IamFire Plc - Interim Results to 31 October 2019
PR Newswire
London, February 2
3rdFebruary 2020
IamFire Plc
("IamFire Plc", the "Group" or the "Company")
Interim Results For The Six Months Ended 31 October 2019
EXECUTIVE DIRECTOR STATEMENT
The Board and I are pleased to present the interim results for IamFire Plc (NEX: FIRE). 2019, proved to be a challenging year for the then incumbent management team as they pursued a listing on the AIM-exchange. Upon joining the Board upon a successful GM (please refer to the announcement "Result of GM, Board and Change of Name", 11th October), we have rapidly, accelerated a comprehensive corporate restructure that ensures that the Company retains its listed status on the NEX Exchange and are grateful for the support of all in ensuring this process has been affected with efficiency.
We have reduced all non-core costs, capitalised all immediate creditors and have created a lean and low-cost investment vehicle that is now able to pursue opportunities.
It is of paramount importance that as a company we seek to transact on the basis that there is sufficient capital market support to justify the decision we make as a Board of Directors. To this end we are in active discussions, evaluating and assessing opportunities that adequately reflect this new ethos at IamFire plc.
The Company is focusing its efforts on reviewing assets that upon acquisition/investment require low-capital intensity and are structured in a manner that enables capital raised to be expended on development rather than acquisition in order to maximise our entry and reduce our assumed opportunity-cost.
I am also excited by the developments that are occurring with the NEX Exchange and note that these developments are being positively received and communicated within financial networks and communities, globally.
I look forward to the year ahead and providing updates in relation to the corporate developments within the Company and welcome shareholders both existing and prospective to get in touch freely to discuss the new direction at, IamFire plc.
FINANCIALS
The financial results for the six months to 31 October 2019 show a profit after taxation of £123,435 (2018: Loss £68,089).
The interim results are unaudited to 31 October 2019 and have not been reviewed by the Company's auditors
OUTLOOK
The Board and I are positive on IamFire's outlook moving forward. Recapitalised and restored we now operate with purpose in pursuit of a transaction of significance. We remain in active discussions on a number of different opportunities and feel that we are now at a point of action with regards the next iteration for the Company upon the exit and relinquishment of the Company's hydrocarbon licenses in Botswana.
Burns Singh Tennent-Bhohi
Executive Director
31 January 2020
The Directors of the Company accept responsibility for the content of this announcement.
ENQUIRIES:
Company
IamFire plc (NEX: FIRE)
Burns Singh Tennent-Bhohi
Telephone: 020 3778 0755
Corporate Adviser
Peterhouse Corporate Finance Limited
Guy Miller / Mark Anwyl
Telephone: 020 7220 9795
Consolidated Income Statement for the 6 months ended 31 October
| 2019 | 2018 | |||
| Notes | Unaudited | Unaudited | ||
| £ | £ | |||
| Revenue | - | - | ||
| Other operating income | 201,399 | 16,870 | ||
| Administrative expenses | (77,967) | (84,969) | ||
| Operating profit | 123,432 | (68,099) | ||
| Finance income | 3 | 9 | ||
| Finance costs | - | - | ||
| Profit before taxation | 123,435 | (68,090) | ||
| Taxation | - | - | ||
| Minority interests | - | 327 | ||
| Profit/(Loss) for the period attributable to the Company's equity shareholders | 123,435 | (67,763) | ||
| Profit/(Loss) per share from operations | ||||
| Basic and diluted loss per share (£) | 2 | 0.049 | (0.033) |
Consolidated Statement of Comprehensive Income for the 6 months ended 31 October
| 2019 | 2018 | |||
| Unaudited | Unaudited | |||
| £ | £ | |||
| Profit/(Loss) for the financial year | 123,435 | (67,763) | ||
| Total comprehensive income for the period attributable to the Company's equity shareholders | 123,435 | (67,763) |
Consolidated Balance Sheet as at 31 October and 30 April
| 31 October | 31 October | 30 April | ||||
| 2019 | 2018 | 2019 | ||||
| Notes | Unaudited | Unaudited | Audited | |||
| Assets | £ | £ | £ | |||
| Non-current assets | ||||||
| Intangible assets | 3 | - | 135,439 | - | ||
| Current assets | ||||||
| Trade and other receivables | 4 | 18,497 | 45,207 | 35,220 | ||
| Investments | - | - | - | |||
| Cash and cash equivalents | 56,866 | 1,141 | 2,130 | |||
| 75,363 | 46,348 | 37,350 | ||||
| Total Assets | 75,363 | 181,787 | 37,350 | |||
| Equity and liabilities | ||||||
| Capital and reserves | ||||||
| Share capital | 5 | 526,733 | 511,837 | 511,837 | ||
| Share premium | 2,359,890 | 2,231,786 | 2,231,786 | |||
| Retained earnings | (2,917,386) | (2,910,950) | (3,040,821) | |||
| Shareholders' funds | (30,763) | (167,327) | (297,198) | |||
| Minority Interests | (61,766) | (54,893) | (61,766) | |||
| (92,529) | (222,220) | (358,964) | ||||
| Current liabilities: | 6 | |||||
| Trade and other payables | 167,892 | 404,007 | 396,314 | |||
| Total equity and liabilities | 75,363 | 181,787 | 37,350 |
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 2018 | |||||
| Balance at 1 May 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) |
| Loss for the period | - | - | (129,871) | (6,873) | (136,744) |
| Total comprehensive income | - | - | (129,871) | (6,873) | (136,744) |
| Issue of shares | - | - | - | - | - |
| Cost of share issue | - | - | - | - | - |
| Balance at 30 April 2019 | 511,837 | 2,231,786 | (3,040,821) | (61,766) | (358,964) |
| Profit for the period | - - | - - | 123,435 | - | 123,435 |
| Total comprehensive income | - | - | 123,435 | - | 123,435 |
| Issue of shares | 14,896 | 128,104 | - | - | 143,000 |
| Cost of share issue | - | - | - | - | - |
| Balance at 31 October 2019 | 526,733 | 2,359,890 | (2,917,386) | (61,766) | (92,529) |
Consolidated Statement of Cash Flows for the 6 months ended 31 October
| 2019 | 2018 | |||
| Notes | Unaudited | Unaudited | ||
| £ | £ | |||
| Cash flow from operating activities | ||||
| Profit/(loss) for the period before tax | 123,435 | (68,090) | ||
| Finance income | (3) | (9) | ||
| 123,432 | (68,099) | |||
| Changes in working capital | ||||
| (Increase)/decrease in trade and other receivables | 4 | 16,723 | (4,135) | |
| Increase/(decrease) in trade and other payables | 6 | (228,422) | 31,947 | |
| Cash outflow from operating activities | (88,267) | (40,287) | ||
| Cash flow from investing activities | ||||
| Purchase of intangible exploration assets | 3 | - | - | |
| Interest received | 3 | 9 | ||
| Net cash used in investing activities | 3 | 9 | ||
| Cash flow from financing activities | ||||
| Issue of shares | 5 | 143,000 | - | |
| Cost of shares issued | 5 | - | - | |
| Net cash from financing activities | 143,000 | - | ||
| Net (decrease)/increase in cash and cash equivalents | 54,736 | (40,278) | ||
| Cash and cash equivalents at beginning of period | 2,130 | 41,419 | ||
| Cash and cash equivalents at end of period | 56,866 | 1,141 |
Notes to the interim results
Basis of preparation
The interim financial statements for IamFire Plc have been prepared on the basis of the accounting policies set out in the audited financial information for the year ended 30 April 2019, 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 2019 and 31 October 2018 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 2020.
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 2019.
Going concern
During the period ended 31 October 2019 the Group made a profit of £123,435 (2018: loss £68,069) and as at 31 October 2019 it had net current liabilities of £92,529 (2018: net current liabilities of £357,659). The operations of the Group are primarily financed from funds which the Parent Company raises from share placings as it does not currently generate significant amounts of revenue.
As described in the Executive Director's statement, following the business restructuring and refinancing in October 2019 the Company is now is in a more stable financial position and is able to look to build a new direction for the business. As a result, 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 expenditure 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.
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
| 2019 | 2018 | ||
| Unaudited | Unaudited | ||
| £ | £ | ||
| Total basic profit/(loss) per share | 0.049 | (0.033) |
The losses and weighted average number of Ordinary Shares used in the calculation of basic earnings per share are as follows:
| 2019 | 2018 | ||
| Unaudited | Unaudited | ||
| (restated) £ | (restated) £ | ||
| Profit/(loss) used in the calculation of total basic and diluted earnings per share | 123,435 | (68,089) | |
| 2019 | 2018 | ||
| Number of shares | Unaudited | Unaudited | |
| Weighted average number of Ordinary Shares for the purposes of basic earnings per share | 2,520,918 | 2,035,184 |
Note:
Further to the approval of shareholders at a General Meeting of the Company on 11 October 2019 a Capital Reorganisation of the Company was undertaken whereby a consolidation of the Ordinary Shares of £0.0025 on a one for 100 basis was undertaken. The Ordinary Shares were simultaneously sub-divided back into Ordinary Shares of £0.0025.
The Weighted average number of Ordinary Shares, for the half year ended 31 October 2018 has been restated from the pre-consolidation 203,518,412 shares to the post consolidation 2,035,184 shares.
The Weighted average number of Ordinary Shares, for the half year ended 31 October 2019 has been restated to reflect the effect of the consolidation on 11 October 2019.
Intangible assets
| Exploration and Evaluation assets | |
| £ | |
| Cost & net book value | |
| At 30 April 2018 (audited) | 139,439 |
| Additions | - |
| At 31 October 2018 (unaudited) | 139,439 |
| Additions | - |
| Impairments | (139,439) |
| At 30 April 2019 (audited) | - |
| Additions | - |
| At 31 October 2019 (unaudited) | - |
Trade and other receivables
| 31 October | 31 October | 30 April | |||
| 2019 | 2018 | 2019 | |||
| Unaudited | Unaudited | Audited | |||
| £ | £ | £ | |||
| Trade debtors | - | 5,535 | 4,795 | ||
| Amounts due from director | 3,085 | 16,595 | 15,375 | ||
| Other receivables | 15,412 | 18,477 | 10,450 | ||
| Prepayments and accrued income | - | 4,600 | 4,600 | ||
| 18,497 | 45,207 | 35,220 |
Share capital
| 31 October | 31 October | 30 April | |
| 2019 | 2018 | 2019 | |
| Unaudited | Unaudited | Audited | |
Allotted, issued, and fully paid Ordinary shares of £0.0025 each | (restated) £ | (restated) £ | (restated) £ |
| Opening balance | 511,837 | 511,837 | 511,837 |
| Allotments: | |||
| 17 October 2019 - shares issued at 2.4p each resulting in premium of £128,104 | 14,896 | - | - |
| Closing balance | 526,733 | 511,837 | 511,837 |
| 31 October | 31 October | 30 April | |
| 2019 | 2018 | 2019 | |
| Unaudited | Unaudited | Audited | |
Allotted, issued, and fully paid Ordinary shares of £0.0025 each | (restated) No | (restated) No | (restated) No |
Opening balance | 2,047,350 | 2,047,350 | 2,047,350 |
| Allotments: | |||
| 17 October 2019 - shares issued at 2.4p each resulting in premium of £128,104 | 5,958,333 | - | - |
| Closing balance | 8,005,683 | 2,047,350 | 2,047,350 |
Note:
Further to the approval of shareholders at a General Meeting of the Company on 11 October 2019 a Capital Reorganisation of the Company was undertaken whereby a consolidation of the Ordinary Shares of £0.0025 on a one for 100 basis was undertaken. The Ordinary Shares were simultaneously sub-divided back into Ordinary Shares of £0.0025.
The original opening balances for allotted, issued and fully paid shares of £0.0025 each have been restated from the pre-consolidation 204,734,976 shares to the post consolidation 2,047,350 shares.
Trade and other payables
| 31 October | 31 October | 30 April | |||
| 2019 | 2018 | 2019 | |||
| Unaudited | Unaudited | Audited | |||
| £ | £ | £ | |||
| Trade payables | 141,877 | 226,212 | 262,054 | ||
| Accruals Other Payables | 15 - | 90,535 - | 26,800 13,200 | ||
| Loan from related party | 26,000 | 87,260 | 94,260 | ||
| 167,892 | 404,007 | 396,314 |
