TIDMNOVA

RNS Number : 9865S

Nova Resources Limited

30 September 2014

30 September 2014

Nova Resources Limited

("Nova" or the "Company")

Interim results for the period ended 30 June 2014

The Board of Nova Resources Limited (AIM: NOVA), is pleased to announce the Company's interim results for the six months to 30 June 2014.

Enquiries:

Nova Resources Limited +65 6236 2985

Chan Fook Meng, Chairman and CEO

   Daniel Stewart & Company plc (Nominated Advisor & Broker)            +44 20 7776 6550 

Emma Earl / Alex Brearley

Chairman's Statement

I have pleasure in presenting our interim report for the period to 30 June 2014.

We have incurred a loss for the period of GBP2,487,000, which relates largely to ongoing developments with our investments. Specifically, the majority of this loss related to a re-valuation of the Company's holdings of warrants over shares in the share capital of Tricor Plc ("Tricor").

We issued a GBP30,000 convertible loan note in January 2014 for cash, for working capital purposes, which has been converted into 3,000,000 new ordinary shares of 1p each in the capital of the Company ("Ordinary Shares").

In January 2014, we invested in a company called Enerstry Group Limited ("EG"). EG owns 93.99% of Enerstry Co., Limited ("Enerstry Korea"). Enerstry Korea designs, builds and manages renewable energy plants providing heat energy and/or electricity generation. Nova owns 23.72% of EG's ordinary share capital and has also provided an unsecured loan of US$806,480 to EG, which bears interest of 10 per cent per annum was due to be repayable by 18 January 2015.

The loan of US$806,480 was originally provided to EG to allow it to pursue a pipeline involving multiple renewable energy plant projects. During the six months to 30 June 2014, Nova made a series of announcements regarding Enerstry Korea's corporate activities in South Korea. However, despite the progress made by EG, the Board believes that a significant proportion of the loan currently remains unutilised. Accordingly, subject to further developments within EG's business, the Board intends to seek the repayment of the majority of this loan in January 2015.

In February 2014 we acquired warrants over 34,000,000 ordinary shares in the share capital of Tricor. The Company financed this acquisition via the conversion of 200,000,000 warrants in Nova attached to the Company's unsecured loan notes, which resulted in the issue of an additional 200,000,000 new Ordinary Shares at a conversion price of 1p each. We also strengthened our balance sheet, by converting GBP86,250 of unsecured loan notes into a further 8,625,000 new Ordinary Shares at a conversion price of 1p.

During November 2013, Nova entered into two investment agreements with Upside Management (Offshore) SAL and Consiliou Growth Fund (the "Investment Facilities"). Under these Investment Facilities, each of Upside Management (Offshore) SAL and Consiliou Growth Fund will provide the Company with a facility of up to GBP500,000 until 31 December 2018. The Investment Facilities can be drawn down by the Company by way of a subscription for new Ordinary Shares at a price of 1p each. Additionally the Company will issue warrants equal to four times the number of Ordinary Shares in any such facility transaction, with such warrants having an exercise price of 1p per Ordinary Share. The Company drew down GBP258,000 from each of these Investment Facilities in January 2014.

Upside Management (Offshore) SAL and Consiliou Growth Fund have both confirmed that the sums remaining under the Investment Facilities, amounting to over GBP400,000, may be used by Nova for its working capital purposes.

Nova's cash position is critical and its Directors have agreed not to take a salary until such time as the Company has sufficient cash. Nova will need to draw down on the sums remaining under the aforementioned Investment Facilities or raise further new capital via other means, in order to meet the Company's ongoing financial commitments until such time as the Company's investments generate returns to the Company.

Subject to further developments within EG's business, the majority of the loan made by the Company to EG, as announced on 20 January 2014, is expected to be repaid to the Company by 18 January 2015, together with interest accrued at a rate of 10% on the original balance of $806,480. This repayment will be vital in providing financing to the Company. However, given that the loan is unsecured, there can be no guarantee that this loan will be repaid in the timescales and manner that Nova's Board anticipates.

Chan Fook Meng

Chairman

Nova Resources Limited

Consolidated Comprehensive Income Statement

For the period to 30 June 2014

 
                                    Notes       6 Months       Year to    6 Months 
                                                 30 June   31 December     30 June 
                                                    2014          2013        2013 
                                               Unaudited       Audited   Unaudited 
                                                GBP'000s      GBP'000s    GBP'000s 
 
 Revenue                                               -             -          41 
 
 Cost of sales                                         -             -       (197) 
 
                                                                           3/4 3/4 
                                                 3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                             3/4 3/4 3/4       3/4 3/4         3/4 
 Gross (loss) / profit                                 -             -       (156) 
 
 Administrative expenses                           (133)         (358)       (446) 
                                                                           3/4 3/4 
                                                 3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                             3/4 3/4 3/4       3/4 3/4         3/4 
 Operating loss                       4            (133)         (358)       (602) 
 Gains (Losses) on 
  financial assets designated 
  at fair value through 
  profit or loss account                         (2,354)            47          27 
                                                                           3/4 3/4 
                                                 3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                             3/4 3/4 3/4       3/4 3/4         3/4 
                                                 (2,487)         (311)       (575) 
 Finance income                                        -             -           5 
 Finance expense                                       -             -        (53) 
                                                                           3/4 3/4 
                                                 3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                             3/4 3/4 3/4       3/4 3/4         3/4 
 Loss before tax from continuing 
  operations                                     (2,487)         (311)       (623) 
 Loss from discontinued                                -         (786)           - 
  operations 
                                                                           3/4 3/4 
                                                 3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                             3/4 3/4 3/4       3/4 3/4         3/4 
 Loss for the year                               (2,487)       (1,097)       (623) 
 
 Income tax charges                                    -             -           - 
                                                                           3/4 3/4 
                                                 3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                             3/4 3/4 3/4       3/4 3/4         3/4 
 Loss for the period                             (2,487)       (1,097)       (623) 
 
 Other comprehensive loss                              -          (93)        (62) 
                                                                           3/4 3/4 
                                                 3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                             3/4 3/4 3/4       3/4 3/4         3/4 
 Total comprehensive loss 
  for the period                                 (2,487)       (1,190)       (685) 
 
 
 Attributable to: 
 - Owners of the parent                          (2,487)       (1,190)       (685) 
 
 
 Loss per share 
 
 From continuing operations: 
 
 Basic and diluted                    6          (0.77p)       (1.07p)     (0.59p) 
 
 

Nova Resources Limited

Consolidated Statement of Financial Position

As at 30 June 2014

 
                                  Notes    6 Months       Year to    6 Months 
                                            30 June   31 December     30 June 
                                               2014          2013        2013 
                                          Unaudited       Audited   Unaudited 
                                           GBP'000s      GBP'000s    GBP'000s 
 Assets 
 
 Non-current assets 
 Property, plant and 
  equipment                                       -             -       2,174 
 Financial assets designated 
  at fair value through 
  profit or loss account                        254           607         680 
                                            3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                            3/4 3/4           3/4     3/4 3/4 
                                                254           607       2,854 
                                            3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                            3/4 3/4           3/4     3/4 3/4 
 Current assets 
 Cash and cash equivalents                        4            19           6 
 Trade and other receivables                    491             -         264 
                                            3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                            3/4 3/4           3/4     3/4 3/4 
                                                495            19         270 
                                            3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                            3/4 3/4           3/4     3/4 3/4 
 Total assets                                   749           626       3,124 
 
 Equity and liabilities 
 
 Capital and reserves 
 Issued capital                               3,928         1,291       1,061 
 Share premium                                4,996         4,996       4,996 
 Loan note equity reserve                        29            29          13 
 Share based payment 
  reserve                                        23            23          17 
 Foreign exchange reserve                         -             -        (62) 
 Accumulated deficit                        (8,607)       (6,120)     (5,553) 
                                            3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                            3/4 3/4           3/4     3/4 3/4 
 Total equity                                   369           219         472 
                                            3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                            3/4 3/4           3/4     3/4 3/4 
 Non Current liabilities 
 Non-interest bearing 
  loans                                          85           124          14 
                                            3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                            3/4 3/4           3/4     3/4 3/4 
                                                 85           124          14 
                                            3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                            3/4 3/4           3/4     3/4 3/4 
 Current liabilities 
 Trade and other payables                       214           185         486 
 Borrowings                                       -             -       2,129 
 Convertible loan                                81            98          23 
                                            3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                            3/4 3/4           3/4     3/4 3/4 
                                                295           283       2,638 
                                            3/4 3/4   3/4 3/4 3/4     3/4 3/4 
                                            3/4 3/4           3/4     3/4 3/4 
 Total equity and liabilities                   749           626       3,124 
 
 

Nova Resources Limited

Consolidated Statement of Cash Flows

For the period to 30 June 2014

 
                                  Period to             Year to       Period to 
                               30 June 2014    31 December 2013    30 June 2013 
                                  Unaudited             Audited       Unaudited 
 
                                   GBP'000s            GBP'000s        GBP'000s 
 
 Operating activities                 (561)               (500)              57 
 
 Investing activities 
 
 Purchases of plant and 
  equipment                               -                   -           (108) 
 
 Financing activities 
 Proceeds from issue of                 516                   -               - 
  shares 
 Proceeds of issue of loan 
  note                                   30                 400               - 
                                3/4 3/4 3/4         3/4 3/4 3/4     3/4 3/4 3/4 
                                    3/4 3/4             3/4 3/4         3/4 3/4 
 Net cash inflow/(outflow)             (15)               (100)            (51) 
 
 Effects of changes in 
  exchange rates                          -                   -            (62) 
 Cash and cash equivalents 
  at the beginning of the 
  period                                 19                 119             119 
                                3/4 3/4 3/4         3/4 3/4 3/4     3/4 3/4 3/4 
                                    3/4 3/4             3/4 3/4         3/4 3/4 
 Bank balances and cash                   4                  19               6 
 
 
 

Reconciliation of operating loss to net cash outflow from operating activities

 
                                                Period 
                                                    to             Year to       Period to 
                                               30 June    31 December 2013    30 June 2013 
                                        2014 Unaudited             Audited       Unaudited 
 
                                              GBP'000s            GBP'000s        GBP'000s 
 Loss for the period before 
  interest and tax                             (2,487)               (996)           (575) 
 
 Adjustments for: 
 Finance expense                                     -                   -            (53) 
 Finance Income                                      -                   -               5 
 Share based payment                                35                   6               - 
 Provision for quoted investments                    -                   -            (27) 
 Loss on                                         2,354                   -               - 
  financial assets designated 
  at fair value through profit 
  or loss account 
 Depreciation                                        -                   -             104 
 (Increase)/Decrease in inventory                    -                  19              19 
 (Increase)/Decrease in receivables              (492)                 722             659 
 Increase/(decrease) in payables                    29               (247)            (75) 
 Loss on disposal of fixed                           -                 (4)               - 
  assets 
                                               3/4 3/4 
                                               3/4 3/4         3/4 3/4 3/4     3/4 3/4 3/4 
                                                   3/4             3/4 3/4         3/4 3/4 
 Net cash outflow from operating 
  activities                                     (561)               (500)              57 
 
 

Nova Resources Limited

Consolidated statement of changes in equity

For period to 30 June 2014

 
                                Foreign      Share   Loan note      Share      Share   Accumulated      Total 
                               exchange      based      equity    capital    premium       deficit 
                                reserve    payment     reserve 
                                           reserve 
                               GBP000's   GBP'000s    GBP'000s   GBP'000s   GBP'000s      GBP'000s   GBP'000s 
 
 Balance as at 1 January 
  2012                            -          -           -         700       2,604       (1,741)      1,563 
 
 Shares Issued in period          -          -           -         361       2,392          -         2,753 
 Loss after tax                   -          -           -          -              -     (3,168)     (3,168) 
 Issue of convertible 
  loan notes                      -          -          13          -              -        -           13 
 Share based payments             -          17          -          -              -        -           17 
 Prior year losses 
  in subsidiaries                 -          -           -          -              -      (21)         (21) 
 
 Balance as at 31 December 
  2012                            -          17         13        1,061      4,996       (4,930)      1,157 
 Loss after tax                   -          -           -          -          -          (623)       (623) 
 Foreign exchange reserve       (62)         -           -          -          -            -          (62) 
 
 As at 30 June 2013             (62)         17         13        1,061      4,996         (5,553)     472 
 
 Loss after tax                   -          -           -          -          -             (567)    (567) 
 Conversion of loan 
  notes                           -          -           -         230         -                 -     230 
 Capital portion of 
  loan notes                      -          -          16          -          -                 -      16 
 Share based payment              -          6           -          -          -                 -      6 
 Reserve no longer 
  required                       62          -           -          -          -                 -      62 
 
 As at 31 December 
  2013                            -          23         29        1,291      4,996         (6,120)     219 
 Loss after tax                   -          -           -          -          -           (2,487)    (133) 
 Issue of shares for 
  cash                            -          -           -         516         -                 -     516 
 Conversion of loan 
  notes                           -          -           -          86         -                 -      86 
 Exercise of loan of 
  warrants                        -          -           -        2,035        -                 -    2,035 
 
 As at 30 June 2014               -          23         29        3,928      4,996         (8,607)     369 
 
 
 

Nova Resources Limited

Notes to the Interim Financial Information

   1.   General Information 

Nova Resources Limited is incorporated in Bermuda with company number 39768 and quoted on the AIM market of the London Stock Exchange Plc.

   2.   Basis of Preparation 

This interim report, which incorporates the financial information of the company, has been prepared using the historical cost convention, on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union, using accounting policies which are consistent with those set out in the financial statement for the year ended 31 December 2013. This interim financial information for the six months ended 30 June 2014 was approved by the Board on 30 September 2014.

   3.   Segmental Analysis 

The group's primary reporting format is business segments and its secondary format is geographical segments. The group currently has neither an operating business nor geographical segment. Accordingly no segmental information for business segment or geographical segment is required.

   4.   Operating loss for the period is stated after charging / (crediting) 
 
                                      Period to             Year to       Period to 
                                   30 June 2014    31 December 2013    30 June 2013 
                                      Unaudited             Audited       Unaudited 
 
                                       GBP'000s            GBP'000s        GBP'000s 
 
 Depreciation                                 -                   -             104 
 Share based payment                         35                   6               - 
 (Profit) / Loss on 
  foreign currency translation                -                 (7)           (152) 
 Auditors' remuneration                       -                  19               - 
 
 
 
   5.   Remuneration of key management personnel 
 
                            Period to             Year to       Period to 
                         30 June 2014    31 December 2013    30 June 2013 
                            Unaudited             Audited       Unaudited 
 
 The fees paid in the        GBP'000s            GBP'000s        GBP'000s 
  period to 30 June 
  2014 were: 
 
 Chan Fook Meng               -                        30         - 
 Christopher Morgan           -                        30         - 
 Nazim Khan                   -                        30         - 
 
 
 
   6.    Loss per share 
 
                          Period to             Year to       Period to 
                       30 June 2014    31 December 2013    30 June 2013 
                          Unaudited             Audited       Unaudited 
 
                           GBP'000s            GBP'000s        GBP'000s 
 Loss per ordinary 
  share: 
 Basic - pence              (0.77p)             (0.36p)         (0.59p) 
 Diluted - pence            (0.77p)             (0.36p)         (0.59p) 
 
 
 

The loss per ordinary share is based on the company's loss for the period of GBP2,487,000 (31 December 2013 - GBP1,190,000; 30 June 2013 - GBP685,000) and a basic and diluted weighted average number of shares in issue of 323,105,066 (31 December 2013 - 111,275,105; 30 June 2013 - 106,115,287).

   7.   Called up Share Capital 

On 29 January, the acquisition of the Company's 23.72% holding in Enerstry Group Limited was funded partly by the issue of 51,600,000 new ordinary shares of GBP0.01 each at par.

On 20 January, GBP38,250 of the unsecured loan stock 2017 were converted into 3,825,000 new ordinary shares of GBP0.01 each at par and a further GBP18,000 were converted at par into 1,800,000 new ordinary shares.

On 21 January 2014 warrants attached to the unsecured loan stock 2017 were converted into 3,500,000 new ordinary shares of GBP0.01 each and on 27 February a further 200,000,000 warrants were converted into 200,000,000 new ordinary shares of GBP0.01 each to fund the acquisition of investments.

On 20 January 2014 GBP30,000 unsecured loan notes 2018 were issued for cash, for working capital. These were convertible at par and on 22 January 2014 they were converted into 3,000,000 new ordinary shares of GBP0.01 each.

   8.   Convertible Loans 

No loans were issued in the period - see note 7 for conversions.

   9.   Related-party transactions 

Transactions between the group and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.

10. Events subsequent to 30 June 2014

No events occurred after the period end which require reporting.

11. The unaudited results for the period ended 30 June 2014 do not constitute statutory accounts. The comparative figures for the period ended 31 December 2013 are extracted from the audited financial statements which contained an unqualified audit report.

12. This interim financial statement will be, in accordance with Rule 26 of the AIM Rules for Companies, available shortly on the company's website at www.novaresourceslimited.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR ZMGFLLGFGDZG

Nova Res. (LSE:NOVA)
Historical Stock Chart
From May 2024 to Jun 2024 Click Here for more Nova Res. Charts.
Nova Res. (LSE:NOVA)
Historical Stock Chart
From Jun 2023 to Jun 2024 Click Here for more Nova Res. Charts.