RNS Number:5175N
ATH Resources plc
14 June 2005
Press Release 14 June 2005
ATH Resources plc
("ATH Resources" or "the Group")
Interim Results - Tuesday 14 June 2005
ATH Resources plc, one of the UK's largest coal producers, reports its Interim
Results for the six months ended 3 April 2005.
Highlights
- Sale of 638,000 tonnes of coal produced turnover of #17.1 million
- EBITDA of #3.8 million
- Profit before interest and tax totalled #1.8 million
- Earnings per share of 3.39 pence per share
- Interim dividend of 3.36 pence per share proposed
- Group's permitted reserve base now risen to 6.6 million tonnes from
2.4 million tonnes at 26 September 2004
Commenting on the Interim Results, Tom Allchurch, Chief Executive of ATH
Resources, said: "The last six months have continued the rapid pace of activity
set last year. The Group has now secured additional reserves which should
enable it to grow production during each of the next 5 years. Recent trading
has shown improvement over the same period last year, however severe wet weather
during December and January did limit performance.
"With the purchase of the Grievehill and Glenmuckloch sites now completed, and
our ongoing commitment to developing the reserve base, ATH Resources will
continue to grow in what is an essential constituent of the country's
electricity supply industry."
For further information:
ATH Resources
Tom Allchurch, Chief Executive Tel: +44 (0) 1302 760462
tom@ath.co.uk www.ath.co.uk
Seymour Pierce Limited
Sarah Wharry, Corporate Finance Tel: +44 (0) 20 7107 8000
sarahwharry@seymourpierce.com www.seymourpierce.com
Media enquiries:
Abchurch
Henry Harrison-Topham / Sarah Hollins Tel: +44 (0) 20 7398 7702
henry.ht@abchurch-group.com www.abchurch-group.com
Chairman's Statement
The last six months have continued the rapid pace of activity set last year.
The Group has now secured additional reserves which should enable it to grow
production during each of the next five years. Recent trading has shown
improvement over the same period last year, however severe wet weather during
December and January did limit performance.
Business progress
As reported in my last Annual Review the Group is focused upon increasing the
reserves of the business to secure profitability and growth. In line with this
strategy I am pleased to advise that we have applied for an extension to our
Skares Road site and a new site at Laigh Glenmuir, gained consent for an
extension to our Garleffan site and also concluded the purchase of two new sites
from Scottish Coal.
Consequently the permitted reserve base of the Group has increased from 2.4
million tonnes as at 26 September 2004 to 6.6 million tonnes today.
Trading Results
In the six months to 3 April 2005, turnover of #17.1 million was achieved on
sales of 638,000 tonnes.
EBITDA was #3.8 million with operating profit of #1.8 million. Earnings per
share were 3.39p and the Board is proposing an interim dividend of 3.36p per
share payable on 22 July 2005.
The results for the six months, although better than the same period last year,
were affected by three factors:
I. The exceptional wet weather over the Christmas holiday and early January,
which resulted in Carlisle being flooded, also hit our sites with the
excavations being inundated with water. This caused operations to be
restricted as the bottom coal seams, which had been exposed prior to the
Christmas holiday period ready for lifting, were under water for some
weeks.
II. The price of gas oil, which is closely aligned with crude oil, increased
substantially. However, wherever possible this extra cost has been passed
on to those customers not under contract.
III. Plant availabilities had suffered during the preceding year due to the poor
performance of the main supplier of plant to the Group. However, new
arrangements have yielded a solution which will now maintain an acceptable
level of availability across the plant fleet. In addition, a significant
order for new dumptrucks has been placed with an alternative supplier,
which will ensure that we operate a modern and cost efficient plant fleet.
Business progress
The Group continues to pursue a number of development prospects which will lead
to the submission of further planning applications during the coming six months.
In France drilling has been undertaken at Commentary and will shortly commence
at Bertholene in order to assess quality and design parameters of the sites.
The development of these sites is being progressed through the planning system
with an environment assessment due to commence shortly at Commentary.
Staff
The period since the listing of the Group has been a very busy time and it is
only through the hard work and dedication of the employees of the Group that I
am able to report on the positive progress that we have achieved in the
relatively short time as a plc and for which I am very grateful.
Outlook
With the purchase of the Grievehill and Glenmuckloch sites now completed, and
our ongoing commitment to developing the reserve base, ATH Resources will
continue to grow in what is an essential constituent of the country's
electricity supply industry.
David Port
Chairman
7 June 2005
Consolidated profit and loss account
For the six months ended 3 April 2005
Unaudited Unaudited Audited
six months period period
ended ended ended
3 April 28 March 26 September
2005 2004 2004
# # #
Turnover 17,099,741 13,455,300 31,390,930
Cost of sales (13,514,538) (12,033,303) (27,267,466)
Gross profit 3,585,203 1,421,997 4,123,464
Administrative expenses (1,846,727) (1,500,535) (3,335,071)
Other operating income 39,000 92,172 578,625
Operating profit 1,777,476 13,634 1,367,018
Interest payable and similar charges (333,783) (558,132) (1,115,920)
Interest receivable 13,192 3,347 13,535
Profit on ordinary activities before taxation 1,456,885 (541,151) 264,633
Tax on profit on ordinary activities (446,960) (34,252) (174,432)
Profit on ordinary activities after taxation 1,009,925 (575,403) 90,201
Dividends paid (1,000,278) - -
Retained profit for the period 9,647 (575,403) 90,201
Earnings per share 3.39p (4.04)p 0.44p
The profit on ordinary activities before taxation arises from the Group's
operations, all of which were acquired on 28 November 2003 and which are
continuing.
There are no recognised gains and losses other than as stated in the profit and
loss account.
Consolidated balance sheet
As at 3 April 2005
Unaudited Unaudited Audited
as at as at as at
3 April 28 March 26 September
2005 2004 2004
# # #
Fixed assets
Goodwill 1,709,180 1,906,392 1,807,784
Tangible fixed assets 15,777,187 16,947,511 15,537,095
Investments 2 2 2
17,486,369 18,853,905 17,344,881
Current assets
Stocks 5,777,314 5,669,112 5,007,841
Debtors 8,982,824 10,292,917 8,115,563
Cash at bank - 960,078 2,525,196
14,760,138 16,922,107 15,648,600
Creditors: amounts falling due within one year (10,001,391) (24,176,448) (11,080,880)
Net current assets/(liabilities) 4,758,747 (7,254,341) 4,567,720
Total assets less current liabilities 22,245,116 11,599,564 21,912,601
Creditors: amounts falling due after more than one year (4,228,627) (4,938,000) (4,010,044)
Provisions for liabilities and charges (6,366,660) (7,136,967) (6,262,090)
Net assets 11,649,829 (475,403) 11,640,467
Capital and reserves
Called up share capital 148,851 100,000 148,851
Share premium account 11,401,415 - 11,401,415
Profit and loss account 99,563 (575,403) 90,201
Equity shareholders' funds 11,649,829 (475,403) 11,640,467
Consolidated cash flow statement
For the six months ended 3 April 2005
Unaudited Unaudited Audited
six months period period
ended ended ended
3 April 28 March 26 September
Notes 2005 2004 2004
# # #
Net cash from operating activities 3 2,163,960 5,439,559 8,677,466
Returns on investment and servicing of
finance
Interest received 13,192 3,347 13,535
Interest paid (149,317) (89,563) (655,513)
Interest element of finance leases (183,290) (90,575) (274,182)
(319,415) (176,791) (916,160)
Taxation paid (330,088) - (668,796)
Capital expenditure
Payments to acquire tangible fixed
assets (357,275) (1,699,400) (514,712)
Receipts from sales of tangible fixed
assets 242,000 - 575,813
Acquisitions
Net overdraft - (1,626,037) (1,626,037)
Purchase of business (3,125,000) (4,035,000) (5,835,000)
(3,240,275) (7,360,437) (7,399,936)
Equity dividends paid (1,000,278) - -
Cash flow before financing (2,726,096) (2,097,669) (307,426)
Financing
Issue of ordinary shares - 43,750 11,494,016
New secured loan - 3,000,000 3,000,000
Repayment of secured loans (25,000) (525,000) (3,050,000)
Issue of loan notes - 1,480,530 1,480,530
Repayment of loan notes - - (7,331,280)
Capital element of finance lease payments (1,840,506) (941,533) (2,760,644)
(1,865,506) 3,057,747 2,832,622
(Decrease)/increase in cash 5 (4,591,602) 960,078 2,525,196
Notes to the interim report
For the six months ended 3 April 2005
1. Preparation of unaudited interim report
The unaudited interim report has been prepared on the basis of the
accounting policies set out in the Group's 26 September 2004 statutory
financial statements. The interim report was approved by the Board of
Directors on 7 June 2005. The figures for the period ended 26 September
2004 have been extracted from the financial statements for that year which
have been filed with the Registrar of Companies. The auditors' report on
those financial statements was unqualified and did not contain any
statement under Section 237 (2) or (3) of the Companies Act 1985.
The Group has drawn up its accounts for the 27 week period ended 3 April
2005. The prior periods are prepared from the date of incorporation of the
Group on 10 October 2003 to the respective period end dates.
Fixed assets have been reclassified such that all mining related assets are
now disclosed within tangible fixed assets. There have been no changes to
the accounting policies of the Group, and therefore the results for the
previous periods have not been altered by this reclassification.
2. Earnings per share
Basic earnings per share is calculated by reference to the weighted average
number of ordinary shares in issue during the period of 29,770,176 (28
March 2004: 14,235,294, 26 September 2004: 20,302,635) and the profit after
taxation. There is no difference between basic earnings per share and
diluted earnings per share.
3. Reconciliation of operating profit to operating cash flows
Unaudited Unaudited Audited
six months period period
ended ended ended
3 April 28 March 26 September
2005 2004 2004
# # #
Operating profit 1,777,476 13,634 1,367,018
Depreciation charge 1,997,977 2,017,144 5,076,691
Profit on disposal of fixed assets (20,341) - (88,570)
(Increase)/decrease in stock (769,473) 1,047,322 1,708,593
Increase in debtors (867,261) (6,770,327) (3,925,856)
Decrease in creditors and provisions 45,582 9,131,786 4,539,590
Net cash inflow from operating activities 2,163,960 5,439,559 8,677,466
4. Analysis of net debt
Audited Unaudited
as at as at
26 September Non-cash 3 April
2004 Cash flow changes 2005
# # # #
Cash at bank and in hand 2,525,196 (4,591,602) - (2,066,406)
Debt due within one year (50,000) - - (50,000)
Debt due beyond one year (344,500) 25,000 - (319,500)
Finance leases and hire purchase
contracts (5,304,504) 1,840,506 (3,353,850) (6,817,848)
1,865,506
(3,173,808) (2,726,096) (3,353,850) (9,253,754)
5. Reconciliation of net cash flow to movement in net debt
Unaudited Unaudited Audited
six months period period
ended ended ended
3 April 28 March 26 September
2005 2004 2004
# # #
(Decrease)/increase in cash in the period (4,591,602) 960,078 2,525,196
Cash inflow from increase in debt and lease financing 1,865,506 (3,013,997) 8,661,394
Change in net debt resulting from cash flow (2,726,096) (2,053,919) 11,186,590
Net debt acquired with subsidiary - (4,237,348) (4,237,348)
New debt issued - (5,850,750) (5,850,750)
New finance leases and hire purchase contracts (3,353,850) (1,471,243) (4,272,300)
Movement in net debt in the period (6,079,946) (13,613,260) (3,173,808)
Net debt brought forward (3,173,808) - -
Net debt carried forward (9,253,754) (13,613,260) (3,173,808)
6. Copies of the interim report
Copies of the interim report will be posted to shareholders in due course
and are available from the Company's Head Office at: Richmonds House, White
Rose Way, Doncaster DN4 5JH.
This information is provided by RNS
The company news service from the London Stock Exchange
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