TIDMPCGB
RNS Number : 1934P
Power Capital Global Ltd
30 September 2013
30 September 2013
POWER CAPITAL GLOBAL LIMITED
("Power Capital" or "the Company")
Interim Results for the six months ended 30 June 2013
Power Capital Global Limited (AIM:PCGB), the Asia based natural
resources trading and logistics group, announces that it has today
has today published its unaudited results for the six months ended
30 June 2013. A copy of the interim results will shortly be
available for download from the Company's web site:
www.powercapitalglobal.com
Further information
Power Capital Global
Limited
Simon Dewhurst Tel: +852 3695 5150
Northland Capital Partners
Limited
Luke Cairns/Edward Hutton Tel: +44 (0)20 7796 8800
GTH Communications Limited
Toby Hall/Suzanne Johnson Tel: +44 (0)20 7822 7493/7492
Walsh
- ends -
Operational Update
We continue to make progress in the development of an Asia based
natural resources trading and logistics platform. Our development
strategy was unchanged throughout the first six months of this
year. We remain focused on building a scaleable physical commodity
trading and logistics business and executing a parallel investment
program targeting partner companies that offer the Company
in-market access to commodity trading opportunities that might
otherwise be inaccessible or unknown to us. Your board has also
determined that we need to reduce the absolute number of new
development opportunities put under review, and focus instead on
the projects, commodities and trading partner relationships that
have proven to be reliable over the past year against what has been
a very challenged back drop for commodity volumes and pricing.
Our commitment to build a scaleable physical commodity trading
and logistics business with a commodity sourcing market footprint
that is global and which supplies a commercial client base located
in the key industrial regions of the People's Republic of China on
a direct-to-buyer basis wherever possible remains central to our
forward development.
In parallel, we remain focused on executing our investment
program targeting partner companies that offer the Company
in-market access to commodity trading opportunities that might
otherwise be inaccessible or unknown to us. Specifically, this
strategy has evolved over the past twelve months to identify
partner companies in four off-take supply markets that are at very
different stages of development, but which all share the common
characteristics of proximity to China and substantial naturally
occurring mineral wealth; namely Indonesia, Mongolia, Afghanistan
and Myanmar. Partner company investment opportunities are assessed
by reference to the following; (i) in-market competitive advantage
related to mining licenses and / or mineral off-take opportunities;
(ii) our in-market access to senior management; together with (iii)
more traditional private equity consideration of the intrinsic
valuation of the investment opportunity, the target company's
market share (we focus on best in sector companies), quality of
management and our investment exit strategy. We believe that this
parallel investment strategy will yield successful and accelerated
scale into our primary physical commodity trading activities from
each of the target commodity supply markets as referenced above
over the years to come.
Mongolia
The Company, through its wholly owned subsidiary PCG Mongolia
Limited, owns a 1.2% equity stake in Asia Pacific Investment
Partners Limited ("APIP"). APIP is currently developing an early
stage exploration license targeting an identified major copper-gold
porphyry system located in the South Gobi and also operates the
country's third largest cement crushing facility which is located
in the capital city, Ulaan Baatar. APIP's on-going corporate
development towards a stock exchange listing in the near term is on
track and Company management continues to monitor this development
closely. We remain focussed on using our in-country knowledge and
contacts in Mongolia as a fast track for finding and evaluating
opportunities in the burgeoning natural resources sector in
Mongolia. Political uncertainty has created some headwinds over the
more recent trading period in terms of how foreign investment law
will develop, and the right strategy has in our view been to step
back from making further investments in Mongolia until more clarity
is available.
Indonesia
In the period under review, domestic thermal coal sales by our
Indonesian joint venture amounted to approximately 10,800 metric
tonnes with an aggregate sales value of approximately US$454,000
(GBP289,000). The domestic thermal coal trading business in
Indonesia is seasonal and is subject to significant price
volatility as small traders step in and out the market affecting
the short term demand supply balance. We suspended barge shipments
at the start of the period under review into softened market
pricing and we will recommence trading activity once market
conditions improve. The Company, through its subsidiary, PCG Coal
(Indonesia) Limited ("PCI"), entered into an off-take agreement
with PT Perdana Maju Utama ("PMU") during the first half of 2013 to
acquire up to one million metric tonnes of thermal coal. PMU owns a
coal concession totalling approximately 4,700 hectares located in
East Kalimantan, Indonesia. PCI's branding and marketing of the
coal has commenced to our end buyers and the contracted coal volume
is forecast to be delivered by PMU over a twelve-month trading
period following completion of the first delivery batch in August
2013.
We continue to explore other coal off-take and supply chain
opportunities in the Kalimantan region of Indonesia.
We have put a lot of focus into further developing a vertically
integrated tin dredging and smelting operation located in Bangka,
Indonesia inside the main Pacific Rim tin zone. Indonesia has
proven tin (Sn) reserves of over 800,000 metric tonnes and supplied
nearly 40% of all global demand in 2012 according to the
International Tin Research Institute. Our business partner in this
venture has recently secured rights over two cassiterite placer
deposit concessions located in oceanic submerged river channels in
the shallow waters surrounding the Indonesian islands of Bangka and
Belitung and we expect to be able to announce the commencement of
cassiterite dredging operations in the fourth quarter of this year.
Cassiterite is by far the most important tin ore and it is found in
abundance in large placer deposits.
An in principle agreement reached in 2012 to extend the term of
the loan to TSI Holdings Limited ("TSI") and introduce certain
penalties in the event of default under the arrangement remains
unsigned. The Company continues to seek constructive discussions
with TSI in this matter and the Company notes its understanding
that TSI has successfully completed a recent restructuring of its
business.
Corporate Matters
The Company issued 16,233,765 ordinary shares pursuant to
conversion notices from the holders of the US$5 million unsecured
convertible loan notes ("CLNs") in late April 2013. This represents
full conversion of all CLNs in issue at the end of the year under
review and completes the financial restructuring announced by the
Company in July 2012. It has added new investors in PCGB and
increased the free float in its shares from approximately 21% to
38%. It has also substantially reduced the balance sheet gearing of
the Company.
The Company was pleased to welcome Heng-Jui Lin to its Board in
March 2013 as a non-executive director. Heng-Jui (or Henry) is the
majority shareholder of Kolarmy Technology INC, which is currently
providing the Group with financial support in the form of a loan
facility. Henry is the brother of Kung-Min Lin, the controlling
shareholder of the Company.
Summary
We believe that these important development activities have
substantially advanced the Company in its pursuit of a plan to
build Power Capital Global into a highly regarded Asian commodity
trading business. The Board looks forward to continuing to build
out its natural resources trading and logistics operations in
Asia.
Simon Dewhurst
Chief Executive Officer
30 September 2013
Consolidated Statement of Comprehensive Income
For The Six Months Ended 30 June 2013
(expressed in thousands GBP sterling)
Six months Six months Year ended
to 30/06/2013 to 30/06/2012 31/12/2012
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Revenue 289 - 1,192
Cost of sales (269) - (1,286)
--------------- --------------- --------------
Gross profit/(loss) 20 - (94)
Administrative expenses (707) (666) (1,565)
Operating loss (687) (666) (1,659)
Other income 16 1 15
Finance costs (70) (28) (91)
--------------- --------------- ------------
Loss before taxation (741) (693) (1,735)
Income tax expense (1) - (1)
--------------- --------------- ------------
Loss for the period/year after
taxation (742) (693) (1,736)
Other comprehensive income - - -
--------------- --------------- ------------
Total comprehensive expenses (742) (693) (1,736)
=============== =============== ============
Attributable to:
Owners of the parent (745) (693) (1,717)
Non-controlling interests 3 - (19)
--------------- --------------- ------------
Total comprehensive expenses (742) (693) (1,736)
=============== =============== ============
Loss per share (basic) (GBP0.012) (GBP0.012) (GBP0.030)
=============== =============== ============
Loss per share (diluted) N/A N/A N/A
=============== =============== ============
Consolidated Statement of Financial Position
As At 30 June 2013
(expressed in thousands GBP sterling)
30/6/2013 30/06/2012 31/12/2012
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Non-current assets
Property, plant and equipment 28 64 36
Loans receivable 637 395 637
Available-for-sale investments 1,273 1,273 1,273
---------- ----------- -----------
1,938 1,732 1,946
Current assets
Inventories - 170 -
Trade and other receivables 211 178 191
Rental and other deposits 1,643 34 28
Cash and cash equivalents 73 296 202
---------- ----------- -----------
1,927 678 421
Current liabilities
Other payables and accruals 669 229 383
Deposits from customers - 528 -
Amount due to a related company 3,232 3,119 1,277
Convertible loan notes - - 3,076
Provision for current tax - - 1
---------- ----------- -----------
3,901 3,876 4,737
---------- ----------- -----------
Net current liabilities (1,974) (3,198) (4,316)
---------- ----------- -----------
Net liabilities (36) (1,466) (2,370)
========== =========== ===========
Equity
Share capital 6,134 2,983 3,058
Reserves (6,218) (4,449) (5,473)
---------- ----------- -----------
Equity attributable to owners
of the parent (84) (1,466) (2,415)
Non-controlling interests 48 - 45
---------- ----------- -----------
Capital deficiencies (36) (1,466) (2,370)
========== =========== ===========
Consolidated Statement of Changes In Equity
For The Six Months Ended 30 June 2013
(expressed in thousands GBP sterling)
Paid-in Accumulated Total Non- Total
capital losses controlling
interest
GBP000 GBP000 GBP000 GBP000 GBP000
At 1 January 2012 2,983 (3,756) (773) - (773)
Total comprehensive
expenses for the six
months to 30 June 2012 - (693) (693) - (693)
At 30 June 2012 and
1 July 2012 2,983 (4,449) (1,466) - (1,466)
Capital contribution
from non-controlling
interests - - - 64 64
Issue of shares upon
equity-settled share-based
arrangement 75 - 75 - 75
Total comprehensive
expenses for the six
months to 31 December
2012 - (1,024) (1,024) (19) (1,043)
--------- ------------ -------- ------------- ---------
At 31 December 2012
and
1 January 2013 3,058 (5,473) (2,415) 45 (2,370)
Issue of shares upon
conversion of convertible
loan notes 3,076 - 3,076 - 3,076
Total comprehensive
expenses for the six
months to 30 June 2013 - (745) (745) 3 (742)
At 30 June 2013 6,134 (6,218) (84) 48 (36)
========= ============ ======== ============= =========
Consolidated Statement of Cash flows
For The Six Months Ended 30 June 2013
(expressed in thousands GBP sterling)
Six months Six months Year ended
to 30/06/2013 to 30/06/2012 31/12/2012
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Cash flows from operating activities
Loss before taxation (741) (693) (1,735)
Adjustments for:
Depreciation of property, plant
and equipment 8 10 19
Loss on disposal of property,
plant and equipment - - 21
Provision for bad and doubtful
debts - - 81
Deregistration of a subsidiary - - (6)
Equity-settled share-based payment 41 - 146
Exchange gain on convertible
loan notes - - (108)
Interest income (16) (1) (14)
Finance costs 70 28 91
--------------- --------------- ------------
Operating cash flows before movements
in working capital (638) (656) (1,505)
Increase in inventories - (170) -
Increase in trade and other receivables (20) (161) (255)
(Increase)/Decrease in rental
and other deposits (1,615) - 6
Increase in deposit from customer - 528 -
Increase /(Decrease) in other
payables and accruals 286 (5) 99
--------------- ------------
Cash used in operations (1,987) (464) (1,655)
Income taxes paid (2) - -
--------------- --------------- ------------
Net cash used in operating activities (1,989) (464) (1,655)
--------------- --------------- ------------
Cash flows from investing activities
Additions of property, plant
and equipment - (5) (7)
Loans to a third party - (395) (637)
Acquisition of available-for-sale
investments - (1,273) (1,273)
Interest received 6 1 1
--------- -------- --------
Net cash generated from/(used
in) investing activities 6 (1,672) (1,916)
--------- -------- --------
Cash flows from financing activities
Loans from a related company 1,854 2,331 3,673
Net cash generated from financing
activities 1,854 2,331 3,673
--------- --------
(Decrease)/Increase in cash and
cash equivalents (129) 195 102
Cash and cash equivalents at
beginning of the financial period 202 101 101
--------- --------
Cash and cash equivalents at
end of the financial period 73 296 202
========= ======== ========
Cash and cash equivalents consist
of:
Cash at bank and in hand 73 296 202
========= ======== ========
NOTES TO THE INTERIM FINANCIAL INFORMATION
1. The interim financial information has been prepared under the
historical cost convention. The principal accounting policies
adopted in the preparation of this interim financial information
are consistent with those followed in the Group's annual financial
statements for the year ended 31 December 2012.
2. The Group has not early adopted certain new standards,
amendments to standards and interpretations that have been issued
at the time of preparing the interim financial information but are
not yet effective. The directors of the Company (the "Directors")
anticipate that all of the pronouncements will be adopted in the
Group's accounting policy for the period beginning after the
effective date of the pronouncements. The Directors are also
currently assessing the impact of these new standards, amendments
to standards and interpretation but are not yet in a position to
state whether they would have material impact on the results and
the financial position of the Group.
3. The interim financial information for the period ended 30
June 2013 does not constitute the Group's statutory accounts for
that period. The statutory accounts for the year ended 31 December
2012 have been delivered to the Registrar of Companies.
The interim financial information for the six months ended 30
June 2013 and 30 June 2012 is unaudited.
4. Loss per share has been calculated on the basis of the net
loss after taxation of GBP742,000 (Six months ended 30 June 2012:
loss GBP693,000, Year ended 31 December 2012: loss GBP1,736,000)
and the weighted average number of shares in issue during the six
months ended 30 June 2013 of 62,661,793 (Six months ended 30 June
2012: 57,056,501, Year ended 31 December 2012: 57,101,056). Diluted
loss per share has not been presented as no dilutive instruments
have been issued during each reporting period presented in
financial information.
5. The increase in rental deposits in the period under review of
GBP1,615,000 is comprised of the off-take deposit of US$2 million
paid to PMU under the coal supply agreement entered into in May
2013, and a deposit of US$500,000 paid in relation to the on-going
development progress on the tin project.
6. On 29 April 2013, the Company issued 16,233,765 ordinary
shares pursuant to conversion notices from the holders of the US$5
million convertible loan notes ("CLN") issued by the Company on 25
July 2012 at a conversion price of 20p per share.
This represented full conversion of the CLN's in issue and
completes the restructuring announced by the Company in July 2012.
It also substantially reduces the balance sheet gearing of the
Company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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