Half Yearly Report

 

TIDMPMS 
 
RNS Number : 8953I 
Palmaris Capital PLC 
22 March 2010 
 

22 March 2010 
 
               Palmaris Capital Plc ("Palmaris" or the "Company") 
 
                Results for the 6 months ended 31 December 2009 
 
The Board of Palmaris, the investment company with interests in coal mining, is 
pleased to present its unaudited results for the 6 month period ended 31 
December 2009. 
 
Key points include: 
 
·    A loss on ordinary activities before tax of GBP73,195 (2008: GBP(61,551)); 
 
·    An increase in valuation of SRG shares from GBP2.20 per share to GBP2.40 
per share; and 
 
·    Net assets are GBP15.72m (2008: GBP13.29m). 
 
 
+------------------------------------+------------------------------------+ 
| For further information contact:   |                                    | 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| Greg Melgaard, Managing Director   | 0779 965 7553                      | 
+------------------------------------+------------------------------------+ 
| www.palmariscapital.com            |                                    | 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| John Llewellyn-Lloyd/Harry         | 0207 456 9191                      | 
| Stockdale, Execution Noble &       |                                    | 
| Company Limited (Nominated         |                                    | 
| Adviser)                           |                                    | 
+------------------------------------+------------------------------------+ 
Chairman's Statement 
 
 
Results 
The interim accounts for the six months to 31 December 2009 show a loss of 
GBP73,195 compared with a loss of GBP61,551 last year. The increased loss was 
almost wholly due to lower interest rates, resulting in a reduction in the 
interest receivable. Our net assets stand at GBP15.7M or 10.08p per ordinary 
share. The sole remaining investment is in Scottish Resources Group Limited 
(SRG), the UK's largest surface coal mining company, which includes a renewable 
energy business and a property development business. 
 
Scottish Resources Group 
The SRG audited accounts for the year to March 2009 were published in January 
2010. The result for the year was a loss of GBP9.1M compared with a profit of 
GBP0.2M the previous year. This was the first set of SRG's accounts prepared 
adopting IFRS reporting, resulting in substantial differences in the reported 
figures and comparatives. The loss before exceptional items was GBP5.2M compared 
with a loss of GBP7M in 2008. The exceptional items in the current year produced 
a loss of GBP3.9M compared with a profit of GBP7M the previous year. 
 
During the year coal sales tonnages increased from 2.9M to 3.1M and sales 
revenue increased from GBP111.8M to GBP143.5M. This significant increase was 
achieved because the average sales price increased from GBP1.47 per gigajoule to 
GBP1.77 per gigajoule, an increase of some 20%. 
 
In addition, an increasing number of SRG sales contracts have gas oil and 
inflation adjustment clauses to offset the variable cost pressures facing the 
coal industry. 
SRG invested heavily during the year with over GBP25M of new plant and equipment 
purchased, which will improve its efficiency and ability to increase production 
in future years. This was financed partly by cash generated from operations 
during the year (GBP14.1M before interest) and partly by long-term asset 
finance. 
 
The SRG land and renewable energy business has the land assets and skill base to 
allow it to provide low carbon energy alternatives. This will be a key growth 
area for SRG in the future with the immediate focus being on developing maturing 
wind energy opportunities. The existing wind farm proposals in partnership with 
Infinis are progressing through the planning system at present. SRG Estates is 
also currently promoting 14 large strategic property development sites through 
the planning process which should yield in excess of 300 residential units and 
over 1 million sq ft of commercial space. It should have a ready supply of 
valuable consented sites to realise in the market when economic recovery takes 
place. 
 
The positive effect of increased sales prices is being felt to a greater extent 
in the current year. SRG budgeted for a substantial improvement in operating 
profit and performance to date is in line with expectations. This profit is 
allowing the group to make a significant reduction in its indebtedness. 
In the light of the improved performance of SRG we have decided to increase our 
valuation of SRG shares from GBP2.20 per share to GBP2.40 per share. 
 
Following reports in the press that SRG was planning a flotation on the London 
Stock Exchange later this year, SRG has confirmed thata number of options in 
terms of its capital structure, including flotation, are reviewed on an ongoing 
basis. 
 
Conclusion 
Against a background of higher contracted coal prices for 2009/10 and the 
long-term potential for sustained demand for coal as an energy source, the 
outlook for SRG is positive. Its profits for the year to March 2010 are expected 
to be excellent, and we still hope that our investment will be realisable at a 
good valuation within the next year or so. 
 
 
 
T.P. Noble 
Chairman 
19 March, 2010 
 
 
UNAUDITED PROFIT AND LOSS Account 
for the period ended 31 December 2009 
+-------------------------------+-------------+-------------+-----------+ 
|                               | (Unaudited) | (Unaudited) | (Audited) | 
+-------------------------------+-------------+-------------+-----------+ 
|                               |           6 |           6 |        12 | 
|                               |      months |      months |    months | 
|                               |          to |          to |        to | 
+-------------------------------+-------------+-------------+-----------+ 
|                               |          31 |          31 |        30 | 
|                               |         Dec |         Dec |      June | 
|                               |        2009 |        2008 |      2009 | 
+-------------------------------+-------------+-------------+-----------+ 
|                               |         GBP |         GBP |       GBP | 
+-------------------------------+-------------+-------------+-----------+ 
| Turnover                      |           - |           - |         - | 
+-------------------------------+-------------+-------------+-----------+ 
|                               |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
| Cost of sales                 |           - |           - |         - | 
+-------------------------------+-------------+-------------+-----------+ 
| Gross profit                  |           - |           - |         - | 
+-------------------------------+-------------+-------------+-----------+ 
|                               |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
| Administrative expenses       |    (81,793) |    (80,405) | (165,332) | 
+-------------------------------+-------------+-------------+-----------+ 
| Operating (loss)              |    (81,793) |    (80,405) | (165,332) | 
+-------------------------------+-------------+-------------+-----------+ 
|                               |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
| Investment and other income   |       8,598 |      18,854 |    29,169 | 
+-------------------------------+-------------+-------------+-----------+ 
| (Loss) on ordinary activities |    (73,195) |    (61,551) | (136,163) | 
| before taxation               |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
|                               |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
| Taxation on (loss) on         |           - |           - |         - | 
| ordinary activities           |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
|                               |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
| (Loss) on ordinary activities |    (73,195) |    (61,551) | (136,163) | 
| after taxation                |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
|                               |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
| (Loss) for the financial      |    (73,195) |    (61,551) | (136,163) | 
| period                        |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
|                               |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
| Earnings per ordinary share   |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
| (Loss) per ordinary share     |     (0.05)p |     (0.04)p |   (0.09)p | 
+-------------------------------+-------------+-------------+-----------+ 
|                               |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
| Diluted (loss) per ordinary   |     (0.05)p |     (0.04)p |   (0.09)p | 
| share                         |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
|                               |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
| Net assets per share          |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
| Net assets per ordinary share |      10.08p |       8.52p |     9.30p | 
+-------------------------------+-------------+-------------+-----------+ 
|                               |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
| Diluted net assets per        |      10.08p |       8.52p |     9.30p | 
| ordinary share                |             |             |           | 
+-------------------------------+-------------+-------------+-----------+ 
 
 
UNAUDITED BALANCE SHEET 
As at 31 December 2009 
+----------------------------+-------+-------------+-------------+-------------+ 
|                            |       | (Unaudited) | (Unaudited) |   (Audited) | 
+----------------------------+-------+-------------+-------------+-------------+ 
|                            |       |       As at |       As at |       As at | 
|                            |       |             |             |             | 
+----------------------------+-------+-------------+-------------+-------------+ 
|                            |       |          31 |          31 |          30 | 
|                            |       |         Dec |         Dec |        June | 
|                            |       |        2009 |        2008 |        2009 | 
+----------------------------+-------+-------------+-------------+-------------+ 
|                            | Notes |         GBP |         GBP |         GBP | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Fixed assets               |       |             |             |             | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Investments                |     1 |  15,456,000 |  12,880,000 |  14,168,000 | 
+----------------------------+-------+-------------+-------------+-------------+ 
|                            |       |  15,456,000 |  12,880,000 |  14,168,000 | 
+----------------------------+-------+-------------+-------------+-------------+ 
|                            |       |             |             |             | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Current assets             |       |             |             |             | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Trade debtors              |       |       5,750 |       2,906 |       2,875 | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Other debtors              |       |      14,590 |      14,729 |      13,409 | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Cash                       |       |     280,262 |     422,901 |     339,551 | 
+----------------------------+-------+-------------+-------------+-------------+ 
|                            |       |     300,602 |     440,536 |     355,835 | 
+----------------------------+-------+-------------+-------------+-------------+ 
|                            |       |             |             |             | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Creditors                  |       |             |             |             | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Amounts falling due within |       |             |             |             | 
| one year                   |       |             |             |             | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Other creditors            |       |    (41,572) |    (33,699) |    (23,610) | 
+----------------------------+-------+-------------+-------------+-------------+ 
|                            |       |    (41,572) |    (33,699) |    (23,610) | 
+----------------------------+-------+-------------+-------------+-------------+ 
|                            |       |             |             |             | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Net current assets         |       |     259,030 |     406,837 |     332,225 | 
+----------------------------+-------+-------------+-------------+-------------+ 
|                            |       |             |             |             | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Net assets                 |       |  15,715,030 |  13,286,837 |  14,500,225 | 
+----------------------------+-------+-------------+-------------+-------------+ 
|                            |       |             |             |             | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Capital and reserves       |       |             |             |             | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Called up equity share     |       |   7,796,665 |   7,796,665 |   7,796,665 | 
| capital                    |       |             |             |             | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Unrealised appreciation    |       |   9,016,000 |   6,440,000 |   7,728,000 | 
| reserve                    |       |             |             |             | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Capital reserve            |     2 | (1,217,356) | (1,217,356) | (1,217,356) | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Share premium              |       |     351,500 |     351,500 |     351,500 | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Profit and loss account    |     2 |   (231,779) |    (83,972) |   (158,584) | 
+----------------------------+-------+-------------+-------------+-------------+ 
| Shareholders' funds        |       |  15,715,030 |  13,286,837 |  14,500,225 | 
+----------------------------+-------+-------------+-------------+-------------+ 
 
 
 
CASH FLOW STATEMENT 
for the period ended 31 December 2009 
+---------------------------------------------+-------+-------------+-------------+-----------+ 
|                                             |       | (UNAUDITED) | (UNAUDITED) | (AUDITED) | 
+---------------------------------------------+-------+-------------+-------------+-----------+ 
|                                             |       |      31 Dec |      31 Dec |        30 | 
|                                             |       |        2009 |        2008 |      June | 
|                                             |       |             |             |      2009 | 
+---------------------------------------------+-------+-------------+-------------+-----------+ 
|                                             | Notes |         GBP |         GBP |       GBP | 
+---------------------------------------------+-------+-------------+-------------+-----------+ 
| Net cash (outflow) from operating           |     A |    (67,887) |    (68,562) | (162,227) | 
| activities                                  |       |             |             |           | 
+---------------------------------------------+-------+-------------+-------------+-----------+ 
| Returns on investments and servicing of     |    B  |       8,598 |      18,854 |    29,169 | 
| finance                                     |       |             |             |           | 
+---------------------------------------------+-------+-------------+-------------+-----------+ 
| Cash (outflow) before financing             |       |    (59,289) |    (49,708) | (133,058) | 
+---------------------------------------------+-------+-------------+-------------+-----------+ 
 
 
NOTES TO THE CASH FLOW STATEMENT 
for the period ended 31 December 2009 
 
A. Reconciliation of operating loss to operating cash flows 
+-------------------------------------------+-------------+-------------+-----------+ 
|                                           | (UNAUDITED) | (UNAUDITED) | (AUDITED) | 
+-------------------------------------------+-------------+-------------+-----------+ 
|                                           |      31 Dec |          31 |        30 | 
|                                           |        2009 |         Dec |      JunE | 
|                                           |             |        2008 |      2009 | 
+-------------------------------------------+-------------+-------------+-----------+ 
|                                           |         GBP |         GBP |       GBP | 
+-------------------------------------------+-------------+-------------+-----------+ 
| Operating (loss)                          |    (81,793) |    (80,405) | (165,332) | 
+-------------------------------------------+-------------+-------------+-----------+ 
| (Increase)/decrease in debtors            |     (4,056) |       (359) |       992 | 
+-------------------------------------------+-------------+-------------+-----------+ 
| Increase in creditors                     |      17,962 |      12,202 |     2,113 | 
+-------------------------------------------+-------------+-------------+-----------+ 
| Net cash (outflow) from operating         |    (67,887) |    (68,562) | (162,227) | 
| activities                                |             |             |           | 
+-------------------------------------------+-------------+-------------+-----------+ 
 
 
B.  Analysis of cash flows 
+----------------------------------+--+--+--------+--------+--------+ 
| Returns on investments and       |  |  |        |        |        | 
| servicing of finance             |  |  |        |        |        | 
+----------------------------------+--+--+--------+--------+--------+ 
| Interest received                |  |  | 1,098  | 11,354 | 14,118 | 
+----------------------------------+--+--+--------+--------+--------+ 
| Fees and commissions received    |  |  | 7,500  |  7,500 | 15,051 | 
+----------------------------------+--+--+--------+--------+--------+ 
| Net cash inflow                  |  |  | 8,598  | 18,854 | 29,169 | 
+----------------------------------+--+--+--------+--------+--------+ 
 
 
C.  Analysis of net funds 
+----------------------------------------+--+----+---------+----------+---------+ 
|                                        |  |    |  1 JULY |     Cash |  31 DEC | 
|                                        |  |    |    2009 |     Flow |    2009 | 
+----------------------------------------+--+----+---------+----------+---------+ 
|                                        |  |    |     GBP |      GBP |     GBP | 
+----------------------------------------+--+----+---------+----------+---------+ 
| Cash                                   |  |    | 339,551 | (59,289) | 280,262 | 
+----------------------------------------+--+----+---------+----------+---------+ 
 
Reconciliation of net funds 
+----------------------------------------+-------------+-------------+-----------+ 
|                                        | (UNAUDITED) | (UNAUDITED) | (AUDITED) | 
+----------------------------------------+-------------+-------------+-----------+ 
|                                        |      31 DeC |      31 Dec |        30 | 
|                                        |        2009 |        2008 |      JunE | 
|                                        |             |             |      2009 | 
+----------------------------------------+-------------+-------------+-----------+ 
|                                        |         GBP |         GBP |       GBP | 
+----------------------------------------+-------------+-------------+-----------+ 
| (Decrease) in cash in the period       |    (59,289) |    (49,708) | (133,058) | 
+----------------------------------------+-------------+-------------+-----------+ 
| Net funds at beginning of period       |     339,551 |     472,609 |   472,609 | 
+----------------------------------------+-------------+-------------+-----------+ 
| Net funds at end of period             |     280,262 |     422,901 |   339,551 | 
+----------------------------------------+-------------+-------------+-----------+ 
 
 
NOTES TO THE ACCOUNTS 
for the period ended 31 December 2009 
 
 
1.Details of investments are as follows: 
 
+------------------------------------+-------------+-------------+------------+ 
|                                    | (unaudited) | (unaudited) |  (audited) | 
+------------------------------------+-------------+-------------+------------+ 
|                                    |           6 |           6 |         12 | 
|                                    |      months |      months |     months | 
|                                    |          to |          to |         to | 
+------------------------------------+-------------+-------------+------------+ 
|                                    |          31 |          31 |         30 | 
|                                    |         Dec |         dec |       june | 
|                                    |        2009 |        2008 |       2009 | 
+------------------------------------+-------------+-------------+------------+ 
|                                    |         GBP |         GBP |        GBP | 
+------------------------------------+-------------+-------------+------------+ 
| Shares at Directors' valuation     |             |             |            | 
+------------------------------------+-------------+-------------+------------+ 
| Scottish Resources Group Ltd.      |  15,456,000 |  12,880,000 | 14,168,000 | 
+------------------------------------+-------------+-------------+------------+ 
|                                    |  15,456,000 |  12,880,000 | 14,168,000 | 
+------------------------------------+-------------+-------------+------------+ 
 
 
2.  The calculation of the basic (loss) per ordinary share is based on the 
following: 
+------------------------------------+-------------+-------------+-------------+ 
|                                    | (unaudited) | (unaudited) |   (audited) | 
+------------------------------------+-------------+-------------+-------------+ 
|                                    |           6 |           6 |          12 | 
|                                    |      months |      months |      months | 
|                                    |          to |          to |          to | 
+------------------------------------+-------------+-------------+-------------+ 
|                                    |      31 Dec |      31 dec |          30 | 
|                                    |        2009 |        2008 |        june | 
|                                    |             |             |        2009 | 
+------------------------------------+-------------+-------------+-------------+ 
|                                    |         GBP |         GBP |         GBP | 
+------------------------------------+-------------+-------------+-------------+ 
| (Loss)                             |    (73,195) |    (61,551) |   (136,163) | 
+------------------------------------+-------------+-------------+-------------+ 
| Weighted average number of         |             |             |             | 
| ordinary                           |             |             |             | 
+------------------------------------+-------------+-------------+-------------+ 
| shares in issue during the period  | 155,933,304 | 155,933,304 | 155,933,304 | 
+------------------------------------+-------------+-------------+-------------+ 
 
 
3.  The interim financial statements are unaudited and do not constitute 
statutory financial statements as defined in Section 396 of the Companies Act 
2006. These statements have been prepared on the basis of the accounting 
policies set out in the Company's 2009 Annual Report and Accounts. 
 
          The financial statements for the year ended 30 June, 2009 are an 
abridged statement; the full audited financial statements for the year to 30 
June 2009, which were unqualified, have been lodged with the Registrar of 
Companies. 
 
4.       Copies of the Interim Results for Palmaris Capital PLC will be posted 
to shareholders on 23 March, 2010 and may be obtained free of charge from the 
Company's registered office or from the Company's nominated adviser and broker, 
Execution Noble & Company Limited, The Old Truman Brewery, 91 Brick Lane, London 
E1 6QL. 
 
 
19 March, 2010 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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