TIDMLBE
RNS Number : 1285C
Longboat Energy PLC
06 February 2020
6 February 2020
Longboat Energy plc
("Longboat Energy", "the Company" or "Longboat")
Final Results for the Year ended 31 December 2019
Longboat Energy, established by the former management team of
Faroe Petroleum plc to build a significant North Sea-focused
E&P business, announces its preliminary results for the period
from incorporation on 28 May 2019 to 31 December 2019.
Operational and strategy update
Since Longboat was admitted to AIM on 28 November 2019, the
Directors' time and resources have been fully deployed in meeting
the Company's investment objective to create a full-cycle North Sea
E&P company in order to deliver value to shareholders.
The Company's Board of Directors has excellent relationships
across the North Sea oil and gas industry, which the Company
intends to use in order to access attractive bi-lateral deal
opportunities.
The Company is targeting an initial acquisition that will
deliver near term cashflow as well as provide an appropriate
platform upon which to achieve the Company's investment objectives.
Initial acquisition targets are expected to be:
-- located offshore Norway and the UK or the wider EEA region;
-- producing and/or near producing assets, providing cash flows
to fund organic growth with robust economics, sustainable in a low
oil price environment;
-- assets with identifiable upsides via organic growth through
further field investment (infill drilling etc.), potential
near-field exploration and with follow on opportunities to deliver
a hub strategy;
-- assets with aligned partnerships where the Company can influence and optimise operations; and
-- assets where the management team's experience is valued by
the other licence partners and the authorities and can be exploited
to add value.
The North Sea oil and gas industry has been experiencing an
extended period of significant consolidation and the assets that
are being targeted are typically non-core to existing large E&P
companies, and where the Directors believe that the investment
objectives of the Company to create significant value can be met.
The Company's investment objectives are intended to be
achieved:
-- through geological expertise, technical knowledge and
understanding in addition to deep experience across the E&P
life cycle;
-- through cost reductions and targeted investments in the assets to be acquired; and
-- by focusing on assets that have the potential to provide material upside to Longboat Energy.
The Company aims to deliver value by applying the business model
of growing production and reserves through value creative M&A
combined with exploration. Longboat will focus on 'near field'
exploration with access to infrastructure and de-risking through
nearby discoveries.
The Company's Annual Report & Accounts to 31 December 2019
will be posted to shareholders in due course.
Helge Hammer, Chief Executive of Longboat Energy, said:
"We are currently evaluating a number of deal opportunities
which may prove to be suitable acquisition candidates. A key
objective for any acquisition will be a focus on investments where
we believe we can facilitate growth and unlock inherent value.
"We look forward to updating the market on this process at the
appropriate time."
Enquiries:
Longboat Energy via FTI
Helge Hammer, Chief Executive Officer
Jon Cooper, Chief Financial Officer
Stifel (Nomad) Tel: +44 20 7710 7600
Callum Stewart
Jason Grossman
Nicholas Rhodes
Ashton Clanfield
FTI Consulting (PR adviser) Tel: +44 20 3727 1000
Ben Brewerton
Sara Powell longboatenergy@fticonsulting.com
Results
The Company's loss after taxation for the period from
incorporation to 31 December 2019 was GBP196,301. In the period to
31 December 2019, the Company recorded no revenue and incurred
GBP198,051 of administrative and operating expenses. During the
period the Company raised GBP10m (before transaction costs) by way
of share issues, including GBP9.5m through the Company's Initial
Public Offering as detailed in note 16 to the financial statements.
Transaction costs associated with share issues totalled GBP741,340.
At the period end the Company held a cash balance of
GBP9,201,692.
Dividends
It is the Board's policy that the Company should seek to
generate capital growth for its shareholders but may recommend
distributions at some future date when the investment portfolio
matures, and production revenues are established and when it
becomes commercially prudent to do so
Statement of going concern
The financial statements of Longboat Energy plc have been
prepared on a going concern basis.
Outlook
The initial focus of the Directors is to identify, secure and
finance a first acquisition that will deliver asset(s) that are
able to meet the Company's investment criteria (including near term
cashflow) as well as provide an appropriate basis to build on the
Company's investment objectives. In parallel, the Board will
continue to focus on seeking additional opportunities for
generating shareholder returns in the medium and long-term beyond
the first acquisition.
Statement of losses
for the Period 28 May 2019 to 31 December 2019
Notes Period
28 May 19
to 31 Dec
19
GBP
CONTINUING OPERATIONS -
Revenue
Administrative expenses (198,051)
Other operating expenses -
----------
OPERATING LOSS (198,051)
Finance income 7 1,750
----------
LOSS BEFORE INCOME TAX 8 (196,301)
----------
Income tax 10 -
----------
LOSS FOR THE PERIOD (196,301)
----------
Loss per share expressed in pence per
share:
Basic 11 (9.52)
Diluted (9.52)
All profits and losses arise from continuing activities.
There were no items of other comprehensive income in the period
therefore no statement of comprehensive income has been
prepared.
Statement of financial position
As at 31 December 2019
Notes 31 Dec 19
GBP
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 12 2,245
Investments 13 2,540
---------
4,785
---------
CURRENT ASSETS
Trade and other receivables 15 83,104
Cash and cash equivalents 9,201,692
---------
9,284,796
---------
TOTAL ASSETS 9,289,581
---------
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 16 1,000,000
Share premium 17 7,808,660
Other reserves 17 450,000
Retained earnings 17 (196,301)
---------
TOTAL EQUITY 9,062,359
---------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 18 227,222
---------
TOTAL LIABILITIES 227,222
---------
TOTAL EQUITY AND LIABILITIES 9,289,581
---------
The financial statements were approved by the board of directors
and authorised for issue on 5 February 2020 and are signed on its
behalf by:
Helge Hammer Director
5 February 2020
Statement of changes in equity
for the Period 28 May 2019 to 31 December 2019
Called up share Share Other Retained Total equity
capital premium reserves earnings
-------------------
GBP GBP GBP GBP GBP
------------------- ------------------------- ------------------ ------------------ ---------------- ------------
On incorporation 1 - - - 1
Issue of share
capital 229,999 270,000 - - 499,999
Share buy-back
and cancellation
of share premium (180,000) (270,000) 450,000 - -
Initial Public
Offering 950,000 8,550,000 - - 9,500,000
Costs of share
issue - (741,340) - (741,340)
Total
comprehensive
expense - - - (196,301) (196,301)
------------------------- ------------------ ------------------ ---------------- ------------
Balance at 31
December
2019 1,000,000 7,808,660 450,000 (196,301) 9,062,359
------------------------- ------------------ ------------------ ---------------- ------------
Statement of cash flows
for the Period 28 May 2019 to 31 December 2019
Notes Period 28 May
19
to 31 Dec 19
GBP
Loss before income tax (196,301)
Finance income 7 (1,750)
Increase in trade and other receivables 15 (83,104)
Increase in trade and other payables 18 220,444
-----------------------------
Cash absorbed by operations (60,711)
Cash flows from investing activities
Purchase of tangible fixed assets 12 (2,245)
Purchase of fixed asset investments 13 (2,540)
Intercompany Loan -
Interest received 1,750
-----------------------------
Net cash used in investing activities (3,035)
Cash flows from financing activities
Share issue (net of issue costs) 17 9,258,660
-----------------------------
Net cash from financing activities 9,258,660
-----------------------------
Increase in cash and cash equivalents 9,194,914
Cash and cash equivalents at beginning -
of period
-----------------------------
Cash and cash equivalents at end
of period 9,194,914
-----------------------------
Relating to:
Bank balances and short-term deposits 9,201,692
Bank overdrafts (6,778)
-----------------------------
9,194,914
-----------------------------
Notes to the financial statements
for the Period 28 May 2019 to 31 December 2019
1. Statutory information
Longboat Energy plc is a public limited company, limited by
shares, registered in England and Wales. The company's registered
number is 12020297 and registered office address 5(th) Floor, One
New Change, London, England, EC4M 9AF
2. Accounting policies Basis of preparation
The financial statements of Longboat Energy plc and the Company
have been prepared in accordance with International Financial
Reporting Standards (IFRS) adopted for use in the European Union
and in accordance with the Companies Act 2006.
The financial information for the year ended 31 December 2019
set out in this announcement does not constitute the Company's
statutory financial statements for the year ended 31 December 2019
but is extracted from the audited financial statements. The
statutory financial statements for 2019 will be delivered to the
Registrar of Companies in due course.
The auditors have reported on the financial statements for the
year ended 31 December 2019 and their report was unqualified. The
report did not contain statements under section 498 (2) or (3) of
the Companies Act 2006.
While the financial information included in this preliminary
announcement has been prepared in accordance with the recognition
and measurement criteria of International Financial Reporting
Standards (IFRSs and IFRIC interpretations) issued by the
International Accounting Standards Board and as endorsed for use in
the European Union, and with those parts of the Companies Act 2006
applicable to companies preparing their accounting under IFRS, this
announcement does not itself contain sufficient information to
comply with IFRSs.
The principal accounting policies adopted in the preparation of
the financial information in this announcement are set out in the
Company's full financial statements for the year ended 31 December
2019.
The financial statements have been prepared on the historical
cost basis.
Going concern
The directors, having made due and careful enquiry and preparing
forecasts, are of the opinion that the company has adequate working
capital to execute its operation over the next 12 months. The
directors, therefore, have made an informed judgement, at the time
of approving the financial statements, that there is a reasonable
expectation that the company has adequate resources to continue in
operational existence for the foreseeable future. As a result, the
directors have continued to adopt the going concern basis of
accounting in preparing the annual financial statements.
Property, plant and equipment
Depreciation is provided at the following annual rates in order
to write off the cost less estimated residual value of each asset
over its estimated useful life.
Computer Equipment 33.33% straight line
Financial instruments
A financial instrument is a contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity. Financial assets and liabilities
comprise non-derivative and derivative receivables and
payables.
Classification: Financial assets
The Company classifies financial assets in the following
measurement categories:
-- financial assets subsequently measured at fair value (either
through other comprehensive income or through profit or loss),
and
-- financial assets measured at amortised cost.
The Company has no financial assets subsequently measured at
fair value through other comprehensive income or through profit or
loss.
Classification depends on the business model used for managing
financial assets and on the characteristics of the contractual cash
flows involved.
All financial assets held by the Company, have contractual cash
flows representing solely the payment of principal and interest.
The Company holds all these assets to collect the contractual cash
flows. These assets are classified as held at amortised cost.
Classification: Financial liabilities
Financial liabilities other than derivatives are classified as
measured at amortised cost. The Company has no derivatives.
Measurement on initial recognition
A financial asset or financial liability is initially measured
at its fair value, plus, in the case of a financial asset or
financial liability not subsequently measured at fair value through
profit or loss, the transaction costs directly attributable to the
acquisition of the asset or issuing of the liability.
Transaction costs of financial assets measured at fair value
through profit or loss are recognised as an expense in the income
statement.
The fair value is defined as the amount for which an asset could
be exchanged, or a liability settled, between knowledgeable,
willing parties in an arm's length transaction.
Subsequent measurement
The subsequent measurement of debt instruments depends on the
classification of the financial asset or liability, described
above.
Financial assets and liabilities measured at amortised cost are
accounted for using the effective interest rate method. Interest
income and expense is reported as financial income and expense.
Gains or losses arising on the derecognition of the financial asset
or liability are recognised directly in profit or loss as other
operating income/expense together with foreign currency gains and
losses.
Impairment
Trade receivables and other receivables are measured and carried
at amortised cost using the effective interest method, less any
impairment.
The carrying amount is reduced by the expected lifetime losses.
The Company does not hold other financial assets for which an
expected credit loss would be material to record.
Taxation
Taxation, comprised of current and deferred tax, is charged or
credited to the income statement unless it relates to items
recognised in other comprehensive income or directly in equity. In
such cases, the related tax is also recognised in other
comprehensive income or directly in equity.
Current tax liabilities are measured at the amount expected to
be paid, based on tax rates and laws that are enacted or
substantively enacted at the balance sheet date.
Deferred tax is accounted for using the balance sheet liability
method and is calculated using rates of taxation enacted or
substantively enacted at the balance sheet date which are expected
to apply when the asset or liability is settled.
Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets are only
recognised to the extent that it is probable that taxable profits
will be available against which deductible temporary differences
can be utilised. Deferred tax is not recognised in respect of
investments in subsidiaries and associates where the reversal of
any taxable temporary differences can be controlled and are
unlikely to reverse in the foreseeable future. Deferred tax assets
and liabilities are offset when there is a legally enforceable
right to offset and there is an intention to settle the balances on
a net basis.
Tax provisions are recognised when there is a potential exposure
under changes to International tax legislation.
Foreign currencies
Assets and liabilities in foreign currencies are translated into
sterling at the rates of exchange ruling at the statement of
financial position date. Transactions in foreign currencies are
translated into sterling at the rate of exchange ruling at the date
of transaction. Exchange differences are taken into account in
arriving at the operating result.
Leases
All leases are accounted for by recognising a right-of-use asset
and a lease liability except for:
- Leases of low value assets; and
- Leases with a duration of 12 months or less.
Lease liabilities are measured at the present value of the
contractual payments due to the lessor over the lease term, with
the discount rate determined by reference to the rate inherent in
the lease unless (as is typically the case) this is not readily
determinable, in which case the Company's incremental borrowing
rate on commencement of the lease is used. Variable lease payments
are only included in the measurement of the lease liability if they
depend on an index or rate. In such cases, the initial measurement
of the lease liability assumes the variable element will remain
unchanged throughout the lease term. Other variable lease payments
are expensed in the period to which they relate.
On initial recognition, the carrying value of the lease
liability also includes:
- amounts expected to be payable under any residual value
guarantee;
- the exercise price of any purchase option granted in favour of
the group if it is reasonable certain to assess that option;
- any penalties payable for terminating the lease, if the term
of the lease has been estimated on the basis of termination option
being exercised.
Right of use assets are initially measured at the amount of the
lease liability, reduced for any lease incentives received, and
increased for:
- lease payments made at or before commencement of the
lease;
- initial direct costs incurred; and
- the amount of any provision recognised where the Company is
contractually required to dismantle, remove or restore the leased
asset.
Subsequent to initial measurement lease liabilities increase as
a result of interest charged at a constant rate on the balance
outstanding and are reduced for lease payments made. Right-of-use
assets are amortised on a straight-line basis over the remaining
term of the lease or over the remaining economic life of the asset
if, rarely, this is judged to be shorter than the lease term.
Reserves
A description of each of the reserves follows:
Share capital
Share capital represents the nominal value of shares issued less
the nominal value of shares repurchased and cancelled.
Share Premium
This reserve represents the difference between the issue price
and the nominal value of shares at the date of issue, net of
related issue costs and share premium cancelled.
Retained Earnings
Net revenue profits and losses of the Company which are revenue
in nature are dealt with in this reserve.
Other reserve
Other reserves relate to the nominal value of share capital
repurchased and cancelled.
3. Adoption of new and revised standards and changes in
accounting policies
Standards issued but not yet effective
At the date of authorisation of these financial statements, the
Company has not applied the following standards that have been
issued but are not yet effective. The Company has not adopted any
new or amended standards early.
Effective
date:
IFRS 17 Insurance Contracts 1 January
2021
IFRS 10 and IAS Sale or Contribution of Assets between No date set
28 (Amendments) an Investors and its Associate or
Joint Venture
IFRS 3 (Amendments) Definition of a business 1 January
2020
IAS 1 and IAS Definition of material 1 January
8 (Amendments) 2020
Conceptual Framework Amendments to References to the Conceptual 1 January
Framework in IFRS Standards 2020
In October 2018, the International Accounting Standards Board
(Board) issued Definition of a Business (Amendments to IFRS 3) to
make it easier for companies to decide whether activities and
assets they acquire are a business or merely a group of assets. The
amendments:
-- confirmed that a business must include inputs and a process, and clarified that:
- the process must be substantive; and
- the inputs and process must together significantly contribute to creating outputs.
-- narrowed the definitions of a business by focusing the
definition of outputs on goods and services provided to customers
and other income from ordinary activities, rather than on providing
dividends or other economic benefits directly to investors or
lowering costs; and
-- added a test that makes it easier to conclude that a company
has acquired a group of assets, rather than a business, if the
value of the assets acquired is substantially all concentrated in a
single asset or group of similar assets.
The amendment is effective for periods beginning on or after 1
January 2020. It has yet to be endorsed for application in the
European Union. Given the acquisition strategy of the Company these
amendments may have a significant impact on the accounting
treatment for future acquisitions.
Other changes to standards, interpretations and amendments
issued but not yet effective are not expected to have a material
impact on the Company financial statements.
4. Critical accounting estimates
In the application of the company's accounting policies, the
directors are required to make judgements, estimates and
assumptions about the carrying amount of assets and liabilities
that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised, if the revision
affects only that period, or in the period of the revision and
future periods if the revision affects both current and future
periods.
Cost allocation
In accordance with IFRS the costs of the IPO that involves both
issuing new shares and a stock market listing was accounted for as
follows:
-- Incremental costs that are directly attributable to issuing
new shares should be deducted from equity (net of any income tax
benefit)
-- Costs that relate to the stock market listing, or are
otherwise not incremental and directly attributable to issuing new
shares, have been recorded as an expense in the statement of
comprehensive income.
Judgment was required in assessing the nature of certain costs
such as legal and professional fees to determine the extent to
which such costs were attributable to the new shares issued or the
listing and management assessed the underlying nature of the
services in assessing the allocation.
5. Employees and directors
GBP
------------------------ --------
Wages and salaries 52,163
Social security costs 6,504
Other pension costs 3,447
--------
62,114
--------
The average number of employees during the period was as
follows:
Number
-------------------------- --------
Executive Directors 2
Non-Executive Directors 4
Staff 1
--------
7
--------
6. Directors remuneration
The emoluments of the individual Directors for the period are
included in wages and salaries and were as follows:
Salary Pension Total
GBP GBP GBP
Executive Directors
Helge Hammer 12,575 1,397 13,972
Jonathan Cooper 10,060 1,118 11,178
Non-executive Directors
Brent Cheshire 5,216 - 5,216
Katherine Roe 4,471 - 4,471
Jorunn Saetre 3,726 - 3,726
Graham Stewart 7,732 - 7,732
Total 43,780 2,515 46,295
The Executive Directors entered into service agreements with the
Company on 28 November 2019, the date of Admission to AIM.
Pursuant to letters of appointment dated 28 November 2019, the
Non-executive Directors of the Company were appointed as of that
date and on an ongoing basis. Each Non-executive Director is
entitled to an annual fee, including in respect of any service on
any Board committee.
As stated at the time of Admission to AIM, the Remuneration
Committee will, at the time of making the first acquisition,
undertake an executive salary benchmarking exercise for the
purposes of determining what shall constitute a competitive market
salary and pension contribution for the Executive Directors.
7. Net finance income
GBP
-------------------------- -----
Finance Income
Deposit account interest 1,750
-----
8. Loss before income tax
The loss before income tax is state after charging:
GBP
------------------------------------- ------
Administrative expenses
Auditor remuneration 8,000
Executive Director's remuneration 22,635
Wages 8,383
Pensions 3,447
Social security 6,504
Operating leases 9,500
Non-Executive Director remuneration 21,145
9. Auditors' remuneration
GBP
---------------------------------------------------------- -----
Fees payable to the Company's auditors for the audit
of the Company's accounts 8,000
During the period the auditor provided non-audit services of
GBP15,000 in their role as Reporting Accountant in relation
to the Company's Admission to AIM.
10. Income tax
Analysis of tax expense
No liability to UK corporation tax arose for the period.
Unused tax losses on which no deferred tax has been recognised
as at 31 December 2019 was GBP299,105 and the potential tax benefit
will be GBP56,830. Deferred tax assets, including those arising
from temporary differences, are recognised only when it is
considered more likely than not that they will be recovered, which
is dependent on the generation of future assessable income of a
nature and of an amount sufficient to enable the benefits to be
utilised.
Reconciliation of tax charge
Loss on ordinary activities before taxation (196,301)
Tax on loss on ordinary activities at standard
CT rate of 19.00% (37,297)
Effects of:
Expenses not deductible for tax purposes 8,321
Adjust closing mainstream unrecognized deferred
tax to average rate of 19.00% 363
Adjust closing ring fence unrecognized deferred
tax to average rate of 19.00% (28,217)
Deferred tax not recognised 56,830
----------
Tax charge/(credit) for the period -
----------
11. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the period.
Diluted loss per share is calculated using the weighted average
number of shares adjusted to assume the conversion of all dilutive
potential ordinary shares of which there are currently none in
issue.
Reconciliations are set out below.
Weighted
average Per share
Loss number of amount
GBP shares p
Basic and diluted LPS
Loss attributable to ordinary shareholders (196,301) 2,062,213 (9.52)
12. Property, plant and equipment
Computer
equipment
GBP
COST
Additions 2,245
At 31 December 2019 2,245
--------------
NET BOOK VALUE
At 31 December 2019 2,245
--------------
No depreciation was charged in the period ended 31 December 2019
due to assets being purchased part way through December 2019.
Depreciation will be charged from the first full month of ownership.
13. Investments
Shares in company
undertakings
GBP
COST
Additions 2,540
At 31 December 2019 2,540
-----------------
NET BOOK VALUE
At 31 December 2019 2,540
-----------------
The Company or the company's investments at the Statement of
Financial Position date in the share capital of companies include
the following:
Subsidiary
Longboat Energy Norge AS (company number 924 186 720), with a
registered office at c/o Kluge Advokatfirma, Laberget 24, 4020,
Stavanger, Norway. The company was incorporated on 5 December
2019.
Holding
----------------------------------------------------
%
---------------------------------------------------- --------------------
Class of shares:
Ordinary 100.00
The company has taken advantage of the exemption under the Companies
Act 2006 s405 not to consolidate this subsidiary as it has been
dormant from the date of incorporation and is not material for
the point of giving a true and fair view.
14. Financial risk management
The Company is exposed to financial risks through its various
business activities. In particular, changes in interest rates
exchange rates can have an effect on the capital, financial and
revenue situation of the Company. In addition, the Company is
subject to credit risks.
The Company has adopted internal guidelines, which concern risk
control processes and which regulate the use of financial
instruments and thus provide a clear separation of the roles
relating to operational financial activities, their implementation
and accounting, and the auditing of financial instruments. The
guidelines on which the Company's risk management processes are
based are designed to ensure that the risks are identified and
analysed across the Company. They also aim for a suitable
limitation and control of the risks involved, as well as their
monitoring.
The Company controls and monitors these risks primarily through
its operational business and financing activities.
Credit Risks
The credit risk describes the risk from an economic loss that
arises because a contracting party fails to fulfil their
contractual payment obligations. The credit risk includes both the
immediate default risk and the risk of credit deterioration,
connected with the risk of the concentration of individual risks.
For the Company, credit and default risks are concentrated in the
financial institutions in which it places cash deposits.
The Company's policy is to place its cash with reputable
clearing banks. The Company's cash is deposited with one bank with
a credit rating of AA-.
Notwithstanding existing collateral, the amount of financial
assets indicates the maximum default risk in the event that
counterparties are unable to meet their contractual payment
obligations. The maximum credit default risk amounted to
GBP9,254,796 at the balance sheet date, of which GBP9,201,692 was
cash on deposit at banks.
Liquidity Risks
Liquidity risk is defined as the risk that a company may not be
able to fulfil its financial obligations. The Company manages its
liquidity by maintaining cash and cash equivalents sufficient to
meet its expected cash requirements to implement its investment
policy. In the event that there is a risk that the cash required to
follow the investment policy is greater than the Company's liquid
resources, the Company would seek confirmation of the continuation
of the policy and the raising of further financing at a shareholder
general meeting.
At 31 December 2019, the Company has cash on deposit of
GBP9,201,692.
Market Risks
Interest Rate Risks
Interest rate risks exist due to potential changes in market
interest rates and can lead to a change in the fair value of
fixed-interest bearing instruments, and to fluctuations in interest
payment for variable interest rate financial instruments.
The Company is exposed to interest rate risk on cash held on
deposit at banks. Interest income for the period to 31 December
2019 was GBP1,750. These accounts are maintained for liquidity
rather than investment, and the interest rate risk is not
considered material to the Company.
Currency Risks
The Company operates in the UK, incurs expenses predominantly in
sterling and NOK, and holds cash in sterling and NOK. The Company
incurs some expenditure in foreign currency when the investment
policy requires services to be obtained overseas and when its NOK
balances are retranslated into GBP at period ends. The foreign
exchange risk on these costs is not considered material to the
Company.
15. Trade and other receivables
GBP
----------------- ------
VAT recoverable 45,060
Prepayments 38,044
83,104
------
The directors consider that the carrying amount of trade and
other receivables approximates to their fair value.
16. Called up share capital
Allotted and issued ordinary shares of ten pence each ('Ordinary
Shares'):
Number Class Nominal value GBP
------------ ---------- ------------- -----------
10,000,000 Ordinary GBP0.10 1,000,000
Share capital history over the period:
-- On incorporation on 28 May 2019, one subscriber share with a
nominal value of GBP1.00 was issued
-- On 3 September 2019 the subscriber share of GBP1.00 was
subdivided into 10 Ordinary Shares and a further 999,990 Ordinary
Shares were issued at par
-- On 23 October 2019 1,000,000 Ordinary Shares were issued at par
-- On 25 November 2019 300,000 Ordinary Shares were issued at a
premium of 90p per Ordinary Share and from the total Ordinary
Shares in issue (2,300,000 Ordinary Shares), 1,800,000 Ordinary
Shares were repurchased, cancelled and transferred to other
reserves leaving 500,000 Ordinary Shares in issue with total
subscription monies of GBP500,000 (which was carried out in order
to ensure that the founders' subscription price for Ordinary Shares
was equal to the price paid by the new subscribers in the initial
public offering i.e. GBP1.00 per share).
-- On 25 November 2019 a capital reduction was undertaken to
convert GBP270,000 of share premium to other reserves.
-- On 28 November 2019 9,500,000 Ordinary Shares were allotted
to the new subscribers at a premium of 90p per Ordinary Share
17. Reserves
Company Retained Share premium Other reserves Total
earnings GBP GBP GBP
GBP
------------------ ---------- -------------- --------------- ----------
Deficit for the
period (196,301) - - (196,301)
Cash share issue
/ IPO - 8,550,000 450,000 9,000,000
Costs of share
issue - (741,340) - (741,340)
---------- -------------- --------------- ----------
(196,301) 7,808,660 450,000 8,062,359
---------- -------------- --------------- ----------
18. Trade and other payables
GBP
-------------------------------------------------------- ------------
Current:
Trade creditors 94,452
Social security and other taxes 6,504
Other creditors 62,389
Accrued expenses 63,877
227,222
------------
The directors consider that the carrying amount of trade payables
approximates to their fair value
19. Leasing agreements
Minimum lease payments fall due as follows:
Company Non-cancellable operating
leases
GBP
Within one year 45,600
The leases have a term of less than 12 months.
20. Related party transactions
Members of the Board of Directors are deemed to be key
management personnel. Key management personnel compensation for the
financial period is the same as the Director remuneration set out
in note 6 to the accounts.
Directors' and the Company Secretary's interests in the shares
of the Company, including family interests, were as follows:
Ordinary shares
Helge Hammer 300,000
Jonathan Cooper 125,000
Graham Stewart 150,000
Jorunn Saetre 25,000
Julian Riddick 100,000
There were no other transactions or balances with related
parties in the period.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR UPUUGPUPUPGA
(END) Dow Jones Newswires
February 06, 2020 02:00 ET (07:00 GMT)
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