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Path Investments plc (PATH)

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Monday 25 September, 2017

Path Investments plc

Interim Results

RNS Number : 6370R
Path Investments plc
25 September 2017
 

 

25 September 2017

Path Investments plc

("Path" or the "Company")

 

Interim Results for the six months to 30 June 2017

 

Path Investments plc (TIDM: PATH), the energy investment company, announces its interim results for the six months to 30 June 2017.

 

Highlights

 

·     Admission to the Standard List segment of the Main Market of the London Stock Exchange on 30 March 2017 ("Admission")

·      Placing to raise £1.4 million at Admission

·      27 potential investment opportunities considered since Admission

·      7 investments currently under consideration, with 2 in advanced stages of discussion

·      Profit before tax £73,048 (H1 2016 loss of £1,598,832)

·      Earnings per share 0.067p (H1 2016 loss of 7.39p per share)

 

Commenting, Christopher Theis, Chief Executive of Path, said: "The first half of 2017 was a transformational period for the Company with the Admission to the Standard List.  Since Admission we have been extremely busy investigating potential investment opportunities that may meet our criteria.  We continue to believe that there is a significant opportunity to acquire interests in assets owned by financially distressed exploration led oil and gas companies and are exploring a number of potential transactions in detail.  We look forward to providing further updates on these as appropriate."

 

Christopher Theis

Andy Yeo

 

020 3053 8671

Shard Capital (Broker and Financial Adviser)

Simon Leathers

Damon Heath

 

0207 186 9900

IFC Advisory (Financial PR & IR)

Tim Metcalfe

Heather Armstrong

Miles Nolan

 

020 3053 8671

 

Path is an investment company with the objective of acquiring oil and gas production, or near production, assets which possess a lower risk profile than exploration or development assets. The company has a highly experienced management team and has a worldwide pipeline of potential opportunities.

 

 

This is my first report since our successful flotation onto the Standard List segment of the Official List of the London Stock Exchange on 30 March 2017. At that time, we welcomed a number of new shareholders to the Company who, with our existing members, wished to grasp the opportunities presented by the current disequilibrium in the energy markets.

 

Since then your directors have considered some 27 potential investments, the majority of which have been dispensed with, at or before the due diligence stage. Of that number, there are currently 7 investment candidates possessing what your directors believe are features capable of generating the most attractive returns for shareholders, of which 2 are at an advanced stage of discussion. Whilst there can be no certainty that those discussions will lead to completed transactions, the directors are hopeful at this time that the significant progress to date on both deals augurs well for the future.

 

At the time of our General Meeting on 22nd May 2017 two of our former directors, Donal Boylan and Rakesh Patel, chose to step down from their Board duties. We are very grateful for their help and guidance through some very difficult times, but are pleased to report that they have continued to provide assistance to the Company and remain very supportive of the business.

 

It remains your Board's belief that the imbalance within the energy markets may well remain at least for the next 2 to 3 years. Opportunities for potential transactions meeting our returns criteria continue to present themselves to us. We have been encouraged by our progress to date and look forward to updating our shareholders further shortly.

 

Brent Fitzpatrick

Non-executive Chairman

 

25th September 2017

 

 

 

For the six months to 30 June 2017, the Company recorded a profit before tax of £73,048. There was no income in the period.

 

 

During the period, in relation to its Admission to the Standard List Segment of the Main Market of the London Stock Exchange, the Company raised £1.4 million [before expenses] from an issue of 140 million additional Ordinary Shares for a subscription price of £0.01.

 

As at 30 June 2017 the Company held £586,726 in the bank account.

 

 

PATH INVESTMENTS PLC

 

FOR THE SIX MONTHS ENDED 30 JUNE 2017

 

 

 

 

 

Notes

Six months ended

30 June

Six months ended

30 June

Year ended 31 December

 

 

2017

2016

2016

 

 

Unaudited

Unaudited

Audited

 

 

£

£

£

Administrative expenses

3

110,543

(548,838)

(782,195)

Total administrative expenses

 

110,543

(548,838)

(782,195)

 

 

 

 

 

 

 

 

 

 

 

110,543

(548,838)

(782,195)

 

 

 

 

 

Finance income

 

5

6

8

Finance cost

 

(37,500)

-

(75,500)

Amounts written off investments

5

-

(1,050,000)

(1,050,000)

 

 

 

 

 

 

73,048

(1,598,832)

(1,907,687)

 

 

 

 

Tax on profit/(loss) on ordinary activities

 

-

-

-

 

 

 

 

Profit/(loss) for the year and total comprehensive loss for year

 

73,048

(1,598,832)

(1,907,687)

 

 

 

 

 

 

 

 

 

 

 

 

- Basic & diluted

4

0.067

(7.39)

(8.74)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

PATH INVESTMENTS PLC

 

FOR THE SIX MONTHS ENDED 30 JUNE 2017

 

 

 

 

Share Capital

Share Premium

Share

based payments reserve

Retained earnings

Total

 

£

£

£

£

£

As at 1 January 2016                            

8,578,088

24,134,750

715,752

(32,994,924)

433,666

Comprehensive income

Loss for the period

 

-

 

-

 

-

 

(1,598,832)

 

(548,832)

 

 

 

 

 

 

Issue of share capital

227,750

-

-

-

227,750

As at 31 June 2016                           

8,805,838

24,134,750

715,752

(34,593,756)

112,584

 

 

 

Share Capital

Share Premium

Share

based payments reserve

Retained earnings

Total

 

£

£

£

£

£

As at 1 January 2017                            

8,805,838

24,134,750

715,752

(34,902,611)

(1,246,271)

Comprehensive income

Profit for the period

 

-

 

--

 

--

 

73,048

 

73,048

 

Issue of share capital

 

173,930

 

1,565,363

 

--

 

-

 

1,739,293

Share issue costs

-

(283,088)

-

-

(283,088)

Waived share options

-

--

(382,479)

382,479

-

Transfer to retained reserves

-

--

(333,273))

333,273

-

Share based payment

-

--

-

298,290

298,290

As at 30 June 2017                              

8,979,768

25,417,025

--

(33,815,521)

581,272

 

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.

 

 

PATH INVESTMENTS PLC

 

statement of financial position

FOR THE SIX MONTHS ENDED 30 JUNE 2017

 

 

 

 

Notes

As at

30 June

2017

As at

30 June

2016

As at

31 December

2016

 

 

Unaudited

Unaudited

Audited

 

 

£

£

  £

 

 

 

 

 

ASSETS

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

-

1,411

-

Investments - available for sale

5

-

-

-

 

 

-

1,411

-

Current assets

 

 

 

 

Trade and other receivables

 

7,200

1,500

90,700

Cash and cash equivalents

 

586,726

30,540

23,672

 

 

593,926

32,040

114,372

LIABILITIES

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

6

(12,654)

(970,867)

(1,360,643)

Net Current Assets/(Liabilities)

 

581,272

(938,827)

(1,246,271)

 

 

 

 

 

NET ASSETS/(LIABILITIES)

 

581,272

(937,417)

(1,246,271)

 

SHAREHOLDERS' EQUITY

 

 

 

 

Called up share capital

7

195,944

8,805,838

22,014

Deferred shares

7

8,783,824

-

8,783,824

Share premium account

 

25,417,025

24,134,750

24,134,750

Share based payments reserve

 

-

715,752

715,752

Retained earnings

 

(33,815,521)

(34,593,756)

(34,902,611)

TOTAL EQUITY

 

581,272

(937,416)

(1,246,271)

 

 

 

 

 

 

 

PATH INVESTMENTS PLC

 

statement of cash flows

FOR THE SIX MONTHS ENDED 30 JUNE 2017

 

 

 

 

Six months to 30 June 2017

Six months to 30 June 2016

Year ended 31 December

2016

 

 

Unaudited

Unaudited

Audited

 

 

£

£

£

Operating loss

 

110,543

(548,838)

(782,195)

Decrease/(increase) in debtors

 

83,500

5,470

(83,730)

(Decrease)/increase in creditors within one year

 

(1,347,989)

242,862

632,638

Depreciation

 

-

-

1,411

Share based payment

 

298,290

-

-

Convertible loan note interest

 

(37,500)

-

(75,500)

 

 

 

 

 

 

(893,156)

(300,506)

(307,376)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest received

 

5

6

8

Net cash generated from investing activities

 

5

6

8

 

 

 

 

 

 

 

 

 

Net proceeds from the issue of ordinary shares

 

1,456,205

227,750

227,750

Net cash inflow from financing activities

 

1,456,205

227,750

227,750

 

 

 

 

 

 

563,054

(72,750)

(79,618)

Cash and cash equivalents at beginning of year

 

23,672

103,290

103,290

 

586,726

30,540

23,672

 

 

 

 

 

 

 

 

 

 

 

 

PATH INVESTMENTS PLC

 

notes to the finanial statements

FOR THE SIX MONTHS ENDED 30 JUNE 2017

 

 

 

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 Aston House, Cornwall Avenue, London, N3 1LF. The principal activity of the Company is the investment in oil and gas development and production companies, initially in Turkey.

 

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 2017 have been prepared on the basis of the accounting policies set out in the company's 2016 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 2016 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 2016 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 2016 accounts.

 

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 2017

Six months to 30 June 2016

Year ended 31 December

2016

 

Unaudited

Unaudited

Audited

 

£

£

£

Directors remuneration

(824,837)

267,561

415,013

Share based payment

298,291

-

-

Other administrative expenses

416,003

281,277

367,182

 

(110.543)

548,838

782,195

 

Included in Directors Remuneration for the period ended 30 June 2017 are previously accrued salaries and pensions costs of £937,904 which have been waived.

 

 

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 2017

Six months to 30 June 2016

Year ended 31 December

2016

 

Unaudited

Unaudited

Audited

 

£

£

£

Net profit/(loss) for the year

110,543

(1,598,838)

(1,907,687)

 

 

 

 

The weighted average number of shares in the period were:

 

 

 

 

 

 

 

Basic and dilutive ordinary shares

108,274,675

21,633,057

21,824,335

 

 

 

 

Basic and dilutive profit/(loss) per share (pence)

0.067

(7.39)

(8.74)

 

 

 

5.         INVESTMENTS - AVAILABLE FOR SALE

 

 

 

Unlisted Investments

 

 

Audited

 

 

£

At 1 January 2016

 

1,050,000

Impairment

 

(1,050,000)

At 31 December 2016

 

-

 

 

 

 

 

 

Unlisted Investments

 

 

£

 

 

Unaudited

At 1 January 2016

 

1,050,000

Impairment

 

(1,050,000)

At 30 June 2016

 

-

 

 

 

 

 

 

Unlisted Investments

 

 

£

 

 

Unaudited

At 1 January 2017

 

-

Impairment

 

-

At 30 June 2017

 

-

 

 

 

 

Unlisted investments are recorded at cost less impairment. Unlisted investments are instruments that do not have a quoted market price in an active market and their fair value cannot be measured reliably. The range of reasonable fair value estimates is significantly wide and the probabilities of the various estimates cannot be reasonably assessed as they relate to the underlying gas reserves in blocks which are currently being explored by a third party company. 

 

The unlisted investments as at 31 December 2016 comprised of a 5 per cent. interest each in ARAR and Alpay Enerji as at an aggregate cost of £8 million of which £6.9 million had already been impaired

 

During the period to 30 June 2016 and 31 December 2016, Mr. Fatih Alpay, the majority owner of ARAR and Alpay Enerji AS, made an initial offer to the Company of £1,050,000 for its 5% interest in both companies, payable in instalments.  However, since the offer was received, progress towards a legal sale and purchase agreement had been slow, as the payment proposed was by instalments over a period and the directors therefore considered the likelihood of finding an alternative buyer to be low, the directors decided to impair the asset to £nil.

 

 

 

6.         TRade and other payables

 

As at 30 June 2017

As at 30 June 2016

As at 31 December 2016

Unaudited

Unaudited

Audited

 

£

£

 

 

 

 

Trade payables

376

45,689

140,740

Taxation and social security

9,653

-

-

Other payables

-

-

151,000

Accruals and deferred income

2,625

925,178

1,068,903

 

12,654

970,867

1,360,643

 

 

7.         SHARE Capital

 

 

31 December

2016

31 December 2016

31 December

2016

31 December

2016

31 December

2016

31 December

2016

 

Audited

Audited

Audited

Audited

Audited

Audited

Allotted, called up and fully paid

no

£

no

£

no

£

 

Ordinary Shares of 40p each

Ordinary Shares of 40p each

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 2016

21,445,221

8,578,088

 

 

 

 

Share issues

 

 

 

 

 

 

On 23 March 2016, the company issued 62,500 Ordinary shares at par

 

62,500

 

25,000

 

 

 

 

On 4 April 2016, the company issued 69,375 Ordinary shares at par

 

69,375

 

27,750

 

 

 

 

On 10 May 2016, the company issued 400,000 Ordinary shares at par

 

400,000

 

160,000

 

 

 

 

On 20 May 2016, the company issued 25,000 Ordinary shares at par

 

25,000

 

10,000

 

 

 

 

On 2 June 2016, the company issued 12,500 Ordinary shares at par

 

12,500

 

5,000

 

 

 

 

                     

                   

 

 

 

 

22,014,596

8,805,838

 

 

 

 

In October 2016, the Company passed an ordinary resolution to subdivide the existing 22,014,596 Ordinary shares of 40 pence each into 22,014,596 New Ordinary shares of 0.1 pence and 22,014,596 Deferred shares of 39.9 pence. The above subdivision also applies to outstanding share options and warrants in October 2016.

 

 

 

 

 

(22,014,596)

 

 

 

 

(8,805,838)

22,014,596

22,014

22,014,596

8,783,824

 

                     

                     

                     

                   

                     

                     

-

-

22,014,596

22,014

22,014,596

8,783,824

 

                    

                    

                    

                  

                    

                  

 

 

 

 

 

 

 

 

 

 

 

 

30 June

2016

30 June 2016

 

 

 

 

 

Unaudited

Unaudited

Allotted, called up and fully paid

 

 

 

 

no

£

 

 

 

 

 

Ordinary Shares of 40p each

Ordinary Shares of 40p each

At 1 January 2016

 

 

 

 

21,445,221

8,578,088

Share issues

 

 

 

 

 

 

On 23 March 2016, the company issued 62,500 Ordinary shares at par

 

 

 

 

 

62,500

 

25,000

On 4 April 2016, the company issued 69,375 Ordinary shares at par

 

 

 

 

 

69,375

 

27,750

On 10 May 2016, the company issued 400,000 Ordinary shares at par

 

 

 

 

 

400,000

 

160,000

On 20 May 2016, the company issued 25,000 Ordinary shares at par

 

 

 

 

 

25,000

 

10,000

On 2 June 2016, the company issued 12,500 Ordinary shares at par

 

 

 

 

 

12,500

 

5,000

 

 

 

 

                     

                   

 

 

 

 

22,014,596

8,805,838

 

 

 

 

 

                    

                    

 

 

 

 

 

 

30 June 2017

30 June 2017

30 June 2017

30 June 2017

 

 

 

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 2017

 

 

22,014,596

22,014

22,014,596

8,783,824

Share issues

 

 

 

 

 

 

On 22 March 2017, the company issued 140,000,000 Ordinary shares at 1p each

 

 

 

140,000,000

 

140,000

 

 

On 16 May 2017, the company issued 20,300,000 Ordinary shares at 1p each on conversion of unsecured loan stock 2016

 

 

 

20,300,000

 

20,300

 

 

On 16 May 2017, the company issued 13,629,206 Ordinary shares at 1p each in settlement of various invoices from the company's advisers.

 

 

 

13,629,206

 

13,630

 

 

 

 

 

                     

                   

                     

                     

 

 

195,943,802

195,943

22,014,596

8,783,824

 

 

 

                    

                  

                    

                  

 

In common with all organisations, the Group faces risks which may affect its performance.  The Group operates a system of internal control and risk management in order to provide assurance that we are managing risk whilst achieving our business objectives.  No system can fully eliminate risk and therefore the understanding of operational risk is central to management processes.  The long-term success of the Group depends on the continual review, assessment and control of the key business risks it faces.

 

The Directors set out in the Prospectus dated 24 March 2017 the principal risks identified during this exercise, including risks related to the Company and its business, industry related risks and financial risks.  The Board does not consider that these risks have changed materially in the last six months.

 


This information is provided by RNS
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