CIC Capital Ltd Half Yearly Report (8993R)

TIDMCICC

RNS Number : 8993R

CIC Capital Ltd

31 October 2013

Half Yearly Report

CIC CAPITAL LIMITED

("CICC" or the "COMPANY")

Half yearly report for the 6 months ended 31 July 2013

CHAIRMAN'S STATEMENT

Our focus is to earn-in equity interests in quality companies as compensation for our services.

In the 6 months ended July 31 2013, CIC Capital Ltd ("CIC Capital" or the "Company") earned revenues of CAD$6,862,354 (2012: CAD$491,381) and profit before taxation of CAD$5,944,993 (2012: CAD$115,437 before restatement to include a gain on investments at fair value of CAD$31,019,645). Cash at end of period was CAD$38,747. We have continued our focus not to incur any new debt. In the half year we reduced historical debt and converted director and officer fees to B Class special non-voting shares. The readiness of directors to agree to this type conversion demonstrates, in our view, our focus to use cash resources to reduce debt and grow the Company. Operating costs are low and we will strive to maintain efficiencies, invest in our staff resources and expand our capabilities.

The Company is a consulting and advisory company, operating primarily in the mining and energy infrastructure sectors. The Company seeks to provide consulting and advisory services to entities operating at various stages of resource development, and the exclusive right to control the public listing process of any client company if the client company is an unlisted company. The Company principally seek equity interests in client companies in return for its services.

Revenue in the period has principally been earned from services provided to CIC Gold Limited ("CIC Gold" or "CICG") valued, in total, at CAD$6,499,825. CIC Gold settled these transactions by issuing CIC Capital with new shares, a total of 13.68 million new shares being issued to us. At 31 January 2013, CIC held 58,160,000 shares (or 48.46%) in CIC Gold. These additional transactions have raised the Company's total holding to 71,840,000 shares, being 59.87%. The Company has attributed a value of the shares of GBP0.30 a share. We continue to supply services to CIC Gold. The Company is designated as an investment entity under IFRS 10 and the investments in CIC Gold are accounted for under this basis.

CIC Gold is a precious metals company focused on gold mineral assets. CICG was established by CIC Capital and its Chinese precious metals miner shareholders to establish a specific publicly traded Precious Metals Company. CIC Gold's focus is on mineral property assets where medium to large gold oxide mining may be conducted in the short term, mineral property assets that the directors consider to be undervalued or have strong fundamentals and attractive growth prospects, and de-risk those assets by way of exploration or mining.

The Company holds a 48.36% interest in CIC Fuels Limited ("CICF") which is a non-publicly listed entity as at 31 July 2013. CICF focuses on alternative heavy oil emulsion fuels technologies. The value of the Company's interest in CICF used in our accounts is consistent with previous transactions of these shares with third parties.

I would like to take this opportunity to thank staff and shareholders for their continued support and belief in the Board strategies for the Company's direction.

Stuart J. Bromley

Chairman/Founder

CIC Capital Ltd.

 
 CIC CAPITAL LTD. 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 
 For the Six Months Ended July 31, 2013 
 (In Canadian Dollars CAD$) 
------------------------------------------------------------------------------------------------------- 
                                          Note           Six months ended    Six months     Year ended 
                                                                                ended         January 
                                                                                              31, 2013 
---  ---------------------------------  ------- 
                                                               31-July-13    31-July-12      Unaudited 
---  ---------------------------------  ------- 
                                                                Unaudited     Unaudited     (Restated) 
                                                                             (Restated) 
---  ---------------------------------  -------  ------------------------  --------------  ------------ 
 Revenue 
  Consulting & advisory 
   services                                3                    6,862,354         491,383    15,143,814 
 
 Administrative costs                                             945,310         375,946     1,407,155 
--------------------------------------           ------------------------  -------------- 
 Operating profit                                               5,917,044         115,437    13,736,659 
  Gain on investments at 
   fair value through profit 
   or loss                                                              -      31,019,645    36,657,759 
  Gain on disposal of security                                     27,949 
                                                 ------------------------  -------------- 
 Profit before taxation                                         5,944,993      31,135,082    50,394,418 
 
  Income tax                               4                    1,039,824               -    11,006,281 
 -------------------------------------  -------  ------------------------  --------------  ------------ 
 
 Net Profit for the period                                      4,905,169      31,135,082    39,388,137 
 Other Comprehensive Income 
 Changes in fair value of 
  available for sale investments 
  (net of tax)                                                          -               -             - 
 Exchange differences on 
  translation of foreign 
  operation                                                     (158,844)           1,864      (10,743) 
--------------------------------------  -------  ------------------------  --------------  ------------ 
 Other comprehensive income 
  for the period net of tax                                     (158,844)           1,864      (10,743) 
 
 Total Comprehensive Income 
  attributable to the shareholders                              4,746,325      31,136,946    39,377,394 
--------------------------------------  -------  ------------------------  --------------  ------------ 
 
 Basic earnings per share                  7                       0.0255            0.20        0.2582 
 Diluted earnings per share                7                       0.0163            0.19        0.1626 
 
 Weighted average number 
  of shares outstanding                                       186,444,427     152,451,777   152,544,908 
--------------------------------------  -------  ------------------------  --------------  ------------ 
 
 
 
 CIC CAPITAL LTD. 
  CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
  For the Six Months Ended July 31, 2013 
  (In Canadian Dollars CAD$) 
------------------------------------------------------------------------------------------------------ 
                                       Note                            As at July        As at January 
                                                                         31, 2012           31, 2013 
                                                  As at July 
                                                   31, 2013             Unaudited          Unaudited 
                                                  (Unaudited)           (Restated)         (Restated) 
 ASSETS 
 
 Non-current assets 
  Investments                           5             48,150,019            36,493,700      41,650,194 
                                                      48,150,019            36,493,700      41,650,194 
 
 Current assets 
  Cash                                                    38,747                 2,151          91,510 
  Trade and other receivables                         10,247,139                29,434      11,292,546 
  Available for sale financial 
   assets                               5                      -                 2,652           4,425 
  Prepaid expenses and deposits                           53,159                95,849               - 
   TOTAL ASSETS                                       58,489,064            36,623,786      53,038,675 
 -----------------------------------  -----  -------------------  --------------------  -------------- 
 
 LIABILITIES & SHAREHOLDERS' 
  EQUITY 
 
 Current liabilities 
  Accounts payable & accrued 
   liabilities                                         1,512,334             1,713,617       1,961,889 
  Income taxes payable                                12,154,020             5,576,843      11,109,847 
  Due to related parties                                 109,447             1,058,821         505,087 
 -----------------------------------  -----  -------------------  --------------------  -------------- 
                                                      13,775,801             8,349,281      13,576,823 
 
 
  Share capital                         6             27,212,396            24,592,434      26,707,310 
  Contributed surplus                                  5,485,207             4,646,153       5,485,207 
 -----------------------------------  -----  -------------------  --------------------  -------------- 
                                                      32,697,603            29,238,587      32,192,517 
 
  Accumulated profit/(deficit)                        12,029,336           (1,116,548)     (7,124,167) 
  Foreign currency translation 
   reserve                                              (15,258)               150,884         143,586 
  Other reserve                                            1,582                 1,582           1,582 
                                                      12,015,660             (964,082)       7,269,335 
 
   TOTAL EQUITY & LIABILTIES                          58,489,064            36,623,786      53,038,675