07:00 Tue 29 Sep 2020
Active Energy Group - Interim Results for Six Months Ended 30 June 2020
Active Energy Group Plc
('Active Energy', 'AEG', the 'Company' or the 'Group')
Interim Results for the Six Months Ended
Active Energy, the international biomass based renewable energy business, is pleased to announce its interim results for the six months ended
Highlights:
· Lumber operations continued at
· Lumber operations increased substantially following the completion of the acquisition of the joint venture interest in Renewable Energy Systems, LLC ("RES") from Renewable Logistics Systems LLC ("RLS") announced on
· Revenues of
· Completion of a fund raising of
· Strengthening of operational and industry expertise with the appointments of
Activities post the end of the Period:
· In
· Expansion of lumber operations and sales at
· Appointment of an industry qualified engineering firm as the EPC for the CoalSwitch™ plant at
· Announced an equity fundraise of
· Awarded London Stock Exchange's Green Economy Mark reflecting AEG's environmental credentials.
· Inclusion of AERP in the Advanced Biofuel Fuel Payment Program operated by the US Department of Agriculture and registration of AERP to the System for Award Management (SAM) database of entities entitled to work with the Federal Government.
· Additional award of a patent in regard to the CoalSwitch™ process by the US Patent office.
· The Company has also received several licensing enquiries from potential international partners in respect of additional CoalSwitch™ plants since the award of the Permit.
Outlook:
· AEG has significantly improved its operating and financial position since the beginning of the financial year in spite of the challenging environment. The goal of generating increasing revenues from the wood processing and saw log export businesses is now being achieved. AEG continues to accommodate demand from its customers for its current activities at
· The delay in respect of the award of the Permit, primarily owing to the impact of COVID-19, has meant consequent time delays to the CoalSwitch™ development programme but the Company is acting as quickly as possible to overcome these challenges and limit the effect of the delay.
· The award of the Permit has meant that the Company has been given the operational parameters for the operation of a CoalSwitch™ plant at
"The period under review has seen AEG build the platform to deliver on its two key strategic objectives, becoming a producer of next generation biomass fuels and establish a complementary, profitable lumber operation at the Lumberton Site. The Board is pleased with the progress AEG has made in recent months, particularly against the backdrop of COVID-19, in ramping up production at
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
Enquiries:
Website |
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www.linkedin.com/company/activeenergy
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Enquiries |
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Active Energy Group Plc |
Chief Executive Officer Chief Operations Officer |
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SP Angel Corporate Finance LLP Nominated Adviser and Broker
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Office: +44 (0)20 3470 0470 |
Allenby Capital Limited Joint Broker |
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Office: +44 (0)20 3328 5656 |
Camarco Financial PR Adviser |
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Office: +44 (0) 20 3757 4980 |
About Active Energy Group:
Active Energy Group plc is a
Chief Executive Officer's Statement
Introduction
In the first half of this financial year, Active Energy has developed
AEG's acquisition of 100% ownership interest of the former joint venture operation focused on lumber activities at
Accordingly, production volumes at the sawmill have continued to increase month-on-month throughout the year and Active Energy has been able to continue to source additional supplies of feedstock from the
AEG is focused on increasing the scale of these lumber activities at
The Company is currently shipping saw log export through ports near
CoalSwitchTM Technology - Issuance of Construction and Air Permit for the Lumberton Site
In
Nonetheless, this is an important milestone for the Company given that no such permits had ever been awarded previously. With the award of the Permit, AEG is now entitled to complete the engineering process on the original equipment included in the Plant and finalise the operational planning in accordance with the terms of the Permit. AEG has already commenced this exercise, including relevant engineering analysis, but given the current COVID-19 operating conditions, AEG cannot outline a definitive timetable at this time and currently expects that it is most likely that the Plant will commence operations during the first half of 2021.
At the same time, AEG has continued to protect and develop its intellectual property rights portfolio on its and related black pellet technology production processes. Earlier this month, AEG was issued with a further Notice of Allowance from the United States Patent and Trademark Office in relation to AEG's CoalSwitchTM technology. AEG has pending patents for this technology in
In
AEG has also continued to assess additional licensing opportunities for CoalSwitchTM technology and process both elsewhere in
Existing Business Operations:
During the first half of 2020, the Company has re-examined the business opportunities from its existing assets in
Financial Review
The overall loss for the six months ended
· Revenue generated from the lumber operations was
· Cost of sales were
· Administration costs were
· Finance costs were a credit of
· Income tax credit on continuing operations was
In addition, on
The operational losses, offset by issue of shares combined with the equity element of newly issued Convertible Loan Notes (see below), meant the Group's unaudited net assets fell to US$207,970 at
Capital Market Activities
On
After the period end, on
On
Outlook
Since the acquisition of
As the Company accommodates the operating challenges from COVID-19, AEG's goals for production and supply of biomass remain equally important. The Company is attempting to overcome delays caused by COVID-19 in regard to the commissioning of the plant. To have an operational reference plant to produce CoalSwitch™ and other black pellet fuels remains the prime focus, particularly with increasing customer interest. The Company is working on the final specification and equipment requirements to commission and commence operations of the CoalSwitch™ reference plant, including the appointment of local engineering and EPC contractors. The Company will provide an update on the expected timetable to commencement of operations when this process has been completed.
The addition of two non-executive directors to the Board in the last 6 months also represents another milestone in the revised business focus for AEG and their invaluable contribution has already been of great help. The Company expects more developments, which will further strengthen its business, to provide a platform for growth in 2021. We look forward to updating all stakeholders and shareholders at the earliest opportunity.
Chief Executive Officer
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED
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(Unaudited) |
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(Unaudited) |
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(Audited) |
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US$ |
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US$ |
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US$ |
|
Note |
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REVENUE FROM CONTRACTS WITH CUSTOMERS |
2 |
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499,893 |
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99,830 |
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1,895,972 |
Cost of sales |
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(142,058) |
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- |
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- |
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GROSS PROFIT |
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357,835 |
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99,830 |
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1,895,972 |
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Administrative expenses |
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(1,080,087) |
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(1,642,416) |
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(2,779,473) |
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OPERATING LOSS |
2 |
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(722,252) |
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(1,542,586) |
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(883,501) |
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Finance costs |
2 |
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111,844 |
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(290,387) |
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(2,461,376) |
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Loss from continuing operations |
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(610,408) |
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(1,832,973) |
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(3,344,877) |
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Income tax credit on continuing operations |
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16,494 |
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2,946 |
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874,655 |
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LOSS FOR THE PERIOD |
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(593,914) |
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(1,830,027) |
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(2,470,222) |
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Loss attributable to the Parent Company |
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(593,914) |
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(1,830,027) |
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(2,470,222) |
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OTHER COMPREHENSIVE INCOME/(EXPENSE): |
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Items that may be subsequently reclassified to profit or loss |
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Exchange differences on translation of operations |
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(247,604) |
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(6,129) |
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137,540 |
Revaluation of land and buildings |
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- |
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572,251 |
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504,646 |
Revaluation of assets held for resale |
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(106,366) |
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(4,070) |
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563,948 |
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Total other comprehensive expense |
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(353,970) |
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562,052 |
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1,206,134 |
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD |
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(947,884) |
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(1,267,975) |
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(1,264,088) |
Loss per share (US cent) - continuing operations |
3 |
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(0.05) |
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(0.15) |
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(0.21) |
Basic and Diluted (loss) per share (US cent) |
3 |
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(0.05) |
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(0.15) |
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(0.21) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT
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US$ |
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US$ |
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US$ |
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Note |
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(Unaudited) |
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(Unaudited) |
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(Audited) |
NON-CURRENT ASSETS |
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Intangible assets |
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9,368,367 |
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8,721,017 |
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9,180,466 |
Property, plant and equipment |
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10,454,916 |
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8,677,071 |
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9,231,743 |
Goodwill |
4 |
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374,519 |
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- |
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- |
Available for sale financial assets |
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1,364,273 |
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748,145 |
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1,470,639 |
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21,562,075 |
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18,146,233 |
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19,882,848 |
CURRENT ASSETS |
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Inventory |
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125,171 |
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- |
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- |
Trade and other receivables |
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1,452,467 |
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1,371,271 |
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1,146,815 |
Cash and cash equivalents |
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135,392 |
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661,533 |
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397,323 |
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1,713,030 |
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2,032,804 |
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1,544,138 |
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TOTAL ASSETS |
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23,275,105 |
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20,179,037 |
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21,426,986 |
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CURRENT LIABILITIES |
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Trade and other payables |
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2,696,646 |
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2,538,992 |
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2,391,229 |
Loans and borrowings |
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54,425 |
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1,110,731 |
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108,850 |
Finance leases falling due in less than one year |
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171,600 |
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- |
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- |
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2,922,671 |
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3,649,723 |
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2,500,079 |
NON-CURRENT LIABILITIES |
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Deferred income tax liabilities |
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347,822 |
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238,639 |
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364,316 |
Finance leases falling due in more than one year |
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233,618 |
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- |
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- |
Loans and borrowings |
5 |
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19,563,024 |
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16,198,842 |
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18,190,732 |
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20,144,464 |
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16,437,481 |
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18,555,048 |
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TOTAL LIABILITIES |
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23,067,135 |
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20,087,204 |
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21,055,127 |
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NET ASSETS |
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207,970 |
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91,833 |
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371,859 |
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EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT |
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Share capital |
6 |
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18,240,259 |
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17,265,379 |
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17,265,379 |
Share premium |
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17,307,737 |
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17,303,159 |
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17,303,159 |
Merger reserve |
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2,350,175 |
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2,350,175 |
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2,350,175 |
Foreign exchange reserve |
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(421,244) |
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(215,014) |
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(67,274) |
Own shares held reserve |
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(268,442) |
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(268,442) |
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(268,442) |
Convertible debt / warrant reserve |
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3,677,993 |
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3,344,590 |
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3,490,621 |
Revaluation reserve |
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504,646 |
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572,251 |
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504,646 |
Retained earnings |
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(41,183,154) |
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(39,902,222) |
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(40,206,405) |
Non‐controlling Interest |
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- |
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(358,043) |
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- |
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TOTAL EQUITY |
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207,970 |
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91,833 |
|
371,859 |
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS TO
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Note |
(Unaudited) |
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(Unaudited) |
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(Audited) |
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US$ |
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US$ |
|
US$ |
Cash (outflow)/inflow from operations |
7 |
(172,038) |
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(615,419) |
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1,675,831 |
Income tax paid |
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- |
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- |
|
- |
Net cash (outflow)/inflow from operating activities |
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(172,038) |
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(615,419) |
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1,675,831 |
Cash flows from investing activities |
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Purchase of intangible assets |
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(50,250) |
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(89,744) |
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(519,312) |
Purchase of property, plant and equipment |
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(45,170) |
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(3,414,465) |
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(1,756,619) |
Sale of property, plant and equipment |
|
- |
|
402,527 |
|
362,790 |
Net cash outflow from investing activities |
|
(95,420) |
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(3,101,682) |
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(1,913,141) |
Cash flows from financing activities |
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|
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Issue of CLN1 |
|
- |
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5,019,140 |
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2,762,781 |
Unsecured loans repaid |
|
- |
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(216,976) |
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(1,218,857) |
Finance expenses |
|
- |
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(723,819) |
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(1,207,093) |
Net cash inflow from financing activities |
|
- |
|
4,078,345 |
|
336,831 |
Net (decrease)/increase in cash and cash equivalents |
|
(267,458) |
|
361,244 |
|
99,521 |
Cash and cash equivalents at beginning of the year |
|
397,323 |
|
298,768 |
|
298,768 |
Exchange gains/(losses) on cash and cash equivalents |
|
5,527 |
|
1,521 |
|
(966) |
Cash and cash equivalents at end of the year |
|
135,392 |
|
661,533 |
|
397,323 |
1 .CLN issued does not include CLN subscribed for in
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS TO
|
Share capital |
Share premium |
Merger reserve |
Foreign exchange reserve |
Own shares held reserve |
Convertible debt and warrant reserve |
Revaluation reserve |
Retained earnings |
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Non-controlling Interest |
Total equity |
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|
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
At |
17,265,379 |
17,303,159 |
2,350,175 |
(204,815) |
(268,442) |
2,720,933 |
- |
(38,310,938) |
(358,043) |
497,408 |
Loss for the period |
- |
- |
- |
- |
- |
- |
- |
(1,830,027) |
- |
(1,830,027) |
Other comprehensive income |
- |
- |
- |
(10,199) |
- |
- |
- |
- |
- |
(10,199) |
Revaluation of land & buildings |
- |
- |
- |
- |
- |
- |
572,251 |
- |
- |
572,251 |
Embedded derivative on CLN issue |
- |
- |
- |
- |
- |
623,657 |
- |
- |
- |
623,657 |
Share based payments |
- |
- |
- |
- |
- |
- |
- |
238,743 |
- |
238,743 |
At |
17,265,379 |
17,303,159 |
2,350,175 |
(215,014) |
(268,442) |
3,344,590 |
572,251 |
(39,902,222) |
(358,043) |
91,833 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS TO
|
Share capital |
Share premium |
Merger reserve |
Foreign exchange reserve |
Own shares held reserve |
Convertible debt and warrant reserve |
Revaluation reserve |
Retained earnings |
|
|
Non-controlling Interest |
Total equity |
|||||||||
|
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
|
|
|
|
|
|
|
|
|
|
|
At |
17,265,379 |
17,303,159 |
2,350,175 |
(204,815) |
(268,442) |
2,720,933 |
(38,310,938) |
- |
(358,043) |
497,408 |
Loss for the period |
- |
- |
- |
- |
- |
- |
(2,470,222) |
- |
- |
(2,470,222) |
Other comprehensive income |
- |
- |
- |
137,541 |
- |
- |
563,948 |
- |
- |
701,489 |
Revaluation of land & buildings |
- |
- |
- |
- |
- |
- |
- |
504,646 |
- |
504,646 |
Embedded derivative on CLN issue |
- |
- |
- |
- |
- |
769,688 |
- |
- |
- |
769,688 |
Share based payments |
- |
- |
- |
- |
- |
- |
368,850 |
- |
- |
368,850 |
Minority Interest adjustment |
- |
- |
- |
- |
- |
- |
(358,043) |
- |
358,043 |
- |
|
|
|
|
|
|
|
|
|
|
- |
At |
17,265,379 |
17,303,159 |
2,350,175 |
(67,274) |
(268,442) |
3,490,621 |
(40,206,405) |
504,646 |
- |
371,859 |
Loss for the period |
- |
- |
- |
- |
- |
- |
(593,914) |
- |
- |
(593,914) |
Other comprehensive income |
- |
- |
- |
(353,970) |
- |
- |
- |
- |
- |
(353,970) |
Issue of share capital |
802,467 |
- |
- |
- |
- |
- |
(452,467) |
- |
- |
350,000 |
Conversion of CLN |
172,413 |
4,578 |
- |
- |
- |
(21,160) |
- |
- |
- |
155,831 |
Embedded derivative on CLN issue |
- |
- |
- |
- |
- |
208,532 |
- |
- |
- |
208,532 |
Share based payments |
- |
- |
- |
- |
- |
- |
69,632 |
- |
- |
69,632 |
|
|
|
|
|
|
|
|
|
|
|
At |
18,240,259 |
17,307,737 |
2,350,175 |
(421,244) |
(268,442) |
3,677,993 |
(41,183,154) |
504,646 |
- |
207,970 |
NOTES FORMING PART OF THE INTERIM REPORT
1. GENERAL INFORMATION AND BASIS OF PRESENTATION
General information
Active Energy Group plc is a company incorporated in
Basis of preparation
The financial information in these interim results is that of the holding company and all of its subsidiaries. It has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended
The financial information presented herein does not constitute full statutory accounts under Section 434 of the Companies Act 2006 and was not subject to a formal review by the auditors. The financial information in respect of the year ended 31 December 2019 has been extracted from the statutory accounts which have been delivered to the Registrar of Companies. The Group's Independent Auditor's report on those accounts was unqualified and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The auditor's report on those accounts included a reference to the going concern assumptions detailed in the notes to those accounts, whereby the auditor drew attention to this note by way of emphasis of matter. The auditor did not qualify their report in respect of this matter. The financial information for the half years ended 30 June 2019 and 30 June 2020 is unaudited and the twelve months to 31 December 2019 is audited.
These interim accounts have been prepared in accordance with IAS 34.
Going concern
Historically, the Group's primary revenue generating business segment was the Ukrainian wood fibre business. This was discontinued during 2017 and the group's emphasis shifted toward development of the CoalSwitch™ business segment. In Q1 2019 AEG purchased an industrial site in
On 31 March 2020 AEG announced that it had acquired a 100% interest in the
The Directors have considered the cash requirements of the business for the following 12 months. As part of this process, they have taken into account existing liabilities, along with detailed operating cash flow requirements. The projections prepared include ongoing running costs of the Group and committed expenditure at the date of approving the financial statements.
The Directors note that the current operational plans involve the ramp up of sawmill production and saw log exports during 2020 as well as commencement of CoalSwitch™ operations during the first half of 2021. The Directors have considered the potential impact of the Covid-19 pandemic on the Group and noted that that the business has continued to operate during "lockdown" periods.
Taking this into account and following a detailed review by the Directors of the Group's cash flow requirements, the Directors believe that, based on current cash resources and the expected operating performance of the wood processing business, the Group will have sufficient cash resources to continue to trade for a period of at least 12 months from the date of issue of the interim financial statements. Consequently, the financial statements have been prepared on a going concern basis.
However, as of the date of signing these financial statements, the wood processing business is still in the ramp-up phase and therefore the Company does not have a significant period of operating history on which to rely. In addition, the potential impact of the Covid-19 pandemic on the Group is not fully known. Therefore, whilst the Directors have strong reasons to believe that the Group will continue to trade for a period of at least 12 months from the date of issue of the interim financial statements; these circumstances indicate the existence of a material uncertainty which may cast significant doubt on the Company's ability to continue as a going concern.
Basis of consolidation
The financial information incorporates the results of AEG and entities controlled by the AEG (its subsidiaries). Control is achieved when the Group has power over relevant activities, is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The consolidated interim financial statements present the financial results of AEG plc and its subsidiaries (the Group) as if they formed a single entity. Where necessary, adjustments are made to the results of subsidiaries to bring the accounting policies used into line with those used by the Group. All intra-Group transactions, balances, income and expenses are eliminated on consolidation.
2. SEGMENTAL INFORMATION
The Group reports two operating continuing business segments:
· "Forestry & Natural Resources" denotes the Group's initiatives to secure ownership of the entire timber supply chain from forest to finished product.
· "CoalSwitch™"denotes the Group's renewable wood pellet and soil replacement business.
· "Wood processing and export" denotes the Group's sawmill and saw log export activities.
Factors that management used to identify the Group's reportable segments
The Group's reportable segments are strategic business units that offer different products. During the business development stage, they are managed separately because each business operates in different markets and locations. In future these business segments may be combined into single operations and reporting structures will be revisited accordingly.
For the 6 months to 30 June 2020 (Unaudited) |
Wood processing & export |
Forestry & Natural Resources |
CoalSwitch™ |
Total |
|
US$ |
US$ |
US$ |
US$ |
Revenue from external customers1 |
382,659 |
- |
- |
382,659 |
Operating segment (loss)/profit |
(210,986) |
17,940 |
(48,664) |
(241,710) |
Segment (loss)/profit before tax |
(210,986) |
17,940 |
(48,664) |
(241,710) |
Tax credit |
- |
15,099 |
- |
15,099 |
Segment (loss)/profit for the period |
(210,986) |
33,039 |
(48,664) |
(226,611) |
1.Revenue does not match the income statement due to rental income shown in reconciliation of reportable segments to operating profit below.
|
||||
For the 6 months to 30 June 2019 (Unaudited) |
Wood processing & export |
Forestry & Natural Resources |
CoalSwitch™ |
Total |
|
US$ |
US$ |
US$ |
US$ |
Revenue from external customers |
- |
- |
99,830 |
99,830 |
Operating segment loss |
- |
(14,731) |
(679,377) |
(694,108) |
Segment profit/(loss) before tax |
- |
(14,731) |
(679,377) |
(694,108) |
Tax credit |
- |
4,484 |
- |
4,484 |
Segment loss for the period |
- |
(10,247) |
(679,377) |
(689,624) |
|
|
|
|
|
For the 12 months to 31 December 2019 (Audited) |
Wood processing & export |
Forestry & Natural Resources |
CoalSwitch™ |
Total |
|
US$ |
US$ |
US$ |
US$ |
Revenue from external customers |
- |
- |
1,717,676 |
1,717,676 |
Operating segment (loss)/profit |
- |
(150,991) |
992,889 |
841,898 |
Segment (loss)/profit before tax |
- |
(150,991) |
992,889 |
841,898 |
Tax credit |
- |
30,198 |
842,362 |
872,560 |
Segment (loss)/profit for the period |
- |
(120,793) |
1,835,251 |
1,714,458 |
1. CoalSwitch™ revenues in 2019 relate to engineering consultancy services.
Capital expenditure relating to the wood processing segment was US$708,958 (H1 2019: US$Nil) reflecting the acquisition of a sawmill via a finance lease arrangement and yard improvement works. Capital expenditure relating to the CoalSwitch™ segment was US$433,540 (H1 2019: US$3,685,701) reflecting the acquisition of the Lumberton Site in 2019. Capital expenditure relating to the Forestry and natural resource segment was US$144,679 (H1 2019: US$111,638).
Reconciliation of reportable segment profit or loss, assets and liabilities to the Group's corresponding amounts are as follows:
|
6 months ended 30 June 2020 (unaudited) |
6 months ended 30 June 2019 (unaudited) |
Year ended 31 December 2019 (audited) |
|
US$ |
US$ |
US$ |
Total (loss)/profit from reportable segments |
(226,611) |
(689,624) |
1,714,458 |
Unallocated amount - corporate expenses |
(528,145) |
(651,045) |
(1,532,750) |
Unallocated amount - finance income/(expense) |
111,844 |
(290,387) |
(2,461,376) |
Share based payments |
(69,631) |
(238,743) |
(368,850) |
Unallocated amount - taxes |
1,395 |
- |
- |
Unallocated amount - other income |
117,234 |
39,772 |
178,296 |
Loss for the period |
(593,914) |
(1,830,027) |
(2,670,222) |
1. The positive figure in unallocated amount - finance income/(expense) relates to foreign exchange movements on intercompany accounts.
3. LOSS PER SHARE
|
6 months to 30 June 2020 |
6 months to 30 June 2019 |
12 months to 31 December 2019 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
US$ |
US$ |
US$ |
Weighted average ordinary shares in issue |
1,239,618,243 |
1,201,906,951 |
1,201,906,951 |
Loss from continuing operations |
(593,914) |
(1,830,027) |
(2,470,222) |
(Loss)/profit per share (US cent) - discontinued operations |
- |
- |
- |
Loss attributable to the Parent Company |
(593,914) |
(1,830,027) |
(2,470,222) |
Loss per share (US cent) - continuing operations |
(0.05) |
(0.15) |
(0.21) |
(Loss)/profit per share (US cent) - discontinued operations |
- |
- |
- |
Basic and Diluted loss per share (US cent) |
(0.05) |
(0.15) |
(0.21) |
4. ACQUISITION OF WOOD PROCESSING AND EXPORT BUSINESS
On 31 March 2020, AEG announced that it had entered into an agreement with its joint venture partner Renewable Logistics Systems LLC ("RLS"), whereby AEG acquired RLS's joint venture interest in RES and thereby secured 100% control and ownership of the sawmill and saw log export activities based at AEG's industrial site in
5. CONVERTIBLE LOAN NOTES
On 22 June 2020, the Company announced that it had raised £0.8 million before expenses through the issue of convertible loan notes ('CLNs') to new and existing investors. These monies, which are being applied to the development of AEG's wood processing and export activities and working capital requirements, were received in July 2020. The CLNs have a maturity date of 14 March 2022 and have been listed on the International Securities Exchange. The CLN can be converted into ordinary shares of AEG plc, at any time prior to the Maturity Date, at a conversion price of 1p per share. The fair value of the liability component at inception was £0.169 million (or US$0.209 million). This was calculated using a market interest rate for an equivalent instrument without conversion option. The CLN has a coupon rate of 8% and the imputed interest rate applied was 12%.
6. SHARE CAPITAL
Ordinary shares of 1p each Allotted, called up and fully paid (Audited) |
Number |
US$ |
At 1 January 2019 and 31 December 2019 |
1,201,906,951 |
17,265,379 |
|
|
|
(Unaudited) |
Number |
US$ |
At 1 January 2020 |
1,201,906,951 |
17,265,379 |
Shares issued to purchase Lumberton Wood Business |
64,863,412 |
802,467 |
Conversion of CLN |
13,537,400 |
172,413 |
At 30 June 2020 |
1,280,307,763 |
18,240,259 |
7. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH OUTFLOWS FROM OPERATING ACTIVITIES
|
|
30 June 2020 |
|
30 June 2019 |
|
31 December 2019 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
US$ |
|
US$ |
|
US$ |
Loss for the period |
|
(593,914) |
|
(1,830,027) |
|
(2,470,222) |
Adjustments for: |
|
|
|
|
|
|
Share based payment expense |
|
69,631 |
|
238,743 |
|
368,850 |
Depreciation |
|
17,547 |
|
18,000 |
|
66,055 |
Amortisation of intangibles |
|
75,495 |
|
14,731 |
|
150,991 |
Loss on disposal of PP&E |
|
- |
|
- |
|
678,803 |
Revaluation of investments for resale |
|
- |
|
366,507 |
|
- |
Foreign currency translations |
|
(1,525,962) |
|
(53,882) |
|
612,747 |
Finance expenses |
|
1,342,390 |
|
613,017 |
|
1,744,188 |
Income tax |
|
(16,494) |
|
(2,946) |
|
122,731 |
|
|
(631,307) |
|
(635,857) |
|
1,274,143 |
Increase in inventories |
|
(103,702) |
|
- |
|
- |
Decrease in trade and other receivables |
|
491,067 |
|
333,139 |
|
557,595 |
Increase/(Decrease) in trade and other payables |
|
71,904 |
|
(312,701) |
|
(155,907) |
Net cash (outflow)/inflow from operating activities |
|
(172,038) |
|
(615,419) |
|
1,675,831 |
8. COPIES OF THE INTERIM REPORT
Copies of the interim report will be made available on the Company's website at www.aegplc.com.
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