Half-year Report

31 August 2022

This announcement contains inside information for the purposes of Article 7 of the UK Market Abuse Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018

B ISICHI PLC

Interim Results for the period ended 30 June 2022

For the six months ending 30^th June 2022:

• EBITDA [1]:  £22.25million   (2021: £1.03million) 

• Adjusted EBITDA [2]:    £22.24million  (2021: £0.74million)

• Profit before tax    £21.17million  (2021: Loss: £0.7million)

• EPS (basic):    108.29 p      (2021: 2.78 p loss) 

• The substantial increase in group earnings and cash generation in the first half of the year can be attributed to a very strong performance from the Group’s South African mining and processing operations.

• International coal market conditions continued to improve significantly in first half of 2022 with Group exports to date in line with average export tonnages achieved in 2021.

• Black Wattle’s transition into new mining areas now complete with mining production expected to improve in the second half of 2022.

• In light of the strong results achieved for the first half of the year and the performance of the Group’s South African operations in the second half of the year to date, an interim dividend of 10p declared.

END

For further information, please call:

Andrew Heller/Garrett Casey  Bisichi PLC    020 7415 5030

[1] Earnings before Interest, taxation, depreciation and amortisation.

[2] Operating profit before depreciation, fair value adjustments and exchange movements. 

Bisichi PLC

Half year review – 30 June 2022

Follow our trading update on 6 June 2022, I am very pleased to report to shareholders that for the half year ended 30 June 2022, your company made a profit before interest, tax, depreciation and amortisation (EBITDA) of £22.25million (2021: £1.03 million) and an operating profit before depreciation, fair value adjustments and exchange movements (Adjusted EBITDA) of £22.24million (2021: £0.74million).

These unprecedented earnings for the Group can be attributed to a strong performance from Sisonke Coal Processing, the Group’s South African coal processing operation which benefited from significantly higher prices of Free on Board (FOB) coal from Richards Bay Coal Terminal (API4 price). During the period, the weekly API4 price averaged $277 compared to $97 in the first half of 2021 and $151 in the second half the year. Despite constraints in transporting coal for export on the South African rail network, constraints which were largely beyond our control, we were able to take advantage of the improved international coal price by increasing our export sales during the first half of the year to 177,000 metric tonnes, compared to 171,000 metric tonnes in the first half of 2021 and 320,000 metric tonnes overall in 2022.

Results would have been even better if we had not encountered operational delays that impacted our transition into new mining areas at Black Wattle, which in turn impacted adversely our coal production. During the period the mine achieved production of 301,000 metric tonnes compared to 553,000 metric tonnes in the first half of 2021. We are pleased to report that these delays have now been addressed successfully and in July the transition into the new mining areas was completed. Consequently, we expect mining production to recover in the second half of the year to the levels seen in 2021. The increases evident on the balance sheet in our reserves, plant and equipment is mainly attributable to the costs of completing the development of these new mining areas which will be mined throughout the remainder of 2022 and 2023.

Despite the lower coal production from Black Wattle, at Sisonke Coal Processing, we were able maintain our overall levels of coal processed. During the period the Group sold 614,000 metric tonnes (2021: 731,000 metric tonnes) and reported £44.7million in mining revenue (2021: £23.0million) with the higher prices achievable for our coal offsetting the lower overall quantity of coal sold.

Looking forward into the second half of 2022, we are already beginning to see the benefits from the mining of the new areas at Black Wattle. This is mainly due to the higher quality coal being mined which is currently in high demand in both our export and domestic markets. As a result, we are pleased to report that, in the second half of the year to date, we have achieved significant improvements in prices for our coal in the domestic market. In the export market, the API4 price continues to remain at levels similar to the first half of 2022 and exports for the year to date are in line with the average export tonnages we achieved in 2021. However, looking beyond the year to date, uncertainties remain. These are particularly with regard to the sustainability of the higher coal prices in both our markets, as well as the impact of continued constraints in transporting coal for export on the South African rail network.

In addition to our existing mining and processing operations, the Group is searching for new independent mining and renewable energy related opportunities.

In the UK, we have seen rental revenue from our retail property portfolio remain stable in the first half of 2022. Overall, the Group billed revenue from our directly owned property portfolio of £0.56million (2021: £0.59million) during the first half of the year. The Group continues to hold its joint venture development investment in West Ealing, with London Associated Properties PLC and Metroprop Real Estate Ltd. We continue to progress the development and a final decision on whether we will develop this asset ourselves or sell it has yet to be taken.

Finally, in light of the strong results achieved for the first half of the year and the performance of the Group’s South African operations in the second half of the year to date, your directors intend to pay an interim dividend of 10p (2021: Nil) per share. The dividend will be payable on Friday 3 February 2023 to shareholders registered at the close of business on 6 January 2023.

On behalf of the Board and shareholders, I would like to thank all of our staff for their hard work during this extraordinary period.

Sir Michael Heller  Andrew Heller

Chairman  Managing Director

30 August 2022   

Bisichi PLC

Consolidated income statement

For the six months ended 30 June 2022

			Unaudited	Unaudited	Audited
			6 months ended	6 months ended	Year ended
			30 June	30 June	31 December
			2022	2021	2021
		Notes	000	000	000
Group revenue		1	45,399	23,639	50,520
Operating costs			(23,937)	(24,238)	(48,184)
Operating profit on trading activities			21,462	(599)	2,336
Decrease in value of investment properties			-	-	255
Gain/(Loss) on investments held at fair value			49	(261)	812
Operating profit		1	21,511	(223)	3,403
Share of loss in joint ventures			(1)	(80)	(125)
Profit before interest and taxation			21,510	(303)	3,278
Interest receivable			39	19	22
Interest payable			(383)	(392)	(799)
Profit before taxation		1	21,166	(686)	2,501
Income tax		2	(5,956)	272	(795)
Profit/(Loss) for the period			15,210	(414)	1,706
Attributable to:
Equity holders of the company			11,562	(297)	1,491
Non-controlling interest			3,648	(117)	215
Profit/(Loss) for the period			15,210	(414)	1,706
Earnings per share - basic		3	108.29p	(2.78p)	13.96p
Earnings per share - diluted		3	103.63p	(2.78p)	13.94p

Bisichi PLC

Consolidated statement of comprehensive income

For the six months ended 30 June 2022

		Unaudited	Unaudited	Audited
		6 months ended	6 months ended	Year ended
		30 June	30 June	31 December
		2022	2021	2021
		000	000	000
Profit/(Loss) for the period		15,210	(414)	1,706
Other comprehensive income/(expenses):
Exchange differences on translation of foreign operations		565	6	(60)
Taxation		-	-	-
Other comprehensive income for the period, net of tax		565	6	(60)
Total comprehensive income for the period		15,775	(408)	1,646
Attributable to:
Equity shareholders		12,052	(292)	1,439
Non-controlling interest		3,723	(116)	207
Total comprehensive income for the period		15,775	(408)	1,646

Bisichi PLC
Consolidated Balance Sheet
as at 30 June 2022
		Unaudited	Unaudited	Audited
		30 June 2022	30 June 2021	31 December 2021
Assets		£000	£000	£000
Non-current-assets
	Value of investment properties	10,525	10,270	10,525
	Fair value of head leases	175	201	175
	Investment property	10,700	10,471	10,700
	Mining reserves, plant and equipment	14,342	9,674	9,065
	Investments in joint ventures	1,130	1,174	1,130
	Other investments at fair value through profit and loss (“FVPL”)	6,418	2,721	3,631
	Total non-current assets	32,590	24,040	24,526
Current assets
	Inventories	4,188	2,593	1,253
	Trade and other receivables	8,820	7,659	8,626
	Investments in listed securities held at FVPL	1,209	923	685
	Cash and cash equivalents	5,176	3,543	3,018
	Total current assets	19,393	14,718	13,582
Total assets		51,983	38,758	38,108
Liabilities
Current liabilities
	Borrowings	(3,929)	(3,995)	(2,666)
	Trade and other payables	(9,246)	(12,807)	(10,743)
	Current tax liabilities	(1,657)	(1)	(726)
	Total current liabilities	(14,832)	(16,803)	(14,135)
Non-current liabilities
	Borrowings	(3,903)	(4,076)	(3,853)
	Provision for rehabilitation	(1,609)	(1,461)	(1,390)
	Finance lease liabilities	(400)	(437)	(389)
	Deferred tax liabilities	(57)	(200)	(506)
	Total non-current liabilities	(5,969)	(6,174)	(6,138)
Total liabilities		(20,801)	(22,977)	(20,273)
Net assets		31,182	15,781	17,835
Equity
	Share capital	1,068	1,068	1,068
	Share premium	258	258	258
	Translation reserve	(2,050)	(2,483)	(2,540)
	Other reserves	707	707	707
	Retained earnings	28,940	16,231	18,019
	Total equity attributable to equity shareholders	28,923	15,781	17,512
	Non-controlling interest	2,259	-	323
Total equity		31,182	15,781	17,835

Bisichi PLC

Consolidated Cash Flow Statement

For the six months ended 30 June 2022

		Unaudited	Unaudited	Audited
		30 June	30 June	31 December
		2022	2021	2021
		000	000	000
Cash flows from operating activities
Operating profit		21,511	(223)	3,403
Depreciation		744	1,338	2,571
Unrealised (gain)/loss on investments		(49)	(376)	(812)
Unrealised loss on investment properties		-	-	(255)
Exchange adjustments		37	9	121
Movement in working capital		(4,960)	2,075	397
Net interest paid		(344)	(383)	(777)
Income tax (paid)/received		(5,554)	(211)	(216)
Cash flow from operating activities		11,385	2,229	4,432
Cash flows from investing activities		(8,680)	(1,395)	(2,706)
Cash flows from financing activities		(1,889)	(142)	(271)
Net increase/(decrease) in cash and cash equivalents		816	692	1,455
Cash and cash equivalents at 1 January		482	(1,078)	(1,078)
Exchange adjustment		(51)	(40)	105
Cash and cash equivalents at end of period		1,247	(426)	482
Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise the following balance sheet amounts:
Cash and cash equivalents		5,176	3,543	3,018
Bank overdrafts		(3,929)	(3,969)	(2,536)
Cash and cash equivalents at end of period		1,247	(426)	482

Bisichi PLC

Consolidated statement of changes in shareholders' equity

For the six months ended 30 June 2022

	Share	Share	Translation	Available for sale	Other	Retained		Non- controlling	Total
	capital	premium	reserve	reserves	reserves	earnings	Total	Interest	Equity
	£000	£000	£000	£000	£000	£000	£000	£000	£000
Balance at 1 January 2021	1,068	258	(2,488)	-	707	16,528	16,073	116	16,189
Profit for the period	-	-	-	-	-	(297)	(297)	(117)	(414)
Other comprehensive income and expense	-	-	5	-	-	-	5	1	6
Total comprehensive  income  for the period	-	-	5	-	-	(297)	(292)	(116)	(408)
Dividend	-	-	-	-	-	-	-	-	-
Balance at 30 June 2021	1,068	258	(2,483)	-	707	16,231	15,781	-	15,781
Balance at 1 January 2021	1,068	258	(2,488)	-	707	16,528	16,073	116	16,189
Profit for the year	-	-	-	-	-	1,491	1,491	215	1,706
Other comprehensive income and expense	-	-	(52)	-	-	-	(52)	(8)	(60)
Total comprehensive  income  for the year	-	-	(52)	-	-	1,491	1,439	207	1,646
Dividend	-	-	-	-	-	-	-	-	-
Balance at 31 December 2021	1,068	258	(2,540)	-	707	18,019	17,512	323	17,835
Profit for the year	-	-	-	-	-	11,562	11,562	3,648	15,210
Other comprehensive income and expense	-	-	490	-	-	-	490	75	565
Total comprehensive  income  for the period	-	-	490	-	-	11,562	12,052	3,723	15,755
Dividend	-	-	-	-	-	(641)	(641)	(1,787)	(2,428)
Balance at 30 June 2022	1,068	258	(2,050)	-	707	28,940	28,923	2,259	31,182

ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS:     

The results for the six months ended 30 June 2022 have been prepared in accordance with International Financial Reporting Standards (IFRS).  The principal accounting policies applied are the same as those set out in the Financial Statements for the year ended 31 December 2021, and which will form the basis of the 2022 Annual report.

1. Segmental analysis

For management purposes, the Group is organised into two operating Divisions, Mining and Property. These Divisions are the primary basis on which the Group reports its segment information. This is consistent with the way the Group is managed and with the format of the Group's internal financial reporting.

		Unaudited	Unaudited	Audited
		30 June	30 June	31 December
		2022	2021	2021
		000	000	000
Revenue
Mining		44,692	23,016	49,226
Property		561	594	1,119
Other		146	29	175
		45,399	23,639	50,520
Operating profit/(loss)
Mining		21,055	(900)	1,574
Property		264	275	847
Other		192	402	982
		21,511	(223)	3,403
Share of profit in joint ventures		(1)	(80)	(125)
Interest receivable		39	9	22
Interest payable		(383)	(392)	(799)
Profit/(Loss) before taxation		21,166	(686)	2,501

2. Taxation 

		Unaudited	Unaudited	Audited
		30 June	30 June	31 December
		2022	2021	2021
		000	000	000
Based on the results for the period:
Corporation tax at 28.00% (2021: 27%)		6,425	5	750
Deferred taxation		(469)	(276)	45
		5,956	(271)	795

3. Earnings/ (loss) per share

Both the basic and diluted earnings per share calculations are based on a profit of £11,562,000 (2021: loss of £297,000). The basic earnings per share has been calculated on a weighted average of 10,676,839 (2021: 10,676,839) ordinary shares being in issue during the year. The diluted earnings per share has been calculated on the weighted average number of shares in issue of 10,676,839 (2021: 10,676,839) plus the dilutive potential ordinary shares arising from share options of 479,878 (2021: nil) totalling 11,156,717 (2021: 10,676,839).

4. Investment properties

Investment properties are held a fair value at each reporting period. Management evaluate on an ongoing basis the impact of the current economic performance of the UK Retail market on the future performance of the group’s existing UK property portfolio. The Directors have placed a valuation on the properties which is not materially different to the value as at 31 December 2021. Therefore no change in fair value of investment properties has been made during the period. Investment properties are therefore included at a Director’s valuation which is considered to be the fair value as at 30 June 2022. Please refer to page 73 to 75 of the 2021 Annual report and Accounts for details on the valuation of investment and development properties as at 31 December 2021.

5. Related Parties

The related parties and the nature of costs recharged are as disclosed in the Group's annual financial statements for the year ended 31 December 2021. The Group paid management fees of £100,000 (30 June 2021: £100,000 December 2021: £200,000) to London & Associated Properties PLC, an associated company.

6. Financial information

The above financial information does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.  The figures for the year ended 31st December 2021 are based upon the latest statutory accounts, which have been delivered to the Registrar of Companies; the report of the auditors on those accounts was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006. 

As required by the Disclosure and Transparency Rules of the UK's Financial Conduct Authority, the interim financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) and in accordance with both IAS 34 'Interim Financial Reporting' as adopted by the United Kingdom and the disclosure requirements of the Listing Rules.

The half year results have not been audited or subject to review by the company's auditors.

The annual financial statements of Bisichi PLC are prepared in accordance with UK-adopted  international accounting standards in conformity with the requirements of the Companies Act 2006. The same accounting policies are used for the six months ended 30 June 2022 as were used for the year ended 31 December 2021.

The assessment of new standards, amendments and interpretations issued but not effective, are not anticipated to have a material impact on the financial statements.

The largest areas of estimation and uncertainty in the interim financial statements are in respect of:

• Life of mine and reserves;
• Depreciation;
• Provision for rehabilitation (relating to environmental rehabilitation of mining areas);
• Impairment; and
• The valuation of investment and development properties

Property, plant and equipment representing the group’s mining assets in South Africa are reviewed for impairment where there is evidence of a material impairment. The impairment test indicated significant headroom as at 31 December 2021 and no impairment was considered appropriate. The directors have used similar key assumptions and estimates as outlined on page 62 of the 2021 Annual report and Accounts, and no impairment was considered appropriate as at 30 June 2022.

Other areas of estimation and uncertainly are referred to in the Group's annual financial statements. There have been no significant changes to the basis of accounting of key estimates and judgements as disclosed in the annual report as at 31 December 2021.

The interim financial statements have been prepared on the going concern basis. Cashflow forecasts demonstrate that the group has adequate resources to continue in operational existence for the foreseeable future and is well placed to manage its business risks.

7. Dividend

The final dividends in respect of 2021, totalling £641,000 was approved  by the shareholders at the Annual General Meeting held on the 16th June 2022 and were paid on the 29th July 2022. The final dividends in respect of 2022 are included as a liability in these interim financial statements. A proposed interim dividend for the year ended 31 December 2022 totalling £1,067,684 (2021: Nil) was approved by the Board of Directors on 30 August 2022 and has not been included as a liability in these Interim Financial Statements.

8. Principal risks and uncertainties

The Group has an established risk management process which works within the corporate governance framework as set out in the 2021 Annual Report and Accounts. Risks and uncertainties identified by the Group are set out on page 11 of the 2021 Annual Report & Accounts and are reviewed on an ongoing basis. There have been no significant changes in the first half of 2022 to the principle risks and uncertainties as set out in the 2021 Annual Report & Accounts.

Risks faced by the business are assessed by the Board on an ongoing basis. Strategies for mitigating the risks have  been defined and specific measures for achieving these are already underway. These include the measures outlined in the Chairman’s Statement, Mining Review and Financial Review & Performance sections of the 2021 Annual report and Accounts.

The principal risks as stated in the 2021 Annual Report & Accounts reflect the challenging environment in which the business operates and are considered under the following broad headings:

Mining:

• Coal price and volume risk
• Mining risk
• Currency risk
• New reserves and mining permissions
• Power supply risk
• Flooding risk
• Environmental risk
• Health & safety risk
• Labour risk
• Cashflow

Property:

• Property valuation
• Economic performance of United Kingdom
• Covid-19
• Geo-political events in Ukraine
• Brexit

9. Board approval

These interim results were approved by the Board of Bisichi PLC on 30 August 2022.

DIRECTORS RESPONSIBILITY STATEMENT AND REPORT ON PRINCIPAL RISKS  

AND UNCERTAINITIES 

Responsibility Statement

We confirm to the best of our knowledge:

(a)  the condensed set of financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU; 

(b)  the interim management report includes a fair review of the information required by:

(1) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(2) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during the period; and any changes in the related party transactions described in the last annual report that could do so.

This report contains forward-looking statements. These statements are based on current estimates and projections of management and currently available information. Future statements are not guarantees of the future developments and results outlined therein. Rather, future developments and results are dependent on a number of factors; they involve various risks and uncertainties and are based upon assumptions that may not prove to be accurate. Risks and uncertainties identified by the Group are set out on page 11 of the 2021 Annual Report & Accounts. We do not assume any obligation to update the forward-looking statements contained in this report.

Michael Heller   Andrew Heller 

Chairman  Managing Director

30 August 2022 

DIRECTORS AND ADVISERS   

Directors   Sir Michael A Heller MA, FCA (Chairman)

 Andrew R Heller MA, ACA (Managing Director) 

      Robert Grobler PR Cert Eng (Mining Director) 

      Garrett Casey CA (SA) (Finance Director) 

      Christopher A Joll MA (Non-executive) 

      John A Sibbald BL (Non-executive)

  John Wong ACA, CFA (Non-executive) 

Secretary & Registered office             Garrett Casey CA (SA)       

        12 Little Portland Street 

      London W1W 8BJ 

Black Wattle Colliery - Directors        Andrew Heller (Managing Director)

      Garrett Casey (Finance Director) 

      Ethan Dube (Commercial Director)

                                                            Robert Grobler (Mining Director)

  Millicent Zvarayi

Registrars and transfer office      Link Group

Shareholder Services

10th Floor

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29 Wellington Street

Leeds

LS14DL       

UK Telephone: [phone]

International Telephone: [phone]

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Website: www.linkgroup.com

 E-mail: [e-mail] 

Company registration number      112155 (Incorporated in England and Wales) 

Web site      www.bisichi.co.uk 

E-mail      [e-mail]