Half Yearly Report

 

TIDMEAM 
 
RNS Number : 7581P 
Energy Asset Management PLC 
31 March 2009 
 

 
 
For immediate release 
                      31 March 2009 
 
 
Energy Asset Management Plc 
("EAM" or the "Company") 
 
 
Second Interim Results for the Twelve Months Ended 31 December 2008 
 
 
Introduction 
On 23 December 2008 the Company announced that it had entered into a conditional 
agreement with Macquarie Energy Asset Holdings Limited for the sale by the 
Company of the entire issued share capital Energy Assets Limited, a wholly owned 
subsidiary of the Company and its principal trading entity. At a general meeting 
held on 9 January 2009 shareholders approved the sale and, as the Company was 
reclassified under the AIM Rules as an Investing Company, approved the 
Investment Strategy set out below. 
 
 
The Company has extended its accounting reference period ending on 31 December 
2008 so as to end on 31 March 2009 in order to better inform shareholders by 
presenting audited Financial Statements made up to a period after the sale and, 
accordingly presents second unaudited interim results to 31 December 2008. 
Financial Results 
In the 12 months to 31 December 2008 the Group made a loss after taxation of 
GBP292,513 (2007 - loss GBP1,051,289) representing a loss per share of 0.09p 
(2007 - loss 0.39p per share). The reduced loss reflects the progress that was 
being made by the Company's principal trading business. 
Following receipt of the initial consideration arising from the sale of Energy 
Assets Limited in January 2009, and after settlement of costs, cash balances 
currently amount to some GBP450,000. Details of further consideration pursuant 
to the sale of Energy Assets Limited are set out in note 5 to these second 
interim financial statements. 
Investment Strategy 
The Company will seek to acquire assets, companies or businesses in the United 
Kingdom and Europe in the energy or natural resources sector and in the service 
sector. The Company may be either an active investor and acquire control of a 
single company or it may be a passive investor and acquire non-controlling 
shares or other assets or businesses as is considered to be in the best 
interests of the Company. 
The Future 
Your board is seeking out suitable acquisitions and meanwhile is endeavouring to 
keep costs to a minimum and to conserve cash. 
 
 
Contact:    John Shaw, Energy Asset Management PLC on 07973 826613 
             Roland Cornish, Beaumont Cornish Limited on 020 7628 3396 
 
+---------------------------------+--------+-------------+-----------+-------------+ 
|                           Energy Asset Management Plc                            | 
+----------------------------------------------------------------------------------+ 
|                          Consolidated Income Statement                           | 
+----------------------------------------------------------------------------------+ 
|                for the twelve month period ended 31 December 2008                | 
+----------------------------------------------------------------------------------+ 
|                                 |        |             |           |             | 
+---------------------------------+--------+-------------+-----------+-------------+ 
|                                 |  Note  |      31-Dec |    30-Jun |      31-Dec | 
+---------------------------------+--------+-------------+-----------+-------------+ 
|                                 |        |        2008 |      2008 |        2007 | 
+---------------------------------+--------+-------------+-----------+-------------+ 
|                                 |        |         GBP |       GBP |         GBP | 
+---------------------------------+--------+-------------+-----------+-------------+ 
|                                 |        |   Unaudited | Unaudited |     Audited | 
|                                 |        |             |           |             | 
+---------------------------------+--------+-------------+-----------+-------------+ 
|                                 |        |             |           |             | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Revenue                         |        |  2,068,057  |  816,699  |    667,860  | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Cost of sales                   |        |   (702,994) | (268,942) |   (360,374) | 
+---------------------------------+--------+-------------+-----------+-------------+ 
|                                 |        |             |           |             | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Gross Profit                    |        |  1,365,063  |  547,757  |    307,486  | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Operating expenses              |        | (1,663,286) | (649,359) | (1,363,668) | 
+---------------------------------+--------+-------------+-----------+-------------+ 
|                                 |        |             |           |             | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Operating loss                  |        |   (298,223) | (101,602) | (1,056,182) | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Finance Income                  |        |      6,920  |    2,541  |      4,893  | 
+---------------------------------+--------+-------------+-----------+-------------+ 
|                                 |        |             |           |             | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Loss before taxation            |        |   (291,303) |  (99,061) | (1,051,289) | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Taxation                        |        |     (1,210) |        0  |          0  | 
+---------------------------------+--------+-------------+-----------+-------------+ 
|                                 |        |             |           |             | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Loss after taxation             |        |   (292,513) |  (99,061) | (1,051,289) | 
+---------------------------------+--------+-------------+-----------+-------------+ 
|                                 |        |             |           |             | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Retained loss for the period    |        |   (292,513) |  (99,061) | (1,051,289) | 
+---------------------------------+--------+-------------+-----------+-------------+ 
|                                 |        |             |           |             | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Attributable to                 |        |             |           |             | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Equity holders of the Company   |        |   (292,513) |  (99,061) | (1,058,734) | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Minority interest               |        |          0  |        0  |      7,445  | 
+---------------------------------+--------+-------------+-----------+-------------+ 
|                                 |        |             |           |             | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Retained loss for the period    |        |   (292,513) |  (99,061) | (1,051,289) | 
+---------------------------------+--------+-------------+-----------+-------------+ 
|                                 |        |             |           |             | 
+---------------------------------+--------+-------------+-----------+-------------+ 
| Loss per share basic and        |  2     |      (0.09) |    (0.25) |      (0.39) | 
| diluted (p)                     |        |             |           |             | 
+---------------------------------+--------+-------------+-----------+-------------+ 
 
 
 
+---------------------------------+--------+-------------+-------------+-------------+ 
|                            Energy Asset Management Plc                             | 
+------------------------------------------------------------------------------------+ 
|                            Consolidated Balance Sheet                              | 
+------------------------------------------------------------------------------------+ 
|                              As at 31 December 2008                                | 
+------------------------------------------------------------------------------------+ 
|                                 |        |             |             |             | 
+---------------------------------+--------+-------------+-------------+-------------+ 
|                                 |        |      31-Dec |      30-Jun |      31-Dec | 
+---------------------------------+--------+-------------+-------------+-------------+ 
|                                 |        |        2008 |        2008 |        2007 | 
+---------------------------------+--------+-------------+-------------+-------------+ 
|                                 |        |         GBP |         GBP |         GBP | 
+---------------------------------+--------+-------------+-------------+-------------+ 
|                                 |        |   Unaudited |   Unaudited |     Audited | 
|                                 |        |             |             |             | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Assets                          |        |             |             |             | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Non current assets              |        |             |             |             | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Property, plant and equipment   |        |  3,512,120  |  1,153,631  |    476,092  | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Intangible assets- Goodwill     |        |    745,475  |    745,475  |    745,475  | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Total non current assets        |        |  4,257,595  |  1,899,106  |  1,221,567  | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Current assets                  |        |             |             |             | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Trade and other receivables     |        |    239,401  |    465,883  |     95,200  | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Cash and cash equivalents       |        |    120,479  |    215,648  |     17,101  | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Inventories                     |        |    230,228  |    136,125  |    131,984  | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Total current assets            |        |    590,108  |    817,656  |    244,285  | 
+---------------------------------+--------+-------------+-------------+-------------+ 
|                                 |        |             |             |             | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Total Assets                    |        |  4,847,703  |  2,716,762  |  1,465,852  | 
+---------------------------------+--------+-------------+-------------+-------------+ 
|                                 |        |             |             |             | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Equity and liabilities          |        |             |             |             | 
| attributable to equity holders  |        |             |             |             | 
| of the Company                  |        |             |             |             | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Share capital and reserves      |        |             |             |             | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Issued capital                  |  4     |  3,327,684  |  3,327,684  |   2,787,684 | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Share premium account           |        |  1,145,899  |  1,145,899  |   1,163,929 | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Reserves                        |        | (3,705,835) | (3,568,956) | (3,526,468) | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Total Equity                    |        |    767,748  |    904,627  |    425,145  | 
+---------------------------------+--------+-------------+-------------+-------------+ 
|                                 |        |             |             |             | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Non-current liabilities         |        |  1,640,923  |  1,050,587  |    425,374  | 
| Borrowings                      |        |             |             |             | 
+---------------------------------+--------+-------------+-------------+-------------+ 
|                                 |        |             |             |             | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Current liabilities             |        |             |             |             | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Borrowings                      |        |    136,357  |     70,649  |     40,605  | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Trade and other payables        |        |  2,302,675  |    690,899  |    574,728  | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Total current liabilities       |        |  2,439,032  |    761,548  |    615,333  | 
+---------------------------------+--------+-------------+-------------+-------------+ 
|                                 |        |             |             |             | 
+---------------------------------+--------+-------------+-------------+-------------+ 
| Total equity and liabilities    |        |  4,847,703  |  2,716,762  |  1,465,852  | 
+---------------------------------+--------+-------------+-------------+-------------+ 
 
 
 
 
 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
|                                    Energy Asset Management Plc                                    | 
+---------------------------------------------------------------------------------------------------+ 
|                                  Statement in Changes in Equity                                   | 
+---------------------------------------------------------------------------------------------------+ 
|                                 |            |            |             |           |             | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
|                                 |   Share    |   Share    |  Retained   | Minority  |             | 
|                                 |            |            |             |           |             | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
|                                 |  Capital   |  Premium   |  Earnings   |Interests  |    Total    | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
|                                 |    GBP     |    GBP     |    GBP      |    GBP    |    GBP      | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Balance at 1 January 2007       | 2,467,684  | 1,083,929  | (2,580,880) |   (7,445) |    963,288  | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Loss for the period             |         0  |         0  | (1,058,734) |        0  | (1,058,734) | 
| attributable  to equity holders |            |            |             |           |             | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Loss for the period             |         0  |         0  |          0  |    7,445  |      7,445  | 
| attributable to minority        |            |            |             |           |             | 
| interest                        |            |            |             |           |             | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Share based payments            |         0  |         0  |    113,146  |        0  |    113,146  | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Shares issued                   |   320,000  |    80,000  |          0  |        0  |    400,000  | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Balance at 31 December 2007     | 2,787,684  | 1,163,929  | (3,526,468) |        0  |    425,145  | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Loss for the period             |         0  |         0  |    (99,061) |        0  |    (99,061) | 
| attributable  to equity holders |            |            |             |           |             | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Share based payments            |         0  |         0  |     56,573  |        0  |     56,573  | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Shares issued                   |   540,000  |         0  |          0  |        0  |    540,000  | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Share issue costs               |         0  |   (18,030) |          0  |        0  |    (18,030) | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Balance at 30 June 2008         | 3,327,684  | 1,145,899  | (3,568,956) |        0  |    904,627  | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Loss for the period             |         0  |         0  |   (193,452) |        0  |   (193,452) | 
| attributable  to equity holders |            |            |             |           |             | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Share based payments            |         0  |         0  |     56,573  |        0  |     56,573  | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Shares issued                   |         0  |         0  |          0  |        0  |          0  | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Share issue costs               |         0  |         0  |          0  |        0  |          0  | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
| Balance at 31 December 2008     | 3,327,684  | 1,145,899  | (3,705,835) |        0  |    767,748  | 
+---------------------------------+------------+------------+-------------+-----------+-------------+ 
 
 
 
 
 
+---------------------------------+--------+-------------+------------+-------------+ 
|                            Energy Asset Management Plc                            | 
+-----------------------------------------------------------------------------------+ 
|                         Consolidated Cash Flow Statement                          | 
+-----------------------------------------------------------------------------------+ 
|                   For the twelve months ended 31 December 2009                    | 
+-----------------------------------------------------------------------------------+ 
|                                 |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
|                                 |        |      31-Dec |     30-Jun |      31-Dec | 
+---------------------------------+--------+-------------+------------+-------------+ 
|                                 |        |        2008 |       2008 |        2007 | 
+---------------------------------+--------+-------------+------------+-------------+ 
|                                 |        |         GBP |        GBP |         GBP | 
+---------------------------------+--------+-------------+------------+-------------+ 
|                                 |        |   Unaudited |  Unaudited |     Audited | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Cash flows from operating       |        |             |            |             | 
| activities                      |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Operating loss for the year as  |        |   (298,223) |  (101,602) | (1,056,182) | 
| per income statement            |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Depreciation of non current     |        |     99,943  |    29,696  |     22,576  | 
| assets                          |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Loss on disposal of non current |        |      1,420  |         0  |          0  | 
| assets                          |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Share based payments            |        |    113,146  |    56,573  |    113,146  | 
+---------------------------------+--------+-------------+------------+-------------+ 
|                                 |        |    (83,714) |   (15,333) |   (920,460) | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Movements in working capital    |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Increase in trade and other     |        |   (483,278) |  (370,683) |    (41,865) | 
| receivables                     |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Increase in inventories         |        |    (98,244) |    (4,141) |   (122,624) | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Increase in trade and other     |        |  2,023,789  |   116,171  |    460,346  | 
| payables                        |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Net cash outflow from           |        |  1,358,553  |  (273,986) |   (624,603) | 
| operations                      |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
|                                 |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Cash flows from investing       |        |             |            |             | 
| activities                      |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Interest received               |        |      6,920  |     2,541  |      4,893  | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Purchase of non current assets  |        | (3,135,971) |  (707,235) |   (478,263) | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Net cash outflow from investing |        | (3,129,051) |  (704,694) |   (473,370) | 
| activities                      |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
|                                 |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Cash flows from financing       |        |             |            |             | 
| activities                      |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Net proceeds from issue of      |        |    521,970  |   521,970  |    400,000  | 
| equity shares                   |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Inflow from new leases          |        |  1,444,580  |   683,614  |    475,853  | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Capital element of finance      |        |    (92,674) |   (28,357) |     (9,874) | 
| lease rental payments           |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Net cash flows from financing   |        |  1,873,876  | 1,177,227  |    865,979  | 
| activities                      |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
|                                 |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Net increase/(decrease) in cash |        |    103,378  |   198,547  |   (231,994) | 
| and cash equivalents            |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
|                                 |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Cash and cash equivalents at    |        |     17,101  |    17,101  |    249,095  | 
| the beginning of period         |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
|                                 |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
| Cash and cash equivalents at    |        |    120,479  |   215,648  |     17,101  | 
| end of period                   |        |             |            |             | 
+---------------------------------+--------+-------------+------------+-------------+ 
 
 
  Notes to the unaudited financial statements 
 
 
1.  Basis of Preparation 
 
 
These second interim financial statements of the Group for the twelve months 
ended 31 December 2008 have been prepared on a going concern basis in accordance 
with the recognition and measurement principles of International Financial 
Reporting Standards (IFRSs) endorsed by the European Union and the AIM Rules for 
Companies. The interim financial statements have been prepared on a basis 
consistent with the accounting policies set out in the Group's consolidated 
annual financial statements for the year ended 31 December 2007. They have not 
been audited, do not include all the information required for full annual 
financial statements, and should be read in conjunction with the Group's 
consolidated annual financial statements for the year ended 31 December 2007. 
The report of the auditors on those consolidated annual financial statements was 
unqualified. This information does not constitute statutory accounts as defined 
in section 240 of the Companies Act 1985. 
As permitted, the Group has chosen not to adopt IAS 34 "Interim Financial 
Statements" in preparing this interim financial information. 
 
 
2. Loss per share 
 
 
The loss per share has been calculated by dividing the loss after taxation of 
GBP292,513 by the weighted average number of Ordinary Shares in issue for the 
period of 330,401,260 (2007: 263,917,554). The diluted loss per share is the 
same as the basic loss per share as the options that were in existence have an 
anti-dilutive effect on the loss per share and therefore have not been taken 
into account. 
 
 
3. Dividend 
 
 
No dividend is recommended. 
 
 
4. Share capital 
 
 
At 31 December 2008 the Company had 332,768,383 Ordinary shares of 1p each in 
issue. (2007: 278,768,383). 
 
 
5. Post Balance sheet events 
 
 
On 9 January 2009, the Company sold its interests in Energy Assets Limited, a 
wholly owned subsidiary of the Company and its principal trading entity. 
Under the terms of the sale agreement, the Company sold the entire issued 
share capital of Energy Assets Limited to Macquarie Energy Assets Holdings 
Limited, a wholly owned subsidiary of Macquarie Group Limited, for an aggregate 
consideration of up to GBP1,848,572 payable in three tranches: 
(a) GBP590,953 of the consideration was paid to the Company at Completion; 
 
 
(b) GBP590,953 of the consideration is to be paid to the Company on 31 December 
2009. Of this amount, GBP75,714 is conditional upon Alan McKeating and Philip 
Bellamy-Lee remaining in employment with Energy Assets Limited at 31 December 
2009; and 
 
 
(c) up to GBP666,666 of additional consideration is payable to the Company on or 
about 30 June 2010  conditional upon the net profit attributable to the 
activities of EAL and Pulse 24 Limited (a wholly owned subsidiary of Macquarie 
Group Limited) for the financial year ended 31 March 2010 being equal to or 
exceeding GBP3,000,000. Of this amount, GBP151,428 is conditional upon Alan 
McKeating and Philip Bellamy- Lee remaining in employment with Energy Assets 
Limited at 30 June 2010 and to the extent that profit is less than GBP3,000,000, 
the payment will be scaled down proportionately. 
 
 
The Company has also subsequently disposed of its interests in other minor 
subsidiaries for a nominal sum and accordingly the Company has now become an 
investing company under the AIM Rules. 
 
 
The Company has extended the accounting reference period ending on 31 December 
2008 so as to end on 31 March 2009 so as to better inform shareholders by 
presenting audited Financial Statements made up to a period after the disposals. 
Meanwhile, the Company now presents these Second Interim Financial Statements. 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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