TIDMDOR
DORIEMUS PLC
("DORIEMUS" or "the Company")
Final Results for Year Ending 31 December 2013
Chairman's Statement
I am pleased to present the final results for the year ended 31 December 2013.
The Company has acquired three exciting investments during the year which we
believe will enhance future shareholder value and continues to maintain its
interest in the TEP Exchange business.
Your board of directors will continue to seek out further investments in the UK
"conventional" oil and gas space and work closely with Angus Energy Limited on
ways of increasing our oil production from the existing operating fields.
The next financial year should see significant improvements in production at
two of Angus Energy's licences (Lidsey and Brockham) with new production wells
proposed to be drilled on both. We should also know the outcome of the Horse
Hill-1 well.
We will also continue to seek out further investments in line with the
Company's investment strategy.
Investments
Horse Hill Prospect:
Doriemus has a direct 10.0% interest in Horse Hill Development Ltd ("HHDL"), a
special purpose company that owns a 65% participating interest and operatorship
of the Horse Hill Petroleum Exploration and Development Licence No. 137 (PEDL
137) located in Surrey, United Kingdom.
Angus Energy Limited ("Angus Energy"), the major shareholder of HHDL and the
operator of PEDL 137 has provided the Company with the following update on the
proposed Horse Hill-1 well planned for completion by the end of August 2014.
* All tenders are now out for the site construction and long lead items for
the well.
* The contracts for the drill rig and key service providers are in the final
stages of negotiation.
* Permitting is currently on track for a spud date in July 2014.
* The depth of Horse Hill-1 well has been set to 8,512 feet to test
conventional stacked oil and gas targets.
As previously announced on 13 January 2014, the Horse Hill-1 well is designed
to test a number of conventional stacked oil and gas targets which the board
believes could contain up to an estimated 671 million stock barrels ("MMSTB")
oil in place with an estimated total mean recoverable prospective resources of
87 MMSTB and additional prospectivity of 456 Bcf gas in place (Mean 164+ Bcf
recoverable prospective resource) in the proposed Triassic gas play.
On 16 June 2014, the Company was advised that that site construction has now
commenced for the proposed Horse Hill-1 well. The well is expected to spud in
July 2014 and is targeting a number of conventional stacked oil and gas
targets.
Brockham Oil Field (10% owned by DOR and operated by Angus Energy):
The Brockham Oil Field ("Brockham"), in the Weald Basin, is held under United
Kingdom Production Licence PL 235. Oil production was recently increased from
42 bopd to 84 bopd after a successful work-over programme in January 2014 and
production has only slightly tapered off to its current levels of about 66
bopd. Brockham's 28 API oil is regularly trucked and sold to the Perenco Oil
Refinery in southern England.
The planned 450 metre side-track well at Brockham, designed to increase overall
production from the field, as previously announced on 25 April 2014, has been
temporarily delayed by up to 13 weeks due to the UK Environmental Agency having
recently requested that the operator, Angus Energy, must apply for a new mining
waste permit. Angus Energy is currently attending to obtaining this additional
permit.
An appropriate drill rig is on standby to undertake this side-track well, and
it is planned to mobilise the rig to site once the new mining waste permit has
been issued.
In preparation for the expected increase in oil production, post the
side-track, Angus Energy has now completed the refurbishment of the
1,200-barrel storage tank facilities.
In March 2014, the Company announced that RPS Energy Consultants Limited
("RPS") had independently assessed that, as at 31 December 2013, the Brockham
Field contains 3.62 million barrels (gross) Oil in-place (P50 best case).
Lidsey Oil Field (20% owned by DOR and operated by Angus Energy):
The Lidsey Oil Field ("Lidsey"), in the Weald Basin, is held under United
Kingdom Production Licence PL 241. Oil production was 25 bopd, prior to a
re-completion programme completed in November and December 2013, which resulted
in a temporary boost in oil production. Production has steadily declined to 36
bopd and Angus Energy formally advised the partners in Lidsey that a new
re-completion was being planned to re-perforate virgin oil zones in the
Lidsey-1 well in order to again increase production.
On 11 June 2014, the Company announced that work had started on the second
stage well intervention on the producing Lidsey-1 well. Results of this work
will be announced shortly.
Lidsey has a fully permitted and operational 2,000-barrel storage facility and
its 38 API oil is regularly trucked and sold to the Perenco Oil Refinery.
In March 2014, the Company announced that RPS had independently assessed that,
as at 31 December 2013, the Lidsey Field contained 9.52 million barrels (gross)
of P50 best case Oil In-Place.
Drilling of a new Lidsey-2 well has now been postponed until after the
completion of drilling of the proposed Horse Hill-1 well.
TEP Exchange:
The TEP Exchange is a web-based exchange for Traded Endowment Policies (TEP),
enabling instant deals between Market Makers (buyers) and IFAs (Sellers). This
unique environment provides an efficient and user-friendly link between buyers
and sellers in the TEP market. The TEP Exchange does not buy or sell
endowments, but rather facilitates the trading of TEPs through an exchange
platform.
The market demand for traded endowment policies was extremely depressed and
Company continued to work closely with market makers in anticipation of
increasing demand for policies. The board continues to maintain strong controls
over the TEP exchange cost base but are mindful to explore other opportunities
for the Company.
Background Events
During the financial year, there has been a period of considerable change for
the Company. The uncertainty surrounding the future demand and supply of traded
endowment policies resulted in the Board considering the strategic direction of
the Company.
As a consequence of the strategic review by the Board, in March 2013 three new
Directors being Donald Strang, Hamish Harris and Grant Roberts were appointed
simultaneously with the re-capitalisation of the Company together with the
adoption by the Board of the new investment policy approved by shareholders at
a general meeting on 15 March 2013.
The new investing policy was set out in detail in the circular issued by the
Company on 21 February 2013 whereby the Company would be able to maintain its
interest in the TEP business but also seek to maximise shareholder value by
drawing on the experience and expertise of the three new Directors in
identifying accretive opportunities.
In line with the new investing policy the Company changed its name to Doriemus
Plc on 16 July 2013.
The board has raised approximately GBP2.36 million to strengthen the Company's
balance sheet and which provides funds to be invested according to the
Company's new investing policy.
New investing policy
The Company's new investing policy is to invest in and/or acquire companies and
/or projects within the natural resources sector with potential for growth. The
Company will also consider opportunities in other sectors as they arise if the
Board considers there is an opportunity to generate an attractive return for
Shareholders. Investments may be considered in all regions to the extent that
the Board considers that valuable opportunities exist and returns can be
achieved. In selecting investment opportunities, the Board will focus on
businesses, assets and/or projects that are available at attractive valuations
and hold opportunities to unlock embedded value.
The Board will seek to invest in businesses where it may influence the business
at a board level, add their expertise to the management of the business, and
utilise their significant industry relationships and access to finance. The
ability to work alongside a strong management team to maximize returns through
revenue growth will be something the Board will focus upon.
The Company's interests in a proposed investment and/or acquisition may range
from a minority position to full ownership. The proposed investments may be
either quoted or unquoted, may be in companies, partnerships, earn-in joint
ventures, debt or other loan structures, joint ventures or direct interests in
projects. The Board may focus on investments where intrinsic value can be
achieved from the restructuring of investments or merger of complementary
businesses. The Board expects that investments will typically be held for the
medium to long term, although short term disposal of assets cannot be ruled out
if there is an opportunity to generate an attractive return for Shareholders.
Results for the period
Loss for the year to 31 December 2013 amounted to GBP(598,000) (2012: GBP591,000
operating profit).
Total revenue for the period was GBP235,000 (2012: GBP916,000).
On 21 February 2013 the Company announced that an interim dividend for the 2013
accounting period of 0.02p per share would be paid to shareholders on 12 April
2013 and the dividend was duly paid.
Outlook
Your Board considers that the adoption of the new Investing Policy is in the
best interests of the Company and its Shareholders as a whole. The Board
acknowledges this exciting period for the Company as it proceeds to implement
its new investment strategy and has already commenced acquiring new investments
and continues to evaluate further investment opportunities as they arise.
We believe the Company is now best placed to move forward and to enhance future
shareholder value.
We will continue to seek out further investments in line with the Company's
investment strategy and will also work closely with Angus Energy on ways of
potentially increasing our oil production from the existing operating fields.
The Board would like to take this opportunity to thank our shareholders for
their continued support.
I look forward to reporting further progress over the next period and beyond.
Donald Strang
Chairman
26 June 2014
Glossary:
API American Petroleum Institute measure of the gravity of oil
bopd Barrels of oil per day
Doriemus plc +44 (0) 20 7440 0640
Donald Strang / Hamish Harris
Cairn Financial Advisers LLP +44 (0) 20 7148 7900
Nominated Adviser and Broker
James Caithie / Jo Turner / Carolyn Sansom
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2013
Note 2013 2012
GBP GBP
Revenue 2 235,100 915,886
Cost of sales (12,681) -
Gross profit 222,419 915,886
Administrative expenses (586,904) (334,135)
Share based payment charge (235,911) -
(Loss)/profit from operations 4 (600,396) 581,751
Finance income 5 2,305 9,008
Finance expense 6 - -
(Loss)/profit before income tax (598,091) 590,759
Income tax expense 7 - -
(Loss)/profit attributable to the owners of the (598,091) 590,759
parent and total comprehensive income for the year
Earnings per share
Basic earnings per share 9 (0.02)p 0.07p
Diluted earnings per share 9 (0.02)p 0.05p
Consolidated Statement of Changes in Equity
for the year ended 31 December 2013
Share Share Share Retained Total
capital premium based earnings/
payment Accumulated
reserve losses
GBP GBP GBP GBP GBP
At 1 January 2012 2,267,480 4,032,678 - (6,277,292) 22,866
Capital reduction and (2,258,980) (4,032,678) - 6,291,658 -
cancellation of share
premium
Dividends on ordinary - - - (255,000) (255,000)
shares declared and paid
________ _________ _________ _________ ________
Transactions with owners (2,258,980) (4,032,678) - 6,036,658 (255,000)
Profit for the year and - - - 590,759 590,759
total comprehensive
income
________ _________ _________ _________ ________
At 1 January 2013 8,500 - - 350,125 358,625
Dividends on ordinary - - - (296,000) (296,000)
shares declared and paid
Issue of Share capital 38,900 2,359,700 - - 2,398,600
Share issue costs - (80,000) - - (80,000)
Share based payments - - 235,911 - 235,911
________ _________ _________ _________ ________
Transactions with owners 38,900 2,279,700 235,911 (296,000) 2,258,511
(Loss) for the year and - - - (598,091) (598,091)
total comprehensive
income
________ _________ _________ _________ ________
At 31 December 2013 47,400 2,279,700 235,911 (543,966) 2,019,045
________ _________ _________ _________ ________
Share capital is the amount subscribed for ordinary shares at nominal value.
Retained earnings / accumulated losses represent cumulative gains and losses of
the group attributable to equity shareholders.
Share based payment reserve represents the value of equity benefits provided to
employees and directors as part of their remuneration and provided to
consultants and advisors hired by the Company from time to time as part of the
consideration paid.
Company Statement of Changes in Equity
for the year ended 31 December 2013
Share Share Share Retained Total
capital premium based earnings /
payment Accumulated
reserve losses
GBP GBP GBP GBP GBP
At 1 January 2012 2,267,480 4,032,678 - (7,912,654) (1,612,496)
Capital reduction and (2,258,980) (4,032,678) - 6,291,658 -
cancellation of share
premium
Dividends on ordinary - - - (255,000) (255,000)
shares declared and paid
________ _________ _________ _________ ________
Transactions with owners (2,258,980) (4,032,678) - 6,036,658 (255,000)
Dividend received from - - - 1,500,000 1,500,000
subsidiary
Profit for the year and - - - 712,247 712,247
total comprehensive
income
________ _________ _________ _________ ________
At 1 January 2013 8,500 - - 336,251 344,751
Dividends on ordinary - - - (296,000) (296,000)
shares declared and paid
Issue of Share capital 38,900 2,359,700 - - 2,398,600
Share issue costs - (80,000) - - (80,000)
Share based payments - - 235,911 - 235,911
________ _________ _________ _________ ________
Transactions with owners 38,900 2,279,700 235,911 (296,000) 2,258,511
(Loss) for the year and - - - (450,307) (450,307)
total comprehensive
income
________ _________ _________ _________ ________
At 31 December 2013 47,400 2,279,700 235,911 (410,056) 2,152,955
________ _________ _________ _________ ________
Share capital is the amount subscribed for ordinary shares at nominal value.
Retained earnings / accumulated losses represent cumulative gains and losses of
the company attributable to equity shareholders.
Share based payment reserve represents the value of equity benefits provided to
employees and directors as part of their remuneration and provided to
consultants and advisors hired by the Company from time to time as part of the
consideration paid.
Consolidated Statement of Financial Position
at 31 December 2013
Note 2013 2013 2012 2012
GBP GBP GBP GBP
Assets
Non-current assets
Intangible assets 10 1,016,000 -
Property, plant and equipment 11 - -
Total non-current assets 1,016,000 -
Current assets
Trade and other receivables 14 387,515 426,794
Derivative financial instruments 13 400,000 -
Cash and cash equivalents 986,885 80,951
Total current assets 1,774,400 507,745
Total assets 2,790,400 507,745
Liabilities
Current liabilities
Trade and other payables 15 (771,355) (149,120)
Total current liabilities (771,355) (149,120)
Total liabilities (771,355) (149,120)
Net assets 2,019,045 358,625
Equity attributable to owners
of the parent
Share capital 16 47,400 8,500
Share premium account 2,279,700 -
Share based payment reserve 235,911 -
Retained earnings (543,966) 350,125
Total equity 2,019,045 358,625
The financial statements were approved by the Board of Directors and authorised
for issue on 26 June 2014.
H Harris
Director
Company registered number 03877125
The notes on pages 17 to 32 form part of these financial statements.
Company Statement of Financial Position
at 31 December 2013
Note 2013 2013 2012 2012
GBP GBP GBP GBP
Assets
Non-current assets
Intangible assets 10 1,016,000 -
Property, plant and equipment 11 - -
Investments in subsidiary 12 100,006 100,006
undertakings
1,116,006 100,006
Current assets
Trade and other receivables 14 506,937 544,374
Derivative financial instruments 13 400,000 -
Cash and cash equivalents 985,147 31,421
Total current assets 1,892,084 575,795
Total assets 3,008,090 675,801
Liabilities
Current liabilities
Trade and other payables 15 (855,135) (331,050)
Total current liabilities (855,135) (331,050)
Total liabilities (855,135) (331,050)
Net assets 2,152,955 344,751
Equity attributable to owners
of the parent
Share capital 16 47,400 8,500
Share premium account 2,279,700 -
Share based payment reserve 235,911 -
Retained earnings (410,056) 336,251
Total equity 2,152,955 344,751
The financial statements were approved by the Board of Directors and authorised
for issue on 26 June 2014.
H Harris
Director
Company registered number 03877125
Consolidated Statement of Cash Flows
for the year ended 31 December 2013
2013 2012
GBP GBP
Cash flows from operating activities
(Loss)/profit before income tax (598,091) 590,759
Adjustments for:
Share based payment charge 235,911 -
Finance costs (net) (2,305) (9,008)
Changes in working capital:
Inventories - 3,525
Trade and other receivables (91,721) (23,338)
Trade and other payables 82,235 (55,868)
Cash generated from operations (373,971) 506,070
Interest paid - -
Net cash generated from operating (373,971) 506,070
activities
Cash flows from investing activities
Payments for intangible assets (390,000) -
Loans repaid from/(granted) to 375,000 (250,000)
related parties
Interest received 2,305 6,288
Net cash used in investing (12,695) (243,712)
activities
Cash flows from financing activities
Proceeds from issuance of ordinary 1,628,600 -
shares
Share issue costs (40,000) -
Dividend paid to owners of the (296,000) (255,000)
parent
Net cash used in financing 1,292,600 (255,000)
activities
Net increase in cash and cash 905,934 7,358
equivalents
Cash, cash equivalents and bank
overdrafts
at beginning of year 80,951 73,593
Cash and cash equivalents at the end 986,885 80,951
of year
Cash and cash equivalents comprise:
Cash available on demand 986,885 80,951
Company Statement of Cash Flows
for the year ended 31 December 2013
2013 2012
GBP GBP
Cash flows from operating
activities
(Loss)/profit before income tax (450,307) 712,247
Adjustments for:
Share based payment charge 235,911 -
Finance costs (net) (2,305) (9,008)
Changes in working capital:
Trade and other receivables (93,563) 4,452
Trade and other payables (15,915) -1,739,860
Cash generated from operating (326,179) -1,032,169
activities
Interest paid - -
Net cash generated from operating (326,179) -1,032,169
activities
Cash flows from investing
activities
Payments for intangible assets (390,000) -
Loans repaid from/(granted) to 375,000 (250,000)
related parties
Interest received 2,305 6,288
Dividends received - 1,500,000
Net cash used in investing (12,695) 1,256,288
activities
Cash flows from financing
activities
Proceeds from Issuance of ordinary 1,628,600 -
share capital
Share issue costs (40,000) -
Dividend paid to owners of the (296,000) (255,000)
parent
Net cash used in financing 1,292,600 (255,000)
activities
Net increase/(decrease) in cash and 953,726 (30,881)
cash equivalents
Cash, cash equivalents and bank
overdrafts
at beginning of year 31,421 62,302
Cash and cash equivalents at the 985,147 31,421
end of year
Cash and cash equivalents comprise:
Cash available on demand 985,147 31,421
Notes forming part of the financial statements
for the year ended 31 December 2013
1 Accounting policies
Background information
Doriemus plc is incorporated and domiciled in Great Britain. The address of
Doriemus plc's registered office is Suite 3B, 38 Jermyn Street, London, SW1Y
6DN which is also the Company's principal place of business. Doriemus plc's
shares are listed on the AIM of the London Stock Exchange. The Company changed
its name from TEP Exchange Group Plc by resolution on 16 July 2013.
Basis of preparation
The principal accounting policies adopted in the preparation of the financial
statements are set out below. The policies have been consistently applied to
the company and the group to all the years presented, unless otherwise stated.
These financial statements have been prepared in accordance with International
Financial Reporting Standards, International Accounting Standards and EU
adopted IFRICs (collectively IFRS) issued by the International Accounting
Standards Board (IASB) as adopted by European Union ("adopted IFRSs"), and in
accordance with those parts of the Companies Act 2006 applicable to those
companies preparing their accounts under IFRS. The consolidated financial
statements have been prepared under the historical cost convention.
As described in the Directors Report on page 5, the directors have a reasonable
expectation that the group has adequate resources to continue in operational
existence for the foreseeable future. The group therefore continues to adopt
the going concern basis in preparing its consolidated financial statements.
Standards, amendments and interpretations to published standards not yet
effective
In the current year, the following new and revised Standards and
Interpretations have been adopted and have affected the amounts reported in
these financial statements.
IFRS 13 Fair Value Measurement
The Company has applied IFRS13 for the first time in the current year. IFRS13
establishes a single source of guidance for fair value measurements and
disclosures about fair value measurements. IFRS13 defines fair value as the
price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction in the principal (or most advantageous) market at the
measurement date under current market conditions. Fair value under IFRS13 is an
exit price regardless of whether that price is directly observable or estimated
using another valuation technique. Also, IFRS13 includes extensive disclosure
requirements.
IFRS13 requires prospective application from 1 January 2013. In addition,
specific transitional provisions were given to entities such that they need not
apply the disclosure requirements set out in the Standard in comparative
information provided for periods before the initial application of the
Standard.
In accordance with these transitional provisions, the Company has not made any
new disclosures required by IFRS13 for the 2012 comparative period. Other than
the additional disclosures, the application of IFRS13 has not had any impact on
the amounts recognised in the consolidated financial statements.
Amendments to IAS1 Presentation of Financial Statements
(as part of the Annual Improvements to IFRSs 2009; 2011 Cycle issued in May
2012)
The Annual Improvements to IFRSs 2009; 2011 have made a number of amendments to
IFRSs. The amendments that are relevant to the Company are the amendments to
IAS1 regarding when a statement of financial position as at the beginning of
the preceding period (third statement of financial position) and the related
notes are required to be presented. The amendments specify that a third
statement of financial position is required when a) an entity applies an
accounting policy retrospectively, or makes a retrospective restatement or
reclassification of items in its financial statements, and b) the retrospective
application, restatement or reclassification has a material effect on the
information in the third statement of financial position. The amendments
specify that related notes are not required to accompany the third statement of
financial position.
This has no impact for the 2013 financial statements.
Amendments to IFRS7 Disclosures
The Company has applied the amendments to IFRS7 Disclosures-Offsetting
Financial Assets and Financial Liabilities for the first time in the current
year. The amendments to IFRS7 require entities to disclose information about
rights of offset and related arrangements (such as collateral posting
requirements) for financial instruments under an enforceable master netting
agreement or similar arrangement.
As the Company does not have any offsetting arrangements in place, the
application of the amendments has had no impact on the disclosures or on the
amounts recognised in the financial statements.
At the date of authorisation of these financial statements, the following
Standards and Interpretations which have not been applied in these financial
statements were in issue but not yet effective (and in some cases had not yet
been adopted by the EU):
IFRS9 Financial Instruments
IFRS10 Consolidated Financial Statements
IFRS12 Joint Arrangements
IAS27 (revised) Investment Entities
IAS28 (revised) Investments in Associates and Joint Ventures
IAS32 (revised) Offsetting Financial Assets and Financial Liabilities
IAS36 (revised) Recoverable Amount Disclosures for Non Financial Assets
IAS39 (revised) Novation of Derivatives and Continuation of Hedge Accounting
IFRIC Interpretation21 Levies
The directors do not expect that the adoption of the Standards and
Interpretations listed above will have a material impact on the financial
statements of the Company in future periods, except as that IFRS9 will impact
both the measurement and disclosures of Financial Instruments.
Beyond the information above, it is not practicable to provide a reasonable
estimate of the effect of these standards until a detailed review has been
completed.
The directors do not expect that the adoption of the standards listed above
will have a material impact on the financial statements of the Company in
future periods, however, it is not practicable to provide a reasonable estimate
of the effect of these standards until a detailed review has been completed.
Basis of consolidation
Where the company has the power, either directly or indirectly, to govern the
financial and operating policies of another entity or business so as to obtain
benefits from its activities, it is classified as a subsidiary. The
consolidated financial statements present the results of the company and its
subsidiaries ("the group") as if they formed a single entity. Intercompany
transactions and balances between group companies are therefore eliminated in
full. Uniform accounting policies are adopted across the group.
Revenue
Revenue is generated from two sources of income currently. In the current and
prior years, revenue has represented fees and commission (exclusive of value
added tax) from licensing of the group's proprietary electronic platform and
advertising the purchase of with profit endowment policies by market makers
registered on the electronic platform. Fees and commission income is recognised
when the group's contractual obligations are complete. Income has also been
generated from the maturity of an endowment policy. In the current year,
revenue is also being generated from the Company's Farm-in interests, on an
accrued monthly basis, along with the associated costs.
Expenses
Expenses are recognised in the period when obligations are incurred and matched
against when the related revenue is recognised.
Financial assets
The group classifies its financial assets into categories as set out below,
depending on the purpose for which the asset was acquired.
Trade and other receivables
These assets are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. They arise principally
through the provision of goods and services to customers (e.g. trade
receivables), but also incorporate other types of contractual monetary asset.
They are initially recognised at fair value plus transaction costs that are
directly attributable to their acquisition or issue, and are subsequently
carried at cost, less provision for impairment, if appropriate.
Impairment provisions are recognised when there is objective evidence (such as
significant financial difficulties on the part of the counterparty or default
or significant delay in payment) that the group will be unable to collect all
of the amounts due under the terms receivable, the amount of such a provision
being the difference between the net carrying amount and the present value of
the future expected cash flows associated with the impaired receivable. For
trade receivables, which are reported net, such provisions are recorded in a
separate allowance account with the loss being recognised within administrative
expenses in the statement of comprehensive income. On confirmation that the
trade receivable will not be collectable, the gross carrying value of the asset
is written off against the associated provision.
The group's loans and receivables comprise trade and other receivables and cash
and cash equivalents in the statement of financial position. Those of the
company also include amounts due from subsidiary undertakings.
Cash and cash equivalents
Includes cash in hand, deposits held at call with banks, other short term
highly liquid investments with original maturities of three months or less, and
bank overdrafts. Bank overdrafts are shown within loans and borrowings in
current liabilities on the statement of financial position.
Financial liabilities
The group classifies its financial liabilities into one of the following
categories, depending on the purpose for which the liability was acquired:
* Trade payables and other short-term monetary liabilities, which are
initially recognised at fair value and subsequently carried at amortised
cost using the effective interest method
* Bank and other borrowings are initially recognised at fair value net of any
transaction costs directly attributable to the issue of the instrument.
* Income received in advance is recorded as deferred income on the balance
sheet.
Share capital
Financial instruments issued by the group are treated as equity only to the
extent that they do not meet the definition of a financial liability. The
group's ordinary and deferred shares are classified as equity instruments.
Investments in subsidiary undertakings
Investments in subsidiary undertakings are held as non-current assets and are
stated at cost less provision for impairment in value.
Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation
and accumulated impairment losses. Such cost includes the cost of replacing
part of the plant and equipment when that cost is incurred, if the recognition
criteria are met. All other repair and maintenance costs are recognised in
profit or loss as incurred.
Depreciation is calculated on a straight line basis over the useful life of the
asset as follows:
Computer equipment - 3 years
Fixtures, fittings and equipment - 4 years
An item of property, plant and equipment is derecognised upon disposal or when
no future economic benefits are expected from its use or disposal. Any gain or
loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is
included in profit or loss in the year the asset is derecognised.
The assets' residual values, useful lives and methods of depreciation are
reviewed, and adjusted if appropriate, at each financial year end.
Intangible assets - Licences
Licences are recognised as an intangible asset at historical cost and are
carried at cost less accumulated amortisation and accumulated impairment
losses. The licences have a finite life and no residual value and are amortised
over the life of the licence.
Exploration of mineral resources
Acquired intangible assets, which consist of mining rights, are valued at cost
less accumulated amortisation.
The Group applies the full cost method of accounting for exploration and
evaluation costs, having regard to the requirements of IFRS 6 'Exploration for
and Evaluation of Mineral Resources'. All costs associated with mining
development and investment are capitalised on a project by project basis
pending determination of the feasibility of the project. Such expenditure
comprises appropriate technical and administrative expenses but not general
overheads.
Such exploration and evaluation costs are capitalised provided that the Group's
rights to tenure are current and one of the following conditions is met:
i. such costs are expected to be recouped through successful development and
exploitation of the area of interest or alternatively by its sale; or
ii. the activities have not reached a stage which permits a reasonable
assessment of whether or not economically recoverable resources exist; or
iii. active and significant operations in relation to the area are continuing.
Exploration of mineral resources (continued)
When an area of interest is abandoned or the directors decide that it is not
commercial, any exploration and evaluation costs previously capitalised in
respect of that area are written off to profit or loss.
Amortisation does not take place until production commences in these areas.
Once production commences, amortisation is calculated on the unit of production
method, over the remaining life of the mine. Impairment assessments are carried
out regularly by the directors. Exploration and evaluation assets are assessed
for impairment when facts and circumstances suggest that the carrying amount
may exceed its recoverable amount. Such indicators include the point at which a
determination is made as to whether or not commercial reserves exist.
The asset's residual value and useful lives are reviewed and adjusted if
appropriate, at each reporting date. An assets' carrying value is written down
immediately to its recoverable value if the assets carrying amount is greater
than its listed recoverable amount.
Impairment testing of goodwill and other intangible assets
For the purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows (cash-generating
units). As a result, some assets are tested individually for impairment and
some are tested at cash-generating unit level. Goodwill is allocated to those
cash-generating units that are expected to benefit from synergies of the
related business combination and represent the lowest level within the Group at
which management monitors the related cash flows.
Goodwill, other individual assets or cash-generating units that include
goodwill and other intangible assets with an indefinite useful life are tested
for impairment at least annually.
An impairment loss is recognised for the amount by which the asset's or
cash-generating unit's carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of fair value, reflecting market conditions
less costs to sell, and value in use. Impairment losses recognised for
cash-generating units, to which goodwill has been allocated, are credited
initially to the carrying amount of goodwill. Any remaining impairment loss is
charged pro rata to the other assets in the cash generating unit. With the
exception of goodwill, all assets are subsequently reassessed for indications
that an impairment loss previously recognised may no longer exist.
Current and deferred income tax
The tax expense for the period comprises current and deferred tax. Tax is
recognised in the income statement, except to the extent that it relates to
items recognised in other comprehensive income or directly in equity. In this
case the tax is also recognised in other comprehensive income or directly in
equity, respectively.
The current income tax charge is calculated on the basis of the tax laws
enacted or substantively enacted at the balance sheet date in the countries
where the company's subsidiaries and associates operate and generate taxable
income. Management periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulation is subject to
interpretation and establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on
temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the consolidated financial statements. However,
the deferred income tax is not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting nor
taxable profit nor loss. Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantially enacted by the balance sheet date
and are expected to apply when the related deferred income tax asset is
realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable
that future taxable profit will be available against which the temporary
differences can be utilised. Deferred income tax is provided on temporary
differences arising on investments in subsidiaries and associates, expect where
the timing of the reversal of the temporary difference is controlled by the
group and it is probable that the temporary difference will not reverse in the
foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets against current tax liabilities
and when the deferred income taxes assets and liabilities relate to income
taxes levied by the same taxation authority on either the taxable entity or
different taxable entities where there is an intention to settle the balances
on a net basis.
Segmental reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker. The chief operating
decision maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Board.
Deferred Income
License fees received in advance are recorded as deferred income on the balance
sheet, and the income released to the comprehensive income as services are
provided.
Distribution of dividends
Dividends are recorded in the accounts when they become a legal obligation of
the payer. For final dividends, this will be when they are approved by the
company. For interim dividends, this will be when they have been paid.
2 Revenue and segmental reporting
The group's current revenue is all generated in the United Kingdom mainly from
the licensing of its electronic platform for trading endowment policies. The
group also earns fees from advertising the purchase of with profit endowment
policies by market makers registered on the electronic platform. The revenue
from this segment was GBP219,587.
The group has no other geographical segments.
The group's other operating segment is mining, within the United Kingdom.
However with this segment in its infancy, and with the only major related
transactions being the acquisition of the intangible assets as described in
note 10. The revenue from this segmental was GBP15,513.
Subject to further acquisitions and disposals, the Group expects to further
review its segmental information during the forthcoming financial year, as it
begins to see the full impact of its acquisitions and disposals.
Transactions with related parties are disclosed in note 17.
3 Staff and director costs
Group 2013 2012
GBP GBP
Staff costs, including directors, consist of:
Fees and remuneration for management services 235,911 28,338
The group had no employees other than the executive director. No pension
contributions were made in respect of the directors (2012: GBPnil). The key
management personnel of the group are the board of directors and their
compensation is disclosed below;
Fees and Share based payments Total
salaries
2013 GBP GBP GBP
D Strang (appointed 25 March 6,750 84,254 91,004
2013)
H Harris (appointed (25 March 6,750 84,254 91,004
2013)
D Roxburgh 6,750 33,702 40,452
M Kraus (resigned 25 March 900 - 900
2013)
A Weitz (resigned 25 March 900 - 900
2013)
G Roberts (appointed 25 March 6,750 33,701 40,451
2013)
G Kynoch (resigned 10 October 7,500 - 7,500
2013)
36,300 235,911 272,211
2012 GBP GBP GBP
D Roxburgh 12,138
M Kraus 3,600 -
A Weitz 3,600 -
G Kynoch 9,000 -
28,338 - 28,338
4 Profit from operations
Group 2013 2012
GBP GBP
Profit from operations is stated after charging:
Fees payable to the company's auditor for the audit of:
Parent company and consolidated financial statements 12,000 9,000
Fees payable to the company's auditor and its associates
for other services:
- The audit of the company's subsidiaries pursuant to 3,835 5,700
legislation
- Taxation services - -
5 Finance income
Group 2013 2012
GBP GBP
Interest receivable 2,305 9,000
6 Finance expense
Group 2013 2012
GBP GBP
Interest payable on other borrowings - -
7 Income tax expense
No liability to corporation tax arises on the results for the year due to the
utilisation of losses brought forward.
The tax assessed for the year varies from the standard rate of corporation tax
in the UK. The differences are explained below:
2013 2012
GBP GBP
(Loss)/profit on ordinary activities before income tax (598,091) 590,759
(Loss)/profit on ordinary activities before income tax
multiplied
by the standard rate of UK corporation tax of 23.5% (2012: (140,551) 144,736
24.5%)
Unutilised tax losses 140,551 144,736
Current year income tax charge - -
At 31 December 2013 the group had a deferred income tax asset of GBP1,488,491
(2012: GBP1,123,479) in respect of losses which has not been recognised in these
financial statements.
8 (Loss)/profit for the year attributable to the members of Doriemus PLC
2013 2012
GBP GBP
Dealt with in financial statements of the parent company (450,307) 712,247
The Company has taken advantage of the exemption allowed under section 408 of
the Companies Act 2006 and has not presented its own statement of comprehensive
income in these financial statements.
9 Earnings per share
The calculation of the basic and diluted earnings per share is based upon:
2013 2012
Basic earnings per share (pence) (0.02) p 0.07 p
Diluted earnings per share (pence) (0.02) p 0.05 p
(Loss)/profit attributable to equity shareholders (GBP598,091) GBP590,759
Number Number
Weighted average number of shares - basic 2,791,780,820 849,999,999
Weighted average number of shares - diluted 2,929,972,601 1,100,273,972
The diluted number of shares includes 500 million warrants and 140 million
share options (2012: 630million warrants) as described in Note 15.
10 Intangible assets
Group and Company Exploration Total
Costs
GBP GBP
Cost
At 1 January 2012, 31 December 2012,
01-Jan-13 - -
Additions 1,016,000 1,016,000
At 31 December 2013 1,016,000 1,016,000
Amortisation and impairment
At 1 January 2012, 31 December 2012,
1 January 2013 and at 31 December 2013 - -
Net book value
At 31 December 2013 1,016,000 1,016,000
At 31 December 2012 - -
On 18 October 2013 the Company entered into an agreement to acquire a 10 %
participating interest in the Lidsey Oil Field, in the United Kingdom, with a
further 10% acquired on 14 November 2013. Consideration paid totalled GBP630,000.
A 10% participating interest in the Brockham Oil Field, in the United Kingdom,
was also acquired for a total consideration of GBP386,000 on 3 December 2013.
Impairment Review
At 31 December 2013, the directors have carried out an impairment review and
have considered that no impairment write-down is required (2012: GBPnil). The
directors are of the opinion that the carrying value is stated at fair value.
11 Property, plant and equipment
Group and Company Computer Fixtures, Total
equipment fittings and
equipment
GBP GBP GBP
Cost
At 1 January 2012, 31 December 2012,
1 January 2013 and 31 December 2013 173,446 65,474 238,920
Accumulated depreciation
At 1 January 2012, 31 December 2012,
1 January 2013 and at 31 December 2013 173,446 65,474 238,920
Net book value
At 31 December 2013 - - -
At 31 December 2012 - - -
12 Investments in subsidiary undertakings - Company
2013 2012
GBP GBP
Subsidiary undertakings - shares at cost and net book value 100,006 100,006
The following were subsidiary undertakings held directly by the Company at the
end of the year:
Name Country of Proportion of Nature of business
incorporation voting rights and
ordinary share
capital held
voting right
TEP-Exchange Limited England 100% Advertising services
to the traded
endowment policy
market
TEP-Exchange Interim England 100% Trading of traded
Portfolio Limited endowment policies
TEP Transfer Limited England 100% Dormant
Interactive Intelligence England 100% Dormant
Limited
Interactive Intelligence England 100% Dormant
UK Limited
Property Exchange Systems England 100% Dormant
Limited
E-X Group Limited England 100% Dormant
Electronic Market Place England 100% Dormant
Limited
Endowment Exchange (UK) England 100% Dormant
Limited
Traded Endowment Exchange England 100% Dormant
Limited
E-TEP Limited England 100% Dormant
13 Derivative Financial Instrument
On 10 December 2013, the Company announced that it had entered into an equity
swap agreement ("the Equity Swap Agreement") with YAGM over 400,000,000 of the
Subscription Shares ("the Swap Shares"). In return for a payment by the Company
to YAGM of GBP400,000 ("the Initial Escrowed Funds"), twelve monthly settlement
payments in respect of such payment were to be made by YAGM to the Company, or
by the Company to YAGM, based on a formula related to the difference between
the prevailing market price (as defined in the Equity Swap Agreement) of the
Company's ordinary shares in any month and a 'benchmark price' that is 10%
above the Subscription Price. Thus the funds received by the Company in respect
of the Swap Shares are dependent on the future price performance of the
Company's ordinary shares.
The Initial Escrowed Funds was deposited into an escrow account ("the Escrow
Account") and the subsequent monthly settlement payments will be managed
through the Escrow Account under the terms of the Equity Swap Agreement.
YAGM may elect to terminate the Equity Swap Agreement and accelerate the
payments due under it in certain circumstances. The Company may pause a monthly
payment under the Equity Swap Agreement once in each six month period.
YAGM has agreed that it and its affiliates will refrain from holding any net
short position in respect of the Company's ordinary shares and has agreed
restrictions on the volume of ordinary shares in the Company that it can trade
from time to time until the expiry or if earlier termination of the Equity Swap
Agreement.
By 31 December 2013 nil shares had been closed out for net proceeds of GBPnil.
The remaining balance has been fair valued at 31 December 2013, which has not
resulted in any fair value adjustment based on the benchmark price and formula
of the arrangement, with any unrealised gain credited to reserve and
highlighted in other comprehensive income.
2013 2012
GBP GBP
Fair Value as at 1 January - -
Cost of equity swap arrangement 400,000 -
Settled during the year - -
Fair value adjustment to 31 December - -
Fair Value carried forward as at 31 400,000 -
December
14 Trade and other receivables
2013 2012 2013 2012
Group Group Company Company
GBP GBP GBP GBP
Trade receivables 108,410 2,720 107,832 2,720
Amounts due from subsidiary undertakings - - 150,000 150,000
Other receivables 244,000 376,000 244,000 376,000
Prepayments and accrued income 35,105 48,074 5,105 15,654
387,515 426,794 506,937 544,374
At the year end, there were no receivables which are past due or impaired.
Included in amounts due from subsidiary undertakings is an amount of GBP150,000
(2012: GBP150,000) in respect of an unsecured loan to TEP-Exchange Limited and is
subject to a tripartite agreement with Doriemus plc (the lender) and the
Financial Conduct Authority. Interest can be demanded by Doriemus plc and if so
demanded will be calculated at the annual rate of 5% above the London
Inter-Bank Offered Rate for deposits of pounds sterling.
15 Trade and other payables
2013 2012 2013 2012
Group Group Company Company
GBP GBP GBP GBP
Trade payables 125,238 44,018 34,891 44,018
Other payables - 3,500 - 3,500
Amounts due to subsidiary undertakings - - 174,127 182,259
Creditors for taxation and social 9,972 25,772 9,972 25,773
security
Accrued liabilities and deferred income 636,145 75,830 636,145 75,500
771,355 149,120 855,135 331,050
For the amounts owing to subsidiary undertakings, there are no scheduled
repayment terms, no interest is charged, and no security is held.
Ordinary Nominal
Shares Value
Ordinary shares of 0.001p each Number GBP
Allotted, called up and fully paid
As at 1 January 2012, and as at 31 849,999,999 8,500
December 2012
15 March 2013 - Placing for cash at 1,479,999,999 14,800
0.0135p per share
15 March 2013 - Warrants exercised at 630,000,000 6,300
0.002p per share
4 October 2013 - Placing for cash at 500,000,000 5,000
0.04p per share
18 October 2013 - Shares issued for 100,000,000 1,000
non-cash consideration
1 November 2013 - Placing for cash at 400,000,000 4,000
0.09p per share
14 November 2013 - Shares issued for 100,000,000 1,000
non-cash consideration
3 December 2013 - Shares issued for 130,000,000 1,300
non-cash consideration
11 December 2013 - Placing for cash at 550,000,000 5,500
0.2p per share
As at 31 December 2013 4,739,999,998 47,400
During the year ended 31 December 2012, TEP Exchange Group Plc effected a court
and shareholder approved capital reduction by way of cancellation of its
deferred shares (225,897,991,731 of 0.001p each, GBP2,258,980) and cancellation
of its share premium account (GBP4,032,678).
Dividends Paid
On 12 April 2013 the Company paid a dividend of 0.02p (2012: 0.03p per share),
to shareholders. Total dividend paid GBP296,000. (2012: GBP255,000)
Capital Management
The group's capital comprises the ordinary shares 0.001p (2012: 0.001p) each,
as shown above.
The group's objectives when maintaining capital are:
* to safeguard the entity's ability to continue as a going concern, so that
it can continue to provide returns for shareholders and benefits for other
stakeholders, and
* to provide an adequate return to shareholders by pricing products and
services commensurately with the level of risk.
The group sets the amount of capital it requires in proportion to risk. The
group manages its capital structure and makes adjustments to it in the light of
changes in economic conditions and the risk characteristics of the underlying
assets. In order to maintain or adjust the capital structure, the group may
adjust the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares, or sell assets to reduce debt.
Warrants in issue
As at 1 January 2013, shareholders had the option of up to 4,500,000,000
subscription warrants for each subscription share, exercisable at 0.002p per
ordinary share. The warrants were only exercisable if the Company (and its
wholly owned subsidiaries) met certain performance criteria over the three
financial years ending 31 December 2013. The Company would also have had to
declared, made and paid dividends of at least GBP250,000 to all shareholders
before the warrants could be exercised. The warrants may only be exercised
together as a whole and not in part. However, 3,870,000,000 of the warrant
shares were waived in recognition of a reduced ongoing recurring income stream,
and on 15 March 2013, 630,000,000 of the 4,500,000,000 subscription warrants
were therefore exercised.
On 4 October 2013 subscribers to the share issue were awarded one warrant per
share at an exercise price of 0.04 pence, resulting in the issue of 500,000,000
warrants. All of these warrants expire on 30 September 2014. All of these
warrants remain outstanding and exercisable at 31 December 2013.
Share Options
The Company has as at 31 December 2013, 140,000,000 (2012: nil) share options
issued through its share schemes, all issued during the year. (2012: nil)
16 Share based payments
The expense recognised for employee services received during the period is
shown in the following table:
2013 2012
Expenses arising from equity settled share-based GBP GBP
payments;
Share options issued and vested 235,911 -
Share options held by directors, employees and third parties are as follows:
Grant date Expiry date Exercise 31 December 2013
price
GBP Number
15 November 2013 14 November 2018 0.0022 140,000,000
A modified Black-Scholes model has been used to determine the fair value of the
share options on the date of grant. The fair value is expensed to the income
statement on a straight line basis over the vesting period, which is determined
annually. The model assesses a number of factors in calculating the fair value.
These include the market price on the date of grant, the exercise price of the
share options, the expected share price volatility of the Company's share
price, the expected life of the options, the risk free rate of interest and the
expected level of dividends in future periods.
The inputs into the model for the 15 November 2013 issue were as follows:
Granted 2013
Weighted average share price 0.18p
Expected volatility 166%
Expected life 5 years
Risk-free rate 2.3%
Expected dividend yield 0%
17 Related party transactions
During the year end 31 December 2012. Doriemus Plc received a dividend of GBP1.5m
from TEP Exchange Limited, a wholly owned subsidiary. No dividend was received
during the year ended 31 December 2013.
During the year ended 31 December 2013, the group earned fees of GBP219,550
(2012: GBP902,189) from SL Investment Management Limited ("SL"), a major
shareholder in the group. At the end of the year SL owed the group GBP105,000.
These fees relate predominantly to amounts earned from a licence agreement with
SL, allowing SL to develop and exploit the TEP Exchange platform and software.
During the year the group was charged GBP100,000 (2012: GBP124,000) by SL. At the
end of the year the group owed SL GBP7,443 (2012: GBP2,400).
At 31 December 2013, the Group has loaned SL GBPnil (2012: GBP375,000). The loan
was fully repaid on 2 April 2013. The total quarterly licence fees payable to
the company was reduced from GBP250,000 to GBP50,000 in the year, and in addition,
SL now has the right to terminate the licence agreement upon giving 30 days
prior written notice to the company.
On 10 October 2013, Mr G Kynoch resigned as a director of the company, and as
such the agreement with Drumduan Associates, to provide the services of G
Kynoch to act as a non-executive director and chairman of the company also was
terminated. The fees paid to Drumduan during the year amounted to GBP7,500 in
(2012: GBP9,000).
18 Financial instruments
Financial risk management
The Board of Directors sets the treasury policies and objectives of the group,
which includes controls over the procedures used to manage financial market
risks.
It is, and has been throughput the period under review, the group's policy that
no trading in financial instruments shall be undertaken. The main risks arising
from the group's financial instruments are:
* interest rate risk;
* liquidity risk;
* credit risk.
Interest rate risk
The group borrows only in sterling at both fixed and floating rates of
interest. At the year end, all borrowings were at variable rates.
Liquidity risk
The group's objective is to maintain a balance between continuity of funding
and flexibility through the use of bank loans and overdrafts as well as funding
from its largest shareholder.
Credit risk
The group has no significant concentration of credit risk. The main operating
subsidiary has strict verification procedures in place prior to credit being
advanced to customers and there are systems in place to ensure that there is a
regular monitoring of each customer's credit levels.
The Board agrees and reviews policies and financial instruments for risk
management. The primary objectives of the treasury function are to provide
competitively priced funding for the activities of the group and to identify
and manage financial risk.
Principal financial instruments
The principal financial instruments used by the group and the company from
which financial instrument risk arises, are as follows:
Financial assets 2013 2012 2013 2012
Group Group Company Company
GBP GBP GBP GBP
Trade receivables 108,410 2,720 107,832 2,720
Amount due from subsidiary undertakings - - 150,000 150,000
Other receivables 244,000 376,000 244,000 376,000
Cash and cash equivalents 986,885 80,951 985,147 31,421
Total financial assets classified as loans 1,338,295 459,671 1,486,979 560,141
and receivables
The maximum exposure to credit risk at the reporting date is the fair value of
each class of receivable set out above.
At 31 December 2013 and 2012 the carrying amounts of financial assets
approximate to their fair values.
Financial liabilities 2013 2012 2013 2012
Group Group Company Company
GBP GBP GBP GBP
Trade payables - current 125,238 44,018 34,891 44,018
Other payables - 3,500 - 3,500
Amounts due to subsidiary undertakings - - 174,127 182,259
Accrued liabilities 636,145 75,830 636,145 75,500
Creditors for taxation and social 9,972 25,772 9,972 25,773
security
Total financial liabilities measured at 771,355 149,120 855,135 331,050
amortised cost
To the extent trade and other payables are not carried at fair value in the
consolidated statement of financial position, book value approximates to fair
value at 31 December 2013 and 2012.
All financial assets and liabilities are due in less than 1 year.
The group and the Company are exposed through its operations to one or more of
the following financial risks:
Liquidity risk
Liquidity risk arises from the group's management of working capital and the
finance charges and principal repayments on its debt instruments. It is the
risk that the group will encounter difficulty in meeting its financial
obligations as they fall due.
Short term liquidity risk is managed by preparing forecasts together with
obtaining and reviewing the adequacy of banking facilities. There is currently
no long term liquidity risk.
Market operational and pricing risks
The group operates only in the United Kingdom. The group's only revenues are
derived from fee and commission income chargeable to customers. The level of
fees and commission is entirely dependent upon the level of activity in the
traded endowment policy market.
Credit risk
Credit risk represents the loss that the Company would incur if the
counterparty failed to perform its contractual obligations. The group is
exposed to credit risk in respect of fees and commission income chargeable to
companies with whom it had a contractual relationship and interest receivable
from its investments. Credit risk is mitigated through regular credit review of
counterparties. As these counterparties are regulated by the Financial Conduct
Authority, the credit reviews allow for the fact that they are subject to the
regulatory capital requirements.
The group's maximum exposure to credit risk is GBP50,000 plus VAT, on the net
quarterly licence fee agreement, and GBP400,000 in respect of the equity swap
arrangement with YAGM, a shareholder of the company. No collateral is held as
security. The credit qualities of financial assets that are neither past nor
impaired are considered to be good, as they are primarily trade receivables
from FSA regulated businesses and cash held with the Bank of Scotland. There
are no financial assets which are past due or impaired.
Credit risk also arises from cash and cash equivalents and deposits with banks
and financial institutions. For banks and financial institutions, only
independently rated parties with minimum rating "AA" are accepted.
Cash flow interest rate risk
The Group has minimal risk towards interest rate changes, other than those
effects on interest being received on cash held in the Group's bank accounts.
Currency risk
The group is not directly exposed to currency risk as its assets, liabilities,
revenue and expenditure are denominated in Sterling.
19 Events after the end of the reporting period
On 13 January 2014, the Company announced it had signed a Binding Term Sheet to
acquire an initial 7.5% interest in Horse Hill Development Ltd, a special
purpose company that holds the rights to a 65% participating interest and
operatorship in the highly prospective UK onshore Horse Hill Oil Field in the
Weald Basin. The cost of the initial 7.5% is GBP450,000.
On 3 March 2014, the Company announced it had increased its interest to 10% in
Horse Hill Development Ltd (as above) for a total consideration of GBP150,000.
On 2 May 2014, the Company raised GBP500,000 through the subscription for
500,000,000 ordinary shares at 0.10p per share. Furthermore, each Subscription
Share carries a half warrant which entitles the holder to subscribe for one new
ordinary share in the Company for every one full warrant held at 0.11 pence per
share up to 2 May 2015.
On 16 June 2014, the Company issued 105 million new ordinary shares pursuant to
a notice of exercise of warrants at an exercise price of 0.04p.
20 Commitments and contingencies
Doriemus plc has committed to providing support to its 100% subsidiary TEP
Exchange Interim Portfolio Limited in order that it can meet its obligations as
they fall due.
The directors have confirmed that there were no contingent liabilities or
capital commitments which should be disclosed at 31 December 2013.
21 Posting of accounts
The Report and Accounts for the year ended 31 December 2013 will be posted to
shareholders on 30 June 2014 and will be available on the Company's website on
the same date.
END
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