year
reflected excellent operating performance coupled with Dutch TTF
gas prices which continued to remain above historical averages. An
outstanding gross margin of 85% was realised, resulting in a gross
profit of GBP12.5m (2022: GBP10.8m). This gross profit demonstrates
the continued low-cost, high-performance nature of our asset base
across the Netherlands. Parkmead remains 100% unhedged and
therefore directly benefits from any higher gas prices.
Operating loss for the year was GBP35.2 million (2022: GBP5.2
million profit), because there were GBP33m (2022: GBP1.1m) in
E&E asset write offs and impairment charges of GBP13m during
the period. These were primarily comprised of carrying values
associated with the P588 and P2193 licences in the UK. Loss before
tax was recorded of GBP35.3 million (2022: GBP5.2 million profit).
Due to aggressive taxation imposed by the Dutch Government on gas
production during the period, the Group suffered a tax liability of
GBP5.8 million partially offset by GBP1.1 million movement in
deferred tax (2022: GBP4.7 million) plus an additional GBP2.4
million windfall tax liability. The imposition of this windfall tax
reflects the high quality of the assets in the Netherlands and the
strong operating margins achieved.
The Group's reported net loss for the period was GBP42.3 million
(2022: GBP0.8 million). Parkmead continues to maintain a strong
balance sheet with total assets of GBP28.6 million (2022: GBP86.3
million) at 30 June 2023. Cash and cash equivalents at year-end
decreased to GBP11.6 million (2022: GBP23.3 million) primarily due
to a cash spend of GBP17.0 million on decommissioning work carried
out across the UKCS and taxation in the Netherlands. As a result,
short term decommissioning provisions reduced significantly to
GBP2.8 million (2022: GBP19.2 million). Interest bearing loans
receivable were GBP2.9 million (2022: GBP2.9 million). Debt was
strictly maintained at the low level of just GBP0.9 million (2022:
GBP0.9 million). This debt was inherited as a result of the
acquisition of Kempstone Hill Wind Energy Limited.
Group administrative expenses were GBP1.8 million (2022: GBP2.2
million). Underlying personnel costs, before share-based payments,
remained unchanged at GBP1.7m (2022: GBP1.7 million).
Outlook
Parkmead has delivered promising results through a period of
significant change, as we build a balanced energy portfolio. The
Company remains in a healthy cash position with valuable revenue
streams from our onshore producing Dutch gas fields and our onshore
UK renewable energy assets. Together these will provide long term,
low risk core revenues for the Group.
Parkmead has a number of carefully selected opportunities across
the UK and Dutch energy sectors, which it is actively working on to
maximise returns. Additionally, the Group has a very significant
pool of UK tax losses, which total in excess of GBP188 million.
This tax position means Parkmead is exceptionally well placed in
respect of making potential acquisitions, at a time when UK oil and
gas taxation for larger producers is at such high levels. Our
experienced management team will continue to maintain strict
financial discipline across the Group's portfolio. Therefore, we
are refocusing our offshore UK efforts on acquisitions and also on
attractive projects such as Skerryvore, which are simpler and lower
cost than GPA and so present clear opportunities to build increased
value for shareholders.
Tom Cross
Executive Chairman
17 November 2023
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 2023. 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 2023
Jun-23 Jun-22
Continuing operations Notes GBP'000 GBP'000
Revenue 14,769 12,129
Cost of sales (2,237) (1,370)
Gross profit 12,532 10,759
Exploration and evaluation expenses (33,009) (1,116)
Impairment of goodwill - (2,174)
Impairment of property, plant and equipment (13,030) -
Loss on sale of assets 36 (31)
Administrative expenses 2 (1,753) (2,231)
------------------------------------------------ ------ ---------- --------
Operating profit/(loss) (35,224) 5,207
Finance income 192 73
Finance costs (267) (1,317)
Profit/(Loss) before taxation (35,299) 3,963
Taxation (4,661) (4,777)
Windfall taxation (2,374) -
------------------------------------------------ ------ ---------- --------
Loss for the period attributable to the equity
holders of the Parent (42,334) (814)
------------------------------------------------ ------ ---------- --------
(Loss) per share (pence)
Basic 3 (38.74) (0.75)
Diluted 3 (38.74) (0.75)
Group statement of profit or loss and other comprehensive
income
for the year ended 30 June 2023
2023 2022
GBP'000 GBP'000
----------------------------------- --------- --------
(Loss) for the year (42,334) (814)
------------------------------------ --------- --------
Other comprehensive income
Income tax relating to components
of other comprehensive income - -
----------------------------------- --------- --------
Other comprehensive income
for the year, net of tax - -
----------------------------------- --------- --------
Total comprehensive (loss)
for the year attributable
to the equity holders of
the Parent (42,334) (814)
------------------------------------ --------- --------
Group statement of financial position
as at 30 June 2023
2023 2022
GBP'000 GBP'000
Non-current assets
Property, plant and equipment: development
& production 4,503 15,843
Property, plant and equipment: other 5,600 6,636
Goodwill 1,084 1,084
Exploration and evaluation assets 1,966 34,346
Interest bearing loans - 2,900
Deferred tax assets - 187
--------------------------------------------- --------- -----------
Total non-current assets 13,153 60,996
--------------------------------------------- --------- -----------
Current assets
Trade and other receivables 941 2,018
Interest bearing loans 2,936 -
Inventory 16 42
Cash and cash equivalents 11,576 23,263
Total current assets 15,469 25,323
--------------------------------------------- --------- -----------
Total assets 28,622 86,319
--------------------------------------------- --------- -----------
Current liabilities
Trade and other payables (2,673) (3,545)
Decommissioning provisions (2,773) (19,228)
Current tax liabilities (2,263) (1,432)
--------------------------------------------- --------- -----------
Total current liabilities (7,709) (24,205)
--------------------------------------------- --------- -----------
Non-current liabilities
Trade and other payables (942) (1,181)
Loans (767) (948)
Windfall taxation (2,374) -
Deferred tax liabilities (641) (1,925)
Decommissioning provisions (1,529) (1,066)
--------------------------------------------- --------- -----------
Total non-current liabilities (6,253) (5,120)
--------------------------------------------- --------- -----------
Total liabilities (13,962) (29,325)
--------------------------------------------- --------- -----------
Net assets 14,660 56,994
--------------------------------------------- --------- ---------
Equity attributable to equity holders
Called up share capital 19,688 19,688
Share premium 83,625 83,625
Merger reserve 3,376 3,376
Retained deficit (92,029) (49,695)
--------------------------------------------- ---------- ---------
Total Equity 14,660 56,994
--------------------------------------------- ----------- ---------
Group statement of changes in equity
for the year ended 30 June 2023
Share Share Merger Retained Total
capital premium reserve deficit
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ ------------ --------- --------- --------- ---------
At 30 June 2021 19,688 83,625 3,376 (48,968) 57,721
------------------------------ ------------ --------- --------- --------- ---------
Loss for the year - - - (814) (814)
Total comprehensive loss for
the year - - - (814) (814)
Share capital issued - - - - -
Share-based payments - - - 87 87
------------------------------ ------------ --------- --------- ---------
At 30 June 2022 19,688 83,625 3,376 (49,695) 56,994
------------------------------ ------------ --------- --------- --------- ---------
Loss for the year - - - (42,334) (42,147)
Total comprehensive loss for
the year - - - (42,334) (42,147)
Share capital issued - - - - -
Share-based payments - - - - -
------------------------------ ------------ --------- --------- ---------
At 30 June 2023 19,688 83,625 3,376 (92,029) 14,660
------------------------------ ------------ --------- --------- --------- ---------
Group statement of cashflows
for the year ended 30 June 2023
2023 2022
Notes GBP'000 GBP'000
---------------------------------------- ------ --------- --------
Cashflows from operating activities
Continuing activities 4 11,414 8,038
Taxation paid (4,881) (3,508)
---------------------------------------- ------ --------- --------
Net cash generated by/(used in)
operating activities 6,533 4,530
---------------------------------------- ------ --------- --------
Cash flow from investing activities
Interest received 192 73
Acquisition of exploration and
evaluation assets (519) (548)
Disposal of property, plant and
equipment 654 874
Acquisition of property, plant
and equipment: development and
production (950) (123)
Acquisition of property, plant
and equipment: other (87) (3,114)
Decommissioning expenditure (16,983) (1,667)
Net cash on acquisition of Kempstone
Hill - 360
Net cash generated by/ (used
in) investing activities (17,693) (4,145)
---------------------------------------- ------ --------- --------
Cash flow from financing activities
Interest paid (136) (45)
Lease payments (229) (375)
Repayment from loans and borrowings (88) (542)
Net cash (used in) financing
activities (453) (962)
---------------------------------------- ------ --------- --------
Net (decrease) in cash and cash
equivalents (11,613) (577)
---------------------------------------- ------ --------- --------
Cash and cash equivalents at beginning
of year 23,263 23,378
Effect of foreign exchange rate
differences (74) 462
---------------------------------------- ------ --------- --------
Cash and cash equivalents at
end of year 11,576 23,263
---------------------------------------- ------ --------- --------
Notes to the financial information for the year ended 30 June
2023
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 2023 or 30 June 2022.
The financial information has been extracted from the audited
statutory accounts for the years ended 30 June 2023 and 30 June
2022. 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 2022 have been
delivered to the Registrar of Companies. The
statutory accounts for the year ended 30 June 2023 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
2022 and the statutory accounts for the year ended 30 June 2022 and
have been prepared in accordance with UK-adopted International
Accounting Standards ("IFRSs").
2. Administrative expenses
Administrative expenses include a credit in respect of a
non-cash revaluation of share appreciation rights (SARs) and share
based payments totalling GBP1,200,000 (2022: a charge of
GBP505,000). The SARs may be settled via shares or cash and are
therefore revalued with the movement in share price. The valuation
was impacted by the decrease in share price between 30 June 2022
and 30 June 2023.
3. Profit / (loss) per share
Profit/(loss) per share attributable to equity holders of the
Company arise from continuing and discontinued operations as
follows:
2023 2022
(Loss) / profit per 1.5p ordinary share
from continuing operations (pence)
Basic (38.74)p (0.75)p
Diluted (38.74)p (0.75)p
The calculations were based on the following information:
2023 2022
GBP'000 GBP'000
Loss attributable to ordinary shareholders
Continuing operations (42,334) (814)
---------------------------------------------- ------------ ------------
Total (42,334) (814)
---------------------------------------------- ------------ ------------
Weighted average number of shares in issue
Basic weighted average number of shares 109,266,931 109,266,931
---------------------------------------------- ------------ ------------
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
(loss)/profit per share when a company could be called upon to
issue shares that would decrease net profit or increase 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
2023 2023
GBP'000 GBP'000
Operating profit / (loss) (35,224) 5,207
Depreciation 722 726
Amortisation and exploration write-off 32,834 860
Loss on sale of property, plant and equipment (36) 31
Provision for share based payments - 87
Currency translation adjustments 74 (462)
Impairment of property, plant and equipment: developed and produced 13,030 -
Impairment of goodwill - 2,174
Decreases / (increase) in receivables 1,077 (667)
Decrease in stock 26 24
Increase/(decrease) in payables (1,089) 58
Net cash flow from operations 11,414 8,038
---------------------------------------------------------------------- -------------- --------------
5. Approval of this preliminary announcement
This announcement was approved by the Board of Directors on 16
November 2023.
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 FFFLFLILRLIV
(END) Dow Jones Newswires
November 17, 2023 02:00 ET (07:00 GMT)
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