Interim Results for the six months to 30 June 2020

RNS Number : 6527Y

Path Investments plc

10 September 2020

 

10 September 2020

Path Investments plc

("Path" or the "Company")

Interim Results for the six months to 30 June 2020

Path Investments plc (TIDM: PATH), the natural resources investment company, announces its interim results for the six months to 30 June 2020.

Highlights

· Continued progress on the acquisition of producing natural resource assets

· Focus on completion of DTU acquisition

· Evidence of flexibility to successfully work under the current pandemic restrictions

· Loss before tax £ 163,699 (H1 2019 profit before tax of £23,263)

· Loss per share 0.08 (H1 2019 profit 0.01 per share)

Commenting, Christopher Theis, Chief Executive of Path, said : " The first half of 2020 has challenged the working practises of many businesses. Your company has evidenced the flexibility to adapt to what is fast becoming the new normal. We are working hard to complete our acquisition of DTU and hope to be filing our prospectus with the FCA for  approval shortly. The publication of our accounts is an integral part of that process ."

Enquiries:

Path Investments plc	C/O IFC
Christopher Theis
IFC Advisory (Financial PR & IR)	020 3934 6630
Tim Metcalfe
Zach Cohen
Grant Thornton UK LLC (Financial Adviser) Samantha Harrison Harrison Clarke	020 7383 5100
Keith, Bayley, Rogers & Co. Limited (Broker)
Brinsley Holman	07776 30 22 28
Graham Atthill-Beck	07506 43 41 07

About Path Investments plc

The strategy of the Company is focused on delivering a material acquisition in natural resources production or near production assets with the objective of providing the Company's shareholders with access to a low risk and, over time, diversified portfolio which can offer a dividend stream as well as offering development potential for capital growth. The Directors are focused on the creation of a diversified portfolio of assets that is mindful of the maturity of asset developments, life of income stream and the potential for growth, and a number of opportunities have been evaluated and developed.

Chairman's Report

The ongoing pandemic environment has shifted work patterns and in certain external cases slowed the requisite steps to our stated aim of re-admission of our shares to trading on the Standard List of the Main Market of the London Stock Exchange. However, your directors have continued to work tirelessly and without compensation. As a result, the governing prospectus is nearing completion and filing for FCA approval.

We look forward to updating shareholders further as we move towards completion of our acquisition of DTU.

Brent Fitzpatrick

Non-Executive Chairman

10 September 2020

Financial Review

For the six months to 30 June 2020, the Company recorded a loss before tax of £163,699. There was no revenue in the period.

Cash flow

As at 30 June 2020 the Company held cash of £63,934 in the bank account.

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2020

	Notes	Six months ended 30 June	Six months ended 30 June	Year ended 31 December
		2020	2019	2019
		Unaudited	Unaudited	Audited
		£	£	£
Administrative expenses	3	(163,699)	(376,800)	(612,537)
Total administrative expenses		(163,699)	(376,800)	(612,537)
Operating loss		(163,699)	(376,800)	(612,537)
Other income		-	400,000	400,000
Finance income		-	63	68
Finance cost		-	-	(105,178)
Profit/(loss) on ordinary activities before taxation		(163,699)	23,263	(317,647)
Tax on profit/(loss) on ordinary activities		-	-	-
Profit/(loss) for the period and total comprehensive (loss)/profit for period		(163,699)	23,263	(317,647)
Earnings/(loss) per share (pence)
- Basic & diluted	4	(0.08)	0.01	(0.16)

All operating income and operating gains and losses relate to continuing activities.

STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2020

	Share Capital	Share Premium	Retained earnings	Total
	£	£	£	£
As at 1 January 2020	8,979,767	25,413,617	(36,298,570)	(1,905,186)
Comprehensive income Loss for the period	-	-	(163,699)	(163,699)
Share issue	67	49,933
As at 30 June 2020	8,979,834	25,463,550	(36,462,269)	(2,018,885)

	Share Capital	Share Premium	Retained earnings	Total
	£	£	£	£
As at January 2019	8,979,767	25,413,617	(35,980,923)	(1,587,539)
Comprehensive income Loss for the period	-	-	(317,647)	(317,647)
As at 31 December 2019	8,979,767	25,413,617	(36,298,570)	(1,905,186)

	Share Capital	Share Premium	Retained earnings	Total
	£	£	£	£
As at 1 January 2019	8,979,767	25,413,617	(35,980,923)	(1,587,539)
Comprehensive income Profit for the period	-	-	23,263	23,263
Issue of share capital	-	-	-	-
As at 30 June 2019	8,979,767	25,413,617	(35,957,600)	(1,564,216)

The Share Capital represents the nominal value of the equity shares.

The Share Premium represents the amount subscribed for share capital, in excess of the nominal amount, less costs directly relating to the issue of shares.

The Share Based Payments reserve represents the fair value of the equity settled share option scheme.

The Retained Earnings reserve represents the cumulative net gains and losses less distributions made.

STATEMENT OF FINANCIAL POSITION

FOR THE SIX MONTHS ENDED 30 JUNE 2020

	Notes	As at 30 June 2020	As at 30 June 2019	As at 31 December 2019
		Unaudited	Unaudited	Audited
		£	£	£
ASSETS
Current assets
Trade and other receivables		6,528	-	10,056
Cash and cash equivalents		63,934	14,756	162
		70,462	14,756	10,218
LIABILITIES
Current liabilities
Trade and other payables	5	(2,089,347)	(1,578,972)	(1,915,404)
Net Current Liabilities		(2,089,347)	(1,578,972)	(1,915,404)
NET LIABILITIES		(2,018,885)	(1,564,216)	(1,905,186)
SHAREHOLDERS' EQUITY
Called up share capital	6	196,010	195,943	195,943
Deferred shares	6	8,783,824	8,783,824	8,783,824
Share premium account		25,463,550	25,413,617	25,413,617
Retained earnings		(36,462,269)	(35,957,600)	(36,298,570)
TOTAL EQUITY		(2,018,885)	(1,564,216)	(1,905,186)

STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2020

		Six months to 30 June 2020	Six months to 30 June 2019	Year ended 31 December 2019
		Unaudited	Unaudited	Audited
		£	£	£
Operating loss		(163,699)	(376,800)	(317,647)
Decrease in debtors		3,528	2,220	(7,836)
(Decrease)/increase in creditors within one year		123,943	(11,200)	314,282
Convertible loan note interest		-	-	11,000
Net cash outflow from operating activities		(36,228)	(385,780)	(400,201)
Cash flows from investing activities
Investment income		-	400,000	400,000
Interest received		-	63	68
Finance costs		-	-	(178)
Net cash generated from investing activities		-	400,063	399,890
Cash flows from financing activities
Increase in bank borrowings		50,000	-	-
Issue of share capital		50,000	-	-
Net cash generated from financing activities		100,000	-	-
Net increase/(decrease) in cash and cash equivalents		63,772	14,283	(311)
Cash and cash equivalents at beginning of period		162	473	473
Cash and cash equivalents at end of period		63,934	14,756	162

NOTES TO THE ACCOUNTS

FOR THE SIX MONTHS ENDED 30 JUNE 2020

1.  GENERAL INFORMATION

Path Investments Plc is a public limited company incorporated in the United Kingdom, registered under company number 04006413. The address of the registered office is 15 Victoria Mews, Millfield Road, Cottingley Business Park, Bingley, West Yorkshire, BD16 1PY. The principal activity of the Company is the investment in natural resources production and development assets.

2.  ACCOUNTING POLICIES

2.1  Basis of preparation

The financial statements are presented in UK Sterling and all values are rounded to the nearest pound except where indicated otherwise.

The financial statements have been prepared under the historical cost convention or fair value where appropriate. 

The results for the six months to 30 June 2020 have been prepared on the basis of the accounting policies set out in the company's 2019 annual report and accounts. The interim accounts do not constitute statutory accounts as defined by section 434 of the Companies Act 2006. The auditor has reported on the 2019 accounts and the report was unqualified and did not contain a statement under section 498(2) of (3) of the Companies Act 2006. The company's 2019 report and accounts have been filed with the registrar of companies.

During the period, there have been no changes in the nature of the related party transactions from those described in the company's 2019 accounts.

During the 2019 audit work the 2018 accounts were restated to reflect a further accrual of directors' remuneration.  The six months ended 30 June 2018 have been restated to reflect this adjustment.  The accruals have been increased by £514,719 and the reserves by the same.

The results for the six months are unaudited.

2.2  Responsibility statement

The directors confirm that these condensed interim financial statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting", as adopted by the European Union and as issued by the IASB and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely;

a)  An indication of the important events that have occurred during the first six months 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 financial year; and

b)  Material related party transactions in the first six months and any material changes in related party transactions described in the last annual report.

3.  ADMINISTRATIVE EXPENSES

	Six months to 30 June 2020	Six months to 30 June 2019	Year ended 31 December 2019
	Unaudited	Unaudited	Audited
	£	£	£
Directors remuneration	82,790	98,031	319,983
Other administrative expenses	80,909	278,769	397,664
	163,699	376,800	717,647

Included in Directors remuneration for the period ended 30 June 2019 are accrued salaries of £82,790 (June 2019 £77,081, December 2019: £292,537).

4.  LOSS PER SHARE

The calculation of the basic and diluted loss per share is based on the loss on ordinary activities after taxation of and on the weighted average number of ordinary shares in issue.

There was no dilutive effect from the share options or convertible loan notes outstanding during the period.

In order to calculate the diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares according to IAS33. Dilutive potential ordinary shares include convertible loan notes and share options granted to Directors and consultants where the exercise price (adjusted according to IAS 33) is less than the average market price of the Company's ordinary shares during the period.

	Six months to 30 June 2020	Six months to 30 June 2019	Year ended 31 December 2019
	Unaudited	Unaudited	Audited
	£	£	£
Net profit/(loss) for the period	(163,699)	23,263	(317,647)
The weighted average number of shares in the period were:
Basic and dilutive ordinary shares	207,410,469	195,943,802	195,943,802
Basic and dilutive earnings/(loss) per share (pence)	(0.08)	0.01	(0.16)

5.  TR ade and other payables

	As at 30 June 2020	As at 30 June 2019	As at 31 December 2019
	Unaudited	Unaudited	Audited
		£	£
Trade payables	322,338	246,785	323,416
Other payables	292,830	173,934	291,198
Bank loan	50,000	-	-
Accruals and deferred income	1,424,179	1,158,972	1,300,790
	2,089,347	1,578,972	1,915,404

6.  SHARE Capital

			Unaudited	Unaudited	Unaudited	Unaudited
Allotted, called up and fully paid			no	£	no	£
			Ordinary Shares of 0.1p each	Ordinary Shares of 0.1p each	Deferred Share of 39.9p each	Deferred Share of 39.9p each
At 1 January 2019 and as at 30 June 2019 (unaudited), (December 2019 (audited)			195,943,802	195,943	22,014,596	8,783,824
Issued in period			66,667	67	-	-
At 30 June 2020 (unaudited)			207,410,469	207,410	22,014,596	8,783,824

 

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