Half-yearly Report

29 August 2013

BISICHI MINING PLC
Interim Results for the period ended 30 June 2013
A STEADY START TO 2013

 For the six months ending 30 June 2013

  • Group Revenues:             £19.097 million           (2012: £16.477 million)
  • EBITDA:                           £3.184 million             (2012: £2.209 million)
  • EPS (basic):                      07p                           (2012: 10.86p)
  • Net Assets per share:      £1.72                           (2012: £1.65)

Sir Michael Heller, Chairman, states:

“In the first half of this year we have continued to benefit from steady coal production at Black Wattle and strong demand for our products both of which have contributed to a satisfactory profit.”

END

For further information, please call:
Andrew Heller/Garrett Casey Bisichi Mining PLC  020 7415 5030

 

Bisichi Mining PLC
Half year review – 30 June 2013

We are pleased to report to shareholders that for the six month period ending on 30 June 2013, Bisichi Mining achieved EBITDA of £3.2million (2012: £2.2 million). These results reflect the strong performance of our South African coal mining subsidiary, Black Wattle Colliery.  The physical demand for the lower quality coal, which we are currently mining at Black Wattle, has remained strong in both our domestic and export markets during the first six months of 2013. In particular, the South African coal market has continued to benefit from stable market conditions and the significantly improved performance of Transnet, the South African railway network.

During this period Black Wattle has accessed successfully a number of additional opencast pits. The transition into these new areas has ensured that our monthly production has been maintained at an average of 145,000 metric tonnes per month. Looking forward, we expect monthly production to remain at these same levels for the remainder of 2013 although we will be mining into much deeper reserves.

The Company’s UK retail property portfolio, which is managed by London & Associated Properties PLC, continues to perform well despite the ongoing difficulties in the UK retail property sector. Voids across the portfolio continue to remain low.

Your directors intend to pay an interim dividend of 1p per share which will be paid on the 31 January 2014, to shareholders on the register at the close of business on 3 January 2014.

On behalf of the Board we would like to thank all our staff for their hard work during the first six months of the year.

Sir Michael Heller                                      Andrew Heller
Chairman                                                           Managing Director
28 August 2013

 

Bisichi Mining PLC
Consolidated income statement
for the six months ended 30 June 2013

 

    Unaudited 6 months ended 30 June Unaudited 6 months ended 30 June Audited Year ended 31 December
2013 2012 2012
Notes £000 £000 £000
 
Group revenue 1          19,097            16,477            35,962
Operating costs          (17,492)          (15,268)          (33,088)
Operating profit on trading activities          1,605            1,209            2,874
Decrease in value of investment properties                  –              –                  (456)
(Loss)/gains on held for trading investments                    (48)            (54)                    39
Operating profit 1          1,557            1,155            2,457
Share of profit /(loss) in joint ventures                  34                  47                  (137)
Profit before interest and taxation          1,591            1,202            2,320
Interest receivable                    154          122                281
Interest payable                (170)                (205)              (411)
Profit before taxation 1            1,575            1,119            2,190
Income tax 2                  (404)                95                (650)
Profit for the period          1,171            1,214            1,540
       
Attributable to:      
Equity holders of the company                1,063        1,147 1,295
Non-controlling interest                    108            67                245
Profit for the period          1,171        1,214            1,540
   
Earnings per share – basic 3 10.07p 10.86p 12.27p
Earnings per share – diluted 3 9.92p 10.57p 12.08p

Bisichi Mining PLC
Consolidated statement of comprehensive income
for the six months ended 30 June 2013

    Unaudited 6 months ended 30 June Unaudited 6 months ended 30 June Audited Year ended 31 December
2013 2012 2012
£000 £000 £000
 
Profit for the period    1,171     1,214      1,540
Other comprehensive income:  
Exchange differences on translation of foreign operations        (367)          (143)          (391)
Other comprehensive income for the period, net of tax    (367)    (143)        (391)
Total comprehensive income for the period    804 1,071        1,149
 
Attributable to:    
Equity shareholders      738 1,011        936
Non-controlling interest          66 60          213
Total comprehensive income for the period    804 1,071        1,149

 

Bisichi Mining PLC
Consolidated Balance Sheet
as at 30 June 2013
    Unaudited 30 June Unaudited 30 June Audited 31 December
2013 2012 2012
Assets £000 £000 £000
Non-current-assets  
Value of investment properties attributable to the group 11,612 12,068 11,612
Fair value of head leases      198      204      202
Property 11,810 12,272 11,814
Reserves, plant and equipment 8,764 7,887 8,638
Investments in joint ventures 3,125 1,454 3,061
Loan to joint venture 1,080 1,138 1,117
Other investments      158      148       131
  Total non-current assets 24,937 22,899 24,761
Current assets      
Inventories 1,185 2,085 1,876
Trade and other receivables 7,926 7,010 7,604
Corporation tax recoverable 45 47 49
Held for trading investments 737 678 787
Cash and cash equivalents    2,540    1,346    1,802
    12,433 11,166 12,118
  Non-current assets held for sale            –      1,820          –
Total current assets 12,433 12,986 12,118
Total assets 37,370 35,885 36,879
Liabilities      
Current liabilities      
  Borrowings (7,840) (6,898) (6,186)
  Trade and other payables (7,477) (8,395) (9,218)
  Current tax liabilities      (118)      (102)            (2)
  Total current liabilities (15,435) (15,395) (15,406)
Non-current liabilities      
  Borrowings (86)
  Provision for rehabilitation (960) (1,002) (989)
  Finance lease liabilities (198) (204) (202)
  Deferred tax liabilities (2,606) (1,624) (2,437)
  Total non-current liabilities (3,764) (2,830) (3,714)
Total liabilities (19,199) (18,225) (19,120)
Net assets    18,171    17,660    17,759
Equity      
Share capital 1,056 1,056 1,056
Share premium 169 169 169
Translation reserve (1,130) (582) (805)
Other reserves 558 507 528
Retained earnings 17,008 16,219 16,367
Total equity attributable to equity shareholders 17,661 17,369 17,315
Non-controlling interest        510          291          444
Total equity    18,171    17,660 17,759

Bisichi Mining PLC
Consolidated Cash Flow Statement
For the six months ended 30 June 2013

    Unaudited 30 June Unaudited 30 June Audited  31 December
2013 2012 2012
£000 £000 £000
 
Cash flows from operating activities
Operating profit 1,557 1,155            2,457
Depreciation 1,593 1,007              2,253
Unrealised gain/(loss) on investments held for trading 48 54                (39)
Unrealised gain on investment properties                    –                    –              456
Share based payment expense 30 7                    27
Realised share of profit in joint venture 34 33 64
Increase in working capital (1,489) (188)              (1,478)
Net interest paid (16) (83)              (130)
Income tax (paid)/received (60)              83
Cash flow from operating activities 1,757 1,925              3,693
Cash flows from investing activities (2,484) (1,153)            (3,665)
Cash flows from financing activities (371) (2,264)              (550)
Net decrease in cash and cash equivalents (1,098) (1,492)            (522)
   
Cash and cash equivalents at 1 January 718 1,114              1,114
Exchange adjustment 93 42                  126
Cash and cash equivalents at end of period (287) (336)              718
   
Cash and cash equivalents  
For the purposes of the cash flow statement, cash and cash equivalents comprise the following balance sheet amounts:  
 

Cash and cash equivalents

2,540 1,346              1,802
Bank overdrafts (2,827) (1,682)            (1,084)
Cash and cash equivalents at end of period (287) (336)              718
     

Bisichi Mining PLC

Consolidated statement of changes in shareholders’ equity

for the six months ended 30 June 2013

  Share Share Translation Other Retained   Non-

controlling

Total
  capital premium reserve reserves earnings Total Interest Equity
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance as at 1 January 2012 1,056 169 (446) 500 15,494 16,773 231 17,004
Profit for the period 1,147 1,147 67 1,214
Exchange adjustment (136) (136) (7) (143)
Total comprehensive income for the period (136) 1,147 1,011 60 1,071
Dividend (422) (422) (422)
Equity share options 7 7 7
Balance at 30 June 2012 1,056 169 (582) 507 16,219 17,369 291 17,660
Balance as at 1 January 2012 1,056 169 (446) 500 15,494 16,773 231 17,004
Revaluation of investment properties (456) (456) (456)
Other income statement movements 1,751 (1,751) 245 1,996
Profit for the year 1,295 1,295 245 1,540
Exchange adjustment (359) (359) (32) (391)
Total comprehensive income for the year (359) 1,295 936 213 1,149
Dividend (422) (422) (422)
Equity share options 28 28 28
 

Balance at 31 December 2012

1,056 169 (805) 528 16,367 17,315 444 17,759
Profit for the year 1,063 1,063 108 1,171
Exchange adjustment (325) (325) (42) (367)
Total comprehensive income for the period (325) 1,063 738 66 804
Dividend (422) (422) (422)
Equity share options 30 30 30
Balance at 30 June 2013 1,056 169 (1,130) 558 17,008 17,661 510 18,171 


ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS:                                                                                                                                                                       

The results for the six months ended 30 June 2013 have been prepared in accordance with International Financial Reporting Standards (IFRS). The principal accounting policies applied are the same as those set out in the Financial Statements for the year ended 31 December 2012.

 

  1. Segmental analysis

For management purposes, the Group is organised into two operating Divisions, Mining and Property. These Divisions are the primary basis on which the Group reports its segment information. This is consistent with the way the Group is managed and with the format of the Group’s internal financial reporting.

 

  Unaudited
30 June
Unaudited 30 June Audited 31 December
  2013 2012 2012
   
Revenue
Mining 18,597 15,950 34,952
Property                  484            489        957
Other                    16      38        53
            19,097        16,477        35,962
   
 
Operating profit  
Mining            1,319            834           2,162
Property                    270                  339                210
Other                    (32)             (18)               85
             1,557         1,155           2,457
   
Share of profit/(loss) in joint ventures               34      47   (137)
Interest receivable                    154         122         281
Interest payable                (170)       (205)   (411)
Profit before taxation            1,575  1,119     2,190

 

 

  1. Taxation

Based on the results for the period:

Corporation tax at 23.5% (2012: 26.5%) 114 102 7
Prior year adjustment – UK (1)
113 102 7
Deferred taxation 291 (197) 643
404 (95) 650

 

  1. Earnings per share

Both the basic and diluted earnings per share calculations are based on a profit of £1,063,000 (2012: £1,147,000). The basic earnings per share has been calculated on 10,556,839 (2012: 10,556,839) ordinary shares being in issue during the year. The diluted earnings per share has been calculated on the number of shares in issue of 10,556,839 (2012: 10,556,839) plus the dilutive potential ordinary shares arising from share options of 155,712 (2012: 296,255) totalling 10,712,551 (2012: 10,853,094).

  1. Properties

Properties are included at valuation as at 31 December 2012 plus additions in the period ended 30 June 2013.

  1. Related Parties

The related parties and the nature of costs recharged are as disclosed in the group’s annual financial statements for the year ended 31 December 2012. The group paid management fees of £68,750 (30 June 2012: £103,125, 31 December 2012: £172,000) to London & Associated Properties PLC, an associated company.

  1. Financial information

The above financial information does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.   The figures for the year ended 31st December 2012 are based upon the latest statutory accounts, which have been delivered to the Registrar of Companies; the report of the auditors on those accounts was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.

As required by the Disclosure and Transparency Rules of the UK’s Financial Services Authority, the interim financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) and in accordance with both IAS 34 ‘Interim Financial Reporting’ as          adopted by the European Union and the disclosure requirements of the Listing Rules.

The half year results have not been audited or subject to review by the company’s auditors.

The annual financial statements of Bisichi Mining PLC are prepared in accordance with IFRS as adopted by European Union. The same accounting policies are used for the six months ended 30 June 2013 as were used for the year ended 31 December 2012.

The assessment of new standards, amendments and interpretations issued but not effective, are not anticipated to have a material impact on the financial statements.

The largest area of estimation and uncertainty in the interim financial statements is in respect of the directors’ judgements and estimates surrounding the life of mine and its reserves as well as to a lesser extent the valuation of investment properties (which are not re-valued at the half year end). Other areas of estimation and uncertainty are referred to in the group’s annual financial statements.

There is no material seasonal impact on the group’s financial performance.

Taxes on income in the interim periods are accrued using tax rates expected to be applicable to total annual earnings.

The interim financial statements have been prepared on the going concern basis as the Directors are satisfied the group has adequate resources to continue in operational existence for the foreseeable future.

7          Dividend

The interim dividend in respect of 2012, totalling £105,000 was paid on the 1st of February 2013. The final dividend in respect of 2012, totalling £317,000 was approved by the shareholders at the Annual General Meeting held on the 5th June 2013 and was paid on the 2nd August 2013. The final dividend in respect of 2012 is included as a liability in these interim financial statements.

A proposed interim dividend for the year ended 31 December 2013 totalling £105,000 was approved by the Board of Directors on 28th August 2013 and has not been included as a liability in these Interim Financial Statements.

8          Principal risks and uncertainties

The Group has an established risk management process which works within the corporate governance framework as set out in the 2012 Annual Report and Accounts. Risks and uncertainties identified by the Group are set out on page 11 of the 2012 Annual Report & Accounts and are reviewed on an ongoing basis. There have been no significant changes in the first half of 2013 to the principle risks and uncertainties as set out in the 2012 Annual Report & Accounts.

The principal risks as stated in the accounts reflect the challenging environment in which the business operates and are considered under the following broad headings:

Mining:

– Coal price

– Coal washing process

– Health & safety

– Coal qualities

– Currency movements

– Regulatory requirements & permissions

– Transport

– Power supply

– Flooding

– Environment

– Labour

Property:

– Property valuation

– Occupancy

9          Board approval

These interim results were approved by the Board of Bisichi Mining on 28th August 2013.

DIRECTORS RESPONSIBILITY STATEMENT AND REPORT ON PRINCIPAL RISKS AND UNCERTAINITIES

Responsibility Statement

We confirm to the best of our knowledge:

(a) the condensed set of financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;

(b) the interim management report includes a fair review of the information required by:

(1) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(2) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during the period; and any changes in the related party transactions described in the last annual report that could do so.

Sir Michael Heller                                                                                             Andrew Heller
Chairman                                                                                                          Managing Director
28 August 2013


DIRECTORS AND ADVISERS                                                                   

Directors  Sir Michael A Heller MA, FCA (Chairman)

Andrew R Heller MA, ACA (Managing Director)

Robert Grobler PR Cert Eng (Mining Director)

Garrett Casey CA (SA) (Finance Director)

C A Joll MA (Non-executive)

John A Sibbald MA (Non-executive)

 

Secretary &  Registered office
Heather A Curtis ACIS
24 Bruton Place
London W1J 6NE

Black Wattle Colliery – Directors
Robert Corry (Chairman)
Andrew Heller (Managing Director)
Garrett Casey (Finance Director)
Robert Grobler (Mining Director)
Ethan Dube (Commercial Director)

General mine manager                   Luis Pinel

Registrars and transfer office
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU

Telephone 0871 664 0300

(Calls cost 10p per minute + network extras)

or +44 208 639 3399 for overseas callers

Website: www.capitaregistrars.com

E-mail: ssd@capitaregistrars.com

Company registration number      112155 (Incorporated in England and Wales)

Website: www.bisichi.co.uk

E-mail: admin@bisichi.co.uk