Half-year Report

Primorus Investments PLC
18 August 2023
 

Primorus Investments plc

 

("Primorus" or the "Company")

 

Interim Results for the six months ended 30 June 2023

 

Primorus Investments plc (AIM: PRIM) is pleased to announce its unaudited interim results for the six months ended 30 June 2023.

 

Overview

 

The last six months have been a difficult time for the capital markets with rising interest rates causing a general slowdown in the deployment of capital being invested.  With greater uncertainties, investors are more cautious which has had a negative effect on the asset valuations for some of Primorus' investments.  Despite this, we remain confident in the longer-term prospects of these investments.

 

Primorus has restructured the repayments due under its Convertible Loan Note with Bushveld Minerals Limited.  At the date of this announcement, £307,000 has been repaid and the balance continues to accrue interest at 10% per annum.

 

Alteration Earth PLC, a special purpose acquisition company in which Primorus holds approximately 28% of the issued share capital, announced on 1 August 2023 its intention to acquire the entire issued share capital of Verdant Earth Resources Limited.

 

In addition, Primorus has exited several non-core holdings to ensure the Company remains in a healthy position to deliver the objectives set out within its investing policy.

 

Financial Results

 

The operating loss for the six months to 30 June 2023 was £512,000 (30 June 2022: £847,00 loss). The net loss after tax was £512,000 (30 June 2022: £847,000 loss).

 

Total assets, including cash, at 30 June 2023 amounted to £7.21 million (30 June 2022: £8.23 million).

 

Outlook

 

The Board remains confident that significant opportunities exist for the Company going forward. The Board is continually seeking new investment opportunities whilst also monitoring its existing investments.

 

The Board has screened several exciting opportunities within the period and looks forward to making further investments in the near term.

 

We look forward to updating shareholders as and when our existing investments mature, and new investments present themselves.

 

The Directors would like to take this opportunity to thank our shareholders and consultants for their continued support.

 

Rupert Labrum Chairman

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 



 

Caution regarding forward looking statements

 

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the Company will be those that it anticipates.

 

 

For further information please contact:

 

Primorus Investments plc

Matthew Beardmore, Chief Executive Officer

 

+44 (0)20 8154 7907

 

Nominated Adviser

Cairn Financial Advisers LLP

James Caithie / Sandy Jamieson

 

+44 (0) 20 7213 0880

 

 

 

 

Unaudited Condensed Company Statement of Comprehensive Income

for the six months ended 30 June 2023

 

6 months to

6 months to

Year to


30 June

2023

30 June

2022

31 December

2022


Unaudited

Unaudited

Audited


Notes

£'000

£'000

£'000

Continuing operations





Revenue





Investment income


40

52

93

Realised (loss)/gain on disposal of financial investments


(538)

(300)

(288)

Unrealised gain/(loss) on market value movement of financial investments


314

(500)

(542)

Total (losses)/gains on financial investments


(184)

(748)

(737)






Share based payments


-

(63)

(121)

Operating costs


(328)

(36)

(280)

 

Impairment of financial investments


 

-

 

-

 

(375)

(Loss)/Profit before tax


(512)

(99)

(1,513)

Taxation


-

-

29

(Loss)/Profit for the period attributable to equity shareholders of the company


(512)

(847)

(1,484)

 

Other comprehensive income


-

-

-

Total Comprehensive Income for the year attributable to equity shareholders of the company


 

(512)

 

(847)

 

(1,484)

 

Profit/(Loss) per share:





Basic profit/(loss) per share (pence)

2

(0.366)

(0.605)

(1.061)

Diluted profit/(loss) per share (pence)

2

(0.366)

(0.605)

(1.061)

 

 

Unaudited Condensed Company Statement of Financial Position

as at 30 June 2023

 


30 June

2023

30 June

2022

31 December

2022


Unaudited

Unaudited

Audited

Note s

£'000

£'000

£'000

ASSETS




Non-current assets




Financial investments

5,279

7,742

5,444


5,279

7,742

5,444

 

Current assets




Investments

1,843

20

2,064

Trade and other receivables

49

39

34

Cash and cash equivalents

35

427

114


1,927

486

2,212

Total assets

7,206

8,228

7,656

 

EQUITY




Equity attributable to equity holders of the parent




Share capital

280

280

280

Share based payment reserve

-

76

-

Retained earnings

6,754

7,769

7.266

Total equity

7,034

8,125

7.546

LIABILITIES




Current liabilities




Trade and other payables

172

70

110

Corporation tax

-

33

-

Total liabilities

172

103

110

Total equity and liabilities

7,206

8,228

7,656

 

Unaudited Condensed Company Statement of Changes in Equity

for the six months ended 30 June 2023

 


 

Share capital

Share based

payment reserve

 

Retained earnings

Total attributable

to owners of parent

 

£'000

£'000

£'000

£'000

£'000

Unaudited

 

 

 

 

 

Balance at 31 December 2021

280

-

13

8,616

8,909

 

Loss for the period

 

-

 

-

 

-

 

(1,484)

 

(1,484)

Total comprehensive income for the

period

 

-

 

-

 

-

 

(1,484)

 

(1,484)

Share based payment expense

 

-

-

121

-

121

Reclassification upon cancellation of share options

 

-

-

(134)

134

-

 

Balance at 31 December 2022

 

280

 

-

 

-

 

7,266

 

7,546

 

Loss for the period

 

-

 

-

 

-

 

(512)

 

(512)

Total comprehensive income for the period

 

-

 

-

 

-

 

(512)

 

(512)

Balance at 30 June 2023

280

-

-

6,754

7,034

 

 

                          

 

Unaudited Condensed Company Statement of Cash Flows

for the six months ended 30 June 2023

 

 

6 months to

6 months to

Year

to


30-Jun-23

30-Jun-22

31-Dec-22


Unaudited

Unaudited

Audited


£'000

£'000

£'000

Cash flows from operating activities




Operating Profit/(Loss)

(512)

(847)

(1,484)

Adjustments for:




(Profit)/Loss on disposal of financial investments

538

300

288

Fair value movement on listed investments

(314)

500

542

Impairment provision on unlisted investments

-

-

375

Decrease/(increase) in trade and other  receivables

(15)

(34)

-

Increase/(decrease) in trade and other payables

62

26

66

Foreign exchange loss/(gain)

166

(132)

(112)

Interest income on investments

(40)

(52)

(93)

Share based payment

-

63

121

Income tax (credit)

-

-

(29)

 

(115)

(176)

(326)

 

Income taxes paid

 

-

 

(4)

 

(36)

 

Net cash used in operating activities

(115)

(180)

(362)

Cash flows from investing activities




Disposal proceed from sale of financial investments

 

36

 

3,026

 

1,937

Payment for financial investments

-

(3,360)

(2,402)

Net cash from/(used in) investing activities

36

(334)

(465)

Net change in cash and cash equivalents

(79)

(514)

(827)

 

Cash and cash equivalents at beginning of period

 

114

 

941

 

941

Cash and cash equivalents at end of period

35

427

114

 

 

Notes to the condensed unaudited interim financial statements

 

1.       General Information

 

The condensed interim financial information for the 6 months to 30 June 2023 does not constitute statutory accounts for the purposes of Section 434 of the Companies Act 2006 and has not been audited or reviewed. No statutory accounts for the period have been delivered to the Registrar of Companies.

 

The condensed interim financial information in respect of the year ended 31 December 2022 has been produced using extracts from the statutory accounts for that period. Consequently, this does not constitute the statutory information (as defined in section 434 of the Companies Act 2006) for the year ended 31 December 2022, which was audited. The statutory accounts for this period have been filed with the Registrar of Companies. The auditors' report was unqualified and did not contain a statement under Sections 498 (2) or 498 (3) of the Companies Act 2006.

 

The auditor's report was approved by the Directors on 15 June 2023 and is available on the Company's website at www.primorusinvestments.com.

 

2.       Basis of preparation and accounting

 

The financial information has been prepared on the historical cost basis. The Company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Chairman's Statement. This statement also includes a summary of the Company's financial position and its cash flows.

 

The financial statements have been prepared in accordance with the Companies Act 2006 and UK-adopted international accounting standards (UK-adopted IAS) and related interpretations.  As permitted, this does not include IAS 34 "Interim Financial Reporting".  This condensed set of financial statements has been prepared applying the accounting policies that were applied in the preparation of the Company's published financial statements for the year ended 31st December 2022.  As these interim financial statements do not include all of the information or disclosures required in the annual financial statements they should be read in conjunction with the Company's 2022 annual financial statements.

 

3.       Earnings per share

 

Earnings per ordinary share has been calculated using the weighted average number of shares in issue during the period. The weighted average number of equity shares in issue was 139,830,968. IAS 33 requires presentation of diluted EPS when a company could be called upon to issue shares that would decrease earnings per share or increase the loss per share.

 


Six months

to

Six months

to

Year ended


30 June

2023

30 June

2022

31 December

2022


(Unaudited)

(Unaudited)

(Audited)



restated



(£'000)

(£'000)

(£'000)

Net profit/(loss) attributable to equity holders of

  the company

(512)

(847)

(1,484)

Weighted average number of shares

139,830,968

139,830,968

139,830,968

Weighted average number of diluted shares

139,830,968

139,830,968

139,830,968

Basic (loss)/profit per share (pence)

(0.366)

(0.605)

(1.061)

Diluted (loss)/profit per share (pence)

(0.366)

(0.605)

(1.061)

 

 

4.       Events after the reporting date

 

There are no events after the end of the reporting date to disclose that have not already been the subject of an announcement by the Company.

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