Interim Results

RNS Number : 6412Z

Gemstones of Africa Group PLC

25 September 2009

 

gemstones of africa group plc

('GOA' or the 'Company' OR THE 'group')

UNAUDITED INTERIM RESULTS 

FOR THE SIX MONTHS ENDED 30 JUNE 2009

The Board of Gemstones of Africa Group Plc is pleased to announce unaudited interim results for the six month period to 30 June 2009. 

chairman's statement

I am pleased to report on the interim results of the Company for the six months ended 30 June 2009.

The Company made an operating loss of £94,945 for the period. The loss includes approximately £14,000 in respect of legal and professional fees associated with the investments made during the period. 

Since the last year end, the Company has made two investments which I reported to shareholders in my statement accompanying the financial statements for the year ended 31st December 2009:

     -  a collaboration and option agreement with Obtala Resources Plc leading to a joint venture agreement 
        on a group of emerald mining licences and a prospecting licence with ruby potential in Tanzania, Africa.

     -  an Option Agreement with Javan Investments Company Limited, a private Tanzanian company, for 
        two gemstone prospecting licences in Tanzania. The area is known to host sapphires, green and 
        red garnets, and rubies, with a number of artisanal workings nearby.

Despite the investments it has made, the Company has not been able to fully satisfy the requirements of the AIM Rules for Companies ('AIM Rules') that it has substantially implemented its investing strategy and therefore pursuant to Rule 15 of the AIM Rules, the Company's ordinary shares will be suspended from trading on AIM with effect from 7 a.m., on 30 September 2009, being the day following the anniversary of the Annual General Meeting of the Company at which shareholders gave consent to the Company's investing strategy. 

The board structure has recently been changed and as a consequence of the AIM requirement to effect a substantial acquisition, the directors are actively pursuing acquisition opportunities for the Company and will update the market with any developments accordingly. The Company's investing strategy remains unchanged. 

Simon Rollason

Chairman                                25 September 2009 

consolidated INCOME STATEMENT 

FOR THE SIX MONTHS ENDED 30 JUNE 2009

		Six months ended  30 June 09	Six months ended  30 June 08	Year ended  31 Dec 08
		Unaudited	Unaudited	Audited
	Note	£	£	£
Turnover		-	-	-
Cost of sales		-	-	-
Gross profit		-	-	-
Administrative expenses		(94,945)	(25,078)	(126,356)
Other income		-	-	33,526
Operating loss		(94,945)	(25,078)	(92,830)
Investment revenue		-	3,252	4,072
Finance Costs		-	-	(182)
Loss before taxation		(94,945)	(21,826)	(88,940)
Tax		-	-	-
Loss for the period		(94,945)	(21,826)	(88,940)
Comprising:
Loss for the period from continuing operations		(94,945)	(28,119)	(95,233)
Loss for the period from discontinued operations		-	6,293	6,293
		(94,945)	(21,826)	(88,940)
Attributable to:
Equity holders of the Company		(94,945)	(21,826)	(88,940)
Loss per share	2
- basic and diluted (pence)		(0.01)	(0.03)	(0.02)

consolidated STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2009

		Six months ended  30 June 09	Six months ended  30 June 08	Year ended  31 Dec 08
		Unaudited	Unaudited	Audited
		£	£	£
Loss for the period		(94,945)	(21,826)	(88,940)
Other comprehensive income:
Gain on closure of subsidiary company		-	-	66,351
Total recognised loss for the period		(94,945)	(21,826)	(22,589)

consolidated BALANCE SHEET 

as at 30 june 2009

		As at 30 June 09	As at 30 June 08	As at 31 Dec 08
		Unaudited	Unaudited	Audited
	Note	£	£	£
ASSETS
Non-current assets
Investments - fair value through income statement	3	465,510	-	-
		465,510	-	-
Current assets
Trade and other receivables		20,076	-	16,390
Cash and cash equivalents		394,045	3,031	491,421
		414,121	3,031	507,811
Total Assets		879,631	3,031	507,811
EQUITY AND LIABILTIES
Called-up share capital		330,132	64,180	315,847
Share premium account		730,970	-	301,327
Merger reserve		-	66,351	-
Share option reserve		33,441	-	33,441
Retained earnings		(255,813)	(160,105)	(160,869)
Total equity		838,730	(29,574)	489,746
Current liabilities
Trade and other payables		40,901	32,605	18,065
Total liabilities		40,901	32,605	18,065
Total Equity and Liabilities		879,631	3,031	507,811

consolidated statement of changes in equity 

FOR THE SIX MONTHS ENDED 30 JUNE 2009

	Share capital	Share premium	Share Option reserve	Merger reserve	Retained Earnings	Total
	£	£	£	£	£	£
Balance at 1 January 2009	315,847	301,327	33,441	-	(160,868)	489,747
Total recognised loss for the period	-	-	-	-	(94,945)	(94,945)
Shares issued	14,285	429,643	-	-	-	443,928
Balance at 30 June 2009	330,132	730,970	33,441	-	(255,813)	838,730
Balance at 1 January 2008	641,796	624,066	-	66,351	(940,059)	392,154
Total recognised loss for the period	-	-	-	-	(21,825)	(21,825)
Capital reduction	(399,903)	-	-	-	-	(399,903)
Cancellation of share premium	-	(624,066)	-	-	624,066	-
Cancellation of deferred shares	(177,713)	-	-	-	177,713	-
Balance at 30 June 2008	64,180	-	-	66,351	(160,105)	(29,574)
Balance at 1 January 2008	641,796	624,066	-	66,351	(940,059)	392,154
Total recognised loss for the period	-	-	-	-	(22,589)	(22,589)
Capital reduction	(399,903)	-	-	-	-	(399,903)
Cancellation of share premium	-	(624,066)	-	-	624,066	-
Cancellation of deferred shares	(177,713)	-	-	-	177,713	-
On closure of subsidiary	-	-	-	(66,351)	-	(66,351)
Proceeds from shares issued	251,667	301,327	-	-	-	552,994
Share option reserve	-	-	33,441	-	-	33,441
Balance at 31 December 2008	315,847	301,327	33,441	-	(160,869)	489,746

consolidated CASH FLOW STATEMENT 

FOR THE SIX MONTHS ENDED 30 JUNE 2009

	Six months  ended  30 June 09	Six months ended  30 June 08	Year  ended  31 Dec 08
	Unaudited	Unaudited	Unaudited
	£	£	£
Cash flows from operating activities
Operating loss	(94,945)	(25,078)	(92,830)
Profit on disposal of subsidiary	-	-	11,974
Share based payments	-	-	33,441
(Increase)/decrease in trade and other receivables	(3,687)	2,888	(10,439)
Decrease in trade and other payables	22,838	(16,375)	(45,954)
Net cash from operating activities	(75,794)	(38,565)	(103,808)
Investing activities
Finance income	-	3,252	4,072
Proceeds from disposal group classified as held-for-sale	-	-	1
Purchase of investments - fair value through income statement	(19,082)	-	-
Net cash used in investing activities	(19,082)	(3,252)	(4,073)
Financing activities
Finance costs	-	-	(182)
Proceeds on issue of shares	-	-	600,000
Share issue costs	(2,500)	-	(47,006)
Capital reduction	-	(399,903)	(399,903)
Net cash generated/(used) in from financing activities	(2,500)	(399,903)	152,909
Net increase/(decrease) in cash and cash equivalents	(97,376)	(453,216)	53,174
Cash and cash equivalents at beginning of year	491,421	438,247	438,247
Cash and cash equivalents at end of year	394,045	3,031	491,421

NOTES TO THE INTERIM REPORT

FOR THE SIX MONTHS ENDED 30 JUNE 2009

1.      Financial Information and basis of preparation

The unaudited financial information comprises the consolidated interim balance sheets as at 30 June 2009 and 30 June 2008 and the related consolidated interim statements of income, changes in equity and cash flows and related notes for six months then ended hereinafter referred to as the 'financial information'.

The financial information, including the comparative figures for the year ended 31 December 2008; does not constitute statutory financial statements for the purposes of Section 240 of the Companies Act 1985. A copy of the statutory financial statements for the year ended 31 December 2008, prepared in accordance with the recognition and measurement criteria of the International Financial Reporting Standards (IFRS) as adopted by the European Union, has been delivered to the Registrar of Companies and contained an unqualified auditors' report in accordance with Section 235 of the Companies Act 1985.

The interim financial information has been prepared in accordance with the recognition and measurement requirements of IFRS as endorsed by the European Union. The Directors do not consider that there are any changes to the group's accounting policies set out in the 2008 Annual Report. As permitted, the Group has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing this interim financial information.

The following new standard is mandatory for the first time for the financial year beginning 1 January 2009:

IAS 1(revised) Presentation of Financial Statements. The revised statement prohibits the presentation of items of income and expense (that is 'non-owner changes in equity') in the statement of changes in equity, requiring the 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be presented in a performance statement. Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). The Company has decided to present two statements. The interim results have been prepared under the revised disclosure requirements.

2.      Loss per share

The calculation of the basic and diluted loss per share is based on the following data:

	30 June 09	30 June 08	31 December 08
	£	£	£
Loss after taxation	(94,945)	(21,826)	(88,940)
Weighted average number of shares	1,365,922,594	64,179,632	367,353,448
Loss per share (pence)	(0.01)	(0.03)	(0.02)

3.      Investments - fair value through income statement

On 13 March 2009, the Company entered into a joint venture agreement on a group of emerald mining licences in Tanzania, Africa, with Obtala Resources Plc and Obtala's subsidiary Mindex Invest Limited. Under the terms of the option agreement the Company acquired the sole right and option to purchase an initial twelve and a half per cent beneficial interest in the licences in exchange for issuing common shares the equivalent of five per cent of the Company's share capital to Obtala (option 1), totalling 71,428,571 shares. This equity, which equated to a value of £446,428 (based on the closing price on 12 March 2009 of 0.625p per Ordinary Shares), is placed in Obtala treasury. 

On 27 May 2009, the Company signed an option agreement with Javad Investments Company Limited, a private Tanzanian registered Company for two prospecting licences in Tanzania. Under the terms of the option agreement the Company acquired an initial 25% interest in both licences for a cash consideration payment of US$15,000 per licence. The Company has the sole right and option to purchase an additional sixty percent (60%) beneficial interest in the licences, within 24 month of signing the Option Agreement, in exchange for a cash payment of US$75,000 for each individual licence. The Company has a further option to purchase an additional thirteen percent (13%) beneficial interest in the licences, within 48 month of signing the Option Agreement, in exchange for either a cash payment or the issuing of common shares, or a combination of both to the equivalent of US$200,000 for each individual licence. 

4.      Dividends

No dividends are proposed for the six months ended 30 June 2009 (six months ended 30 June 2008 £nil: year ended 31 December 2008 £nil).

5.      Distribution on interim report to shareholders

The interim report will be available for inspection by the public at the registered office of the company during normal business hours on any weekday and from the Company's website www.gemstonesofafrica.net. Further copies are available on request.

For further information contact:

 Simon Rollason, Chairman         Gemstones of Africa Group Plc    Tel: [phone]

Simon Leathers/Stewart Dickson 

Nominated Advisor & Broker     Daniel Stewart & Company         Tel: [phone]

 

END

 

 

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