TIDMGUN
RNS Number : 8273F
Gunsynd PLC
23 February 2018
23 February 2018
Gunsynd plc
("Gunsynd", or "the Company")
Interim Results for the six months ended 31 January 2018
Chairman's Statement
I am pleased to report the interim results for the six months
ended 31 January 2018.
Review of Investments
Oyster Oil and Gas Limited ("Oyster")
Oyster is an international energy group focused on oil and gas
exploration and production activities in underexplored hydrocarbon
basins. Oyster currently operates 4 blocks in the Republic of
Djibouti (100% interest); 3 blocks are located onshore and 1 block
offshore, also the sole interest holder in 1 onshore block in the
Republic of Madagascar.
Oyster has announced its intention to seek admission to trading
on AIM and guidance provided by the company is that this will occur
in H1 2018.
United Oil and Gas Limited ("UOG")
UOG is an independent oil & gas start-up established in 2015
by a former Tullow Oil team. Its strategy is to acquire assets
where the management team's experience can drive near-term activity
and unlock previously untapped value. Two deals have been completed
since August 2016, providing UOG with a material stake in two
licences: PL090 onshore UK, and Podere Gallina onshore Italy. UOG
is listed on the main market of the London Stock Exchange by way of
a standard listing. Since its listing date, UOG has made a number
of investments and its progress has been reflected in its share
price.
Brazil Tungsten Holdings Limited ("BTHL")
Bodo has achieved break-even production of 14 tonnes per month
("tpm") consistently from October 2017 to January 2018. BTHL raised
further funding of US$2.1m in the period to develop its project. It
is also in the process of cancelling its existing off-take
arrangements in order to allow it to seek new ones and pre-payments
which will allow BTHL to finance its exploration programme earlier
than previously planned. Due to supply constraints in the tungsten
concentrate market, BTHL has been approached by various companies
wishing to enter into an off-take agreement to secure supply, and
the coming months will see BTHL choose the best deal.
Since July 2017, the selling price of Bodo's concentrate has
increased from US$180/mtu (metric tonne unit) to US$240/mtu, a rise
of 33%. BTHL is seeking to upgrade its plant in order to produce up
to 60 tonnes per month of concentrate (dependant on feed grade).
Management expect the upgraded plant to be completed by the
beginning of Q4.
Horse Hill Developments Limited ("HHDL")
The Company currently owns a 2% direct interest in Horse Hill
Developments Limited. HHDL is a special purpose company that owns a
65% participating interest and operatorship of Licence PEDL137 and
the adjacent Licence PEDL246 in the UK Weald Basin.
In December 2017, the Company was informed by HHDL that key
contracts and the requisite funding commitments from all
participants are in place to undertake the production flow testing
and drilling campaign approved by Surrey County Council ("SCC") in
October 2017. The 2018 programme is planned to commence directly
upon the discharge of SCC's pre-commencement planning conditions.
Environment Agency approval for the full programme was granted in
September 2017.
Sunshine Minerals ("Sunshine")
Gunsynd holds a 10% stake in this company (and a loan note
convertible into a further 10%) which is a nickel and bauxite
exploration company focussing on the Solomon Islands. Sunshine
similarly to a number of other applicants is still awaiting a
decision on its licence. Three changes of Minister of Mines and a
change of government have not exactly expedited matters. On the
positive side, the price of nickel has appreciated over the past
year.
Human Brands
Gunsynd has invested GBP130k by way of a convertible loan note
in Human Brands, a private US company that produces, distributes
and markets premium spirits, wine and beer in the USA and Asia. One
of its flagship products is Copa Imperial Tequila, a nine year aged
premium tequila. Since we made the investment, Bacardi purchased
tequila maker Patron Spirits International for $5.1bn which we see
as helpful in validating our investment. We expect to be able to
update shareholders in the near future regarding progress being
made at Human Brands.
Alba Mineral Resources ("Alba") and Zenith Energy ("Zenith")
Gunsynd maintains very small residual holdings in both these
companies. Alba has made decent progress with its Greenland
investments which look to have good potential, particularly on the
back of the success of Bluejay Mining nearby.
Zenith continues to struggle and remains the worst of the
portfolio. We haven't entirely given up on the assets being capable
of good production and keep an eye on the company. A change of
senior management would see us consider reinvesting in the company
as would trimming of three brokers plus a financial adviser.
Fastbase Inc ("Fastbase")
As announced on 2 February 2018, we have come to an agreement
with Fastbase Inc, a privately owned and rapidly growing Danish
SaaS (software as a service) company, to assist them list in London
in return for a corporate finance fee.
Built upon Google Analytics software, Fastbase's software
generates comprehensive lead reports that include extensive company
profiles, visitor interaction, key employees with LinkedIn profile
and email addresses. The insights provided by Fastbase enable B2B
businesses to contact their online leads in real-time.
Fastbase's popular web leads add-on to Google Analytics is now
widely used, including by well-known brands. It is targeting
admission to AIM in Q2, 2018.
Finance Review
The Company's loss for the period was GBP156,000 (31 January
2017 - GBP342,000 gain). The market valuation gain for available
for sale assets was a loss of GBP25,000 (31 January 2017 -
GBP487,000 gain).
The Company had net assets at 31 January 2018 of GBP3,110,000
(2017: GBP2,671,000) including cash balances of GBP449,000 (2017:
GBP238,000).
Outlook
With BTHL having turned a corner, UOG share price performing
very strongly since listing and a number of other investments
looking to list in London in the near future, we believe the
outlook is promising. Human Brands in particular we believe could
generate substantial returns for shareholders. We also continue to
scour the globe for other investment opportunities and are
currently carrying out due diligence on a handful of deals. It
promises to be a hectic next six months. We look forward to it.
The Board would also like to take this opportunity to thank our
shareholders for their continued support.
Hamish Harris
Chairman
For further information, please contact:
Gunsynd plc:
+44 (0) 20 7440
Hamish Harris 0640
Nominated Adviser
/ NEX Exchange Corporate
Adviser:
Cairn Financial
Advisers LLP
James Caithie/Liam +44 (0) 20 7213
Murray 0880
Joint Broker:
Peterhouse Corporate
Finance
+44 (0) 20 7469
Lucy Williams 0930
The interim results will be available electronically on the
Company's website: www.gunsynd.com.
Gunsynd plc
Interim statement of comprehensive income - unaudited
For the six months ended 31 January 2018
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 January 31 January 31 July
2018 2017 2017
GBP'000 GBP'000 GBP'000
------------------------------------------ ------------ ------------ ---------
Unrealised profit/(loss)
on available for sale assets (25) 487 417
Realised Profit on available
for sale assets - - 408
------------------------------------------ ------------ ------------ ---------
(25) 487 825
Administrative costs (131) (145) (352)
Other Income - - 18
Finance income - - 1
Loss before tax (156) 342 492
Taxation - - -
------------------------------------------ ------------ ------------ ---------
Loss for the period (156) 342 492
------------------------------------------ ------------ ------------ ---------
Loss for the period and total
comprehensive loss attributable
to equity shareholders (156) 342 492
------------------------------------------ ------------ ------------ ---------
Other comprehensive income/(expenditure) - - -
for the period net of tax
Total comprehensive income/(expenditure)
for the period (156) 342 492
------------------------------------------ ------------ ------------ ---------
Loss per ordinary share
Basic (0.003) 0.019 0.017
Diluted (0.003) 0.019 0.015
Gunsynd plc
Interim statement of financial position - unaudited
As at 31 January 2018
Unaudited Unaudited Audited
At 31 January 2018 At 31 January 2017 At 31 July 2017
GBP'000 GBP'000 GBP'000
------------------------------------------ --------------------------------- -------------------- -----------------
ASSETS
Non-current assets
Available for sale investments 2,636 2,378 2,585
------------------------------------------ --------------------------------- -------------------- -----------------
Total non-current assets 2,636 2,378 2,585
------------------------------------------ --------------------------------- -------------------- -----------------
Current assets
Trade and other receivables 147 92 486
Cash and cash equivalents 449 238 372
------------------------------------------ --------------------------------- -------------------- -----------------
Total current assets 596 330 858
Total assets 3,232 2,708 3,443
------------------------------------------ --------------------------------- -------------------- -----------------
LIABILITIES
Current liabilities
Trade and other payables (122) (37) (177)
------------------------------------------ --------------------------------- -------------------- -----------------
Total current liabilities (122) (37) (177)
------------------------------------------ --------------------------------- -------------------- -----------------
Total liabilities (122) (37) (177)
------------------------------------------ --------------------------------- -------------------- -----------------
Net assets 3,110 2,671 3,266
------------------------------------------ --------------------------------- -------------------- -----------------
EQUITY
Equity attributable to equity holders of
the company
Ordinary share capital 489 376 489
Deferred share capital 1,729 1,729 1,729
Share premium reserve 10,540 10,208 10,540
Share-based payments reserve 174 174 174
Retained earnings (9,822) (9,816) (9,666)
------------------------------------------ --------------------------------- -------------------- -----------------
Total equity 3,110 2,671 3,266
------------------------------------------ --------------------------------- -------------------- -----------------
Gunsynd plc
Interim statement of changes in equity - unaudited
For the six months ended 31 January 2018
Ordinary Share Deferred share Share Premium Share Based Retained Total
Capital capital Payment Reserve earnings
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- ----------------- ----------------- -------------- ---------------- ----------------- --------
Unaudited
At 1 August 2016 123 1,729 9,439 174 (10,158) 1,307
Profit for the
six month
period ended 31
January 2017 - - - - 342 342
----------------- ----------------- ----------------- -------------- ---------------- ----------------- --------
Total
comprehensive
loss - - - - 342 342
Transactions
with owners:
Issue of share
capital 253 - 848 - - 1,101
Cost of share
issue - - (79) - - (79)
----------------- ----------------- ----------------- -------------- ---------------- ----------------- --------
At 31 January
2017 376 1,729 10,208 174 (10,270) 2,671
----------------- ----------------- ----------------- -------------- ---------------- ----------------- --------
Audited
At 1 August 2016 123 1,729 9,439 174 (10,125) 1,307
Loss for the
year - - - - (492) (492)
----------------- ----------------- ----------------- -------------- ---------------- ----------------- --------
Total
comprehensive
loss - - - - (492) (492)
Transactions
with owners:
Issue of share
capital 366 - 1,185 - - 1,551
Share issue
costs (84)
At 31 July 2017 489 1,729 10,540 174 (9,666) 3,266
----------------- ----------------- ----------------- -------------- ---------------- ----------------- --------
Unaudited
At 1 August 2017 489 1,729 10,540 174 (9,666) 3,266
Loss for the six
month period
ended 31
January 2018 - - - - (156) (156)
----------------- ----------------- ----------------- -------------- ---------------- ----------------- --------
Total
comprehensive
loss - - - - (156) (156)
At 31 January
2018 489 1,729 10,540 174 (9,822) 3,110
----------------- ----------------- ----------------- -------------- ---------------- ----------------- --------
Gunsynd plc
Interim statement of cash flows - unaudited
For the six months ended 31 January 2018
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 January 31 January 31 July
2018 2017 2017
GBP'000 GBP'000 GBP'000
---------------------------------- ------------ ------------ ---------
Cash flows from operating
activities
(Loss)/profit after tax (156) 342 492
Other income - - (15)
Finance income net of finance
costs - - (1)
Unrealised Revaluation of
AFS assets 25 (487) (417)
(Loss)/profit on sale of
AFS Asset - - (408)
Operating cash outflow before
changes in working capital (131) (145) (349)
Movement in trade and other
receivables 339 10 6
Movement in trade and other
payables (55) (125) 15
Cash flow from operations 153 (260) (328)
Tax received - - -
---------------------------------- ------------ ------------ ---------
Net cash flows used in operating
activities 153 (260) (328)
Cash flow from investing
activities
Payments for investments
in AFS assets (76) (882) (1,873)
Disposal proceeds from sale
of AFS asset - - 1,137
Finance income - - 1
Net cash outflow from investing
activities (76) (882) (735)
Cash flows from financing
activities
Proceeds on issuing of ordinary
shares - 1,101 1,161
Cost of issue of ordinary
shares - (79) (84)
---------------------------------- ------------ ------------ ---------
Net cash inflow from financing
activities - 1,022 1,077
Net (decrease)/increase in
cash and cash equivalents 77 (120) 14
Cash and cash equivalents
at start of period 372 358 358
Cash and cash equivalents
at end of period 449 238 372
---------------------------------- ------------ ------------ ---------
Notes to the interim report
For the six months ended 31 January 2018
1 Basis of preparation
As permitted IAS 34, 'Interim Financial Reporting' has not been
applied to these half-yearly results. The financial information of
the Company for the six months ended 31 January 2018 have been
prepared in accordance with the recognition and measurement
principles of International Financial Reporting Standards,
International Accounting Standards and Interpretations
(collectively "IFRS") issued by the International Accounting
Standards Board ("IASB") as adopted by the European Union ("adopted
IFRS") and are in accordance with IFRS as issued by the IASB. The
condensed interim financial information has been prepared using the
accounting policies which will be applied in the Company's
statutory financial statements for the year ending 31 July
2017.
The financial information shown in this publication is unaudited
and does not constitute statutory accounts as defined in Section
434 of the Companies Act 2006. The comparative figures for the
financial year ended 31 July 2017 have been derived from the
statutory accounts for 2017. The statutory accounts have been
delivered to the Registrar of Companies. The auditors have reported
on those accounts; their report was unqualified and did not contain
statements under the section 498(2) or 498(3) of the Companies Act
2006.
2 Loss per share
The calculation of the loss per share is based on the loss
attributable to ordinary shareholders divided by the weighted
average number of shares in issue during the period.
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
31 January 2018 31 January 2017 31 July 2017
GBP'000 GBP'000 GBP'000
Loss on ordinary activities after tax (156) 342 492
Weighted average number of ordinary shares for the
purposes of basic earnings/(loss) per share
(millions) 4,882,924,490 1,763,397,927 2,783,286,442
Weighted average number of ordinary shares for the
purposes of diluted earnings/(loss) per
share (millions) 4,915,575,330 1,796,048,767 2,815,937,282
Basic (loss)/earnings per share (expressed in pence) (0.003) 0.019 0.018
Diluted (loss)/earnings per share (expressed in pence) (0.003) 0.019 0.017
However, due to losses incurred in the year there is no dilutive
effect from the potential exercise of the share options in
existence.
3 Events after the end of the reporting period
On 2 February 2018, the Company announced it had entered into an
agreement with Fastbase Inc ("Fastbase"), a privately owned Danish
SaaS (software as a service) company whereby the Company will
assist Fastbase in pursuing admission to trading on AIM for a
consulting fee of 0.75% of its market capitalisation subject to
completion of the IPO. Such fee is to be paid and settled fully in
new ordinary shares of Fastbase at the admission price to AIM.
On 12 February 2018, the Company announced that it had agreed to
grant 30 million share options to George Garnett ("New Options").
Each New Option will entitle the holder to subscribe for new
ordinary shares of 0.01p each in the Company ("Shares") at an
exercise price of 0.05 pence per Share and are exercisable at any
time until 12 February 2023, which represents a premium of circa 25
per cent over the closing mid-price on 9 February 2018.
5. Financial Information
The Board of Directors approved this interim report on 23
February 2018.
A copy of this report can be obtained from our website at
www.gunsynd.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DMGZZDFVGRZM
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