Minoan Group PLC Interim Results

RNS Number : 4700Y

Minoan Group PLC

31 July 2024

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

31 July 2024

Interim Results Announcement

Minoan Group Plc

(the "Group" or the "Company" or "Minoan")

 

 

Minoan Group Plc, the AIM listed resort development company presents its unaudited interim results for the six months ended 30 April 2024.

 

 

KEY POINTS

 

·      Discussions continue with the Public Welfare Ecclesiastical Foundation Panagia Akrotiriani

("the Foundation") along with prospective development and other partners.

·      Work on the reduction of liabilities is nearing completion and will be advised shortly.

·      Process of recruiting a new and enlarged management team has commenced.

·      The Loss for the period was £601,000 (2022/23: £286,000).

 

 

Christopher Egleton, Chairman of Minoan, said:

 

"I am encouraged by the progress in discussions with the Foundation and the Greek Ministry of National Economy and Finance. Following the signing of a collaboration agreement with a major international luxury hotel group, we continue to advance the commercial aspects of the Project with Contractors, Banks, Banking Advisors and other potential partner organisations. A number of these discussions are at an advanced stage."

 

 

 

The Company's unaudited interim results for the six months ended 30 April 2024 can be viewed on Minoan's website, www.minoangroup.com, with effect from 31 July 2024.

 

 

For further information visit www.minoangroup.com or contact:

 

Minoan Group Plc                                                           [e-mail]

 

WH Ireland Limited                                                     020 7220 1666
Antonio Bossi/Andrew de Andrade                               

 

Peterhouse Capital Limited                                          020 7469 0930

Duncan Vasey              

 

                                                 

 

Chairman's Statement

 

Introduction

 

I am pleased to present the unaudited interim results for Minoan Group Plc for the six months to 30 April 2024.

On 30 April 2024, the Company confirmed that it and the Public Welfare Ecclesiastical Foundation Panagia Akrotiriani ("the Foundation") were progressing the detailed discussions necessary regarding the updating and alignment of the existing Contract with changes in the Greek legal framework generally as well as specific matters such as the revised Itanos Gaia Project (the "Project") that have taken place since the Contract was agreed and signed. As Shareholders are aware these discussions are taking place within an institutional process conducted through the Ministry of National Economy and Finance, the supervising authority for all Foundations in Greece.

 

Significant progress is being made and numerous meetings have and are continuing to take place with the Foundation and/or its advisors. In this process it is important to bear in mind that the relationship with the Foundation, as is the case with development, financial and hospitality partners, are for the long term. In the case of the Foundation the relationship will stretch for the length of the lease, and whilst the process is taking some time to conclude, it is important to ensure that all parties understand what is expected of them now and in the future and on what terms.

 

Progress is being made and I expect to be able to inform Shareholders in the near future on this and a number of other matters, notably the ongoing discussions with prospective development and other partners.

 

In addition to Project itself, one of the issues being addressed by the Company is the reduction of liabilities in order to help prepare the Company for the change in gear that will be necessary as soon as the updated Contract is complete. Discussions on this are progressing well and I expect them to reach a conclusion in the very near term.

 

I have explained previously the fact that one of the major tasks to be undertaken once the Updated Contract is in place is the recruitment of a new and enlarged management team in order to move forward as fast as possible and this process has already been commenced. It remains mine and the Board's belief that the Itanos Gaia Project at Cavo Sidero will be a stunning addition to the tourism offering of Greece as a whole and for Crete in particular.

 

 

Financial Review

 

The loss before taxation for the six months period to 30 April 2024 was £601,000 compared to £286,000 in the same period last year, the majority of which is accounted for by a one-off charge for the extension fee for DAGG on its loan renewal in November 2023.

 

The Company continues to focus on the key activities necessary to drive the Project forward.

 

Total assets at 30 April 2024 totalled £52,109,000 (2023: £51,475,000).

 

 

 

 

Chairman's Statement (continued)

 

Outlook

 

In conclusion, I am encouraged by the progress in discussions with the Foundation and the Greek Ministry of National Economy and Finance. Following the signing of a collaboration agreement with a major international luxury hotel group, we continue to advance the commercial aspects of the Project with Contractors, Banks, Banking Advisors and other potential partner organisations. A number of these discussions are at an advanced stage. I look forward to updating Shareholders on further progress as we conclude the various ongoing discussions.

 

 

 

 

 

 

Christopher W Egleton

Chairman

31 July 2024

 

Unaudited Consolidated Statement of Comprehensive Income

Six months ended 30 April 2024

 

	6 months ended 30.04.24                         £'000	6 months ended 30.04.23                         £'000	Year ended 31.10.23  £'000
Revenue	-	-	-
Cost of sales	-	-	-
Gross profit	-	-	-
Operating expenses	(360)	(220)	(536)
Operating loss	(360)	(220)	(536)
Finance costs	(241)	(66)	7
Loss before taxation	(601)	(286)	(529)
Taxation	-	-	-
Loss for period attributable to equity holders of the Company	(601)	(286)	(529)
Loss per share attributable to equity holders of the Company: Basic and diluted	(0.07p)	(0.04p)	(0.07p)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited Consolidated Statement of Changes in Equity

Six months ended 30 April 2024

 

 

 

	Share capital £'000	Share premium £'000	Merger reserve £'000	Warrant reserve £000	Retained earnings £'000	Total equity £'000
Balance at 1 November 2023	20,509	36,583	9,349	2,461	(26,712)	42,190
Loss for the period	-	-	-	-	(601)	(601)
Issue of ordinary shares	930	-	-	-	-	930
Share based payments	-	-	-	-	-	-
Balance at 30 April 2024	21,439	36,583	9,349	2,461	(27,313)	42,519

 

 

 

 

Six months ended 30 April 2023

	Share capital £'000	Share premium £'000	Merger reserve £'000	Warrant reserve £000	Retained earnings £'000	Total equity £'000
Balance at 1 November 2022	20,321	36,583	9,349	2,619	(26,183)	42,689
Loss for the period	-	-	-	-	(286)	(286)
Issue of ordinary shares	27	-	-	-	-	27
Share based payments	-	-	-	-	-	-
Balance at 30 April 2023	20,348	36,583	9,349	2,619	(26,469)	42,430

 

 

 

 

Year ended 31 October 2023

	Share capital £'000	Share premium £'000	Merger reserve £'000	Warrant reserve £000	Retained earnings £'000	Total equity £'000
Balance at 1 November 2022	20,321	36,583	9,349	2,619	(26,183)	42,689
Loss for the year	-	-	-	-	(529)	(529)
Issue of ordinary shares	188	-	-	-	-	188
Decrease in warrant Reserve	-	-	-	(158)	-	(158)
Balance at 31 October 2023	20,509	36,583	9,349	2,461	(26,712)	42,190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited Consolidated Statement of Financial Position as at 30 April 2024

 

	As at 30.04.24 £'000	As at 30.04.23 £'000	As at 31.10.23 £'000
Assets
Non-current assets
Intangible assets	3,583	3,583	3,583
Property, plant and equipment	157	157	157
Total non-current assets	3,740	3,740	3,740
Current assets
Inventories	48,215	47,561	47,995
Receivables	136	159	117
Cash and cash equivalents	18	15	17
Total current assets	48,369	47,735	48,129
Total assets	52,109	51,475	51,869
Equity
Share capital	21,439	20,348	20,509
Share premium account	36,583	36,583	36,583
Merger reserve account	9,349	9,349	9,349
Warrant reserve	2,461	2,619	2,461
Retained earnings	(27,313)	(26,469)	(26,712)
Total equity	42,519	42,430	42,190
Liabilities
Current liabilities	9,590	9,045	9,679
Total equity and liabilities	52,109	51,475	51,869

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited Consolidated Cash Flow Statement

Six months ended 30 April 2024

 

 

	6 months ended 30.04.24 £'000	6 months ended 30.04.23 £'000	Year ended 31.10.23   £'000
Loss before taxation	(601)	(286)	(529)
Finance costs	241	66	(7)
Increase in inventories	(220)	(173)	(606)
(Increase) / decrease in receivables	(19)	8	50
Increase in current liabilities	186	234	591
Net cash (outflow) from operations	(413)	(151)	(501)
Finance costs	(241)	(66)	(151)
Net cash used in operating activities	(654)	(217)	(652)
Cash flows from investing activities
Purchase of property, plant and equipment	-	-	-
Purchase of intangible assets	-	-	-
Net cash used in investing activities	-	-	-
Cash flows from financing activities
Net proceeds from the issue of ordinary shares	930	27	188
Net loans received / (repaid)	(275)	75	351
	655	102	539
Net increase / (decrease) in cash	1	(115)	(113)
Cash at beginning of period	17	130	130
Cash at end of period	18	15	17

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes to the Unaudited Financial Statements

Six months ended 30 April 2024

 

1. General information

 

The Company is a public limited company incorporated in England and Wales and quoted on AIM. The Company's principal activity in the period under review was that of a holding and management company of a Group involved in the design, creation, development and management of environmentally friendly luxury hotels and resorts.

 

2. Basis of preparation

 

The interim financial statements are unaudited and do not constitute statutory accounts as defined in Section 434(3) of the Companies Act 2006. A copy of the audited Group Strategic Report, Report of the Directors and Consolidated Financial Statements for the year ended 31 October 2023 has been delivered to the Registrar of Companies. The auditor's report on these accounts was unqualified and did not contain statements under s498(2) to s498(4) of the Companies Act 2006.

 

These interim financial statements for the six months ended 30 April 2024 comprise an Unaudited Consolidated Statement of Comprehensive Income, Unaudited Consolidated Statement of Changes in Equity, Unaudited Consolidated Statement of Financial Position, Unaudited Consolidated Cash Flow Statement plus relevant notes.

 

The interim financial statements are prepared in accordance with EU adopted International Financial Reporting Standards ("IFRS") and the International Financial Reporting Interpretations Committee ("IFRIC") interpretations and the Companies Act 2006 applicable to companies reporting under IFRS.

 

The principal accounting policies adopted in the preparation of the interim financial statements are consistent with those adopted in the Report and Financial Statements for the year ended 31 October 2023.

 

Going concern

 

The directors have considered the financial and commercial position of the Group in relation to its project in Crete (the "Project"). In particular, the directors have reviewed the matters referred to below.

 

Following the unanimous approval of a Plenum of the Greek Council of State, the highest court in Greece, the Presidential Decree granting land use approval for the Project was issued on 11 March 2016 and was published in the Government Gazette. The planning rules for the Project are now enshrined in law. The appeals lodged against the Presidential Decree have been rejected by the Greek Supreme Court. Accordingly, the directors consider that they will conclude further Project joint venture agreements in the near term.

 

In addition to specific Project related matters as noted above, and as has been the case in the past, the Group continues to need to raise capital in order to meet its existing finance and working capital requirements. While the directors consider that any necessary funds will be raised as required, the ability of the Company to raise these funds is, by its nature, uncertain.

 

Having taken these matters into account, the directors consider that the going concern basis of preparation of the financial statements is appropriate.

 

 

 

 

 

 

Notes to the Unaudited Financial Statements (continued)

Six months ended 30 April 2024

 

3. Loss per share attributable to equity holders of the Company

 

Earnings per share are calculated by dividing the earnings attributable to the equity holders of a company by the weighted average number of ordinary shares in issue during the period. Diluted earnings per share are calculated by adjusting basic earnings per share to assume the conversion of all dilutive potential ordinary shares. As the Group is loss making, there are no dilutive instruments in issue, therefore the basic loss per share and diluted loss per share are the same. The weighted average number of shares used in calculating basic and diluted loss per share for the six months ended 30 April 2024 was 820,457,443 (Six months ended 30 April 2023: 733,176,060; Year ended 31 October 2023: 738,256,428).

 

 

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