TIDMATH
RNS Number : 3652I
ATH Resources plc
14 June 2011
Press Release 14 June 2011
ATH Resources plc
("ATH" or the "Group")
Interim Results
ATH Resources plc (AIM:ATH), one of the UK's largest coal
producers, reports its Interim Results for the six months ended 3
April 2011.
Highlights
-- New site at Netherton opened and fully operational
-- Revenue of GBP33.9 million (2010: GBP34.4 million), on
sales of 706,000 tonnes (2010: 776,000 tonnes)
-- Operating profit before exceptional items up GBP2 million
on the same period last year at GBP1.7 million (2010:
loss GBP0.3 million)
-- Average selling price increased to GBP48 per tonne (2010:
GBP44 per tonne) helped offset the impact of rising gas
oil prices and lower volumes
-- Proved and probable reserves of 7.9 million tonnes (2010:
year end 8.6 million tonnes), with planning applications
for a further 300,000 tonnes submitted
-- Net borrowings, including hire purchase of GBP15.9 million,
remained steady from last year end at GBP34.5 million
after investing GBP8 million in the Netherton site
-- Development of the new site at Duncanziemere commences
in August 2011 as planned
-- Continued progress towards fulfilling legacy contracts
Commenting on the Interim Results, Alistair Black, Chief
Executive of ATH, said: "Despite the challenges faced by the Group
from rising gas oil prices and unexpected geological conditions at
Glenmuckloch, underlying profit for the first six months was some
GBP2 million better than the previous year at GBP1.7 million (2010:
loss GBP0.3 million). With the Netherton site now fully developed
the Board had expected a typically strong second half performance,
however, current mining conditions at Muir Dean and the presence of
heat affected coal at Netherton suggest volumes will now be lower
than expected for the full year. In view of the above, the Board
has decided to concentrate its mining effort on accessing higher
quality, lower ratio coal. This has necessitated the write-off of a
significant part of its work in progress balance and a reduced
expectation for the year. The Group expects that the impact on
sales volumes will be increasingly offset by improved selling
prices as we move forward and, consequently, the Board remains
confident in the medium and long term prospects for the
business."
"We are still on track to fulfill the first of the Group's fixed
price legacy contracts, which continue to restrict earnings, and
look forward to further significant improvements to average selling
prices once they have been completed."
- Ends -
For further information:
ATH Resources plc
David Port, Executive Chairman Tel: +44 (0) 7836 693798
Alistair Black, Chief Executive Tel: +44 (0) 1302 760 462
www.ath.co.uk
Seymour Pierce Ltd
Sarah Jacobs / John Cowie (Nominated Tel: +44 (0) 207 107 8000
Adviser)
Richard Redmayne / Katie Ratner
(Broker)
www.seymourpierce.com
Media enquiries:
Abchurch
Sarah Hollins / Joanne Shears / Tel: +44 (0) 207 398 7729
Mark Dixon
mark.dixon@abchurch-group.com www.abchurch-group.com
Chairman's Statement
The first six months of the year have been difficult with the
Group facing a number of significant challenges. Although
successfully opening its new site at Netherton in East Ayrshire,
and achieving an improved operating profit, the impact of a
significant rise in the price of gas oil, combined with the
difficult geological conditions, particularly at Glenmuckloch, have
had a detrimental impact on the Group's performance.
Revenue in the six months to 3 April 2011 was GBP33.9 million
(2010: GBP34.4 million) on sales of 706,000 tonnes (2010: 776,000
tonnes).
Operating profit before exceptional items up GBP2 million on
2010 at GBP1.7 million (2010: loss GBP0.3 million).
Net borrowings were GBP34.5 million, similar to the end of the
last financial year, after investing GBP8 million in opening the
Netherton site.
Sales
Despite a fall in sales volumes, average selling prices improved
to GBP48 per tonne (2010: GBP44 per tonne) reflecting both the
strong sales of domestic coal and the rising international price of
coal, which has risen by around 28 per cent since the beginning of
October 2010. Forward market indices indicate that there will be a
further strengthening of prices year-on-year.
The Group's legacy fixed price contracts, which accounted for 30
per cent of sales in the period, continue to constrain performance.
However, in spite of lower levels of production than planned, the
Group still remains on track to fulfil the first of these contracts
by the end of March 2012, with the second being completed 12 months
later. Thereafter, the remaining legacy contract will be supplied
at around 300,000 tonnes per annum.
As previously reported, the Group has successfully negotiated
new contracts or contract extensions to the electricity supply
industry during the period at market related prices totalling
500,000 tonnes.
Production
The Group is approaching the end of operations at Glenmuckloch
and Skares Road and whilst production at Skares Road is proceeding
as expected, Glenmuckloch has, as previously reported, experienced
difficult geological conditions. This has resulted in lower than
expected remaining coal reserves and a much higher mining ratio
during the final phase of production. The impact to both revenue
and margins will continue for the remainder of this financial year
as well as necessitating a write-off of associated work in progress
of GBP2.1 million.
Muir Dean had been performing satisfactorily until production
encountered a higher concentration of old workings which has
reduced sales in recent weeks.
Development of the initial phase at Netherton is now complete
and the site is expected to enter full production in the coming
weeks. Plans to increase production in the second half to
compensate for lost production at Glenmuckloch were hit by a higher
than anticipated volume of heat affected coal encountered in the
eastern wall. Production is now progressing westwards away from the
heavily affected area but sales in the second half will be impacted
and, as a result, expectations for the full year will not be
achieved.
In view of the above, the Group has decided to concentrate on
those areas of recoverable reserves which give rise to higher
quality coals at lower mining ratios. As a result, the Group will
be taking a more cautious view of its remaining reserves at its
sites currently in production which will necessitate a write down
of its work in progress balance by an additional GBP2 million.
In total this has created an exceptional write-off of GBP4.1
million in the six months to 3 April 2011 and a loss before tax
from continuing operations of GBP3.6 million (2010: GBP1.9
million). At the end of the period the work in progress asset on
the balance sheet stands at GBP4.4 million; this is GBP2.5 million
lower than at the same time in 2010.
Gas oil prices
The price of gas oil rose by 35 per cent during the first half
of the year; however the Group's hedging strategy limited the
increase to 9 per cent compared to the average paid in the previous
year.
Whilst prices in recent weeks have weakened slightly from their
recent peak, the impact of the price rises will be more significant
in the second half as all lower priced hedging contracts have now
been fully utilised. Given the Group's high percentage of fixed
price legacy contracts, which provide no adjustment for fuel
prices, the Group has hedged over 50 per cent of its requirements
for the second half in order to reduce the impact of any further
rises in gas oil.
Site development
The Group has invested GBP8 million to date in opening up
Netherton to plan and is in the process of making preparations for
the opening of the Duncanziemere site. Excavations at Duncanziemere
are expected to commence in the final quarter of the financial year
with coal production commencing in autumn 2011 as planned.
In total the Group expects to invest in the region of GBP12
million this year in the development of these sites, with a further
GBP3 million planned for the first quarter of next year. These
sites will form the cornerstone of the Group's production for the
next few years.
Development and reserves*
Planning applications for 300,000 tonnes have been submitted in
respect of extensions to existing sites in the first six
months.
Proved and probable reserves at 3 April 2011 amounted to
7,900,000 tonnes (at 3 October 2010: 8,600,000 tonnes). This is
equivalent to in excess of four years' production.
Dividends
As announced in May 2011, the Group took the decision not to
declare an interim dividend for the period (2010: 1 pence per
share). However, the Board remains committed to delivering a
progressive dividend to shareholders in the future.
Carbon Reduction Commitment
The Board of ATH believes that the Group does not qualify to be
part of the Government's new Carbon Reduction Commitment Scheme
("CRCS") and decided not to register for the Scheme. However, the
Department of Energy and Climate Change ("DECC") has subsequently
issued ATH with an enforcement notice, asserting a failure to
register as a participant in the first phase of the CRCS which the
Group is appealing. Central to the issue is whether or not the
electricity consumed by ATH's conveyor, which transports coal from
its Glenmuckloch site to its railhead at New Cumnock some 12
Kilometres away, is exempt from CRCS. The outcome of this
administrative appeal is likely to be known by late summer
2011.
Outlook
Full year sales volumes are now expected to be in the region of
1.7 million tonnes, some 90,000 tonnes lower than the same period
last year. The improvement in selling prices will, in part, help
offset this shortfall. The Group will continue with its strategy to
supply existing legacy contracts to their earliest conclusion and
to open the Duncanziemere site to support production in the next
financial year.
The Group remains confident that, although expectations for the
current year will not be achieved, the prospects remain encouraging
for ATH, particularly as the Group will benefit significantly from
improved revenues as the legacy contracts are fulfilled.
David Port
Executive Chairman
14 June 2011
Condensed consolidated income statement (unaudited)
for the six months ended 3 April 2011
Restated
six months six months year
ended ended ended
3 April 4 April 3 October
2011 2010 2010
Notes GBP000 GBP000 GBP000
Continuing operations
Revenue 2 33,934 34,404 78,307
Cost of sales (27,777) (30,039) (62,520)
-------------------------------- ------ ----------- ----------- ----------
Gross profit 6,157 4,365 15,787
Other operating income 3 2,054 16 73
Impairment of goodwill (1,650) - -
Administrative expenses (4,860) (4,690) (8,906)
-------------------------------- ------ ----------- ----------- ----------
Operating profit/(loss) before
exceptional items 1,701 (309) 6,954
Exceptional operating items 4 (4,131) - -
-------------------------------- ------ ----------- ----------- ----------
Operating (loss)/profit (2,430) (309) 6,954
Finance costs (1,195) (1,559) (2,966)
-------------------------------- ------ ----------- ----------- ----------
(Loss)/profit before taxation (3,625) (1,868) 3,988
Taxation 5 473 513 (1,461)
-------------------------------- ------ ----------- ----------- ----------
(Loss)/profit for the period
from continuing operations (3,152) (1,355) 2,527
-------------------------------- ------ ----------- ----------- ----------
Discontinued operations
Loss for the period from
discontinued operations 6 - (518) (4,294)
-------------------------------- ------ ----------- ----------- ----------
Loss attributable to ordinary
shareholders (3,152) (1,873) (1,767)
-------------------------------- ------ ----------- ----------- ----------
(Loss)/earnings per share From
continuing and discontinued
operations: Basic 7 (7.9)p (4.7)p (4.4)p
Diluted (7.9)p (4.7)p (4.4)p
From continuing operations:
Basic (7.9)p (3.4)p 6.3p
Diluted (7.9)p (3.4)p 6.2p
Loss per share before
exceptional items Basic (0.4)p (3.4)p 6.3p
Diluted (0.4)p (3.4)p 6.2p
There are no recognised gains and losses other than as stated in
the income statement.
Condensed consolidated balance sheet (unaudited)
As at 3 April 2011
Company number: 4928463
Restated
3 April 3 October 4 April
2011 2010 2010
GBP000 GBP000 GBP000
------------------------------- --------- ---------- ---------
ASSETS
Non-current assets
Goodwill 3,763 5,413 7,657
Property, plant and equipment 73,133 67,097 72,737
------------------------------- --------- ---------- ---------
76,896 72,510 80,394
------------------------------- --------- ---------- ---------
Current assets
Inventories 10,256 11,925 14,511
Trade and other receivables 10,648 11,257 8,247
Cash and cash equivalents 3,436 2,353 3,838
------------------------------- --------- ---------- ---------
24,340 25,535 26,596
------------------------------- --------- ---------- ---------
Total assets 101,236 98,045 106,990
------------------------------- --------- ---------- ---------
LIABILITIES
Current liabilities
Trade and other payables (14,323) (11,227) (12,886)
Tax liabilities - (407) -
Financial liabilities (9,057) (6,335) (6,786)
Final void provision (1,731) (2,315) (3,437)
------------------------------- --------- ---------- ---------
(25,111) (20,284) (23,109)
------------------------------- --------- ---------- ---------
Non-current liabilities
Financial liabilities (28,669) (30,309) (37,765)
Final void provision (20,859) (16,498) (14,011)
Deferred tax liabilities (2,752) (3,254) (3,644)
Other provisions - - (338)
------------------------------- --------- ---------- ---------
(52,280) (50,061) (55,758)
------------------------------- --------- ---------- ---------
Total liabilities (77,391) (70,345) (78,867)
------------------------------- --------- ---------- ---------
Net assets 23,845 27,700 28,123
------------------------------- --------- ---------- ---------
EQUITY
Share capital 200 200 200
Share premium 27,855 27,855 27,855
Retained earnings (4,210) (355) 68
------------------------------- --------- ---------- ---------
Total equity 23,845 27,700 28,123
------------------------------- --------- ---------- ---------
Condensed consolidated statement of changes in equity
for the six months ended 3 April 2011
Called Total
up Share equity
share premium Retained shareholders'
capital account earnings funds
GBP000 GBP000 GBP000 GBP000
------------------------------- -------- -------- --------- --------------
At 4 October 2009 200 27,855 4,205 32,260
------------------------------- -------- -------- --------- --------------
Loss for the year - - (1,767) (1,767)
Other comprehensive income for
the year - - - -
Total comprehensive income for
the year - - (1,767) (1,767)
Transactions with equity
shareholders
Adjustment in share-based
payment reserve - - 72 72
Dividends paid - - (2,865) (2,865)
------------------------------- -------- -------- --------- --------------
Total transactions with equity
shareholders - - (2,793) (2,793)
------------------------------- -------- -------- --------- --------------
At 3 October 2010 200 27,855 (355) 27,700
------------------------------- -------- -------- --------- --------------
At 4 October 2009 200 27,855 4,205 32,260
------------------------------- -------- -------- --------- --------------
Loss for the period - - (1,873) (1,873)
Other comprehensive income for
the period - - - -
Total comprehensive income for
the period - - (1,873) (1,873)
Transactions with equity
shareholders
Dividends paid - - (2,465) (2,465)
Adjustment in share-based
payment reserve - - 201 201
------------------------------- -------- -------- --------- --------------
Total transactions with equity
shareholders - - (2,264) (2,264)
------------------------------- -------- -------- --------- --------------
At 4 April 2010 200 27,855 68 28,123
------------------------------- -------- -------- --------- --------------
At 3 October 2010 200 27,855 (355) 27,700
------------------------------- -------- -------- --------- --------------
Loss for the period - - (3,152) (3,152)
Other comprehensive income for
the period - - - -
Total comprehensive income for
the period - - (3,152) (3,152)
Transactions with equity
shareholders
Dividends paid - - (802) (802)
Adjustment in share-based
payment reserve - - 99 99
------------------------------- -------- -------- --------- --------------
Total transactions with equity
shareholders - - (703) (703)
------------------------------- -------- -------- --------- --------------
At 3 April 2011 200 27,855 (4,210) 23,845
------------------------------- -------- -------- --------- --------------
Condensed consolidated cash flow statement (unaudited)
for the six months ended 3 April 2011
six months six months year
ended ended ended
3 April 4 April 3 October
2011 2010 2010
Notes GBP000 GBP000 GBP000
-------------------------------- ------ ----------- ----------- ----------
Cash flows from operating
activities
Cash generated from operations 9 10,077 3,253 12,736
Interest paid (980) (1,066) (2,058)
Tax paid (436) (300) (1,806)
-------------------------------- ------ ----------- ----------- ----------
Net cash from operating
activities 8,661 1,887 8,872
-------------------------------- ------ ----------- ----------- ----------
Cash flows from investing
activities
Proceeds from sale of property,
plant and equipment 560 350 438
Net proceeds from sale of ATH
Regeneration assets - - 6,258
Interest received 1 - -
Site development costs (7,455) (1,271) (5,930)
Purchases of property, plant
and equipment (954) (329) (1,358)
-------------------------------- ------ ----------- ----------- ----------
Net cash used in investing
activities (7,848) (1,250) (592)
-------------------------------- ------ ----------- ----------- ----------
Cash flows from financing
activities
Dividends paid (802) (2,465) (2,865)
Repayment of borrowings - (14,533) (14,335)
Payment of hire purchase
liabilities (5,194) (5,447) (11,247)
New asset-backed finance raised 4,266 5,865 8,501
New revolving credit facility
drawdown 2,000 25,000 19,238
-------------------------------- ------ ----------- ----------- ----------
Net cash from/(used in)
financing activities 270 8,420 (708)
-------------------------------- ------ ----------- ----------- ----------
Net increase in cash and cash
equivalents 1,083 9,057 7,572
Cash and cash equivalents at
beginning of period 2,353 (5,219) (5,219)
-------------------------------- ------ ----------- ----------- ----------
Cash and cash equivalents at
end of period 3,436 3,838 2,353
-------------------------------- ------ ----------- ----------- ----------
Notes to the interim Report
for the six months ended 3 April 2011
1. Basis of preparation
The Group has drawn up its interim report for the 26 week period
ended 3 April 2011 (2010: 26 weeks ended 4 April 2010). The interim
report is unaudited and does not constitute statutory financial
statements within the meaning of Section 434 of the Companies Act
2006.
The interim report has been prepared using policies that are
consistent with International Financial Reporting Standards
("IFRS") as adopted by the European Union. As permitted, this
report has not been prepared in accordance with IAS 34 'Interim
Financial Reporting'.
The financial information relating to the year ended 3 October
2010 is an extract from the latest published financial statements
on which the auditors gave an unqualified report that did not
contain statements under Section 498 (2) or (3) of the Companies
Act 2006 and which have been filed with the Registrar of
Companies.
The Group has bank facilities which are due to expire in
November 2012 and the Group is currently in discussions with a view
to amend and extend these facilities. Accordingly, the Directors
continue to adopt the going concern basis in preparing the
financial statements.
The same accounting policies, presentation and methods of
computation are followed in the condensed set of financial
statements as applied in the latest published annual financial
statements. New accounting standards issued in the period do not
materially impact on the results of the Group and these will be
fully detailed in the year end report.
The interim report was approved by the Board of Directors on 13
June 2011.
2. Segmental reporting
Until 29 July 2010, the Group was organised into two reportable
segments; surface mining and regeneration. Following the sale of
the business assets of ATH Regeneration, surface mining became the
Group's sole business segment.
Six months ended Six months ended Year ended
3 April 2011 4 April 2010 3 October 2010
----------------------- ----------------------- -----------------------
Surface Discontinued Surface Discontinued Surface Discontinued
Income Mining Operations Mining Operations Mining Operations
statement GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------- -------- ------------- -------- ------------- -------- -------------
Revenue
Total revenue 33,934 - 34,404 - 78,307 -
--------------- -------- ------------- -------- ------------- -------- -------------
Result
Operating
profit/(loss)
before
exceptional
items 1,701 - (309) (699) 6,954 (4,942)
Exceptional
items (4,131) - - - - -
--------------- -------- ------------- -------- ------------- -------- -------------
Operating
(loss)/profit (2,430) - (309) (699) 6,954 (4,942)
--------------- -------- ------------- -------- ------------- -------- -------------
The discontinued operations loss for the year ended 3 October 2010, includes
a loss on sale of the ATH Regeneration assets of GBP3,380,000.
Six months ended Six months ended Year ended
3 April 2011 4 April 2010 3 October 2010
============== ----------------------------------- ----------------------------------- -----------------------------------
Surface Discontinued Surface Discontinued Surface Discontinued
Mining Operations Group Mining Operations Group Mining Operations Group
Balance sheet GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------- --------- ------------- --------- --------- ------------- --------- --------- ------------- ---------
Assets
============== ========= ============= ========= ========= ============= ========= ========= ============= =========
Segment
assets 101,236 - 101,236 94,171 12,819 106,990 92,370 5,675 98,045
-------------- --------- ------------- --------- --------- ------------- --------- --------- ------------- ---------
Liabilities
============== ========= ============= ========= ========= ============= ========= ========= ============= =========
Segment
liabilities (77,391) - (77,391) (76,318) (2,549) (78,867) (59,189) (11,156) (70,345)
-------------- --------- ------------- --------- --------- ------------- --------- --------- ------------- ---------
Other
information
============== ========= ============= ========= ========= ============= ========= ========= ============= =========
Capital
additions 8,409 - 8,409 1,473 127 1,600 4,045 3,243 7,288
============== ========= ============= ========= ========= ============= ========= ========= ============= =========
Depreciation 5,852 - 5,852 7,052 122 7,174 13,564 194 13,758
-------------- --------- ------------- --------- --------- ------------- --------- --------- ------------- ---------
3. Other Operating Income
In January 2011, the Group, as permitted under the terms of the
technology licence agreement with RecyCoal Limited, elected to
receive a royalty payment of GBP2 million in exchange for reduced
royalties in the future.
Following this the Group undertook a review of the expected
future royalty receipts and reassessed the carrying value of the
goodwill associated with the royalty stream. As a consequence the
Group made an impairment write down of GBP1.65 million.
4. Exceptional items
During the period the Group has incurred the following
exceptional items:
Six months Six months Year
ended ended ended
3 April 4 April 3 October
2011 2010 2010
---------------------------------------- ----------- ----------- ----------
Write off of work in progress 2,131 - -
in respect of the Glenmuckloch
site
Provisions against work in progress 2,000 - -
balances due to re-assessment
of coal reserves at current production
sites
---------------------------------------- ----------- ----------- ----------
4,131 - -
---------------------------------------- ----------- ----------- ----------
5. Taxation
Taxation for the six months ended 3 April 2011 has been provided
at the effective rate estimated to be applicable for the
period.
6. Discontinued Operations
On 29 July 2010 the Group disposed of the business assets of ATH
Regeneration Limited which specialised in the recovery of coal
through washing of redundant coal tips and its subsequent sale to
UK electricity generators. The consideration received for the
assets was GBP6.5 million. The Group also entered into a licence
agreement with the new owners of RecyCoal Limited to exclusively
licence the intellectual property of the coal processing
technology, ownership of which is retained by the Group.
The results of the discontinued operations which have been
included in the consolidated income statement are as follows:
Six months Six months Year
ended ended ended
3 April 4 April 3 October
2011 2010 2010
GBP000 GBP000 GBP000
---------------------------------------- ----------- ----------- ----------
Revenue - - -
---------------------------------------- ----------- ----------- ----------
Other operating income - 9 11
Operating expenses - (708) (1,573)
Loss on sale of business assets - - (1,136)
Goodwill impairment - - (2,244)
---------------------------------------- ----------- ----------- ----------
Operating loss - (699) (4,942)
Finance costs - (16) -
Loss before tax - (715) (4,942)
Taxation - 197 648
---------------------------------------- ----------- ----------- ----------
Loss attributable to discontinued
operations - (518) (4,294)
---------------------------------------- ----------- ----------- ----------
7. Earnings per share
Basic earnings per share is calculated by reference to the
weighted average number of ordinary shares in issue during the
period of 40,075,158 (4 April 2010: 40,075,158; 3 October 2010:
40,075,158) and the profit for the period. The diluted earnings per
share takes account of share options outstanding to employees as
set out below:
Unaudited Unaudited Audited
six months six months year
ended ended ended
3 April 4 April 3 October
2011 2010 2010
Number Number Number
000 000 000
---------------------------------------- ----------- ----------- ----------
Weighted average number of shares
in issue 40,075 40,075 40,075
Weighted average number of dilutive
share options 2,483 1,570 875
---------------------------------------- ----------- ----------- ----------
Total number of shares for calculating
diluted earnings per share 42,558 41,645 40,950
---------------------------------------- ----------- ----------- ----------
8. Dividends
Unaudited Unaudited Audited
six months six months year
ended ended ended
3 April 4 April 3 October
2011 2010 2010
GBP000 GBP000 GBP000
---------------------------------------- ----------- ----------- ----------
Declared and paid during the financial
period
Final dividend for the year ended
4 October 2009: 6.15 pence per
share - 2,465 2,465
Interim dividend for the year ended
3 October 2010: 1.00 pence per
share - - 400
Final dividend for the year ended
3 October 2010: 2.00 pence per
share 802 - -
---------------------------------------- ----------- ----------- ----------
802 2,465 2,865
---------------------------------------- ----------- ----------- ----------
Proposed after the balance sheet
date and not recognised as a liability
Final dividend for the year ended
3 October 2010: 2.00 pence per
share - - 802
Interim dividend for the year ended
3 October 2010: 1.00 pence per
share - 401 -
---------------------------------------- ----------- ----------- ----------
- 401 802
---------------------------------------- ----------- ----------- ----------
9. Reconciliation of result before tax to net cash generated
from operations
Unaudited Unaudited Audited
six months six months year
ended ended ended
3 April 4 April 3 October
2011 2010 2010
GBP000 GBP000 GBP000
--------------------------------------- ----------- ----------- ----------
Loss before tax (3,625) (2,583) (954)
Finance costs 1,195 1,575 2,966
Depreciation of property, plant
and equipment 5,852 7,174 13,758
Loss on disposal of fixed assets 49 - 3,380
Impairment of goodwill 1,650 - -
Share-based payment expense 99 201 72
Operating cash flows before movements
in working capital 5,220 6,367 19,222
(Increase)/decrease in inventories (2,463) (1,720) 203
Exceptional items - work in progress
write down 4,131 - -
Decrease/(increase) in receivables 741 678 (1,636)
Increase/(decrease) in payables
and provisions 2,448 (2,072) (5,053)
--------------------------------------- ----------- ----------- ----------
Net cash generated from operations 10,077 3,253 12,736
--------------------------------------- ----------- ----------- ----------
10. Analysis of net financial liabilities
Unaudited Unaudited Audited
six months six months year
ended ended ended
3 April 4 April 3 October
2011 2010 2010
GBP000 GBP000 GBP000
-------------------------------- ----------- ----------- ----------
Debt due within one year (3,500) - -
Debt due beyond one year (18,500) (25,000) (20,000)
Hire purchase contracts (15,923) (20,014) (16,851)
-------------------------------- ----------- ----------- ----------
Total borrowings (37,923) (45,014) (36,851)
Cash and cash equivalents 3,436 3,838 2,353
-------------------------------- ----------- ----------- ----------
Net borrowings (34,487) (41,176) (34,498)
-------------------------------- ----------- ----------- ----------
Financial instrument liability (235) (233) (357)
Unamortised borrowing costs 432 696 564
-------------------------------- ----------- ----------- ----------
Other financial liabilities 197 463 207
-------------------------------- ----------- ----------- ----------
Total financial liabilities (34,290) (40,713) (34,291)
-------------------------------- ----------- ----------- ----------
11. Reconciliation of net cash flow to movement in net
borrowings
Unaudited Unaudited Audited
six months six months year
ended ended ended
3 April 4 April 3 October
2011 2010 2010
GBP000 GBP000 GBP000
---------------------------------------- ----------- ----------- ----------
Increase in cash in the period 1,083 9,057 7,572
Cash outflow from reduction in debt and
hire purchase financing 5,194 19,982 25,781
---------------------------------------- ----------- ----------- ----------
Change in net debt resulting from cash
flow 6,277 29,039 33,353
New asset backed loans (4,266) (5,865) (8,501)
New revolving credit facility drawdown (2,000) (25,000) (20,000)
Movement in net debt in the period 11 (1,826) 4,852
Net debt brought forward (34,498) (39,350) (39,350)
---------------------------------------- ----------- ----------- ----------
Net debt carried forward (34,487) (41,176) (34,498)
---------------------------------------- ----------- ----------- ----------
12. Copies of the interim report
Copies of the interim report will be posted to shareholders in
due course and are available from the Group's Head Office at
Aardvark House, Sidings Court, Doncaster DN4 5NU or by visiting the
Group's website www.ath.co.uk.
* The information in this report relating to exploration
results, mineral resources or mineral reserves is based on
information compiled by Mr. Peter Morgan, a full-time employee of
the Group, who is a Fellow of the Institute of Materials, Minerals
and Mining. Mr. Morgan has sufficient experience which is relevant
to the style of mineralisation and type of deposit under
consideration. He has reviewed and consents to the inclusion in the
report of the matters based on his information in the form and
context in which it appears. A glossary of terms is available on
our website - www.ath.co.uk.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
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