TIDMPMG
RNS Number : 5493T
Parkmead Group (The) PLC
15 November 2019
15 November 2019
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Preliminary Results for the year ended 30 June 2019
Parkmead, the UK and Netherlands focused independent energy
group, is pleased to report its preliminary results for the year
ended 30 June 2019.
HIGHLIGHTS
Parkmead delivers major growth in cash flow and operating
profit
-- Revenue increased by 18% to GBP8.3 million (2018: GBP7.0 million)
-- Strong cash flow from operations, up 59% to GBP4.7 million (2018: GBP3.0 million)
-- Gross profit for the period of GBP5.7 million (2018: GBP4.1 million), an increase of 41%
-- Operating profit climbed to GBP5.1 million (2018: GBP5.3 million loss)
-- Total asset base grew to GBP82.3 million at 30 June 2019 (2018: GBP78.9 million)
-- Well capitalised, with cash balances of GBP30.7 million
(US$39.0 million) as at 30 June 2019
-- Low-cost Netherlands gas production provides excellent cash flow to Parkmead
Significant progress on Platypus, GPA and Skerryvore oil and gas
projects
-- Field Development Plan draft and Environmental Statement
submitted to the OGA and OPRED, respectively, for the development
of the Platypus gas project in the UK Southern North Sea
-- Selected development concept is a subsea tie-back to the
Cleeton platform, significantly reducing initial capital
expenditure and field operating cost
-- Mid case technical recoverable reserves from Platypus of 106 billion cubic feet ("Bcf")
-- Platypus East (previously Possum) provides significant upside
to the Platypus project, potentially adding a further 50 Bcf of
reserves; geological probability of success (GPoS) of 73%
-- Platypus alone is expected to produce 47 million cubic feet
of gas per day ("MMscfd") at peak production, according to operator
estimates, with a field life of approximately 20 years
-- Parkmead is in commercial discussions with the Scott field
partnership in order to potentially agree terms for a tie-back of
the Greater Perth Area ("GPA") to the Scott facilities
-- Parkmead is also holding discussions with a number of
leading, internationally-renowned service companies in relation to
the GPA project
-- New seismic purchased in Q3 2019 covering the Skerryvore
prospect and surrounding area, which will be reprocessed in 2020 to
mature the collection of prospects
Strategic move into renewable energy opportunities
-- Renewable energy opportunities accessed through strategic
acquisition of Pitreadie Farm Limited ("Pitreadie")
-- Studies are being conducted on the potential for a wind farm
project, solar farm and a biomass production facility on the
acquired land
-- One of the large areas of land owned by Pitreadie lies
adjacent to the Mid Hill Wind Farm which encompasses 33 Siemens
wind turbines
Increase in Diever West gas production and expanded Netherlands
activity
-- Production at the Diever West gas field for the financial
year averaged 44.6 MMscfd, which equates to approximately 7,676
barrels of oil equivalent per day ("boepd"), a 13% increase on the
average gross production for the 12 month period ended 30 June 2018
of 39.6 MMscfd
-- Dynamic reservoir modelling suggests Diever West has
approximately 108 billion cubic feet ("Bcf") of gas-in-place, more
than double the previous, post-drill static volume estimate of 41
Bcf
-- Multiple further exploration opportunities exist around
Diever West, such as the Boergrup and De Bree prospects, both of
which contain stacked targets
-- A new seismic reprocessing project will be undertaken,
starting in Q4 2019, which will help define and high-grade the
extensive prospectivity around Diever West
-- Low-cost onshore gas portfolio in the Netherlands produces
from four separate gas fields with an average operating cost of
just US$11.9 per barrel of oil equivalent, generating strong cash
flows
-- Further production enhancement work planned on Parkmead's
Netherlands portfolio, including compression optimisation work at
Grolloo during 2020 to maximise production, plus development
planning at the Ottoland and Papekop oil and gas discoveries
Substantial oil and gas reserves and resources
-- Net 2P reserves of 46.0 million barrels of oil equivalent
("MMBoe") as at 30 September 2019 (46.3 MMBoe as at 30 September
2018)
-- Net 2C resources of 100.8 MMBoe as at 30 September 2019
(101.8 MMBoe as at 30 September 2018)
Well positioned for further acquisitions and opportunities
-- Eight acquisitions, at both asset and corporate level, have been completed to date
-- Parkmead actively evaluating further acquisition and licensing growth opportunities
Parkmead's Executive Chairman, Tom Cross, commented:
"I am pleased to report an excellent year of progress for
Parkmead. The Group has increased revenue to GBP8.3 million and
delivered major growth in cash flow and operating profit. This is
an outstanding achievement for Parkmead and creates a strong
foundation from which to continue its momentum.
We have achieved important milestones on the valuable Platypus
gas project. The innovative subsea tie-back plan reduces the cost
of the project significantly. The Platypus project has the
potential to open up further development upside in this prolific
area of the Southern North Sea, in which Parkmead holds additional
appraisal and exploration interests.
Through a strategic acquisition, we have begun looking at a
number of renewable energy opportunities. Renewable energy is
directly in line with Parkmead's business plan, broadening and
enhancing the Group's energy asset base.
The team at Parkmead continues to work intensively to evaluate
and execute further value-adding opportunities which could provide
additional upside to the Group.
Parkmead is well positioned for the future. We have excellent UK
and Netherlands regional expertise, significant cash resources, and
a growing portfolio of high-quality assets. The Group will continue
to build upon the inherent value in its existing interests with a
balanced, acquisition-led, growth strategy securing opportunities
that maximise long-term value for our shareholders."
For enquiries please contact:
The Parkmead Group plc +44 (0) 1224 622200
Tom Cross (Executive Chairman)
Ryan Stroulger (Chief Financial Officer)
Arden Partners plc
(Financial Adviser, NOMAD and Corporate
Broker to Parkmead) +44 (0) 20 7614 5900
Ciaran Walsh
Tim Dainton
Instinctif Partners Limited (PR Adviser
to
Parkmead) +44 (0) 20 7457 2020
Mark Garraway
Sarah Hourahane
Dinara Shikhametova
CHAIRMAN'S STATEMENT
2019 has been an excellent year of progress for Parkmead.
Building on the solid foundations established in recent years, the
Group increased its revenue by 18% to GBP8.3 million and delivered
very strong cash flow from operations, which climbed 59% to GBP4.7
million. This in turn yielded a major step forward in operating
profit, which rose to GBP5.1 million. This is valuable progress for
Parkmead, creating momentum with which to continue its growth.
Parkmead also achieved key milestones at the Platypus gas
project in the Southern North Sea during the year. The Field
Development Plan draft and Environmental Statement were submitted
to the UK Oil and Gas Authority ("OGA") and the Offshore Petroleum
Regulator for Environment and Decommissioning ("OPRED"),
respectively.
Since the year-end Parkmead secured access to onshore renewable
energy opportunities through its strategic acquisition of
Pitreadie, a company owning some 2,320 acres of land. Potential has
already been identified for a large wind farm, with further
potential for solar farm projects and a biomass production
facility. These opportunities will be important in light of the
energy transition that is taking place both within Parkmead and the
wider energy sector.
Operations and Portfolio Growth
Parkmead has continued to make progress towards building a
balanced, independent energy business of breadth and scale by
developing its current portfolio and increasing its asset base
through acquisitions.
In October 2019, Parkmead announced that a Field Development
Plan draft and Environmental Statement for the Platypus gas project
was submitted to the OGA and OPRED, respectively. These two
documents were submitted on behalf of the co-venturers by Dana
Petroleum, a subsidiary of the Korean National Oil Corporation
(KNOC). Parkmead's co-venturers in the Platypus project are
CalEnergy Gas (15%), Zennor Petroleum (11%) and Dana Petroleum
(59%). Parkmead's equity in the project is 15%.
The Platypus field is located in the UK Southern North Sea in
Blocks 47/5b and 48/1a, approximately 18 km north west of the West
Sole gas field and 15 km south west of the Babbage field. The
Platypus gas field was discovered in 2010 and was successfully
appraised with a horizontal well in 2012 which was flow tested at a
rate of 27 million cubic feet of gas per day (approximately 4,600
barrels of oil per day on an equivalent basis).
As a result of the successful appraisal well, the field
development studies have been progressed leading to confirmation of
concept selection and submission of the Field Development Plan
draft and Environmental Statement are subject to the standard
regulatory review and approvals.
The selected development concept will consist of two wells
connected to a subsea manifold, with gas export to the Cleeton
platform via a 23km pipeline. Produced fluids will arrive at the
Cleeton facilities before being routed directly to the Dimlington
Terminal for separation and processing.
The development plan for the Platypus field was reached
following an extensive concept selection process. This considered
technical feasibility, project execution schedule and commercial
viability, in addition to environmental, health and safety
issues.
Tenders for the Subsea Pipeline & Facilities Engineering,
Procurement, Construction and Installation, the Umbilical Supply
and Controls Supply are all planned to be issued during Q4 2019.
Project Sanction is expected to occur in Q2 2020 with First Gas
scheduled in Q1 2022.
Mid case technical recoverable reserves from Platypus are
estimated at 106 Bcf, with peak production of 47 MMscfd, according
to operator estimates. The anticipated producing life of the field
is approximately 20 years. Platypus East (previously Possum)
provides a significant upside opportunity for the project,
potentially adding another 50 Bcf of recoverable reserves.
Development studies work is progressing on Parkmead's GPA
project, which has the potential to deliver 75-130 MMBoe on a P50
basis. The Company is in commercial discussions with the Scott
field partnership, led by China National Offshore Oil Corporation
(CNOOC) International, in order to explore terms for a tie-back of
the GPA oil hub project to the Scott facilities. Scott lies just
10km southeast of the GPA project and a tie-back could yield a
number of mutually beneficial advantages for both the Scott
partnership and Parkmead. A tie-back to Scott is one path to
potentially unlock the substantial value of the GPA project.
Parkmead is also holding discussions with a number of leading,
internationally-renowned service companies in relation to the GPA
project.
New seismic was purchased covering Parkmead's Skerryvore
prospect and surrounding area in Q3 2019. This new data will be
reprocessed and interpreted during 2020 in order to mature the
growing collection of prospects across this licence. The Skerryvore
Mey prospect overlies two stacked Chalk prospects (Skerryvore
Ekofisk and Skerryvore Tor) which are associated with a Zechstein
salt diapir. The Chalk in these prospects is thought to have been
re-worked, which significantly improves permeability over
conventional Chalk reservoirs. These three stacked prospects have
the potential to contain 157 million barrels of recoverable oil
equivalent on a P50 basis.
In August 2019, Parkmead announced that it had signed a Share
Purchase Agreement to acquire the entire issued share capital of
Pitreadie, a company owning extensive land in Scotland with
interesting and varied renewable energy potential. The completion
of the acquisition was announced in September 2019.
The acquisition provides Parkmead with its first renewable
energy opportunities, with potential already identified for the
installation of a large wind farm, and further potential for solar
farms and biomass energy sources.
One of the large areas of land owned by Pitreadie spans 1,238
acres and is located some 15 miles west of Aberdeen. Excellent
average wind speeds exist on the site of between 7-10 m/s. This
site lies adjacent to the Mid Hill Wind Farm which contains 33
Siemens manufactured and maintained wind turbines. Woodland
planting has already been undertaken on part of this large site,
which has the potential for a commercial biomass supply operation.
Parkmead will be conducting a detailed analysis for optimising the
land use of the various sites within the Pitreadie portfolio
throughout 2020.
The consideration for the acquisition was satisfied by the issue
of 9,645,669 new ordinary Parkmead shares. As part of the
Acquisition, Parkmead assumed GBP3.6 million of Bank of Scotland
debt held by Pitreadie. The land and property assets acquired,
assuming no upside from renewable opportunities, were valued at
GBP7.59 million by CKD Galbraith LLP, a leading independent
property consultancy.
The renewables sector is a natural expansion of Parkmead's
energy operations and is fully in line with the Group's strategy to
re-balance Parkmead's energy portfolio. Parkmead recognises the
transition that is taking place in the energy market, supported by
legislation, from fuels with a higher carbon content to lower
carbon alternatives such as natural gas and renewables. Natural gas
and renewables play increasingly key roles in the generation of
electricity.
Parkmead transitioned to a gas-only producer in January 2016 and
the Group has increased its gas production almost tenfold since
2014.
Parkmead remains of the strong belief that oil and gas will have
a very important role to play in the energy mix in future years.
This is evidenced by a range of forecasts showing robust and
increased demand for oil and gas going forward.
The acquisition also broadens Parkmead's operations and will add
a third revenue-generating business area to the Group.
Increasing activity across the Netherlands asset portfolio
Diever West continues to provide strong gas production to the
Group. Average gross production at Diever West for the financial
year was 44.6 MMscfd, approximately 7,676 boepd, a 13% increase on
the average gross production for the 12 month period ended 30 June
2018 of 39.6 MMscfd. A planned two week maintenance programme was
carried out at the Garijp treatment centre in September 2019.
The Diever West field has performed above expectations since
first production. New dynamic reservoir modelling suggests that the
field holds approximately 108 Bcf gross gas-in-place, this is more
than double the earlier, post-drill static volume estimate of 41
Bcf.
A number of further exploration opportunities exist within the
Drenthe VI concession, which contains the Diever West field. Two of
these are the Boergrup and De Bree prospects, both of which have
stacked independent targets in the Vlieland and Rotliegendes
(Boergrup) and Rotliegendes and Carboniferous (De Bree). A new
seismic reprocessing project will be undertaken, starting in Q4
2019, which will help define and high-grade the extensive
prospectivity around Diever West.
Parkmead's Netherlands portfolio includes producing gas fields
with a very low operating cost. This profitable gas production
provides important cash flow to the Group.
Detailed work has begun on the Ottoland oil and gas discovery,
located on the same Andel Va block as the Brakel gas field. Seismic
interpretation and depth migration studies were completed during
the year, followed by the construction of a dynamic simulation
model used to analyse well locations and scenarios. Further
modelling work will be undertaken ahead of development concept
selection.
Compression optimisation work will be carried out at the Group's
Grolloo field during 2020.
New structural and static modelling has been completed at the
Papekop oil and gas discovery, refining the volume estimates.
Concept selection planning has begun.
Results
The Group's revenue for the year to 30 June 2019 increased to
GBP8.3m (2018: GBP7.0m), generating a gross profit of GBP5.7m
(2018: GBP4.1m). This is a significant achievement and is testament
to the success of the Group's onshore gas portfolio and careful
financial discipline. Parkmead's gas portfolio in the Netherlands
ensures the Group is cash flow positive on an operating basis. The
Group's four separate gas fields have an average operating cost of
just US$11.9 per barrel of oil equivalent. Parkmead delivered a
profit for the period of GBP2.4m (2018: GBP7.1m loss). Exploration
and evaluation expenses reduced significantly to GBP0.2m (2018:
GBP5.2m), predominantly due to no exploration impairments in 2019
(2018: GBP5.0m).
Administrative expenses were GBP0.4m (2018: GBP4.1m), which
included a non-cash credit in respect of share based payments of
GBP1.1m (2018: GBP2.5m expense). Underlying administrative
expenses, excluding share based payments, were GBP1.5m (2018:
GBP1.7m).
Parkmead's total assets at 30 June 2019 increased to GBP82.3m
(2018: GBP78.9m). Financial assets reduced to GBPnil (2018:
GBP5.7m). This reduction represents the realisation of the Group's
investment in shares in Faroe Petroleum plc ("Faroe"). Faroe was
purchased in the year by DNO ASA. The Group tendered its shares at
the final cash offer price of 160 pence for each Faroe share, and
subsequently realised GBP6.2 million in cash in February 2019.
Interest bearing loans receivable remained at GBP2.9m (2018:
GBP2.9m). Cash and cash equivalents at year end increased to
GBP30.7m (2018: GBP23.8m). The Group's net asset value was GBP68.3m
(2018: GBP64.2m). Parkmead is therefore well positioned for growth.
This positive position is a direct result of experienced portfolio
management and a strong focus on capital discipline.
Due to Parkmead's ongoing growth opportunities and associated
investment programme, the Board is not recommending the payment of
a dividend in 2019 (2018: GBPnil).
Development of the Senior Management Team
As Parkmead grows, the directors continuously plan for the
developing needs of the Group. The last 12 months have seen
significant progress across our key projects in oil and gas, plus a
strategic move into renewable energy opportunities. Therefore the
board has recruited a number of experienced new staff to ensure
Parkmead can maximise the value from its enhanced, high-quality
asset base.
The Company has made a carefully integrated series of
appointments to firstly increase the team's capabilities, and
secondly to prepare for planned retirements. The board would like
to express its thanks to Kevin Holley and Colin Percival, who both
leave the Company this month having given excellent service during
the formative years of the Group, and Colin retires from the board
of directors with effect from 15 November 2019. We welcome three
important new members to Parkmead's Operating Team. Tim Coxe joins
in the new role of Managing Director, North Sea. He will lead
Parkmead's technical team as we now enter the commercialisation
phase of our North Sea projects, with a strong focus on driving
forward developments including the Greater Perth oil area ("GPA")
and the Platypus gas area. Tim has many years of North Sea
experience and joins the Parkmead team in this new staff role,
having previously led our project team on the GPA development, as a
contractor, through to December 2018. Donald Wilson joins Parkmead
as Financial Controller to lead our growing finance and accounting
team, which is now covering all four areas of the Group's business,
reporting to our Group CFO Ryan Stroulger. A new Managing Director
has been appointed at Aupec Ltd. Kevin Mitchell, has been chosen to
lead our performance benchmarking and economics consulting
business, which has been advising numerous governments and energy
companies successfully for over 30 years. Kevin is a well-known
international energy economist with some 18 years of analytical
experience. He understands Aupec well, having worked with the
Company earlier in his career before it became part of the Parkmead
Group.
Given the appointments outlined above, Parkmead is well
positioned for future growth with a strong and balanced portfolio
of assets and an experienced team of energy experts focused on
delivery.
Outlook
The Directors of Parkmead are pleased with the Group's
continuing progress in building a high-quality energy business of
increasing breadth and scale. Parkmead has a strong core of
profitable gas production and a balanced portfolio of assets with
significant upside. Therefore, Parkmead is well positioned to build
further on the achievements to date and to capitalise on new
opportunities.
Parkmead clearly benefits from increasing balance within the
Group, with four complementary arms of the business: Netherlands
Gas, UK Oil and Gas, Benchmarking and Economics, and Future
Opportunities (including renewable energy). The combination of
these components adds strength and value to Parkmead's
operations.
As we move towards 2020, Parkmead maintains its appetite for
acquisitions and is looking carefully at a number of opportunities.
We will also continue to add shareholder value through a dynamic
work programme to maximise the inherent value in our existing
assets. The Group has built a strong platform from which to grow
and we look forward to updating shareholders as we make further
progress.
Tom Cross
Executive Chairman
14 November 2019
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
Notes:
1. Dr Colin Percival, Parkmead's Technical Director, who holds a
First Class Honours Degree in Geology and a Ph.D in Sedimentology
and has over 35 years of experience in the oil and gas industry,
has reviewed and approved the technical information contained in
this announcement. Parkmead's evaluation of reserves and resources
was completed in accordance with the 2007 Petroleum Resources
Management System prepared by the Oil and Gas Reserves Committee of
the Society of Petroleum Engineers and reviewed and jointly
sponsored by the World Petroleum Council, the American Association
of Petroleum Geologists and the Society of Petroleum Evaluation
Engineers.
Glossary of key terms
Oil in place The total quantity of petroleum that is estimated to exist originally in naturally
occurring
reservoirs
Contingent Resources Those quantities of petroleum estimated, as of a given date, to be potentially
recoverable
from known accumulations by application of development projects but which are not
currently
considered to be commercially recoverable due to one or more contingencies.
Contingent Resources
are a class of discovered recoverable resources
Recoverable resources Those quantities of hydrocarbons that are estimated to be producible from discovered
or undiscovered
accumulations
Proved and Probable or "2P" Those additional Reserves which analysis of geoscience and engineering data indicate
are less
likely to be recovered than Proved Reserves but more certain to be recovered than
Possible
Reserves. It is equally likely that actual remaining quantities recovered will be
greater
than or less than the sum of the estimated Proved plus Probable Reserves (2P). In
this context,
when probabilistic methods are used, there should be at least a 50 per cent.
probability that
the actual quantities recovered will equal or exceed the 2P estimate
Reserves Reserves are those quantities of petroleum anticipated to be commercially recoverable
by application
of development projects to known accumulations from a given date forward under
defined conditions.
Reserves must further satisfy four criteria: they must be discovered, recoverable,
commercial,
and remaining (as of the evaluation date) based on the development project(s)
applied. Reserves
are further categorized in accordance with the level of certainty associated with the
estimates
and may be sub-classified based on project maturity and/or characterized by
development and
production status
P50 Reflects a volume estimate that, assuming the accumulation is developed, there is a
50% probability
that the quantities actually recovered will equal or exceed the estimate. This is
therefore
a median or best case estimate
2C Denotes the best estimate scenario, or P50, of Contingent Resources
Group statement of profit or loss
for the year ended 30 June 2019
Note 2019 2018
GBP'000 GBP'000
Revenue 8,269 7,022
Cost of sales (2,524) (2,960)
Gross profit 5,745 4,062
Exploration and evaluation expenses (171) (5,244)
Administrative expenses 2 (436) (4,153)
Operating profit / (loss) 5,138 (5,335)
Finance income 209 92
Finance costs (546) (645)
Profit / (loss) before taxation 4,801 (5,888)
Taxation (2,385) (1,259)
------------------------------------------- ----- -------- ----------
Profit / (loss) for the year attributable
to the equity holders of the Parent 2,416 (7,147)
------------------------------------------- ----- -------- ----------
Earnings / (loss) per share (pence)
Basic 3 2.44 (7.22)
Diluted 3 2.43 (7.22)
Group statement of profit or loss and other comprehensive income
for the year ended 30 June 2019
2019 2018
GBP'000 GBP'000
Profit / (loss) for
the year 2,416 (7,147)
Items that may be reclassified
subsequently to profit
or loss
Changes in financial
assets at fair value
through other comprehensive
income 651 2,473
------------------------------------------------------ --------- -------------
651 2,473
Income tax relating
to components of other
comprehensive income - -
----------------------------------------------------- --------- -------------
Other comprehensive
income for the year,
net of tax 651 2,473
------------------------------------------------------ --------- -------------
Total comprehensive
profit / (loss) for
the year attributable
to the equity holders
of the Parent 3,067 (4,674)
------------------------------------------------------ --------- -------------
Group statement of financial position
as at 30 June 2019
2019 2018
GBP'000 GBP'000
Non-current assets
Property, plant and equipment:
development & production 11,657 12,292
Property, plant and equipment:
other 165 38
Goodwill 2,174 2,174
Exploration and evaluation
assets 34,052 30,308
Investment in subsidiaries
and joint ventures - -
Financial assets at fair
value through other comprehensive
income - 5,700
Interest bearing loans - 2,930
Deferred tax assets 3 3
Total non-current assets 48,051 53,445
------------------------------------------------------ --------- -------------
Current assets
Trade and other receivables 658 1,294
Interest bearing loans 2,900 -
Current tax assets - 343
Cash and cash equivalents 30,666 23,804
------------------------------------------------------ --------- -------------
Total current assets 34,224 25,441
------------------------------------------------------ --------- -------------
Total assets 82,275 78,886
------------------------------------------------------ --------- -------------
Current liabilities
Trade and other payables (4,560) (5,407)
Current tax liabilities (1,563) (1,279)
Total current liabilities (6,123) (6,686)
------------------------------------------------------ --------- -------------
Non-current liabilities
Trade and other payables (5) (275)
Deferred tax liabilities (1,284) (1,284)
Decommissioning provisions (6,607) (6,417)
------------------------------------------------------ --------- -------------
Total non-current liabilities (7,896) (7,976)
------------------------------------------------------ --------- -------------
Total liabilities (14,019) (14,662)
------------------------------------------------------ --------- -------------
Net assets 68,256 64,224
------------------------------------------------------ --------- -------------
Equity attributable to
equity holders
Called up share capital 19,533 19,533
Share premium 87,805 87,805
Revaluation reserve - (325)
Retained deficit (39,082) (42,789)
------------------------------------------------------ --------- -------------
Total Equity 68,256 64,224
------------------------------------------------------ --------- -------------
Group statement of changes in equity
for the year ended 30 June 2019
Share capital Share premium Revaluation Retained Total
reserve deficit
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2017 19,533 87,805 (2,798) (35,660) 68,880
Loss for the year - - - (7,147) (7,147)
Changes in financial
assets at fair value
through other comprehensive
income - - 2,473 - 2,473
------------------------------ -------------- -------------- ------------ --------- -------------------
Total comprehensive
income / (loss) for
the year - - 2,473 (7,147) (4,674)
Share-based payments - - - 18 18
------------------------------ -------------- -------------- ------------ --------- -------------------
At 30 June 2018 19,533 87,805 (325) (42,789) 64,224
------------------------------ -------------- -------------- ------------ --------- -------------------
Profit for the year - - - 2,416 2,416
Changes in financial
assets at fair value
through other comprehensive
income - - 651 - 651
Total comprehensive
income for the year - - 651 2,416 3,067
Transfer revaluation
reserve on disposal
of financial assets
at fair value through
other comprehensive
income - - (326) 326 -
Gains arising on
repayment of employee
share based loans - - - 941 941
Share-based payments - - - 24 24
------------------------------ -------------- -------------- ------------ --------- -------------------
At 30 June 2019 19,533 87,805 - (39,082) 68,256
------------------------------ -------------- -------------- ------------ --------- -------------------
Group statement of cashflows
for the year ended 30 June 2019
2019 2018
Note GBP'000 GBP'000
Cashflows from operating
activities
Cashflows from operations 4 4,733 2,973
Taxation credit (1,779) (777)
----------------------------------- ----- -------- --------
Net cash generated by/(used
in) operating activities 2,954 2,196
----------------------------------- ----- -------- --------
Cash flow from investing
activities
Interest received 239 62
Acquisition of exploration
and evaluation assets (3,744) (1,892)
Proceeds from sale of financial
assets at fair value through
other comprehensive income 6,351 -
Acquisition of property,
plant and equipment: development
and production (63) (81)
Disposal of property, plant
and equipment: development
and production 211 -
Acquisition of property,
plant and equipment: other (190) (19)
Advance of loans - (2,900)
Net cash generated by /
(used in) investing activities 2,804 (4,830)
----------------------------------- ----- -------- --------
Cash flow from financing
activities
Interest paid (45) (34)
Proceeds from loans and
borrowings 941 -
Net cash generated by/(used
in) in financing activities 896 (34)
----------------------------------- ----- -------- --------
Net increase/(decrease)
in cash and cash equivalents 6,654 (2,668)
----------------------------------- ----- -------- --------
Cash and cash equivalents
at beginning of year 23,804 26,396
Effect of foreign exchange
rate differences 208 76
----------------------------------- ----- -------- --------
Cash and cash equivalents
at end of year 30,666 23,804
----------------------------------- ----- -------- --------
Notes to the financial information for the year ended 30 June
2019
1. Basis of preparation of the financial information
The financial information set out in this announcement does not
comprise the Group and Company's statutory accounts for the years
ended 30 June 2019 or 30 June 2018.
The financial information has been extracted from the audited
statutory accounts for the years ended 30 June 2019 and 30 June
2018. The auditors reported on those accounts; their reports were
unqualified and did not contain a statement under either Section
498 (2) or Section 498 (3) of the Companies Act 2006 and did not
include references to any matters to which the auditor drew
attention by way of emphasis.
The statutory accounts for the year ended 30 June 2018 have been
delivered to the Registrar of Companies. The
statutory accounts for the year ended 30 June 2019 will be
delivered to the Registrar of Companies following the
Company's Annual General Meeting.
The accounting policies are consistent with those applied in the
preparation of the interim results for the period ended 31 December
2018. The accounting policies are also consistent with those
applied in the preparation of the statutory accounts for the year
ended 30 June 2018, with the exception of IFRS 9 Financial
Instruments and IFRS 15 Revenue from Contracts with Customers which
are new standards applicable and mandatory for the year ended 30
June 2019. The new standards did not have a material impact on the
statutory accounts for the year ended 30 June 2019. The financial
information presented in these financial statements have been
prepared in accordance with International Financial Reporting
Standards ("IFRS").
2. Administrative expenses
Administrative expenses include a credit in respect of a
non-cash revaluation of share appreciation rights (SARs) and share
based payments totalling GBP1,062,000 (2018: GBP2,506,000 charge).
The SARs may be settled by cash and are therefore revalued with the
movement in share price. The valuation was impacted by the decrease
in share price between 30 June 2018 and 30 June 2019.
3. Profit / (loss) per share
Profit / (loss) per share attributable to equity holders of the
Company was as follows:
2019 2018
Profit / (loss) per 1.5p ordinary share
(pence)
Basic 2.44p (7.22)p
Diluted 2.43p (7.22)p
The calculations were based on the following information:
2019 2018
GBP'000 GBP'000
Profit / (loss) attributable to ordinary
shareholders 2,416 (7,147)
Weighted average number of shares in
issue
Basic weighted average number of shares 98,929,160 98,929,160
------------------------------------------------ ----------- -----------
Dilutive potential ordinary shares
Share options 1,791,105 -
------------------------------------------------ ----------- -----------
Profit/(loss) per share is calculated by dividing the
profit/(loss) for the year by the weighted average number of
ordinary shares outstanding during the year.
Diluted profit/(loss) per share
Profit/(loss) per share requires presentation of diluted
profit/(loss) per share when a company could be called upon to
issue shares that would decrease net profit or increase net loss
per share. When the group makes a loss the outstanding share
options are therefore anti-dilutive and so are not included in
dilutive potential ordinary shares.
4. Notes to the statement of cashflows
Reconciliation of operating profit/(loss) to net cash flow from
continuing operations
2019 2018
GBP'000 GBP'000
Operating profit / (loss) 5,138 (5,335)
Depreciation 217 536
Amortisation and exploration write off - 4,966
Disposal of development and production assets 22 -
Provision for equity settled share based payments 24 18
Currency translation adjustments (208) (76)
Decrease / (increase) in receivables 636 (368)
(Decrease) / increase in payables (1,096) 3,232
Net cash flow from operations 4,733 2,973
--------------------------------------------------- -------- --------
5. Approval of this preliminary announcement
This announcement was approved by the Board of Directors on 14
November 2019.
6. Posting of annual report and accounts
Copies of the Annual Report and Accounts will be posted to
shareholders shortly. The Annual Report and Accounts will be made
available to download, along with a copy of this announcement, on
the investor relations section of the Company's website
www.parkmeadgroup.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR KMMMMVKFGLZG
(END) Dow Jones Newswires
November 15, 2019 02:00 ET (07:00 GMT)
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