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GCM Resources PLC (GCM)

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Wednesday 29 September, 2010

GCM Resources PLC

Preliminary Results for year

RNS Number : 4611T
GCM Resources PLC
29 September 2010
 



GCM Resources plc 

(AIM:GCM)

29th September 2010

 

Preliminary Results for the twelve months ended 30 June 2010

 

·      GCM Resources plc (GCM) remains fully committed to the Phulbari Coal Project (the Project) in Bangladesh.  We continue to believe that it can provide the fastest, lowest risk and most reliable means of delivering the commercial energy required to bring a step-change in electricity availability for the people of Bangladesh.

 

·      The energy crisis in Bangladesh continues to worsen, highlighting the need for a significant increase in electricity generating capacity.  Load shedding has been averaging 8 to 12 hours per day and power shortages continue to adversely affect industry, business and daily life.  The existing generating capacity is being augmented by temporary rental diesel and heavy fuel oil powered generators although progress towards a targeted rental capacity of 1,300 MW is very slow.

 

·      To deliver longer term solutions, the energy budget has been increased by over 40% and the Government has prioritised the development of new power plants.  In December 2009 and January 2010 the Government hosted road-shows in London, New York and Singapore, and another in Dhaka in May 2010 to attract external investment into the Bangladesh energy sector.  In February 2010 a joint venture was signed with an Indian state owned power company to carry out a feasibility study for a 1,300 MW coal fired power station at Khulna, in southern Bangladesh.

 

·      GCM's discussions with the Government have moved onto the detail of Project implementation and continue to progress.  GCM remains ready to move the Project forward when it receives approval for its Scheme of Development. 

 

·      As at 30 June 2010 GCM held cash of £0.9 million and listed equity investments of £21.8 million (June 2009: cash £1.4 million, listed investments £20.2 million).  On 27 August 2010 GCM received a dividend from Polo Resources Limited of £2.2 million.

 

·      The Group made a loss of £3.2 million after tax for the year to 30 June 2010 (30 June 2009: loss of £5.7 million).  Evaluation expenditure relating to the Phulbari Coal Project was £3.2 million for the year to 30 June 2010 (30 June 2009: £2.9 million).

 

·      GCM disposed of its holding in Regent Pacific Group Limited and 1.9 million shares in Coal of Africa Limited for combined profit of £2.3 million.  An impairment charge of £4.7 million has been incurred in relation to the investment in PeoplesTel. 

 

 

The Income Statement, Statement of Comprehensive Income, Statement of Changes in Equity, Balance Sheet and Cash Flow are presented on the following pages.

 



 

Consolidated Income Statement For Year Ended 30 June

 



2010

2009



£000

£000

Operating expenses




Exploration and evaluation costs


463

353

Administrative expenses


1,435

1,578

Operating (loss)


(1,898)

(1,931)

Exceptional items


(2,399)

(5,563)

Finance revenue


29

188

(Loss) before tax


(4,268)

(7,306)

Taxation


1,054

1,614

(Loss) for the year


(3,214)

(5,692)





(Loss) per share




Basic and diluted (pence per share)


(6.3)p

(11.2)p

Consolidated Statement of Comprehensive Income For Year Ended 30 June

 



2010

2009



£000

£000

(Loss) for the year


(3,214)

(5,692)

Other comprehensive income




Net gain/(loss) on revaluation of available-for-sale financial assets


5,256

(26,958)

Transfer to income statement: sale of available-for-sale financial assets


(2,294)

-

Transfer to income statement: impairment of available-for-sale financial assets


-

4,430

Income tax relating to components of other comprehensive income


(829)

6,308

Total comprehensive income


(1,081)

(21,912)

 

 

 

 

 

Consolidated Statement of Changes in Equity For Year Ended 30 June

 

 

 

Share capital

Share premium account

Share based payments not settled

Net movement in available-for-sale investments

Accumulated losses

Total


£000

£000

£ 000

£000

£000

£000

Balance at 1 July 2008

5,101

44,164

843

24,305

(1,037)

73,376

Loss for the year

-

-

-

-

(5,692)

(5,692)

Other comprehensive income

-

-

-

(16,220)

-

(16,220)

Total comprehensive income

-

-

-

(16,220)

(5,692)

(21,912)

Share based payments

-

-

72

-

5

77

Balance at 30 June 2009

5,101

44,164

915

8,085

(6,724)

51,541

Loss for the year

-

-

-

-

(3,214)

(3,214)

Other comprehensive income

-

-

-

2,133

-

2,133

Total comprehensive income

-

-

-

2,133

(3,214)

(1,081)

Shares issued during the year

2

20

-

-

-

22

Share based payments

-

-

429

-

8

437

Balance at 30 June 2010

5,103

44,184

1,344

10,218

(9,930)

50,919

 

 



 

Consolidated Balance Sheet As At 30 June

 



2010

2009



£000

£000

Current assets




Cash and cash equivalents


891

1,355

Receivables


409

542

Total current assets


1,300

1,897

Non-current assets




Property, plant and equipment


116

173

Intangible assets


29,765

26,571

Financial assets


21,790

24,890

Total non-current assets


51,671

51,634

Total assets


52,971

53,531

Current liabilities




Payables


644

358

Total current liabilities


644

358

Non-current liabilities




Deferred tax liabilities


1,408

1,632

Total non-current liabilities


1,408

1,632

Total liabilities


2,052

1,990

Net assets


50,919

51,541

Equity




Share capital


5,103

5,101

Share premium account


44,184

44,164

Other reserves


11,562

9,000

Accumulated losses


(9,930)

(6,724)

Total equity


50,919

51,541

 



 

Consolidated Cash Flow Statement For Year Ended 30 June



2010

2009



£000

£000

Cash flows used in operating activities




(Loss) before tax


(4,268)

(7,306)

Adjusted for:




  Exceptional items


2,399

5,563

  Finance revenue


(29)

(188)

  Other non cash expenses


22

21



(1,876)

(1,910)

Movements in working capital:




  Decrease/(increase) in operating receivables

133

(290)

  Increase/(decrease) in operating payables

34

(257)

Cash used in operations


(1,709)

(2,457)

Interest received


3

226

Net cash used in operating activities


(1,706)

(2,231)

Cash flows from/(used in) investing activities




Payments for property, plant and equipment


(11)

(19)

Proceeds from sale of property, plant and equipment


28

-

Payments for intangible assets


(2,487)

(2,745)

Payments for investments


-

(3,697)

Proceeds from sale of investments


3,663

-

Dividends received


27

-

Net cash generated from/(used in) investing activities


1,220

(6,461)

Cash flows from financing activities




Issue of ordinary share capital


22

-

Net cash from financing activities


22

-

Total decrease in cash and cash equivalents


(464)

(8,692)

Cash and cash equivalents at the start of the year


1,355

10,047

Cash and cash equivalents at the end of the year


891

1,355

 

 

The audited financial information for the years ended 30 June 2010 and 30 June 2009 contained in this document do not constitute statutory accounts as defined in the Companies Act 2006.  The comparative financial information is based on the statutory accounts for the financial year ended 30 June 2009.  Those accounts, upon which the auditors issued an unqualified opinion with an emphasis of matter paragraph, have been delivered to the Registrar of Companies.  The financial information for the year ended 30 June 2010 has been extracted from the financial statements of GCM Resources plc which will be delivered to the Registrar of Companies in due course. The auditors have issued an unqualified opinion with a similar emphasis of matter paragraph on the Group's statutory financial statements for the year ended 30 June 2010.  The preliminary announcement was approved by the Board of Directors on 28 September 2010.

 

 

For further information:

GCM Resources plc

Steve Bywater

Chief Executive

 +44 (0) 20 7290 1630

 

Graham Taggart

Finance Director

+44 (0) 20 7290 1630

 

Pelham Bell Pottinger

Charles Vivian

44 (0)20 7861 3126

 

 

Klara Kaczmarek

+44 (0)20 7861 3883

J.P. Morgan Cazenove

Nominated Adviser

Michael Wentworth-Stanley

+44 (0) 20 7588 2828


 

GCM Resources plc


Tel: +44 (0) 20 7290 1630, Fax: +44 (0) 20 7290 1631


info@gcmplc.com; www.gcmplc.com


 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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