UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT
TO
RULE 13a-16 OR 15d-16 OF THE SECURITIES
EXCHANGE ACT OF 1934
For the month of February 2016
Commission File Number: 001-35022
Mission NewEnergy Limited
(Translation of registrant’s name
into English)
Unit B9, 431 Roberts Rd
Subiaco, Western Australia 6008
Australia
(Address of principal executive office)
Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F √
Form 40-F
Indicate by check mark if the registrant
is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant
is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing
the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to
Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
No √
If “Yes” is marked, indicate
below the file number assigned to the registrant in connection with Rule 12g3-2(b):
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Mission NewEnergy Limited
By: /s/ Guy Burnett
Name: Guy Burnett
Title: Chief Financial Officer and Company Secretary
Date: February 24, 2016
EXHIBIT INDEX
| |
Exhibit Number |
Description |
| |
99.1 |
Appendix 4D and Half year report |
Exhibit 99.1
 |
MISSION NEW ENERGY LIMITED
(ACN: 117 065 719)
Tempo Offices,
Unit B9,
431 Roberts
Rd, Subiaco,
Western
Australia, 6008
Tel: +
618 6313 3975
Fax: +
618 6270 6339
E-mail:
invest@missionnewenergy.com
|
24th February 2016
Company Announcements Office
Australian Securities Exchange
Dear Sir/Madam,
Appendix 4D
Mission New Energy Limited’ Appendix 4D for the half year
ended 31 December 2015 is attached.
For and on behalf of
MISSION NEW ENERGY LIMITED
Guy Burnett
Company Secretary
Half – Year Financial Report of
Mission New Energy Limited for the period
Ended 31 December 2015
ABN 63 117 065 719
This Half Year Financial Report is provided to the Australian
Securities Exchange (ASX) under Listing Rule 4.2A.3
| Current Reporting Period: |
31 December 2015 |
| |
|
| Previous Corresponding Period: |
31 December 2014 |
Source Reference: ASX Append
4D.1, ASX listing Rules 4.2A.3
Mission New Energy Limited
ABN: 63
117 065 719
Results for Announcement To The Market
For the Half Year Ended 31 December 2015
Revenue and Net Profit/ (Loss)
| |
|
|
|
|
|
Percentage |
|
|
Amount |
|
| |
|
|
|
|
|
Change (%) |
|
|
$’000 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| ASX Append 4D 2.1 |
|
Revenue from ordinary activities |
|
down |
|
|
97 |
|
|
|
18,233 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| ASX Append 4D 2.2 |
|
Profit/ (loss) from ordinary activities after down |
|
down |
|
|
105 |
|
|
|
1,387,702 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| ASX Append $D 2.3 |
|
Net profit/ (loss) attributable to members |
|
down |
|
|
105 |
|
|
|
1,387,702 |
|
Dividends (Distributions)
| |
|
|
|
|
|
|
|
|
Franked |
|
| |
|
|
|
|
Amount per |
|
|
|
amount per |
|
| |
|
|
|
|
Security |
|
|
|
Security |
|
| |
|
|
|
|
|
|
|
|
|
|
| ASX Append 4D 2.4 |
|
Final dividend |
|
|
Nil |
|
|
|
Nil |
|
| ASX Append 4D 2.4 |
|
Interim dividend |
|
|
Nil |
|
|
|
Nil |
|
| ASX Append 4D 2.5 |
|
Record date for determining entitlements to the dividend: |
|
|
N/A |
|
|
|
N/A |
|
Brief explanation of Revenue, Net Profit/ (Loss)
and Dividends (Distributions)
ASX Append 4D 2.6
Revenue for the current period
is from interest earned on cash reserves, with the net loss of the group a result of the costs of ongoing operations.
Mission New Energy Limited
ABN 63 117 065 719
___________________________________________________________________
Additional Disclosures
Required for Appendix 4D
|
Source
Reference |
|
|
|
| |
1. |
Net Tangible Assets per Security |
|
| |
|
|
31.12.2015
$ per share |
31.12.2014
$ per share |
|
ASX Append
4D.3
|
|
Net tangible assets per security |
0.14 |
0.52 |
| |
|
|
|
| |
2. |
Details Relating to Dividends (Distributions) |
|
| |
|
|
|
|
ASX Append
4D.5
|
|
The company did not declare a dividend during the financial period and has not declared a dividend since the end of the financial period. |
|
|
Source
Reference |
|
|
| |
3. |
Information on Audit or Review |
|
ASX Append
4D.9 |
|
This half year report is based on accounts to which one of the following applies. |
| |
|
The accounts have been audited |
X The accounts have been subject to review |
| |
|
The accounts are in the process of being audited or subject to review |
The accounts have not yet been audited or reviewed |
| |
|
|
|
|
ASX Append
4D.9 |
|
Description of likely dispute or qualification if the accounts have not yet been audited or subjected to review or are in the process of being audited or subjected to review. |
| |
|
Not applicable |
| |
|
| |
|
|
|
ASX Append
4D.9 |
|
Description of dispute or qualification if the accounts have been audited or subjected to review. |
| |
|
Not applicable |
Mission
NewEnergyLimited
One Mission
: One Energy : NewEnergy
Interim Financial Report for
the Half Year ended
31 December 2015
Table
of Contents
| Directors’
report |
2 |
| Review
of operations |
2 |
| Lead
Auditor’s Independence Declaration |
4 |
| Consolidated
statement of profit or loss and other comprehensive income |
5 |
| Consolidated
statement of financial position |
7 |
| Consolidated
statement of changes in equity |
8 |
| Consolidated
statement of cash flows |
10 |
| Condensed
notes to the consolidated interim financial statements |
11 |
| Directors’
declaration |
20 |
| Independent
review report to the members of Mission NewEnergy Ltd |
21 |
Directors’
report
The
Director’s present their report together with the consolidated interim financial report for the six months ended 31 December
2015 and the review report thereon.
Directors
The
Director’s of the Company at anytime during or since the end of the interim period are:
| Name |
Period
of directorship |
| Non-executive |
|
| Datuk
Zain Yusuf (Chairman) |
Chairman
since 1 July 2014. Director since 24 January 2006. |
| Admiral
(Ret) Tan Sri Dato’ Sri Mohd Anwar bin Haji Mohd Nor |
Director
since 25 June 2009 |
| Mohd
Azlan bin Mohammed |
Director
since 15 September 2014 |
| Executive |
|
| Dato’
Nathan Mahalingam (Group Chief Executive Officer) |
Director
since 17 November 2005 |
| Mr
Guy Burnett (Chief Financial Officer) |
Director
since 6 April 2009 |
| Mr
James Garton (Head of Corporate Finance) |
Director
since 1 July 2014 |
Review
of operations
Summary
of results
Revenue
for the consolidated group amounted to $18,233 (2014: $688,222). Net loss of the consolidated group, after providing for interest,
impairment, depreciation, amortisation and income tax amounted to $1,387,702 (2014: $28,678,281 profit). The net profit for the
previous comparative year included an impairment reversal of the 250,000 tpa refinery that had previously been fully impaired
by a value of $27,586,573.
Dividends
Paid or Recommended
No
dividends have been paid or declared for payment.
Review
of Operations
Biodiesel
feedstock Segment
The
Group owns a 20% stake in a refinery joint venture with Felda Global Ventures Holdings Berhad, the world’s largest
palm oil producer, and Benefuels, a US based company with a ground breaking disruptive and patented technology process that
allows refineries to be operated using substantially lower cost feedstock. The joint venture is in the final stages of a
detailed engineering study which will determine the full anticipated cost of the retrofit and expected time frame for the
retrofit to be completed and the refinery commissioned. In August 2015 the Company announced that the ongoing dispute
with KNM Process Systems Sdn Bhd (KNM) has been amicably settled. The material terms of the settlement was that Mission paid
KNM A$4m, being the amount put aside by Mission upon the sale of Mission’s 250,000 tpa refinery in February 2015,
pursuant to a consent order agreed to by Mission and KNM earlier.
Pursuant
to the convertible note settlement agreement announced in February 2015, the balance of the monies withheld (US$0.9 m) from the
sale of the refinery, shown on Balance Sheet at 31 December 2015 as a Other Financial Asset with a corresponding amount shown
as a short term provision, is expected to be paid to note holders pending formal confirmation of court proceedings.
Corporate
The
Company continues to review several business opportunities, with its focus mainly on income generating businesses.
Financial
Position
The
Group showed a loss for the six months ended 31 December 2015 of $1,387,702 (2014: $28,678,281 profit), a current assets less
current liability surplus of $1,958,317 (30 June 2015: $2,999,383) and a net asset surplus of $5,600,025 (30 June 2015: surplus
$6,769,556) at balance date. The Group’s net cash used in operating activities for the six months ended 31 December 2015
was $1,266,058 (2014: used $1,059,721).
Subsequent
Events
There
have been no significant subsequent events up until the date of signing this financial report.
Significant
Changes in State of Affairs
There
have been no significant changes to the state of affairs up to the date of signing this financial report.
Lead
auditor’s independence declaration
The
lead auditor’s independence declaration is set out on page 4 and forms part of the Directors’ Report for the six months
ended 31 December 2015.
Dated
at Perth this 24th day of February 2016.
Signed
in accordance with a resolution of the Directors:
_______________________________
Dato’ Nathan Mahalingam
Managing Director
 |
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
|
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
|
DECLARATION OF INDEPENDENCE BY WAYNE BASFORD TO THE DIRECTORS
OF MISSION NEWENERGY LIMITED
As lead auditor for the review of Mission NewEnergy Limited
for the half-year ended 31 December 2015, I declare that, to the best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements
of the Corporations Act 2001 in relation to the review; and
2. No contraventions of any applicable code of professional
conduct in relation to the review.
This declaration is in respect of Mission NewEnergy Limited
and the entities it controlled during the
period.
Wayne Basford
Director
BDO Audit (WA) Pty Ltd
Perth, 24 February 2016
BDO
Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are
members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions
of financial services licensees.
Mission
NewEnergy Ltd
Consolidated
statement of profit or loss and other comprehensive income
For
the six months ended on 31 December 2015
| | |
Note | |
31.12.2015 | | |
31.12.2014 | |
| Continuing
operations | |
| |
| | |
| |
| Sale of goods | |
| |
- | | |
- | |
| Other
revenue | |
5 | |
| 18,233 | | |
| 688,222 | |
| Total
revenue | |
| |
| 18,233 | | |
| 688,222 | |
| Employee
benefits expense | |
| |
| (571,689 | ) | |
| (414,292 | ) |
| Net
foreign exchange (loss)/gain | |
| |
| (231,113 | ) | |
| 3,327,071 | |
| Asset
sale/plant expenses | |
| |
| (141,087 | ) | |
| (206,177 | ) |
| Travel
expenses | |
| |
| (120,850 | ) | |
| (67,730 | ) |
| Shareholder
expenses | |
| |
| (13,350 | ) | |
| (35,779 | ) |
| Consultants
expenses | |
| |
| (1,036 | ) | |
| (8,017 | ) |
| Other
expenses from ordinary activities | |
| |
| (194,469 | ) | |
| (632,118 | ) |
| Rental
expenses | |
| |
| (4,850 | ) | |
| (900 | ) |
| Depreciation
and amortisation | |
| |
| - | | |
| (2,821 | ) |
| Reversal
/ (Impairment) of property, plant and equipment | |
4a | |
| - | | |
| 27,586,573 | |
| Finance
costs | |
| |
| - | | |
| (1,555,751 | ) |
| (Loss)/Profit
from continuing operations before income tax | |
| |
| (1,260,211 | ) | |
| 28,678,281 | |
| Income
tax (expense)/benefit | |
| |
| - | | |
| - | |
| Net
(Loss)/Profit for the period before non controlling interest | |
| |
| (1,260,211 | ) | |
| 28,678,281 | |
Share
of net loss of associate accounted for using the equity method
| |
| |
| (127,491 | ) | |
| - | |
| (Loss)/Profit
for the year | |
| |
| (1,387,702 | ) | |
| 28,678,281 | |
| Attributable
to: | |
| |
| | | |
| | |
| Members
of the parent | |
| |
| (1,387,702 | ) | |
| 28,533,196 | |
| Non-controlling
interests | |
| |
| - | | |
| 145,085 | |
Mission
NewEnergy Ltd
Consolidated
statement of profit or loss and other comprehensive income (contd.)
For
the six months ended on 31 December 2015
| | |
31.12.2015 | | |
31.12.2014 | |
| | |
| | | |
| | |
| Profit
/ (Loss) for the period | |
| (1,387,702 | ) | |
| 28,678,281 | |
Other
comprehensive income Items
that will be realised through profit or loss: Exchange
differences on translating foreign operations | |
| (218,171 | ) | |
| 2,920,320 | |
| Gain
on settlement of portion of Series 4 Convertible Notes | |
| - | | |
| (123,934 | ) |
| Other
comprehensive (loss)/income for the period net of tax | |
| (218,171 | ) | |
| 2,796,386 | |
| Total
comprehensive (loss)/income for the period | |
| (1,605,873 | ) | |
| 31,474,667 | |
| Attributable
to owners of the parent | |
| (1,605,873 | ) | |
| 31,329,582 | |
| Attributable
to non-controlling interests | |
| - | | |
| 145,085 | |
| Comprehensive
(loss)/income from Continuing Operations | |
| (1,605,873 | ) | |
| 31,598,601 | |
| | |
| | | |
| | |
Earnings
per share from continuing operations attributable to the ordinary equity holders of the
parent: | |
| |
| | | |
| | |
| Basic
earnings/(loss) per share (dollars) | |
6 | |
| (0.13 | ) | |
| 1.11 | |
| Diluted
earnings/(loss) per share (dollars) | |
6 | |
| (0.13 | ) | |
| 1.11 | |
| | |
| |
| | | |
| | |
Earnings
per share from profits attributable to the ordinary equity holders of the parent: | |
| |
| | | |
| | |
| Basic
earnings/(loss) per share (dollars) | |
6 | |
| (0.13 | ) | |
| 1.10 | |
| Diluted
earnings/(loss) per share (dollars) | |
6 | |
| (0.13 | ) | |
| 1.10 | |
The
accompanying notes form part of this financial report
Mission
NewEnergy Ltd
Consolidated
statement of financial position
As
at 31 December 2015
| | |
Note | |
31.12.2015 | | |
30.06.2015 | |
| CURRENT
ASSETS | |
| |
| | | |
| | |
| Cash
and cash equivalents | |
| |
| 1,895,180 | | |
| 3,150,776 | |
| Trade
and other receivables | |
| |
| 6,833 | | |
| 77,340 | |
| Other
financial assets | |
| |
| 1,579,511 | | |
| 5,580,022 | |
| Other
assets | |
| |
| 85,829 | | |
| 42,937 | |
| Current
tax assets | |
| |
| - | | |
| - | |
| Total
current assets | |
| |
| 3,567,353 | | |
| 8,851,075 | |
| NON-CURRENT
ASSETS | |
| |
| | | |
| | |
| Investment
in Associates | |
10 | |
| 3,641,708 | | |
| 3,770,173 | |
| Total
non-current assets | |
| |
| 3,641,708 | | |
| 3,770,173 | |
| TOTAL
ASSETS | |
| |
| 7,209,061 | | |
| 12,621,248 | |
| CURRENT
LIABILITIES | |
| |
| | | |
| | |
| Trade
and other payables | |
| |
| 168,813 | | |
| 440,013 | |
| Short-term
provisions | |
| |
| 1,440,223 | | |
| 5,411,679 | |
| Total
current liabilities | |
| |
| 1,609,036 | | |
| 5,851,692 | |
| NON-CURRENT
LIABILITIES | |
| |
| | | |
| | |
| Financial
liabilities | |
11 | |
| - | | |
| - | |
| Total
non-current liabilities | |
| |
| - | | |
| - | |
| TOTAL
LIABILITIES | |
| |
| 1,609,036 | | |
| 5,851,692 | |
| NET
ASSETS / (LIABILITIES) | |
| |
| 5,600,025 | | |
| 6,769,556 | |
| EQUITY | |
| |
| | | |
| | |
| Issued
capital | |
7 | |
| 523,197 | | |
| 523,197 | |
| Reserves | |
| |
| 1,098,715 | | |
| 880,544 | |
| Accumulated
profit | |
| |
| 3,978,113 | | |
| 5,365,815 | |
| TOTAL
EQUITY | |
| |
| 5,600,025 | | |
| 6,769,556 | |
The
accompanying notes form part of this financial report
Mission
NewEnergy Ltd
Consolidated
statement of changes in equity
For
the six months ended 31 December 2015
| Consolidated Group | |
Ordinary Share Capital | | |
Accumulated Profit / (loss) | | |
Share Based Payment Reserve | | |
Foreign Currency Translation Reserve | | |
Non-controlling Interests | | |
Total | |
| 1 July 2015 | |
| 523,197 | | |
| 5,365,815 | | |
| 150,000 | | |
| 730,544 | | |
| - | | |
| 6,769,556 | |
| Profit (loss) attributable to members of the Group | |
| - | | |
| (1,260,211 | ) | |
| - | | |
| - | | |
| - | | |
| (1,260,209 | ) |
Share of net profit of
associate accounted for
using the equity method | |
| - | | |
| (127,491 | ) | |
| - | | |
| - | | |
| - | | |
| (127,491 | ) |
| Other comprehensive income/(loss) for the period | |
| - | | |
| - | | |
| - | | |
| 218,171 | | |
| - | | |
| 218,171 | |
| Total comprehensive income | |
| 523,197 | | |
| 3,978,113 | | |
| 150,000 | | |
| 948,715 | | |
| - | | |
| 5,600,025 | |
| 31 December 2015 | |
| 523,197 | | |
| 3,978,113 | | |
| 150,000 | | |
| 948,715 | | |
| - | | |
| 5,600,025 | |
Mission
NewEnergy Ltd
Consolidated
statement of changes in equity
For
the six months ended 31 December 2014
| Consolidated Group | |
Ordinary Share Capital | | |
Accumulated Profit / (loss) | | |
Share Based Payment Reserve | | |
Foreign Currency Translation Reserve | | |
Convertible Notes Reserve | | |
Non-controlling Interests | | |
Total | |
| 1 July 2014 | |
| 110,523,197 | | |
| (141,617,611 | ) | |
| 4,907,496 | | |
| 3,216,319 | | |
| 11,690,242 | | |
| (70,864 | ) | |
| (11,351,221 | ) |
| Profit (loss) attributable to members of the Group | |
| - | | |
| 28,533,196 | | |
| - | | |
| - | | |
| - | | |
| 145,085 | | |
| 28,678,281 | |
| Other comprehensive income/(loss) for the period | |
| - | | |
| 123,934 | | |
| - | | |
| (2,920,320 | ) | |
| - | | |
| - | | |
| (2,796,386 | ) |
| Total comprehensive income | |
| - | | |
| 28,657,130 | | |
| - | | |
| (2,920,320 | ) | |
| - | | |
| 145,085 | | |
| 25,881,895 | |
| Transactions with owners in their capacity as owners |
| Settlement of $2.3m of series 4 con note debt | |
| - | | |
| - | | |
| - | | |
| - | | |
| (1,079,686 | ) | |
| - | | |
| (1,079,686 | ) |
| Share capital reduction via accumulated losses offset1 | |
| (110,000,000 | ) | |
| 110,000,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Share based payment reserve cleared | |
| - | | |
| 4,907,496 | | |
| (4,907,496 | ) | |
| - | | |
| - | | |
| - | | |
| - | |
| 31 December 2014 | |
| 523,197 | | |
| 1,947,015 | | |
| - | | |
| 295,999 | | |
| 10,610,556 | | |
| 74,221 | | |
| 13,450,988 | |
The
accompanying notes form part of this financial report
___________________________
| 1 | The
share capital reduction does not affect the number of fully paid ordinary shares on issue by the Company. |
Mission NewEnergy Ltd
Consolidated
statement of cash flows
For
the six months ended 31 December 2015
| | |
Note | |
31.12.2015 | | |
31.12.2014 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | |
| |
| | | |
| | |
| Receipts from customers | |
| |
| - | | |
| - | |
| Payments to suppliers and employees | |
| |
| (1,284,237 | ) | |
| (1,060,695 | ) |
| Interest received | |
| |
| 18,233 | | |
| 1,017 | |
| Finance costs | |
| |
| - | | |
| - | |
| Income tax paid | |
| |
| (54 | ) | |
| (43 | ) |
| Net cash used in operating activities | |
| |
| (1,266,058 | ) | |
| (1,059,721 | ) |
| | |
| |
| | | |
| | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |
| |
| | | |
| | |
| Proceeds from Indonesian Joint venture settlement | |
| |
| - | | |
| 3,771,128 | |
| Proceeds from sale of assets | |
| |
| - | | |
| 242,758 | |
| Investment in associate | |
| |
| - | | |
| (110,733 | ) |
| Amounts paid on settlement of for legal dispute | |
| |
| (4,040,886 | ) | |
| - | |
| Amounts released from deposit for legal dispute | |
| |
| 4,040,886 | | |
| - | |
| Deposits released/(placed) as security for performance bond | |
| |
| - | | |
| 20,565 | |
| Net cash generated from investing activities | |
| |
| - | | |
| 3,923,718 | |
| | |
| |
| | | |
| | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |
| |
| | | |
| | |
| Repayment of borrowings | |
| |
| - | | |
| (2,344,391 | ) |
| Net cash used in financing activities | |
| |
| - | | |
| (2,344,391 | ) |
| | |
| |
| | | |
| | |
| NET INCREASE/(DECREASE) IN CASH HELD | |
| |
| (1,266,058 | ) | |
| 519,606 | |
| Cash at beginning of the financial year | |
| |
| 3,150,776 | | |
| 451,953 | |
| Cash balance from discontinued operation | |
| |
| - | | |
| - | |
| Effects of exchange rate fluctuations of cash held in foreign currencies | |
| |
| 10,462 | | |
| 204,295 | |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | |
| |
| 1,895,180 | | |
| 1,175,854 | |
The
accompanying notes form part of this financial report
Mission NewEnergy Ltd
Condensed
notes to the consolidated interim financial statements
For
the six months ended 31 December 2014
| 1. | Nature of operations and general
information |
Mission
New Energy Limited is a renewable energy company domiciled in Australia (ACN: 117 065 719) and:
| · | listed
on the ASX (MBT) with its operations in Malaysia; |
| · | That
has a 20% interest in a Joint Venture owning a 250,000 tpa (approx. 75 million gallon p.a.) biodiesel refinery which is being
retrofitted to produce bioiesel from lower cost feedstock. |
The
interim consolidated financial report of the Company as at and for the six months ended 31 December 2015 comprises the Company
and its subsidiaries (together referred to as the “Group”), and have been prepared in accordance with AASB 134 Interim
Financial Reporting and the Corporations Act 2001.
The
financial statements have been prepared on a going concern basis.
The
consolidated interim financial report does not include all of the information required for a full annual financial report, and
should be read in conjunction with the consolidated annual financial report of the Group as at and for the year ended 30 June
2015. The consolidated annual financial report of the Group as at and for the year ended 30 June 2015 is available upon request
from the Company’s registered office at Unit B9, 431 Roberts Road, Subiaco WA 6008 or at www.missionnewenergy.com.
This
consolidated interim financial report was approved by the Board of Directors on the 24th February 2015.
| 3. | Significant accounting
policies |
The
accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting.
Mission NewEnergy Ltd
The
preparation of interim financial reports requires the Board to make judgements, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets and liabilities, income and expenses. The Board evaluates estimates
and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates
assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and
within the Group. Actual results may differ from these estimates.
Except
as described below, in preparing this consolidated interim financial report, the significant judgements made by management in
applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that were
applied to the consolidated financial report as at and for the half year ended 31 December 2015. During the six months ended 31
December 2015 management reassessed its estimates in respect of:
a.
Impairment of assets
The
Group assesses impairment of assets at each reporting date by evaluating conditions specific to the Group that may lead to impairment.
Where an impairment trigger exists, the recoverable amount of the asset is determined.
Investments
in associates
Investments
in associates are reviewed for impairment if there is any indication that the carrying amount may not be recoverable. Where a
review for impairment is conducted, the recoverable amount is assessed by reference to the higher of ‘value in use’
(being the net present value of expected future cash flows of the relevant cash generating unit) and ‘fair value less costs
to sell’.
| | |
31.12.2015 | | |
31.12.2014 | |
| Other revenue | |
| - | | |
| 687,205 | |
| Other revenue - interest | |
| 18,233 | | |
| 1,017 | |
| | |
| 18,233 | | |
| 688,222 | |
Mission NewEnergy Ltd
The
calculation of the basic earnings per share is based on profits/(losses) attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the period.
The
calculation of diluted earnings per share is based on the basic earnings/(loss) per share, adjusted to allow for the potential
issue of shares, on the assumed conversion of all dilutive options and other dilutive potential ordinary shares.
Reconciliations
of the earnings and weighted average number of shares used in the calculations are set out below.
| | |
31.12.2015 | | |
31.12.2014 | |
| Profit/(loss) after tax and earnings attributable to ordinary share holders | |
| (1,387,702 | ) | |
| 28,533,196 | |
| Weighted average number of shares (used for basic earnings per share) | |
| 40,870,275 | | |
| 25,870,275 | |
| Diluted weighted average number of shares (used for diluted earnings per share) | |
| 40,870,275 | | |
| 25,870,275 | |
| Basic earnings per share – continuing operations - $ | |
| (0.13 | ) | |
| 1.11 | |
| Diluted earnings per share – continuing operations - $ | |
| (0.13 | ) | |
| 1.11 | |
| Basic earnings per share – attributable to ordinary equity holders - $ | |
| (0.13 | ) | |
| 1.10 | |
| Diluted earnings per share – attributable to ordinary equity holders - $ | |
| (0.13 | ) | |
| 1.10 | |
Mission
NewEnergy Ltd
During
the six months to 31 December 2015, there were no new issues of ordinary shares.
| | |
Numbers | | |
A$ (net of issue costs) | |
| 30 June 2014 | |
| 25,870,275 | | |
| 110,523,197 | |
| Share issue – February 2015 | |
| 15,000,000 | | |
| - | |
| Share capital reduction via accumulated losses offset | |
| - | 2 | |
| (110,000,000 | ) |
| 30 June 2015 | |
| 40,870,275 | | |
| 523,197 | |
| Share issue | |
| - | | |
| - | |
| 31 December 2015 | |
| 40,870,275 | | |
| 523,197 | |
_________________________
2
The share capital reduction does not affect
the number of fully paid ordinary shares on issue by the Company.
Mission NewEnergy Ltd
Condensed
notes to the consolidated interim financial statements (contd.)
For the six
months ended 31 December 2015
| | |
Biodiesel | | |
Corporate | | |
Consolidated
| |
| External sales | |
- | | |
- | | |
- | |
| Other revenue | |
| - | | |
| 18,233 | | |
| 18,233 | |
| Total segment revenue | |
| - | | |
| 18,233 | | |
| 18,233 | |
| Segment result | |
| (685,024 | ) | |
| (575,185 | ) | |
| (1,260,211 | ) |
| | |
| | | |
| | | |
| | |
Profit
/ (Loss) from ordinary activities before income tax | |
| | | |
| | | |
| (1,260,211 | ) |
| Segment assets | |
| 5,333,421 | | |
| 1,875,640 | | |
| 7,209,061 | |
| Segment liabilities | |
| (1,303,691 | ) | |
| (305,345 | ) | |
| (1,609,036 | ) |
Mission NewEnergy Ltd
For the six
months ended 31 December 2014
| | |
Biodiesel (Continuing operations) | | |
Corporate | | |
Consolidated | |
| External sales | |
- | | |
- | | |
- | |
| Other revenue | |
| 7,841 | | |
| 680,381 | | |
| 688,222 | |
| Total segment revenue | |
| 7,841 | | |
| 680,381 | | |
| 688,222 | |
| Segment result | |
| 29,887,753 | | |
| (1,209,473 | ) | |
| 28,533,196 | |
| | |
| | | |
| | | |
| | |
Profit / (Loss) from ordinary activities before income tax | |
| | | |
| | | |
| 28,533,196 | |
| Segment assets | |
| 28,474,635 | | |
| 1,175,634 | | |
| 29,650,259 | |
| Segment liabilities | |
| (588,478 | ) | |
| - | | |
| (16,199,271 | ) |
Mission NewEnergy Ltd
The
Managing Director/Group Chief Executive Officer is the Chief operating decision maker. The reportable segments presented are in
line with the segmental information reported during the financial year to the Group Chief Executive Officer.
Segment
revenues and expenses are those directly attributable to the segments and include any joint revenue and expenses where a reasonable
basis of allocation exists. Segment assets include all assets used by a segment and consist principally of cash, receivables,
and property, plant and equipment, net of allowances, provisions and accumulated depreciation and amortisation. Segment liabilities
consist principally of payables, employee benefits, accrued expenses and borrowings. Segment assets and liabilities do not include
deferred income taxes. Segments exclude discontinued operations.
There
were no intersegment transfers
Business
and Geographical Segments
The
Group has two key business segments. The Group’s business segments are located in Malaysia with the Group’s head office
located in Australia. The Biodiesel Refinery segment is located in Malaysia.
9.
Property, plant and equipment acquisitions and capital commitments
Acquisitions
and disposals
During
the six months ended 31 December 2015 the Group acquired assets with a cash cost of NIL (six months ended 31 December 2014: NIL).
In September 2014, the Group signed a joint venture and Plant Purchase Agreement for the disposal its 250,000 tpa refining asset
for US$22,500,000. The previously impaired value of the refinery was reversed in the comparative reporting period.
Capital
expenditure commitments
There
are no capital commitments at 31 December 2015.
10.
Investment in Associates
In
September 2014 the Group signed a Plant Purchase Agreement to sell the groups 250,000 tpa refinery to a Joint venture Company
called FGV Green Energy Sdn Bhd, of which Mission now owns 20%. This shareholding is held via a subsidiary company, M2 Capital
Sdn Bhd.
Mission NewEnergy Ltd
11.
Financial Liabilities
There
were no loans or borrowings issued or repaid during the six months ended 31 December 2015.
12.
Fair values of financial instruments
| a) | Recurring
fair value measurements |
The
group does not have any financial instruments that are subject to recurring or non-recurring fair value measurements.
| | |
Carrying Amount
$ | | |
Fair Value
$ | | |
Level 1 | | |
Level 2 | | |
Level 3 | |
| Current Liabilities | |
| 1,609,036 | | |
| 1,609,036 | | |
| 1,609,036 | | |
| - | | |
| - | |
The
fair value measurements are shown by level of the following fair value measurement hierarchy:
| · | Level
1 - quoted prices (unadjusted) in active markets for identical assets or liabilities
|
| · | Level
2 - inputs other than quoted prices included within level 1 that are observable for the
asset or liability, either directly or indirectly, and |
| · | Level
3 - inputs for the asset or liability that are not based on observable market data (unobservable
inputs). |
| b) | Fair
value of financial instruments not carried at fair value |
The
following instruments are not carried at fair value in the statement of financial position. These had the following carrying amount
and the fair values at 31 December 2015:
| | |
Carrying Amount
$ | | |
Fair Value
$ | |
| Current Assets | |
| | | |
| | |
| Trade and other receivables | |
| 6,833 | | |
| 6,833 | |
| | |
| | | |
| | |
| Current Liabilities | |
| | | |
| | |
| Trade and other payables | |
| 168,813 | | |
| 168,813 | |
Due
to their short term nature, the carrying amount of these current assets and current liabilities is assumed to approximate their
fair value.
Mission
NewEnergy Ltd
13.
Contingent Assets and Liabilities
The
Group is not aware of any contingent liabilities or contingent assets as at 31 December 2015.
14.
Related parties
Key
management personnel receive compensation in the form of short-term employee benefits, post-employment benefits and share-based
payments.
Transactions
between related parties are on normal commercial terms and conditions are no more favourable than those available to others parties,
unless otherwise stated. There were no related parties transaction during the six months ended 31 December 2015.
15.
Dividend
No
dividends have been paid or declared for payment during the six months ended 31 December 2015.
16.
Subsequent Events
There
have been no significant subsequent events up until the date of signing this financial report.
Mission
NewEnergy Ltd
Directors’
declaration
In
the opinion of the directors of Mission New Energy Limited:
1.
The financial statements and notes set out on pages 5 to 19 are in accordance with the Corporations Act 2001 including:
(a)
giving a true and fair view of the Group’s financial position as at 31 December 2015 and of its performance
for the six month period ended on that date; and
(b)
complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations
2001; and
2.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable.
Dated
at Perth this 24th day of February 2016.
Signed
in accordance with a resolution of the directors:
_________________________
Dato’
Nathan Mahalingam
Group
Chief Executive Officer
| |
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
|
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
|
INDEPENDENT AUDITOR’S REVIEW REPORT
To the members of Mission NewEnergy Limited
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial
report of Mission NewEnergy Limited, which comprises the consolidated statement of financial position as at 31 December 2015,
the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in
equity and the consolidated statement of cash flows for
the half-year ended on that date, notes comprising a statement of accounting policies and other explanatory information, and
the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the
half-year’s end or from time to time during the half-year.
Directors’ Responsibility for the Half-Year Financial
Report
The directors of the company are responsible for the
preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to
enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express a conclusion on the half-year
financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE
2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether,
on the basis of the procedures described, we have become aware
of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001
including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and its
performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting
and the Corporations Regulations 2001. As the auditor of Mission NewEnergy Limited, ASRE 2410 requires that we comply with
the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of
making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing
Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit opinion.
Independence
In conducting our review, we have complied with the
independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations
Act 2001, which has been given to the directors of Mission NewEnergy Limited, would be in the same terms if given to the
directors as at the time of this auditor’s review report.
BDO
Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are
members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions
of financial services licensees.
Conclusion
Based on our review, which is not an audit, we have not become
aware of any matter that makes us believe that the half-year financial report of Mission NewEnergy Limited is not in accordance
with the Corporations Act 2001 including:
(a) giving a true and fair view of the consolidated entity’s
financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim
Financial Reporting and Corporations Regulations 2001
BDO Audit (WA) Pty Ltd
Wayne Basford
Director
Perth, 24 February 2016