TIDMPMG
RNS Number : 2775H
Parkmead Group (The) PLC
23 November 2022
23 November 2022
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Preliminary Results for the year ended 30 June 2022
Parkmead, the independent energy group focused on growth through
gas, oil and renewable energy projects, is pleased to report its
preliminary results for the year ended 30 June 2022.
HIGHLIGHTS
Record revenue, up 236%, with strong cashflow and profits
recorded at operating and pre-tax levels
-- Revenue more than tripled to GBP12.1 million (2021: GBP3.6
million), as the Company benefited from the continued strength in
gas prices
-- Gross profit increased significantly to GBP10.8 million
(2021: GBP1.8 million), demonstrating the high-quality of
Parkmead's onshore Netherlands assets
-- Gross margin increased to 89% (2021: 49%)
-- Net cash generated from operating activities of GBP4.5
million (2021: GBP1.3 million used in operating activities)
-- Adjusted EBITDA of GBP9.1 million (2021: GBP1.0m loss)
-- Operating profit achieved of GBP5.2 million (2021: GBP12.8
million loss) or 4.8p on a per share basis
-- Record profit before tax of GBP4.0 million (2021: GBP13.4
million loss) or 3.7p on a per share basis
-- Revenue in excess of EUR9.0 million from the Netherlands in
the four-month period to 31 October 2022, as Parkmead remains 100%
unhedged
-- Parkmead maintains strict financial discipline with very low operating costs
Gas royalty acquisition proving highly beneficial
-- Acquisition of Netherlands gas royalty completed in July
2021, doubling Parkmead's effective financial interest from 7.5% to
15% in the Grolloo, Geesbrug and Brakel gas fields
-- Parkmead is benefiting strongly from this gas royalty deal,
completed ahead of the increase in energy prices
-- Low-cost onshore gas portfolio in the Netherlands produces
from four separate gas fields with an average field operating cost
of just US$8.6 per barrel of oil equivalent ("boe"), generating
strong cash flows
-- Average netback for the year from the Netherlands of approximately $120 per boe
-- Average gross production for the period across the Group's
Netherlands assets was 21.7 million cubic feet per day ("MMscfd"),
approximately 3,740 barrels of oil equivalent per day ("boepd")
Operational wind farm acquired, delivering immediate electricity
revenues
-- Acquisition of 1.5MW onshore wind farm in Scotland through
purchase of Kempstone Hill Wind Energy Limited ("KHWEL") for
GBP3.29 million
-- Acquisition was immediately revenue and cash flow enhancing
-- The Kempstone Hill wind farm provides power for up to 1,000
homes and has an attractive inflation-linked, Feed-in Tariff
through until 2036
-- Electricity is sold through a power purchase agreement
("PPA"); Parkmead renegotiated the PPA in August 2022 securing a
245% increase in its export electricity prices
-- Parkmead assessing a number of opportunities to further
enhance the Kempstone Hill Wind Farm, such as the potential
inclusion of solar power generation, and expanding sales of
electricity to local industrial users
Substantial gas and oil reserves and resources
-- Proven and Probable (2P) reserves of 45.5 million barrels of
oil equivalent ("MMboe") as at 30 September 2022 (45.5 MMboe as at
30 September 2021)
Well positioned for further acquisitions and opportunities
-- Parkmead maintains its appetite for energy acquisitions. The
Group is well positioned, with a strong balance sheet, to
capitalise on opportunities within in the sector
Post period end:
New two-well drilling campaign in the Netherlands commencing
-- Spudding of 'LDS' two-well drilling campaign from the Diever site expected imminently
-- The LDS project will target a combined Pmean Gas in Place of
37.2 billion cubic feet ("Bcf"), in the prolific Rotliegendes
reservoirs found on the licence
Increased stake in Skerryvore to 50%; Greater Perth Area farm
out launched
-- Parkmead increased its stake in the high-impact Skerryvore project from 30% to 50%
-- Planned well will target the main stacked exploration
prospects, at Mey and Chalk level, which studies indicate could
contain 157 million barrels of oil equivalent (MMboe) in the P50,
most likely case
-- Greater Perth Area ("GPA") farm-out process launched in September 2022
-- New UK Energy Profits Levy has created a powerful investment
incentive for major producers to invest in new UK North Sea
developments, with an investment allowance of up to 91%
-- Core Perth field alone holds approximately 55 million barrels
of recoverable oil equivalent ("MMboe") on a most likely, P50
basis
-- Wider GPA project has the potential to deliver between 75 and 130 MMboe on a P50 basis
-- GPA has been fully appraised and no further appraisal
drilling is needed; constituent wells have been flow tested at
rates of up to 6,000 boepd
Parkmead's Executive Chairman, Tom Cross, commented:
"I am delighted to report an excellent year of progress for
Parkmead. We have delivered record gas revenue and strong pre-tax
profits through our high-quality Dutch assets.
The innovative royalty deal which we completed last summer is
proving to be highly advantageous and is adding considerable value.
Parkmead is 100% unhedged and is benefiting from these additional
gas sales at higher prices.
We will be spudding the first of our LDS wells imminently in the
Netherlands. This will target new onshore gas resources which, in a
success case, will be tied in quickly to production. Parkmead has
already commenced well planning work on the high-impact Skerryvore
project in the UK.
A strong contribution is being made by the Kempstone Hill Wind
Farm, producing 100% renewable energy direct to the grid. This UK
onshore wind farm is complementary to the Group's low-carbon,
onshore operations in the Netherlands.
Our team continues to identify and evaluate further acquisitions
that would enhance 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 (Finance Director & Company
Secretary)
finnCap Ltd +44 (0) 20 7220 0500
Marc Milmo / Seamus Fricker - Corporate
Finance
Andrew Burdis / Barney Hayward - ECM
CHAIRMAN'S STATEMENT
2022 has been an important year of delivery for Parkmead.
Building on the solid foundations established in recent years, the
Group increased its revenue by 236% in the period to GBP12.1
million and generated strong profits at both operating and pre-tax
levels. Parkmead achieved an operating profit of GBP5.2 million and
a record profit before tax of GBP4.0 million.
We also delivered a number of important, value-adding steps
across our projects this year, including increasing our stake in
Skerryvore, acquiring the Kempstone Hill wind farm and completing
the Netherlands gas royalty transaction.
Financial Performance
The Group's revenue for the year to 30 June 2022 was GBP12.1m
(2021: GBP3.6m), generating a substantial increase in gross profit
to GBP10.8m (2021: GBP1.8m). The gross margin improved from 49% to
89%, showing the high-quality nature of Parkmead's onshore
production in the Netherlands and strong operating leverage.
The increased revenue in the year reflected the good operating
performance and substantially higher gas prices during 2021, which
increased further in 2022 following Russia's invasion of Ukraine.
This strength in gas prices has continued since the financial year
end, with prices reaching approximately EUR350/MWh in August 2022.
Since then, prices have softened and are now trading at more
normalised levels as seen during the financial year. The spike in
pricing has resulted in revenue from the Netherlands in the
four-month period to 31 October 2022 in excess of EUR9.0 million.
Parkmead remains 100% unhedged and therefore benefits from these
higher prices.
Operating profit for the year was GBP5.2m (2021: GBP12.8m loss)
and an adjusted EBITDA was delivered of GBP9.0m (2021: GBP1.0m
loss). A record profit before tax was recorded of GBP4.0m (2021:
GBP13.4m loss).
Taxation paid of GBP4.8m (2021: GBP0.4m) relates primarily to
Parkmead's Netherlands assets and reflects high revenue and very
low operating costs across the onshore portfolio. Accordingly, the
Group's net loss for the period fell significantly to GBP0.8m
(2021: GBP13.8m). Parkmead maintains a strong balance sheet with
total assets of GBP86.3m (2021: GBP78.7m) as 30 June 2022. Cash and
cash equivalents at year-end were GBP23.3m (2021: GBP23.4m) and
interest bearing loans receivable were GBP2.9m (2021: GBP2.9m). The
Group's net asset value was GBP57.0m (2021: GBP57.7m). Debt within
the Group remains minimal and was GBP0.9m at 30 June 2022 (2021:
GBP0.5m). This prudent approach to external debt is an important
part of our financial discipline.
An impairment of goodwill was recorded in the year of GBP2.2m
(2021: GBPnil) relating to historic contracts held by the Group's
benchmarking and economics subsidiary company, Aupec Limited. Aupec
is undergoing a growth strategy change that will focus the
company's offering to a more interactive, cloud-based system for
clients. This will also allow Aupec to offer a benchmarking
analytics service to clients outside of the energy sector.
As a result of the excellent cash flow received from the
Netherlands this year, we decided to move forward with legacy
decommissioning activities that are required to be carried out in
the UKCS. Completing this work will position Parkmead well ahead of
its next phase of growth, with no major abandonment liabilities
going forward. Decommissioning provisions for the period were
GBP19.2m (2021: GBP0.4m). The Group is also capitalising on lower
costs, agreed before the significant inflation in the offshore
market.
Group administrative expenses were GBP2.2m (2021: GBP3m).
Underlying staff costs, before share based payments, were reduced
to GBP1.7m (2021: GBP2.0m).
Netherlands Gas Projects
In July 2021, Parkmead completed the acquisition of a gas
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.
The acquisition doubled the Group's effective financial interest
from 7.5% to 15% (in line with Parkmead's working interest in the
licences). This royalty was previously held by NAM (a Shell and
ExxonMobil joint venture) and came with the licences when they were
acquired by Parkmead. The consideration for the royalty was
EUR565k.
The acquisition is already proving to be of significant benefit
to Parkmead as it was completed ahead of the recent increase in
energy prices. It is expected that the royalty deal will also
significantly extend the producing life of these fields, through
greater partner alignment.
Our Netherlands production was some of the most efficient and
profitable in Europe during 2022, on a per-barrel basis. Average
gross production for the financial year across the Group's
Netherlands assets was 21.7 MMscfd, approximately 3,740 barrels of
oil equivalent per day ("boepd").
We recently announced the spudding of the 'LDS' two-well
drilling campaign in the Netherlands. The LDS wells are being
drilled from the existing Diever well site and will target a
combined mid-case gas-in-place of 37.2 billion cubic feet ("Bcf")
in the prolific Rotliegendes reservoirs within this licence. The
production tie-in period for these onshore targets is very short
and, provided success at LDS, would result in significant
additional revenue and cash flow for Parkmead.
The operating cost of the combined fields is very low at just
$8.6 per barrel of oil equivalent. These high-quality assets,
combined with the operating leverage from a fixed cost base,
underpins the outstanding gross profit margin during the year 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 one of the
most prolific producing onshore fields in the Netherlands. Given
the production from Parkmead's Netherlands assets, especially in
the context of current gas prices, a key near term focus for the
Company will be to maximise the opportunities within these
licences. The LDS two-well drilling campaign is part of this
strategy.
UK Oil and Gas Projects
Skerryvore
Following consultation with its joint venture partners in
Licence P.2400 (which encompasses the Skerryvore prospects) and
having received approvals from the regulatory authorities, post
period end Parkmead reached agreement to increase its stake in the
Skerryvore project from 30% to 50%. Parkmead will continue as
Operator on the licence, which is testament to the efforts and
capability of the Parkmead team. Skerryvore will be Parkmead's
first operated exploration well. Parkmead's joint venture partners
in the licence going forward will be Serica Energy (UK) Limited
(20%) and CalEnergy (Gas) Limited (30%).
In addition, Parkmead has received approval from the North Sea
Transition Authority (NSTA) to enter the next phase of this licence
with agreement to drill the high-impact Skerryvore prospects. The
Company's geotechnical work programme has confirmed the
considerable multi-interval potential of Skerryvore. The planned
well will target the main stacked exploration prospects, at Mey and
Chalk level, which studies indicate could contain 157 million
barrels of oil equivalent ("MMboe") in the P50, most likely case.
The licence also contains additional prospectivity at the Ekofisk
and Jurassic levels. A successful discovery could be tied into
existing and planned infrastructure in the vicinity.
The area around Skerryvore is currently seeing important
activity on several fronts, with Harbour Energy progressing the
adjacent Talbot discovery, NEO Energy proceeding with the
redevelopment of Affleck and TotalEnergies appraising the Isabella
discovery. Development activity is also taking place in the
Norwegian sector in close proximity to Skerryvore at Tommeliten A,
a licence operated by ConocoPhillips.
Greater Perth Area ("GPA")
Parkmead has engaged a leading energy corporate finance advisory
firm, Gneiss Energy Limited, to manage the process to find a
suitable industry partner (or partners) in relation to the
Company's 100% interest in the Greater Perth Area "GPA")
development project.
The core Perth field holds approximately 55MMboe on a most
likely, P50 basis. The wider GPA project has the potential to
deliver between 75 and 130 MMboe on a P50 basis and could provide
material value-adding volumes to surrounding infrastructure through
field life extension.
GPA is one of the North Sea's largest undeveloped oil projects
and has been fully appraised, so no further appraisal drilling is
needed. The constituent wells have been flow tested at rates of up
to 6,000 barrels of oil per day and have produced good quality,
light crude oil of between 37deg and 32deg API.
Parkmead has continued dialogue on commercial terms with the
nearby Scott field partnership for the potential tie-back of the
GPA project to Scott. Scott lies just 6 miles southeast of GPA and
a tie-back could yield a number of mutually beneficial advantages
for both the Scott partnership and the Perth owners.
Transportation studies for the base case GPA development concept
have previously been completed. These have confirmed there are no
technical showstoppers that would prevent the transportation and
processing of fluids from the Perth production wells, all the way
through the offshore infrastructure and onshore facilities.
Parkmead continues to align potential project development concepts
with the UK government's net zero commitment and has therefore
initiated a net zero study for GPA. Encouraging industry interest
has also been received with regards to the GPA farm out and
constructive dialogue continues across all three GPA licences with
NSTA.
Parkmead believes that projects like GPA play an important role
in underpinning the supply of energy that the UK needs during 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 over the coming years.
Therefore, it is very important that the UK continues to develop
projects such as GPA in order to reduce the UK's 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.
Russia's invasion of Ukraine has increased the UK Government's
focus on energy security and confirmed the importance of having
sizeable and robust UK domestic energy production. The rise in
international oil and gas prices has also strengthened investment
appetite through enhanced economics. Parkmead has also seen a
positive investment sentiment emanating from the introduction of
the new UK Energy Profits Levy, whereby the associated investment
allowance of up to 91% has created a powerful incentive for major
producers to invest in new UK North Sea developments.
Onshore Renewables
The acquisition of the Kempstone Hill Wind Farm, completed 31
January 2022, has now been fully integrated into the Group. The
acquisition was immediately revenue and cash flow enhancing. In the
last 12 months the wind farm generated 2,850 MWh with a 99.7%
availability, enough to power up to 1,000 homes. Kempstone Hill
benefits from an attractive inflation-linked, Feed-in Tariff
through until 2036. Wholesale export prices have seen strong gains
throughout 2022. As part of Kempstone Hill's integration into
Parkmead, a new Power Purchase Agreement was negotiated, commencing
1 August 2022, which we expect to result in a substantial increase
in 2023's cashflow. Parkmead also has been assessing a number of
opportunities to further enhance the Kempstone Hill Wind Farm, such
as the potential inclusion of solar power generation, and expanding
sales of electricity to local industrial users.
The major shift in the electricity generation market has changed
the dynamics of renewable projects and Parkmead has decided to
position Pitreadie based on a hybrid of renewable technologies
following the completion of successful feasibility studies during
the year. To that effect, Parkmead is progressing the work required
to allow the Company to consider submitting a full planning
application for a combined wind and solar farm, with added
potential for a battery storage unit. This complements our existing
onshore projects throughout the UK and Netherlands as the Group
looks to continue expanding its onshore energy portfolio.
Outlook
Our focus at Parkmead is to continue building a robust and
balanced European energy business, driving forward both organic and
inorganic growth opportunities. We have delivered significant
growth across our portfolio this year, alongside achieving record
gas revenue and profit before tax.
The Directors believe that there are excellent prospects to
increase production from Parkmead's Netherlands assets and we will
imminently spud a new two-well drilling campaign to begin accessing
these opportunities. The current gas price environment provides a
strong platform to capitalise on the low cost of production from
these concessions.
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 positions Parkmead to continue building a balanced
portfolio of assets across the Group.
Parkmead's strict financial discipline has allowed us to remain
unhedged for 100% of our gas production, thus gaining maximum
exposure to the higher Dutch gas prices. The Company has started
the 2023 financial year on a sound footing, with work ongoing
across a number of projects which should pave the way for a
successful year ahead.
Tom Cross
Executive Chairman
22 November 2022
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 2022. 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 2022
Jun-22 Jun-21
Continuing operations Notes GBP'000 GBP'000
Revenue 12,129 3,608
Cost of sales (1,370) (1,835)
Gross profit 10,759 1,773
Exploration and evaluation expenses 4 (1,116) (11,116)
Impairment of goodwill (2,174) -
Loss on sale of assets (31) (388)
Administrative expenses 2 (2,231) (3,040)
------------------------------------------------ ------ ---------- -------------
Operating profit/(loss) 5,207 (12,771)
Finance income 73 148
Finance costs (1,317) (819)
Profit/(Loss) before taxation 3,963 (13,442)
Taxation (4,777) (364)
------------------------------------------------ ------ ---------- -------------
Loss for the period attributable to the equity
holders of the Parent (814) (13,806)
------------------------------------------------ ------ ---------- -------------
(Loss) per share (pence)
Basic 3 (0.75) (12.64)
Diluted 3 (0.75) (12.64)
Adjusted EBITDA 9,085 (958)
Depreciation (726) (611)
Amortisation and exploration write-off (860) (10,855)
Loss on sale of property, plant and equipment (31) (388)
Impairment of Goodwill (2,174) -
Provision for share based payments (87) 41
Operating Profit/(Loss) 5,207 (12,771)
Group statement of profit or loss and other comprehensive
income
for the year ended 30 June 2022
2022 2021
GBP'000 GBP'000
----------------------------------- -------- ---------
(Loss) for the year (814) (13,806)
------------------------------------ -------- ---------
Other comprehensive income
Income tax relating to components
of other comprehensive income - -
----------------------------------- -------- ---------
Other comprehensive income
for the year, net of tax - -
----------------------------------- -------- ---------
Total comprehensive (loss)
for the year attributable
to the equity holders of
the Parent (814) (13,806)
------------------------------------ -------- ---------
Group statement of financial position
as at 30 June 2022
2022 2021
GBP'000 GBP'000
Non-current assets
Property, plant and equipment: development
& production 15,843 14,646
Property, plant and equipment: other 6,636 4,654
Goodwill 1,084 2,174
Exploration and evaluation assets 34,346 29,497
Interest bearing loans 2,900 2,900
Deferred tax assets 187 -
-------------------------------------------- ------- ------------- -----------
Total non-current assets 60,996 53,871
------------------------------------------------ --- ------------- -----------
Current assets
Trade and other receivables 2,018 1,352
Inventory 42 66
Cash and cash equivalents 23,263 23,378
Total current assets 25,323 24,796
------------------------------------------------ --- ------------- -----------
Total assets 86,319 78,667
------------------------------------------------ --- ------------- -----------
Current liabilities
Trade and other payables (22,773) (3,490)
Current tax liabilities (1,432) (241)
------------------------------------------------ --- ------------- -----------
Total current liabilities (24,205) (3,731)
------------------------------------------------ --- ------------- -----------
Non-current liabilities
Trade and other payables (1,181) (1,011)
Loans (948) (500)
Deferred tax liabilities (1,925) (1,339)
Decommissioning provisions (1,066) (14,365)
------------------------------------------------ --- ------------- -----------
Total non-current liabilities (5,120) (17,215)
------------------------------------------------ --- ------------- -----------
Total liabilities (29,325) (20,946)
------------------------------------------------ --- ------------- -----------
Net assets 56,994 57,721
------------------------------------------------ --- ------------- ---------
Equity attributable to equity holders
Called up share capital 19,688 19,688
Share premium 88,017 88,017
Merger reserve 3,376 3,376
Retained deficit (54,087) (53,360)
------------------------------------------------ ----------------- ---------
Total Equity 56,994 57,721
------------------------------------------------ ------------------ ---------
Group statement of changes in equity
for the year ended 30 June 2022
Share Share Merger Retained Total
capital premium reserve deficit
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ ------------- --------- --------- --------- ----------
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
------------------------------ ------------- --------- --------- --------- ----------
Loss for the year - - - (814) (814)
Total comprehensive loss for
the year - - - (814) (814)
Share capital issued - - - - -
Share-based payments - - - 87 87
------------------------------ ------------- --------- --------- ---------
At 30 June 2022 19,688 88,017 3,376 (54,087) 56,994
------------------------------ ------------- --------- --------- --------- ----------
Group statement of cashflows
for the year ended 30 June 2022
2022 2021
Notes GBP'000 GBP'000
---------------------------------------- ------ -------- --------
Cashflows from operating activities
Continuing activities 4 8,038 (1,191)
Taxation paid (3,508) (124)
---------------------------------------- ------ -------- --------
Net cash generated by/(used in)
operating activities 4,530 (1,315)
---------------------------------------- ------ -------- --------
Cash flow from investing activities
Interest received 73 148
Acquisition of exploration and
evaluation assets (548) (369)
Disposal of property, plant and
equipment 874 4,000
Acquisition of property, plant
and equipment: development and
production (123) (165)
Acquisition of property, plant
and equipment: other (3,114) (114)
Decommissioning expenditure (1,667) (31)
Net cash on acquisition of Kempstone 360 -
Hill
Net cash generated by/(used in)
investing activities (4,145) 3,469
---------------------------------------- ------ -------- --------
Cash flow from financing activities
Interest paid (45) (110)
Lease payments (375) (421)
Repayment from loans and borrowings (542) (3,100)
Net cash (used in) financing
activities (962) (3,631)
---------------------------------------- ------ -------- --------
Net (decrease) in cash and cash
equivalents (577) (1,477)
---------------------------------------- ------ -------- --------
Cash and cash equivalents at beginning
of year 23,378 25,708
Effect of foreign exchange rate
differences 462 (853)
---------------------------------------- ------ -------- --------
Cash and cash equivalents at
end of year 23,263 23,378
---------------------------------------- ------ -------- --------
Notes to the financial information for the year ended 30 June
2022
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 2022 or 30 June 2021.
The financial information has been extracted from the audited
statutory accounts for the years ended 30 June 2022 and 30 June
2021. 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 2021 have been
delivered to the Registrar of Companies. The
statutory accounts for the year ended 30 June 2022 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
2021 and the statutory accounts for the year ended 30 June 2021 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 GBP505,000 (2021: GBP56,000). The SARs may
be settled via shares or cash and are therefore revalued with the
movement in share price. The valuation was impacted by the increase
in share price between 30 June 2021 and 30 June 2022.
3. Profit / (loss) per share
Profit/(loss) per share attributable to equity holders of the
Company arise from continuing and discontinued operations as
follows:
2022 2021
(Loss) / profit per 1.5p ordinary share
from continuing operations (pence)
Basic (0.75)p (0.45)p
Diluted (0.75)p (0.45)p
The calculations were based on the following information:
2022 2021
GBP'000 GBP'000
Loss attributable to ordinary shareholders
Continuing operations (814) (13,806)
---------------------------------------------- ------------ ------------
Total (814) (13,806)
---------------------------------------------- ------------ ------------
Weighted average number of shares in issue
Basic weighted average number of shares 109,266,931 109,188,561
---------------------------------------------- ------------ ------------
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
2022 2021
GBP'000 GBP'000
Operating profit / (loss) 5,207 (12,771)
Depreciation 726 611
Amortisation and exploration write-off 860 10,855
Loss on sale of property, plant and equipment 31 388
Provision for share based payments 87 (41)
Currency translation adjustments (462) 853
Impairment of goodwill 2,174 -
Decreases / (increase) in receivables (667) 62
Decrease in stock 24 65
Increase/(decrease) in payables 58 (1,213)
Net cash flow from operations 8,038 (1,191)
------------------------------------------------ -------------- -----------
5. Approval of this preliminary announcement
This announcement was approved by the Board of Directors on 22
November 2022.
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 FFFIILSLFFIF
(END) Dow Jones Newswires
November 23, 2022 02:00 ET (07:00 GMT)
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