Source - RNS
RNS Number : 3925L
New World Oil & Gas
30 September 2016
 

For immediate release                                                                                                30 September 2016

 

NEW WORLD OIL AND GAS PLC

(the "Group" or the "Company")

 

Interim Report

For the six months ended

30 June 2016

 

Chairman's Statement

 

For the six months ended 30 June 2016, the Company reported a profit before tax of £108,000 (2014: Loss £922,000). During this period, the Board has worked to reduce the Company's cost base from historic levels, which has been achieved through a reduction in the size of the board and associated infrastructure.

The value of all assets relating to the Company's oil and gas activities have been fully written down and the Company's assets now principally comprise cash and short term loans. This Interim Report has been produced in pounds sterling (£) as opposed to US Dollars ($).  This change has been made as the majority of the Company's assets now comprise cash or short term loans held in £ and therefore more accurately describes the Company's asset base.  The Board also believes that £ is a more appropriate currency for the Company to report in going forward.

Strategy

As previously announced, given the difficulties facing the oil and gas industry and in raising funds for the Company's existing assets in Belize, the Company has been reviewing various acquisition opportunities in sectors other than oil and gas with a view to creating value for shareholders.

The Company's only remaining oil and gas asset is the Blue Creek Production Sharing Agreement in Belize, which is due to expire on 31 October 2016. The Board has recently announced that the Company is currently seeking to dispose or relinquish this asset. The Company has also commenced the process of dissolving the subsidiaries associated with its Danish licenses which were relinquished in September 2015.

On 9 May 2016, the Company announced that it had entered into a conditional agreement to acquire Big Sofa Limited, a company operating in the high growth sector of video analytics.  The work on this acquisition is progressing well and the Company expects to update the market with regard to this possible acquisition in the near future.   As at today's date, the Company has provided a total of £600,000 as a short term loan for working capital purposes to Big Sofa Limited. 

On 9 May 2016, given that the proposed acquisition of Big Sofa Limited would constitute a reverse takeover under the AIM Rules, the Directors requested a suspension in the trading of the shares pending publication of the required AIM admission document.    In the event that such a document is not published within six months of suspension, trading in the shares will be cancelled.

Nicholas Lee

Non-executive Chairman

30 September 2016

 

 

 

 

Enquiries:

Adam Reynolds

New World Oil and Gas plc

Tel. +44 (0) 7785 908158

or

Nicholas Lee

New World Oil and Gas plc

Tel. +44 (0) 20 7580 7576

 

Roland Cornish or Felicity Geidt

Beaumont Cornish Limited (Nominated Adviser)

Tel: +44 (0)20 7628 3396

 

Jeremy Garcia, Ben Simons or Fiona Henson

Vigo Communications (Financial Public Relations)

Tel: +44 (0)20 7830 9700

 

 

Consolidated Statement of Comprehensive Income

For the 6 months ended 30 June 2016

 







Note

Six months ended 30 June 2016

Six months ended June 2015

Year ended

31 December 2015








(Unaudited)

(Unaudited)

(Audited)




£'000

£'000

£'000

Revenue



-

-

-







Impairment of intangible assets



-

(361)

(1,421)

Administrative expenses



(223)

(435)

(860)

Legal and professional costs



(103)

(131)

(347)

Foreign exchange differences on conversion to presentational currency



432

-

(12)




_______

_______

_______

Operating Profit/(Loss)



106

(927)

(2,640)

Interest receivable



2

5

6




_______

_______

_______

Profit / (Loss) before Taxation



108

(922)

(2,634)

Income tax



-

-

-




_______

_______

_______

Loss for the period



108

(922)

(2,634)




_______

_______

_______

Other comprehensive income:






Foreign exchange differences



5

12

12




_______

_______

_______

Total comprehensive loss for the period



113

(910)

(2,622)




======

======

======







Basic and diluted loss per share (expressed in pence)


2

0.02

(0.13)

(0.37)

 

 

 

 

 

 

 

 

 

Consolidated Statement of Financial Position

As at 30 June 2016

 








30 June 2016

30 June 2015

31 December 2015







Notes

(Unaudited)

(Unaudited)

(Audited)








£'000

£'000

£'000











ASSETS





NON-CURRENT ASSETS






Intangible assets - exploration expenditure


3

-

993

-

Tangible assets - plant and equipment



-

5

-








________

________

________

Total non-current assets



-

998

-




________

________

________











CURRENT ASSETS






Trade and other receivables



386

264

-

Cash and cash equivalents



1,775

188

2,460




________

________

________

Total current assets



2,161

452

2,460








________

________

________

TOTAL ASSETS



2,161

1,450

2,460




________

________

________

LIABILITIES






Current liabilities






Trade and other payables



(87)

(554)

(499)








________

________

________

Total current liabilities



(87)

(554)

(499)




________

________

________











NET CURRENT (LIABILITIES)/ASSETS



2,074

(102)

1,961




________

________

________

NET ASSETS



2,074

896

1,961




=======

=======

=======

 






SHAREHOLDERS' EQUITY






Share capital



-

-

-

Share premium



33,612

30,407

33,558

Share-based payment reserve



163

590

217

Retained losses



(31,718)

(30,113)

(31,826)

Foreign exchange reserves



17

12

12




________

________

________

TOTAL EQUITY



2,074

896

1,961




=======

=======

=======







 

 

Consolidated Statement of Cash Flows

For the 6 months ended 30 June 2016

 








£'000

£'000

£'000








Six months ended 30 June 2016

Six months ended 30 June 2015

Year ended

31 December 2015








(Unaudited)

(Unaudited)

(Audited)











Cash flows from operating activities





Operating loss



106

(927)

(2,640)

Depreciation



-

4

9

Impairment of intangible assets



-

361

1,421

(Increase) / Decrease in receivables



(387)

67

338

Decrease in payables



(412)

(101)

(187)

Decrease in inventories



-

33

33

Foreign exchange differences



6

(5)

(10)




________

________

________

Net cash outflow from operating activities



(687)

(568)

(1,036)








________

________

________







Returns on investments and servicing of finance






Interest received



2

5

6




________

________

________

Net cash inflow from returns on investments and servicing of finance



2

5

6




________

________

_______

Investing activities






Payments to acquire intangible assets



-

-

(39)




________

________

________

Net cash outflow from investing activities



-

-

(39)








________

________

________







Cash flows from financing activities






Proceeds on issuing of ordinary shares



-

-

3,500

Cost of issue of ordinary shares



-

-

(722)








________

________

________

Net cash inflow from financing activities



-

-

2,778




________

________

________

Net decrease/(increase) in cash and cash equivalents



(685)

(563)

1,709







Cash and cash equivalents at beginning of period



2,460

751

751








________

________

________

Cash and cash equivalents at end of period



1,775

188

2,460




=======

=======

=======







 

 

Consolidated Statement of Changes in Equity

For the 6 months ended 30 June 2016

 



Share premium

Share-based payment reserve

Retained loss

Foreign exchange differences

 

 

 

Total





£'000

£'000

£'000

£'000

£'000

 










 

Balance at 1 January 2015

30,407

590

(29,191)

-

1,806

 







 

Total comprehensive loss for the period

-

-

(922)

-

(922)

 

Foreign exchange differences

-

-


12

12

 


_______

_______

_______

_______

_______

 

At 30 June 2015

30,407

590

(30,113)

12

896

 


======

======

======

======

======

 

 

Total comprehensive loss for the period


-

(1,713)

-

(1,713)







 

Transactions with owners in their

capacity as owners

 

Shares issued

3,500

-

-

-

3,500

Cost of shares issued

(722)

-

-

-

(722)

Expiration of unexercised warrants

373

(373)

-

-

-





_______

_______

_______

_______

_______

At 31 December 2015

33,558

218

(31,826)

-

1,961


======

======

======

======

======

 

Total comprehensive profit for the period


-

108

5

113







 

Transactions with owners in their

capacity as owners

 

Expiration of unexercised warrants

54

(54)

-

-

-


_______

_______

_______

_______

_______

At 30 June 2016

33,612

163

(31,718)

(17)

2,074


======

======

======

======

======

 

 

Notes to the Interim Report

 

1.   PRINCIPAL ACCOUNTING POLICIES

Presentation of Interim results

This interim report was approved by the Directors on 30th September 2016.  The results for the 6 months ended 30 June 2016 have not been audited.  The figures have been prepared using applicable accounting policies and practices consistent with those adopted in the 2015 annual report and to be adopted in the 2016 annual report.  The financial information contained in this interim report does not constitute statutory accounts as defined by the Companies (Jersey) Law 1991.

 

The interim accounts have been prepared under the historical cost convention in accordance with International Financial Reporting Standards as adopted by the European Union.

 

The Directors acknowledge their responsibility for the interim report and confirm that, to the best of their knowledge, the interim consolidated financial statements for the six months ended 30 June 2016 have been prepared in accordance with International Financial Reporting Standards, including IAS 34 "Interim Financial Statements", and complies with the listing requirements for companies trading securities on the AIM market. This interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 31 December 2015.

 

The Directors are of the opinion that the funds held indicate that preparation of the accounts on a going concern basis is appropriate.

The Group's functional currency is US dollars and assets and liabilities are translated into pounds sterling, the presentation currency, at the rate of exchange ruling at the balance sheet date. The Group's profit or loss is translated at the exchange rates prevailing at the date of the transactions. The exchange differences arising on the translation are taken directly to other comprehensive income.

 

2. LOSS PER SHARE

 








Six months ended 30 June 2016

Six months ended 30 June 2015

Year ended

31 December 2015








(Unaudited)

(Unaudited)

(Audited)








£'000

£'000

£'000











Profit/(Loss) for the period


108

(922)

(2,634)







Weighted average number of ordinary shares in issue - millions



 

703

 

703

 

703







Profit/(Loss) per share - basic (pence)



0.02

(0.13)

(0.37)

 

No diluted loss per share is presented as the effect of the exercise of outstanding warrants is to decrease the loss per share.

 

3.   INTANGIBLE ASSETS - Exploration Expenditure

 




£'000

 


Cost



 


As at 1 January 2015


8,096

 





 


Additions in the six months ended 30 June 2015:


-

 


Currency translation differences


(77)

 









______

 


As at 30 June 2015:





8,019

 









______

 





 





 


Additions in the six months ended 31 December 2015:


40

 


Currency translation differences


501

 









______

 


As at 31 December 2015:





8,560

 









______

 





 





 


Additions in the six months ended 30 June 2016:


-

 


Currency translation differences


901

 




______





______


As at 30 June 2016:


9,461




 




______





______





 





 


Accumulated amortisation and impairment



 


As at 1 January 2015


6,740

 





 


Impairment charge


350

 


Currency translation differences


(64)

 





 


As at 30 June 2015


7,026

 





 


Impairment charge


1,096

 


Currency translation differences


438

 





 


As at 31 December 2015:


8,560

 





 


Impairment charge


-

 


Currency translation differences


901

 




9,461

 


As at 30 June 2016:



 





 


Carrying value at 30 June 2016


-

 


Carrying value at 31 December 2015



______-

 


Carrying value at 30 June 2015





993

 









______

 

 

The Directors undertook an impairment review of the Group's intangible assets as at 31 December 2015 and determined it prudent to record a full impairment reserve.

 

 

 

4.   REVENUE AND SEGMENTAL ANALYSIS          

 

Segment information is presented in respect of the Group's management and internal reporting structure.  The Group had no revenue during the year.

 

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

 

Operating and Geographical segments

The Group comprises the following operating segments:

 

Corporate - Parent company administrative costs, general business development and AIM related costs. 

 

Exploration & development - costs in relation to the Group's direct oil and gas exploration operations.

 

Six months ended 30 June 2016

Business Segments



Corporate

Exploration & development

Total








£'000

£'000

£'000











Result










Profit for the period



108

-

108




======

======

======

Balance sheet





Segment assets



2,161

-

2,161

Segment liabilities



(87)

-

(87)




_______

_______

_______

Net assets


2,074

-

2,074




======

======

======

 

Geographical segments


Denmark

Belize

Jersey

Total







£'000

£'000

£'000

£'000











Result





Profit for the period


-

-

108

108


======

======

======

======







Balance Sheet






Segment assets - Intangible


-

-

-

-

                           - Other   

-

-

2,161

2,161

Segment liabilities


-

-

(87)

(87)



_______

_______

_______

_______

Net assets


-

-

2,074

2,074



======

======

======

======

 

Six months ended 30 June 2015

Business Segments



Corporate

Exploration & development

Total








£'000

£'000

£'000











Result










Loss for the period


(539)

(382)

(921)




======

======

======

Balance sheet





Segment assets



410

1,040

1,450

Segment liabilities



(549)

(5)

(554)




_______

_______

_______

Net assets


(139)

1,035

896




======

======

======

 

Geographical Segments


Denmark

Belize

Jersey

Total







£'000

£'000

£'000

£'000











Result





Loss for the period


(373)

(9)

(539)

(921)



======

======

======

======

 

Balance Sheet






Segment assets - Intangible


-

993

-

993

                           - Other   

18

29

409

456

Segment liabilities


(5)

-

(549)

(554)



_______

_______

_______

_______

Net assets


13

1,022

(140)

895



======

======

======

======

 

Year ended 31 December 2015

Business Segments



Corporate

Exploration & development

Total








£'000

£'000

£'000











Result










Loss for the period



(1,157)

(1,477)

(2,634)




======

======

======

Balance sheet





Segment assets



2,443

17

2,460

Segment liabilities



(483)

(16)

(499)




_______

_______

_______

Net assets


1,960

1

1,961




======

======

======

 

Geographical Segments


Denmark

Belize

Jersey

Total







£'000

£'000

£'000

£'000











Result





Loss for the period


(408)

(1,069)

(1,157)

(2,634)


======

======

======

======







Balance Sheet






Segment assets - Intangible


-

-

-

-

                           - Other   

8

9

2,443

2,460

Segment liabilities


(16)

-

(483)

(499)



_______

_______

_______

_______

Net assets


(8)

9

1,960

1,961



======

======

======

======

 

5.   EVENTS AFTER THE REPORTING DATE

 

-     On 19 July 2016, the second tranche of the £500,000 loan to Big Sofa Limited for working capital purposes, being £250,000, was drawn down in full.

 

-     On 1 September 2016, a further loan of £100,000 was provided to Big Sofa Limited on the same terms as the loan already advanced and as announced on 19 July 2016.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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