TIDMPCGB

RNS Number : 8448S

Power Capital Global Ltd

29 September 2014

POWER CAPITAL GLOBAL LIMITED

("Power Capital" or "the Company")

Interim Results for the six months ended 30 June 2014

Power Capital Global Limited (AIM:PCGB), the Asia based natural resources trading and logistics group, announces that it has today published its unaudited results for the six months ended 30 June 2014.

Summary

During the period we have made only limited progress in furthering the development of an Asia based natural resources trading and logistics platform. We are operating in an extremely competitive environment where margins are generally under pressure and volume growth is modest to non existent. Against this background the Board is now undertaking a broad ranging review of strategy and of the opportunities available to PCGB. The Board will report to shareholders in due course when this exercise has been completed.

Indonesia

PCG Coal (Indonesia) Limited ("PCI"), our 51% joint venture operating company, has continued to manage its off-take agreement (the "Agreement") with PT Perdana Maju Utama ("PMU") for one million metric tonnes of thermal coal. PCI provided advance payments under the Agreement of US$2 million (the "Advance") in 2013 and these funds were used by PMU to commence commercial strip mining activities on its concession. Under an addendum signed in September 2013, PMU is permitted to sell its mined concession thermal coal direct to third party customers rather than to PCI but is required to compensate PCI at a rate of US$3.20 per metric tonne sold, comprised of two parts: (i) US$1.50 in commission payments; and (ii) a repayment of the Advance principal of US$1.70 (in aggregate, the "Compensation Payment"). The minimum committed monthly sales volume is agreed at 50,000 metric tonnes.

PCI invoiced PMU for the minimum monthly contract delivery of 50,000 metric tonnes in accordance with the Agreement, as amended, in the six-month reporting period. The Directors expect that this volume of coal will continue to be invoiced by PCI and subsequently settled going forward until the off-take commitment of one million metric tonnes of thermal coal is reached. At the date of this report, PCI has invoiced PMU for the Compensation Payment in respect of approximately 62% of the committed off-take volume under the Agreement (618,000 metric tonnes) of which GBP611,000 has been invoiced in the period under review.

The total value of commission income generated under the Agreement in the reporting period was approximately GBP287,000 and the balance on the Advance has been reduced under invoice by GBP324,000 to approximately GBP533,000 (US$837,000) as at the reporting date. A total amount of GBP401,000 was invoiced but unpaid at the end of the reporting period. GBP163,000 of this outstanding amount has subsequently been settled by PMU in the period after 30 June 2014.

The Company has made no material progress in further developing a vertically integrated tin dredging and smelting operation in Bangka, Indonesia. The next step in the development of this business opportunity is to commence cassiterite dredging operations and, for this stage of works to commence, the Company will need to secure additional funding.

Mongolia

The Company, through its wholly owned subsidiary PCG Mongolia Limited, owns a 1.4% equity stake in Asia Pacific Investment Partners Limited ("APIP"). APIP continues to progress well with its plan to secure a stock exchange listing in Singapore in early 2015.

TSI

The Company has made no further progress in its efforts to hold constructive discussions with the management and owners of TSI Holdings Limited ("TSI"). The Company continues to take formal steps to achieve redress over the current default on loan repayments from TSI using all forms of recourse available to it. The amount outstanding under the TSI facility (including accrued interest) is GBP0.69 million (US$1.09 million) and the Company fully provided for this sum in a prior accounting period.

Corporate Matters

Recurring operating costs have been reduced during the reporting period. The board agreed to suspend cash settlement of fee payments due to directors in August 2013, which took effect from 1 September 2013, with the exception of Mr Graham Newall who continued to receive his remuneration until January 2014. The total amount accrued but unpaid to directors at the end of the reporting period is GBP258,000. It remains the position of the Company's directors that the moratorium on the settlement of director fees should remain in place until the Company's funding and / or positive cashflow outlook is significantly improved.

Mr Newall resigned from the board of the Company in August 2014.

Summary

With continued performance under the existing PMU Indonesian coal off-take contract and after application of the cost savings that have recently been implemented by management, the Company is expected to benefit from marginal positive operating cashflow (absent unforeseen expenses) through July 2015. A successful listing of APIP would result in the Company's investment in that company becoming marketable, subject to any trading restrictions that may be applied to its shareholding at the time of listing, and any decision to liquidate this investment position is likely to provide the Company with an increase in cash resources. The strategic and business review currently underway is being undertaken against this background and the difficult market conditions in which the Company has been operating.

Simon Dewhurst

Chief Executive Officer

29(th) September 2014

 
 Further information 
 
 Power Capital Global 
  Limited 
 Simon Dewhurst                Tel: +852 3695 5150 
 
 Northland Capital Partners 
  Limited 
 Edward Hutton/Gavin Burnell   Tel: +44 (0)20 7382 1100 
 
 GTH Communications Limited 
 Toby Hall                      Tel: +44 (0)20 7822 7493 / 
                                 07713 341072 
 

These interim results together with further information of the Company are available on the Company's web site: www.powercapitalglobal.com

Consolidated Statement of Comprehensive Income

For The Six Months Ended 30 June 2014

(expressed in thousands GBP sterling)

 
                                       Six months           Six months     Year ended 
                                    to 30/06/2014        to 30/06/2013     31/12/2013 
                                        Unaudited            Unaudited        Audited 
                                           GBP000               GBP000         GBP000 
 Revenue                                        -                  289             533 
 Cost of sales                                  -                (269)           (492) 
                                  ---------------      ---------------  -------------- 
 Gross profit/(loss)                            -                   20           (41) 
 
 Administrative expenses                    (729)                (707)        (2,194) 
 Operating loss                             (729)                (687)        (2,153) 
 
 Other income                                 297                   16            253 
 Finance costs                               (48)                 (70)          (120) 
                                  ---------------      ---------------   ------------ 
 Loss before taxation                       (480)                (741)        (2,020) 
 Income tax expense                             -                  (1)            (2) 
                                  ---------------      ---------------   ------------ 
 Loss for the period/year after 
  taxation                                  (480)                (742)        (2,022) 
 Other comprehensive income                     -                    -              - 
                                  ---------------      ---------------   ------------ 
 Total comprehensive expenses               (480)                (742)        (2,022) 
                                  ===============      ===============   ============ 
 Attributable to: 
 Owners of the parent                       (465)                (745)        (2,026) 
 Non-controlling interests                   (15)                    3              4 
                                  ---------------      ---------------   ------------ 
 Total comprehensive expenses               (480)                (742)        (2,022) 
                                  ===============      ===============   ============ 
 Loss per share (basic)                (GBP0.006)           (GBP0.012)     (GBP0.030) 
                                  ===============      ===============   ============ 
 Loss per share (diluted)              (GBP0.006)           (GBP0.012)     (GBP0.030) 
                                  ===============      ===============   ============ 
 
 

Consolidated Statement of Financial Position

As At 30 June 2014

(expressed in thousands GBP sterling)

 
                                    30/6/2014   30/06/2013   31/12/2013 
                                    Unaudited    Unaudited      Audited 
                                       GBP000       GBP000       GBP000 
 Non-current assets 
 Property, plant and equipment             13           28           21 
 Loans receivable                           -          637            - 
 Available-for-sale investments         1,274        1,273        1,274 
                                   ----------  -----------  ----------- 
                                        1,287        1,938        1,295 
  Current assets 
 Trade and other receivables              547          211          331 
 Rental and other deposits              1,040        1,643        1,327 
 Cash and cash equivalents                 19           73          109 
                                   ----------  -----------  ----------- 
                                        1,606        1,927        1,767 
 Current liabilities 
 Other payables and accruals            1,059          669          800 
 Amount due to related companies        3,535        3,232        3,482 
 Provision for current tax                  -            -            1 
                                   ----------  -----------  ----------- 
                                        4,594        3,901        4,283 
                                   ----------  -----------  ----------- 
 Net current liabilities              (2,988)      (1,974)      (2,516) 
                                   ----------  -----------  ----------- 
 Net liabilities                      (1,701)         (36)      (1,221) 
                                   ==========  ===========  =========== 
  Equity 
 Share capital                          6,229        6,134        6,229 
 Reserves                             (7,963)      (6,218)      (7,498) 
                                   ----------  -----------  ----------- 
 Equity attributable to owners 
  of the parent                       (1,734)         (84)      (1,269) 
 Non-controlling interests                 33           48           48 
                                   ----------  -----------  ----------- 
 Capital deficiencies                 (1,701)         (36)      (1,221) 
                                   ==========  ===========  =========== 
 

Consolidated Statement of Changes In Equity

For The Six Months Ended 30 June 2014

(expressed in thousands GBP sterling)

 
                                   Paid-in   Accumulated      Total           Non-      Total 
                                   capital        losses               controlling 
                                                                          interest 
                                    GBP000        GBP000     GBP000         GBP000     GBP000 
  At 1 January 2013                  3,058       (5,473)    (2,415)             45    (2,370) 
  Issue of shares upon 
   conversion of convertible 
   loan notes                        3,076             -      3,076              -      3,076 
 
 Total comprehensive 
  expenses for the six 
  months to 30 June 2013                 -         (745)      (745)              3      (742) 
  At 30 June 2013 and 
   1 July 2013                       6,134       (6,218)       (84)             48       (36) 
  Issue of shares upon 
   equity- settled share-based 
   arrangement                          95             -         95              -         95 
  Total comprehensive 
   expenses for the six 
   months to 31 December 
   2013                                  -       (1,280)    (1,280)              -    (1,280) 
                                 ---------  ------------  ---------  -------------  --------- 
  At 31 December 2013 
   and 
   1 January 2014                    6,229       (7,498)    (1,269)             48    (1,221) 
  Total comprehensive 
   expenses for the six 
   months to 30 June 2014                -         (465)      (465)           (15)      (480) 
  At 30 June 2014                    6,229       (7,963)    (1,734)             33    (1,701) 
                                 =========  ============  =========  =============  ========= 
 
 

Consolidated Statement of Cash flows

For The Six Months Ended 30 June 2014

(expressed in thousands GBP sterling)

 
                                                Six months       Six months    Year ended 
                                             to 30/06/2014    to 30/06/2013    31/12/2013 
                                                 Unaudited        Unaudited       Audited 
                                                    GBP000           GBP000        GBP000 
 Cash flows from operating activities 
 Loss before taxation                                (480)            (741)       (2,020) 
 Adjustments for: 
 Depreciation of property, plant 
  and equipment                                          8                8            16 
 Dividend income                                         -                -           (1) 
 Provision for bad and doubtful 
  debts                                                  -                -           697 
 Equity-settled share-based payment                     17               41            87 
 Interest income                                      (11)             (16)          (32) 
 Finance costs                                          48               70           120 
                                           ---------------  ---------------  ------------ 
 Operating cash flows before movements 
  in working capital                                 (418)            (638)       (1,133) 
 Increase in trade and other receivables             (205)             (20)         (168) 
 Decrease /(Increase) in rental 
  and other deposits                                   287          (1,615)       (1,299) 
 
   Increase in other payables and 
   accruals                                            193              286           304 
                                           ---------------                   ------------ 
 Cash used in operations                             (143)          (1,987)       (2,296) 
 Income taxes paid                                       -              (2)           (2) 
                                           ---------------  ---------------  ------------ 
 Net cash used in operating activities               (143)          (1,989)       (2,298) 
 Cash flows from investing activities 
 Additions of property, plant 
  and equipment                                          -                -           (1) 
 Interest received                                       -                6             - 
                                           ---------------  ---------------  ------------ 
 
   Net cash generated from/(used 
   in) investing activities                              -                6           (1) 
                                           ---------------  ---------------  ------------ 
 
 
  Cash flows from financing activities 
  Loans from related companies                   59         1,854         2,364 
  Repayments of loans from related 
   companies                                    (6)             -         (159) 
  Net cash generated from financing 
   activities                                    53         1,854         2,205 
                                          ---------                    -------- 
 
 Decrease in cash and cash equivalents         (90)         (129)          (93) 
 Cash and cash equivalents at 
  beginning of the financial period             109           202           202 
                                          ---------                    -------- 
  Cash and cash equivalents at 
   end of the financial period                   19            73           109 
                                          =========      ========      ======== 
 
 Cash and cash equivalents consist 
  of: 
 Cash at bank and in hand                        19            73           109 
                                          =========      ========      ======== 
 
 

NOTES TO THE INTERIM FINANCIAL INFORMATION

1. The interim financial information has been prepared under the historical cost convention. The principal accounting policies adopted in the preparation of this interim financial information are consistent with those followed in the Group's annual financial statements for the year ended 31 December 2013.

2. The Group has not early adopted certain new standards, amendments to standards and interpretations that have been issued at the time of preparing the interim financial information but are not yet effective. The directors of the Company (the "Directors") anticipate that all of the pronouncements will be adopted in the Group's accounting policy for the period beginning after the effective date of the pronouncements. The Directors are also currently assessing the impact of these new standards, amendments to standards and interpretation but are not yet in a position to state whether they would have material impact on the results and the financial position of the Group.

3. The interim financial information for the period ended 30 June 2014 does not constitute the Group's statutory accounts for that period. The interim financial information for the six months ended 30 June 2014 and 30 June 2013 is unaudited.

4. Loss per share attributable to shareholders has been calculated on the basis of the net loss after taxation of GBP465,000 (Six months ended 30 June 2013: loss GBP745,000, Year ended 31 December 2013: loss GBP2,026,000) and the weighted average number of shares in issue during the six months ended 30 June 2014 of 74,423,932 (Six months ended 30 June 2013: 62,661,793, Year ended 31 December 2013: 67,950,037). Diluted loss per share has not been presented as no dilutive instruments have been issued during each reporting period presented in financial information.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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