TIDMPMG
RNS Number : 6638T
Parkmead Group (The) PLC
26 November 2021
26 November 2021
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Preliminary Results for the year ended 30 June 2021
Parkmead, the UK and Netherlands focused independent energy
group, is pleased to report its preliminary results for the year
ended 30 June 2021.
HIGHLIGHTS
Revenue momentum from increased gas prices; strong financial
position
-- Revenue for the period was GBP3.6 million (2020: GBP4.1
million), with a 33% increase in the second half compared to the
first half reflecting the strong recovery in gas prices from the
COVID-19 pandemic lows
-- Gross profit increased by 39% to GBP1.8 million (2020: GBP1.3
million), showing the robustness of Parkmead's gas assets and
continued improving efficiency
-- Gross margin increased from 31% to 49%
-- Well capitalised, with cash balances of GBP23.4 million
(US$31.6 million) as at 30 June 2021
-- Parkmead has seen the benefit of the strong climb in energy
prices and are 100% unhedged. From lows of around EUR5.0/MWh in
July 2020 prices have rebounded strongly, with Dutch TTF prices
reaching around EUR75.0/MWh in November 2021
-- Excellent revenue generation since period end, EUR3.0 million
of revenue generated in the first four months of FY 2022, 355%
higher than the equivalent four months last year
-- Parkmead's Netherlands assets remain very low cost to
operate, and were uninterrupted by lockdown restrictions introduced
by the Dutch Government
-- Non-cash impairment charge recorded of GBP10.9 million
relating primarily to relinquishment of the Platypus licence at the
pre-development stage
-- Parkmead maintains strict financial discipline with very low operating costs
Acquisition of Netherlands gas royalty and potential drilling
campaign in 2022
-- Acquisition of Netherlands gas royalty completed in July 2021
for a consideration of EUR565k, satisfied through a part cash
payment and part of the remaining 2021 net revenue from the
Geesbrug gas field
-- The revenue associated with this royalty for just the year to
30 June 2020 was EUR325k, delivering a relatively short payback
-- Through this acquisition, Parkmead's effective financial
interest doubled from 7.5% to 15% in the Grolloo, Geesbrug and
Brakel gas fields
-- Gross production at the Group's Netherlands assets for the
financial year averaged 30.3 million cubic feet per day ("MMscfd"),
which equates to approximately 5,212 barrels of oil equivalent per
day ("boepd")
-- Low-cost onshore gas portfolio in the Netherlands produces
from four separate gas fields with an average field operating cost
of just US$9.9 per barrel of oil equivalent, generating strong cash
flows
-- Average netback per barrel of oil equivalent for the last two
months from the Netherlands (September and October 2021) of
EUR48.3
-- Partnership analysing a potential two-well drilling campaign
next year from the Diever site, targeting LDS-A and LDS-B
-- Drilling would target 22.7 Bcf of gross gas resources, on a
P50 basis, in the prolific Rotliegendes reservoirs found on the
licence (CoS of between 40 and 49%)
-- Papekop gas development has successfully progressed through
the concept select gate; planned gas development targeting 35.6 Bcf
of gross reserves with oil upside
Renewables Growth Strategy
-- Two successful sales of separate areas of non-core land from
UK renewable energy portfolio achieved an aggregate cash
consideration of GBP4.0 million, representing a substantial 82% of
the original Pitreadie net consideration
-- Sites with the largest renewable energy potential have been retained and high-graded
-- Technical studies are already underway on a specific location
within the Group's onshore land portfolio for the potential
development of a large wind farm
-- This area of land lies adjacent to the Mid Hill Wind Farm
which encompasses 33 Siemens wind turbines with a generating
capacity of around 75 megawatts
-- Other renewable opportunities exist across the Group's asset portfolio
-- Considering further acquisition opportunities to expand the Group's renewables portfolio
UK North Sea licence refocus
-- New project secured through successful award of Fynn licence
in the Central North Sea (Parkmead 50% and operator), containing
two undeveloped discoveries and a prospect in the Piper
Formation
-- Fynn Beauly is a very large oil discovery extending across
multiple blocks and is estimated to contain oil-in-place of between
602 and 1,343 million barrels, with our licence containing a
section of the discovery to the south holding oil-in-place of
between 77 and 202 million barrels
-- Fynn Andrew is wholly contained on the licence and holds 50
million barrels of oil-in-place on a P50 basis
-- Addition of these blocks adds 34.4 million barrels of 2C resources to Parkmead
-- Extension to the Skerryvore licence has been successfully
awarded to Parkmead (as operator) and joint venture partners
-- Completed reprocessing of Skerryvore 3D seismic, allowing
final rock physics and inversion scopes to begin
-- Multiple exploration and development activities centred
around Skerryvore prospect in 2021/22
-- Skerryvore's main prospects are three stacked targets, at Mey
and Chalk level, which together could contain 157 million barrels
of oil equivalent ("MMBoe")
-- Relinquishment of Playtpus licence by Parkmead and the
remaining joint venture partner following the very late withdrawal
of the majority partner and operator
-- Parkmead continues to assess draft commercial offers received
for the potential tie-back of the Greater Perth Area ("GPA")
project, which has the potential to deliver 75-130 MMBoe on a P50
basis
-- For the Perth field development alone, every $10/bbl increase
in the oil price adds approximately GBP130 million to the P50
post-tax NPV of the project
Substantial gas and oil reserves and resources
-- 2P reserves of 45.5 million barrels of oil equivalent
("MMBoe") as at 30 September 2021 (45.7 MMBoe as at 30 September
2020)
Evaluating further acquisitions and opportunities
-- Nine acquisitions, at both asset and corporate level, have been completed to date
-- Parkmead actively evaluating further acquisition
opportunities in renewables, gas and oil in line with its strategy
to build a balanced portfolio of assets
Parkmead's Executive Chairman, Tom Cross, commented:
"I am pleased to report an important year of progress for
Parkmead, despite the year being significantly disrupted by the
COVID-19 pandemic. The substantial rise in gas prices post year end
is also creating strong momentum for the Group. We intend to
capitalise on this by further balancing the Group's operations to
include other energies.
The innovative royalty deal we completed in July enhances our
gas interests in the Netherlands and adds significant value to
Parkmead. This growth step adds to our portfolio of high-quality
energy projects delivered through acquisitions, organic growth and
active asset management.
The successful divestment of non-core land areas is a testament
to the team's ability to ensure value is generated from its assets.
Parkmead has already identified a number of possible locations for
renewable energy opportunities within the Group's high-graded
onshore acreage.
Our team is carefully evaluating further potential gas, oil and
renewable energy acquisitions that would complement our existing
business.
Parkmead is well positioned for the future. We have excellent UK
and Netherlands regional expertise, strong financial discipline,
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 to secure
opportunities that maximise future 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)
finnCap Ltd (NOMAD and Broker to Parkmead) +44 (0) 20 7220 0500
Marc Milmo / Seamus Fricker - Corporate
Finance
Andrew Burdis / Barney Hayward - ECM
CHAIRMAN'S STATEMENT
2021 has been an important year for Parkmead as we recover from
the COVID-19 pandemic. Parkmead's experienced and resourceful team
ensured that the Group was able to quickly transition to remote
working to cope with the COVID-19 restrictions, where necessary,
and demonstrated commitment and innovation to developing new work
programmes to support the future growth of the business. This,
combined with a carefully managed business strategy, ensured that
the Group was resilient during the historical lows in commodity
prices and difficult market conditions during the year. The Group's
gas production also remained uninterrupted throughout national and
local COVID-19 restrictions providing a strong position that meant
we were able to capitalise on these conditions to make a producing
gas acquisition.
We also continued to make a number of important steps in
progressing our strategy to balance the Group's operations through
initiating new work programmes, refining development plans and
lowering our operational costs. Parkmead is now a more resilient
company with a very positive outlook for the years ahead.
Financial Performance
The Group's revenue for the year to 30 June 2021 was GBP3.6m
(2020: GBP4.1m), generating a 39% increase in gross profit to
GBP1.8m (2020: GBP1.3m). The gross margin improved from 31% to 49%
showing the high-quality nature of Parkmead's onshore production in
the Netherlands, especially given the economic environment during
the period.
The reduced revenue in the year reflected the substantially
lower commodity prices during 2020 resulting from the pandemic.
Since the lows experienced in the last financial year, we have seen
a very encouraging recovery in prices, particularly in Dutch gas.
Revenue in the second half of the year increased by 33% compared to
the first half as a result of this price recovery. This strength in
gas prices has continued since the financial year end, with prices
more than tripling during the period from June 2021 to October
2021.
As a result, Parkmead has recorded EUR3 million of revenue
during the first four months of the current financial year alone,
355% higher than the equivalent four months last year. Parkmead
continues to remain unhedged for 100% of our gas production, thus
giving exposure to these higher Dutch gas prices for the remainder
of the year.
Parkmead maintains a strong balance sheet with total assets of
GBP78.7m (2020: GBP89.8m) as at 30 June 2021. Cash and cash
equivalents at year-end were GBP23.4m (2020: GBP25.7m) and interest
bearing loans receivable were GBP2.9m (2020: GBP2.9m). The Group's
net asset value was GBP57.7m (2020: GBP71.3m). We reduced debt
within the Group by 86% to GBP0.5m on a pre-IFRS 16 basis at 30
June 2021 (2020: GBP3.6m). This prudent approach is an important
part of our financial discipline.
Exploration and evaluation expenses were GBP11.1m (2020:
GBP1.6m), which includes a non-cash impairment of GBP10.9 million
related to the relinquishment of Licences P.2296, P.2362 and P.1242
(Platypus) in the UK North Sea. Administrative expenses were
GBP3.0m (2020: GBP0.3m). Underlying staff costs stayed almost flat
at GBP2.0 million (2020: GBP1.9m).
In June 2021, Parkmead completed an extensive tendering process
with the view of appointing a new auditor following the ten year
tenure from Nexia Smith & Williamson. We are pleased to
announce that Jeffreys Henry assumed the role of auditor in August
2021. Parkmead would like to express our sincere thanks to Nexia
Smith & Williamson for their work.
Netherlands
Our Netherlands production remained some of the most efficient
and profitable, on a per-barrel basis, across Europe in 2021.
Production across the fields remained uninterrupted throughout
national and local COVID-19 lockdowns.
Gas production across the four fields has remained strong, with
average gross production of 30.3MMscfd, approximately 5,212boepd.
The operating cost of the combined fields is very low at just $9.9
per barrel of oil equivalent. These high-quality assets, combined
with efficient operational cost control underpins the strong gross
profit margin and allows us to invest in further opportunities.
Parkmead's onshore gas production continues to form a key part of
the Group and an important role in our transition to a lower-carbon
environment.
On our Drenthe VI licence, the Diever gas field remains in the
top three most prolific producing onshore fields in the
Netherlands. Parkmead and our JV partners are also pleased to be
making material progress on the Leemdijk and De Bree prospects
(renamed LDS-A and LDS-B respectively), also on the Drenthe VI
licence. A two-well drilling campaign from the Diever well site,
targeting both structures, is scheduled for late 2022/early 2023,
and if successful, offers a fast-track tie-in opportunity.
Our Drenthe V licence includes the Geesbrug gas field, which
continues to see steady production at material rates. During the
reporting period, seismic reprocessing has been ongoing to identify
infill opportunities on this licence.
Finally, we are pleased to report that our Papekop development
has successfully progressed through the concept select gate and we
will now carry out some further engineering studies and continue
the permitting process.
Gas Royalty Acquisition
In July 2021 Parkmead completed the acquisition of a historic
royalty associated with the Group's existing interests in the
Drenthe IV, Drenthe V and Andel Va licenses in the Netherlands from
Vermilion Energy. These licences contain the Grolloo, Geesbrug and
Brakel onshore gas fields, respectively.
This royalty was previously held by NAM, a Shell and ExxonMobil
joint venture. The consideration for this acquisition was EUR565k,
satisfied through a part cash payment of approximately EUR150k and
the remaining 2021 net revenue from Parkmead's working interest in
the Geesbrug gas field. The acquisition removed the royalty
associated with the existing producing gas wells. The revenue
associated with this royalty for the year to 30 June 2020 was
EUR325k, meaning a relatively short payback.
Through this important acquisition, Parkmead has increased its
net gas production from these wells, doubling the Group's effective
financial interest from 7.5% to 15% (in line with Parkmead's
working interest in the licences). This step added significant core
value to Parkmead and will extend the producing life of these
fields through greater partner alignment.
UK Licence Refocus
The Company has now finalised the award of Licence P.2516
(Parkmead 50% and operator) containing two undeveloped oil
discoveries, Fynn Beauly and Fynn Andrew, as well as an oil
prospect in the Piper Formation. The licence covers Blocks 14/20g
& 15/16g situated in the Central North Sea and is adjacent to
Parkmead's GPA project.
Fynn Beauly is a very large oil discovery which extends across a
number of blocks. The entire discovery is estimated to contain
oil-in-place of between 602 and 1,343 million barrels, with Licence
P.2516 containing a section of the discovery to the south holding
oil-in-place of between 77 and 202 million barrels.
Fynn Andrew is wholly contained on the licence and holds 50
million barrels of oil-in-place on a P50 basis. The addition of
these blocks to Parkmead's portfolio adds 34.4 million barrels of
2C resources to the Group. Parkmead's partner on the licence is
Orcadian Energy.
An extension to the Skerryvore licence, P.2400, has been
successfully awarded to Parkmead and its joint venture partners.
The joint venture has made significant progress over the last year
having completed reprocessing of the 3D seismic, allowing final
rock physics and inversion scopes to begin. Follow-on technical
studies are planned before the end of the year, ahead of a drilling
decision 2022.
The acreage around Skerryvore is currently seeing activity on
several fronts, with Harbour Energy drilling the adjacent Talbot
opportunity and Shell looking to drill the Edinburgh prospect.
Development activity is also taking place in close proximity to
Skerryvore at Tommeliten A (ConocoPhillips) and Affleck (NEO
Energy).
Skerryvore's main prospects are three stacked targets, at Mey
and Chalk level, which together could contain 157 million barrels
of oil equivalent ("MMBoe"). Parkmead operates the Skerryvore
licence with a 30% working interest. Joint venture partners in the
licence are Serica Energy (20%), CalEnergy Resources (20%) and
Zennor Petroleum (30%).
Following the unexpected, late withdrawal of Dana Petroleum from
the Platypus licence, Parkmead agreed in principle to become the
temporary acting operator and entered into commercial discussions
with the Platypus supply chain to formulate a revised commercial
project that could be put to the regulatory authorities to seek
extension of the licence. A considered and improved commercial plan
was put to the regulator well ahead of the formal end of the
licence, however, despite intensive and prolonged discussions it
was not possible to arrive at suitable terms for an extension and,
although a new licence could be sought in due course, it was
ultimately decided by the partners not to pursue the matter further
at this time. So Parkmead has prudently recognised a full
impairment charge. The Board of Parkmead is now able to re-focus
the Group's time and resources, that it would otherwise have spent
on Platypus on projects, where we can see a clear pathway to
delivering enhanced shareholder value.
Elsewhere in the UK, we have secured an extension to the Initial
Term A of West of Shetland licence P.2406, which contains the large
Davaar Paleocene prospect. We have begun interpretation of the
newly reprocessed seismic data ahead of further work next year.
The Greater Perth Area (GPA) development continues to form a
part of our balanced portfolio of assets. This year has seen the
completion of transportation studies for our base case development
concept. The studies have confirmed there are no technical hurdles
associated with the transportation and processing of fluids from
the Perth producing wells all the way through the infrastructure to
the onshore facilities. Parkmead continues to engage with leading,
internationally-renowned supply chain companies in order to
optimise the commercial solution.
Parkmead continues to assess draft commercial offers received
from the Scott field partnership for the potential tie-back of the
GPA project. 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
just one path to potentially unlock the substantial value of the
GPA project. The GPA project has the potential to deliver 75-130
MMBoe on a P50 basis. For the Perth field development alone, every
$10/bbl increase in the oil price adds approximately GBP130 million
to the P50 post-tax NPV of the project.
We believe that projects like GPA play an important role in
underpinning the supply of energy that the UK requires in its
transition to net zero. As a fuel that is primarily used for
transportation, manufacturing and petrochemicals, oil will continue
to feature as a vital commodity in the UK and it is very important
that the UK continues to develop its projects in order to reduce
reliance on less-regulated, more carbon-intensive imports.
Parkmead believes that production of hydrocarbons from GPA can
be done in a sustainable fashion in alignment with the UK
government's most recent targets on carbon emissions.
Onshore Renewables
In March 2021, Parkmead completed the successful sales of two
separate areas of non-core land from its UK renewable energy
portfolio for an aggregate consideration of GBP4.0 million. This
divestment follows detailed analysis carried out across the Group's
onshore land acreage. Sites with the largest renewable energy
potential have been retained and high-graded, with a strategy to
divest non-core land. These sales are in line with that
strategy.
A number of renewable energy opportunities exist within our
onshore portfolio and we continue to advance these through
Parkmead's in-house technical and commercial expertise, alongside
regional experts. Significant wind energy potential lies at a
location within our portfolio some 15 miles west of Aberdeen. The
acreage has excellent average wind speeds and lies adjacent to the
Mid Hill Wind Farm which contains 33 Siemens wind turbines with a
generating capacity of around 75 megawatts (MW). Technical studies
are already underway at this site.
Outlook
Our focus at Parkmead is to continue building a robust and
balanced European energy business with both organic and inorganic
growth opportunities. We have an excellent and determined team of
energy experts who view the rapidly-changing energy landscape as an
opportunity, not as a threat. Our team is looking at several new
opportunities in gas and renewable energy.
We maintain a very healthy appetite for transactions which could
provide incremental revenue, cash flow and long-term value for
shareholders.
Our proactive approach to investment in cleaner energies stands
us in excellent shape to continue building a balanced portfolio of
assets within the Company.
We continue to remain unhedged for 100% of our gas production,
thus giving exposure to the higher Dutch gas prices for the
remainder of the year.
We have started the 2022 financial year on a sound footing with
record high gas prices and work ongoing across a number of projects
which should pave the way for a successful year ahead.
Tom Cross
Executive Chairman
25 November 2021
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU No. 596/2014) which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
Notes:
1. Tim Coxe, Parkmead Group's Managing Director, North Sea,
holds a First-Class Master's Degree in Engineering and over 30
years of experience in the oil and gas industry. Tim is accountable
for the company's HSE, Subsurface, Drilling, Production Operations
and Development Project functions and has approved the technical
information contained in this announcement. Reserves and contingent
resource estimates have been produced by Parkmead's subsurface team
and are stated as of 30 September 2021. Parkmead's evaluation of
reserves and resources was prepared 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.
Group statement of profit or loss
for the year ended 30 June 2021
Jun-21 Jun-20
Continuing operations Notes GBP'000 GBP'000
Revenue 3,608 4,080
Cost of sales (1,835) (2,806)
Gross profit 1,773 1,274
Exploration and evaluation expenses 4 (11,116) (1,556)
Gain on bargain purchase - 362
Loss on sale of assets (388) -
Administrative expenses 2 (3,040) (257)
------------------------------------------------ ------ ------------- --------
Operating loss (12,771) (177)
Finance income 148 199
Finance costs (819) (814)
Loss before taxation (13,442) (792)
Taxation (364) 310
------------------------------------------------ ------ ------------- --------
Loss for the period attributable to the equity
holders of the Parent (13,806) (482)
------------------------------------------------ ------ ------------- --------
(Loss) / earnings per share (pence)
Basic 3 (12.64) (0.45)
Diluted 3 (12.64) (0.45)
Adjusted EBITDA (958) 1,574
Depreciation (611) (764)
Amortisation and exploration write-off (10,855) (1,298)
Loss on sale of property, plant and equipment (388) -
Gain on bargain purchase - 362
Provision for share based payments 41 (51)
Operating Loss (12,771) (177)
Group statement of profit or loss and other comprehensive
income
for the year ended 30 June 2021
2021 2020
GBP'000 GBP'000
------------------------------------- --------- --------
(Loss) / profit for the year (13,806) (482)
-------------------------------------- --------- --------
Other comprehensive income
Income tax relating to components
of other comprehensive income - -
------------------------------------- --------- --------
Other comprehensive income
for the year, net of tax - -
------------------------------------- --------- --------
Total comprehensive (loss)
/ income for the year attributable
to the equity holders of
the Parent (13,806) (482)
-------------------------------------- --------- --------
Group statement of financial position
as at 30 June 2021
2021 2020
GBP'000 GBP'000
Non-current assets
Property, plant and equipment: development
& production 14,646 11,979
Property, plant and equipment: other 4,654 9,411
Goodwill 2,174 2,174
Exploration and evaluation assets 29,497 36,089
Investment in subsidiaries and joint - -
ventures
Interest bearing loans 2,900 2,900
Deferred tax assets - 3
--------------------------------------------- ------ --------- -----------
Total non-current assets 53,871 62,556
--------------------------------------------- ------ --------- -----------
Current assets
Trade and other receivables 1,352 1,414
Inventory 66 131
Cash and cash equivalents 23,378 25,708
Total current assets 24,796 27,253
--------------------------------------------- ------ --------- -----------
Total assets 78,667 89,809
--------------------------------------------- ------ --------- -----------
Current liabilities
Trade and other payables (3,490) (4,437)
Current tax liabilities (241) -
-------------------------------------------- ------- --------- -----------
Total current liabilities (3,731) (4,437)
--------------------------------------------- ------ --------- -----------
Non-current liabilities
Trade and other payables (1,011) (1,372)
Loans (500) (3,600)
Deferred tax liabilities (1,339) (1,404)
Decommissioning provisions (14,365) (7,650)
--------------------------------------------- ------ --------- -----------
Total non-current liabilities (17,215) (14,026)
--------------------------------------------- ------ --------- -----------
Total liabilities (20,946) (18,463)
--------------------------------------------- ------ --------- -----------
Net assets 57,721 71,346
--------------------------------------------- ------ --------- ---------
Equity attributable to equity holders
Called up share capital 19,688 19,678
Share premium 88,017 87,805
Merger reserve 3,376 3,376
Retained deficit (53,360) (39,513)
--------------------------------------------- ------------- ---------
Total Equity 57,721 71,346
--------------------------------------------- ----------------- ---------
Group statement of changes in equity
for the year ended 30 June 2021
Share Share Merger Retained Total
capital premium reserve deficit
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ ------------- --------- --------- ----------- -----------
At 30 June 2019 19,533 87,805 - (39,082) 68,256
------------------------------ ------------- --------- --------- ----------- -----------
Loss for the year - - - (482) (482)
Total comprehensive loss for
the year - - - (482) (482)
Share capital issued 145 - 3,376 - 3,521
Share-based payments - - - 51 51
------------------------------ ------------- --------- --------- ----------- -----------
At 30 June 2020 19,678 87,805 3,376 (39,513) 71,346
------------------------------ ------------- --------- --------- ----------- -----------
Loss for the year - - - (13,806) (13,806)
Total comprehensive loss for
the year - - - (13,806) (13,806)
Share capital issued 10 212 - - 222
Share-based payments - - - (41) (41)
------------------------------ ------------- --------- --------- -----------
At 30 June 2021 19,688 88,017 3,376 (53,360) 57,721
------------------------------ ------------- --------- --------- ----------- -----------
Group statement of cashflows
for the year ended 30 June 2021
2021 2020
Notes GBP'000 GBP'000
---------------------------------- ------ -------------- ----------
Cashflows from operating
activities
Continuing activities 4 (1,191) 882
Taxation paid (124) (1,883)
---------------------------------- ------ -------------- ----------
Net cash (used in) /
generated by operating
activities (1,315) (1,001)
---------------------------------- ------ -------------- ----------
Cash flow from investing
activities
Interest received 148 163
Acquisition of exploration
and evaluation assets (369) (3,335)
Disposal of property, 4,000 -
plant and equipment
Acquisition of property,
plant and equipment:
development and production (165) (34)
Acquisition of property,
plant and equipment:
other (114) (416)
Decommissioning expenditure (31) -
Net cash from Pitreadie - 24
Net cash generated by
/ (used in) investing
activities 3,469 (3,598)
---------------------------------- ------ -------------- ----------
Cash flow from financing
activities
Interest paid (110) (113)
Lease payments (421) (410)
Repayment from loans (3,100) -
and borrowings
Net cash (used in) /
generated by financing
activities (3,631) (523)
---------------------------------- ------ -------------- ----------
Net (decrease) / increase
in cash and cash equivalents (1,477) (5,122)
---------------------------------- ------ -------------- ----------
Cash and cash equivalents
at beginning of year 25,708 30,666
Effect of foreign exchange rate
differences (853) 164
---------------------------------- ------ -------------- ----------
Cash and cash equivalents at
end of year 23,378 25,708
---------------------------------- ------ -------------- ----------
Notes to the financial information for the year ended 30 June
2021
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 2021 or 30 June 2020.
The financial information has been extracted from the audited
statutory accounts for the years ended 30 June 2021 and 30 June
2020. 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 2020 have been
delivered to the Registrar of Companies. The
statutory accounts for the year ended 30 June 2021 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
2020 and the statutory accounts for the year ended 30 June 2020,
and have been prepared in accordance with International Financial
Reporting Standards ("IFRS") as adopted by the United Kingdom.
2. Administrative expenses
Administrative expenses include a charge in respect of a
non-cash revaluation of share appreciation rights (SARs) and share
based payments totalling GBP56,000 (2020: GBP1,364,000 credit). The
SARs may be settled by cash and are therefore revalued with the
movement in share price. The valuation was impacted by the increase
in share price between 30 June 2020 and 30 June 2021.
3. Profit / (loss) per share
Profit/(loss) per share attributable to equity holders of the
Company arise from continuing and discontinued operations as
follows:
2021 2020
(Loss) / profit per 1.5p ordinary share
from continuing operations (pence)
Basic (12.64)p (0.45)p
Diluted (12.64)p (0.45)p
The calculations were based on the following information:
2021 2020
GBP'000 GBP'000
Loss attributable to ordinary shareholders
Continuing operations (13,806) (482)
--------------------------------------------- ------------ ------------
Total (13,806) (482)
--------------------------------------------- ------------ ------------
Weighted average number of shares in issue
Basic weighted average number of shares 109,188,561 106,282,006
--------------------------------------------- ------------ ------------
Dilutive potential ordinary shares
Share options - -
--------------------------------------------- ------------ ------------
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 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 (loss) / profit to net cash flow
from continuing operations
2021 2020
GBP'000 GBP'000
Operating profit / (loss) (12,771) (177)
Depreciation 611 764
Amortisation and exploration write-off 10,855 1,298
Loss on sale of property, plant and equipment 388 -
Gain on bargain purchase - (362)
Provision for share based payments (41) 51
Currency translation adjustments 853 (164)
Decreases / (increase) in receivables 62 (683)
Decrease in stock 65 230
Increase/(decrease) in payables (1,213) (75)
(1,191) 882
----------------------------------------------- ------------ --------
5. Approval of this preliminary announcement
This announcement was approved by the Board of Directors on 25
November 2021.
6. Publication of annual report and accounts
Copies of the Annual Report and Accounts will be made available
shortly on the Company's website www.parkmeadgroup.com, along with
a copy of this announcement.
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END
FR LELLLFFLBFBV
(END) Dow Jones Newswires
November 26, 2021 02:00 ET (07:00 GMT)
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