Karoo Energy Plc - Interim Results to 31 October 2018

Karoo Energy Plc - Interim Results to 31 October 2018

PR Newswire

London, January 31

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.

The financial results detailed are unaudited, and have not been reviewed by the auditors of the Company.

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: [phone]

Corporate Adviser

Peterhouse Capital Limited

Guy Miller / Mark Anwyl

Telephone: [phone]

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