KAROO ENERGY PLC
(“Karoo Energy” or the “Company”)
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2016
CHIEF EXECUTIVE OFFICER’S STATEMENT
I am pleased to announce that the company has made significant operational progress on its shale gas and CBM licenses in Botswana’s Kalahari-Karoo basin and we expect to make an announcement in the near future with the initial results of our drilling program to-date.
At a corporate level we were delighted to welcome Dr Allen Zimbler to the Board of Karoo Energy Plc as our new Non-Executive Chairman.
Dr Zimbler retired from Investec Bank plc at the end of March 2016, having held the positions of Chief Integration Officer of the group, member of the group executive, and executive director of Investec Bank plc. Allen first started at Investec Bank plc in September 2001.
Prior to 2001, Dr Zimbler ran his own strategic management and organisation development consultancy over a twenty-year period. During this time he consulted to numerous organisations internationally, including Investec Bank plc, in the fields of culture, strategy formulation and implementation and organisation development. He specialised in the retail, financial services and information technology sectors.
The financial results for the year ended 30 April 2016 show a loss after taxation of GBP357,691 (2015: GBP159,302).
The directors do not recommend payment of a dividend (2015: £Nil).
I am pleased at the progress made since my last report to shareholders and look forward to providing investors with detail on further progress over the coming months.
Chief Executive Officer,
5 October 2016
The Directors of Karoo Energy accept responsibility for the content of this announcement.
020 3130 0674
Peterhouse Corporate Finance Limited
Guy Miller / Mark Anwyl
Telephone: 020 7220 9796
Consolidated Income Statement for the year ended 30 April
|Cost of sales||-||-|
|Loss before taxation||(359,545)||(159,780)|
|Loss for the financial year attributable to the Company’s equity shareholders||(357,691)||(159,302)|
|Loss per share from operations|
|Basic and diluted loss per share (pence)||(0.2341)||(0.1124)|
Consolidated Statement of Comprehensive Income for the year ended 30 April
|Loss for the financial year||(357,691)||(159,302)|
|Total comprehensive income for the financial year attributable to the Company’s equity shareholders||(357,691)||(159,302)|
All amounts relate to continuing operations.
Consolidated Balance Sheet as at 30 April
|Trade and other receivables||19,011||42,253|
|Cash and cash equivalents||294,546||29,152|
|Equity and liabilities|
|Capital and reserves|
Trade and other payables
|Total equity and liabilities||675,809||286,027|
The financial statements were approved by the Board of Directors on 5 October 2016 and were signed on its behalf by:
Consolidated Statement of Changes in Equity
|For the year ended 30 April 2016|
|Balance at 1 May 2015||362,264||431,572||(638,635)||6,922||162,123|
|Loss for the financial year||-||-||(357,691)||(1,854)||(359,545)|
|Total comprehensive income||-||-||(357,691)||(1,854)||(359,545)|
|Issue of shares||88,185||1,145,087||-||-||1,233,272|
|Acquisition of non-controlling interests||-||-||(700,408)||235||(700,173)|
|Balance at 30 April 2016||450,449||1,576,659||(1,696,734)||5,303||335,677|
|For the year ended 30 April 2015|
|Balance at 1 May 2014||344,764||309,072||(520,317)||1,863||135,382|
|Loss for the financial year||-||-||(159,302)||(478)||(159,780)|
|Total comprehensive income||-||-||(159,302)||(478)||(159,780)|
|Issue of shares||17,500||122,500||-||-||140,000|
|Non-controlling interest on acquisition||-||-||-||5,537||5,537|
|Share based payments||-||-||40,984||-||40,984|
|Balance at 30 April 2015||362,264||431,572||(638,635)||6,922||162,123|
Consolidated Statement of Cash Flows for the year ended 30 April
|Cash flow from operating activities|
|Loss for the financial year before tax||(359,545)||(159,780)|
|Revaluation loss on investments||226||-|
|Share based payments||-||40,984|
|Changes in working capital|
|Decrease / (increase) in trade and other receivables||23,242||(11,029)|
|Increase in trade and other payables||142,968||57,990|
|Cash outflow from operating activities||(189,849)||(71,312)|
|Cash flow from investing activities|
|Cash spend on exploration activities||(147,856)||-|
|Acquisition of business||-||(42,827)|
|Net cash used in investing activities||(147,856)||(42,827)|
|Cash flow from financing activities|
|Issue of shares||533,099||140,000|
|Proceeds from related party loan||70,000||-|
|Net cash from in financing activities||603,099||140,000|
|Net increase in cash and cash equivalents||265,394||25,861|
|Cash and cash equivalents at beginning of financial year||29,152||3,291|
|Cash and cash equivalents at end of financial year||294,546||29,152|
During the year ended 30 April 2016 the Group made a loss of £357,691 (2015: a loss of £159,780). Whilst the Group had net assets of £335,667 (2015: net assets of £162,123) as at 30 April 2016 it had net current liabilities of £26,575 (2015: net current liabilities of £52,273) at that date. The operations of the Group are primarily financed from funds which the Parent Company raises from share placings.
The Group's capital management policy is to raise sufficient funding to finance the Group’s near term exploration and development objectives.
The Company successfully raised £533,100 through share placings (excluding those shares issued to acquire the 15% of Tamboran Botswana (Pty) Limited and 7.5% of Equatorial Oil & Gas plc (see note 21) during the year and had raised a further £200,000 subsequent to the year end. The Group had a cash balance of £180,488 at 4 October 2016. The Group will need to raise additional cash funding to support both working capital requirements and its obligations under the exploration licences, as set out in note 23 regarding the Group financial commitments. Should such funding not be obtained, the Group would fail to meet the required annual spend on the exploration licences which in turn may lead to exploration assets being impaired and potentially even revoked by the Ministry of Mines in Botswana.
The Directors believe that the Group will be able to raise as required, sufficient cash to enable it to continue its operations, and continue to meet, as and when they fall due, its planned and committed exploration and development activities and liabilities for at least the next twelve months from the date of approval of these financial statements. For this reason, the Directors continue to adopt the going concern basis in preparing the accounts. However, there can be no guarantee that the required funds we be raised within the necessary timeframe.
Consequently, a material uncertainty exists that may cast doubt on the Group's ability to continue to operate as planned and to be able to meet its commitments and discharge its liabilities in the normal course of business for a period not less than twelve months from the date of this report. The financial statements do not include the adjustments that would result if the Group was unable to continue in operation.