Block Commodities Ltd (BLCC)
Block Commodities Ltd: Interim Results for the 6 months to 31 December 2019
01-Apr-2020 / 07:00 GMT/BST
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Block Commodities Limited / Epic: BLCC / Sector: Mining
Block Commodities Limited ('Block Commodities' or 'the Company')
Interim Results for the 6 months to 31 December 2019
Chairman's Statement
I am pleased to present the interim report for the six months ended 31
December 2019. As announced on 27 March 2019, the Company is looking to for
opportunities to enter the Medicinal Cannabis Market. Investment in this
sector was formally approved by shareholders at a General Meeting held on 27
December 2019.
Our Farmer 3.0 program will continue with a potential pilot to grow
medicinal grade cannabis with a farmers' cooperative in Zambia. We are
currently awaiting the licence to be issued. Block Commodities will be the
exclusive of- taker and this opportunity offers the Company assured access
to quality product without the need for significant upfront capital
expenditure.
Our option to acquire Greenbelt Company Limited was extended on 30 January
2020. Further progress remains on hold pending legislation in Sierra Leone.
Ian Tordoff was appointed CEO on 21 November 2019 after joining as a
consultant earlier in the year. Ian has brought together an impressive
Scientific Advisory Team who will be helping the Company to introduce
downstream cannabis-based nutraceuticals and wellness products.
The exploration licence for the Company's original potash project at Lac
Dinga in the Republic of Congo was renewed, for a further two years in July
2019. Unfortunately, our farm-in partner, African Agronomix Limited, was not
able to commence its exploratory drilling in the remaining part of the
regional dry season. Planning for the next drilling campaign is underway,
however COVID-19 restrictions, both in the country and the wider region
could adversely impact the ability to mobilise activity as planned
Results
The results for the period showed an operating loss of $0.4m (HY19: loss
$0.6m). Finance charges were lower at $0.1m (HY98: $0.2m) resulting in a
loss before tax of $0.4m (HY18: $0.6m). Cash balances at 31 December 2019
were $45,000, (201 8: $1,000).
At 31 December 2019, the Group is reporting Net Liabilities of $559,000. The
Company is currently in negotiations with the lender of the loan note with a
view to the conversion of the loan note into equity. This would both return
the Group balance sheet to a net asset position, as well as reduce the
accruing finance costs going forward.
Board changes
I would like to welcome Ian Tordoff to the board as CEO to lead the Company
in its new phase of development. I have stepped back from my executive role.
Subsequent to the period end, Neil Clayton was appointed Finance director.
Outlook
The Company is looking to work with its Scientific Advisory Team to identify
suitable products and opportunities in the nutraceuticals and wellness
sectors. These initiatives will require the Company to raise additional
capital.
COVID-19 has had a significant impact already in the capital markets and in
order to ensure any funds raised are deployed to maximum effect, the board
intends to limit expenditure to essential corporate costs whilst keeping a
close watch on opportunities for the business that offer investor value.
Chris Cleverly
Chairman
31 March 2020
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019
Unaudited Consolidated Income Statement
For the half year to 31 December 2019
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 December 31 December 30 June
2019 2018 2019
Note $'000 $'000 $'000
Operating (248) (453) (778)
expenses
Impairment of:
- loan to - (50 (50)
unquoted
company
Other gains (42) 97 119
/(losses)
Operating loss (290) (406) (709)
Net finance (99) (158) (364)
expense
Loss before (389) (564) (1,073)
taxation
Income tax - - -
expense
Loss for the (389) (564) (1,073)
period
attributable to
owners of the
parent company
Loss per share: 5 (0.007 cents) (0.01 cents)
basic and
diluted
(0.02 cents)
All results relate to continuing activities
Unaudited Consolidated Comprehensive Income Statement
For the half year to 31 December 2019
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 December 31 December 30 June
2019 2018 2019
$'000 $'000 $'000
Loss for the period (389) (564) (1,073)
Other comprehensive income
Exchange translation - (12) 1
differences on foreign
operations
Total comprehensive income (389) (576) (1,072)
for the period attributable
to owners of the parent
company
Unaudited Consolidated Statement of Financial Position
As at 31 December 2019
Unaudited Unaudited Audited
31 31 30 June
December December
2019
2019 2018
Note $'000 $'000 $'000
Non-current
assets
Intangible assets: exploration 3,000 3,000 3,000
activities 6
Property plant and equipment - 3 -
Total non-current 3,000 3,003 3,000
assets
Current assets
Trade and other 37 1 25
receivables
Cash and cash 45 1 80
equivalents
Total current 82 2 105
assets
Total assets 3,082 3,005 3,105
Current
liabilities
Trade and other (1,582) (1,797) (2,076)
payables
Loan note 7 (2,059) (1,635) (1,951)
Net (559) (427) (922)
(liabilities)/ass
ets
Equity
Issued capital 8 19,907 19,345 19,341
Share based 3,036 2,882 2,850
payment reserve
Foreign exchange translation (572) (586) (572)
reserve
Retained earnings (22,930) (22,068) (22,541)
Total equity (559) (427) (922)
attributable to
equity holders
Unaudited Consolidated Statement of Cash Flows
For the half year to 31 December Unaudited Unaudited Audited
2018
6 months 6 months year
to to ended
31 31 30 June
December December
2019
2019 2018
Operating $'000 $'000 $'000
activities
Loss before tax (389) (564) (1,073)
Adjustments for:
Impairment of loan to unquoted - 50 50
company
Depreciation - 3 6
Movements in exchange 45 (106) (109)
Net interest 99 158 364
expense
Operating cash flow before (245) (460) (702)
movements in working capital
Working capital adjustments:
- Decrease / (increase) in - 10 10
inventory
- Decrease / (increase) in - 26 27
receivables
- Increase / (decrease) in 123 226 298
payables
Cash used in (122) (198) (427)
operations
Net interest paid - - -
Net cash outflow from operating (122) (198) (427)
activities
Investing
activities
Loan to unquoted company - (50) (50)
Net cash flow from investing - (50) (50)
activities
Financing activities
Issue of shares 87 96 96
Issue of convertible loan note 308
Net cash flow from financing 87 96 404
activities
Net decrease in cash and cash (35) (152) (73)
equivalents
Cash and cash equivalents at 80 153 153
start of the period
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