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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Ath Resources | LSE:ATH | London | Ordinary Share | GB00B013H730 | ORD 0.5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.325 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMATH
RNS Number : 3652I
ATH Resources plc
14 June 2011
Press Release 14 June 2011
ATH Resources plc
("ATH" or the "Group")
Interim Results
ATH Resources plc (AIM:ATH), one of the UK's largest coal producers, reports its Interim Results for the six months ended 3 April 2011.
Highlights
-- New site at Netherton opened and fully operational -- Revenue of GBP33.9 million (2010: GBP34.4 million), on sales of 706,000 tonnes (2010: 776,000 tonnes) -- Operating profit before exceptional items up GBP2 million on the same period last year at GBP1.7 million (2010: loss GBP0.3 million) -- Average selling price increased to GBP48 per tonne (2010: GBP44 per tonne) helped offset the impact of rising gas oil prices and lower volumes -- Proved and probable reserves of 7.9 million tonnes (2010: year end 8.6 million tonnes), with planning applications for a further 300,000 tonnes submitted -- Net borrowings, including hire purchase of GBP15.9 million, remained steady from last year end at GBP34.5 million after investing GBP8 million in the Netherton site -- Development of the new site at Duncanziemere commences in August 2011 as planned -- Continued progress towards fulfilling legacy contracts
Commenting on the Interim Results, Alistair Black, Chief Executive of ATH, said: "Despite the challenges faced by the Group from rising gas oil prices and unexpected geological conditions at Glenmuckloch, underlying profit for the first six months was some GBP2 million better than the previous year at GBP1.7 million (2010: loss GBP0.3 million). With the Netherton site now fully developed the Board had expected a typically strong second half performance, however, current mining conditions at Muir Dean and the presence of heat affected coal at Netherton suggest volumes will now be lower than expected for the full year. In view of the above, the Board has decided to concentrate its mining effort on accessing higher quality, lower ratio coal. This has necessitated the write-off of a significant part of its work in progress balance and a reduced expectation for the year. The Group expects that the impact on sales volumes will be increasingly offset by improved selling prices as we move forward and, consequently, the Board remains confident in the medium and long term prospects for the business."
"We are still on track to fulfill the first of the Group's fixed price legacy contracts, which continue to restrict earnings, and look forward to further significant improvements to average selling prices once they have been completed."
- Ends -
For further information:
ATH Resources plc David Port, Executive Chairman Tel: +44 (0) 7836 693798 Alistair Black, Chief Executive Tel: +44 (0) 1302 760 462 www.ath.co.uk Seymour Pierce Ltd Sarah Jacobs / John Cowie (Nominated Tel: +44 (0) 207 107 8000 Adviser) Richard Redmayne / Katie Ratner (Broker) www.seymourpierce.com
Media enquiries:
Abchurch Sarah Hollins / Joanne Shears / Tel: +44 (0) 207 398 7729 Mark Dixon mark.dixon@abchurch-group.com www.abchurch-group.com
Chairman's Statement
The first six months of the year have been difficult with the Group facing a number of significant challenges. Although successfully opening its new site at Netherton in East Ayrshire, and achieving an improved operating profit, the impact of a significant rise in the price of gas oil, combined with the difficult geological conditions, particularly at Glenmuckloch, have had a detrimental impact on the Group's performance.
Revenue in the six months to 3 April 2011 was GBP33.9 million (2010: GBP34.4 million) on sales of 706,000 tonnes (2010: 776,000 tonnes).
Operating profit before exceptional items up GBP2 million on 2010 at GBP1.7 million (2010: loss GBP0.3 million).
Net borrowings were GBP34.5 million, similar to the end of the last financial year, after investing GBP8 million in opening the Netherton site.
Sales
Despite a fall in sales volumes, average selling prices improved to GBP48 per tonne (2010: GBP44 per tonne) reflecting both the strong sales of domestic coal and the rising international price of coal, which has risen by around 28 per cent since the beginning of October 2010. Forward market indices indicate that there will be a further strengthening of prices year-on-year.
The Group's legacy fixed price contracts, which accounted for 30 per cent of sales in the period, continue to constrain performance. However, in spite of lower levels of production than planned, the Group still remains on track to fulfil the first of these contracts by the end of March 2012, with the second being completed 12 months later. Thereafter, the remaining legacy contract will be supplied at around 300,000 tonnes per annum.
As previously reported, the Group has successfully negotiated new contracts or contract extensions to the electricity supply industry during the period at market related prices totalling 500,000 tonnes.
Production
The Group is approaching the end of operations at Glenmuckloch and Skares Road and whilst production at Skares Road is proceeding as expected, Glenmuckloch has, as previously reported, experienced difficult geological conditions. This has resulted in lower than expected remaining coal reserves and a much higher mining ratio during the final phase of production. The impact to both revenue and margins will continue for the remainder of this financial year as well as necessitating a write-off of associated work in progress of GBP2.1 million.
Muir Dean had been performing satisfactorily until production encountered a higher concentration of old workings which has reduced sales in recent weeks.
Development of the initial phase at Netherton is now complete and the site is expected to enter full production in the coming weeks. Plans to increase production in the second half to compensate for lost production at Glenmuckloch were hit by a higher than anticipated volume of heat affected coal encountered in the eastern wall. Production is now progressing westwards away from the heavily affected area but sales in the second half will be impacted and, as a result, expectations for the full year will not be achieved.
In view of the above, the Group has decided to concentrate on those areas of recoverable reserves which give rise to higher quality coals at lower mining ratios. As a result, the Group will be taking a more cautious view of its remaining reserves at its sites currently in production which will necessitate a write down of its work in progress balance by an additional GBP2 million.
In total this has created an exceptional write-off of GBP4.1 million in the six months to 3 April 2011 and a loss before tax from continuing operations of GBP3.6 million (2010: GBP1.9 million). At the end of the period the work in progress asset on the balance sheet stands at GBP4.4 million; this is GBP2.5 million lower than at the same time in 2010.
Gas oil prices
The price of gas oil rose by 35 per cent during the first half of the year; however the Group's hedging strategy limited the increase to 9 per cent compared to the average paid in the previous year.
Whilst prices in recent weeks have weakened slightly from their recent peak, the impact of the price rises will be more significant in the second half as all lower priced hedging contracts have now been fully utilised. Given the Group's high percentage of fixed price legacy contracts, which provide no adjustment for fuel prices, the Group has hedged over 50 per cent of its requirements for the second half in order to reduce the impact of any further rises in gas oil.
Site development
The Group has invested GBP8 million to date in opening up Netherton to plan and is in the process of making preparations for the opening of the Duncanziemere site. Excavations at Duncanziemere are expected to commence in the final quarter of the financial year with coal production commencing in autumn 2011 as planned.
In total the Group expects to invest in the region of GBP12 million this year in the development of these sites, with a further GBP3 million planned for the first quarter of next year. These sites will form the cornerstone of the Group's production for the next few years.
Development and reserves*
Planning applications for 300,000 tonnes have been submitted in respect of extensions to existing sites in the first six months.
Proved and probable reserves at 3 April 2011 amounted to 7,900,000 tonnes (at 3 October 2010: 8,600,000 tonnes). This is equivalent to in excess of four years' production.
Dividends
As announced in May 2011, the Group took the decision not to declare an interim dividend for the period (2010: 1 pence per share). However, the Board remains committed to delivering a progressive dividend to shareholders in the future.
Carbon Reduction Commitment
The Board of ATH believes that the Group does not qualify to be part of the Government's new Carbon Reduction Commitment Scheme ("CRCS") and decided not to register for the Scheme. However, the Department of Energy and Climate Change ("DECC") has subsequently issued ATH with an enforcement notice, asserting a failure to register as a participant in the first phase of the CRCS which the Group is appealing. Central to the issue is whether or not the electricity consumed by ATH's conveyor, which transports coal from its Glenmuckloch site to its railhead at New Cumnock some 12 Kilometres away, is exempt from CRCS. The outcome of this administrative appeal is likely to be known by late summer 2011.
Outlook
Full year sales volumes are now expected to be in the region of 1.7 million tonnes, some 90,000 tonnes lower than the same period last year. The improvement in selling prices will, in part, help offset this shortfall. The Group will continue with its strategy to supply existing legacy contracts to their earliest conclusion and to open the Duncanziemere site to support production in the next financial year.
The Group remains confident that, although expectations for the current year will not be achieved, the prospects remain encouraging for ATH, particularly as the Group will benefit significantly from improved revenues as the legacy contracts are fulfilled.
David Port
Executive Chairman
14 June 2011
Condensed consolidated income statement (unaudited)
for the six months ended 3 April 2011
Restated six months six months year ended ended ended 3 April 4 April 3 October 2011 2010 2010 Notes GBP000 GBP000 GBP000 Continuing operations Revenue 2 33,934 34,404 78,307 Cost of sales (27,777) (30,039) (62,520) -------------------------------- ------ ----------- ----------- ---------- Gross profit 6,157 4,365 15,787 Other operating income 3 2,054 16 73 Impairment of goodwill (1,650) - - Administrative expenses (4,860) (4,690) (8,906) -------------------------------- ------ ----------- ----------- ---------- Operating profit/(loss) before exceptional items 1,701 (309) 6,954 Exceptional operating items 4 (4,131) - - -------------------------------- ------ ----------- ----------- ---------- Operating (loss)/profit (2,430) (309) 6,954 Finance costs (1,195) (1,559) (2,966) -------------------------------- ------ ----------- ----------- ---------- (Loss)/profit before taxation (3,625) (1,868) 3,988 Taxation 5 473 513 (1,461) -------------------------------- ------ ----------- ----------- ---------- (Loss)/profit for the period from continuing operations (3,152) (1,355) 2,527 -------------------------------- ------ ----------- ----------- ---------- Discontinued operations Loss for the period from discontinued operations 6 - (518) (4,294) -------------------------------- ------ ----------- ----------- ---------- Loss attributable to ordinary shareholders (3,152) (1,873) (1,767) -------------------------------- ------ ----------- ----------- ---------- (Loss)/earnings per share From continuing and discontinued operations: Basic 7 (7.9)p (4.7)p (4.4)p Diluted (7.9)p (4.7)p (4.4)p From continuing operations: Basic (7.9)p (3.4)p 6.3p Diluted (7.9)p (3.4)p 6.2p Loss per share before exceptional items Basic (0.4)p (3.4)p 6.3p Diluted (0.4)p (3.4)p 6.2p
There are no recognised gains and losses other than as stated in the income statement.
Condensed consolidated balance sheet (unaudited)
As at 3 April 2011
Company number: 4928463
Restated 3 April 3 October 4 April 2011 2010 2010 GBP000 GBP000 GBP000 ------------------------------- --------- ---------- --------- ASSETS Non-current assets Goodwill 3,763 5,413 7,657 Property, plant and equipment 73,133 67,097 72,737 ------------------------------- --------- ---------- --------- 76,896 72,510 80,394 ------------------------------- --------- ---------- --------- Current assets Inventories 10,256 11,925 14,511 Trade and other receivables 10,648 11,257 8,247 Cash and cash equivalents 3,436 2,353 3,838 ------------------------------- --------- ---------- --------- 24,340 25,535 26,596 ------------------------------- --------- ---------- --------- Total assets 101,236 98,045 106,990 ------------------------------- --------- ---------- --------- LIABILITIES Current liabilities Trade and other payables (14,323) (11,227) (12,886) Tax liabilities - (407) - Financial liabilities (9,057) (6,335) (6,786) Final void provision (1,731) (2,315) (3,437) ------------------------------- --------- ---------- --------- (25,111) (20,284) (23,109) ------------------------------- --------- ---------- --------- Non-current liabilities Financial liabilities (28,669) (30,309) (37,765) Final void provision (20,859) (16,498) (14,011) Deferred tax liabilities (2,752) (3,254) (3,644) Other provisions - - (338) ------------------------------- --------- ---------- --------- (52,280) (50,061) (55,758) ------------------------------- --------- ---------- --------- Total liabilities (77,391) (70,345) (78,867) ------------------------------- --------- ---------- --------- Net assets 23,845 27,700 28,123 ------------------------------- --------- ---------- --------- EQUITY Share capital 200 200 200 Share premium 27,855 27,855 27,855 Retained earnings (4,210) (355) 68 ------------------------------- --------- ---------- --------- Total equity 23,845 27,700 28,123 ------------------------------- --------- ---------- ---------
Condensed consolidated statement of changes in equity
for the six months ended 3 April 2011
Called Total up Share equity share premium Retained shareholders' capital account earnings funds GBP000 GBP000 GBP000 GBP000 ------------------------------- -------- -------- --------- -------------- At 4 October 2009 200 27,855 4,205 32,260 ------------------------------- -------- -------- --------- -------------- Loss for the year - - (1,767) (1,767) Other comprehensive income for the year - - - - Total comprehensive income for the year - - (1,767) (1,767) Transactions with equity shareholders Adjustment in share-based payment reserve - - 72 72 Dividends paid - - (2,865) (2,865) ------------------------------- -------- -------- --------- -------------- Total transactions with equity shareholders - - (2,793) (2,793) ------------------------------- -------- -------- --------- -------------- At 3 October 2010 200 27,855 (355) 27,700 ------------------------------- -------- -------- --------- -------------- At 4 October 2009 200 27,855 4,205 32,260 ------------------------------- -------- -------- --------- -------------- Loss for the period - - (1,873) (1,873) Other comprehensive income for the period - - - - Total comprehensive income for the period - - (1,873) (1,873) Transactions with equity shareholders Dividends paid - - (2,465) (2,465) Adjustment in share-based payment reserve - - 201 201 ------------------------------- -------- -------- --------- -------------- Total transactions with equity shareholders - - (2,264) (2,264) ------------------------------- -------- -------- --------- -------------- At 4 April 2010 200 27,855 68 28,123 ------------------------------- -------- -------- --------- -------------- At 3 October 2010 200 27,855 (355) 27,700 ------------------------------- -------- -------- --------- -------------- Loss for the period - - (3,152) (3,152) Other comprehensive income for the period - - - - Total comprehensive income for the period - - (3,152) (3,152) Transactions with equity shareholders Dividends paid - - (802) (802) Adjustment in share-based payment reserve - - 99 99 ------------------------------- -------- -------- --------- -------------- Total transactions with equity shareholders - - (703) (703) ------------------------------- -------- -------- --------- -------------- At 3 April 2011 200 27,855 (4,210) 23,845 ------------------------------- -------- -------- --------- --------------
Condensed consolidated cash flow statement (unaudited)
for the six months ended 3 April 2011
six months six months year ended ended ended 3 April 4 April 3 October 2011 2010 2010 Notes GBP000 GBP000 GBP000 -------------------------------- ------ ----------- ----------- ---------- Cash flows from operating activities Cash generated from operations 9 10,077 3,253 12,736 Interest paid (980) (1,066) (2,058) Tax paid (436) (300) (1,806) -------------------------------- ------ ----------- ----------- ---------- Net cash from operating activities 8,661 1,887 8,872 -------------------------------- ------ ----------- ----------- ---------- Cash flows from investing activities Proceeds from sale of property, plant and equipment 560 350 438 Net proceeds from sale of ATH Regeneration assets - - 6,258 Interest received 1 - - Site development costs (7,455) (1,271) (5,930) Purchases of property, plant and equipment (954) (329) (1,358) -------------------------------- ------ ----------- ----------- ---------- Net cash used in investing activities (7,848) (1,250) (592) -------------------------------- ------ ----------- ----------- ---------- Cash flows from financing activities Dividends paid (802) (2,465) (2,865) Repayment of borrowings - (14,533) (14,335) Payment of hire purchase liabilities (5,194) (5,447) (11,247) New asset-backed finance raised 4,266 5,865 8,501 New revolving credit facility drawdown 2,000 25,000 19,238 -------------------------------- ------ ----------- ----------- ---------- Net cash from/(used in) financing activities 270 8,420 (708) -------------------------------- ------ ----------- ----------- ---------- Net increase in cash and cash equivalents 1,083 9,057 7,572 Cash and cash equivalents at beginning of period 2,353 (5,219) (5,219) -------------------------------- ------ ----------- ----------- ---------- Cash and cash equivalents at end of period 3,436 3,838 2,353 -------------------------------- ------ ----------- ----------- ----------
Notes to the interim Report
for the six months ended 3 April 2011
1. Basis of preparation
The Group has drawn up its interim report for the 26 week period ended 3 April 2011 (2010: 26 weeks ended 4 April 2010). The interim report is unaudited and does not constitute statutory financial statements within the meaning of Section 434 of the Companies Act 2006.
The interim report has been prepared using policies that are consistent with International Financial Reporting Standards ("IFRS") as adopted by the European Union. As permitted, this report has not been prepared in accordance with IAS 34 'Interim Financial Reporting'.
The financial information relating to the year ended 3 October 2010 is an extract from the latest published financial statements on which the auditors gave an unqualified report that did not contain statements under Section 498 (2) or (3) of the Companies Act 2006 and which have been filed with the Registrar of Companies.
The Group has bank facilities which are due to expire in November 2012 and the Group is currently in discussions with a view to amend and extend these facilities. Accordingly, the Directors continue to adopt the going concern basis in preparing the financial statements.
The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the latest published annual financial statements. New accounting standards issued in the period do not materially impact on the results of the Group and these will be fully detailed in the year end report.
The interim report was approved by the Board of Directors on 13 June 2011.
2. Segmental reporting
Until 29 July 2010, the Group was organised into two reportable segments; surface mining and regeneration. Following the sale of the business assets of ATH Regeneration, surface mining became the Group's sole business segment.
Six months ended Six months ended Year ended 3 April 2011 4 April 2010 3 October 2010 ----------------------- ----------------------- ----------------------- Surface Discontinued Surface Discontinued Surface Discontinued Income Mining Operations Mining Operations Mining Operations statement GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 --------------- -------- ------------- -------- ------------- -------- ------------- Revenue Total revenue 33,934 - 34,404 - 78,307 - --------------- -------- ------------- -------- ------------- -------- ------------- Result Operating profit/(loss) before exceptional items 1,701 - (309) (699) 6,954 (4,942) Exceptional items (4,131) - - - - - --------------- -------- ------------- -------- ------------- -------- ------------- Operating (loss)/profit (2,430) - (309) (699) 6,954 (4,942) --------------- -------- ------------- -------- ------------- -------- ------------- The discontinued operations loss for the year ended 3 October 2010, includes a loss on sale of the ATH Regeneration assets of GBP3,380,000. Six months ended Six months ended Year ended 3 April 2011 4 April 2010 3 October 2010 ============== ----------------------------------- ----------------------------------- ----------------------------------- Surface Discontinued Surface Discontinued Surface Discontinued Mining Operations Group Mining Operations Group Mining Operations Group Balance sheet GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 -------------- --------- ------------- --------- --------- ------------- --------- --------- ------------- --------- Assets ============== ========= ============= ========= ========= ============= ========= ========= ============= ========= Segment assets 101,236 - 101,236 94,171 12,819 106,990 92,370 5,675 98,045 -------------- --------- ------------- --------- --------- ------------- --------- --------- ------------- --------- Liabilities ============== ========= ============= ========= ========= ============= ========= ========= ============= ========= Segment liabilities (77,391) - (77,391) (76,318) (2,549) (78,867) (59,189) (11,156) (70,345) -------------- --------- ------------- --------- --------- ------------- --------- --------- ------------- --------- Other information ============== ========= ============= ========= ========= ============= ========= ========= ============= ========= Capital additions 8,409 - 8,409 1,473 127 1,600 4,045 3,243 7,288 ============== ========= ============= ========= ========= ============= ========= ========= ============= ========= Depreciation 5,852 - 5,852 7,052 122 7,174 13,564 194 13,758 -------------- --------- ------------- --------- --------- ------------- --------- --------- ------------- ---------
3. Other Operating Income
In January 2011, the Group, as permitted under the terms of the technology licence agreement with RecyCoal Limited, elected to receive a royalty payment of GBP2 million in exchange for reduced royalties in the future.
Following this the Group undertook a review of the expected future royalty receipts and reassessed the carrying value of the goodwill associated with the royalty stream. As a consequence the Group made an impairment write down of GBP1.65 million.
4. Exceptional items
During the period the Group has incurred the following exceptional items:
Six months Six months Year ended ended ended 3 April 4 April 3 October 2011 2010 2010 ---------------------------------------- ----------- ----------- ---------- Write off of work in progress 2,131 - - in respect of the Glenmuckloch site Provisions against work in progress 2,000 - - balances due to re-assessment of coal reserves at current production sites ---------------------------------------- ----------- ----------- ---------- 4,131 - - ---------------------------------------- ----------- ----------- ----------
5. Taxation
Taxation for the six months ended 3 April 2011 has been provided at the effective rate estimated to be applicable for the period.
6. Discontinued Operations
On 29 July 2010 the Group disposed of the business assets of ATH Regeneration Limited which specialised in the recovery of coal through washing of redundant coal tips and its subsequent sale to UK electricity generators. The consideration received for the assets was GBP6.5 million. The Group also entered into a licence agreement with the new owners of RecyCoal Limited to exclusively licence the intellectual property of the coal processing technology, ownership of which is retained by the Group.
The results of the discontinued operations which have been included in the consolidated income statement are as follows:
Six months Six months Year ended ended ended 3 April 4 April 3 October 2011 2010 2010 GBP000 GBP000 GBP000 ---------------------------------------- ----------- ----------- ---------- Revenue - - - ---------------------------------------- ----------- ----------- ---------- Other operating income - 9 11 Operating expenses - (708) (1,573) Loss on sale of business assets - - (1,136) Goodwill impairment - - (2,244) ---------------------------------------- ----------- ----------- ---------- Operating loss - (699) (4,942) Finance costs - (16) - Loss before tax - (715) (4,942) Taxation - 197 648 ---------------------------------------- ----------- ----------- ---------- Loss attributable to discontinued operations - (518) (4,294) ---------------------------------------- ----------- ----------- ----------
7. Earnings per share
Basic earnings per share is calculated by reference to the weighted average number of ordinary shares in issue during the period of 40,075,158 (4 April 2010: 40,075,158; 3 October 2010: 40,075,158) and the profit for the period. The diluted earnings per share takes account of share options outstanding to employees as set out below:
Unaudited Unaudited Audited six months six months year ended ended ended 3 April 4 April 3 October 2011 2010 2010 Number Number Number 000 000 000 ---------------------------------------- ----------- ----------- ---------- Weighted average number of shares in issue 40,075 40,075 40,075 Weighted average number of dilutive share options 2,483 1,570 875 ---------------------------------------- ----------- ----------- ---------- Total number of shares for calculating diluted earnings per share 42,558 41,645 40,950 ---------------------------------------- ----------- ----------- ----------
8. Dividends
Unaudited Unaudited Audited six months six months year ended ended ended 3 April 4 April 3 October 2011 2010 2010 GBP000 GBP000 GBP000 ---------------------------------------- ----------- ----------- ---------- Declared and paid during the financial period Final dividend for the year ended 4 October 2009: 6.15 pence per share - 2,465 2,465 Interim dividend for the year ended 3 October 2010: 1.00 pence per share - - 400 Final dividend for the year ended 3 October 2010: 2.00 pence per share 802 - - ---------------------------------------- ----------- ----------- ---------- 802 2,465 2,865 ---------------------------------------- ----------- ----------- ---------- Proposed after the balance sheet date and not recognised as a liability Final dividend for the year ended 3 October 2010: 2.00 pence per share - - 802 Interim dividend for the year ended 3 October 2010: 1.00 pence per share - 401 - ---------------------------------------- ----------- ----------- ---------- - 401 802 ---------------------------------------- ----------- ----------- ----------
9. Reconciliation of result before tax to net cash generated from operations
Unaudited Unaudited Audited six months six months year ended ended ended 3 April 4 April 3 October 2011 2010 2010 GBP000 GBP000 GBP000 --------------------------------------- ----------- ----------- ---------- Loss before tax (3,625) (2,583) (954) Finance costs 1,195 1,575 2,966 Depreciation of property, plant and equipment 5,852 7,174 13,758 Loss on disposal of fixed assets 49 - 3,380 Impairment of goodwill 1,650 - - Share-based payment expense 99 201 72 Operating cash flows before movements in working capital 5,220 6,367 19,222 (Increase)/decrease in inventories (2,463) (1,720) 203 Exceptional items - work in progress write down 4,131 - - Decrease/(increase) in receivables 741 678 (1,636) Increase/(decrease) in payables and provisions 2,448 (2,072) (5,053) --------------------------------------- ----------- ----------- ---------- Net cash generated from operations 10,077 3,253 12,736 --------------------------------------- ----------- ----------- ----------
10. Analysis of net financial liabilities
Unaudited Unaudited Audited six months six months year ended ended ended 3 April 4 April 3 October 2011 2010 2010 GBP000 GBP000 GBP000 -------------------------------- ----------- ----------- ---------- Debt due within one year (3,500) - - Debt due beyond one year (18,500) (25,000) (20,000) Hire purchase contracts (15,923) (20,014) (16,851) -------------------------------- ----------- ----------- ---------- Total borrowings (37,923) (45,014) (36,851) Cash and cash equivalents 3,436 3,838 2,353 -------------------------------- ----------- ----------- ---------- Net borrowings (34,487) (41,176) (34,498) -------------------------------- ----------- ----------- ---------- Financial instrument liability (235) (233) (357) Unamortised borrowing costs 432 696 564 -------------------------------- ----------- ----------- ---------- Other financial liabilities 197 463 207 -------------------------------- ----------- ----------- ---------- Total financial liabilities (34,290) (40,713) (34,291) -------------------------------- ----------- ----------- ----------
11. Reconciliation of net cash flow to movement in net borrowings
Unaudited Unaudited Audited six months six months year ended ended ended 3 April 4 April 3 October 2011 2010 2010 GBP000 GBP000 GBP000 ---------------------------------------- ----------- ----------- ---------- Increase in cash in the period 1,083 9,057 7,572 Cash outflow from reduction in debt and hire purchase financing 5,194 19,982 25,781 ---------------------------------------- ----------- ----------- ---------- Change in net debt resulting from cash flow 6,277 29,039 33,353 New asset backed loans (4,266) (5,865) (8,501) New revolving credit facility drawdown (2,000) (25,000) (20,000) Movement in net debt in the period 11 (1,826) 4,852 Net debt brought forward (34,498) (39,350) (39,350) ---------------------------------------- ----------- ----------- ---------- Net debt carried forward (34,487) (41,176) (34,498) ---------------------------------------- ----------- ----------- ----------
12. Copies of the interim report
Copies of the interim report will be posted to shareholders in due course and are available from the Group's Head Office at Aardvark House, Sidings Court, Doncaster DN4 5NU or by visiting the Group's website www.ath.co.uk.
* The information in this report relating to exploration results, mineral resources or mineral reserves is based on information compiled by Mr. Peter Morgan, a full-time employee of the Group, who is a Fellow of the Institute of Materials, Minerals and Mining. Mr. Morgan has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration. He has reviewed and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. A glossary of terms is available on our website - www.ath.co.uk.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
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