TIDMAAI

RNS Number : 4778I

Atlas African Industries Limited

31 August 2016

Atlas African Industries Limited / Ticker: AAI / Index: AIM / Sector: Support Services

31 August 2016

Atlas African Industries Limited

('Atlas' or the 'Company')

Interim Results

Atlas (AIM, NSE: AAI), provides interim results for the six month period ended 30 June 2016.

CHAIRMAN'S STATEMENT

This has been a frustrating period for the Company and its shareholders.

During the period, we initially made great strides forward to deliver on our strategy to take advantage of opportunities in the consumer industrial sector: we changed the name of the Company to Atlas African Industries Limited, shifted our operational focus and raised US$5 million from new and existing shareholders to strengthen the balance sheet; through our Ethiopian subsidiary TEAP Glass PLC ('TEAP') we secured a 100 year land lease for our planned new state-of-the-art glass bottle manufacturing facility (the first 45 years of lease payments have been paid in advance) on a 5.5 acre site located in Chancho, in close proximity to established infrastructure and just 30 kilometres from intended mine sites for the majority of materials needed to produce high quality bottles; we appointed MH Engineering Plc, a leading Ethiopian firm, to conduct a full feasibility study, including architectural, engineering, structural, sanitary, electrical and mechanical design and quantity surveying services; we commenced ground clearing and geotechnical drilling on-site ahead of constructing ancillary buildings, and placed deposits on long lead items. The tangible potential of our Ethiopian project (the 'Chancho Project') was further underpinned by the signing of a memorandum of understanding with leading Ethiopian brewer Raya Brewery Share Company ('Raya'), with a view - subject to confirmation of quality - to entering into an offtake agreement to regularly supply international standard, high quality glass bottles to Raya in substitution of the imported bottles it currently uses.

Preliminary economic studies had highlighted the strong potential of the Chancho Project based on a yearly production capacity of 105 million 330ml bottles, with full production targeted for early 2019. The Ethiopian Government has designated manufacturing as a top industrial priority with an emphasis on replacement of imports; the high-quality glass bottle market is currently dominated by expensive imports, so we identified our project as having huge benefit to all stakeholders, both the investors and Ethiopia. Success of the Chancho Project has the potential to generate significant revenue in tax to the Ethiopian Government as well as generate employment of 195 people in the area. Furthermore, we perceived significant ancillary benefits would be seen within associated businesses and supply chains.

Despite these considerable efforts and the factors which suggested that the Chancho Project would generate positive impacts for the Company, its shareholders, the local community around Chancho and the Ethiopian Government through tax revenues, our progress has been undermined and derailed by the actions of the Ethiopian Revenue and Customs Authority ('ERCA'). As shareholders will be aware from our announcement of 11 May 2016 we have been subjected to a complete injustice, through the summary removal of approximately US$2.4 million from TEAP's bank account with the Development Bank of Ethiopia by ERCA. ERCA's actions stem from a tax claim made against Ardan Risk & Support Services ('Ardan') which categorically relate to periods prior to Atlas' involvement with Ardan. Atlas has received legal advice that neither it nor TEAP has any liability for any such taxes under Ethiopian law.

The Board continues in its fight to retrieve the expropriated funds and is pursing all legal, diplomatic and political channels in order to seek redress, including direct appeals to the Government of Ethiopia and the Ethiopian Investment Commission and through the UK Foreign Office and the British Business Secretary; our major shareholders have been actively lobbying the Canadian and US Governments.

The Company believes that the unilateral removal of these funds was unlawful. I want to again reiterate and assure shareholders that the Board is examining all available options as it seeks to have the Company's funds returned. Concurrently, the Board has been actively considering alternative options available to maximise shareholder value and on 1 August 2016 announced that the Company has acquired an interest in BonanzaWin, a Nigerian based gaming company offering a range of online and real-play gaming experiences including sports betting, casino slot games, and lotto.

This investment is in line with the Company's active development strategy to identify and support prospective growth opportunities across Africa. Atlas' total investment into Equatorial Partners Limited ('EPL', which holds a 60% stake in Saerimner Ltd ('Saerimner') a Nigerian registered company operating under the trading name "BonanzaWin") at this stage is US$0.3 million, in consideration for which it has acquired a 10% equity stake in EPL. BonanzaWin has established a portfolio of gaming businesses currently focussed on the Nigerian market; the company has a secure online gaming platform, which powers a wide range of games including sports betting, live casino and slot games, has three gaming shops where customers can play and place bets, and is a regulated provider of the Nigerian lottery, for which BonanzaWin sells tickets through a number of local sales agents. BonanzaWin is licenced and regulated by the Lagos State Lottery Board and Atlas believes the company represents a compelling investment opportunity to access Nigeria's growing gaming and entertainment sectors. For the 12-month period ended 31 December 2015 EPL and Saerimner reported a loss of US$0.3 million.

Financial Review

For the period under review the Company is reporting turnover of US$63k and comprehensive losses of US$2.1million. At 30 June 2016 the Company had cash and cash equivalents of US$1.7 million.

Outlook

While all the building blocks are in place to develop a valuable project for both shareholders and the people of Ethiopia, the actions taken by ERCA have caused the Company to suspend activities in connection with the Chancho Project. The Chancho Project has intrinsic value and we have received approaches from international brewing companies who see investment into it as a potential entry point into Ethiopia. Despite the disappointments relating to recent events in Ethiopia, the recent investment in BonanzaWin provides us with exposure to Nigeria's large consumer market, specifically the fast-growing gaming and entertainment market. With rising incomes and increasing consumer demand, the African continent continues to develop and unlock new market opportunities and we look forward to keeping shareholders updated with developments across our portfolio.

Finally, I would like to thank the executive team, who have been upstanding in their commitment to the Company in the face of severe hardships, and also our shareholders whose support is invaluable as we focus on remedying the current difficult situation.

Ian H. Mann

Non-Executive Chairman

30 August 2016

For further information please visit www.atlassupport.com or contact:

 
 Carl Esprey        Atlas                Tel: +44 (0) 
                                          20 7408 9200 
 Callum Stewart     Stifel Nicolaus      Tel: +44 (0) 
                     Europe Limited       20 7710 7600 
 Ashton Clanfield   Stifel Nicolaus      Tel: +44 (0) 
                     Europe Limited       20 7710 7600 
 Edward Burbidge    Burbidge Capital     Tel: +254 (0) 
                                          202 100 102 
 Susie Geliher      St Brides Partners   Tel: +44 (0) 
                     Ltd                  20 7236 1177 
 

FINANCIAL STATEMENTS

Consolidated Interim Income Statement

 
                                                              2014           2015 
                                               2016 
                                           6 months       6 months      18 months 
                                              ended          ended          ended 
                                            30 June    31 December    31 December 
                                               2016           2014           2015 
                                          UNAUDITED      UNAUDITED        AUDITED 
                                  Notes      $ '000         $ '000         $ '000 
 
 CONTINUING OPERATIONS 
 Revenue                                         63          3,148          3,147 
 Cost of sales                                 (34)        (2,116)        (1,924) 
 Gross Profit                                    29          1,032          1,223 
 
 Operating expenses                         (2,036)        (4,075)       (13,291) 
 Share option charge                           (67)        (2,376)        (2,720) 
 Share of results of 
  associate                                       -            182             88 
 Operating loss                      15     (2,074)        (5,237)       (14,700) 
 
 Investment revenues                              -                             - 
 Finance cost                                     -          (532)              - 
 Loss before taxation                       (2,074)        (5,769)       (14,700) 
 
 Taxation                                       (1)           (69)           (85) 
 Loss for the year from Continuing 
  Operations 4                              (2,075)        (5,838)       (14,785) 
 
 
 DISCONTINUED OPERATIONS 
 Loss for the year from Discontinued 
  Operations                                      -              -       (19,400) 
 Loss for the year                          (2,075)        (5,838)       (34,185) 
-------------------------------  ------  ----------  -------------  ------------- 
 
 Loss for the year attributable 
  to owners of the company                  (2,065)        (5,838)       (34,182) 
---------------------------------------  ----------  -------------  ------------- 
 Loss for the year attributable 
  to noncontrolling interests                  (10)              -            (3) 
 
 
 Earnings per Share                        US cents       US cents       US cents 
 From continuing operations 
   Basic                              5      (0.17)         (1.50)         (3.58) 
   Diluted                                   (0.17)         (1.50)         (3.58) 
 
 From continuing and discontinued 
  operations 
   Basic                              5      (0.17)         (1.50)         (8.21) 
   Diluted                                   (0.17)         (1.50)         (8.21) 
 
 

Consolidated Interim Statement of Comprehensive income

 
                                           2016           2014           2015 
                                       6 months       6 months      18 months 
                                          ended          ended          ended 
                                        30 June    31 December    31 December 
                                           2016           2014           2015 
                                      UNAUDITED      UNAUDITED        AUDITED 
                                         $ '000         $ '000         $ '000 
 
 Loss for the 
  period                                (2,065)        (5,838)       (34,182) 
 
 Exchange differences on 
  translation of foreign 
  operations                                (3)           (34)             27 
 Total comprehensive loss 
  for the year 
  attributable to owners 
  of the company                        (2,068)        (5,872)       (34,155) 
-----------------------------------  ----------  -------------  ------------- 
 Total comprehensive loss 
  for the year 
  attributable to non-controlling 
  interests                                (10)              -            (3) 
 

Consolidated Interim Statement of Financial Position

 
                                               2015          2014          2015 
                                            30 June   31 December   31 December 
                                  Notes        2016          2014          2015 
                                          UNAUDITED     UNAUDITED       AUDITED 
                                 ------ 
 ASSETS                                      $ '000        $ '000        $ '000 
 Non-current assets 
   Goodwill                                     790             -           790 
   Property, plant & 
    equipment                        6        2,007         5,373         2,045 
   Intangible Assets                            297                           - 
   Investments in associate                       -         5,257             - 
   Loans and other receivables                    -         8,063             - 
 Total non-current 
  assets                                      3,094        18,693         2,835 
 
 Current assets 
   Inventories                                    -           126             - 
   Trade and other receivables       8        2,471         3,361           194 
   Cash and cash equivalents         9        1,709        12,872         1,450 
   Total current assets                       4,180        16,359         1,644 
 
 TOTAL ASSETS                                 7,274        35,052         4,479 
 
 LIABILITIES 
 Non-current liabilities 
   Borrowings                                     -             -             - 
 Total non-current 
  liabilities                                     -             -             - 
 
 Current liabilities 
   Trade and other payables         10        (714)       (3,505)         (777) 
   Current tax liabilities                    (101)          (68)         (126) 
   Borrowings                                     -          (60)             - 
 Total current liabilities                    (815)       (3,633)         (903) 
 
 TOTAL LIABILITIES                            (815)       (3,633)         (903) 
 
 NET ASSETS                                   6,459        31,419         3,576 
-------------------------------  ------  ----------  ------------  ------------ 
 
 EQUITY 
   Issued capital                   11       41,510        36,502        36,616 
   Foreign exchange reserve                      24          (41)            27 
   Share Option Reserve                       2,787             -         2,720 
   Retained earnings                       (37,827)       (5,042)      (35,762) 
 TOTAL EQUITY ATTRIBUTABLE 
  TO THE EQUITY HOLDERS OF 
  THE PARENT                                  6,494        31,419         3,600 
---------------------------------------  ----------  ------------  ------------ 
 Non-controlling interests                     (35)             -          (25) 
 TOTAL EQUITY                                 6,459        31,419         3,576 
-------------------------------  ------  ----------  ------------  ------------ 
 
 

Consolidated Interim Statement of Changes in Equity

 
 
                             Share    Retained      Share     Foreign   Non-controlling           Total 
                           capital    earnings     Option    Exchange         Interests    attributable 
                                                  Reserve     Reserve                         to equity 
                                                                                                holders 
                                                                                                 of the 
                                                                                                 parent 
                         ---------  ----------  ---------  ----------  ----------------  -------------- 
                            $ '000      $ '000     $ '000      $ '000                            $ '000 
 
 Balance 
  at 30 June 
  2014                      20,508     (1,580)          -         (7)                            18,921 
 
 Loss for 
  the period                     -     (5,838)                      -                 -         (5,838) 
 Other comprehensive 
  income                                     -          -        (34)                 -            (34) 
 Total comprehensive 
  income for 
  the period                     -     (5,838)          -        (34)                 -         (5,872) 
 
 Transactions 
  with owners 
 Share issues 
  - cash received           16,836                                                               16,836 
 Share issue 
  costs                      (842)                      -           -                 -           (842) 
 Charge in 
  relation 
  to share-based 
  payments                       -                  2,376           -                 -           2,376 
 Total transactions 
  with owners               15,994           -      2,376           -                 -          18,370 
 
 Balance 
  at 31 December 
  2014                      36,502     (7,418)      2,376        (41)                 -          31,419 
-----------------------  ---------  ----------  ---------  ----------  ----------------  -------------- 
 
 Loss for 
  the period                     -    (28,344)                                        -        (28,344) 
 Other comprehensive 
  income                                     -          -          68               (3)              65 
 Total comprehensive 
  income for 
  the period                     -    (28,344)          -          68               (3)        (28,279) 
 
 Transactions 
  with owners 
 Share issues 
  - cash received              114           -          -           -                 -             114 
 Charge in 
  relation 
  to share-based 
  payments                       -           -        344           -                               344 
 Non-controlling 
  Interests                      -           -          -           -              (22)            (22) 
 Total transactions 
  with owners                  114           -        344           -              (22)             436 
 
 Balance 
  at 31 December 
  2015                      36,616    (35,762)      2,720          27              (25)           3,576 
-----------------------  ---------  ----------  ---------  ----------  ----------------  -------------- 
 
   Loss for 
    the period                   -     (2,065)                                        -         (2,065) 
   Other comprehensive 
    income                                   -          -         (3)                               (3) 
 Total comprehensive 
  income for 
  the period                     -     (2,065)          -         (3)                 -         (2,068) 
 
 Transactions 
  with owners 
   Share issues 
    - cash received          5,077                                                                5,077 
   Share issue 
    costs                    (183)                      -           -                             (183) 
   Charge in 
    relation 
    to share-based 
    payments                     -                  67.00           -                                67 
   Non-controlling 
    Interests                                                                      (10)            (10) 
   Total transactions 
    with owners              4,894           -         67           -              (10)           4,951 
 
 Balance 
  at 30 June 
  2016                      41,510    (37,827)      2,787          24              (35)           6,459 
-----------------------  ---------  ----------  ---------  ----------  ----------------  -------------- 
 

Consolidated Interim Cash Flow Statement

 
                                          2016           2014           2015 
                                      6 months       6 months      18 months 
                                         ended          ended          ended 
                                       30 June    31 December    31 December 
                                          2016           2014           2015 
                                     UNAUDITED      UNAUDITED        AUDITED 
                                        $ '000         $ '000         $ '000 
 
 CASH FLOWS FROM OPERATING 
  ACTIVITIES 
 Loss before tax                       (2,074)        (5,769)       (14,700) 
 
 Working Capital Adjustments: 
   - Depreciation of property, 
    plant and equipment                    226            152            463 
   - Share of Associates profit              -          (182)           (88) 
   - Share option charge                    67          2,376          2,720 
   - Net interest cost / (income)            -            532              - 
 Operating cash flow before 
  movements in working capital         (1,781)        (2,891)       (11,605) 
 
 Working capital adjustments: 
   - Decrease/(Increase) in                  -            126              - 
    inventories 
   - Decrease/(Increase) in 
    receivables                        (2,277)          (992)          2,175 
   - Increase / (decrease) 
    in payables                           (88)          2,993            400 
   - Increase in pre-operational         (297)              -              - 
    expenses (intangibles) 
 Cash used in operations               (4,443)          (765)        (9,031) 
 
 Net Interest (cost) / received              -            (9)              - 
 Net cash used in operating 
  activities                           (4,443)          (774)        (9,031) 
 
 CASH FLOWS FROM INVESTING 
  ACTIVITIES 
 Purchase of property, plant 
  and equipment                          (228)        (5,351)        (2,334) 
 Purchase of subsidiary,                     -              -              - 
  net of cash received 
 Disposal of Discontinued 
  Operation                                  -              -        (6,459) 
 Proceeds from Sale of motor 
  vehicles                                  39              -              - 
 Decrease /(Increase) in                     -            482              - 
  loans to associate 
 Net cash used in investing 
  activities                             (189)        (4,869)        (8,793) 
 
 CASH FLOWS FROM FINANCING 
  ACTIVITIES 
 Proceeds from issue of share 
  capital                                5,077         16,836         16,950 
 Share issue costs                       (183)          (842)          (842) 
 Repayment of borrowings                     -           (55)              - 
 Net cash flow from financing 
  activities                             4,894         15,939         16,108 
 
 Net increase / (decrease) 
  in cash and cash equivalents             262         10,296        (1,716) 
 
 Cash and cash equivalents 
  at start of the period                 1,450          3,132          3,132 
 Effect of foreign exchange 
  rate changes                             (3)          (556)             34 
 Cash and cash equivalents 
  at end of the period                   1,709         12,872          1,450 
 

Notes to the Interim Financial Statements

   1.    General Information 

Atlas African Industries Limited, formerly Atlas Development & Support Services Limited ("Atlas" or the "Company") is incorporated and domiciled in Guernsey. The nature of the Group's operations and its principal activities are set out in the Chairman's Statement.

The presentational currency of the Group is US Dollars as this reflects the Group's business activities in the services sector in sub-Saharan Africa and therefore the Group's financial position and financial performance.

The interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.

BASIS OF PREPARATION

The interim consolidated financial statements of the Group for the 6 months ended 30 June 2016, which are unaudited and have not been reviewed by the Company's auditor, have been prepared in accordance with the International Financial Reporting Standards ('IFRS'), as adopted by the European Union, accounting policies adopted by the Group and set out in the annual report for the year ended 31 December 2015. The Group does not anticipate any significant change in these accounting policies for the year ended 31 December 2016. References to 'IFRS' hereafter should be construed as references to IFRSs as adopted by the EU.

This interim report has been prepared to comply with the requirements of the AIM Rules of the London Stock Exchange (the 'AIM Rules'). In preparing this report, the Group has adopted the guidance in the AIM Rules for interim accounts which do not require that the interim consolidated financial statements are prepared in accordance with IAS 34, 'Interim financial reporting'. While the financial figures included in this report have been computed in accordance with IFRSs applicable to interim periods, this report does not contain sufficient information to constitute an interim financial report as that term is defined in IFRSs.

The financial information contained in this report also does not constitute statutory accounts under the Companies (Guernsey) Law 2008, as amended. The financial information for the year ended 31 December 2015 is based on the statutory accounts for the period then ended. The auditors reported on those accounts. Their report was unqualified and did not include any statements of emphasis of matter.

The current period financial statements have been prepared in accordance with the IFRS principles applicable to a going concern, which contemplate the realisation of assets and liquidation of liabilities during the normal course of operations. Having carried out a going concern review in preparing these interim financial statements, the Directors have concluded that there is a reasonable basis to adopt the going concern principle.

Critical Accounting Estimates Judgments

The preparation of the interim consolidated financial statements is in conformity with IFRS as adopted in the EU requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are discussed below.

Loss for the period

Operating expenses include:

 
                                 2016               2014           2015 
                             6 months            6 month      18 months 
                                                  period             to 
                                ended     to 31 December    31 December 
                              30 June 
                                 2016               2014           2015 
                               $ '000             $ '000         $ '000 
                           ----------  -----------------  ------------- 
 Foreign exchange losses 
  /(gains)                         11                521          1,288 
 Consultancy fees                 229                386          1,230 
 Senior Staff Costs               376                708          2,130 
 

Loss per Share

The calculation of the basic and diluted loss per share is based on the following data:

 
                                        2016               2014           2015 
                                    6 months            6 month      18 months 
                                    ended 30             period             to 
                                   June 2016     to 31 December 
                                                           2014 
                                      $ '000             $ '000    31 December 
                                                                          2015 
                                                                        $ '000 
                                ------------  -----------------  ------------- 
 Loss for the purposes 
  of basic loss per 
  share from continuing 
  operations                         (2,075)            (5,838)       (14,785) 
 Loss for the purposes 
  of basic loss per 
  share from continued 
  and discontinued operations        (2,075)            (5,838)      (345,185) 
 

Number of shares

 
                                          2016               2014           2015 
                                      6 months            6 month      18 months 
                                      ended 30             period             to 
                                     June 2016     to 31 December 
                                                             2014 
                                        $ '000             $ '000    31 December 
                                                                            2015 
                                                                          $ '000 
                                --------------  -----------------  ------------- 
 Weighted average number 
  of ordinary shares 
  for 
  the purposes of basic 
  and diluted loss per 
  share                          1,228,359,974        377,565,443    414,537,392 
 Loss per Share from              (0.17) cents        (1.5) cents   (3.58) cents 
  continuing operations 
 Loss per Share from              (0.17) cents        (1.5) cents   (8.21) cents 
  continuing and discontinued 
  operations 
 

Property, Plant and Equipment

 
                               Plant &   Motor Vehicles    Total 
                             Equipment 
 COST                           $ '000           $ '000   $ '000 
                           -----------  ---------------  ------- 
   As at 1 January 2016          2,328              187    2,515 
   Additions                       228                -      228 
   Disposals                         -             (53)     (53) 
   As at 30 June 2016            2,556              134    2,690 
 
 DEPRECIATION 
   As at 1 January 2016          (445)             (25)    (470) 
   Charge for the period         (220)              (6)    (226) 
   Disposals                                         13       13 
   As at 30 June 2016            (665)             (18)    (683) 
 
   NET BOOK VALUE AT 
    30 June 2016                 1,891              116    2,007 
   NET BOOK VALUE AT 
    31 December 2015             1,883              162    2,045 
 

Interest in SUBSIDIARIES

Investments include:

 
                                    Country   Class of   % ownership    Principal 
                            of registration     Shares                   Activity 
                            / incorporation       held 
                          -----------------  ---------  ------------  ----------- 
 ADSS Holdings                    Mauritius   Ordinary           100   Investment 
  Limited                                                                 Holding 
  (formerly 
  Ardan Risk 
  Holdings) 
 ADSS Trading                     Mauritius   Ordinary           100      Trading 
  Limited                                                                  Entity 
  (formerly Ardan 
  Risk Trading) 
 East Africa Packaging            Mauritius   Ordinary           100   Investment 
  Holdings Limited                                                        Holding 
 TEAP Glass plc                    Ethiopia   Ordinary           100      Trading 
                                                                           Entity 
 Atlas Development                 Ethiopia   Ordinary           100      Trading 
  (Engineering)                                                            Entity 
  PLC 
 ADSS Extractive                   Ethiopia   Ordinary            50   JV Trading 
  Mining Oil and                                                           Entity 
  Gas Supportive 
  Services 
 Kalamu Development                Tanzania   Ordinary           100      Trading 
  & Support Services                                                       Entity 
 Ardan Servicos                  Mozambique   Ordinary           100      Dormant 
  Medicos Limitada                                                         Entity 
 Ardan Servicos                  Mozambique   Ordinary           100      Dormant 
  Logisticos Limitada                                                      Entity 
 Kalamu Management                Mauritius   Ordinary            66      Trading 
  Services Limited                                                         Entity 
 
 
 

The Directors consider the carrying amount of investment in subsidiaries has not suffered any impairment loss.

TRADE AND OTHER RECEIVABLES

All non-current receivables are due within five years from the end of the reporting period.

 
                                2016               2014           2015 
                            6 months     6 month period      18 months 
                            ended 30     to 31 December             to 
                           June 2016               2014 
                              $ '000             $ '000    31 December 
                                                                  2015 
                                                                $ '000 
                        ------------  -----------------  ------------- 
 Trade receivables                 -                863              - 
 Other Receivables             2,410              2,393              5 
 Prepayments                      45                105            166 
 Rental Deposits                  16                  -             23 
 Loans to associate                -              8,063              - 
 
 Less non-current                  -            (8,063)              - 
  portion: loans to 
  associate 
----------------------  ------------  -----------------  ------------- 
 TOTAL CURRENT ASSETS          2,471              3,361            194 
 

The effective interest rates on non-current receivables were 2.2%.

The directors consider that the carrying amount of trade and other receivables approximates their fair value.

There are no significant amounts past due.

CaSH AND CASH EQUIVALENTS

 
                                     2016            2014           2015 
                                 6 months         6 month      18 months 
                                 ended 30       period to             to 
                                     June     31 December 
                                     2016            2014    31 December 
                                                                    2015 
                                   $ '000          $ '000         $ '000 
                              -----------  --------------  ------------- 
  Cash and cash equivalents         1,709          12,872          1,450 
 
 

Financial Liabilities

 
                                  2016         2014            2015 
                              6 months      6 month    18 months to 
                              ended 30       period 
                                  June        to 31 
                                           December 
                                  2016         2014     31 December 
                                $ '000       $ '000            2015 
                                                             $ '000 
                           -----------  -----------  -------------- 
 Trade Payables                    234        2,347             369 
 Other Payables                    480        1,158             408 
 Current Tax Liabilities           101           68               - 
 Borrowings                          -           60               - 
-------------------------  -----------  -----------  -------------- 
 TOTAL TRADE AND 
  OTHER PAYABLES                   815        3,633             777 
 
 

Trade and other payables principally comprise amounts outstanding for trade purchases and ongoing costs. The increase during the current period in payables relates to ALK which has now been consolidated.

The directors consider that the carrying amount of financial liabilities approximates their fair value.

Share Capital

 
                          Allotted and fully paid 
 Ordinary shares             Number 
  of no par value                           $'000 
                        ----------------  -------- 
 At 31 December 2015       433,063,193     36,616 
 Issue of shares          1,064,307,692     4,894 
 Total share Capital: 
 At 30 June 2016          1,497,370,885    41,510 
 

The Company has one class of ordinary share which carries no right to fixed income.

On 15 August 2014, 77.8 million ordinary shares were issued for cash at a price of 9.0 pence per ordinary share.

On 23 October 2014, the Company issued 350,000 ordinary shares in part payment for services rendered by an adviser.

On 17 December 2014, the Company issued 39.1 million ordinary shares at a price of 8.13 pence per ordinary share.

During December 2014, 350,000 shares were issued to the Company's Kenyan nominated adviser at a price of GBP0.10/shares in lieu of professional fees of GBP35,000.

On 16 February 2016, the Company issued 1,064 million ordinary shares at a price of 0.325 pence per ordinary share.

Movement in Retained Earnings

 
                               2016            2014           2015 
                           6 months         6 month      18 months 
                           ended 30       period to             to 
                          June 2016     31 December 
                                               2014 
                             $ '000          $ '000    31 December 
                                                              2015 
                                                            $ '000 
 Prior Period Losses       (35,762)         (1,580)        (1,580) 
 Loss for the period        (2,065)         (5,838)       (34,182) 
---------------------  ------------  --------------  ------------- 
 Retained Earnings         (37,827)         (7,418)       (35,762) 
 

Controlling Party

The Directors believe that there is no ultimate controlling party.

Post Balance Sheet Events

On 1 August 2016, the Company announces that it has acquired a 10% interest in BonanzaWin, a Nigerian based gaming company offering a range of online and real-play gaming experiences including sports betting, casino slot games, and lotto.

On1 August 2016, Barry Lobel stepped down from his role as Chief Financial Officer and Executive Director, effective immediately. The Board is assessing options for a replacement CFO and expect to fill the position with a non-board appointment in due course.

Interim Segmental reporting

Segment information about these businesses is presented below:

 
                              Ethiopia   Mauritius   Unallocated     Total 
                                $ '000       $'000        $ '000    $ '000 
 Revenue 
   External Sales                    -           -            63        63 
   Inter-segment sales               -           -             -         - 
 Total revenue                       -           -            63        63 
 
 Segment results 
   Operating profit/(loss) 
    by segment                       -        (33)       (1,974)   (2,007) 
   Share option charge               -           -          (67)      (67) 
   Share of results                  -           -             -         - 
    of associates 
 Operating profit/(loss)             -        (33)       (2,041)   (2,074) 
 
 Finance costs                       -           -             -         - 
 Loss before taxation                -        (33)       (2,041)   (2,074) 
 Tax                                 -           -           (1)       (1) 
 Loss for the year 
  from Continuing 
  Operations                         -        (33)       (2,042)   (2,075) 
 
 Loss for the year                               -             - 
  from Discontinued 
  Operations                         -                                   - 
 Loss for the year                   -        (33)       (2,042)   (2,075) 
 
 
 Consolidated Total 
  Assets                         3,069       1,037         3,168     7,274 
 Consolidated Total 
  Liabilities                     (64)       (741)          (10)     (815) 
 

** ENDS **

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR KBLFXQVFBBBZ

(END) Dow Jones Newswires

August 31, 2016 02:01 ET (06:01 GMT)

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