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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Atlantis Resources | LSE:ARL | London | Ordinary Share | SG9999011118 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 35.75 | 35.00 | 36.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMARL
RNS Number : 2772L
Atlantis Resources Limited
30 September 2016
30 September 2016
ATLANTIS RESOURCES LIMITED
("Atlantis", the "Company" or the "Group")
Interim Results
Atlantis Resources Limited, a vertically integrated turbine supplier and project owner in the tidal power industry, is pleased to announce its unaudited Interim Results for the six months to 30 June 2016.
Highlights
Financial highlights
-- Atlantis Resources Limited, in line with the requirements of International Accounting Standards 21, has amended its functional and presentation currency to GBP and today presents its first financial report in GBP.
-- The consolidated group cash position at 30 June 2016 was GBP13.2 million (31 December 2015; GBP12.3 million), including GBP7.7 million held at MeyGen (31 December 2015; GBP7.9 million).
-- Group total equity increased to GBP103.1 million over the six-month period (31 December 2015; GBP91.7 million).
-- In April 2016 Atlantis raised GBP6.5 million before expenses from new and existing shareholders to fund project development activities across the Atlantis portfolio and to secure opportunities for portfolio growth.
MeyGen Project
-- Significant progress made on the project in the reporting period, which has continued post period end.
-- All grid connection works completed and energisation to the local distribution network took place in June. Post period end, all electrical equipment has been installed and commissioning completed in the onshore converter building.
-- Signed an Active Network Management agreement with a local 9.2MW wind farm in July to allow for better utilisation of the network, allowing capacity to be released for the wind farm onto the network during slack tides.
-- Fabrication of the Turbine Support Structures ("TSS") was completed at Nigg Energy Park and fabrication of the TSS ballast blocks was completed at JGC.
-- All detailed design works were completed for offshore installation tools and seafastenings and on the completion of the DEME transaction, Geosea was appointed to install all the turbine support structures, ballast blocks and one turbine.
-- During the reporting period the first AHH turbine nacelle was delivered to Scotland and assembly works commenced with completion post period end. Also subsequent to 30 June we received the second AHH turbine nacelle and components at Nigg for assembly. The Atlantis turbine underwent assembly and completed drive train testing at OREC during the period and has since been transported to Nigg for preparation for deployment.
-- In mid-September the Geosea jack up barge, the Neptune, arrived at Nigg and commenced preparations for equipment mobilisation.
-- In September 2016 we welcomed Nicola Sturgeon, First Minister of Scotland, to officially unveil the MeyGen Project, the world's largest tidal stream power project, at a ceremony held at the Nigg Energy Park in Scotland
-- The company looks forward to updating the market periodically throughout Q4 2016 on construction progress
Corporate
-- In April 2016 the Group announced a partnership agreement with Equitix, a market leading developer, investor and fund manager of infrastructure assets. Under this agreement, Atlantis and Equitix will work together to advance Atlantis's portfolio of tidal power projects in Scotland, which represent a combined potential capacity of almost 650MW. Equitix intends to acquire at least 25% of each Atlantis project vehicle at financial close of that project.
-- In April 2016 Atlantis announced an agreement in principle to sell a minority stake in TPSL to DEME Concessions NV, a member of the DEME Group, ("DEME"). Under this agreement, DEME agreed to pay Atlantis GBP2 million in cash consideration for a 2% stake in TPSL and a right to contribute equity funding to the Sound of Islay project. The deal was completed in August 2016.
-- In April 2016 Atlantis announced that it had entered into a memorandum of understanding with SBS, a privately owned international marine, subsea and renewable energy developer to establish a joint venture to develop a 150MW tidal stream site in Indonesia.
-- In May 2016 Atlantis completed the acquisition of Scottish tidal project assets from ScottishPower Renewables (UK) Limited ("SPR") in exchange for a stake in the Company's wider development portfolio, TPSL, which is the holder of the Company's Scottish development portfolio, including an 83% shareholding in the 398MW MeyGen project. As a result of the transaction, TPSL has acquired development rights for an additional 110MW of projects in Scotland, including the seabed rights, grid access and consents for the 10MW Sound of Islay project.
Tim Cornelius, Chief Executive of Atlantis, commented:
"The first half of 2016 has been full of positive developments for Atlantis and it is extremely exciting to see the first phase of the world's flagship project, MeyGen, progressing towards first power in the second half of the year. Our team's efforts were recognised and rewarded when we welcomed the First Minister of Scotland and the Minister for Business, Innovation and Energy to Nigg Energy Park for the official unveiling of MeyGen in September.
"In addition, the first half of 2016 has seen us close ground breaking deals for Atlantis, strengthening our offerings across all of our key areas of business including project development, project financing, project delivery and operation. We welcome leading utility ScottishPower Renewables, leading infrastructure fund Equitix and world renowned offshore contractor DEME as key partners to Atlantis and we look forward to working with them to build out our extensive tidal power project portfolio across the United Kingdom."
Enquiries: Atlantis Resources +44 (0)20 3727 1898 Tim Cornelius, Chief Executive Officer Simon Counsell, Chief Financial Officer Peel Hunt LLP (Nominated Adviser and Broker) +44 (0)20 7418 8900 Adrian Trimmings Jock Maxwell Macdonald Euan Brown FTI Consulting +44 (0)20 3727 1898 Ben Brewerton Alex Beagley James Styles
CHAIRMAN'S STATEMENT
February 2016 marked the second anniversary of Atlantis's transition to a public company, and we have continued in the pioneering spirit which saw us become the first listed tidal power company back in 2014.
Our flagship MeyGen project is progressing well towards commissioning later this year, with construction completed at the onshore building and the fit out and installation of the electrical equipment now in its final stages. We reached an important milestone in June with the energisation of our connection to the grid network in readiness for the export of tidally generated electricity. This followed over 25km of distribution network upgrades and one of the longest 33kV underground cable runs in the country, ensuring that visual impact was minimised. We were also delighted to announce that we had reached an agreement to allow a neighbouring onshore wind farm to access spare grid capacity when the full connection is not required by our project. We believe this is the first arrangement of its kind, and is testament to the uniquely predictable nature of the tidal resource, allowing other generators to know exactly when grid capacity will be available. This further demonstrates the advantages of tidal power and the important role it will play in Britain's future energy mix
The first of the turbines from Andritz Hydro Hammerfest was delivered to the Nigg Energy Park for final assembly in early July, just after this reporting period. The Atlantis turbine has now completed its rigorous onshore testing programme at the Offshore Renewable Energy Catapult's tidal turbine test facility in Blyth, Northumberland, and as I write this it is on its way up to Nigg for the fitting of the rotor and final pre-installation checks. The four giant steel foundation structures are also at the Nigg Energy Park, from where they will be loaded onto the installation vessel for deployment. They will be weighted down in position on the seabed by steel ballast blocks, to be delivered to the project site from nearby Scrabster Harbour.
Our wider portfolio of Scottish projects was strengthened in May with the completion of the acquisition of the Islay project and addition of ScottishPower Renewables (UK) Limited as a shareholder in our development vehicle, Tidal Power Scotland Limited (TPSL). This followed the news in April that DEME Concessions NV had agreed to invest in TPSL, paying GBP2 million for 2% of the company and a route to investment in the Islay project and later phases of MeyGen. Shortly prior to this, we had announced a new partnership agreement with Equitix, the multi-billion pound infrastructure investor, through which Equitix (via its managed funds) intends to acquire at least 25% of each Atlantis project vehicle at financial close of the relevant project. Together, these new relationships put us in our strongest position yet to ensure successful development of our portfolio and the tidal industry.
As we look forward to the installation of the MeyGen turbines over the coming months and the production of first power from our ground-breaking project, I share the team's excitement for the future and am full of admiration for all that has been achieved, and gratitude to all those who have contributed in so many ways to bring us to this watershed moment in the company's history. I look forward to working with our many stakeholders to take on the challenges and opportunities to establish tidal power as a long-term source of clean, renewable, and unobtrusive energy around the world.
SUMMARY OF RESULTS
The group's consolidated total assets increased significantly to GBP103.1 million at 30 June 2016 from GBP91.7 million at 31 December 2015, with the acquisition of the development rights for two tidal projects from ScottishPower Renewables valued by the Company at GBP6.6 million and capital expenditure on MeyGen Phase 1A.
Revenue for the six months to 30 June 2016 arising from third party consulting revenues was GBP0.2 million. Together with the capital raise from the market, grants and borrowings, total cash from financing activities for the period is GBP14.2 million. The unaudited consolidated cash position of the Atlantis group as at 30 June 2016 was GBP13.2 million.
John Mitchell Neill
Chairman
29 September 2016
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Condensed consolidated statement of profit and loss and other comprehensive
income
For the six months ended 30 June 2016
Group
Six months ended
30 June 30 June
Note 2016 2015
GBP'000 GBP'000
Revenue 235 462
Other gains and losses 7 645 678
Subcontractors costs (346) (246)
Depreciation and amortisation
expenses (824) (790)
Research and development
costs (144) (331)
Employee benefits expenses (2,456) (1,907)
Other operating expenses (973) (893)
--------- ---------
Total expenses (4,743) (4,167)
Loss from operating activities (3,863) (3,027)
Finance costs 8 (525) (624)
Share of results of equity-accounted
investee (50) -
Loss before tax (4,438) (3,651)
Income tax expense - (13)
Loss for the period (4,438) (3,664)
Other comprehensive income:
Items that may be reclassified
subsequently to profit
or loss
Exchange differences
on translation of foreign
operations (408) 910
--------- ---------
Total comprehensive income
for the period (4,846) (2,754)
========= =========
Loss attributable to:
Owners of the Group (4,438) (3,706)
Non-controlling interest - 42
--------- ---------
(4,438) (3,664)
Total comprehensive income
attributable to:
Owners of the Group (4,846) (2,914)
Non-controlling interest - 160
--------- ---------
(4,846) (2,754)
========= =========
Loss per share (basic
and diluted) (pence) 15 (4.75) (4.11)
========= =========
Condensed consolidated statement of financial position
As at 30 June 2016
Group
30 June 31 December
Note 2016 2015
GBP'000 GBP'000
ASSETS
Property, plant and equipment 9 48,610 41,115
Intangible assets 10 36,322 30,960
Investment in joint venture 157 211
Loan to joint venture 1,147 910
Non-current assets 86,236 73,196
-------- -----------
Trade and other receivables 3,654 6,206
Cash and cash equivalents 11 13,228 12,268
Current assets 16,882 18,474
-------- -----------
Total assets 103,118 91,670
======== ===========
LIABILITIES
Trade and other payables 12 5,761 8,477
Provisions 1,955 2,036
Loans and borrowings 13 2,471 2,128
Current liabilities 10,187 12,641
-------- -----------
Loans and borrowings 13 23,268 17,451
Deferred tax liabilities 3,830 3,830
-------- -----------
Non-current liabilities 27,098 21,281
-------- -----------
Total liabilities 37,285 33,922
-------- -----------
Net assets 65,833 57,748
======== ===========
EQUITY
Share capital 91,129 84,918
Capital reserve 10,143 5,709
Translation reserve 6,907 7,315
Option fee 6 6
Share option reserve 14 3,218 3,078
Accumulated losses (52,388) (47,950)
Total equity attributable
to owners of the Company 59,015 53,076
Non-controlling interests 6,818 4,672
-------- -----------
Total equity 65,833 57,748
======== ===========
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2016
Attributable to owners of the Company
---------------------------------------------------------------
Share Non-
Share Capital Translation Option option Accumulated controlling
capital reserve reserve fee reserve losses Total interest Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Group
At 1 January
2015 78,483 5,486 7,232 6 2,206 (50,052) 43,361 4,135 47,496
------------------- -------- -------- ----------- ------- -------- ----------- ------- ------------ -------
Total comprehensive
income for the
period
Loss for the
period - - - - - (3,706) (3,706) 42 (3,664)
Other comprehensive
income - - 792 - - - 792 118 910
------------------- -------- -------- ----------- ------- -------- ----------- ------- ------------ -------
Total comprehensive
income for the
period - - 792 - - (3,706) (2,914) 160 (2,754)
Transactions
with owners,
recognised directly
in equity
Contributions
by and
distributions
to owners
------------------- -------- -------- ----------- ------- -------- ----------- ------- ------------ -------
Recognition of
share-based
payments - - - - 196 - 196 - 196
Changes in
ownership
interest in
subsidiary
Dilution of
interest
in a subsidiary
without change
in control - 624 - - - - 624 290 914
Total transactions
with owners - 624 - - 196 - 820 290 1,110
-------- -------- ----------- ------- -------- ----------- ------- ------------ -------
At 30 June 2015 78,483 6,110 8,024 6 2,402 (53,758) 41,267 4,585 45,852
======== ======== =========== ======= ======== =========== ======= ============ =======
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2016
Attributable to owners of the Company
---------------------------------------------------------------
Share Non-
Share Capital Translation Option option Accumulated controlling
capital reserve reserve fee reserve losses Total interest Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Group
At 1 January
2016 84,918 5,709 7,315 6 3,078 (47,950) 53,076 4,672 57,748
--------------------- -------- -------- ----------- ------- -------- ----------- ------- ------------ -------
Total comprehensive
income for the
period
Loss for the
period - - - - - (4,438) (4,438) - (4,438)
Other comprehensive
income - - (408) - - - (408) - (408)
--------------------- -------- -------- ----------- ------- -------- ----------- ------- ------------ -------
Total comprehensive
income for the
period - - (408) - - (4,438) (4,846) - (4,846)
Transactions
with owners,
recognised directly
in equity
Contributions
by and distributions
to owners
--------------------- -------- -------- ----------- ------- -------- ----------- ------- ------------ -------
Issuance of shares 6,211 - - - - - 6,211 - 6,211
Recognition of
share-based payment - - - - 140 - 140 - 140
Changes in ownership
interest in
subsidiary
Dilution of interest
in a subsidiary
without change
in control - 4,434 - - - - 4,434 2,146 6,580
--------------------- -------- -------- ----------- ------- -------- ----------- ------- ------------ -------
Total transactions
with owners 6,211 4,434 - - 140 - 10,785 2,146 12,931
-------- -------- ----------- ------- -------- ----------- ------- ------------ -------
At 30 June 2016 91,129 10,143 6,907 6 3,218 (52,388) 59,015 6,818 65,833
======== ======== =========== ======= ======== =========== ======= ============ =======
Condensed consolidated statement of cash flows
For the six months ended 30 June 2016
Group
Six months ended
30 June 30 June
Note 2016 2015
GBP'000 GBP'000
Cash flows from operating
activities
Loss before tax for the
period (4,438) (3,651)
Adjustments for:
Depreciation of plant and
equipment 35 12
Amortisation of intangible
asset 789 778
Interest income (61) -
Finance costs 8 525 624
Share-based payments 140 196
Provision movement (41) -
Share of results of equity-accounted
investee 50 -
Grant income (191) (397)
Net foreign exchange loss (111) (82)
Operating cash flows before
movements in working capital (3,303) (2,520)
Movement in trade and other
receivables (28) (604)
Movement in trade and other
payables 100 (398)
Net cash used in operating
activities (3,231) (3,522)
-------- --------
Investing activities
Purchase of property, plant
and equipment (9,629) (7,883)
Expenditure on project development (175) (1,027)
Net cash used in investing
activities (9,804) (8,910)
-------- --------
Financing activities
Proceeds from grants received 3,046 4,052
Proceeds from borrowings 4,823 5,500
Deposits released 231 848
Proceeds from issue of shares 6,538 -
Costs related to fundraising (327) -
Non-controlling interest - 914
-------- --------
Net cash from financing
activities 14,311 11,314
-------- --------
Net increase/(decrease)
in cash and cash balances 1,276 (1,118)
Cash and cash equivalents
at beginning of period 10,182 12,268
Effect of foreign exchange
rate changes on the balance
of cash held in foreign
currencies (85) 372
-------- --------
Cash and cash equivalents
at end of period 11 11,373 11,522
======== ========
Notes to the Consolidated Interim Financial Statements
The condensed consolidated statement of financial position of Atlantis Resources Limited (the "Company") and its subsidiaries (the "Group") as at 30 June 2016, the condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the Group for the six-month period then ended and certain explanatory notes (the "Consolidated Interim Financial Statements"), were approved by the Board of Directors for issue on 29 September 2016.
These notes form an integral part of the Consolidated Interim Financial Statements.
The Consolidated Interim Financial Statements do not comprise statutory accounts of the Group within the meaning in the provisions of the Singapore Companies Act, Chapter 50. The Group's statutory accounts for the year ended 31 December 2015 were prepared in accordance with the provisions of the Singapore Companies Act and International Financial Reporting Standards ("IFRS"). The Group's statutory accounts were approved by the Board of Directors on 26 May 2016 and have been reported by the Group's auditors.
1. Domicile and activities
Atlantis Resources Limited is incorporated in the Republic of Singapore with its registered office at 80 Raffles Place, level 36, Singapore 048624.
The principal activity of the Group is that of pioneering the development of tidal current power as the most reliable, economic and secure form of renewable energy. The Company is an inventor, developer, owner, marketer and licensor of technology, intellectual property, trademarks, products and services, and an investment holding company
2. Basis of preparation
1. Statement of compliance
The Consolidated Interim Financial Statements have been prepared in accordance with International Accounting Standard ("IAS") 34 - Interim Financial Reporting ("IAS 34").
Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the last annual consolidated financial statements as at and for the year ended 31 December 2015.
The Consolidated Interim Financial Statements, which do not include the full disclosures of the type normally included in a complete set of financial statements, are to be read in conjunction with the last issued consolidated financial statements of the Group as at and for the year ended 31 December 2015
2. Changes in functional and presentation currencies
Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency").
In prior years, the Company regarded Singapore dollar ("SGD") as its functional currency. However, as a result of the relocation of the Group's corporate headquarters from Singapore to Edinburgh, the management concluded that SGD can no longer be its functional currency. As such, effective from 1 January 2016, the Company and two of its subsidiaries Atlantis Projects Pte Ltd and Atlantis Turbines Pte Ltd have changed their functional currencies from SGD to Great Britain Pounds ("GBP"). GBP has also been adopted as the presentational currency of the Group's consolidated interim financial statements.
The change in functional currency of the Company was applied prospectively from date of change in accordance with IAS 21 The Effect of Changes in Foreign Currency Exchange Rate. On the date of the change of functional currency, all assets, liabilities, issued capital and other components of equity and profit and loss account items were translated into GBP at the exchange rate on that date.
The change in presentation currency of the Group has been applied retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, and the comparative figures as at 31 December 2015 and for the period ended 30 June 2015 have also been restated to GBP accordingly.
The changes in functional and presentation currencies have no significant impact on the financial positions of the Group as at 31 December 2015 and 30 June 2016, or the results and cash flow of the Group for the periods ended 30 June 2015 and 2016
3. Significant accounting policies
Except for the new and revised IASs effective for the financial year beginning 1 January 2016 adopted during the six-months period ended 30 June 2016, the accounting policies and method of computation used in the Consolidated Interim Financial Statements are consistent with those applied in the last issued consolidated financial statements of the Group for the year ended
31 December 2015.
The adoption of the new and revised IASs for the financial year beginning 1 January 2016 does not have a significant effect on the Consolidated Interim Financial Statements.
New standards, amendments to standards and interpretations that are not effective for the six months ended 30 June 2016 have not been applied in preparing these Consolidated Interim Financial Statements. Except as otherwise indicated below, those new standards, amendments to standards and interpretations are not expected to have a significant effect on the Consolidated Interim Financial Statements. The Group does not plan to adopt these standards early.
-- IFRS 15 Revenue from Contracts with Customers
IFRS 15 Revenue from Contracts with Customers will replace IAS 18 Revenue, IAS 11 Construction Contracts and Related Interpretations. The standard establishes the principle for companies to recognise revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled to in exchange for those goods or services. The new standard will also result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed (e.g. service revenue and contract modifications) and improved guidance for multi-element arrangements. The Group is currently assessing the impact of adopting this standard in financial year ending 31 December 2018.
-- IFRS 9 Financial Instruments
IFRS 9 Financial Instruments replaces most of the existing guidance in IAS 39 Financial Instruments: Recognition and Measurement. It includes revised guidance on classification and measurement of financial instruments, a new expected credit loss model for calculating impairment on financial assets, and new general hedge accounting requirements.
-- IFRS 16 Leases
The new leases standard establishes the principles that entities would apply to report information to users of the financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The new standards will require a lessee to recognise assets and liabilities arising from a lease on its balance sheet.
Management is currently evaluating the impact of the implementation of these standards, in view of the complexities and the potential wide-ranging implications.
4. Critical accounting judgements and key sources of estimation uncertainty
The preparation of Consolidated Interim Financial Statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing this set of Consolidated Interim Financial Statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2015.
5. Going concern basis
The Group meets its day to day working capital requirements through shareholders' funding, loans and grants. 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 the Consolidated Interim Financial Statements.
6. Seasonality of operations
The Group's businesses were not affected significantly by seasonal or cyclical factors during the financial period.
7. Other gains and losses
30 June 30 June
2016 2015
GBP'000 GBP'000
Grant income 191 397
Other income 282 199
Interest income 61 -
Net foreign exchange gains 111 82
645 678
======= =======
8. Finance costs
30 June 30 June
2016 2015
GBP'000 GBP'000
Interest expense arising
from:
* related party loans - 246
* long term loan - 245
* secured long term loans 525 133
525 624
======= =======
9. Property, plant and equipment
During the period, a further GBP7,325,000 (2015: GBP19,951,000) of expenditure related to the development of the MeyGen tidal power project at the Inner Sound of the Pentland Firth off the coast of Scotland was capitalised and an aggregate of GBP451,000 (2015: GBP11,060,000) of grants were drawn down. Included in the capitalised development costs is an amount of GBP812,000 (2015: GBP696,000) that represents borrowing costs capitalised during the period. The project is progressing according to plan and management estimates the recoverable amount of property, plant and equipment and intangible assets to be higher than the carrying amount such that no impairment was required.
10. Intangible assets
On-going development costs related to the Group's tidal turbine development programme, in particular expenditure on the detailed design of and system integration for the Group's AR1500 turbine amounted to GBP175,000 (2015: GBP1,200,000) for the period.
On 6 May 2016, Atlantis completed the acquisition of Scottish tidal project assets from ScottishPower Renewables (UK) Limited ("SPR") in exchange for a stake in the group's wider development portfolio. Accordingly, as consideration for the acquisition, Tidal Power Scotland Limited ("TPSL"), the group's Scottish tidal project portfolio company, issued new ordinary shares to SPR resulting in a shareholding for SPR of 6% of the enlarged share capital of TPSL. The value ascribed to the assets was GBP6.6 million. As a result of the transaction, which was agreed in December 2015, TPSL has acquired development rights for an additional 110MW of projects in Scotland, including the seabed rights, grid access and consents for the 10MW Sound of Islay project.
11. Cash and cash equivalents
30 June 31 December
2016 2015
GBP'000 GBP'000
Cash at bank 11,294 10,122
Fixed deposits 1,856 2,086
Cash on hand 78 60
------- -----------
Cash and cash equivalents in
the statements of financial
position 13,228 12,268
Less: Encumbered deposits (1,855) (2,086)
Cash and cash equivalents in
the statement of cash flows 11,373 10,182
======= ===========
The encumbered deposits served as collateral on behalf of MeyGen Limited, in support of the provision of bank guarantees and standby letters of credit as required under the terms of MeyGen's seabed lease and to secure the MeyGen project's electricity transmission capacity.
12. Trade and other payables
30 June 31 December
2016 2015
GBP'000 GBP'000
Trade payables 2,273 3,789
Other payables 110 263
Accruals 2,995 4,074
Advanced receipts 383 351
------- -----------
5,761 8,477
======= ===========
13. Loans and borrowings
30 June 31 December
2016 2015
GBP'000 GBP'000
Current loans and borrowings
Secured bridging loan from
non-controlling interest 2,471 2,128
Non-current loans and borrowings
Loans from a related party 3,885 3,805
Long term loan 3,933 3,763
Secured long term loans 15,450 9,883
------- -----------
23,268 17,451
------- -----------
Total loans and borrowings 25,739 19,579
======= ===========
During the period, a total of GBP4,823,000 of loans were drawn down. There were no changes in the terms and conditions of any of the loans detailed above, other than as described in note 20, and no covenants of any loans have been breached.
14. Share option reserve
During the period, 350,000 options to take up unissued shares of the Company was granted. No shares of the Company have been issued by virtue of the exercise of an option to take up unissued shares.
15. Loss per share
The calculation of loss per share is based on the loss after tax and on the weighted average number of ordinary shares in issue during each period
Weighted average
Loss after
tax number of shares Loss per share
30 June 30 June 30 June 30 June 30 June 30 June
2016 2015 2016 2015 2016 2015
GBP'000 GBP'000 '000 '000 pence pence
Basic and
diluted 4,438 3,664 93,352 89,204 4.75 4.11
======= ======= ======== ======== ======= =======
At 30 June 2016, share options were excluded from the diluted weighted average number of ordinary shares calculation as their effect would have been anti-dilutive.
16. Fair value measurements of financial instruments
Except as detailed in the following table, the directors consider the carrying amounts of the financial assets and financial liabilities recognised in the Consolidated Interim Financial Statements approximate their fair values
30 June 2016 31 December 2015
Carrying Fair Carrying Fair
Note value value value value
GBP'000 GBP'000 GBP'000 GBP'000
Financial liabilities
Secured long
term loans 13 15,450 19,713 9,883 12,976
======== ======= ========= =======
Fair value hierarchy
The table below analyses the fair value of financial instruments as disclosed, according to their levels in the fair value hierarchy. It does not include fair value information of instruments if the carrying amount is a reasonable approximation of fair value. The different levels have been defined as follows:
quoted prices (unadjusted) in active
* Level 1: markets for identical assets or liabilities;
inputs other than quoted prices included
* Level 2: within level 1 that are observable for
the asset or liability, either directly
(i.e. as prices) or indirectly (i.e.
derived from prices); and
inputs for the asset or liability that
* Level 3: are not based on observable market data
(unobservable inputs).
Level Level Level
1 2 3 Total
Group GBP'000 GBP'000 GBP'000 GBP'000
30 June 2016
Financial liabilities
Secured bridging
loan from non-controlling
interest - - 2,471 2,471
Loans from a related
party - - 3,885 3,885
Long term loan - - 3,933 3,933
Secured long term
loans - - 13,233 13,233
- - 23,522 23,522
========== ========== ========== ==========
31 December 2015
Financial liabilities
Secured bridging
loan from non-controlling
interest - - 2,128 2,128
Loans from a related
party - - 3,805 3,805
Long term loan - - 3,763 3,763
Secured long term
loans - - 12,976 12,976
- - 22,672 22,672
========== ========== ========== ==========
There were no transfers between levels in 2015 and 2016.
Estimating the fair value
The following summarises the significant methods and assumptions used in estimating the fair values of financial instruments of the Group.
Financial assets and liabilities
The notional amounts of financial assets and liabilities with a maturity of less than one year (including trade and other receivables, cash and cash equivalents, secured bridging loan from non-controlling interest and trade and other payables) are assumed to approximate their fair values. All other financial assets and liabilities are discounted to determine their fair values.
Valuation technique for financial instruments not carried at fair value but for which fair values are disclosed:
Type Valuation technique ----------------- --------------------------- Group Secured long term loans Discounted cash flow method 17. Related company and related party transactions
Other than those disclosed elsewhere in the Consolidated Interim Financial Statements, there were the following significant transactions with related parties during the period:
30 June 30 June
2016 2015
GBP'000 GBP'000
Interest income from a joint venture 61 -
Interest expense arising from related party
loans - 240
======= =======
Compensation of directors and key management personnel:
The remuneration of directors and other members of key management during the period are as follows:
30 June 30 June
2016 2015
GBP'000 GBP'000
Short term employee benefits 250 344
Defined contribution benefits 30 11
Share-based payments 88 196
======= =======
18. Segment information
(a) Operating segments
As at 30 June 2016, the Group is principally engaged in development of the MeyGen tidal current power project and the supply of a tidal power turbine to it. The assets, liabilities and capital expenditure of the Group are mainly employed in activities supporting the development of the tidal current power project, MeyGen, being the main reportable segment within the Group.
Currently, the Group is principally engaged in the development of the tidal current power projects and the supply of tidal power turbines to these projects, which are its reportable segments in 2016. These divisions are managed separately because they require different expertise and marketing strategies.
The Board of Directors, who are the chief operating decision makers, review internal management reports of each division regularly, in relation to the capital expenditure, resources allocation and funding availability of the projects.
The other operation is the provision of corporate services which does not meet any of the quantitative thresholds for determining reportable segments in 2016 and 2015.
There are varying levels of integration between the power generation and turbine and engineering services divisions, including the delivery of a turbine from the turbine and engineering services to the power generation division.
Information regarding the results of each reportable segment is included below
Six months ended 30 Turbine
June 2016 and engineering
Power generation services Total
GBP'000 GBP'000 GBP'000
External revenues - 235 235
================ ================ =======
Inter-segment revenue - 2,141 2,141
Interest revenue - 14 14
Interest expense - (412) (412)
Depreciation and amortisation - (367) (367)
Reportable segment
loss before tax (88) (4,832) (4,920)
================ ================ =======
There was no comparable segment reporting for the six months ending 30 June 2015, as there were no reportable segments during this period.
At 30 June 2016 Turbine
and engineering
Power generation services Total
GBP'000 GBP'000 GBP'000
Reportable segment assets 65,517 26,904 92,421
Capital expenditure 8,133 179 8,312
Reportable segment liabilities 24,582 28,712 54,294
================ ================ =======
At 31 December 2015
Reportable segment assets 53,312 18,781 72,093
Capital expenditure 19,951 1,205 21,156
Reportable segment liabilities 25,041 22,556 47,597
====== ====== ======
(b) Reconciliation of reportable segment profit or loss
Six months ended 30 June 2016 GBP'000
Reportable segment loss before tax (4,920)
Unallocated amounts 532
Share of loss of equity-accounted investee (50)
-------
Consolidated loss before tax (4,438)
=======
19. Capital commitments
As at 30 June 2016, the Group had entered into contracts to construct a tidal power plant for GBP51.4 million (2015: GBP41.5 million), of which GBP36.1 million (2015: GBP27.9 million) had been incurred as at the reporting date. At 30 June 2016, the Group had other outstanding commitments under contracts for design and subcontract works for GBP1.9 million (2015: GBP2.7 million), pre-final investment decision costs of GBP0.3 million (2015: Nil) for the new site.
20. Events after the reporting period
a) In August 2016, DEME Concessions NV, a member of the DEME Group, ("DEME") completed its purchase of shares in Tidal Power Scotland Limited ("TPSL"). Under the terms of the agreement announced in April, DEME has paid GBP2 million in cash consideration to a wholly owned subsidiary of Atlantis for a 2% stake in TPSL. DEME will receive certain rights in respect of further equity funding at financial close of the Sound of Islay project and Phase 1C of the MeyGen project.
In addition, the DEME Group is now taking an active role in the MeyGen Phase 1A installation through DEME's subsidiary, Geosea NV ("GeoSea"), a specialist in complex offshore marine engineering projects. Geosea, will install with the jack-up vessel MV "Neptune" all heavy turbine foundation structures and some of the turbines for MeyGen Phase 1A.
b) On 17 August 2016, one of the subsidiaries, Atlantis Resources (Scotland) Limited entered into an agreement to extend the repayment terms of a bridging loan to 17 December 2016 at interest rate of 15% per annum. All other terms remain the same.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SDMSISFMSESU
(END) Dow Jones Newswires
September 30, 2016 02:02 ET (06:02 GMT)
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