31 January 2018
Karoo Energy Plc
(“Karoo Energy”, the “Group” or the “Company")
Interim Results For The Six Months Ended 31 October 2017
CHIEF EXECUTIVE OFFICER STATEMENT
I am pleased to report that the Company has made continued progress over recent months particularly with our exploration program. We announced recently that exploration work in the Gemsbok Basin covered by the Company's Prospecting Licences EL001/2012 and PL171/2015 has produced results which confirm the geological model for the Company's exploration programme. This model, based on multiple research projects, including deep boreholes and seismic surveys, undertaken by the Department of Geological Survey of Botswana and other published academic works, predicts a deep sedimentary basin, the Gemsbok Basin, infilled by Karoo Supergroup sedimentary rocks underlain by Nama Group sedimentary rocks. Both groups of rock, Karoo and Nama, are known to contain organic shales which form the target for this exploration project. This announcement underlines our commitment to and belief in the potential for shale gas within our portfolio of licences and we are continuing our exploration work and look forward to announcing our progress in due course.
FINANCIALS
The financial results for the six months to 31 October 2017 show a loss after taxation of £422,196 (2016: £126,162). Included within the 2017 loss are costs totalling £272,005 with respect to AIM listing costs.
The financial results detailed are unaudited, and have not been reviewed by the auditors of the Company.
Noel Lyons
CEO
31 January 2017
The Directors of the Company accept responsibility for the content of this announcement.
ENQUIRIES:
Company
Karoo Energy plc
Noel Lyons
Telephone: 020 3130 0674
Corporate Adviser
Peterhouse Corporate Finance Limited
Guy Miller / Mark Anwyl
Telephone: 020 7220 9795
Consolidated Income Statement for the 6 months ended 31 October
| 2017 | 2016 | |||
| Notes | Unaudited | Unaudited | ||
| £ | £ | |||
| Revenue | - | - | ||
| Cost of sales | - | - | ||
| Gross profit | - | - | ||
| Administrative expenses | (425,348) | (125,749) | ||
| Operating profit | (425,348) | (125,749) | ||
| Finance income | - | - | ||
| Finance costs | - | (1,630) | ||
| Profit before taxation | (425,348) | (127,379) | ||
| Taxation | - | - | ||
| Minority interests | 3,152 | 1,217 | ||
| Loss for the financial year attributable to the Company’s equity shareholders | (422,196) | (126,162) | ||
| Loss per share from operations | ||||
| Basic and diluted loss per share (£) | 2 | 0.0021 | 0.0007 |
Consolidated Statement of Comprehensive Income for the 6 months ended 31 October
| 2017 | 2016 | |||
| Unaudited | Unaudited | |||
| £ | £ | |||
| Loss for the financial year | (422,196) | (126,162) | ||
| Total comprehensive income for the financial year attributable to the Company’s equity shareholders | (422,196) | (126,162) |
Consolidated Balance Sheet as at 31 October and 30 April
| 31 October | 31 October | 30 April | ||||
| 2017 | 2016 | 2017 | ||||
| Notes | Unaudited | Unaudited | Audited | |||
| Assets | £ | £ | £ | |||
| Non-current assets | ||||||
| Intangible assets | 3 | 337,047 | 477,051 | 322,154 | ||
| Current assets | ||||||
| Trade and other receivables | 4 | 37,574 | 26,244 | 95,260 | ||
| Investments | - | - | - | |||
| Cash and cash equivalents | 186,626 | 168,261 | - | |||
| 224,200 | 194,505 | 95,260 | ||||
| Total Assets | 561,247 | 671,556 | 417,414 | |||
| Equity and liabilities | ||||||
| Capital and reserves | ||||||
| Share capital | 5 | 512,175 | 468,306 | 469,590 | ||
| Share premium | 2,231,786 | 1,758,802 | 1,771,584 | |||
| Retained earnings | (2,500,844) | (1,822,896) | (2,078,648) | |||
| Shareholders’ funds | 243,117 | 404,212 | 162,526 | |||
| Minority Interests | (11,058) | 4,086 | (7,906) | |||
| 232,059 | 408,298 | 154,620 | ||||
| Current liabilities: | 6 | |||||
| Trade and other payables | 329,188 | 263,258 | 262,794 | |||
| Total equity and liabilities | 561,247 | 671,556 | 417,414 |
Consolidated Statement of Changes in Equity as at 31 October and 30 April
| Share | Share | Retained | Minority | ||
| capital | premium | earnings | interests | Total | |
| £ | £ | £ | £ | £ | |
| For the 6 months ended 31 October 2016 | |||||
| Balance at 1 May 2016 | 450,449 | 1,576,659 | (1,696,734) | 5,303 | 335,677 |
| Loss for the period | - | - | (126,162) | (1,217) | (127,379) |
| Total comprehensive income | - | - | (126,162) | (1,217) | (127,379) |
| Issue of shares | 17,857 | 196,529 | - | - | 214,386 |
| Cost of share issue | - | (14,386) | - | - | (14,386) |
| Balance at 31 October 2016 | 468,306 | 1,758,802 | (1,822,896) | 4,086 | 408,298 |
| Loss for the period | - | - | (255,752) | (11,992) | (267,744) |
| Total comprehensive income | - | - | (255,752) | (11,992) | (267,744) |
| Issue of shares | 1,284 | 14,024 | - | - | 15,308 |
| Cost of share issue | - | (1,242) | - | - | (1,242) |
| Balance at 30 April 2017 | 469,590 | 1,771,584 | (2,078,648) | (7,906) | 154,620 |
| Loss for the period | - | - | (422,196) | (3,152) | (425,348) |
| Total comprehensive income | - | - | (422,196) | (3,152) | (425,348) |
| Issue of shares | 42,585 | 464,713 | - | - | 507,298 |
| Cost of share issue | - | (4,511) | - | - | (4,511) |
| Balance at 31 October 2017 | 512,175 | 2,231,786 | (2,500,844) | (11,058) | 232,059 |
Consolidated Statement of Cash Flows for the 6 months ended 31 October
| 2017 | 2016 | |||
| Notes | Unaudited | Unaudited | ||
| £ | £ | |||
| Cash flow from operating activities | ||||
| Loss for the period before tax | (425,348) | (127,379) | ||
| Finance costs | - | 1,630 | ||
| (425,348) | (125,749) | |||
| Changes in working capital | ||||
| Decrease / (increase) in trade and other receivables | 4 | 57,686 | (7,233) | |
| Increase / (decrease) in trade and other payables | 6 | 66,394 | (134,368) | |
| Cash outflow from operating activities | (301,268) | (267,350) | ||
| Cash flow from investing activities | ||||
| Purchase of intangible exploration assets | 3 | (14,893) | (58,935) | |
| Net cash used in investing activities | (14,893) | (58,935) | ||
| Cash flow from financing activities | ||||
| Issue of shares | 5 | 507,298 | 214,386 | |
| Cost of shares issued | 5 | (4,511) | (14,386) | |
| Net cash from financing activities | 502,787 | 200,000 | ||
| Net decrease in cash and cash equivalents | 186,626 | (126,285) | ||
| Cash and cash equivalents at beginning of period | - | 294,546 | ||
| Cash and cash equivalents at end of period | 186,626 | 168,261 |
Notes to the interim results
1. Basis of preparation
The interim financial statements for Karoo Energy plc have been prepared on the basis of the accounting policies set out in the audited financial information for the year ended 30 April 2017, which complied with International Financial Reporting Standards as adopted for use in the European Union (“IFRS”). The financial information for the periods ended 31 October 2017 and 31 October 2016 is unaudited.
IFRS is subject to amendment and interpretation by the International Accounting Standards Board (“IASB”) and the IFRS Interpretations Committee and there is an on-going process of review and endorsement by the European Commission.
The financial information has been prepared in accordance with the recognition and measurement requirements of IFRS that the Directors expect to be applicable as at 30 April 2018.
The preparation of condensed consolidated interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from those estimates.
In preparing these interim financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 30 April 2017.
2. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to Ordinary Shareholders by the weighted average number of Ordinary Shares outstanding during the period.
The Group does not have any potentially dilutive shares in any of the periods presented, therefore the basic and diluted earnings per share are the same.
Basic earnings per share
| 2017 | 2016 | ||
| Unaudited | Unaudited | ||
| £ | £ | ||
| Total basic loss per share | 0.0021 | 0.0007 |
The losses and weighted average number of Ordinary Shares used in the calculation of basic earnings per share are as follows:
| 2017 | 2016 | ||
| Unaudited | Unaudited | ||
| £ | £ | ||
| Loss used in the calculation of total basic and diluted earnings per share | (422,196) | (126,162) | |
| 2017 | 2016 | ||
| Number of shares | Unaudited | Unaudited | |
| Weighted average number of Ordinary Shares for the purposes of basic earnings per share | 200,818,638 | 146,272,243 |
3. Intangible assets
| Exploration and Evaluation assets | |
| £ | |
| Cost & net book value | |
| At 30 April 2016 (audited) | 362,252 |
| Additions | 114,799 |
| At 31 October 2016 (unaudited) | 477,051 |
| Additions | (18,756) |
| Impairments | (136,141) |
| At 30 April 2017 (audited) | 322,154 |
| Additions | 14,893 |
| At 31 October 2017 (unaudited) | 337,047 |
4. Trade and other receivables
| 31 October | 31 October | 30 April | |||
| 2017 | 2016 | 2017 | |||
| Unaudited | Unaudited | Audited | |||
| £ | £ | £ | |||
| Amounts due from director | 12,855 | - | 80,821 | ||
| Other receivables | 16,277 | 13,446 | 10,850 | ||
| Prepayments and accrued income | 8,442 | 12,798 | 3,589 | ||
| 37,574 | 26,244 | 95,260 |
5. Share capital
| 31 October | 31 October | 30 April | |
| 2017 | 2016 | 2017 | |
| Unaudited | Unaudited | Audited | |
| Allotted, issued, and fully paid Ordinary shares of 0.0025 each | £ | £ | £ |
| Opening balance | 469,590 | 450,449 | 450,449 |
| Allotments: | |||
| 31 May 2016 - shares issued at 2.5p each resulting in premium of £182,143 | - | 17,857 | 17,856 |
| 10 November 2016 - shares issued at 2.5p each resulting in premium of £10,411 | - | - | 947 |
| 20 February 2017 - shares issued at 2.5p each resulting in premium of £3,713 | - | - | 338 |
| 18 May 2017 - shares issued at 3.0p each resulting in premium of £14,676 | 1,335 | - | - |
| 18 May 2017 - shares issued at 3.0p each resulting in premium of £426,250 | 38,750 | - | - |
| 6 July 2017 - shares issued at 3.0p each resulting in premium of £27,500 | 2,500 | - | - |
| Closing balance | 512,175 | 468,306 | 469,590 |
| 31 October | 31 October | 30 April | |
| 2017 | 2016 | 2017 | |
| Unaudited | Unaudited | Audited | |
| Allotted, issued, and fully paid Ordinary shares of 0.0025 each | No | No | No |
| Opening balance | 187,836,308 | 180,179,829 | 180,179,829 |
| Allotments: | |||
| 31 May 2016 - shares issued at 2.5p each resulting in premium of £182,143 | - | 7,142,857 | 7,142,857 |
| 10 November 2016 - shares issued at 2.5p each resulting in premium of £10,411 | - | - | 378,622 |
| 20 February 2017 - shares issued at 2.5p each resulting in premium of £3,713 | - | - | 135,000 |
| 18 May 2017 - shares issued at 3.0p each resulting in premium of £14,676 | 533,667 | - | - |
| 18 May 2017 - shares issued at 3.0p each resulting in premium of £426,250 | 15,500,000 | - | - |
| 6 July 2017 - shares issued at 3.0p each resulting in premium of £27,500 | 1,000,000 | - | - |
| Closing balance | 204,869,975 | 187,322,686 | 187,836,308 |
6. Trade and other payables
| 31 October | 31 October | 30 April | |||
| 2017 | 2016 | 2017 | |||
| Unaudited | Unaudited | Audited | |||
| £ | £ | £ | |||
| Trade payables | 224,924 | 28,710 | 13,431 | ||
| Other payables | - | 23,318 | 158,555 | ||
| Accruals | 27,744 | 136,342 | 10,547 | ||
| Loan from related party | 76,520 | 74,890 | 80,260 | ||
| 329,188 | 263,260 | 262,793 |
