Regulatory news announcement

Interim Results For The Six Months Ended 31 October 2018

31 January 2019

 

Karoo Energy Plc

(“Karoo Energy”, the “Group” or the “Company”)

 

Interim Results For The Six Months Ended 31 October 2018

 

CHIEF EXECUTIVE OFFICER STATEMENT

 

This last six-month interim period has seen the Company and Board focus on cash conservation, and employ their best endeavours to raise the funds required to complete an admission to AIM. Substantial progress has been made on the AIM listing, a pathfinder Admission document was signed off in November and roadshows recently completed. We remain committed in our belief of the potential shale gas within our portfolio of licenses and look forward post a successful AIM listing, to proving the resource and exploiting the licenses fully.

 

Whilst no assurances of a successful listing on AIM can be given at this stage, the Board expects to be able to confirm, imminently, that it has with its Corporate Adviser Peterhouse and its proposed broker Novum, raised the funds required to transition to an AIM listing and that it is in the final regulatory stage of the admission process.

 

It is the intention of the Board to update the market on progress as soon as it able to do so with an AIM listing currently expected to be finalised and to occur in February 2019.

 

FINANCIALS

 

The financial results for the six months to 31 October 2018 show a loss after taxation of £68,089 (2017: £422,196). The majority of the costs relating to the admission to AIM are recognised in the prior financial periods.

 

OUTLOOK

 

We remain committed to the success of Karoo Energy plc and the exploitation of the licenses held. We look forward to providing investors with a progress report in due course.

 

Noel Lyons

CEO

31 January 2019

 

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

 

2018 2017
Notes Unaudited Unaudited
£ £
Revenue
Other operating income 16,870
Administrative expenses (84,969) (425,348)
Operating profit (68,099) (425,348)
Finance income 9
Finance costs
Profit before taxation (68,090) (425,348)
Taxation
Minority interests 327 3,152
Loss for the financial year attributable to the Company’s equity shareholders (67,763) (422,196)
Loss per share from operations
Basic and diluted loss per share (£) 2 0.0003 0.0021

 

 

 

Consolidated Statement of Comprehensive Income for the 6 months ended 31 October

2018 2017
Unaudited Unaudited
£ £
Loss for the financial year (67,763) (422,196)
Total comprehensive income for the financial year attributable to the Company’s equity shareholders (67,763) (422,196)

 

 

 

Consolidated Balance Sheet as at 31 October and 30 April

31 October 31 October 30 April
2018 2017 2018
Notes Unaudited Unaudited Audited
Assets £ £ £
Non-current assets
Intangible assets 3 135,439 337,047 135,439
Current assets
Trade and other receivables 4 45,207 37,574 41,072
Investments
Cash and cash equivalents 1,141 186,626 41,419
46,348 224,200 82,491
Total Assets 181,787 561,247 217,930
Equity and liabilities
Capital and reserves
Share capital 5 511,837 511,837 511,837
Share premium 2,231,786 2,231,786 2,231,786
Retained earnings (2,910,950) (2,500,844) (2,843,187)
Shareholders’ funds (167,327) 242,779 (99,564)
Minority Interests (54,893) (11,058) (54,566)
(222,220) 231,721 (154,130)
Current liabilities:  

6

Trade and other payables 404,007 329,526 372,060
Total equity and liabilities 181,787 561,247 217,930

 

 

 

Consolidated Statement of Changes in Equity as at 31 October and 30 April

 

Share Share Retained Minority
capital premium earnings interests Total
£ £ £ £ £
For the 6 months ended 31 October 2017
Balance at 1 May 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 42,247 464,713 506,960
Cost of share issue (4,511) (4,511)
Balance at 31 October 2017 511,837 2,231,786 (2,500,844) (11,058) 231,721
Loss for the period (342,343) (43,508) (385,851)
Total comprehensive income (342,343) (43,508) (385,851)
Issue of shares
Cost of share issue
Balance at 30 April 2018 511,837 2,231,786 (2,843,187) (54,566) (154,130)
Loss for the period (67,763) (327) (68,090)
Total comprehensive income (67,763) (327) (68,090)
Issue of shares
Cost of share issue
Balance at 31 October 2018 511,837 2,231,786 (2,910,950) (54,893) (222,220)

 

 

 

Consolidated Statement of Cash Flows for the 6 months ended 31 October

 

2018 2017
Notes Unaudited Unaudited
£ £
Cash flow from operating activities
Loss for the period before tax (68,090) (425,348)
Finance income (9)
(68,099) (425,348)
Changes in working capital
(Increase)/decrease in trade and other receivables 4 (4,135) 57,686
Increase in trade and other payables 6 31,947 66,394
Cash outflow from operating activities (40,287) (301,268)
Cash flow from investing activities
Purchase of intangible exploration assets 3 (14,893)
Interest received 9
Net cash used in investing activities 9 (14,893)
Cash flow from financing activities
Issue of shares 5 507,298
Cost of shares issued 5 (4,511)
Net cash from financing activities 502,787
Net (decrease)/increase in cash and cash equivalents (40,278) 186,626
Cash and cash equivalents at beginning of period 41,419
Cash and cash equivalents at end of period 1,141 186,626

 

 

 

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 2018, 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 2018 and 31 October 2017 is unaudited.

 

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 2019.

 

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 2018.

 

Going concern

During the period ended 31 October 2018 the Group made a loss of £68,089 (2017: loss £425,349) and as at 31 Oct 2018 it had net current liabilities of £404,007 (2017: net current liabilities of £329,188). The operations of the Group are primarily financed from funds which the Parent Company raises from share placing as it does not currently generate significant amounts of revenue.

 

The Group needs to raise significant funds in the short term to pay its liabilities as they fall due including existing creditors which exceed the group’s current assets. Funds are also required to deliver on its obligations under the exploration licences, as set out in the audited accounts to 31 April 2018.

 

As described in the CEO statement, subject to AIM approval for the admission to AIM, the Directors believe that the Group, in conjunction with the Broker, will be able to raise sufficient cash to enable it to continue its operations, and continue to meet, as and when they fall due, its planned and committed exploration and development activities and liabilities for at least the next twelve months from the date of approval of these interim statements. For this reason, the Directors continue to adopt the going concern basis in preparing the accounts. However, there can be no guarantee that the required funds we be raised within the necessary timeframe. The financial statements do not include the adjustments that would result if the Group was unable to continue in operation

 

 

  1. 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

 

2018 2017
Unaudited Unaudited
£ £
Total basic loss per share 0.0003 0.0021

 

 

The losses and weighted average number of Ordinary Shares used in the calculation of basic earnings per share are as follows:

 

2018 2017
Unaudited Unaudited
£ £
Loss used in the calculation of total basic and diluted earnings per share (68,089) (422,196)
2017 2017
Number of shares Unaudited Unaudited
Weighted average number of Ordinary Shares for the purposes of basic earnings per share 203,518,412 200,818,638

 

 

 

  1. Intangible assets
Exploration and Evaluation assets
£
Cost & net book value
At 30 April 2017 (audited) 322,154
Additions 14,893
At 31 October 2017 (unaudited) 337,047
Additions 49,630
Impairments (251,238)
At 30 April 2018 (audited) 135,439
Additions
At 31 October 2018 (unaudited) 135,439

 

  1. Trade and other receivables
31 October 31 October 30 April
2018 2017 2018
Unaudited Unaudited Audited
£ £ £
Trade debtors 5,535
Amounts due from director 16,595 12,855 16,595
Other receivables 18,477 16,277 17,477
Prepayments and accrued income 4,600 8,442 7,000
45,207 37,574 41,072

 

 

 

  1. Share capital
31 October 31 October 30 April
2018 2017 2018
Unaudited Unaudited Audited
Allotted, issued, and fully paid Ordinary shares of 0.0025 each £ £ £
Opening balance 511,837 469,590 511,837
Allotments:
22 May 2017 – shares issued at 3.0p each resulting in premium of £10,963 997
22 May 2017 – shares issued at 3.0p each resulting in premium of £426,250 38,750
22 May 2017 – shares issued at 3.0p each resulting in premium of £27,500 2,500
Closing balance 511,837 511,837 511,837

 

31 October 31 October 30 April
2018 2017 2018
Unaudited Unaudited Audited
Allotted, issued, and fully paid Ordinary shares of 0.0025 each No No No
Opening balance 204,734,976 187,836,308 204,734,976
Allotments:
22 May 2017 – shares issued at 3.0p each resulting in premium of £10,963 398,668
22 May 2017 – shares issued at 3.0p each resulting in premium of £426,250 15,500,000
22 May 2017 – shares issued at 3.0p each resulting in premium of £27,500 1,000,000
Closing balance 204,734,976 204,734,976 204,734,976

 

 

 

  1. Trade and other payables
31 October 31 October 30 April
2018 2017 2018
Unaudited Unaudited Audited
£ £ £
Trade payables 226,212 224,924 216,561
Accruals 90,535 28,082 68,239
Loan from related party 87,260 76,520 87,260
404,007 329,526 372,060