TIDMLDP
RNS Number : 6195T
Leed Resources PLC
31 March 2016
Leed Resources plc
("Leed" or "the Company")
Half-yearly report for the six months ended 31 December 2015
Leed Resources plc, (AIM: LDP), the natural resource investment
company, is pleased to announce its un-audited results for the six
months ended 31 December 2015.
Chairman's statement
I am pleased to present the half-yearly results for your company
for the six months ended 31 December 2015. During the period, we
increased our investment in the Western Australian limestone
business, High Mannor ("HM"), through a participation in a further
issue of secured convertible notes by Battalion International Ltd.
("Battalion"), which is the majority shareholder in HM. This has
increased our investment in Battalion to A$1,680,000 (GBP 923,000)
and, as with the initial investment, our investment is in secured
convertible notes.
OPERATIONAL UPDATE
Operationally, the period was a frustrating time for HM as it
initially experienced delays in the deliveries of the moulds for
the new generation wall panels and then, following receipt, it was
discovered that the dimensions of the moulds were marginally
outside of acceptable tolerances. This meant that rectification
work was required, leading to further delays in the production and
market deliveries of wall panels.
However, HM completed these rectifications and began producing
wall panels at its quarry, ready for commencement of deliveries to
the market in early 2016. HM also received confirmation in December
2015, from the Australian Patent Office, that all of its patent
applications had been approved.
SUBSEQUENT EVENTS
Since the end of the period there have been significant
operational and corporate developments for Leed. From an
operational standpoint, the first commercial deliveries of the new
wall panels were successfully undertaken by HM in late January
2016. Subsequent interest in further panel deliveries by a number
of HM customers support our belief that the wall panels can
establish a very significant market presence and be a highly
profitable business for HM.
The Company's ordinary shares were suspended from trading on AIM
on 12 February 2016, due to the fact that the Company had not
implemented its investing policy as approved at the general meeting
on 12 February 2015. Whilst your Board has obviously been aware of
this risk, it was felt that the operational delays at HM meant that
it was not in the interest of the Leed shareholders to attempt to
prematurely enter into any transaction. However, as announced on 15
February 2016, Leed has entered into a non-binding heads of terms
agreement ("Heads of Terms"), which provides for exclusivity and
includes an option to acquire up to 100% of Battalion, the majority
shareholder of HM.
Following the signature of the Heads of Terms, Leed commenced a
period of detailed due diligence. During the course of this due
diligence, it has been discovered that a senior member of HM staff,
who has since been dismissed and reported to the police, had been
involved in fraudulent activities which has resulted in losses for
the HM business. During the next couple of months, Leed will
ascertain the impact of these fraudulent activities and any other
operational issues, on the current value of the HM business and as
part of this will consider the potential need to amend the terms of
any transaction with Battalion, as provided for in the Heads of
Terms.
HM has previously relied on alternative sources of working
capital finance to fund the gap between production and payment for
the blocks and panels. These sources of financing have now expired
and accordingly, Leed has agreed to contribute A$250,000 to a short
term working capital facility along with two other Battalion loan
noteholders, which will accrue interest at a rate of 12% per annum.
The loan will be secured against trade receivables and stock held
at the quarrying and processing site of HM.
We will continue to update shareholders on a timely basis and
your Board would like to thank you for your continued patience and
support.
Ian Gibbs
Chairman
31 March 2016
Unaudited statement of comprehensive income
for the six months ended 31 December 2015
Six months Six months Year
ended ended ended
31 Dec 31 Dec 30 Jun
2015 2014 2015
Note GBP000 GBP000 GBP000
-------------------------------- ----- ----------- ----------- ---------
Continuing operations
Net gain/(loss) on investments 13 - (62)
Investment income 49 4 39
-------------------------------- ----- ----------- ----------- ---------
62 4 (23)
Administrative expenses (98) (104) (201)
Share based payments - - (67
Loss before taxation (36) (100) (291)
Taxation - - -
-------------------------------- ----- ----------- ----------- ---------
Total comprehensive
loss for the period (36) (100) (291)
-------------------------------- ----- ----------- ----------- ---------
Loss per share (pence) 3
Basic and diluted (0.001p) (0.001p) (0.001p)
-------------------------------- ----- ----------- ----------- ---------
Unaudited statement of changes in equity
for the six months ended 31 December 2015
Option
&
Share Share warrant Retained
capital premium reserve earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000
------------------------- -------- -------- --------- ---------- -------
Total owners' equity
at 30 June 2014 36,838 77,101 - (112,415) 1,524
------------------------- -------- -------- --------- ---------- -------
Transactions with
owners:
- Share capital issued - - - - -
by Company
- Share issue costs - - - - -
Total transactions - - - - -
with owners
- Comprehensive loss:
- Loss for the period - - - (100) (100)
Total comprehensive
loss for the period - - - (100) (100)
------------------------- -------- -------- --------- ---------- -------
Total owners' equity
at 31 December 2014 36,838 77,101 - (112,515) 1,424
------------------------- -------- -------- --------- ---------- -------
Transactions with
owners:
- Share based payment
expense - - 67 - 67
------------------------- -------- -------- --------- ---------- -------
Total transactions
with owners - - 67 - 67
Comprehensive loss:
- Loss for the period - - - (191) (191)
Total comprehensive
loss for the period - - - (191) (191)
------------------------- -------- -------- --------- ---------- -------
Total owners' equity
at 30 June 2015 36,838 77,101 67 (112,706) 1,300
------------------------- -------- -------- --------- ---------- -------
Transactions with
owners:
- Share capital issued
by the Company 33 - - - 33
------------------------- -------- -------- --------- ---------- -------
Total transactions
with owners 33 - - - 33
Comprehensive loss:
- Loss for the period - - - (36) (36)
Total comprehensive
loss for the period - - - (36) (36)
------------------------- -------- -------- --------- ---------- -------
Total owners' equity
at 31 December 2015 36,871 77,101 67 (112,742) 1,297
------------------------- -------- -------- --------- ---------- -------
Statement of financial position
as at 31 December 2015
31 Dec 31 Dec 30 Jun
2015 2014 2015
Note GBP000 GBP000 GBP000
----------------------------- ----- ---------- ---------- ----------
Assets
Non--current assets
Investments 4 923 - 684
923 - 684
----------------------------- ----- ---------- ---------- ----------
Current assets
Trade and other receivables 59 24 46
Cash and cash equivalents 329 1,410 663
----------------------------- ----- ---------- ---------- ----------
388 1,434 709
----------------------------- ----- ---------- ---------- ----------
Liabilities
Current liabilities
Trade and other payables 14 10 93
14 10 93
----------------------------- ----- ---------- ---------- ----------
(MORE TO FOLLOW) Dow Jones Newswires
March 31, 2016 02:00 ET (06:00 GMT)
Net current assets 374 1,424 616
----------------------------- ----- ---------- ---------- ----------
Net assets 1,297 1,424 1,300
----------------------------- ----- ---------- ---------- ----------
Owners' equity
Ordinary Share Capital 2 36,871 36,838 36,838
Share premium 77,101 77,101 77,101
Share option and warrant
reserve 67 - 67
Retained earnings (112,742) (112,515) (112,706)
----------------------------- ----- ---------- ---------- ----------
Total owners' equity 1,297 1,424 1,300
----------------------------- ----- ---------- ---------- ----------
Unaudited statement of Cash Flows
for the six months ended 31 December 2015
Six months Six months Year
ended ended ended
31 Dec 31 Dec 30 Jun
2015 2014 2015
GBP000 GBP000 GBP000
------------------------------ ----------- ----------- --------
Loss before taxation (36) (100) (291)
Adjustments for:
Unrealised (gain)/loss
on investments (14) - 62
Share based payments
expense - - (67)
Investment income (49) (5) (39)
Changes in working capital
Decrease in trade and
other receivables (13) (10) (32)
Increase / (decrease)
in payables (79) (25) 58
Net cash flow from operating
activities (191) (140) (175)
------------------------------- ----------- ----------- --------
Cash flows from investing
activities
Purchase of investments (225) - (746)
Investment income 49 5 39
------------------------------- ----------- ----------- --------
Net cash from investing
activities (176) 5 (707)
------------------------------- ----------- ----------- --------
Cash flows from financing
activities
Proceeds from issue of
Ordinary Shares 33 - -
Share issue costs - - -
Net cash from/(used in)
financing activities 33 - -
------------------------------ ----------- ----------- --------
Net (decrease) in cash
and cash equivalents (334) (135) (882)
Cash and cash equivalents
at beginning of period 663 1,545 1,545
------------------------------- ----------- ----------- --------
Cash and cash equivalents
at end of period 329 1,410 663
------------------------------- ----------- ----------- --------
Notes to the interim accounts
for the six months ended 31 December 2015
1. General information and accounting policies
Leed Resources PLC is a company incorporated in the United
Kingdom.
These unaudited condensed interim financial statements for the
six months ended 31 December 2015 have been prepared in accordance
with IAS 34 "Interim Financial Reporting" as adopted by the
European Union and do not constitute statutory accounts as defined
in Section 434 of the Companies Act 2006. This condensed set of
financial statements has been prepared applying the accounting
policies that were applied in the preparation of the Company's
published consolidated financial statements for the year ended 30
June 2015.
The comparative statement of financial position at the financial
year ended 30 June 2015 has been extracted from the Company's
statutory accounts which have been reported on by the Company's
auditor and delivered to the Registrar of Companies. The report of
the auditors was unqualified and did not contain a statement under
the Companies Act 2006 regarding matters which are required to be
noted by exception.
2. Issued capital
A recap of issued capital follows:
31 Dec 31 Dec 30 June
2015 2014 2015
---------------------------- ------- ------- --------
Issued and fully paid GBP000 GBP000 GBP000
---------------------------- ------- ------- --------
3,138,077,765 Ordinary
Shares of 0.1 pence each 3,138 3,105 3,105
67,602,008 Deferred Shares
of 49.9 pence each 33,733 33,733 33,733
36,872 36,838 36,838
---------------------------- ------- ------- --------
The Company issued 32,900,000 Ordinary Shares at a deemed price
of 0.1p for a total consideration of GBP32,900 to PG Mining
Management ("PGMM") pursuant to an agreement between PGMM and the
Company.
This agreement provided for a payment, part of which could be
settled in shares, for their consultancy work on behalf of the
Company. PGMM has elected to have the larger portion of their
payment in shares with the number of shares determined by a nominal
price of 0.1p. The shares were issued on 23 November 2015.
The restricted rights attaching to the deferred shares are such
that the deferred shares have no economic value.
3. Loss per Ordinary Share
The loss per share has been calculated based on the following
results and weighted average number of shares:
31 Dec 31 Dec 30 Jun
2015 2014 2015
----------------------------- -------------- -------------- --------------
Loss attributable to (GBP36,000) (GBP100,000)
Ordinary Shareholders (GBP291,000)
----------------------------- -------------- -------------- --------------
Weighted average shares
in issue
Weighted average number
of shares for the purposes
of basic earnings per
share 3,111,972,330 3,105,177,765 3,105,177,765
Effect of share options
in issue - - -
----------------------------- -------------- -------------- --------------
Weighted average number
of shares for the purposes
of diluted earnings per
share 3,383,972,330 3,105,177,765 3,173,177,765
----------------------------- -------------- -------------- --------------
Basic and diluted loss
per share (pence) (0.001p) (0.001p) (0.001p)
----------------------------- -------------- -------------- --------------
4. Fixed asset investments
The company operates as an investment company in the natural
resources industry.
31 Dec 31 Dec 30 June
2015 2014 2015
--------- ------- ------- --------
GBP000 GBP000 GBP000
--------- ------- ------- --------
LEVEL 2 923 - 684
Total 923 - 684
--------- ------- ------- --------
LEVEL 2 - Valuations in this level are those valued using
observable inputs other than quoted prices included in Level 1.
The Level 2 investment relates to an initial investment of
A$1,200,000 plus certain expenses incurred in concluding the
initial investment in Battalion International Limited ("Battalion")
in January 2015. A further investment of A$480,000 was made in late
July 2015 through participation in a A$1.3 million increase in the
convertible note issue of Battalion. The new notes were issued on
identical terms to the original notes and all notes yield 12% per
annum initially up to end 2016, thereafter to yield 14% with
coupons payable quarterly.
For further information, please contact:
Leed Resources plc
Ian Gibbs Tel: + 65 63723575
Charles Zorab Tel: + 44 203 405 4214
S P Angel Corporate Finance LLP
Ewan Leggat/ Laura Tel: + 44 203 470 0470
Harrison
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BRGDXUDXBGLG
(END) Dow Jones Newswires
March 31, 2016 02:00 ET (06:00 GMT)
Leed (LSE:LDP)
Historical Stock Chart
From Jan 2025 to Feb 2025
Leed (LSE:LDP)
Historical Stock Chart
From Feb 2024 to Feb 2025
