RNS Number:9005M
Dimension Resources Ld
28 June 2000
Preliminary statement for the year ended 31 December 1999
The accounts for the year ended 31 December 1999 will be despatched to
shareholders on 30 June 2000. No dividend is proposed for that year. The
annual general meeting will be held at Grant Thornton House, Melton Street,
London, London NW1 2EP on Monday 24 July at 10.00am.
Since the last interim report, the Company has experienced a number of positive
events which has resulted from a diligent effort by the executives of the Group.
Although the financial position of the company is not yet in profitability as
of the last year, the prospects have now significantly brightened. A sudden
turn in the sales prospects for granite resulted in an exclusive contract with a
Taiwanese client, Yu Long Enterprises Co. Ltd., for the Company's Zwartmodder
Cape Red granite. The contract is for a five year period commencing on 20
February, 2000; with deliveries starting at 50 cubic meters per month and
increasing to 500 to 600 cubic meters per month. The total value of this
contract is estimated to be in excess of US$16,000,000.
The Company is pleased to welcome Hoodless Brennan & Partners as its new
Nominated Brokers. After a reorganization of the Company's share structure,
Hoodless was successful arranging a placing to raise 1 million Pounds Sterling,
which was completed early in May. This has raised capital to equip the
Company's operating subsidiaries with machinery to:
* support the level of production called for in the case of Cape Red
granite quarry;
* commence the production of quarrying at the travertine deposit;
* cut sufficient test blocks from the newly acquired Cape Rainbow
granite deposit;
* provide sufficient operating capital to ensure sustaining operations
until cash flow from the various quarry activity develops.
The Group was successful in acquiring the rights over a new granite known as
"Cape Rainbow", a white background material with multicolored pastel colors
infused, which has thus far been of great interest to several prospective stone
buyers. The Company will initially produce approximately 100 cubic meters of
test blocks of export quality to supply the known interested clients. The
results of these tests will dictate the future of this quarry operation; by thus
proceeding, the Company will minimize its financial exposure and risk. The only
current limiting factor is the time required in obtaining government permits for
prospecting. All documentation has been submitted to the appropriate government
agencies; and follow up is continuous in hopes of an early granting of the
licenses. Reaction from prospective customers has been very positive.
The travertine deposit is scheduled to begin quarrying operations in late July,
2000. These operations are designed to produce approximately 500 cubic meters
of material for inventory; after which, prospective clients will be invited to
peruse the inventory with the objective of concluding a "term" buying contract.
Those blocks which are not sized as "export" type will be shipped to the
Company's tile factory in Vredendal for processing into tiles for both the
domestic South African and the international markets. As in the case of the
Cape Rainbow granite strategy, the commitment of limited financial resources to
the preliminary stocking of inventory of travertine will minimize the Company's
financial exposure/risk pending a firm development of the market. Government
granting of licenses is the only limiting factor as of this date; however, it is
expected that a permit will be released in a reasonably timely fashion to carry
on operations as scheduled.
Due to Africa International's slow progress with completion of its manufacturing
and distribution operations in the United States, that company has not placed
additional orders against its base requirements contract for marble tiles since
the last deliveries of tiles in November, 1999. Profitable operations of the
factory is largely dependent on obtaining a supply of quality material for
processing. Pending this, the factory is concentrating on small scale
production of mortuary products. Pending the introduction of new lines,
stringent cost cutting measures have been introduced.
The operating management has continued its efforts to locate and obtain new
deposits of materials over a wide range such as: granites, sandstones, slates,
marbles, and other forms of commercially viable stone. The company is in active
negotiations with various mineral rights owners in quest of getting leases in
any or all of these materials. Only those materials which have potential
marketability will be prospected and placed into limited production (basically
to obtain sufficient quantities of stone for market testing). Only materials
with proven sales opportunities will then be moved to the full on quarrying
stage. However, early indications are that the materials being pursued do have
a market, and the management is confident that new leases can be negotiated.
A recent shift in corporate responsibilities has been effected with Dr. Paolo
Gionvannangeli stepping down as Chairman to spend a greater effort in assisting
EDILCO in the sale of the Company's products. I have taken up the
responsibility of Chairman, and can report that the Company's new focus and
diligence toward achieving realistic objectives is well under way.
Additionally, following the special meeting of the shareholders in April, 2000,
Stephen Taylor has joined the Board of Directors, replacing Mr. Horst Lederer
who departed in order pursue private business. Stephen's addition has
strengthened the Board, and we are grateful to have his assistance. The
Directors are mindful of the patience and support offered by the shareholders,
and we look forward to reporting real progress by the end of the year.
Brian Moritz
(Chairman)
28 June 2000
DIMENSION RESOURCES LIMITED
and its subsidiaries
Consolidated balance sheet
at 31 December 1999
Group Company
1999 1998 1999 1998
GBP GBP GBP GBP
ASSETS
Non-current assets 16,194,501 16,314,048 16,838,626 16,754,825
Tangible assets 1,794,409 1,931,692 - -
Stone deposits 14,334,101 14,306,191 - -
Pre-production costs 65,992 76,165 - -
Investments - - 16,838,626 16,754,825
Current assets 225,513 518,528 27,657 187,743
Stocks 149,480 227,429 - -
Debtors 33,024 127,715 775 86,224
Cash at bank and in hand 43,009 163,384 26,882 101,519
Total assets 16,420,014 16,832,576 16,866,283 16,942,568
EQUITY AND LIABILITIES
Shareholders' funds 16,248,217 16,544,319 16,752,533 16,811,626
Called up share capital 6,295,083 6,267,083 6,295,083 6,267,083
Share premium account 10,712,531 10,712,531 10,712,531 10,712,531
Profit and loss account -759,397 -435,295 -255,081 -167,988
Long term liabilities 1,923 - - -
Discount on acquisition of
subsidiary 402 402 - -
Foreign currency translation
reserve 11,425 125,012 - -
Creditors: amounts falling
due within one year 158,047 162,843 113,750 130,942
Creditors 157,644 162,843 113,750 130,942
Provisions 403 - - -
Total equity and
liabilities 16,420,014 16,832,576 16,866,283 16,942,568
DIMENSION RESOURCES LIMITED
and its subsidiaries
Consolidated income sheet
for the year ended 31 December 1999
Group Company
1999 1998 1999 1998
GBP GBP GBP GBP
Turnover 119,243 95,582 - -
Cost of sales 206,611 228,402 - -
Gross loss -87,368 -132,820 - -
Administrative expenses -364,747 -323,929 -90,407 -182,935
Operating loss -452,115 -456,749 -90,407 -182,935
Interest receivable and
similar income 4,725 28,214 3,314 14,947
Interest payable and
similar charges -175 -310 - -
Amortisation of stone
deposits - 6,450 - -
Net loss before taxation -447,565 -435,295 -87,093 -167,988
Taxation - - - -
Net loss for the period -447,565 -435,295 -87,093 -167,988
Earnings per share (pence) -0.71 -0.93
Weighted average number of
shares in issue 62,700,830 46,674,325
END
FR KKOKKQBKDAAB
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