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Parkmead Group (The) PMG Final Results



  Parkmead Group (The) (PMG) - Final Results

RNS Number : 3015R
Parkmead Group (The) PLC
16 November 2012
 



16 November 2012

 

The Parkmead Group plc

("Parkmead", "the Company" or "the Group")

 

Preliminary Results for the year ended 30 June 2012

The Parkmead  Group plc,  an  emerging independent  oil  and gas  company,  is 
pleased to report  its preliminary  results for the  12 months  ended 30  June 
2012.

HIGHLIGHTS

·      Agreed four acquisitions in seven months, creating a balanced portfolio
of assets across the UKCS and onshore Netherlands

·      Significant reserves  position (2P reserves  of 25.1mmboe) with  upside 
potential in core areas

·      First production transaction agreed within one year of establishing the
oil and gas team, adding future cash flow to the Group's portfolio

·      Substantial licence awards announced in the UKCS 27^th Licensing  Round 
in October 2012,  gaining stakes in  25 blocks across  the Central North  Sea, 
West of Scotland and West of Shetlands

·      Successful first appraisal well for Parkmead at the UK Platypus  field, 
flowing 27mmscf per day, in August 2012

·      Reported Revenue of £2.9 million for the 12 months to 30 June 2012

·      Total Assets rose 86% to £22.9  million at 30 June 2012 (£12.3  million 
at 30 June 2011)

·      Cash balances of £7.7 million as at 30 June 2012

·      During the financial year the Group secured a shareholder loan facility
of £8 million  and raised  a further £8.53  million from  a successful  equity 
placing

Parkmead's Executive Chairman, Tom Cross commented:

"2012 has been an excellent first full year of E&P operations for The Parkmead
Group. Following a successful 2011, which  saw the Company bring together  its 
experienced oil and  gas team,  the Group has  generated significant  momentum 
completing a series of acquisitions in the North Sea and onshore  Netherlands. 
Parkmead has built a high quality and balanced portfolio, with a rapid  growth 
in its  reserve base,  and since  the financial  year end  has achieved  first 
production through the acquisition of assets in the Netherlands.

In October 2012  the Group was  awarded interests  in a total  of 25  offshore 
blocks across the UKCS, in the  27th Licensing Round. These new licences  will 
significantly increase Parkmead's asset base in  the UK and complete what  has 
been an exceptional year for the Company."

 

For enquiries please contact:

The Parkmead Group plc                 01224 622200
Tom Cross, Executive Chairman          tom.cross@parkmeadgroup.com
Donald MacKay, Chief Financial Officer Donald.mackay@parkmeadgroup.com
Kathryn Ramsay, Investor Relations     kathryn.ramsay@parkmeadgroup.com

 
Charles Stanley Securities             020 7149 6000
Nominated Adviser & Broker
Marc Milmo / Carl Holmes

 
College Hill                           020 7457 2020
Matthew Tyler
Alexandra Roper

 

 

                             Chairman's Statement

 

As Parkmead drives forward to become a significant new independent oil and gas
company, I am pleased to  announce our audited results  for the year ended  30 
June 2012 and to share with you our progress to date, in what has been a  busy 
and successful year of asset growth.

Operations and Portfolio Growth

The Group has  made considerable  early progress  towards its  stated goal  of 
building a  significant independent  oil  and gas  company. During  2012,  the 
Company made  a  number  of  acquisitions  across  the  UKCS  and  Netherlands 
demonstrating the  Board's intentions  to grow  the business  rapidly  through 
acquisitions, alongside organic growth. As  a result, Parkmead's reserve  base 
has transformed in  the last twelve  months with the  Group reporting a  rapid 
growth in its oil and gas reserves  to 25.1 million barrels of oil  equivalent 
(mmboe) of 2P Reserves and 10.3mmboe of 2C Contingent Resources (note 1).

In line with  our strategy, Parkmead's  team has shown  a strong appetite  for 
value accretive transactions, at both asset and corporate level, as we look to
add opportunities  across  the entire  spectrum  from exploration  through  to 
appraisal, development  and  production. Parkmead  is  pleased to  have  added 
assets at every stage of the lifecycle through the four transactions agreed in
2012, creating a high  quality and diverse asset  base. In particular, we  are 
delighted to  have  signed,  and  subsequently completed  in  August  2012,  a 
milestone transaction which  adds production to  the Group's portfolio  within 
the first year of establishing the oil and gas team.

Acquisitions to  date  have focused  on  known opportunities  in  the  Group's 
preferred area of Europe, and have ranged from stakes in oil and gas fields in
the UKCS  to  a corporate  transaction,  acquiring DEO  Petroleum  plc,  which 
completed in August 2012. We believe  that the Group's high level of  activity 
makes clear both the  drive and ambition  of our Company,  and its staff,  and 
creates a strong  platform to become  a key E&P  player in the  North Sea  and 
beyond.

Parkmead is equally focused on  building the business through organic  growth, 
through licence  applications,  seismic  and drilling,  and  via  acquisition. 
During 2012, the Group made a major suite of applications for new UK  licences 
in the UKCS 27th  Licensing Round. I  am very pleased to  report that we  have 
been successful in this licensing round, which was announced in October  2012, 
with the award of six licences comprising interests in a total of 25  offshore 
blocks and partial blocks across the  Central North Sea, West of Scotland  and 
West of Shetlands. In addition, Parkmead has also applied for certain licences
in the 27th  Round within the  UKCS Southern Gas  Basin. These are  yet to  be 
awarded by the UK Government  due to their location  close to, or in,  certain 
Specific Areas of Conservation (SACs) and Special Protection Areas (SPAs).  In 
recognition of the specific expertise of the Parkmead technical team, we  will 
lead the work programme as operator of these newly awarded UK assets,  working 
closely with our joint-venture  partners. The Parkmead oil  and gas team  will 
continue to utilise  its detailed  technical knowledge of  certain proven  and 
frontier areas to identify and acquire  assets, and participate in further  UK 
and international licensing rounds.

In August 2012, the Group was delighted to announce excellent drilling results
from the Platypus appraisal well in the UK Southern North Sea. This horizontal
well was successfully completed and flowed  at 27 million standard cubic  feet 
of gas per day. As we move into 2013, the Group has planned an active  seismic 
and drilling programme across our portfolio of assets.

Results

The Group's  revenue for  the year  ending 30^th  June 2012  was £2.9m  (2011: 
£3.7m).  Administrative  expenses  were  £5.5m  (2011:  £5.3m).  The   Group's 
operating loss for the year increased  to £4.7m (2011: £3.6m). The loss  after 
tax was £4.9m (2011: £3.6m). Total  comprehensive loss for the year was  £5.1m 
(2011: Income £35k).

The Group's  total  assets  increased  to  £22.9m  (2011:  £12.3m),  including 
available-for-sale financial  assets of  £6.5m (2011:  £7.1m). Cash  and  cash 
equivalents increased to  £7.7m (2011: £1.3m).  The total current  liabilities 
increased to  £4.2m (2011:  £1.1m) mainly  due to  increased trade  and  other 
payables of £4.1m (2011: £0.8m).

The Group  net asset  value increased  to £12.3m  (2011: £9.0m).  There was  a 
modest equity  raising of  £8.53m in  March  2012, in  line with  the  Group's 
authority to  place 10%  of  equity for  cash. This  resulted  in a  total  of 
60,960,182 new ordinary  shares being issued  at a placing  price of 14  pence 
(representing a discount of 8.5 per  cent. to the Group's average closing  mid 
market price over a 3 month period  prior to the announcement of the  placing, 
being 15.3 pence). In addition, some 4,857,142 new ordinary shares were issued
on the exercise  of options,  bringing the  Group's total  ordinary shares  in 
issue  to  675,419,147  (2011:  609,601,823).  Subsequent  to  the  30th  June 
year-end, the Group completed  the acquisition of  fellow independent oil  and 
gas company, DEO  Petroleum plc. This  acquisition was completed  by way of  a 
court sanctioned  Scheme  of  Arrangement and  offered  DEO  shareholders  two 
Parkmead shares for every DEO share held. Following these 86,219,860  ordinary 
shares being admitted for trading, the Group's total ordinary shares in  issue 
increased to 761,639,007.

As at 30  June 2012 Parkmead  had drawn  £2.9m of its  £8.0m shareholder  loan 
facility, which was  raised in October  2011 in conjunction  with the  Group's 
first acquisition in the UK North Sea.

The Board is not recommending the payment of a dividend in 2012 (2011: nil).

Investments

The Group's  principal  investment  is  shares held  in  Faroe  Petroleum  plc 
("Faroe") (LSE AIM: FPM.L.). As at 30  June 2012 the value of this  investment 
was £6.5m (30 June 2011: £7.1m). The investment is held as  available-for-sale 
and the decrease in its value due  to share price movement has been  reflected 
in equity.

Faroe's share price fell from 161p to 148p over the 12 months to 30 June 2012.
Faroe reported a  significant boost to  production, oil and  gas reserves  and 
cash flow,  together with  continued exploration  success. However,  after  an 
unsuccessful result at the company's first operated well in Norway,  targeting 
the Clapton prospect, the share price dropped  to 148p at the 30th June  2012. 
We remain of the view that Faroe has long-term upside with an ongoing drilling
programme and a broad portfolio of exploration licences.

 

Outlook

The Directors  of Parkmead  are delighted  with the  significant progress  the 
Group has made to date  in building an exciting,  new independent oil and  gas 
company. With a balanced asset base  and first production already achieved  by 
the Group, we believe  Parkmead has gained considerable  momentum in the  last 
twelve months. In addition, we are particularly encouraged by the  substantial 
licence interests we  were awarded, as  operator, in the  UKCS 27th  Licensing 
Round.

Parkmead's wholly-owned subsidiary  company, Aupec, continues  to perform  oil 
and gas industry  benchmarking and  petroleum economics  for a  wide range  of 
energy companies  and governments  and the  Directors believe  that the  Group 
benefits from the  experience, technical capabilities  and relationships  that 
have been built up over 25 years of successful operations within Aupec.

As we look ahead into 2013 and beyond, the Group has a continued appetite  for 
acquisitions and  will  look  to  add reserves  through  its  active  drilling 
programme. We believe the Group has created a strong platform to become a  key 
E&P player in  the North  Sea and  elsewhere in  Europe. We  will continue  to 
update shareholders as we make further progress.

 

 

Tom Cross

Executive Chairman

15 November 2012

 

Notes:

 

1.   Dr Colin Percival, Parkmead's Vice President Exploration and  Production, 
who holds a First Class Honours Degree in Geology and a Ph.D in  Sedimentology 
and has over 30 years'  experience in the oil  and gas industry, has  reviewed 
and  approved  the  technical  information  contained  in  this  announcement. 
Reserves and contingent resources estimates are  stated as at 31 October  2012 
and includes deals  signed during  the year that  subsequently completed  post 
financial year  end.  Parkmead's  evaluation of  reserves  and  resources  was 
prepared in accordance  with the  2007 Petroleum  Resources Management  System 
prepared by the  Oil and Gas  Reserves Committee of  the Society of  Petroleum 
Engineers and reviewed and jointly  sponsored by the World Petroleum  Council, 
the American Association of Petroleum Geologists and the Society of  Petroleum 
Evaluation Engineers.

 

Group income statement

For the year ended 30 June 2012

                                                  Note        2012        2011
                                                                 £           £
Continuing operations
Revenue                                                  2,948,901   3,745,565
Cost of sales                                          (1,435,994) (2,016,418)
Gross profit                                             1,512,907   1,729,147
Other operating income                                           -       7,951
Exploration and evaluation expenses                      (685,621)           -
Administrative expenses                                (5,531,847) (5,310,345)
Operating loss                                         (4,704,561) (3,573,247)
Finance income                                              11,484      12,417
Finance costs                                            (222,737)       (797)
Profit on sale of available-for-sale financial
assets                                                           -     112,388
Other losses on financial assets at fair value
through profit or loss                                           -       (927)
Loss before taxation                                   (4,915,814) (3,450,166)
Taxation                                                     4,225   (139,470)
Loss for the year from operations                      (4,911,589) (3,589,636)
Discontinued operations
Gain for the year from discontinued operations                   -   1,732,247
Loss for the year attributable to the equity holders
of the Parent                                          (4,911,589) (1,857,389)
Loss per share (pence)
Continuing operations

Basic and diluted                                  2        (0.78)      (0.59)
Continuing and discontinued operations

Basic and diluted                                  2        (0.78)      (0.31)

 

 

Group and company statement of comprehensive income

for the year ended 30 June 2012

                                                                   

                                         Group                  Company
                                      2012        2011        2012        2011

                                         £           £           £           £
Loss for the year              (4,911,589) (1,857,389) (5,037,678) (1,434,087)
Other comprehensive income
                                                                              
Gains arising on repayment of
employee share-based loans         369,012           -     369,012           -
Fair value (loss)/gain on                                                     
available-for-sale financial
assets                           (590,900)   1,892,634   (590,900)   1,892,634
                                                                              

Other comprehensive                                                           
income/(loss) for the year,
net of tax                       (221,888)   1,892,634   (221,888)   1,892,634
                                                                              

                                                                              
Total comprehensive
income/(loss) for the year                                                    
attributable to the equity
holders of the Parent          (5,133,477)      35,245 (5,259,566)     458,547

Group and company statement of financial position

As at 30 June 2012

                                  Group                      Company
                                2012          2011         2012           2011

                                        (restated)                  (restated)
                                   £             £            £            £  
Non-current assets                                                            
Property, plant and                                                           
equipment                    248,137       128,557      200,385       77,295
Goodwill                   2,173,532     2,173,532            -            -  
Other intangible                                                              
assets                        25,170        43,657            -            -
Exploration and                                                               
evaluation assets          3,063,502             -            -            -
Investment in
subsidiary and joint                                                          
ventures                           -             -    3,931,404    3,902,817
Available-for-sale                                                            
financial assets           6,456,132     7,064,017    6,456,132    7,064,017
Total non-current                                                             
assets                    11,966,473     9,409,763   10,587,921   11,044,129
                                                                              
Current assets                                                                
Trade and other                                                               
receivables                3,253,846     1,650,105    3,436,953      197,334
Cash and cash                                                                 
equivalents                7,694,141     1,274,198    7,666,393      749,539
Total current assets      10,947,987     2,924,303   11,103,346      946,873  
                                                                              
Total assets              22,914,460    12,334,066   21,691,267   11,991,002  
                                                                              
Current liabilities                                                           
Trade and other                                                               
payables                 (4,085,963)     (761,570)  (2,983,985)    (383,768)
Current tax                                                                   
liabilities                  (4,293)             -      (4,293)            -
Other provisions           (122,105)     (338,089)     (76,001)    (324,063)  
Total current                                                                 
liabilities              (4,212,361)   (1,099,659)  (3,064,279)    (707,831)
                                                                              
Non-current                                                                   
liabilities
Interest-bearing loans                                                        
and borrowings           (2,981,819)             -  (2,981,819)            -
Other liabilities        (3,452,069)   (2,219,226)  (3,452,069)  (2,219,226)  
Deferred tax                                                                  
liabilities                  (5,710)       (7,924)            -            -
Total non-current                                                             
liabilities              (6,439,598)   (2,227,150)  (6,433,888)  (2,219,226)
                                                                              
Total liabilities       (10,651,959)   (3,326,809)  (9,498,167)  (2,927,057)  
                                                                              
Net assets                12,262,501     9,007,257   12,193,100    9,063,945  
                                                                              
Equity attributable to                                                        
equity holders
Called up share                                                               
capital                   18,724,166    18,658,349   18,724,166   18,658,349
Share premium             11,619,452     2,907,986   11,619,452    2,907,986  
Employee benefit trust                                                        
reserve                            -             -            -            -
Revaluation reserve        (326,220)       264,680    (326,220)      264,680  
Retained deficit        (17,754,897)  (12,823,758) (17,824,298) (12,767,070)  
Total Equity              12,262,501     9,007,257   12,193,100      9,063,945

 

Group statement of changes in equity

For the year ended 30 June 2012

 

                        Share      Share    Merger  Foreign Revaluation    Retained         Total
                      capital    premium   reserve exchange     reserve    earnings
                                                    reserve
                            £          £         £        £           £           £             £
At 1 July 2010     18,652,383  2,647,059 (952,109)    7,377 (1,182,639) (10,661,462)    8,510,609
Loss for the year           -          -         -        -           -  (1,857,389)  (1,857,389)
Fair value gain on
available-for-sale
financial assets            -          -         -        -   1,892,634            -    1,892,634
Total
comprehensive
income/(loss) for
the year                    -          -         -        -   1,892,634  (1,857,389)       35,245
Transfer of
reserves on
impaired
available-for-sale
financial assets            -          -         -  (7,377)   (445,315)      453,127          435
Transfer of
reserves on
discontinued
activities                  -          -   952,109        -           -    (952,109)            -
Issue of new
ordinary shares         5,966    260,927         -        -           -            -      266,893
Share-based
payments                    -          -         -        -           -      194,075      194,075
At 30 June 2011    18,658,349  2,907,986         -        -     264,680 (12,823,758)    9,007,257
Loss for the year           -          -         -        -           -  (4,911,589)  (4,911,589)
Gains arising on
repayment of
employee
share-based loans           -          -         -        -           -       369,012     369,012
Fair value loss on
available-for-sale
financial assets            -          -         -        -   (590,900)             -   (590,900)
Total
comprehensive
income/(loss) for
the year                    -          -         -        -   (590,900)   (4,542,577) (5,133,477)
Issue of new
ordinary shares        65,817  8,711,466         -        -           -             -   8,777,283
Share-based
payments                    -          -         -        -           -     (388,562)   (388,562)
At 30 June 2012    18,724,166 11,619,452         -        -   (326,220)  (17,754,897)  12,262,501

 

Company Statement of changes in equity

For the year ended 30 June 2012  

 

                              Share   Share      Merger    Foreign    Revaluation       Retained      Total
                            capital premium     reserve   exchange        reserve       earnings             
                                                           reserve
                                £             £             £           £             £             £           £
At 1 July 2010         18,652,383     2,647,059     1,454,546       7,377   (1,182,639)  (13,434,731)   8,143,995
Loss for the year               -             -             -           -             -   (1,434,087) (1,434,087)
Fair value gain on
available-for-sale
financial assets                -             -             -           -     1,892,634             -   1,892,634
Total comprehensive
income/(loss)  for
the year                        -             -             -           -     1,892,634   (1,434,087)     458,547
Transfer of reserves
on impaired
available-for-sale
financial assets                -             -             -     (7,377)     (445,315)       453,127         435
Transfer of reserves
on discontinued
activities                      -             -   (1,454,546)           -             -     1,454,546           -
Issue of new ordinary
shares                      5,966       260,927             -           -             -             -     266,893
Share-based payments            -             -             -           -             -       194,075     194,075
At 30 June 2011        18,658,349     2,907,986             -           -       264,680  (12,767,070)   9,063,945
Loss for the year               -             -             -           -             -   (5,037,678) (5,037,678)
Gains arising on
repayment of employee
share-based loans               -             -             -           -             -       369,012     369,012
Fair value loss on
available-for-sale
financial assets                -             -             -           -     (590,900)             -   (590,900)
Total comprehensive
income/(loss)  for
the year                        -             -             -           -     (590,900)   (4,668,666) (5,259,566)
Issue of new ordinary
shares                     65,817     8,711,466             -           -             -             -   8,777,283
Share-based payments            -             -             -           -             -     (388,562)   (388,562)
At 30 June 2012        18,724,166    11,619,452             -           -     (326,220)  (17,824,298)  12,193,100

Group and company statement of cashflows

For the year ended 30 June 2012

 

                                           Group                  Company
                                      2012        2011        2012        2011
                          Note           £           £           £           £
Cashflows from operating
activities
Continuing activities      3   (2,331,370) (1,091,202) (4,913,093) (2,718,159)
Taxation refunded/(paid)             6,304   (121,560)       4,293           -
Net cash (used in)
operating activities           (2,325,066) (1,212,762) (4,908,800) (2,718,159)
Cash flow from investing
activities
Interest received                   11,485       3,422      11,260       3,292
Proceeds from sale of
subsidiary                               -   1,969,449           -   1,969,449
Proceeds from sale of
investments                              -      94,968           -      94,968
Repayment of employee
share based loans                  369,012           -     369,012           -
Dividend received from
subsidiary                               -           -           -   1,206,311
Acquisition of
exploration and
evaluation assets              (3,063,502)           -           -           -
Proceeds from sale of
available-for-sale
financial assets                    16,985           -      16,985           -
Acquisition of intangible
assets                                   -    (34,223)           -           -
Acquisition of property,
plant and equipment              (189,986)   (108,909)   (172,618)    (84,164)
Proceeds from sale of
property, plant and
equipment                            1,250       5,331       1,250       5,331
Net cash generated
by/(used in) investing
activities                     (2,854,756)   1,930,038     225,889   3,195,187
Cash flow from financing
activities
Issue of ordinary shares         8,777,283     266,893   8,777,283     266,893
Interest paid                    (159,337)       (797)   (159,337)           -
Proceeds from loans and
borrowings                       2,981,819           -   2,981,819           -
Finance lease principal
payments                                 -     (1,043)           -     (1,043)
Net cash generated by
financing activities            11,599,765     265,053  11,599,765     265,850
Net increase in cash and
cash equivalents                 6,419,943     982,329   6,916,854     742,878
Cash and cash equivalents
at beginning of year             1,274,198     291,869     749,539       6,661
Cash and cash equivalents at
end of year                      7,694,141   1,274,198   7,666,393     749,539

                                                                                                                                                 

Notes to the financial information for the year ended 30 June 2012

 

1.   Basis of preparation of the financial statements

The financial information set out in  this announcement does not comprise  the 
Group and Company's statutory accounts for the years ended 30 June 2012 or  30 
June 2011.

 

The financial  information  has  been extracted  from  the  audited  statutory 
accounts for the  years ended  30 June  2012 and  30 June  2011. The  auditors 
reported on those accounts; their reports were unqualified and did not contain
a statement under either Section 498 (2)  or Section 498 (3) of the  Companies 
Act 2006 and did not include references  to any matters to which the  auditors 
drew attention by way of emphasis.

 

The statutory accounts for the year ended 30 June 2011 have been delivered  to 
the Registrar of Companies. The statutory accounts for the year ended 30  June 
2012 will be delivered to the  Registrar of Companies following the  Company's 
Annual General Meeting.

 

The accounting policies are consistent  with those applied in the  preparation 
of the interim results for the period ended 31 December 2011 and the statutory
accounts for  the  year  ended 30  June  2011,  which have  been  prepared  in 
accordance with International Financial Reporting Standards ("IFRS").

 

2.   Loss per share

Loss per  share attributable  to  equity holders  of  the Company  arise  from 
continuing and discontinued operations as follows:

                                                                 2012     2011
 Loss per 0.1p ordinary share from continuing operations
 (pence)
 Basic and diluted                                            (0.78p)  (0.59p)
 Profit/(loss) per 0.1p ordinary share from discontinued
 operations (pence)
 Basic                                                              -    0.28p
 Diluted                                                            -    0.26p
 Loss per 0.1p ordinary share from total operations (pence)
 Basic and diluted                                            (0.78p)  (0.31p)

 

The calculations were based on the following information:

                                                             2012         2011
                                                                £            £
 (Loss)/profit attributable to ordinary shareholders
 Continuing operations                                (4,911,589)  (3,589,636)
 Discontinued operations                                        -    1,732,247
 Total                                                (4,911,589)  (1,857,389)
 Weighted average number of shares in issue
 Basic weighted average number of shares              630,738,232  605,525,848
 Dilutive potential ordinary shares
 Share options                                         35,910,993   55,939,513

 

 

Loss per share is calculated by dividing the loss for the year by the weighted
average number  of  ordinary shares  outstanding  during the  year.  Potential 
ordinary shares are anti-dilutive and are therefore excluded from the weighted
average number of  ordinary shares for  the purposes of  continuing and  total 
operations diluted earnings per share.

 

Diluted loss per share

Loss per share requires presentation of diluted loss per share when a  company 
could be  called  upon to  issue  shares that  would  decrease net  profit  or 
increase net loss per share. For a loss making company with outstanding  share 
options, net loss per share would only  be decreased by the exercise of  share 
options.

 

3.   Notes to the statement of cashflows

Reconciliation of operating loss to net cash flow from continuing operations

 

                               Group                        Company
                                      2012        2011        2012        2011
                                         £           £           £           £
Operating loss                 (4,704,561) (3,573,247) (4,826,202) (4,496,395)
Depreciation                        70,406      37,119      49,528      18,930
Amortisation                        18,487      89,672           -           -
Impairment of
loans/investments                        -      96,467           -      96,467
Foreign exchange on
receivables                              -         435           -         435
Gain on disposal of fixed
assets                             (1,250)     (1,318)     (1,250)     (1,318)
Provision for share based
payments                         2,963,030   2,144,186   2,934,443   2,123,722
(Increase)/decrease in
receivables                    (1,531,682)   1,508,140 (3,239,618)       9,652
Increase/(decrease) in
payables                         1,070,184 (1,728,786)     418,068   (791,756)
Increase/(decrease) in other
provisions                       (215,984)     336,130   (248,062)     322,104
Net cash flow from operations  (2,331,370) (1,091,202) (4,913,093) (2,718,159)

 

4.   Prior year adjustment

 

Previously, the Group classified separately an equity reserve called  employee 
benefit trust reserve  which represented  the debit  arising from  share-based 
accounting treatment of  a loan from  The Parkmead Group  plc to the  employee 
benefit trust  established in  2006.  The Group  has reviewed  the  accounting 
treatment of  this  and has  reclassified  this reserve  within  the  retained 
earnings reserve.

 

This has been classified as a prior year adjustment. Therefore 2010, 2011  and 
2012 financial position has been corrected to reflect this change. There is no
effect on the  results of the  Group or net  asset position in  each of  these 
periods.

 

5.   Approval of this preliminary announcement

The preliminary report, including the financial information contained therein,
is the  responsibility  of, and  has  been  approved by,  the  Directors.  The 
Directors are responsible for preparing the report in accordance with the  AIM 
rules issued by the London Stock Exchange.

This announcement was approved by the Board of Directors on 15 November 2012.

 

6.   Posting of annual report and accounts

Copies of  the Annual  Report  and Accounts  will  be posted  to  shareholders 
shortly. The Annual Report  and Accounts will be  made available to  download, 
along with a copy of this  announcement, on the investor relations section  of 
the Company's website www.parkmeadgroup.com

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
END
 
 
FR FFFSMMFESEIF -0- Nov/16/2012 07:00 GMT
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