Regulatory news announcement

Interim Results For The Six Months Ended 31 October 2017

 
TIDMKEP 
 
31 January 2018 
 
                               Karoo Energy Plc 
                ("Karoo Energy", the "Group" or the "Company") 
 
           Interim Results For The Six Months Ended 31 October 2017 
 
CHIEF EXECUTIVE OFFICER STATEMENT 
 
I am pleased to report that the Company has made continued progress over recent 
months particularly with our exploration program. We announced recently that 
exploration work in the Gemsbok Basin covered by the Company's Prospecting 
Licences EL001/2012 and PL171/2015 has produced results which confirm the 
geological model for the Company's exploration programme. This model, based on 
multiple research projects, including deep boreholes and seismic surveys, 
undertaken by the Department of Geological Survey of Botswana and other 
published academic works, predicts a deep sedimentary basin, the Gemsbok Basin, 
infilled by Karoo Supergroup sedimentary rocks underlain by Nama Group 
sedimentary rocks. Both groups of rock, Karoo and Nama, are known to contain 
organic shales which form the target for this exploration project. This 
announcement underlines our commitment to and belief in the potential for shale 
gas within our portfolio of licences and we are continuing our exploration work 
and look forward to announcing our progress in due course. 
 
FINANCIALS 
 
The financial results for the six months to 31 October 2017 show a loss after 
taxation of GBP422,196 (2016: GBP126,162). Included within the 2017 loss are costs 
totalling GBP272,005 with respect to AIM listing costs. 
 
The financial results detailed are unaudited, and have not been reviewed by the 
auditors of the Company. 
 
Noel Lyons 
CEO 
31 January 2017 
 
The Directors of the Company accept responsibility for the content of this 
announcement. 
 
ENQUIRIES: 
 
Company 
Karoo Energy plc 
Noel Lyons 
Telephone: 020 3130 0674 
 
Corporate Adviser 
Peterhouse Corporate Finance Limited 
Guy Miller / Mark Anwyl 
Telephone: 020 7220 9795 
 
 
 
 
Consolidated Income Statement for the 6 months ended 31 October 
 
                                                                        2017        2016 
 
                                                             Notes Unaudited   Unaudited 
 
                                                                           GBP           GBP 
 
Revenue                                                                    -           - 
 
Cost of sales                                                              -           - 
 
Gross profit                                                               -           - 
 
Administrative expenses                                            (425,348)   (125,749) 
 
Operating profit                                                   (425,348)   (125,749) 
 
Finance income                                                             -           - 
 
Finance costs                                                              -     (1,630) 
 
Profit before taxation                                             (425,348)   (127,379) 
 
Taxation                                                                   -           - 
 
Minority interests                                                     3,152       1,217 
 
Loss for the financial year attributable to the Company's          (422,196)   (126,162) 
equity shareholders 
 
Loss per share from operations 
 
Basic and diluted loss per share (GBP)                           2      0.0021      0.0007 
 
 
 
Consolidated Statement of Comprehensive Income for the 6 months ended 31 
October 
 
                                                                        2017        2016 
 
                                                                   Unaudited   Unaudited 
 
                                                                           GBP           GBP 
 
Loss for the financial year                                        (422,196)   (126,162) 
 
Total comprehensive income for the financial year                  (422,196)   (126,162) 
attributable to the Company's equity shareholders 
 
 
 
Consolidated Balance Sheet as at 31 October and 30 April 
 
                                               31 October      31 October        30 April 
 
                                                     2017            2016            2017 
 
                                     Notes      Unaudited       Unaudited         Audited 
 
Assets                                                  GBP               GBP               GBP 
 
Non-current assets 
 
Intangible assets                      3          337,047         477,051         322,154 
 
Current assets 
 
Trade and other receivables            4           37,574          26,244          95,260 
 
Investments                                             -               -               - 
 
Cash and cash equivalents                         186,626         168,261               - 
 
                                                  224,200         194,505          95,260 
 
Total Assets                                      561,247         671,556         417,414 
 
Equity and liabilities 
 
Capital and reserves 
 
Share capital                          5          512,175         468,306         469,590 
 
Share premium                                   2,231,786       1,758,802       1,771,584 
 
Retained earnings                             (2,500,844)     (1,822,896)     (2,078,648) 
 
Shareholders' funds                               243,117         404,212         162,526 
 
Minority Interests                               (11,058)           4,086         (7,906) 
 
                                                  232,059         408,298         154,620 
 
Current liabilities: 
                                       6 
Trade and other payables                          329,188         263,258         262,794 
 
Total equity and liabilities                      561,247         671,556         417,414 
 
 
 
Consolidated Statement of Changes in Equity as at 31 October and 30 April 
 
                                       Share      Share    Retained   Minority 
 
                                     capital    premium    earnings  interests      Total 
 
                                           GBP          GBP           GBP          GBP          GBP 
 
For the 6 months ended 31 October 
2016 
 
Balance at 1 May 2016                450,449  1,576,659 (1,696,734)      5,303    335,677 
 
Loss for the period                        -          -   (126,162)    (1,217)  (127,379) 
 
Total comprehensive income                 -          -   (126,162)    (1,217)  (127,379) 
 
Issue of shares                       17,857    196,529           -          -    214,386 
 
Cost of share issue                        -   (14,386)           -          -   (14,386) 
 
Balance at 31 October 2016           468,306  1,758,802 (1,822,896)      4,086    408,298 
 
Loss for the period                        -          -   (255,752)   (11,992)  (267,744) 
 
Total comprehensive income                 -          -   (255,752)   (11,992)  (267,744) 
 
Issue of shares                        1,284     14,024           -          -     15,308 
 
Cost of share issue                        -    (1,242)           -          -    (1,242) 
 
Balance at 30 April 2017             469,590  1,771,584 (2,078,648)    (7,906)    154,620 
 
Loss for the period                        -          -   (422,196)    (3,152)  (425,348) 
 
Total comprehensive income                 -          -   (422,196)    (3,152)  (425,348) 
 
Issue of shares                       42,585    464,713           -          -    507,298 
 
Cost of share issue                        -    (4,511)           -          -    (4,511) 
 
Balance at 31 October 2017           512,175  2,231,786 (2,500,844)   (11,058)    232,059 
 
 
 
Consolidated Statement of Cash Flows for the 6 months ended 31 October 
 
                                                                     2017           2016 
 
                                                      Notes     Unaudited      Unaudited 
 
                                                                        GBP              GBP 
 
Cash flow from operating activities 
 
Loss for the period before tax                                  (425,348)      (127,379) 
 
Finance costs                                                           -          1,630 
 
                                                                (425,348)      (125,749) 
 
Changes in working capital 
 
Decrease / (increase) in trade and other receivables    4          57,686        (7,233) 
 
Increase / (decrease) in trade and other payables       6          66,394      (134,368) 
 
Cash outflow from operating activities                          (301,268)      (267,350) 
 
Cash flow from investing activities 
 
Purchase of intangible exploration assets               3        (14,893)       (58,935) 
 
Net cash used in investing activities                            (14,893)       (58,935) 
 
Cash flow from financing activities 
 
Issue of shares                                         5         507,298        214,386 
 
Cost of shares issued                                   5         (4,511)       (14,386) 
 
Net cash from financing activities                                502,787        200,000 
 
Net decrease in cash and cash equivalents                         186,626      (126,285) 
 
Cash and cash equivalents at beginning of period                        -        294,546 
 
Cash and cash equivalents at end of period                        186,626        168,261 
 
Notes to the interim results 
 
1.        Basis of preparation 
 
The interim financial statements for Karoo Energy plc have been prepared on the 
basis of the accounting policies set out in the audited financial information 
for the year ended 30 April 2017, which complied with International Financial 
Reporting Standards as adopted for use in the European Union ("IFRS"). The 
financial information for the periods ended 31 October 2017 and 31 October 2016 
is unaudited. 
 

(MORE TO FOLLOW) Dow Jones Newswires

January 31, 2018 12:12 ET (17:12 GMT)

DJ Karoo Energy Plc Interim Results For The Six -2-

IFRS is subject to amendment and interpretation by the International Accounting 
Standards Board ("IASB") and the IFRS Interpretations Committee and there is an 
on-going process of review and endorsement by the European Commission. 
 
The financial information has been prepared in accordance with the recognition 
and measurement requirements of IFRS that the Directors expect to be applicable 
as at 30 April 2018. 
 
The preparation of condensed consolidated interim financial information 
requires management to make judgements, estimates and assumptions that affect 
the application of accounting policies and the reported amounts of assets and 
liabilities, income and expense. Actual results may differ from those 
estimates. 
 
In preparing these interim financial statements, the significant judgements 
made by management in applying the Group's accounting policies and the key 
sources of estimation uncertainty were the same as those that applied to the 
consolidated financial statements for the year ended 30 April 2017. 
 
2.        Earnings per share 
 
Basic earnings per share is calculated by dividing the earnings attributable to 
Ordinary Shareholders by the weighted average number of Ordinary Shares 
outstanding during the period. 
 
The Group does not have any potentially dilutive shares in any of the periods 
presented, therefore the basic and diluted earnings per share are the same. 
 
Basic earnings per share 
 
                                                                     2017           2016 
 
                                                                Unaudited      Unaudited 
 
                                                                        GBP              GBP 
 
Total basic loss per share                                         0.0021         0.0007 
 
The losses and weighted average number of Ordinary Shares used in the 
calculation of basic earnings per share are as follows: 
 
                                                                    2017           2016 
 
                                                               Unaudited      Unaudited 
 
                                                                       GBP              GBP 
 
Loss used in the calculation of total basic and diluted        (422,196)      (126,162) 
earnings per share 
 
                                                                    2017           2016 
 
Number of shares                                               Unaudited      Unaudited 
 
Weighted average number of Ordinary Shares for the           200,818,638    146,272,243 
purposes of basic earnings per share 
 
3.        Intangible assets 
 
                                                                        Exploration and 
                                                                      Evaluation assets 
 
                                                                                      GBP 
 
Cost & net book value 
 
At 30 April 2016 (audited)                                                      362,252 
 
Additions                                                                       114,799 
 
At 31 October 2016 (unaudited)                                                  477,051 
 
Additions                                                                      (18,756) 
 
Impairments                                                                   (136,141) 
 
At 30 April 2017 (audited)                                                      322,154 
 
Additions                                                                        14,893 
 
At 31 October 2017 (unaudited)                                                  337,047 
 
4.        Trade and other receivables 
 
                                                  31 October     31 October    30 April 
 
                                                        2017           2016        2017 
 
                                                   Unaudited      Unaudited     Audited 
 
                                                           GBP              GBP           GBP 
 
Amounts due from director                             12,855              -      80,821 
 
Other receivables                                     16,277         13,446      10,850 
 
Prepayments and accrued income                         8,442         12,798       3,589 
 
                                                      37,574         26,244      95,260 
 
5.        Share capital 
 
                                           31 October       31 October         30 April 
 
                                                 2017             2016             2017 
 
                                            Unaudited        Unaudited          Audited 
 
Allotted, issued, and fully paid                    GBP                GBP                GBP 
Ordinary shares of 0.0025 each 
 
Opening balance                               469,590          450,449          450,449 
 
Allotments: 
 
31 May 2016 - shares issued at 2.5p                 -           17,857           17,856 
each resulting in premium of GBP 
182,143 
 
10 November 2016 - shares issued at                 -                -              947 
2.5p each resulting in premium of GBP 
10,411 
 
20 February 2017 - shares issued at                 -                -              338 
2.5p each resulting in premium of GBP 
3,713 
 
18 May 2017 - shares issued at 3.0p             1,335                -                - 
each resulting in premium of GBP14,676 
 
18 May 2017 - shares issued at 3.0p            38,750                -                - 
each resulting in premium of GBP 
426,250 
 
6 July 2017 - shares issued at 3.0p             2,500                -                - 
each resulting in premium of GBP27,500 
 
Closing balance                               512,175          468,306          469,590 
 
 
 
                                           31 October       31 October         30 April 
 
                                                 2017             2016             2017 
 
                                            Unaudited        Unaudited          Audited 
 
Allotted, issued, and fully paid                   No               No               No 
Ordinary shares of 0.0025 each 
 
Opening balance                           187,836,308      180,179,829      180,179,829 
 
Allotments: 
 
31 May 2016 - shares issued at 2.5p                 -        7,142,857        7,142,857 
each resulting in premium of GBP 
182,143 
 
10 November 2016 - shares issued at                 -                -          378,622 
2.5p each resulting in premium of GBP 
10,411 
 
20 February 2017 - shares issued at                 -                -          135,000 
2.5p each resulting in premium of GBP 
3,713 
 
18 May 2017 - shares issued at 3.0p           533,667                -                - 
each resulting in premium of GBP14,676 
 
18 May 2017 - shares issued at 3.0p        15,500,000                -                - 
each resulting in premium of GBP 
426,250 
 
6 July 2017 - shares issued at 3.0p         1,000,000                -                - 
each resulting in premium of GBP27,500 
 
Closing balance                           204,869,975      187,322,686      187,836,308 
 
6.        Trade and other payables 
 
                                                   31 October   31 October     30 April 
 
                                                         2017         2016         2017 
 
                                                    Unaudited    Unaudited      Audited 
 
                                                            GBP            GBP            GBP 
 
Trade payables                                        224,924       28,710       13,431 
 
Other payables                                              -       23,318      158,555 
 
Accruals                                               27,744      136,342       10,547 
 
Loan from related party                                76,520       74,890       80,260 
 
                                                      329,188      263,260      262,793 
 
 
 
END