POWER CAPITAL GLOBAL LTD 
By Power Capital Global Limited (AIM:PCGB), the Asia based natural resources trading and logistics group, announces that it has today has today published its unaudited results for the six months ended 30 June 2012. A copy of the interim results is available for download on the Company's web site:
Highlights from Period
1.2% equity stake taken in Asia Pacific Investment Partners Limited, a leading conglomerate in Mongolia;
corporate presence successfully established in Beijing, China;
loan arrangement entered into with TSI to provide TSI with substantial working, business development, and business expansion capital.
Post Period Highlights
trading of cement clinker commenced in Mongolia with affiliate company, Central Asia Cement, Mongolia's third largest cement producer;
domestic trading of thermal coal in Indonesia begun following the incorporation of new joint venture in the Republic of Indonesia;
loan facilities from Power Capital Forex Management ("PCFX") amounting to US$8 million (£5.1 million) restructured;
reviews of logistics and phosphate opportunities in East Kalimantan and Sichuan Province respectively ongoing.
Simon Dewhurst, Chief Executive Officer of Power Capital Global, said:
"We are pleased with the progress now being made across the region and look forward to continuing to build out our natural resources trading and logistics operations across Asia where we see significant long-term opportunities."
OPERATIONAL UPDATEDear Shareholder,
The first six months of 2012 has seen continued investment into the development of an Asia based natural resources and logistics business. At the time of writing this report, specific project development and trading activities are located in (i) the Republic of Indonesia, under a new joint venture structure incorporated in August 2012 for the purposes of domestic trading of thermal coal, (ii) East Kalimantan where we are reviewing an opportunity to acquire the operation of an established road haulage network and barge loading facility serving thermal coal producers in adjacent concession areas; (iii) Inner Mongolia in the People's Republic of China ("PRC"), where we are currently trading cement clinker to our affiliate company, Central Asia Cement, Mongolia's third largest cement producer; and (iv) Yunnan Province in the PRC, where our discussions in the neighbouring Sichuan Province concerning the future development of its phosphate industry have led to the Company reviewing a business opportunity to acquire a participatory stake in a substantial high grade phosphate deposit.
The Company successfully established its corporate presence in the PRC during the period under review by setting up a representative office in Beijing effective 18 June 2012. As mentioned, the Company has also recently established a joint venture trading company in the Republic of Indonesia, in which PCG Minerals Limited, a wholly owned subsidiary of the Company, owns seventy five percent (75%). We have now commenced domestic trading of thermal coal from Kalimantan to Jakarta's main port in Java and look forward to providing further updates as this initiative progresses.
Following the completion of its due diligence of TSI Holdings Limited ("TSI"), the Company determined, for the immediate term, to substantially revise its original investment term sheet and entered into a loan arrangement with TSI to provide TSI with substantial working, business development, and business expansion capital. Both companies continue to review, define and jointly develop new business development opportunities, and both companies continue to share the view that substantial cross-marketing opportunities exist. We expect to make further announcements in relation to this initiative in the current period.
The basic terms of the TSI investment loan are summarized as follows. The loan amount is US$1 million (£637,0000) and is today fully drawn. The loan term is for two years and carries interest at five percent (5%) per annum.
The Company announced on 16 May 2012 that it had subscribed, effective 10th May 2012, for a 1.2% equity stake in Asia Pacific Investment Partners Limited ("APIP"), a leading conglomerate in Mongolia. The total investment was US$2 million (£1.27 million) and was part of a US$15 million private placing by APIP. Mongolia was the fastest growing economy in the World in 2011. It held a general election in May of this year and, following a change in Government, has maintained its focus on rapid growth in its economy and in its burgeoning natural resources sector. The Company is optimistic about the future prospects of both APIP and the Mongolian market, and will continue to fast track its understanding of, and exposure to, trading opportunities in Mongolia, which it believes can be derived from this investment.
The Company announced on 25 July 2012 that it had entered into a restructuring of the loan facilities provided to it by Power Capital Forex Management ("PCFX") amounting to US$8 million (£5.1 million), (the "PCFX facilities") at the time. PCFX is controlled by Kung Min Lin, the chairman of the Company and its largest single shareholder.
As previously announced, the restructuring:
establishes a framework for the addition of new investors in PCGB and an increase in the free float of its shares of up to eighteen per cent (18%); and
paves the way for a substantial reduction in the Group's balance sheet gearing.
US$5 million (£3.2 million) of the amount currently drawn under the PCFX facilities has been re-constituted as 12 month Unsecured Convertible Loan Notes ("CLN's") with the intention that the CLNs will be transferred by PCFX to third party investors. PCFX has confirmed to the Company that it has identified a small group of investors not connected to Kung Min Lin who have indicated that they will acquire the CLNs in the near future and we understand that this transaction is in progress.
The balance of the PCFX facilities not re-constituted as CLNs, amounting to approximately US$3 million (£1.9 million), is represented by a new loan facility granted in favour of the Company but otherwise substantially on the same terms ("the New Loan Agreement") as the PCFX facilities. The Company has currently drawn approximately US$1.25 million (£796,000) against the New Loan Agreement with the remainder of this facility available to be drawn by the Company to meet its obligations as they fall due.
The Board looks forward to continuing to build out its natural resources trading and logistics operations in Asia.
Simon Dewhurst
Chief Executive Officer
28 September 2012
For The Six Months Ended 30 June 2012
(expressed in thousands £ sterling)
Six months to 30/06/2012 | Six months to 30/06/2011 | Year ended 31/12/2011 | |||
Unaudited | Unaudited | Audited | |||
£000 | £000 | £000 | |||
Revenue | - | - | 1,566 | ||
Cost of sales | - | - | (2,281) | ||
Gross profit/(loss) | - | - | (715) | ||
Administrative expenses | (666) | (774) | (1,135) | ||
Stock written off | - | (611) | - | ||
Operating loss | (666) | (1,385) | (1,850) | ||
Other income | 1 | - | - | ||
Finance costs | (28) | (123) | (218) | ||
Loss before taxation | (693) | (1,508) | (2,068) | ||
Income tax expense | - | - | - | ||
Loss for the period/year after taxation | (693) | (1,508) | (2,068) | ||
Other comprehensive income | - | - | - | ||
Total comprehensive expenses | (693) | (1,508) | (2,068) | ||
Loss per share (basic) | (£0.012) | (£0.026) | (£0.036) | ||
Loss per share (diluted) | N/A | N/A | N/A |
As At 30 June 2012
(expressed in thousands £ sterling)
30/6/2012 | 30/06/2011 | 31/12/2011 | |||
Unaudited | Unaudited | Audited | |||
£000 | £000 | £000 | |||
Non-current assets | |||||
Property, plant and equipment | 64 | 75 | 69 | ||
Loans receivable | 395 | - | - | ||
Investments in securities | 1,273 | - | - | ||
1,732 | 75 | 69 | |||
Current assets | |||||
Inventories | 170 | 1,594 | - | ||
Trade and other receivables | 212 | 72 | 51 | ||
Cash and cash equivalents | 296 | 699 | 101 | ||
678 | 2,365 | 152 | |||
Current liabilities | |||||
Other payables and accruals | 229 | 775 | 206 | ||
Deposits from customers | 528 | - | - | ||
Amount due to a related company | 3,119 | 1,878 | 788 | ||
3,876 | 2,653 | 994 | |||
Net current liabilities | (3,198) | (288) | (842) | ||
Net liabilities | (1,466) | (213) | (773) | ||
Equity | |||||
Paid-in Capital | 2,982 | 2,982 | 2,982 | ||
Reserves | (4,448) | (3,195) | (3,755) | ||
Capital deficiencies | (1,466) | (213) | (773) | ||
For The Six Months Ended 30 June 2012
(expressed in thousands £ sterling)
Paid-in |
Accumulated | Total | |
£000 | £000 | £000 | |
At 1 January 2011 | 2,982 | (1,687 | 1,29 |
Total comprehensive expenses for the six months to 30 June 2011 | - | (1,508) | (1,508) |
At 30 June 2011 and 1 July 2011 | 2,982 | (3,195) | (213) |
Total comprehensive expenses for the six months to 31 December 2011 | - | (560) | (560) |
At 31 December 2011 and 1 January 2012 | 2,982 | (3,755) | (773) |
Total comprehensive expenses for the six months to 30 June 2012 | - | (693) | (693) |
At 30 June 2012 | 2,982 | (4,448) | (1,466) |
For The Six Months Ended 30 June 2012
(expressed in thousands £ sterling)
Six months to 30/06/2012 | Six months to 30/06/2011 | Year ended 31/12/2011 | |||
Unaudited | Unaudited | Audited | |||
£000 | £000 | £000 | |||
Cash flows from operating activities | |||||
Loss before taxation | (693) | (1,508) | (2,068) | ||
Adjustments for: | |||||
Depreciation of property, plant and equipment | 10 | 6 | 15 | ||
Interest received | (1) | - | - | ||
Finance costs | 28 | 123 | 218 | ||
Operating cash flows before movements in working capital | (656) | (1,379) | (1,835) | ||
Increase in inventories | (170) | (1,594) | - | ||
Increase in trade and other receivables | (161) | (71) | (50) | ||
Increase in deposit from customer | 528 | - | - | ||
(Decrease)/Increase in other payables and accruals | (5) | 736 | 155 | ||
Net cash used in operating activities | (464) | (2,308) | (1,730) | ||
Cash flows from investing activities | |||||
Additions of property, plant and equipment | (5) | (81) | (84) | ||
Increase in loans receivable | (395) | - | - | ||
Increase in investments in securities | (1,273) | - | - | ||
Interest received | 1 | - | - | ||
Net cash used in investing activities | (1,672) | (81) | (84) | ||
Cash flows from financing activities | |||||
Additions of loans from a related company | 2,331 | 637 | 831 | ||
Repayments of loans from a related company | - | - | (51) | ||
Short term loans from third parties | - | 1,878 | 1,878 | ||
Repayment of short term loans from third parties | - | (637) | (1,878) | ||
Interest paid | - | (123) | (198) | ||
Net cash generated from financing activities | 2,331 | 1,755 | 582 | ||
Increase/(Decrease) in cash and cash equivalents | 195 | (634) | (1,232) | ||
Cash and cash equivalents at beginning of the financial period | 101 | 1,333 | 1,333 | ||
Cash and cash equivalents at end of the financial period | 296 | 699 | 101 | ||
Cash and cash equivalents consist of: | |||||
Cash at bank and in hand | 296 | 699 | 101 |
- The interim financial information has been prepared under the historical cost convention. The principal accounting policies adopted in the preparation of this interim financial information are consistent with those followed in the Group's annual financial statements for the year ended 31 December 2011.
- The Group has not early adopted certain new standards, amendments to standards and interpretations that have been issued at the time of preparing the interim financial information but are not yet effective. The directors of the Company (the "Directors") anticipate that all of the pronouncements will be adopted in the Group's accounting policy for the period beginning after the effective date of the pronouncements. The Directors are also currently assessing the impact of these new standards, amendments to standards and interpretation but are not yet in a position to state whether they would have material impact on the results and the financial position of the Group.
-
The interim financial information for the period ended
30 June 2012 does not constitute the Group's statutory
accounts for that period. The statutory accounts for
the year ended 31 December 2011 have been delivered to
the Registrar of Companies. The auditors reported on
those accounts; their report was unqualified, did not
contain a statement under either Section 498 (2) or
Section 489 (3) of the Companies Act 2006 and did not
include references to any matters to which the auditor
drew attention by way of emphasis.
The interim financial information for the six months ended 30 June 2012 and 30 June 2011 is unaudited. - Loss per share has been calculated on the basis of the net loss after taxation of £693,000 (Six months ended 30 June 2011: loss £1,508,000, Year ended 31 December 2011: loss £2,068,000) and the weighted average number of shares in issue during the six months ended 30 June 2012 of 57,056,501 (Six months ended 30 June 2011: 57,056,501, Year ended 31 December 2011: 57,056,501). Diluted loss per share has not been presented as no dilutive instruments have been issued during each reporting period presented in financial information.
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