Neos Resources PLC Update (8853Y)
January 30 2014 - 4:46AM
UK Regulatory
TIDMNEOS
RNS Number : 8853Y
Neos Resources PLC
30 January 2014
NEOS Resources plc
("NEOS" or the "Group")
Update
Further to the announcement dated 23 December 2013 the Directors
of NEOS hereby confirm that the Group is continuing to work toward
publication of the Annual Report for the year ended 30 June 2013
which shall be published in due course but not by the end of
January 2014 as previously anticipated.
As announced on 15 October 2013, the Group's consolidated cash
balance at 30 September 2013 was approximately GBP0.5 million. By
31 December 2013, the equivalent balance is circa GBP412,000 with
GBP321,000 of that held by UK Group entities and GBP91,000 held by
Indian subsidiaries.
The wind down of the Indian business has continued as
anticipated in the announcement dated 15 October 2013 and previous
announcements. As a consequence, the residual Indian oil seed
inventory balances were liquidated in December 2013. The timing of
any subsequent distribution/remittance from India to the Group
remains uncertain as it will be tied into the dissolution of the
local entities - a process that the Board has been advised should
take twelve months to complete from now.
In the Annual report for the 18 month period ended 30 June 2012
and the interims to 31 December 2012, a contract settlement
provision in the amount of GBP250,000 was disclosed. This provision
had been established in respect of enquiries initiated by H M
Revenue & Customs in relation to the Income Tax and National
Insurance contributions paid by NEOS on certain employment
contracts that were terminated in the 2008-9 and 2010-11 tax years.
The Board now anticipates that a definitive assessment will be
issued shortly. The Board estimates that the assessment will be in
the region of GBP217,000 and that the liability will need to be
settled during the next twelve months. Accordingly, the board
anticipates that the Group's available cash balances will be
reduced in the near future.
In April 2012, the Group sold certain assets to Quinvita N.V.
and part of the consideration received was an interest bearing
loan, to be repaid by April 2017. Although the Group's receivable
is secured against the germplasm and animal feed intellectual
property sold, the Directors will now provide against the
recoverability of the GBP417,831 balance due as at 30 June 2013 as
Quinvita has entered in to a judicial reorganisation procedure to
seek protection from its creditors. Creditors will have an
opportunity to vote on the judicial reorganisation plan in March
2014.
Following a review of the UCO contract that completed as
expected in November 2013 the Board has concluded that it will not
be possible to reach sustainable profitable volumes in the near
future and therefore plans to develop the trade have been put on
hold and all revenue generating activities within the Group have
effectively ceased with effect from January 2014.
In recognition of the Group's cash position, the Board has
resolved that the Group should not attempt to conduct any business
other than safeguarding its remaining cash and therefore the Group
has become an investing company for the purposes of Rule 8 of the
AIM Rules for Companies. It is the directors' current intention to
seek approval of an investing policy at the Group's next annual
general meeting. In connection with this, the Board is continuing
to investigate the circumstances under which the Group's tax losses
might be available for future use. In the meantime, the Group has
taken action to further reduce the cash burn rate and hereby
confirms that the present directors have waived any rights to
receive remuneration for 2014 until further notice.
In conclusion, the Board continues to work toward the completion
of the overdue June 2013 Annual Report and whilst the Group remains
solvent, it is acknowledged that it will require some additional
funding for it to be considered as a going concern and to retain
its AIM listing. To that end, the Board has entered into
discussions with its major shareholders in respect of the future
direction of the Group and its funding requirements for the next 12
months.
Enquiries:
NEOS Resources plc +41 22 908 1199
Nicholas Myerson - Chief Executive
Officer
finnCap Ltd +44 (0) 20 7220 0500
Stuart Andrews
Christopher Raggett
This information is provided by RNS
The company news service from the London Stock Exchange
END
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