TIDMLPH
RNS Number : 6466W
LP Hill PLC
11 November 2014
11 November 2014
LP Hill Plc
("LP Hill" or the "Company")
Final Results for the year ended 30 June 2014
LP Hill (AIM: LPH), the AIM listed uranium, thorium, base and
precious metals and gemstones exploration and development company
operating in Madagascar, announces its audited final results for
the year ended 30 June 2014.
Chairman's Statement
I am pleased to present the Group's final results for the year
ended 30 June 2014. The results show that the Group incurred a loss
before and after taxation for the year of GBP664,877 (2013:
GBP107,217). The loss reflects the limited essential expenditure
incurred in order to maintain the good standing of our Marodambo
Project, corporate running costs, expenditure associated with
conducting the requisite due diligence on potential new attractive
project opportunities and an impairment charge of GBP478,837 (2013:
Nil). In light of the considerable and ongoing delay experienced
with respect to securing the necessary governmental approvals for
Phase 2 of the Marodambo Project, the Board has deemed it
appropriate to recognise an impairment expense of GBP478,837 in
this reporting period in respect of the Company's investment in
Tranomaro Mineral Development Corporation Limited ("TMDCL"). TMDCL
holds the group's 80 per cent. interest in Mineral Development
Corporation S.A. which is the sole beneficial owner of the
Marodambo Project.
During the reporting period, the Board has continued to identify
and investigate further potential opportunities to expand the
Company's asset portfolio in line with our stated strategy. This
has again included the evaluation of advanced resource projects
that are either revenue generating or which have a clear short-term
path towards revenue generation. The market environment has
continued to be extremely challenging for companies operating in
the mining sector such that the Board has yet to secure a suitably
compelling and attractive opportunity at a sensible valuation to
present to shareholders and potential investors to raise the
requisite funding.
The Group's early stage Marodambo Project in Madagascar, focused
on exploration for uranium and thorium, remains on a care and
maintenance footing pending receipt of the requisite approvals from
the relevant Madagascan government authorities in respect of our
potential Phase 2 exploration work programme and environmental
impact study.
On 17 March 2014, the Company announced that it had allotted
4,970,264 new ordinary shares to Hereford Group Limited, an
existing substantial shareholder, in respect of the conversion in
full of its 2014 unsecured loan notes and the satisfaction of
accrued interest thereon.
On 26 June 2014, the Company announced that it had allotted
3,333,333 new ordinary shares to Fisherstreet Management Limited,
in respect of the conversion in full of the principal amount of its
2015 unsecured loan notes.
Post the reporting period end, on 9 September 2014, the Company
announced that it had raised GBP405,000 before expenses, via a
subscription for new ordinary shares by Kijani Resources Limited
("Kijani"), an existing substantial shareholder in the Company.
Kijani subscribed for 1,000,000 new ordinary shares at a price of
40.5 pence per share. The net proceeds raised from the subscription
were used to repay the group's existing indebtedness with the
balance to be used for general working capital purposes. The
Company anticipates raising additional equity and/or debt finance
in due course in order to ensure that the Group maintains an
appropriate capital structure and is able to fund its ongoing
working capital requirements and potential future development
opportunities.
On the same date as the subscription, we were also delighted to
announce the appointment of William Redford as a Non-Executive
Director of the Company and I assumed the role of Executive
Chairman with Roy Spencer assuming a non-executive position.
William has joined the board as a representative of Kijani to
assist us in identifying and evaluating potential opportunities for
the Company's future development and we remain confident in the
longer term fundamentals for the natural resources sector.
In order to better reflect the nature and principal activity of
the Group, the Board proposes that the Company's name be changed to
"Emerging Market Minerals PLC" and a special resolution will be put
to shareholders at the Company's forthcoming Annual General Meeting
to secure the requisite shareholder approval.
On 21 October 2014, the Company announced the resignation of
James Slade as Non-Executive Director to focus on his other
business interests. We would like to thank James for his services
and valuable contribution to the Company and, on behalf of the
Board, I wish him all the best for the future.
I would also like to take this opportunity to once again thank
all of our shareholders, advisers and other stakeholders for their
support and patience as we continue to seek to secure a suitable
opportunity to generate long-term shareholder value.
Dr. Bernard Olivier
Executive Chairman
10 November 2014
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2014
Notes 2014 2013
GBP GBP
Administrative expenses (640,483) (94,133)
------------ ------------
Operating loss 6 (640,483) (94,133)
Finance income 5 -
Finance expenses (24,399) (13,084)
------------ ------------
Loss before taxation (664,877) (107,217)
Taxation 3 - -
------------ ------------
Loss for the year (664,877) (107,217)
Since there is no other comprehensive income, the loss for the
year is the same as the total comprehensive loss for the year.
Attributable to:
Equity holders of the Company (664,877) (107,217)
Loss per share attributable to the equity holders of the Company
during the year (pence) was:
Basic & Diluted 4 (2.10p) (0.36p)
Consolidated Statement of Financial Position
As at 30 June 2014
Notes 2014 2013
ASSETS GBP GBP
Non-current assets
Investments: Goodwill 703,908 1,145,000
Licences - 37,745
-------------- --------------
703,908 1,182,745
-------------- --------------
Current assets
Trade and other receivables 15,528 19,268
Cash at bank and in hand 11,210 11,569
-------------- --------------
26,738 30,837
-------------- --------------
LIABILITIES
Current liabilities
Trade and other payables (303,548) (394,207)
-------------- --------------
(303,548) (394,207)
-------------- --------------
Net current (liabilities)/assets (276,810) (363,370)
Non-current liabilities
Financial liabilities -
borrowings and interest
bearing loans - (200,000)
-------------- --------------
427,098 619,375
EQUITY
Capital and reserves attributable to equity holders of the Company;
Share capital 5 114,982 106,679
Share premium 4,073,633 3,558,869
Share option reserve - 50,467
Accumulated losses (3,762,145) (3,097,268)
-------------- --------------
426,470 618,747
Minority interests 628 628
-------------- --------------
427,098 619,375
Consolidated Statement of Changes in Equity
For the year ended 30 June 2014
Non-distributable Non-distributable Non-distributable
Distributable
Share Capital Share Premium Share Options Accumulated Total
Reserve Losses Equity
GBP GBP GBP GBP GBP
Balance at 1 July
2012
attributable to
equity
shareholders 104,534 3,453,763 50,467 (2,990,051) 618,713
Conversion of loan
stock
together with
accrued
interest 2,145 105,106 - - 107,251
Total
comprehensive
income
for the period - - - (107,217) (107,217)
-------------- -------------- -------------- -------------- ------------
Balance at 30
June
2013 106,679 3,558,869 50,467 (3,097,268) 618,747
Conversion of loan
stock
together with
accrued
interest 8,303 514,764 - - 523,067
Movement in share
option reserve - - (50,467) - (50,467)
Total
comprehensive
income
for the period - - - (664,877) (664,877)
-------------- -------------- -------------- -------------- ------------
Balance at 30 June
2014 114,982 4,073,633 - (3,762,145) 426,470
Consolidated Statement of Cash Flow
For the year ended 30 June 2014
2014 2013
GBP GBP
Cash flows from operating activities
before changes in working capital
and provisions
Operating loss (664,877) (94,133)
Non-cash movement in share option (50,467) -
reserve
Impairment expense 478,837 -
Finance income 5 -
Finance cost (24,399) (13,084)
(Increase)/decrease in trade and
other receivables 3,740 (296)
Increase/(decrease) in trade and
other payables 256,802 (8,661)
------------ ------------
Cash absorbed by operating activities (359) (116,174)
Cash flows from investing activities - -
------------ ------------
Cash absorbed by investing activities - -
------------ ------------
Cash flows from financing activities - -
------------ ------------
Net cash from financing activities - -
------------ ------------
Net (decrease)/increase in cash
and
cash equivalents (359) (116,174)
Cash and cash equivalents at 30
June 2013 11,569 127,743
------------ ------------
Cash and cash equivalents at 30
June 2014 11,210 11,569
A major non cash movement relating to the conversion of unsecured
loan notes into equity has contributed to the net cash movement
of (GBP359).
Notes forming part of the financial information
For the year ended 30 June 2014
1. General information
LP Hill Plc is currently a mineral exploration company. The
Company is a public limited company quoted on AIM, a market
operated by the London Stock Exchange plc, and is incorporated in
England and Wales with company number 05980987. The address of the
registered office of the Company is 30 Portland Place, London W1B
1LZ.
The financial information has been prepared on a going concern
basis (see Note 8 below).
2. Basis of preparation and accounting policies
The audited financial information set out above, which
incorporates the financial information of the Company and its
subsidiary undertakings (the "Group"), has been prepared using the
historical cost convention and in accordance with International
Financial Reporting Standards (IFRS), including IFRS 6 'Exploration
for and Evaluation of Mineral Resources' and IFRIC interpretations
issued by the International Accounting Standards Board (IASB) as
adopted by the European Union and with those parts of the Companies
Act 2006 applicable to companies reporting under IFRS.
The audited financial information contained in this announcement
does not constitute the Company's full financial statements for the
year ended 30 June 2014 or 2013, but is derived from those
financial statements, approved by the board of directors. The
auditors' report on the 2014 accounts was (i) unqualified, but did
include an emphasis of matter paragraph relating to going concern,
and (ii) did not contain any statement under section 498(2) or (3)
of the Companies Act 2006. The full audited financial statements
for the year ended 30 June 2014 will be delivered to the Registrar
of Companies and filed at Companies House following the Company's
forthcoming annual general meeting.
The Group's principal accounting policies have been consistently
applied.
3. Taxation
2014 2013
GBP GBP
Current tax expense - -
Deferred tax expense - -
---------- ----------
- -
Reconciliation of effective tax rates GBP GBP
Loss before tax (664,877) (107,217)
Non-cash movement in share option reserve (50,467) -
Impairment of goodwill 441,092 -
Impairment of licences 37,745 -
---------- ----------
(236,507) (107,217)
Tax using domestic rates of corporation
tax of 20% (2013: 20.00%) (47,301) (21,443)
Effect of:
Expenses not deductible for tax purposes - -
Losses carried forward 47,301 21,443
---------- ----------
- -
The Company has estimated excess management expenses to carry
forward of GBP921,000 (2013: GBP709,079) and estimated non trading
deficits carried forward of GBP92,000 (2013: GBP67,611). Deferred
tax assets arising at 20% (2013: 20%) from these losses of
GBP202,600 (2013: GBP155,300) have not been provided for in these
financial statements as their recovery is not probable in the
foreseeable future.
4. Losses per share
Losses per ordinary share have been calculated using the
weighted average number of shares in issue during the relevant
financial year. The weighted average number of shares in issue was
basic 31,626,887 (2013: 29,418,869). The fully diluted weighted
average number of shares was 211,221,403 (2013: 202,698,869). The
loss for the financial year was GBP664,877 (2013: GBP107,217).
5. Share capital
2014 2013
GBP GBP
Allotted, called up and fully paid
38,441,403 (2013: 30,137,806) ordinary
shares of 0.1p each 38,441 30,138
172,780,000 deferred shares of 0.0443p
each 76,541 76,541
-------------- --------------
114,982 106,679
On 17 March 2014, 354,879 ordinary shares were issued at a price
of 6.5p each and 4,615,385 ordinary shares at the price of 6.5p
each were issued from the conversion of unsecured loan notes.
On 26 June 2014, 3,333,333 ordinary shares were issued at a
price of 6p each from a conversion of unsecured loan notes.
Number of outstanding existing Warrants at 30 June 2013 and 30
June 2014:
Date of At Granted Exercised Forfeits At Exercise Exercise/
grant 30.06.13 /vested 30.06.14 price Vesting date
From To
16.09.08 110,000 - -- 110,000 - 0.1p 16.09.08 25.08.13
------------ -------- ---------- ---------- ----------
110,000 - - 110,000 -
The warrants were forfeited in the year, resulting in a
GBP50,467 credit back to administrative expenses.
6. Operating loss
2014 2013
GBP GBP
Operating loss is stated after
charging:
Directors' fees and emoluments 58,000 -
Auditors' fees: - Audit 16,755 4,000
- Other services 1,200 845
Goodwill impairment provision 441,092 -
Licences impairment provision 37,745 -
Due diligence costs, advisory
fees and travel costs on potential
new project opportunities 37,940 19,893
Staff costs during the year. 2014 2013
GBP GBP
Directors' fees including consultancy 58,000 -
fees
Wages and salaries - -
-------------- ------------
Total staff costs 58,000 -
The average number of people (including executive directors)
employed during the year was:
2014 2013
No. No.
Total 3 3
7. Events after the reporting period
On 15 July 2014, the final repayment date for the unsecured
GBP150,000 term loan obtained from a private lender was extended
from 11 July 2014 to 11 January 2015.
On 9 September 2014, the Company announced that Kijani Resources
Limited, an existing substantial shareholder, had subscribed for
1,000,000 new ordinary shares at a price of 40.5 pence per share to
raise approximately GBP405,000 before expenses.
Save for the above matters, there were no events after the
reporting period that are required to be disclosed.
8. Going concern
The audited financial information has been prepared on the
assumption that the Group is a going concern which the Directors
believe to be appropriate. When assessing the foreseeable future,
the Directors have considered a period of twelve months from the
date of approval of the financial statements. The Directors
acknowledge that the Group will be likely to continue making
operating losses for the foreseeable future and therefore the Group
and Company remain reliant upon their ability to raise finance
through other means. The Group is still at an early stage with
respect to its Marodambo exploration project in the Tranomaro area
of Madagascar and the Directors are currently exploring options to
raise further funds to finance the Group's projected working
capital requirement over the next twelve month period. The
uncertainty as to the timing and amount of such a fund raising
exercise requires the Directors to consider the Group's ability to
continue as a going concern. On 9 September 2014, the Company
announced that it had raised GBP405,000 before expenses via a
subscription for new ordinary shares by Kijani Resources Limited
("Kijani"), an existing substantial shareholder in the Company.
Kijani subscribed for 1,000,000 new ordinary shares at a price of
40.5 pence per share.
The support of the Group's shareholders has been evident in the
recent past and continues to be of significant importance.
Notwithstanding the aforementioned uncertainty, the Directors are
confident that sufficient support will be received from existing
shareholders and potential new investors to enable the funding
requirement to 30 November 2015 to be satisfied. The Directors will
continue to carefully manage the Group's existing resources and
control costs at all times.
Accordingly, the Directors are confident that the going concern
basis is appropriate and are satisfied that new financing and/or
investment will be forthcoming in the period as and when
required.
Were the Group to be unable to continue as a going concern,
adjustments may have to be made to the balance sheet of the Group
to reduce the balance sheet values of assets to their recoverable
amounts, to provide for future liabilities that might arise and to
reclassify non-current assets and long-term liabilities as current
assets and liabilities.
9. Related party transactions
The Company charged a management fee of GBP14,990 (2013:
GBP12,796) to Tranomaro Mineral Development Corporation Limited
("TMDCL") in the year and, at the financial year end, TMDCL had a
balance of GBP522,368 (2013: GBP496,309) payable to the
Company.
10. Availability of Annual Report and Financial Statements
Copies of the Company's full Annual Report and Financial
Statements are being posted to shareholders today and, once posted,
will also be made available to download from the Company's website
at www.lphill.com.au.
The Annual Report and Financial Statements will also be made
available for inspection at the Company's registered office during
normal business hours on any weekday. LP Hill Plc is registered in
England and Wales with registered number 05980987. The registered
office is at 30 Portland Place, London W1B 1LZ.
11. Annual General Meeting
The Company's next Annual General Meeting ("AGM") will be held
at 10.00 a.m. on Friday, 5 December 2014 at the offices of Joelson
Wilson LLP, 30 Portland Place, London W1B 1LZ and a formal Notice
of AGM is set out at the end of the Annual Report and Financial
Statements being posted to shareholders today.
For further information, please contact:
LP Hill Plc Tel: +61 8 9368
1566
Bernard Olivier, Executive Chairman Mob: +61 40 894
8182
Strand Hanson Limited (Nominated Adviser) Tel: +44 (0)20 7409
3494
James Harris
Matthew Chandler
James Dance
Pareto Securities Limited (Broker) Tel: +44 (0)20 7786
4370
Guy Wilkes
or visit: www.lphill.com.au
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LLFSRLALILIS
Emerging Mkt (LSE:EMM)
Historical Stock Chart
From May 2024 to Jun 2024
Emerging Mkt (LSE:EMM)
Historical Stock Chart
From Jun 2023 to Jun 2024