29 August 2013
BISICHI MINING PLC
Interim Results for the period ended 30 June 2013
A STEADY START TO 2013
For the six months ending 30 June 2013
- Group Revenues: £19.097 million (2012: £16.477 million)
- EBITDA: £3.184 million (2012: £2.209 million)
- EPS (basic): 07p (2012: 10.86p)
- Net Assets per share: £1.72 (2012: £1.65)
Sir Michael Heller, Chairman, states:
“In the first half of this year we have continued to benefit from steady coal production at Black Wattle and strong demand for our products both of which have contributed to a satisfactory profit.”
END
For further information, please call:
Andrew Heller/Garrett Casey Bisichi Mining PLC 020 7415 5030
Bisichi Mining PLC
Half year review – 30 June 2013
We are pleased to report to shareholders that for the six month period ending on 30 June 2013, Bisichi Mining achieved EBITDA of £3.2million (2012: £2.2 million). These results reflect the strong performance of our South African coal mining subsidiary, Black Wattle Colliery. The physical demand for the lower quality coal, which we are currently mining at Black Wattle, has remained strong in both our domestic and export markets during the first six months of 2013. In particular, the South African coal market has continued to benefit from stable market conditions and the significantly improved performance of Transnet, the South African railway network.
During this period Black Wattle has accessed successfully a number of additional opencast pits. The transition into these new areas has ensured that our monthly production has been maintained at an average of 145,000 metric tonnes per month. Looking forward, we expect monthly production to remain at these same levels for the remainder of 2013 although we will be mining into much deeper reserves.
The Company’s UK retail property portfolio, which is managed by London & Associated Properties PLC, continues to perform well despite the ongoing difficulties in the UK retail property sector. Voids across the portfolio continue to remain low.
Your directors intend to pay an interim dividend of 1p per share which will be paid on the 31 January 2014, to shareholders on the register at the close of business on 3 January 2014.
On behalf of the Board we would like to thank all our staff for their hard work during the first six months of the year.
Sir Michael Heller Andrew Heller
Chairman Managing Director
28 August 2013
Bisichi Mining PLC
Consolidated income statement
for the six months ended 30 June 2013
| Unaudited 6 months ended 30 June | Unaudited 6 months ended 30 June | Audited Year ended 31 December | |||
| 2013 | 2012 | 2012 | |||
| Notes | £000 | £000 | £000 | ||
| Group revenue | 1 | 19,097 | 16,477 | 35,962 | |
| Operating costs | (17,492) | (15,268) | (33,088) | ||
| Operating profit on trading activities | 1,605 | 1,209 | 2,874 | ||
| Decrease in value of investment properties | – | – | (456) | ||
| (Loss)/gains on held for trading investments | (48) | (54) | 39 | ||
| Operating profit | 1 | 1,557 | 1,155 | 2,457 | |
| Share of profit /(loss) in joint ventures | 34 | 47 | (137) | ||
| Profit before interest and taxation | 1,591 | 1,202 | 2,320 | ||
| Interest receivable | 154 | 122 | 281 | ||
| Interest payable | (170) | (205) | (411) | ||
| Profit before taxation | 1 | 1,575 | 1,119 | 2,190 | |
| Income tax | 2 | (404) | 95 | (650) | |
| Profit for the period | 1,171 | 1,214 | 1,540 | ||
| Attributable to: | |||||
| Equity holders of the company | 1,063 | 1,147 | 1,295 | ||
| Non-controlling interest | 108 | 67 | 245 | ||
| Profit for the period | 1,171 | 1,214 | 1,540 | ||
| Earnings per share – basic | 3 | 10.07p | 10.86p | 12.27p | |
| Earnings per share – diluted | 3 | 9.92p | 10.57p | 12.08p | |
Bisichi Mining PLC
Consolidated statement of comprehensive income
for the six months ended 30 June 2013
| Unaudited 6 months ended 30 June | Unaudited 6 months ended 30 June | Audited Year ended 31 December | ||
| 2013 | 2012 | 2012 | ||
| £000 | £000 | £000 | ||
| Profit for the period | 1,171 | 1,214 | 1,540 | |
| Other comprehensive income: | ||||
| Exchange differences on translation of foreign operations | (367) | (143) | (391) | |
| Other comprehensive income for the period, net of tax | (367) | (143) | (391) | |
| Total comprehensive income for the period | 804 | 1,071 | 1,149 | |
| Attributable to: | ||||
| Equity shareholders | 738 | 1,011 | 936 | |
| Non-controlling interest | 66 | 60 | 213 | |
| Total comprehensive income for the period | 804 | 1,071 | 1,149 | |
| Bisichi Mining PLC | ||||
| Consolidated Balance Sheet | ||||
| as at 30 June 2013 | ||||
| Unaudited 30 June | Unaudited 30 June | Audited 31 December | ||
| 2013 | 2012 | 2012 | ||
| Assets | £000 | £000 | £000 | |
| Non-current-assets | ||||
| Value of investment properties attributable to the group | 11,612 | 12,068 | 11,612 | |
| Fair value of head leases | 198 | 204 | 202 | |
| Property | 11,810 | 12,272 | 11,814 | |
| Reserves, plant and equipment | 8,764 | 7,887 | 8,638 | |
| Investments in joint ventures | 3,125 | 1,454 | 3,061 | |
| Loan to joint venture | 1,080 | 1,138 | 1,117 | |
| Other investments | 158 | 148 | 131 | |
| Total non-current assets | 24,937 | 22,899 | 24,761 | |
| Current assets | ||||
| Inventories | 1,185 | 2,085 | 1,876 | |
| Trade and other receivables | 7,926 | 7,010 | 7,604 | |
| Corporation tax recoverable | 45 | 47 | 49 | |
| Held for trading investments | 737 | 678 | 787 | |
| Cash and cash equivalents | 2,540 | 1,346 | 1,802 | |
| 12,433 | 11,166 | 12,118 | ||
| Non-current assets held for sale | – | 1,820 | – | |
| Total current assets | 12,433 | 12,986 | 12,118 | |
| Total assets | 37,370 | 35,885 | 36,879 | |
| Liabilities | ||||
| Current liabilities | ||||
| Borrowings | (7,840) | (6,898) | (6,186) | |
| Trade and other payables | (7,477) | (8,395) | (9,218) | |
| Current tax liabilities | (118) | (102) | (2) | |
| Total current liabilities | (15,435) | (15,395) | (15,406) | |
| Non-current liabilities | ||||
| Borrowings | – | – | (86) | |
| Provision for rehabilitation | (960) | (1,002) | (989) | |
| Finance lease liabilities | (198) | (204) | (202) | |
| Deferred tax liabilities | (2,606) | (1,624) | (2,437) | |
| Total non-current liabilities | (3,764) | (2,830) | (3,714) | |
| Total liabilities | (19,199) | (18,225) | (19,120) | |
| Net assets | 18,171 | 17,660 | 17,759 | |
| Equity | ||||
| Share capital | 1,056 | 1,056 | 1,056 | |
| Share premium | 169 | 169 | 169 | |
| Translation reserve | (1,130) | (582) | (805) | |
| Other reserves | 558 | 507 | 528 | |
| Retained earnings | 17,008 | 16,219 | 16,367 | |
| Total equity attributable to equity shareholders | 17,661 | 17,369 | 17,315 | |
| Non-controlling interest | 510 | 291 | 444 | |
| Total equity | 18,171 | 17,660 | 17,759 | |
Bisichi Mining PLC
Consolidated Cash Flow Statement
For the six months ended 30 June 2013
| Unaudited 30 June | Unaudited 30 June | Audited 31 December | ||
| 2013 | 2012 | 2012 | ||
| £000 | £000 | £000 | ||
| Cash flows from operating activities | ||||
| Operating profit | 1,557 | 1,155 | 2,457 | |
| Depreciation | 1,593 | 1,007 | 2,253 | |
| Unrealised gain/(loss) on investments held for trading | 48 | 54 | (39) | |
| Unrealised gain on investment properties | – | – | 456 | |
| Share based payment expense | 30 | 7 | 27 | |
| Realised share of profit in joint venture | 34 | 33 | 64 | |
| Increase in working capital | (1,489) | (188) | (1,478) | |
| Net interest paid | (16) | (83) | (130) | |
| Income tax (paid)/received | – | (60) | 83 | |
| Cash flow from operating activities | 1,757 | 1,925 | 3,693 | |
| Cash flows from investing activities | (2,484) | (1,153) | (3,665) | |
| Cash flows from financing activities | (371) | (2,264) | (550) | |
| Net decrease in cash and cash equivalents | (1,098) | (1,492) | (522) | |
| Cash and cash equivalents at 1 January | 718 | 1,114 | 1,114 | |
| Exchange adjustment | 93 | 42 | 126 | |
| Cash and cash equivalents at end of period | (287) | (336) | 718 | |
| Cash and cash equivalents | ||||
| For the purposes of the cash flow statement, cash and cash equivalents comprise the following balance sheet amounts: | ||||
|
Cash and cash equivalents |
2,540 | 1,346 | 1,802 | |
| Bank overdrafts | (2,827) | (1,682) | (1,084) | |
| Cash and cash equivalents at end of period | (287) | (336) | 718 | |
Bisichi Mining PLC
Consolidated statement of changes in shareholders’ equity
for the six months ended 30 June 2013
| Share | Share | Translation | Other | Retained | Non-
controlling |
Total | |||
| capital | premium | reserve | reserves | earnings | Total | Interest | Equity | ||
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | ||
| Balance as at 1 January 2012 | 1,056 | 169 | (446) | 500 | 15,494 | 16,773 | 231 | 17,004 | |
| Profit for the period | – | – | – | – | 1,147 | 1,147 | 67 | 1,214 | |
| Exchange adjustment | – | – | (136) | – | – | (136) | (7) | (143) | |
| Total comprehensive income for the period | – | – | (136) | – | 1,147 | 1,011 | 60 | 1,071 | |
| Dividend | – | – | – | – | (422) | (422) | – | (422) | |
| Equity share options | – | – | – | 7 | – | 7 | – | 7 | |
| Balance at 30 June 2012 | 1,056 | 169 | (582) | 507 | 16,219 | 17,369 | 291 | 17,660 | |
| Balance as at 1 January 2012 | 1,056 | 169 | (446) | 500 | 15,494 | 16,773 | 231 | 17,004 | |
| Revaluation of investment properties | – | – | – | – | (456) | (456) | – | (456) | |
| Other income statement movements | – | – | – | – | 1,751 | (1,751) | 245 | 1,996 | |
| Profit for the year | – | – | – | – | 1,295 | 1,295 | 245 | 1,540 | |
| Exchange adjustment | – | – | (359) | – | – | (359) | (32) | (391) | |
| Total comprehensive income for the year | – | – | (359) | – | 1,295 | 936 | 213 | 1,149 | |
| Dividend | – | – | – | – | (422) | (422) | – | (422) | |
| Equity share options | – | – | – | 28 | – | 28 | – | 28 | |
|
Balance at 31 December 2012 |
1,056 | 169 | (805) | 528 | 16,367 | 17,315 | 444 | 17,759 | |
| Profit for the year | – | – | – | – | 1,063 | 1,063 | 108 | 1,171 | |
| Exchange adjustment | – | – | (325) | – | – | (325) | (42) | (367) | |
| Total comprehensive income for the period | – | – | (325) | – | 1,063 | 738 | 66 | 804 | |
| Dividend | – | – | – | – | (422) | (422) | – | (422) | |
| Equity share options | – | – | – | 30 | – | 30 | – | 30 | |
| Balance at 30 June 2013 | 1,056 | 169 | (1,130) | 558 | 17,008 | 17,661 | 510 | 18,171 | |
ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS:
The results for the six months ended 30 June 2013 have been prepared in accordance with International Financial Reporting Standards (IFRS). The principal accounting policies applied are the same as those set out in the Financial Statements for the year ended 31 December 2012.
- Segmental analysis
For management purposes, the Group is organised into two operating Divisions, Mining and Property. These Divisions are the primary basis on which the Group reports its segment information. This is consistent with the way the Group is managed and with the format of the Group’s internal financial reporting.
| Unaudited 30 June |
Unaudited 30 June | Audited 31 December | ||||||
| 2013 | 2012 | 2012 | ||||||
| Revenue | ||||||||
| Mining | 18,597 | 15,950 | 34,952 | |||||
| Property | 484 | 489 | 957 | |||||
| Other | 16 | 38 | 53 | |||||
| 19,097 | 16,477 | 35,962 | ||||||
| Operating profit | ||||||||
| Mining | 1,319 | 834 | 2,162 | |||||
| Property | 270 | 339 | 210 | |||||
| Other | (32) | (18) | 85 | |||||
| 1,557 | 1,155 | 2,457 | ||||||
| Share of profit/(loss) in joint ventures | 34 | 47 | (137) | |||||
| Interest receivable | 154 | 122 | 281 | |||||
| Interest payable | (170) | (205) | (411) | |||||
| Profit before taxation | 1,575 | 1,119 | 2,190 | |||||
- Taxation
Based on the results for the period:
| Corporation tax at 23.5% (2012: 26.5%) | 114 | 102 | 7 | |
| Prior year adjustment – UK | (1) | – | – | |
| 113 | 102 | 7 | ||
| Deferred taxation | 291 | (197) | 643 | |
| 404 | (95) | 650 | ||
- Earnings per share
Both the basic and diluted earnings per share calculations are based on a profit of £1,063,000 (2012: £1,147,000). The basic earnings per share has been calculated on 10,556,839 (2012: 10,556,839) ordinary shares being in issue during the year. The diluted earnings per share has been calculated on the number of shares in issue of 10,556,839 (2012: 10,556,839) plus the dilutive potential ordinary shares arising from share options of 155,712 (2012: 296,255) totalling 10,712,551 (2012: 10,853,094).
- Properties
Properties are included at valuation as at 31 December 2012 plus additions in the period ended 30 June 2013.
- Related Parties
The related parties and the nature of costs recharged are as disclosed in the group’s annual financial statements for the year ended 31 December 2012. The group paid management fees of £68,750 (30 June 2012: £103,125, 31 December 2012: £172,000) to London & Associated Properties PLC, an associated company.
- Financial information
The above financial information does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The figures for the year ended 31st December 2012 are based upon the latest statutory accounts, which have been delivered to the Registrar of Companies; the report of the auditors on those accounts was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.
As required by the Disclosure and Transparency Rules of the UK’s Financial Services Authority, the interim financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) and in accordance with both IAS 34 ‘Interim Financial Reporting’ as adopted by the European Union and the disclosure requirements of the Listing Rules.
The half year results have not been audited or subject to review by the company’s auditors.
The annual financial statements of Bisichi Mining PLC are prepared in accordance with IFRS as adopted by European Union. The same accounting policies are used for the six months ended 30 June 2013 as were used for the year ended 31 December 2012.
The assessment of new standards, amendments and interpretations issued but not effective, are not anticipated to have a material impact on the financial statements.
The largest area of estimation and uncertainty in the interim financial statements is in respect of the directors’ judgements and estimates surrounding the life of mine and its reserves as well as to a lesser extent the valuation of investment properties (which are not re-valued at the half year end). Other areas of estimation and uncertainty are referred to in the group’s annual financial statements.
There is no material seasonal impact on the group’s financial performance.
Taxes on income in the interim periods are accrued using tax rates expected to be applicable to total annual earnings.
The interim financial statements have been prepared on the going concern basis as the Directors are satisfied the group has adequate resources to continue in operational existence for the foreseeable future.
7 Dividend
The interim dividend in respect of 2012, totalling £105,000 was paid on the 1st of February 2013. The final dividend in respect of 2012, totalling £317,000 was approved by the shareholders at the Annual General Meeting held on the 5th June 2013 and was paid on the 2nd August 2013. The final dividend in respect of 2012 is included as a liability in these interim financial statements.
A proposed interim dividend for the year ended 31 December 2013 totalling £105,000 was approved by the Board of Directors on 28th August 2013 and has not been included as a liability in these Interim Financial Statements.
8 Principal risks and uncertainties
The Group has an established risk management process which works within the corporate governance framework as set out in the 2012 Annual Report and Accounts. Risks and uncertainties identified by the Group are set out on page 11 of the 2012 Annual Report & Accounts and are reviewed on an ongoing basis. There have been no significant changes in the first half of 2013 to the principle risks and uncertainties as set out in the 2012 Annual Report & Accounts.
The principal risks as stated in the accounts reflect the challenging environment in which the business operates and are considered under the following broad headings:
Mining:
– Coal price
– Coal washing process
– Health & safety
– Coal qualities
– Currency movements
– Regulatory requirements & permissions
– Transport
– Power supply
– Flooding
– Environment
– Labour
Property:
– Property valuation
– Occupancy
9 Board approval
These interim results were approved by the Board of Bisichi Mining on 28th August 2013.
DIRECTORS RESPONSIBILITY STATEMENT AND REPORT ON PRINCIPAL RISKS AND UNCERTAINITIES
Responsibility Statement
We confirm to the best of our knowledge:
(a) the condensed set of financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;
(b) the interim management report includes a fair review of the information required by:
(1) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
(2) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during the period; and any changes in the related party transactions described in the last annual report that could do so.
Sir Michael Heller Andrew Heller
Chairman Managing Director
28 August 2013
DIRECTORS AND ADVISERS
Directors Sir Michael A Heller MA, FCA (Chairman)
Andrew R Heller MA, ACA (Managing Director)
Robert Grobler PR Cert Eng (Mining Director)
Garrett Casey CA (SA) (Finance Director)
C A Joll MA (Non-executive)
John A Sibbald MA (Non-executive)
Secretary & Registered office
Heather A Curtis ACIS
24 Bruton Place
London W1J 6NE
Black Wattle Colliery – Directors
Robert Corry (Chairman)
Andrew Heller (Managing Director)
Garrett Casey (Finance Director)
Robert Grobler (Mining Director)
Ethan Dube (Commercial Director)
General mine manager Luis Pinel
Registrars and transfer office
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Telephone 0871 664 0300
(Calls cost 10p per minute + network extras)
or +44 208 639 3399 for overseas callers
Website: www.capitaregistrars.com
E-mail: ssd@capitaregistrars.com
Company registration number 112155 (Incorporated in England and Wales)
Website: www.bisichi.co.uk
E-mail: admin@bisichi.co.uk
