RNS Number:3120K
Global Natural Energy PLC
23 April 2003
FOR IMMEDIATE RELEASE
GLOBAL NATURAL ENERGY PLC
(formerly Middlesex Holdings plc)
23 April 2003
Global Natural Energy plc today announced unaudited preliminary results for the
year ended 31 December 2002.
Financial Highlights
Restated
2002 2001
Unaudited Audited
Turnover #94.3m #125.8m
Retained profit for the year #171,000 #33,000
Basic earnings per share before share of
e-commerce venture's start-up costs 2.1p 1.8p*
Basic earnings per share after such costs 1.6p 0.3p*
* rebased for 100 for 1 share consolidation on 12 August 2002.
Farhad Moshiri, Chief Executive, commented:
"The initiation, processing and completion of the fundamental changes in the
business and investment operations of the Group in 2002 took up considerable
resources within the Group. Thankfully, these changes have now been totally
completed and it is my view the Group is now in a much stronger financial
position and is in better shape for trading in 2003 and beyond."
For further information, please contact:
Farhad Moshiri
Chief Executive
Global Natural Energy plc 020 7483 2426
Dennis Bailey
Hichens Harrison & Co. plc 020 7588 5171
Chief Executive's Review
On 9 August 2002 the Company completed the disposal of all its Russian steel
trading businesses and related investments and acquired a further equity
investment in Petrol Express Limited so as to achieve control of that company
and account for it as a subsidiary. On the same day the Company also completed
the acquisition of a fuel card business, Fuel Up Limited for a maximum
consideration of #3.6 million, which it immediately sold to Petrol Express
Limited for the same consideration. On the same day Petrol Express Limited
acquired four petrol stations increasing its portfolio to 50 operational sites
generating sales from fuel retailing and forecourt shop sales.
The year ended 31 December 2002 is the last accounting period for the Group in
its former business of metal trading and investment. Turnover in 2002 decreased
by 25% to #94.3 million (2001 - #125.8 million). The Group's profit for the
financial year was #171,000 (2001 - #33,000 restated). Earnings per share were
2.1p before incorporating the Group's share of Europe Steel plc's start-up costs
(earnings per share of 1.6p after such costs, 2001 - 0.3p*). In line with
previous policy, no dividend is proposed.
*: rebased for 100 for 1 share consolidation on 12 August 2002
Since the Company acquired the petrol stations and fuel card businesses they
have performed satisfactorily and in 2003 new supply agreements have been
signed with Texaco and Londis. The petrol network now has a single supplier and
should benefit from a single marketing programme. On 21 March 2003 the Company
announced that an additional freehold petrol station had been acquired and that
commercial leases had been entered into on four other petrol stations. These
stations are in the process of being integrated and administration costs are not
anticipated to increase significantly. There is excess administrative capacity
to take on further stations and reviews are ongoing on a number of options to
acquire further stations.
All aspects of the disposal of the Russian steel assets have been successfully
completed, the final one being the receipt of US$5,000,000 in the first quarter
of 2003 in early settlement of the balance of the deferred consideration of
US$5,500,000 which was partly due in August 2003 and the balance due in August
2004. The Company retains its significant minority shareholding in Europe Steel
plc, which is pursuing a number of opportunities in the steel industry and the
Company will benefit from its share on any financial success of this company.
The Group continues to explore opportunities in the gas supply business,
however, the timing of concluding a deal is still uncertain and is taking longer
than originally envisaged. Meanwhile, the corporate finance work continues in
Russia and in the year under review US$500,000 (#344,000) has been invoiced and
collected.
Conclusion
The initiation, processing and completion of the fundamental changes in the
business and investment operations of the Group in 2002 took up considerable
resources within the Group. Thankfully, these changes have now been totally
completed and it is my view the Group is now in a much stronger financial
position and is in better shape for trading in 2003 and beyond.
I would like to take this opportunity to thank the other Directors and the
Group's staff, both present and past, for their contribution to the operations
through this momentous year.
Farhad Moshiri
Chief Executive
23 April 2003
Consolidated Profit and Loss Account
Year ended 31 December 2002
Restated
2002 2001
Note Unaudited Audited
#000 #000
Turnover
Continuing operations:
ongoing 478 782
-------- --------
acquisitions - Petrol Express Limited and Fuel Up 53,132 -
Limited
-------- --------
53,610 782
Discontinued operations 40,661 125,044
-------- --------
94,271 125,826
Cost of sales (90,910) (121,845)
-------- --------
Gross profit 3,361 3,981
Administrative expenses (3,140) (3,529)
-------- --------
Operating profit
Continuing operations:
ongoing (1,129) (2,061)
acquisitions - Petrol Express Limited and Fuel Up 647 -
Limited
-------- --------
(482) (2,061)
Discontinued operations 703 2,513
-------- --------
Group operating profit 221 452
Share of associated undertakings' operating 78 125
profits
Gain on sale of steel assets 517 -
Gain on sale of properties 26 -
-------- --------
Profit on ordinary activities before interest 842 577
Net interest payable (547) (188)
-------- --------
Profit on ordinary activities before taxation 295 389
Tax charge on profit on ordinary activities (63) (356)
-------- --------
Profit on ordinary activities after taxation 232 33
Equity minority interest (61) -
-------- --------
Retained profit for the financial year 171 33
======== ========
Basic earnings per ordinary share 6 1.6p 0.3p*
======== ========
======== ========
Basic earnings per ordinary share before share of
e-commerce venture's start up costs
6 2.1p 1.8p*
======== ========
Diluted earnings per ordinary share 6 1.5p 0.3p*
======== ========
* rebased for 100 for 1 share consolidation on 12 August 2002.
Statement of retained profits
Restated
2002 2001
Unaudited Audited
#000 #000
Retained profit at 1 January 3,378 3,371
Prior year adjustment - FRS 19 - (126)
-------- -------
Retained profits at 1 January as restated 3,378 3,245
Profit for the year as reported 171 31
Restatement of 2001 for FRS 19 - 2
Currency translation differences on foreign currency (886) 100
net investments
-------- -------
Retained profits at 31 December 2002 and 2001 2,663 3,378
======== =======
Statement of Total Recognised Gains and Losses
Year ended 31 December 2002
Restated
2002 2001
Unaudited Audited
#000 #000
Profit for the financial year 171 31
Currency translation differences on foreign currency net (886) 100
investments
-------- -------
Total gains and losses relating to the year (715) 131
=======
Prior year adjustment (124)
--------
Total gains and losses recognised since last annual (839)
report ========
Consolidated Balance Sheet
31 December 2002
Restated
2002 2001
Note Unaudited Audited
#000 #000
Fixed assets
Intangible assets 4,021 663
Tangible assets 25,295 20
Trade investments 4 13,339
Net investments in associated undertakings 2,205 2,653
Mining leases 10 10
---------- --------
31,535 16,685
---------- --------
Current assets
Stocks 2,149 9,603
Debtors 5,750 4,374
Cash at bank and in hand 5,479 2,959
---------- --------
13,378 16,936
Creditors:
Amounts falling due within one year (10,336) (17,838)
---------- --------
Net current assets/(liabilities) 3,042 (902)
---------- --------
Total assets less current liabilities 34,577 15,783
Creditors:
Amounts falling due after more than one year (11,874) -
Provisions for liabilities and charges (305) -
---------- --------
Total net assets 22,398 15,783
========== ========
Capital and reserves
Called up share capital 2,701 2,701
Share premium account 9,704 9,704
Profit and loss account 2,663 3,378
---------- --------
Total equity shareholders' funds 7 15,068 15,783
Equity minority interests 7,330 -
---------- --------
22,398 15,783
========== ========
Consolidated Cash Flow Statement
Year ended 31 December 2002
Restated
2002 2001
Note Unaudited Audited
#000 #000
Cash inflow/(outflow) from operating activities 8 6,017 (2,257)
Dividends received from associated undertaking 300 257
Returns on investments and servicing of finance (351) 110
Taxation (131) (476)
Net cash (outflow)/inflow from capital expenditure (3,147) 673
and financial investment
Acquisitions and disposals 835 -
-------- -------
Cash inflow/(outflow) before financing 3,523 (1,693)
Financing - Decrease in debt (2,726) (1,781)
-------- -------
Increase/(decrease) in cash 797 (3,474)
======== =======
Reconciliation of Net Cash Flow to Movement in Net
Debt
Restated
2002 2001
Unaudited Audited
#000 #000
Increase/(decrease) in cash in the year ended 31 797 (3,474)
December
Cash outflow from decrease in debt 2,726 1,781
-------- -------
Change in net debt resulting from cash flows 3,523 (1,693)
Debt acquired with subsidiary (7,811) -
Other non-cash movements (2,819) -
Translation difference 44 28
-------- -------
Movement in net debt in the year (7,063) (1,665)
Net debt at 1 January (2,663) (998)
-------- -------
Net debt at 31 December (9,726) (2,663)
======== =======
Notes to the financial information
1. In preparing the financial information for the current year, the Group has
adopted FRS 18 'Accounting Policies' and FRS 19 'Deferred Tax'. The
adoption of FRS 19 has resulted in a change in accounting policy for
deferred tax. Deferred tax is recognised on a full provision basis.
Previously, deferred tax was provided using the liability method, whereby
provisions were made on all timing differences to the extent they were
expected to reverse in the future. The adoption of FRS 19 has decreased the
Group's equity shareholders' funds at 1 January 2002 by #124,000. All prior
period comparatives have been restated accordingly. In addition, the
disclosures in the profit and loss account for the prior year have been
amended to conform with the current year's format. Adoption of FRS 18 has
not required any revisions to the financial information in either the
current or prior years
2. The financial information set out in this announcement does not constitute
the Company's statutory accounts for the years ended 31 December 2002 and
2001. The financial information for the year ended 31 December 2002,
except as noted in 1. above, has been prepared using accounting policies
which are consistent with those adopted in the audited accounts for the
year ended 31 December 2001. The financial information for the year ended
31 December 2001 is derived from the statutory accounts for that year which
have been delivered to the Registrar of Companies. The auditors have
reported on the 2001 accounts; their report was unqualified and did not
contain a statement under section 237 (2) or (3) of the Companies Act 1985.
The auditors have yet to sign their report on the 2002 accounts. The
statutory accounts for the year ended 31 December 2002 will be finalised on
the basis of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of
Companies following the Company's Annual General Meeting. The financial
information set out in this announcement was approved by the Board of
Directors on 23 April 2003.
3. The Directors do not recommend the payment of a dividend.
4. The Group financial information consolidates the financial statements of
the Company and all operating subsidiaries.
5. The profit and loss accounts of overseas subsidiaries have been converted
at the average exchange rates prevailing in the year ended 31 December 2002
.
6. Basic earnings and diluted earnings per ordinary share
The calculation of basic earnings per share is based on profit after taxation
and minority interest of #171,000 (2001 - #33,000#) and on 10,805,392 ordinary
shares (2001 - 10,805,392*), being the weighted average number of ordinary
shares in issue during the year.
The calculation of basic earnings per share before share of an e-commerce
venture's start-up costs of #51,000 (2001 - #159,000) is based on profit after
taxation and minority interest of #222,000 (2001 - #192,000#) and on 10,805,392
ordinary shares (2001 - 10,805,392*), being the weighted average number of
ordinary shares in issue during the year.
The calculation of diluted earnings per share is based on the profit after
taxation and minority interests of #171,000 (2001 - #33,000#) and on 11,064,893
ordinary shares (2001 - 10,864,352*), being the weighted average number of
ordinary shares in issue, dilutive share options and warrants outstanding during
the year.
# restated.
* rebased for 100 for 1 share consolidation on 12 August 2002.
7. Reconciliation of movements in shareholders' funds
2002 2001
Unaudited Audited
#000 #000
Profit for the financial year 171 33
Currency translation differences on foreign currency net (886) 100
investments
--------- ---------
Net (reduction in)/addition to shareholders' funds (715) 133
Opening shareholders' funds 15,783 15,650
--------- ---------
Closing shareholders' funds 15,068 15,783
========= =========
8. Reconciliation of operating profit to cash inflow/(outflow)
from operating activities
2002 2001
Unaudited Audited
#000 #000
Operating profit 221 452
Depreciation and amortisation charges 327 153
Decrease/(increase) in stocks 9,128 (2,977)
Decrease in debtors 93 4,421
Decrease in creditors (3,820) (4,357)
Currency translation differences 68 51
--------- ---------
Cash inflow/(outflow) from operating activities 6,017 (2,257)
========= =========
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