TIDMDKE

RNS Number : 2583C

Dukemount Capital PLC

09 June 2023

Dukemount Capital Plc

("Dukemount" or the "Company")

Publication of Annual Report

The Board of Dukemount is pleased to announce the Company's audited financial statements for the year ended 30 April 2022.

The Annual Report will be available on the Company's corporate website at www.dukemountcapitalplc.com

Following the publication of the Annual Report, the Company is in dialogue with the FCA regarding lifting the suspension of trading in its shares.

The Board would like to re-iterate that it is very grateful to all its stakeholders for their continuing patience and understanding in this matter.

For further information, please visit www.dukemountcapitalplc.com or contact:

Dukemount Capital Plc Email: info@dukemountcapitalplc.com

Geoffrey Dart / Paul Gazzard

Peterhouse Capital Limited Tel: +44 (0) 207 469 0930

Lucy Williams/Duncan Vasey

Chairman's Statement

I hereby present the annual financial statements for the year ended 30 April 2022. During the year the Group reported a loss of GBP1,127,395 (2021 - loss of GBP913,827). These losses arose in the course of the Group: pursuing transactions in its normal course of business as per its original stated mandate of long dated income generation ; impairment costs associated with two development projects; maintaining the Company's listing on the Official List of the UK Listing Authority by way of a standard listing including consultancy fees, professional fees and directors' fees. As at the Statement of Financial Position date the Group had GBP19,214 (2021: GBP24,657) of cash balances.

During the year the Company entered into a 12-month convertible unsecured loan facility for GBP1,000,000 of which GBP500,000 was available immediately and an additional GBP500,000 available conditional on certain milestones.

In May 2021, the Company entered into a Joint Venture Agreement in relation to flexibility power expert HSKB Ltd ("HSKB"). Pursuant to the Joint Venture Agreement, Dukemount acquired 50% of the issued share capital of HSKB for nominal value. The Company is deemed to exercise control through its direct and indirect shareholding of DKE Flexible Energy and is therefore treated as a subsidiary with full consolidation into the Group financial statements .

In September 2021, the Company signed off a subordinated funding package to enable completion of the senior debt funding for gas peaking projects in September 2021 and announced in October 2021 that HSKB had successfully completed the purchase of two special purpose companies, each company containing an 11kV gas peaking facility, ready to build, with full planning permission and grid access. HSKB has also changed its name to DKE Flexible Energy Limited ("DKE Energy"). Following the year end, the Company announced that HSKB had completed the sale of the previously purchased two special purpose companies containing the 11kV gas peaking facility for an aggregate sale price of GBP350,000. Unfortunately the Company had little choice but to pursue the sale despite having the funding in place to construct these assets. The listing rules for standard list companies changed in December 2022 to require a minimum market capitalization of GBP30m for any reverse, transaction or listed value of the company, far below the combined value of these two assets in the state they were being purchased or post construction. Thus, the regulatory environment that evolved for Dukemount, as a standard listed company, during the transaction to buy and then fund the construction of the two assets meant the Company had no option but to dispose of these assets. The proceeds of the sale, GBP350,000 in aggregate, have been used to repay a portion of the sums owing to the lenders of the subordinated funding package.

Further to the disposal the lenders agreed to advance net proceeds of GBP50,000 in aggregate in addition to restructuring their existing funding arrangement. The maturity date for the existing debt plus the further advance is to be 24 months from the date of the Advance (being 10 October 2024). The proceeds of the further advance have been used to settle accrued liabilities of the Company.

The board has taken steps through restructuring the Company's funding routes, as described in detail in the RNS announcement of 11 October 2022, to ensure that the financial position and prospects of the Company are maintained to facilitate a future reverse transaction.

I would like to thank all those who have assisted and supported the Group during the year.

Geoffrey Dart

Director

7 June 2023

INDEPENT AUDITOR 'S REPORT TO THE MEMBERS OF DUKEMOUNT CAPITAL PLC

Opinion

We have audited the financial statements of Dukemount Capital plc (the ' group ') for the year ended 30 April 2022 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Parent Company Statements of Financial Position, the Consolidated and Parent Company Statements of Changes in Equity, the Consolidated and Parent Company Statements of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards and as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006.

In our opinion:

-- the financial statements give a true and fair view of the state of the group's and of the parent company's affairs as at 30 April 2022 and of the group's loss for the year then ended;

-- the group financial statements have been properly prepared in accordance with UK-adopted international accounting standards;

-- the parent company financial statements have been properly prepared in accordance with UK-adopted international accounting standards and as applied in accordance with the provisions of the Companies Act 2006; and

-- the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw attention to note 2 in the financial statements, which indicates that the group is dependent on successful fundraising or a future reverse takeover transaction to continue as a going concern. The group has no contracts in place at year-end or after year-end, with no trading plans. Additionally, the group has a cash balance at the date of approval of the financial statements that would not be able to support its operations and overheads for the following twelve months. As stated in note 2, these events or conditions, along with the other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

It is a requirement of IFRS that, in determining that the going concern basis is appropriate, the directors must consider a period of at least twelve months from the date of approval of the accounts.

Our work in relation to going concern included:

   --       Discussing future plans with management and review of budgets/forecast; 

-- Considering the appropriateness and sensitivity of the assumptions used in the preparation of the forecasts;

-- Reviewing the results of the subsequent events and assessing the impact on the financial statements ;

   --       Reading board minutes for references to financing difficulties; 

-- Considering whether management have used all relevant information in their assessment and enquiring whether any known events or conditions beyond the period of assessment may affect going concern; and

-- Reviewing and considering the impact of the new and amended borrowing arrangements entered into after the year-end to assist the group to continue its operations.

In view of the requirement to raise additional funds there is a material uncertainty with regard to going concern because although the directors are confident they can raise adequate funding that funding has not been agreed.

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the company's ability to continue to adopt the going concern basis of accounting included reviewing management's assessment and going concern forecasts for the next twelve months and forming an opinion on whether the current financial position has the ability to fund the group's costs for that period.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Our application of materiality

We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements on our audit and on the financial statements. For the purposes of determining whether the financial statements are free from material misstatement, we define materiality as the magnitude of misstatement that makes it probable that the economic decisions of a reasonably knowledgeable person would be changed or influenced. We also determine a level of performance materiality which we use to assess the extent of testing needed to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for the financial statements as a whole.

We determined the group materiality for the financial statements as a whole to be GBP27,000 (2021: GBP33,000), with the parent company materiality set at GBP25,000 (2021: GBP31,000). Performance materiality was set at GBP16,000 (2021: GBP23,100) and GBP15,000 (2021: GBP21,700) respectively. The overall materiality was based on 3% of net assets (2021: 5% of loss for the year). This benchmark is considered appropriate because the principal driving force of the business is the potential for a reverse takeover or further fundraising on its asset position. Several adjustments were identified during the course of the audit, however the materiality level of GBP27,000 was still considered appropriate with no revisions necessary.

We agreed with the board that we would report all audit differences identified during the course of our audit in excess of our triviality level of GBP1,350 (2021: GBP1,650) and GBP1,250 (2021: GBP1,550) for the group and parent company respectively. There were certain misstatements identified during the course of our audit that were individually considered to be material and adjusted for by management.

Our approach to the audit

In designing our audit approach, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular we assessed the areas involving significant accounting estimates and judgements by the directors in respect of the recoverability of the debtors and management's assessment in going concern and considered future events that are inherently uncertain. We also addressed the risk of management override of internal controls, including evaluation of whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

All subsidiaries were fully audited by the same audit team, with a full scope audit being performed on the complete financial information of the subsidiaries.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material uncertainty related to going concern section we have determined the matters described below to be the key audit matters to be communicated in our report.

 
 Key Audit Matter                           How our scope addressed this matter 
 Management override of controls 
                                           ========================================= 
 Under ISA (UK) 240 The Auditor's           We considered the potential for 
  Responsibilities Relating to Fraud         the manipulation of financial results 
  in an Audit of Financial Statements,       to be a significant fraud risk. 
  there is a presumed significant            Our work in this area included: 
  risk of management override of             A review of journals processed 
  the system of internal controls.           during the period under review 
  The primary responsibility for             and in the preparation of the financial 
  the prevention and detection of            statements to determine whether 
  fraud rests with management. Their         these were appropriate. 
  role in the detection of fraud             A review of key estimates, judgements 
  is an extension of their role in           and assumptions within the financial 
  preventing fraudulent activity.            statements for evidence of management 
  They are responsible for establishing      bias, and agreeing to appropriate 
  a sound system of internal control         supporting documentation. 
  designed to support the achievement        An assessment of whether the financial 
  of policies, aims and objectives           results and accounting records 
  and to manage the risks facing             included any significant or unusual 
  the entity; this includes the risk         transactions where the economic 
  of fraud.                                  substance was not clear. 
  Our audit is designed to provide 
  reasonable assurance that the financial 
  statements as a whole are free 
  from material misstatement, whether 
  caused by fraud or error. 
  ISAs (UK) require the auditor to: 
  Identify fraud risks during the 
  planning stages. 
  Inquire of management about risks 
  of fraud and the controls put in 
  place to address those risks. 
  Understand the oversight given 
  by those charged with governance 
  of management's processes over 
  fraud. 
  Consider of the effectiveness of 
  management's controls designed 
  to address the risk of fraud. 
  The audit team identified the risk 
  as a Key Audit Matter, given the 
  possible investment from third 
  parties into the business, in which 
  case these parties will be interested 
  in confirming that no issues have 
  arisen through the way management 
  has operated the group. 
                                           ========================================= 
 

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report10. Our opinion on the group and parent company financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion the part of the directors' remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006.

In our opinion, based on the work undertaken in the course of the audit:

-- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

I n the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

-- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-- the parent company financial statements and the part of the directors' remuneration report to be audited are not in agreement with the accounting records and returns; or

   --       certain disclosures of directors' remuneration specified by law are not made; or 
   --       we have not received all the information and explanations we require for our audit. 

Responsibilities of directors

As explained more fully in the statement of directors' responsibilities, the directors are responsible for the preparation of the group and parent company financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the group and parent company financial statements, the directors are responsible for assessing the group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

Auditor 's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-- We obtained an understanding of the group and parent company and the sector in which they operate to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, industry research, and the application of our cumulative audit knowledge and experience of the sector.

-- We determined the principal laws and regulations relevant to the group and parent company in this regard to be those arising from Companies Act 2006, LSE listing rules, and Disclosure and Transparency Rules.

-- We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the group and parent company with those laws and regulations. These procedures included, but were not limited to:

o Enquiries of management, review of minutes, and review of legal and regulatory correspondence.

-- We also identified the risks of material misstatement of the financial statements due to fraud. We considered the non-rebuttable presumption of a risk of fraud arising from management override of controls as a key audit matter.

-- As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor' s report.

Other matters which we are required to address

We were appointed by the Board on 25 November 2022 to audit the financial statements for the year ended 30 April 2022 and subsequent financial periods. Our total uninterrupted period of engagement is 10 years, covering the periods ended 30 April 2012 to 30 April 2022.

The non-audit services prohibited by the FRC's Ethical Standard were not provided to the group or the parent company and we remain independent of the group and the parent company in conducting our audit.

Our audit opinion is consistent with the additional report to the audit committee.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone, other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Eric Hindson (Senior Statutory Auditor) 15 Westferry Circus

For and on behalf of PKF Littlejohn LLP Canary Wharf

Statutory Auditor

London E14 4HD

7 June 2023

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

YEARED 30 APRIL 2022

The Accounting Policies and Notes form part of the financial statements.

 
                                    Note      Group         Group 
                                               2022          2021 
 Continuing operations                     GBP           GBP 
 Revenue from contracts with 
  customers                          3     -             3,296,730 
 Cost of sales                             -             (3,483,700) 
                                           _______       _______ 
 
 Gross Profit/(Loss)                       -             (186,970) 
 
 Other income                              5,033         14,750 
 Administrative expenses             4     (185,775)     (741,636) 
 Impairment of goodwill              9     (125,101)     - 
 Impairment of receivables           10    (578,779)     - 
                                           _______       _______ 
 
 Operating loss                            (884,622)     (913,856) 
 
 Interest received                         -             29 
 Finance charges                     4     (242,773)     - 
                                           _______       _______ 
 Loss before taxation                      (1,127,395)   (913,827) 
 
 Income tax                          7     -             - 
                                           _______       _______ 
 
 Loss for the year attributable 
  to equity owners                         (1,127,395)   (913,827) 
                                           _______       _______ 
 
 Total comprehensive income 
  for the year attributable 
  to the equity owners                     (1,127,395)   (913,827) 
                                           _______       _______ 
 Total comprehensive income 
  for the year attributable 
  to: 
 Owners of Dukemount Capital 
  Plc                                      (1,176,088)   (913,827) 
 Non-controlling interests                 48,693        - 
                                           _______       _______ 
                                           (1,127,395)   (913,827) 
                                           _______       _______ 
 
 Earnings per share attributable 
  to equity owners 
 
 Basic and diluted (pence)           12    (0.0022)      (0.0020) 
                                           _______       _______ 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 APRIL 2022

 
                                 Note             30 April 2022              30 April 2021 
                                        GBP                       GBP 
 Assets 
 Non current assets 
  Intangible assets                9      350,000                   - 
                                        _______                   _______ 
                                        350,000                   - 
 Current Assets 
 
 Trade and other receivables      10    38,164                    576,316 
 Cash and cash equivalents              19,214                    24,657 
                                        _______                   _______ 
 
 Total Assets                           407,378                   600,973 
                                        _______                   _______ 
 
 Equity and Liabilities 
 
 Equity 
 
 Share capital                    13    513,535                   481,283 
 Share premium                    14    1,249,305                 1,115,035 
 Share based payments reserve           2,960                     2,960 
 Retained deficit                       (3,344,508)               (2,217,113) 
                                        _______                   _______ 
 
                                        (1,578,708)               (617,835) 
 Current Liabilities 
 
 Trade and other payables         16    1,986,086                 1,218,808 
                                        _______                   _______ 
 
 Total Equity and Liabilities           407,378                   600,973 
                                        _______                   _______ 
 
 Total equity and liabilities 
  attributable to : 
 
 Owners of Dukemount Capital 
  Plc                                   358,685                   600,793 
 Non-controlling interests              48,693                    - 
                                        _______                   _______ 
 
                                        407,378                   600,793 
                                        _______                   _______ 
 

COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 30 APRIL 2022

 
                                 Note          30 April 2022    30 April 2021 
                                        GBP                               GBP 
 
 Assets 
 Non current assets 
  Investment in Subsidiaries       8      350,601                101 
 
 
 Current Assets 
 
 Trade and other receivables      10    13,436                 133,324 
 Cash and cash equivalents              16,115                 14,505 
                                        _______                _______ 
 
 Total Assets                           380,152                147,829 
                                        _______                _______ 
 
 Equity and Liabilities 
 
 Equity 
 
 Share capital                    13    513,535                481,283 
 Share premium                    14    1,249,305              1,115,035 
 Share based payments reserve           2,960                  2,960 
 Retained deficit                       (3,321,698)            (2,190,926) 
                                        _______                _______ 
 
                                        (1,555,898)            (591,648) 
 Current Liabilities 
 
 Trade and other payables         16    1,936,050              739,477 
                                        _______                _______ 
 
 Total Equity and Liabilities           380,152                147,829 
                                        _______                _______ 
 

The Company has elected to take the exemption under Section 408 of the Companies Act 2006 from presenting the Parent Company Income Statement and Statement of Comprehensive Income. The loss for the Parent Company for the year was GBP1,130,772 (2021: GBP680,677) and the total comprehensive loss for the year was GBP1,130,772 (2021: GBP680,677).

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

YEARED 30 APRIL 2022

 
                         Share      Share       Share      Retained      Total         Non controlling   Total 
                          capital    premium     based      deficit                     interests         Equity 
                                                 payment 
                                                 reserve 
                         GBP        GBP         GBP        GBP                                           GBP 
 Balance as at 
  1 May 2020              439,033     952,211     30,499   (1,330,825)        90,918                 -        90,918 
                        ---------  ----------  ---------  ------------  ------------  ----------------  ------------ 
 
 Loss for the year              -           -          -     (913,827)     (913,827)                 -     (913,827) 
 
 Other comprehensive            -           -          -             -             -                 -             - 
  income 
                        ---------  ----------  ---------  ------------  ------------  ----------------  ------------ 
 Total comprehensive 
  income for the 
  year                          -           -          -     (913,827)     (913,827)                 -     (913,827) 
                        ---------  ----------  ---------  ------------  ------------  ----------------  ------------ 
 Transactions 
  with equity owners 
 Issue of ordinary 
  shares                   42,250     162,824          -             -       205,074                 -       205,074 
 Exercise of warrants           -           -   (27,539)        27,539             -                 -             - 
                        ---------  ----------  ---------  ------------  ------------  ----------------  ------------ 
 Total transactions 
  with owners              42,250     162,824   (27,539)        27,539       205,074                 -       205,074 
                        ---------  ----------  ---------  ------------  ------------  ----------------  ------------ 
 
 Balance as at 
  30 April 2021           481,283   1,115,035      2,960   (2,217,113)     (617,835)                 -     (617,835) 
                        ---------  ----------  ---------  ------------  ------------  ----------------  ------------ 
 
 Balance as at 
  1 May 2021              481,283   1,115,035      2,960   (2,217,113)     (617,835)                 -     (617,835) 
                        ---------  ----------  ---------  ------------  ------------  ----------------  ------------ 
 
 Loss for the year              -           -          -   (1,156,761)   (1,156,761)            29,366   (1,127,395) 
 
 Other comprehensive            -           -          -             -             -                               - 
  income 
                        ---------  ----------  ---------  ------------  ------------  ----------------  ------------ 
 Total comprehensive 
  income for the 
  year                          -           -          -   (1,156,761)   (1,156,761)            29,366   (1,127,395) 
                        ---------  ----------  ---------  ------------  ------------  ----------------  ------------ 
 Transactions with 
  equity owners 
 Issue of ordinary 
  shares                   32,252     134,270          -             -       166,522                 -       166,522 
 
 Total transactions 
  with owners              32,252     134,270          -             -       166,522                 -       166,522 
                        ---------  ----------  ---------  ------------  ------------  ----------------  ------------ 
 
 Balance as at 
  30 April 2022           513,535   1,249,305      2,960   (3,373,874)   (1,608,074)            29,366   (1,578,708) 
                        ---------  ----------  ---------  ------------  ------------  ----------------  ------------ 
 

COMPANY STATEMENT OF CHANGES IN EQUITY

YEARED 30 APRIL 2022

 
                                 Share            Share      Share            Retained              Total 
                                  Capital          premium    based payment    deficit 
                                                              reserve 
                               GBP          GBP              GBP              GBP           GBP 
 Balance as at 1 May 2020      366,166      789,671              30,499       (1,156,400)   29,936 
                              -----------  ---------------  ---------------  ------------  -------------- 
 
 Loss for the year             -            -                      -          (680,677)     (680,677) 
 
 Other comprehensive income    -            -                      -          -             - 
                              -----------  ---------------  ---------------  ------------  -------------- 
 Total comprehensive income 
  for the year                 -            -                      -          (680,677)     (680,677) 
                              -----------  ---------------  ---------------  ------------  -------------- 
 Transactions with equity 
  owners 
 Issue of ordinary shares      42,250       162,824                -          -             205,074 
 Exercise of warrants          -            -                   (27,539)      27,539        - 
                              -----------  ---------------  ---------------  ------------  -------------- 
 Total transactions with 
  owners                       42,250       162,824             (27,539)      27,539        205,074 
                              -----------  ---------------  ---------------  ------------  -------------- 
 
 Balance as at 30 April 
  2021                         481,283      1,115,035            2,960        (2,190,926)   (591,648) 
                              -----------  ---------------  ---------------  ------------  -------------- 
 
 
 Balance as at 1 May 2021      481,283   1,115,035   2,960   (2,190,926)   (591,648) 
                              --------  ----------  ------  ------------  ------------ 
 
 Loss for the year             -         -           -       (1,130,772)   (1,130,772) 
 
 Other comprehensive income    -         -           -       -             - 
                              --------  ----------  ------  ------------  ------------ 
 Total comprehensive income 
  for the year                 -         -           -       (1,130,772)   (1,130,772) 
                              --------  ----------  ------  ------------  ------------ 
 Transactions with equity 
  owners 
 Issue of ordinary shares      32,252    134,270     -       -             166,522 
 
 Total transactions with 
  owners                       32,252    134,270     -                     166,522 
                              --------  ----------  ------  ------------  ------------ 
 
 Balance as at 30 April 
  2022                         513,535   1,249,305   2,960   (3,321,698)   (1,555,898) 
                              --------  ----------  ------  ------------  ------------ 
 

CONSOLIDATED STATEMENT OF CASH FLOWS

YEARED 30 APRIL 2022

 
                                               Note   2022          2021 
                                                      GBP           GBP 
 Cash Flows from Operating Activities 
 
 Loss before taxation                                 (1,127,395)   (913,827) 
 
 
 Changes in working capital: 
 Shares issued in lieu of expenses                    30,727        - 
 Impairment of goodwill                         9     125,101       - 
 Impairment of receivables                      10    578,779       - 
 (Increase)/decrease in trade and other 
  receivables                                   10    (40,627)      33,242 
 (Decrease)/Increase in trade and other 
  payables                                      16    (232,722)     265,070 
                                                     ------------  ---------- 
 
 Net Cash generated from/(used in) 
  Operating Activities                                (666,137)     (615,515) 
                                                     ------------  ---------- 
 
 
 Cash Flows from Financing Activities 
 
 Net proceeds from issue of shares              12    -             231,761 
 Loans received                                 16    1,000,000     - 
 
 Net Cash generated from Financing 
  Activities                                            1,000,000     231,761 
                                                     ------------  ---------- 
 
 Cash Flows from Investing Activities 
 
   Investment in subsidiary                             (339,306)     - 
                                                     ------------  ---------- 
 
 
 Net cash used in Investing Activities                (339,306)     - 
 
 Net Decrease in Cash and Cash Equivalents            (5,443)       (383,754) 
                                                     ------------  ---------- 
 
 
 Cash and cash equivalents at the beginning 
  of the year                                         24,657        408,411 
                                                     ------------  ---------- 
 
 Cash and Cash Equivalents at the End 
  of the Year                                         19,214        24,657 
                                                     ------------  ---------- 
 
 

COMPANY STATEMENT OF CASH FLOWS

YEARED 30 APRIL 2022

 
                                               Note   2022          2021 
                                                      GBP           GBP 
 Cash Flows from Operating Activities 
 
 Loss before taxation                                 (1,130,772)   (680,677) 
 
 Adjustments for: 
 
 
 Changes in working capital: 
 Provision for inter company loans               10   491,628       - 
 Impairment                                       9   125,101       - 
 Shares issued in lieu of expenses                    30,727        - 
 Decrease in trade and other receivables         10   1,060         283,435 
 ( Decrease ) /increase in trade and 
  other payables                                 16   (176,828)     168,137 
                                                     ------------  ---------- 
 
 Net Cash used in Operating Activities                (659,084)     (229,105) 
                                                     ------------  ---------- 
 
 Cash Flows from Investing Activities 
 
 Funding issued/repaid from subsidiary 
  undertakings                                        -             (145,516) 
 Investment in subsidiary                             (339,306) 
                                                     ------------  ---------- 
 
 Net Cash used in Investing Activities                (339,306)     (145,516) 
                                                     ------------  ---------- 
 
 Cash Flows from Financing Activities 
 
 Net proceeds from fundraising                   12   -             231,761 
 Loans received                                  16   1,000,000     - 
 
 Net Cash generated from/used in Financing 
  Activities                                            1,000,000     231,761 
                                                     ------------  ---------- 
 
 Net Increase/(Decrease) in Cash and 
  Cash Equivalents                                    1,610         (142,860) 
                                                     ------------  ---------- 
 
 
 Cash and cash equivalents at the beginning 
  of the year                                         14,505        157,365 
                                                     ------------  ---------- 
 
 Cash and Cash Equivalents at the End 
  of the Year                                         16,115        14,505 
                                                     ------------  ---------- 
 
 

NOTES TO THE FINANCIAL STATEMENTS

YEARED 30 APRIL 2022

The Accounting Policies and Notes form part of the financial statements.

1. General Information

Dukemount Capital Plc was incorporated in the UK on 20 April 2011 as a public limited company with the name Black Lion Capital Plc. The Company subsequently changed its name to Black Eagle Capital Plc on 13 September 2011 and on 15 November 2016 changed its name to Dukemount Capital Plc. On 29 March 2017 the Company was admitted to the London Stock Exchange by way of a standard listing.

The Group's principal activity is now to ensure that the financial position and prospects of the Company are maintained to facilitate a future reverse transaction.

The parent company's registered office is located at 70 Jermyn Street, London SW1Y 6NY.

2. Summary of Significant Accounting Policies

The principal Accounting Policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

   a)   Basis of Preparation of Financial Statements 

The consolidated financial statements of Dukemount Capital Plc have been prepared in accordance with UK-adopted international accounting standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in Pound Sterling (GBP), rounded to the nearest pound.

The consolidated entities include the wholly owned subsidiaries DKE (North West) Limited and DKE (Wavertree) Limited; and DKE Flexible Energy Limited in which the Company acquired a 50% equity interest and is deemed to exercise control from the date of its acquisition on 20 May 2021.

The individual entity financial statements of each subsidiary were prepared in accordance with United Kingdom Generally Accepted Accounting Practice (FRS 101).

b) Basis of consolidation

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

The group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The group recognises any non-controlling interest in the acquired companies on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognised amounts of acquiree' s identifiable net assets.

The Group's interest in Gas Peaking projects is treated as a business combination instead of an asset acquisition as there is an intention to enter that business, supported by a business plan.

Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with the group's accounting policies.

   c)   Going Concern 

The preparation of financial statements requires an assessment on the validity of the going concern assumption.

The Directors have reviewed projections for a period of at least 12 months from the date of approval of the Financial Statements.

In making their assessment of going concern, the Directors have discussed the Company's position with its funders and professional advisors. In November 2022 the Company agreed a term sheet with its current investors and broker in which its broker will facilitate a capital investment into the Company of circa GBP250,000 to GBP400,000; a commitment to pay certain outstanding fees and a commitment to provide further funding whilst looking for a possible reverse transaction. The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group has sufficient funds available to it following events after the year end.

The Directors note that the Group has always been successful with past fundraises and continue to believe strongly in the Group's potential. However, the success of securing funding or a reverse transaction has been identified as a material uncertainty which may cast significant doubt over the going concern assessment. Whilst acknowledging this uncertainty, based upon the expectation of completing a successful fundraising in the near future, and the continued support of it investors and broker, the Directors consider it appropriate to continue to prepare the financial statements on a going concern basis.

d) Changes in accounting policies and disclosure

In issue and effective for periods commencing on 1 May 2021

The Company has applied the following standard and amendments for the first time for its annual reporting period commencing 1 May 2021

   --     Definition of Material - Amendments to IAS 1 and IAS 8; 
   --     Definition of a Business - Amendments to IFRS 3; 
   --     Interest Rate Benchmark Reform - Amendments to IFRS 9, IAS 39 and IFRS 7; 
   --     Revised Conceptual Framework for Financial Reporting; 
   --     Annual improvements to IFRS Standards 2018-2020 Cycle; and 
   --     COVID-19 related rent concessions - Amendments to IFRS. 

The adoption of these standards and amendments have not had a material impact on the Group or Company in the year.

In issue but not effective for periods commencing on 1 May 2022

A number of new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 April 2022 and have not been applied in preparing these financial statements. None of these are expected to have a significant effect on the financial statements of the company, except the following set out below:

There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Group or Company .

   e)   Segmental reporting 

Identifying and assessing investment projects is the only activity the Group is involved in and is therefore considered as the only operating/reportable segment.

Therefore the financial information of the single segment is the same as that set out in the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and the Statement of Cashflows.

   f)   Revenue from contracts with customers 

Revenue relates to amounts contractually due under a property development agreement at the balance sheet date relating to the stage of completion of a contract as measured by surveys of work performed to date. Revenue is recognised for services when the Group has satisfied its contractual performance obligation in respect of the services. The amount recognised for the services performed is the consideration that the Group is entitled to for performing the services provided. Revenue from contracts with customers is recognised over time.

Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change, and may include cost contingencies to take into account specific risks within each contract. Cost contingencies are reviewed on a regular basis throughout the life of the contract. However, the nature of the risks on projects are such that they often cannot be resolved until the end of the project and therefore may reverse until the end of the project. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by management. The estimated final outcomes on projects are continuously reviewed, and adjustments are made when necessary. Provision is made for all known or expected losses on individual contracts once such losses are foreseen.

Where costs incurred plus recognised profits less recognised losses exceed progress billings, the balance is recognised as contract assets within trade and other receivables. Where progress billings exceed costs incurred plus recognised profits less recognised losses, the balance is recognised as contract liabilities within trade and other payables.

g) Cash and Cash Equivalents

Cash and cash equivalents comprise cash in hand and current and deposit balances with banks. This definition is also used for the Statement of Cash Flows.

The Group considers the credit ratings of banks in which it holds funds in order to reduce exposure to credit risk.

The Group considers that it is not exposed to major concentrations of credit risk.

h) Financial Instruments

Financial assets

The Group and Company classifies its financial assets in the following measurement categories:

   --     Those to be measured subsequently at fair value through profit or loss; and 
   --     Those to be measured at amortised cost. 

The classification depends on the business model for managing the financial assets and the contractual terms of the cash flows. Financial assets are classified as at amortised cost only if both of the following criteria are met:

-- The asset is held within a business model whose objective is to collect contractual cash flows; and

-- The contractual terms give rise to cash flows that are solely payments of principal and interest.

Financial assets at amortised cost are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. The Group's and Company's financial assets at amortised cost include trade and other receivables, contract assets and cash and cash equivalents. A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:

   --     The rights to receive cash flows from the asset have expired; or 

-- The Group and Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a 'pass-through' arrangement ; and either (a) the Group and Company has transferred substantially all the risks and rewards of the asset, or (b) the Group and Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

The Group currently does not recognise an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss, as the effect would be immaterial on these financial statements. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original EIR. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

For trade receivables (not subject to provisional pricing) and other receivables due in less than 12 months, the Group applies the simplified approach in calculating ECLs, as permitted by IFRS 9. Therefore, the Group does not track changes in credit risk, but instead, recognises a loss allowance based on the financial asset's lifetime ECL at each reporting date. The Group assesses a non-performing debt based on the payment terms of the receivable.

   i)    Financial liabilities 

Financial liabilities, comprising trade and other payables, are held at amortised cost.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Trade and other payables are recognised initially at fair value, and subsequently measured at amortised cost using the effective interest method.

   j)    De-recognition of Financial Instruments 
   i.     Financial Assets 

A financial asset is derecognised where:

   --      the right to receive cash flows from the asset has expired; 

-- the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a pass-through arrangement; or

-- the Group has transferred the rights to receive cash flows from the asset, and either has transferred substantially all the risks and rewards of the asset or has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

   ii.    Financial Liabilities 

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in the statement of comprehensive income.

   k)   Taxation 

Current tax

Current tax is based on the taxable profit or loss for the year. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or recognised in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

Current tax is calculated at the tax rates (and laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax

Deferred tax is recognised using the liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit. However, deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction that at the time of the transaction affects neither accounting nor taxable profit or loss. In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to income taxes

levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

Deferred tax is calculated at the tax rates (and laws) that have been enacted or substantively enacted at the Statement of Financial Position date and are expected to apply to the period when the deferred tax asset is realised or the deferred tax liability is settled.

Deferred tax assets and liabilities are not discounted.

   l)    Equity 

Equity comprises the following:

   --      Share capital representing the nominal value of the equity shares; 

-- Share premium representing consideration less nominal value of issued shares and costs directly attributable to the issue of new shares;

-- Share based payments reserve representing the fair value of share based payments valued in accordance with IFRS 2.

m) Share Capital

Ordinary shares are classified as equity.

n) Share Based Payments

The Group has issued warrants over the ordinary share capital as described in note 15. In accordance with IFRS 2, the total amount to be expensed over the vesting period for warrants issued for services is determined by reference to the fair value of the warrants granted, excluding nonmarket vesting conditions. Nonmarket vesting conditions are included in assumptions about the number of warrants that are expected to vest.

For warrants issued relating to the raising of finance, the relevant expense is offset against the share premium account. The total amount to be expensed is determined by reference to the fair rate of the warrants granted, excluding nonmarket vesting conditions. Nonmarket vesting conditions are included in assumptions about the number of warrants that are expected to vest.

o) Investments

Equity investments in subsidiaries are held at cost, less any provision for impairment.

p) Financial Risk Management

Financial Risk Factors

The Group's activities expose it to a variety of financial risks: market risk (price risk), credit risk and liquidity risk. The Group's overall risk management programme seeks to minimise potential adverse effects on the Group's financial performance. None of these risks are hedged.

The Group has no foreign currency transactions or borrowings, so is not exposed to market risk in terms of foreign exchange risk. The Group will require funding to acquire and develop and/or refurbish its properties and accordingly will be subject to interest rate risk.

Risk management is undertaken by the Board of Directors.

Market Risk - price risk

The Group was exposed to equity securities price risk because of investments held by the Group, classified as available-for-sale financial assets. These assets were sold in the year, and therefore the carrying value at the year end is GBPnil, which represents the maximum exposure for the Group.

The Group is not exposed to commodity price risk. The Directors will revisit the appropriateness of this policy should the Group's operations change in size or nature.

Credit risk

Credit risk arises from cash and cash equivalents as well as any outstanding receivables. Management does not expect any losses from non-performance of these receivables. The amount of exposure to any individual counter party is subject to a limit, which is assessed by the Board.

The Group considers the credit ratings of banks in which it holds funds in order to reduce exposure to credit risk, which is stated under the cash and cash equivalents accounting policy.

Liquidity risk

Liquidity risk arises from the Group's management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. The proceeds raised from the placing are being held as cash to enable the Group to fund a transaction as and when a suitable target is found.

Controls over expenditure are carefully managed, in order to maintain its cash reserves whilst it targets a suitable transaction.

Financial liabilities are all due within one year.

Capital risk management

The Group's objectives when managing capital is to safeguard the Group's ability to continue as a going concern, in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure. The Group has no borrowings.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Group monitors capital on the basis of the total equity held by the Group, being a net asset of GBP407,378 as at 30 April 2022 (2021: net asset GBP600,973).

q) Critical Accounting Estimates and Judgements

The Directors make estimates and assumptions concerning the future as required by the preparation of the financial statements in conformity with UK-adopted international accounting standards. The resulting accounting estimates will, by definition, seldom equal the related actual results.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

i) Share based payments

In accordance with IFRS 2 'Share Based Payments' the Group has recognised the fair value of warrants calculated using the Black-Scholes option pricing model. The Directors have made significant assumptions particularly regarding the volatility of the share price at the grant date in order to calculate a total fair value. Further information is disclosed in Note 15.

ii) Percentage completion method used for long term contracts

The Group makes an estimate of the stage of completion of a development project based on the costs incurred at the year end. Management then make assumptions regarding the collectability of billings and expected future costs. The method used is as stated in the constructions contract accounting policy 2f). Estimation uncertainty will exist with regard to the gross profit being recognised at the year end. The Directors believe that this uncertainty is reduced to an acceptable level by using quantity surveyors' reports to assess the stage of contract completion at the year end .

iii) Intercompany balances

Subsequent to the year end, the Company has also commenced a group reorganisation process of novating and capitalising intercompany debts and whilst this process is ongoing they have concluded that no impairment is required at 30 April 2022.

   3.   Revenue 
 
 
   Analysis of turnover by geography: 
                                              2022            2021 
                                              GBP             GBP 
 United Kingdom                               -               3,926,730 
                                             --------------  ---------------------- 
 
                                                -               3,926,730 
                                             --------------  ---------------------- 
 
   Analysis of turnover by category: 
                                              2022            2021 
                                               GBP            GBP 
 
 Property management and building 
  development services                        -               3,926,730 
                                             --------------  ---------------------- 
 
                                                -               3,926,730 
                                             --------------  ---------------------- 
 
 

All revenue is recognised over time.

   4.      Expenses by Nature 
 
                                  2022        2021 
                                  GBP         GBP 
 
 Directors' fees                  51,250      102,500 
 Establishment costs              28,733      27,219 
 Legal and professional fees      40,763      460,629 
 Listing/ regulatory costs        26,592      89,689 
 Travel and accommodation         2,196       2,791 
 Other expenses                   31,208      58,808 
 Finance charges                  242,773     - 
 Impairment (Note 9)              125,101     - 
 Impairment (Note 10)             578,779     - 
                                 ----------  -------- 
 Total Administrative Expenses    1,127,395   741,636 
                                 ----------  -------- 
 
 

Finance charges relate to fees incurred in financing activities; GBP101,250 of these fees are accrued interest and arrangement fees; GBP141,523 were satisfied by the issue of ordinary shares.

5. Directors' Remuneration

 
 
 Company 
                  2022     2021 
                  GBP      GBP 
 Geoffrey Dart    37,500   85,303 
 Paul Gazzard     13,750   27,500 
                  _____    _____ 
 
 Total            51,250   112,803 
                  ______   ______ 
 

The Directors elected not to be paid, nor accrue their entitlement from November 2021. Other benefits of GBPnil (2021: GBP10,303) were also paid to the directors.

Details of directors' remuneration are included in the Directors' Remuneration Report.

The average number of employees (including directors) during the year was 2 (2021: 2).

6. Services provided by the Company's Auditors

During the year, the Group obtained the following services from the Group's auditors and its associates:

 
                                                   2022       2021 
                                                    GBP        GBP 
 
 Fees payable to the Company's auditor for: 
 
  Audit of the Group and Company                 26,000     26,250 
  Audit of the subsidiary undertakings           10,000     11,250 
                                              ---------  --------- 
                                                 36,000     37,500 
                                              ---------  --------- 
 
 
 
   7.    Taxation 

Tax Charge for the Year

No taxation arises on the result for the year due to taxable losses.

Factors Affecting the Tax Charge for the Period

The tax credit for the period does not equate to the loss for the period at the applicable rate of UK Corporation Tax of 19.00% (2021: 19.00%). The differences are explained below:

 
                                                            2022        2021 
                                                             GBP         GBP 
 
 Loss for the period before taxation                 (1,127,395)   (913,827) 
                                                          ______      ______ 
 
 Loss for the period before taxation multiplied 
  by the standard 
  rate of UK Corporation of 19.00% (2021: 19.00%)      (214,205)   (173,627) 
 
 
 Losses carried forward on which no deferred 
  tax asset is recognised                                214,205     173,627 
                                                          ______      ______ 
                                                               -           - 
                                                          ______       _____ 
 

Factors Affecting the Tax Charge of Future Periods

Tax losses available to be carried forward by the Group at 30 April 2022 against future profits are estimated at GBP3,282,222 (2021 - GBP2,154,827).

A deferred tax asset has not been recognised in respect of these losses in view of uncertainty as to the level of future taxable profits.

There is no expiry date on carried forward tax losses.

8. Investment in subsidiaries

 
 
 Company 
                                      2022     2021 
                                       GBP      GBP 
 Shares in Group Undertakings 
 As at 1 May                           101      101 
 Additions in the year             475,601        - 
 Impairment (note 9)             (125,101)        - 
                                ----------  ------- 
 At 30 April                       350,601      101 
                                ----------  ------- 
 

Details of Subsidiaries

Details of the subsidiaries at 30 April 2022 are as follows:

 
 Name of subsidiary        Address of         Country of       Share     % share capital   Principal 
                            registered       incorporation     capital         held         activities 
                              office                           held by 
                                                               Parent 
                            70 Jermyn                                                      Property 
 DKE (North West         Street, London,                                                    management 
  Limited)                      UK              England         100           100%          and development 
                            70 Jermyn                                                      Property 
 DKE (Wavertree)         Street, London,                                                    management 
  Limited                       UK              England          1            100%          and development 
                            70 Jermyn 
                         Street, London, 
 Dukemount Limited              UK              England          1            100%         Dormant 
                            70 Jermyn 
 DKE Flexible Energy     Street, London,                                                   Flexibility 
  Limited*                      UK              England         500            50%          power 
 ARL Limited                70 Jermyn           England       indirect          -          Flexibility 
                         Street, London,                                                    power 
                                UK 
 ADV 001 Limited            70 Jermyn           England       indirect          -          Flexibility 
                         Street, London,                                                    power 
                                UK 
 

*On 20 May 2021, the Company acquired a 50% interest in the equity of HSKB Limited under a Joint Venture and Shareholders' Agreement. HSKB Limited was subsequently renamed DKE Flexible Energy Limited on 1 October 2021 following its acquisition of 100% of the share capital of ARL 018 Limited and ADV 001 Limited.

9. Intangible assets

On 20 May 2021 Dukemount Capital Plc, entered into a Joint Venture Agreement in relation to flexibility power expert HSKB Ltd ("HSKB"), of which Dukemount non-executive director Paul Gazzard is a founder and shareholder. Pursuant to the Joint Venture Agreement, Dukemount acquired 50% of the issued share capital of HSKB for nominal value. On 1 October 2021 HSKB purchased two special purpose companies, ARL 018 Limited and ADV 001 Limited. Each company containing the rights to an 11kV gas peaking facility, ready to build, with full planning permission and grid access. HSKB has changed its name to DKE Flexible Energy Limited ("DKE Energy").

The assets and liabilities as of 1 October 2021 arising from the acquisition of ARL 018 Limited and ADV 001 Limited are as follows:

 
                  Book value at acquisition   Fair value adjustments   Fair value at acquisition 
                                        GBP                      GBP                         GBP 
                 --------------------------  -----------------------  -------------------------- 
 Consideration                      315,642                        -                     315,642 
                 --------------------------  -----------------------  -------------------------- 
 Cash                                    55                        -                          55 
 Assets                              44,049                        -                      44,049 
 Liabilities                       (87,317)                                             (87,317) 
 Reserves                          (52,750)                                             (52,750) 
                                                                                               - 
                 --------------------------  -----------------------  -------------------------- 
 At 30 April                        411,605                        -                     411,605 
                 --------------------------  -----------------------  -------------------------- 
 

During the period to 30 April 2022, the Group added GBP63,496 to the value of the assets in relation to deposits resulting in a carrying value at 30 April 2022 of GBP475,101. In performing an assessment of the carrying value of the assets at the reporting date, the Directors concluded that as no development activity had been undertaken during the year ended 30 April 2022, it was appropriate to book an impairment of GBP125,101, resulting in a carrying value of GBP350,000 at 30 April 2022.

The Directors formed this opinion based upon their calculation of estimated fair value less cost to sell. This was considered to be in excess of the carrying value of the asset. Further post year end, on 5 October 2022, the Company announced that DKE Flexible Energy sold the two special purpose companies, for an aggregate sale price of GBP350,000. Despite having the funding in place to construct these assets, the regulatory environment that evolved for the Company during the transaction to buy and then fund the construction of them meant there was little option but to dispose of the assets. The proceeds of the sale have been used to repay a portion of the sums owing to the Company's lenders.

10. Trade and Other Receivables

 
                                       Group    Company   Group     Company 
                                        2022     2022      2021      2021 
                                       GBP      GBP                 GBP 
 
 Other receivables, including 
  prepayments                          38,164   13,436    15,100       14,496 
 Amounts owed by group undertakings    -        -         -         118,828 
 Amounts recoverable on                -        -         561,216   - 
  contracts 
                                      -------  --------  --------  ------------- 
                                       38,164   13,436    576,316        133,324 
 
 

The fair value of all receivables is the same as their carrying values stated above.

The maximum exposure to credit risk at the reporting date is the carrying value mentioned above. The Group does not hold any collateral as security.

Amounts recoverable on contracts represents sales invoices issued after 30 April in respect of work undertaken during the year with appropriate provision being made in accruals and deferred income for costs incurred in undertaking such work but which had not been invoiced. The directors have reviewed the balances due under the funding arrangement and taken the decision that these are not recoverable and impaired the amount of GBP578,779 owing at 30 April 2022 (2021: GBP 561,216) in full.

Amounts due from group undertakings are unsecured, interest free, have no fixed date of repayment and repayable on demand . Advances were made to the subsidiaries in order to fund the redevelopment projects. As these projects have reached practical completion, the Company has made a bad debt provision for the amounts owing of GBP491,628 in full.

11. Dividends

No dividend has been declared or paid by the Company during the year ended 30 April 2022 (2021: Nil).

12. Earnings per share

Basic earnings per share is calculated by dividing the loss attributable to equity holders of the Group by the weighted average number of ordinary shares in issue during the year. In accordance with IAS 33, basic and diluted earnings per share are identical as the effect of the exercise of the warrants would be to decrease the loss per share.

                                                                                                                                           2022          2021 
                                                                                                                                                   GBP                GBP 

Loss attributable to equity holders of the Group 1,127,395

913,827

                                                                                                                                       ______     ______ 

Total 1,127,395 913,827

                                                                                                                                       ______     ______ 

Weighted average number of ordinary shares in issue (thousands) 504,873 456,930

                                                                                                                                       ______       _____ 
                                                                                                                                             2022          2021 

Basic and diluted profit per share 2022 2021

                                                                                                                                                   GBP                          GBP 

Continuing Operations - basic and diluted 0.0022 0.0020

13 . Share Capital

Group and Company

 
                                                         2022                2021 
                                                         No.                 No 
 Allotted, issued and fully paid                         (000's)             (000's) 
 
 Beginning of year                                                 481,283             439,033 
  New shares issued (32,252,308 ordinary shares 
   of GBP0.001 each)                                                32,252              42,250 
 
  At 30 April 513,535,974 ordinary shares of GBP0.001 
   each 
  (2021: 481,283,666 ordinary shares of GBP0.001 
   each)                                                           513,535             481,283 
                                                        ------------------  ------------------ 
 
 

14. Share Premium

Group and Company

 
 
                       Share Premium     Share issue     Net Share 
                                 GBP           costs       Premium 
                                                 GBP           GBP 
                    ----------------  --------------  ------------ 
 At 1 May 2021             1,140,838        (25,803)     1,115,035 
                    ----------------  --------------  ------------ 
 Issue of shares             134,270               -       134,270 
                    ----------------  --------------  ------------ 
 At 30 April 2022          1,274,108        (25,803)     1,249,305 
                    ----------------  --------------  ------------ 
 

15. Share Based Payments

Details of the warrants outstanding at 30 April 2022 are included below. The fair value of the warrants was determined using the Black Scholes valuation model. The parameters used are detailed below:

 
 Warrant granted on:          At 29 March 
                               2017 
 
 Warrant life remaining          1 year 
  (years) 
 Warrants granted              27,064,000 
 Risk free rate                   0.5% 
 Expiry date                  29 March 2023 
 Exercise price (GBP)             0.005 
 Expected volatility               20% 
 Expected dividend yield            - 
 Marketability discount            20% 
 Total fair value of 
  warrants granted (GBP)           7,125 
 

The expected volatility for the warrants granted is based on the historical share price volatility of similar listed entities from their date of admission to the market up to the completion of the first six months of trading. This is considered to be the most reasonable measure of expected volatility, given the relatively brief trading history of the Group.

The warrants issued in 2017 were modified in 2021, with their expiry date being extended until 29 March 2023. The fair value adjustment as required under IFRS 2 as a result of this modification was immaterial and as such no change in the fair value has been reflected in the Financial Statements.

The risk free rate of return is based on zero yield government bonds for a term consistent with the warrant life. A reconciliation of warrants in issue over the period to 30 April 2022 is shown below:

 
                                          Number   Weighted average 
                                                     exercise price 
                                                              (GBP) 
 As at 1 May 2021                     10,739,000              0.005 
 Expired during year                (10,675,000)              0.005 
 Outstanding as at 30 April 2022          64,000              0.005 
 
   Exercisable at 30 April 2022           64,000              0.005 
                                       _________              _____ 
 

The weighted average contracted and expected life (years) for the above warrants is 1 year (2021 - 1 year).

16. Trade and Other Payables

 
                     Group       Company     Group       Company 
                      2022        2022        2021        2021 
                     GBP         GBP         GBP         GBP 
 
 Trade payables      806,296     772,549     1,052,660   615,038 
 Other creditors     1,101,250   1,101,250   -           - 
 Accruals            78,540      62,251      166,148     124,439 
                    ----------  ----------  ----------  -------- 
 
                     1,986,086   1,936,050   1,218,808   739,477 
                    ----------  ----------  ----------  -------- 
 

In May 2021, the Company entered into a 12-month convertible unsecured loan facility for GBP1,000,000 ("Facility") of which GBP500,000 was available immediately and the additional GBP500,000 available conditional on certain milestones being met by the Company. The Facility was interest free and unsecured. The Facility was convertible at the election of the Company or the Lenders into ordinary shares at a deemed issued price of GBP0.0065 per share, subject to the Company having sufficient authorities in place and to the publication of any prospectus required pursuant to the Prospectus Regulation Rules. In June 2021, the Company issued 13,286,713 ordinary shares as payment under the Facility Agreement in relation to fees. An availability fee of GBP70,000, GBP10,000 drawdown fees and reimbursement of legal fees were converted into ordinary shares at 0.715p.

In September 2021, the Company signed off a subordinated funding package necessary to enable completion of the senior debt funding for the gas peaking projects first announced via its JV with HSKB in March 2021 ("Generation Project"). As a condition for this funding package, the Company also made significant positive adjustments to its balance sheet and is restructuring its board with seasoned energy market executives to enhance the company's ability to deliver the projects in its recently announced JV. The Chesterfield convertible loan of GBP500,000 will be fully converted into ordinary shares of the company at GBP0.0065 price per share. The GBP1,000,000 unsecured loan facility signed in May 2021 was repaid from the new funding and that facility was terminated. The new funding package assembled by the Company comprises: GBP3,000,000 mezzanine, 18 month loan facility with 4 month repayment holiday. GBP1,000,000 was drawn down immediately upon execution with a balance of GBP1,101,250 at 30 April 2022 including charges and accrued interest. The terms of this new facility were varied in October 2022 with total amounts due deferred and to be repaid under new terms (Note 21)

17. Treasury Policy and Financial Instruments

The Group operates an informal treasury policy which includes the ongoing assessments of interest rate management and borrowing policy. The Board approves all decisions on treasury policy.

The Group has financed its activities by the raising of funds through the placing of shares.

There are no material differences between the book value and fair value of the financial instruments.

 
                               Group       Company     Group       Company 
                                2022        2022        2021        2021 
                               GBP         GBP         GBP         GBP 
 Carrying amount 
  of financial assets 
 Measured at amortised 
  cost                         407,378     380,152     600,973     147,829 
                              ----------  ----------  ----------  -------- 
 
                               407,378     380,152     600,973     147,829 
                              ----------  ----------  ----------  -------- 
 Carrying amount 
  of financial liabilities 
 Measured at amortised 
  cost                         1,986,086   1,936,050   1,218,808   739,477 
                              ----------  ----------  ----------  -------- 
 
                               1,986,086   1,936,050   1,218,808   739,477 
                              ----------  ----------  ----------  -------- 
 

18. Capital Commitments

There were no capital commitments authorised by the Directors or contracted for at 30 April 2022.

19. Related Party Transactions

The Directors are Key Management and information in respect of key management is given in Note 5.

A bonus accrual brought forward from prior year of GBP75,000 relating to Geoffrey Dart has been cancelled and reversed as at 30 April 2022.

At 30 April 2022, the Company was due from DKE (Wavertree), a wholly owned subsidiary of the Group, GBP223,365 (2021: due to GBP103,065). The Company has provided against this amount in full (Note 9).

At 30 April 2022, the Company was due from DKE (Northwest), a wholly owned subsidiary of the Group, GBP268,263 (2021: due to GBP15,763). The Company has provided against this amount in full (Note 9).

At 30 April 2022, the Company was due GBP339,306 (2021: nil) from DKE Flexible Energy Limited, a company in which Dukemount owns 50% of the shares and in which Paul Gazzard is a shareholder. Dukemount loaned DKE Flexible Energy Limited GBP329,306 on an interest free, repayable on demand loan on 6 October 2021 to acquire ADV 001 Limited and ARL 018 Limited in which Paul Gazzard was a director from 6 September 2021 to 6 October 2022. Following the year end, DKE Flexible Energy Limited sold its interests in ADV 001 Limited and ARL 018 Limited for aggregate proceeds of GBP350,000. The proceeds were used by Dukemount to satisfy debt.

20. Ultimate Controlling Party

The Directors believe there to be no ultimate controlling party.

21. Events after the reporting period

On 5 October 2022 the Company announced that HSKB Limited ("HSKB"), in which it holds a 50% interest, had completed the sale of two special purpose companies containing an 11kV gas peaking facility, ready to build, with full planning permission and grid access for an aggregate sale price of GBP350,000. The proceeds of the sale have been used to repay a portion of the sums owing to the lenders as detailed in the announcement of 15 September 2021.

Further to the disposal of the gas peaking facilities, the lenders agreed to advance net proceeds of GBP50,000 in aggregate in addition to restructuring their existing funding arrangement. The maturity date for the existing debt plus the further advance is to be 24 months from the date of the Advance (being 10 October 2024). The proceeds of the further advance have been used to settle accrued liabilities of the Company.

The board has taken steps to ensure that the financial position and prospects of the Company are maintained to facilitate a future reverse transaction. To that end, the board has confirmed that the directors have released the Company from all accrued but unpaid emoluments; Chesterfield Capital Limited have confirmed that the outstanding balance of GBP500,000 due to Chesterfield Capital Limited will be converted at a price of 0.65p. Such subscription to settle all balances due from the Company and to be settled by the issuance of shares at the earlier of (a) the approval of a prospectus, (b) the direction of the board of the Company and (c) 31 December 2023.

The restructuring and further advance debt is convertible at the nominal value of 0.1p of the ordinary shares of the Company. The further advance is subject to a 5% implementation fee. The Company has settled a 9.5% extension fee of GBP74,575 to the Noteholders in the form of ordinary shares at nominal value. Accordingly the Company issued 74,575,000 ordinary shares in the Company on 12 October 2022 and 28,132,190 ordinary shares on 28 October 2022.

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END

FR FLMPTMTAMMMJ

(END) Dow Jones Newswires

June 09, 2023 05:17 ET (09:17 GMT)

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