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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Quoram | LSE:QRM | London | Ordinary Share | GB00B5M29F66 | ORD 0.25P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 0.10 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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0 | 0 | N/A | 0 |
TIDMBBE
RNS Number : 0971O
Bluebird Energy PLC
08 October 2012
BLUEBIRD ENERGY PLC
(AIM: BBE)
Final Results for the Year Ended 30 June 2012
Bluebird Energy PLC ("Bluebird" or "the Company") is pleased to announce its final results for the year ended 30 June 2012.
Contacts Bluebird Energy plc www.bluebirdenergy.net James Ede-Golightly +44 (0) 1225 428139 WH Ireland Limited www.wh-ireland.co.uk John Wakefield/Marc Davies +44 (0) 117 945 3470
Chairman's Statement
Bluebird's first year as a public company has been a difficult and disappointing one. A strategy is now underway to consolidate the remaining balance sheet value prior to either renewed investment or return of capital to shareholders.
In July 2011, Bluebird obtained admission to the AIM market of the London Stock Exchange, accompanied by an institutional placing raising GBP2 million before expenses and a further amount of approximately GBP0.2 million by means of an Open Offer.
Following admission to AIM, the Company commenced a strategic review in August. This review was triggered by Running Foxes sale of its operator interest at the Centurion project in Kansas, in which Bluebird held a net 50% working interest. Centurion was Bluebird's only producing asset.
In October the Centurion interest was sold for gross proceeds of US$3.1m and impairments on the US portfolio of over US$15m were subsequently recognised on publication of the June 2011 year end accounts. David Bramhill stepped down as executive chairman in December 2011.
In 2012, the residual value in Bluebird is predominantly represented by the Company's stake in Wessex Exploration and cash balances, which can be summarised as follows:
37,055,245 Wessex Shares GBP2.59m at 7.38p (being the closing price on 3 October 2012)* Cash balance at 30 June GBP1.28m 2012
In the US, Solitaire is the only asset to which the Company has continued to assign any meaningful value. The Company is in the process of marketing this asset for farm-out or sale. Whilst the decline and on-going weakness in the gas price has diminished interest in Solitaire as a Niobrara biogenic shallow gas play, we are evaluating whether the acreage may have potential as a Mississippian oil play. Elsewhere in the US portfolio, the focus is on securing a complete exit from the Marcellus and Revloc Projects at minimal cost. Specifically, the operator at Revloc is currently in the process of commissioning contractors to Plug and Abandon seven wells in Cambria County, Pennsylvania.
Having received notification from the Irish government licensing agency, the Petroleum Affairs Division, that they do not propose granting any new authorisations for shale gas exploration in the near future, we do not intend to focus on this jurisdiction as an area for development.
Upon my appointment in March 2012, the Board commenced a cost reduction programme which is on-going and is intended to minimise the strain of working capital on cash balances. While operating costs fell by more than half in the six months ended 30 June 2012 compared to the prior half year, the cost reduction initiatives are on-going and the Board expects a further significant reduction in operating costs in the current financial year.
In June 2012, Bluebird distributed just under half of its holding in Wessex Exploration PLC to shareholders by way of a GBP2.15m dividend in specie. This decision reflected enthusiasm from shareholders for a return of capital as well as the Board's conclusion that Bluebird was not creating additional value for shareholders through its custody of this interest.
Board Changes
Due to other work commitments, Andy Yeo and Frederick Dekker decided to step down with effect from 28 September 2012. We would like thank Andy and Fred for their contributions to the Company and wish them well for the future.
Given the reduced level of activity in the group, I will assume executive responsibilities on an interim basis with support from Mike Thomsen, who represents Osceola's interests in the US. The need to recruit a board level executive function will be kept under review.
We announced recently the appointment of Gordon Hall as an independent non-executive director. Gordon is a non-executive director of Nanoco Group Plc and International Brand Licensing plc. After an early career in teaching, Gordon built up substantial international sales, management and development expertise with Rank Xerox and Abbott Laboratories. He became Chief Executive Officer of Shield Diagnostic Ltd (now Axis Shield plc) in 1990 and was responsible for listing the Company on the London Stock Exchange.
Outlook
The immediate priority is to complete the process of simplifying the asset base and operating structure while reducing overheads to conserve cash. Once completed, the Company will be suitably positioned either to pursue renewed investment or return capital to shareholders.
Consolidated Income Statement
for the year ended 30 June 2012
Notes 2012 2011 Continuing operations: US$ US$ Revenue 5,484 6,202 Gross profit 5,484 6,202 Administrative expenses (2,713,735) (2,539,014) Exceptional administrative expenses 2 (972,283) (9,549,233) Total administrative expenses (3,686,018) (12,088,247) Operating loss 2 (3,680,534) (12,082,045) Finance income 4 6,952 2,134 Profit / (loss) on disposal of available-for-sale investments 2,568,779 (132,145) Share of losses of associates 11 (35,527) (48,492) Loss before taxation (1,140,330) (12,260,548) Taxation 5 (8,074) (7,932) Loss for the financial year from continuing operations (1,148,404) (12,268,480) Discontinued operations: Loss for the financial year from discontinued operations 6 (418,236) (5,341,605) Loss for the financial year (1,566,640) (17,610,085) Attributable to: Equity shareholders of the Company (1,566,640) (17,610,085) Loss per share from continuing and discontinued operations Basic and diluted loss per share (US cents) 7 (0.32) (6.94) Loss per share from continuing operations Basic and diluted loss per share (US cents) 7 (0.23) (4.83)
Consolidated Statement of Comprehensive Income
for the year ended 30 June 2012
Notes 2012 2011 US$ US$ Loss for the financial year (1,566,640) (17,610,085) Other comprehensive income Available-for-sale financial assets: Fair value gains / (losses) arising during the year 3,806,487 (5,683) Less / plus: reclassification adjustments for (gains) / losses included in profit or loss (2,568,779) 138,753 Tax on gain on available-for-sale financial assets (263,077) (154,515) Foreign exchange (losses) / gains on consolidation (45,100) 289,410 Other comprehensive income for the financial year net of tax 929,531 267,965 Total comprehensive income for the financial year (637,109) (17,342,120)
Consolidated Balance Sheet
as at 30 June 2012
Notes 2012 2011 Assets US$ US$ Non-current assets Property, plant and equipment 8 771,387 1,129,546 Intangible assets 9 911,932 4,620,131 Available-for-sale financial assets 13 3,989,558 2,751,673 5,672,877 8,501,350 Current assets Trade and other receivables 14 96,576 181,328 Cash and cash equivalents 15 1,995,884 605,697 2,092,460 787,025 Total assets 7,765,337 9,288,375 Equity and liabilities Capital and reserves attributable to the Company's equity shareholders Share capital 16 2,209,610 1,317,150 Share premium account 5,025,369 2,536,487 Foreign exchange translation reserve (2,572,253) (2,527,153) Retained earnings 1,433,077 5,347,821 Share-based payment reserve 853,837 298,562 Total equity 6,949,640 6,972,867 Current liabilities Trade and other payables 22 110,976 1,873,203 Non-current liabilities Deferred tax 5 704,721 441,644 Provision for associate losses 11 - 661 Total liabilities 815,697 2,315,508 Total equity and liabilities 7,765,337 9,288,375
Consolidated Statement of Changes in Equity
for the year ended 30 June 2012
Foreign exchange Share-based Share premium translation Retained payment Share capital account reserve earnings reserve Total US$ US$ US$ US$ US$ US$ Balance at 1 July 2011 1,317,150 2,536,487 (2,527,153) 5,347,821 298,562 6,972,867 For the year ended 30 June 2012 Loss for the financial year - - - (1,566,640) - (1,566,640) Other comprehensive income: Fair value gain on available-for-sale financial assets - - - 1,237,708 - 1,237,708 Tax on gain on available-for-sale investments - - - (263,077) - (263,077) Foreign exchange losses on consolidation - - (45,100) - - (45,100) -------------- -------------- ----------------- ------------- ------------ ------------- Total comprehensive income - - (45,100) (592,009) - (637,109) Share-based payments - - - - 555,275 555,275 Issue of share capital 892,460 2,672,148 - - - 3,564,608 Issue costs - (183,266) - - - (183,266) Specie dividend - - - (3,322,735) - (3,322,735) Balance at 30 June 2012 2,209,610 5,025,369 (2,572,253) 1,433,077 853,837 6,949,640 ============== ============== ================= ============= ============ ============= Balance at 1 July 2010 1,175,438 26,247,549 (2,816,563) (3,268,197) 174,909 21,513,136 For the year ended 30 June 2011 Loss for the financial year - - - (17,610,085) - (17,610,085) Other comprehensive income: Fair value gain on available-for-sale financial assets - - - 133,070 - 133,070 Tax on gain on available-for-sale investments - - - (154,516) - (154,516) Foreign exchange losses on consolidation - - 289,410 - - 289,410 -------------- -------------- ----------------- ------------- ------------ ------------- Total comprehensive income - - 289,410 (17,631,531) - (17,342,121) Share-based payments - - - - 123,653 123,653 Issue of share capital 141,712 2,692,514 - - - 2,834,226 Issue costs - (156,027) - - - (156,027) Capital reduction - (26,247,549) - 26,247,549 - - Balance at 30 June 2011 1,317,150 2,536,487 (2,527,153) 5,347,821 298,562 6,972,867 ============== ============== ================= ============= ============ =============
Consolidated Statement of Cash Flows
for the year ended 30 June 2012
Notes 2012 2011 US$ US$ Cash flow from operating activities 27 (3,046,904) (1,715,655) Cash flow from investing activities Purchase of intangible assets (741,124) (777,206) Purchase of property, plant and equipment (510,844) (370,418) Investments in associates - (20,000) Purchase of available-for-sale investments (839,736) - Proceeds from disposal of business 3,100,000 - Proceeds from disposal of available-for-sale investments - 112,251 Interest received 6,952 2,134 Net cash generated from / (used in) investing activities 1,015,248 (1,053,239) Cash flow from financing activities Proceeds on issue of new shares 3,564,608 2,834,226 Expenses of new share issue (183,266) (156,027) Net cash generated from financing activities 3,381,342 2,678,199 Net increase / (decrease) in cash and cash equivalents 1,349,686 (90,695) Cash and cash equivalents at beginning of financial year 605,697 701,181 Effects of exchange rate changes 40,501 (4,789) Cash and cash equivalents at end of financial year 15 1,995,884 605,697
Notes to the Financial Statements
1 Segmental Reporting
Operating segments
The Group has only one operating segment: the production of, exploration for and investment in hydrocarbons in one geographical area, the United States of America.
The Group has one main customer, representing 100% of the sales revenue.
2 Operating Loss 2012 2011 US$ US$ Operating loss is stated after charging: Fees payable to the Company's auditor for the audit of the annual statements 30,969 47,839 Fees payable to the Company's auditor and its associates for other services: Other services relating to reporting accountant work in respect of the admission to AIM - 127,570 Other services relating to taxation 16,001 6,378 Other services 5,559 11,561 Research costs 17,765 27,816 Equity settled share-based payments 555,275 123,653 Exceptional administrative expenses: Impairment of intangible assets 764,126 6,091,907 Impairment of land assets 208,157 3,240,072 Impairment of plant and machinery assets - 217,254 972,283 9,549,233 3 Directors and Employees The aggregate payroll costs of the employees, including the Executive Directors, were as follows: 2012 2011 US$ US$ Staff costs Wages and salaries 544,311 549,160 Social security costs 65,596 49,976 609,907 599,136 Equity settled share-based payments 502,655 58,841 1,112,562 657,977 Average monthly number of persons employed by the Group (all of whom are management) during the year were: 2012 2011 Number Number UK 4 4 US 2 1 6 5 US$ US$ Compensation of key management was as follows: Short term benefits 526,841 549,160 Share-based payments 502,655 58,841 1,029,496 608,001 Social security costs 64,621 49,976 1,094,117 657,977 Key management consists of all the directors and M. Thomsen. Details of each director's remuneration and their share options are included in the Report of the Directors. Highest paid director: 2012 2011 US$ US$ Aggregate emoluments and benefits 315,659 229,827 4 Finance Income 2012 2011 US$ US$ Bank interest 6,952 2,134 5 Taxation There was a small current tax charge of US$8,074 paid by a US subsidiary in the year, but no other current tax charge for the year due to the loss incurred (2011: US$7,932). A deferred tax charge of US$263,077 arising on fair value movements on available-for-sale financial assets was recognised in equity during the year (2011: US$154,515). Reconciliation of the effective tax charge 2012 2011 US$ US$ Loss before taxation (1,558,566) (17,602,153) Loss before tax multiplied by standard rate of corporation tax in the UK of 25.5% (2011: 27%) (397,434) (4,928,603) Tax effects of: Other expenses not deductible for tax purposes 98,125 155,190 Tax losses not utilised within the year 307,383 4,781,345 Tax expense and effective tax rate 8,074 7,932 The amount of unutilised tax losses are as follows: 2012 2011 US$ US$ Unutilised tax losses 3,408,660 5,705,287 The unutilised tax losses have decreased during the current financial year due to the chargeable gain realised on the investments disposed by way of an in specie dividend to the Company's shareholders. A deferred tax asset in respect of trading losses has not been recognised due to the uncertainty over timing of future profits. The trading losses are recoverable against suitable future trading profits. Deferred tax liabilities arising as a result of the gains on available-for-sale financial assets are recognised in the balance sheet as follows: Deferred tax liabilities 2012 2011 US$ US$ At 1 January 441,644 287,129 Deferred tax charge recognised in equity during the period 263,077 154,515 At 31 December 704,721 441,644 6 Discontinued operations On 7 October 2011 Bluebird completed the disposal of its interest in the Centurion project, receiving in consideration US$3,100,000. Analysis of profit for the period from discontinued operations 2012 2011 US$ US$ Sales 28,992 290,113 Impairment of project costs - (5,631,718) Profit before tax 28,992 (5,341,605) Loss on disposal of Centurion project (447,228) - Loss for the period from discontinued operations (418,236) (5,341,605) Cash flows from discontinued operations 2012 2011 US$ US$ Net cash (outflows) / inflows from operating activities (418,236) 290,113 Net cash inflows / (outflows) from investing activities 1,866,596 (852,268) Net cash inflows/(outflows) 1,448,360 (562,155) 7 Loss Per Share Basic loss per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. Given the Group's reported loss for the year share options are not taken into account when determining the weighted average number of ordinary shares in issue during the year and therefore the basic and diluted earnings per share are the same. Basic loss per share 2012 2011 US Cents US Cents Loss per share from continuing operations (0.23) (4.83) Loss per share from discontinued operations (0.09) (2.11) ------------ ------------- Total basic loss per share (0.32) (6.94) The losses and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows: 2012 2011 US$ US$ Loss used in the calculation of total basic and diluted earnings per share (1,566,640) (17,610,085) Loss for the year from discontinued operations used in the calculation of basic and diluted loss per share from discontinued operations (418,236) (5,341,605) ------------ ------------- Loss used in the calculation of basic earnings per share from continuing operations (1,148,404) (12,268,480) 2012 2011 Number Number Number of shares Weighted average number of ordinary shares for the purposes of basic earnings per share 493,844,518 253,650,286 If the Company's share options were taken into consideration in respect of the Company's weighted average number of ordinary shares for the purposes of diluted earnings per share, it would be as follows: Number of shares Potential dilutive effect of share options and warrants 15,207,650 13,630,548 Weighted average number of ordinary shares for the purposes of diluted earnings per share 509,052,168 267,280,834 8 Property, Plant and Equipment Leasehold Plant and land equipment Total US$ US$ US$ Cost At 1 July 2010 6,323,352 1,123,093 7,446,445 Additions 229,636 651,363 880,999 At 30 June 2011 6,552,988 1,774,456 8,327,444 At 30 June 2012 6,552,988 1,774,456 8,327,444 Accumulated depreciation and impairment At 1 July 2010 1,152,337 115,101 1,267,438 Charge 646,328 57,148 703,476 Impairment 3,624,877 1,602,107 5,226,984 At 30 June 2011 5,423,542 1,774,356 7,197,898 Charge 150,002 - 150,002 Impairment 208,157 - 208,157 At 30 June 2012 5,781,701 1,774,356 7,556,057 Net book value At 30 June 2012 771,287 100 771,387 At 30 June 2011 1,129,446 100 1,129,546 At 30 June 2010 5,171,015 1,007,992 6,179,008 During the year a decision was taken to discontinue all projects with the exception of the Solitaire project. As a result all other project assets remaining on the balance sheet have been fully impaired. 9 Intangible Assets Exploration Royalty costs interests Total US$ US$ US$ Cost At 1 July 2010 13,283,706 100,000 13,383,706 Additions 2,169,184 - 2,169,184 At 30 June 2011 15,452,890 100,000 15,552,890 Additions 155,927 - 155,927 Disposals (6,962,060) - (6,962,060) At 30 June 2012 8,646,757 100,000 8,746,757 Amortisation and impairment At 1 July 2010 978,792 - 978,792 Charge - - - Impairment 9,953,967 - 9,953,967 At 30 June 2011 10,932,759 - 10,932,759 Impairment 764,126 - 764,126 Disposals (3,862,060) - (3,862,060) At 30 June 2012 7,834,825 - 7,834,825 Net book value At 30 June 2012 811,932 100,000 911,932 At 30 June 2011 4,520,131 100,000 4,620,131 At 30 June 2010 12,304,914 100,000 12,404,914 During the year a decision was taken to discontinue all projects with the exception of the Solitaire project. As a result all other project assets remaining on the balance sheet have been fully impaired. 10 Investment in Jointly Controlled Operations The Group has entered into the following unincorporated Jointly Controlled Operations, which are proportionally consolidated within the Group's financial statements: Name of project Principal activities Group interest Revloc Oil and gas development 50% At the balance sheet dates there were no contingent liabilities or contingent assets in respect of any of the Jointly Controlled Operations. At the balance sheet dates there were no capital commitments in respect of any of the Jointly Controlled Operations. 11 Investment in Associates The Group previously held a 46.64% investment in start-up wind energy company, Altawind Inc which is incorporated in the USA. This has been included within the Group's financial statements using equity accounting. On 14 February 2012, this investment was disposed with no further liabilities retained by the Group. 12 Disposal of business On 7 October 2011 Bluebird completed the disposal of its interest in the Centurion project, receiving in consideration US$3,100,000. Details of assets disposed US$ Non-current assets: Intangible assets 3,100,000 Net assets disposed 3,100,000 Project costs expensed in the period (447,288) Consideration received (3,100,000) Loss on disposal (447,288) Consideration on disposal US$ Cash consideration 3,100,000 13 Available-for-Sale Financial Assets 2012 2011 US$ US$ Available-for-sale financial assets 3,989,558 2,751,673 The available-for-sale financial assets consist of listed investments and the fair value is based on bid quoted market prices at the balance sheet date. On 6 June 2012, the Company issued a dividend in specie of part of its holding in Wessex Exploration PLC, consisting of 27,688,689 shares. This represents 1 Wessex share, valued at 7.75p, for every 18 shares held in the Company. This is accounted for as a disposal of these available-for-sale financial assets. The following table shows the aggregate movement in the Group's financial assets during the year: 2012 2011 US$ US$ At beginning of the year 2,751,673 2,565,480 Additions 839,736 - Disposals (3,322,735) (53,373) Impairment (45,618) - Foreign exchange differences (39,985) 106,496 Revaluation through equity 3,806,487 133,070 At end of the year 3,989,558 2,751,673 14 Trade and Other Receivables 2012 2011 US$ US$ Trade receivables - 73,614 Other receivables 62,161 54,374 Amounts due from associate undertaking - 32,590 Prepayments and accrued income 34,415 20,750 96,576 181,328 The directors consider the carrying value of trade and other receivables are approximate to their fair value. All of the Group's receivables have been reviewed for indications of impairment. None of the receivables were found to be impaired as at 30 June 2012 (2011: US$nil). No unimpaired receivables are past due as at the reporting date (2011: US$nil). 15 Cash and Cash Equivalents 2012 2011 US$ US$ Cash at bank (GBP) 258,566 418,509 Cash at bank (USD) 1,737,318 187,188 1,995,884 605,697 16 a) Share Capital 2012 2011 GBP GBP Authorised 500,000,000 shares of 0.25 pence 1,250,000 1,250,000 US$ US$ Allotted, issued and fully paid 498,196,408 shares (2011: 275,596,724 shares) of 0.25 pence 2,209,610 1,317,150 Allotments during the year During the year ended 30 June 2012 the Company issued a total 222,599,684 ordinary shares (2011: 35,110,000) for a premium net of issue costs of US$2,488,882 (2011: US$2,536,487). Date Price per Number of shares Total consideration share (Sterling) issued received (US$) 6 July 2011 1p 200,000,000 3,200,080 27 July 2011 1p 22,599,684 364,528 16 b) Share-Based Payments - Options and Warrants The Company has a share option scheme for all directors and senior management. Options are exercisable at a price equal to the average market price of the Company's shares on the date of grant. The vesting period is one, two and three years - one third of the options vesting in each period. The options are settled in equity once exercised. The Company has also issued share warrants in the prior year which were exercisable immediately. If the options remain unexercised after a period of 10 years from the date of grant, the options expire. Options are forfeited if the employee leaves the Company before the options vest. If the warrants remain unexercised after a period of 2 years from the date of grant, the warrants expire. The issue of warrants constituted a transaction with parties other than employees for which the fair value of services received cannot be reliably estimated, as they were granted on a 1 for 8 basis to shareholders as part of an open offer and placing that took place in February 2011, and therefore the services received have been measured by reference to the fair value of the warrants granted, measured at the date of the placing. Details of the number of share options and warrants and the weighted average exercise price (WAEP) outstanding during the year are as follows: 2012 Number of WAEP Number WAEP options GBP of GBP warrants Outstanding at the beginning & end of the year 25,000,000 0.04 3,750,000 0.12 Number exercisable at 30 June 2012 8,700,000 0.03 3,750,000 0.12 2011 Number of WAEP Number WAEP options GBP of GBP warrants Outstanding at the beginning of the year 8,700,000 0.03 - - Issued 16,300,000 0.05 3,750,000 0.12 Outstanding at the year end 25,000,000 0.04 3,750,000 0.12 Number exercisable at 30 June 2011 3,200,000 0.01 3,750,000 0.12 The fair values of share options issued in previous financial years were calculated using the binomial pricing model. The inputs into the model are as follows: 20 February Date of grant 5 May 2007 2008 Number granted 3,200,000 7,000,000 Share price at date of grant 0.25p 4p Exercise price 1p 4p Expected volatility 51% 51% Expected life 3 years 3 years Risk free rate 5.00% 4.70% Expected dividend yield 0% 0% Fair value of options granted at date of grant 0.08p 2.20p Exit rate 0% 0% Earliest vesting 5 May 2010 20 February date 2011 Expiry date 5 May 2017 20 February 2018 Expected volatility was determined based on the historic volatility of four comparator companies as suggested by management. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. The fair values of share options and warrants issued in the prior financial year were calculated using the Black Scholes model. The inputs into the model are as follows: 4 February 19 May 19 May Date of grant 2011 2011 2011 Number granted 3,750,000 11,500,000 4,800,000 Share price at date of grant 5.0p 5.0p 5.0p Exercise price 12p 5.0p 5.0p Expected volatility 85% 85% 85% Expected life 1 year 5.5, 6 and 5.5, 6 and 6.5 years 6.5 years Risk free rate 2.80% 2.34% 2.34% Expected dividend yield 0% 0% 0% Fair value at date of grant 0.51p 3.61p 3.61p Earliest vesting date 4 February 19 May 2012 19 May 2012 2011 Expiry date 4 February 19 May 2021 19 May 2021 2013 For May 2011 options, these vest 33.3% after 1 year, 33.3% after 2 years and 33.3% after 3 years. Expected volatility was determined based on the historic volatility of comparable companies. The expected life used in the model has been adjusted, based on the management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. The Group recognised total expenses of US$555,275 (2011: US$123,653) related to equity-settled share-based payment transactions during the year. 17 Financial Instruments Classification of financial instruments The tables below set out the Group's accounting classification of each class of its financial assets and liabilities. Financial assets Loans and Total carrying At 30 June 2012 Available-for-sale other receivables value US$ US$ US$ Available-for-sale financial assets 3,989,558 - 3,989,558 Trade receivables - - - Other receivables - 62,161 62,161 Cash and cash equivalents - 1,995,884 1,995,884 3,989,558 2,058,045 6,047,603 Loans and Total carrying At 30 June 2011 Available-for-sale other receivables value US$ US$ US$ Available-for-sale financial assets 2,751,673 - 2,751,673 Trade receivables - 73,613 73,613 Other receivables - 54,374 54,374 Cash and cash equivalents - 605,697 605,697 2,751,673 733,684 3,485,357 All of the above financial assets' carrying values approximate to their fair values, as at 30 June 2012 and 2011, given their nature and short times to maturity. Under IFRS 7 Financial Instruments: Disclosures, the available-for-sale assets are classified under the fair value hierarchy as level 1. Financial liabilities Measured at amortised Total carrying At 30 June 2012 cost value US$ US$ Trade payables 80,546 80,546 Accruals 30,430 30,430 110,976 110,976 Financial liabilities Measured at amortised Total carrying At 30 June 2011 cost value US$ US$ Trade payables 1,537,278 1,537,278 Accruals 335,925 335,925 1,873,203 1,873,203 All of the above financial liabilities' carrying values approximate to their fair values, as at 30 June 2012 and 2011, given their nature and short times to maturity. 18 Financial Instrument Risk Exposure and Management The principal financial risks to which the Group is exposed are: foreign currency exchange rate risk; interest rate risk; liquidity risk, equity price risk and credit risk. This note describes the Group's objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented in notes 14, 15, 17 and 22. There have been no substantive changes to the Group's exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from the previous year. Liquidity risk Liquidity risk is dealt with in note 19 of these financial statements. Credit risk The Group's credit risk is primarily attributable to its cash balances and available-for-sale financial assets. The credit risk on liquid funds is limited because the third parties are large international banks. The Group's total credit risk amounts to the total of the sum of the receivables, available-for-sale financial assets and cash and cash equivalents. At the year end this amounts to US$6,047,603 (2011: US$3,485,357). Interest rate risk and sensitivity analysis The Group's only exposure to interest rate risk is the interest received on the cash held on deposit. The Group does not have any interest bearing borrowings. The following table indicates the impact of a change in interest rate on the interest received during the year, and with all other variables being held constant, on the Group's loss before tax. Change Change in interest 2012 in interest 2011 rate US$ rate US$ Sterling +0.5% 1,693 +0.5% 2,229 +1.0% 3,385 +1.0% 4,458 +1.5% 5,078 +1.5% 6,687 -0.5% (1,693) -0.5% (2,229) -1.0% (3,385) -1.0% (4,458) -1.5% (5,078) -1.5% (6,687) Dollars +0.5% 4,811 +0.5% 1,038 +1.0% 9,623 +1.0% 2,076 +1.5% 14,434 +1.5% 3,114 -0.5% (4,811) -0.5% (1,038) -1.0% (9,623) -1.0% (2,076) -1.5% (14,434) -1.5% (3,114) Market risk and sensitivity analysis Market risk arises when the fair value or cash flows of a financial instrument fluctuates from the level where a long or short position was established. These financial instruments are subject to equity price risk. Equity price risk The Group's available-for-sale financial assets are subject to equity price risk. For financial instruments held, the Group uses a sensitivity analysis technique that measures the changes in fair value of the Group's financial instruments to hypothetical changes in market price. A 5% increase in the market value of positions held at 30 June 2012 would increase the value of the financial assets by US$199,478 (2011: US$137,584) and equity by US$183,388 (2011: US$115,501). A 5% decrease in the value of positions held on at 30 June 2012 would decrease the value of the financial assets US$199,478 (2011: US$137,584) and equity by US$183,388 (2011: US$115,501). Foreign exchange risk The Group's principal exposure to foreign exchange risk is in relation to the United States Dollar and Sterling exchange rates, due to the concentration of cash and cash equivalents that are held in Sterling. The following table indicates the impact of a change in foreign exchange rate on the value of cash and cash equivalents at the balance sheet date, and with all other variables being held constant, on the Group's loss before tax and on equity. Change Change in US$/GBP in US$/GBP exchange 2012 exchange 2011 rate US$ rate US$ Sterling +5.0% 215,910 +5.0% 163,338 -5.0% (215,910) -5.0% (163,338) 19 Liquidity Risk In managing liquidity risk, the main objective of the Group is to ensure that it has the ability to pay all of its liabilities as they fall due. The Group monitors its levels of working capital to ensure that it can meet its debt repayments as they fall due. The table below shows the undiscounted cash flows on the Group's financial liabilities as at 30 June 2012 on the basis of their earliest possible contractual maturity. Greater Within Within 6 - 12 than 12 Total 2 months 2 -6 months months months US$ US$ US$ US$ US$ At 30 June 2012 Trade payables 80,546 80,546 - - - Accruals 30,430 - 30,430 - - 110,976 80,546 30,430 - - At 30 June 2011 Trade payables 1,537,278 1,537,278 - - - Accruals 335,925 - 335,925 - - 1,873,203 1,537,278 335,925 - - 20 Capital Management The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern, to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. The Group defines capital as being share capital plus reserves as disclosed in the consolidated balance sheet. The Board of Directors monitors the level of capital as compared to the Group's commitments and adjusts the level of capital as is determined to be necessary, by issuing new shares. The Group is not subject to any externally imposed capital requirements. 21 Financial Commitments The Group had no capital commitments at 30 June 2012 (2011: US$nil). 22 Trade and Other Payables 2012 2011 US$ US$ Trade payables 80,546 1,537,278 Accruals 30,430 335,925 110,976 1,873,203 23 Related Party Transactions The only related party transactions during the year were with the directors, key management and Mrs J Bramhill, the wife of Mr D Bramhill. Short-term benefits 2012 2011 US$ US$ Directors' remuneration: Mr A Yeo 168,346 180,158 Mr J Ede-Golightly 13,234 - Mr D Bramhill 239,384 200,175 Mrs J Bramhill 19,135 17,470 Mr M Thomsen 269,475 115,450 Mr F Dekker 52,938 10,676 Mr B Marshall 52,938 10,676 Mr J. Michaels - 32,025 815,450 566,630 Social security costs 64,621 49,976 880,071 616,606 In addition to the remuneration shown above, the Group incurred share-based payment charges of US$502,655 (2011: US$58,841) in respect of the above named directors and key management. Mr B Marshall is additionally a director of 2 companies which received payments from the Group during the year - Brian Marshall Accounting Services Ltd which received US$39,704 for accounting services (2011: US$15,946), and Berkeley Hall Marshall Ltd which received US$4,236 for office facilities (2011: US$3,189). 24 Investment in Subsidiaries The Group's Parent Company holds the issued share capital of the following subsidiary undertakings, which are incorporated in the USA and have been included in these consolidated financial statements. Company Principal activities Class Percentage holding Osceola Royalties LLC Oil and gas development Ordinary 100% Osceola Production Oil and gas development Ordinary (indirectly) LLC 100% 25 Contingent Liabilities The directors are not aware of any contingent liabilities within the Group or the Company at 30 June 2012. 26 Ultimate Controlling Party As at 30 June 2012, Bluebird Energy plc had no ultimate controlling party. 27 Cash Flow from Operating Activities 2012 2011 US$ US$ Loss for the financial year (1,566,640) (17,610,085) Finance income (6,952) (2,134) Loss from associates 35,527 48,493 Share-based payment 555,275 123,653 (Gain)/Loss on disposal of investments (2,568,779) 132,145 Loss on disposal of business 439,964 - Expenses paid for discontinued operations (418,236) - Revenue received from discontinued operations (21,728) - Impairment of intangible assets 764,126 9,953,967 Impairment of land assets 208,157 3,624,877 Impairment of plant and machinery assets - 1,602,107 Net foreign exchange gain - (3,321) (2,579,286) (2,130,298) Changes in working capital Decrease / (increase) in trade and other receivables 48,562 (129,614) (Decrease) / increase in trade and other payables (516,180) 544,257 Net cash outflow from operating activities (3,046,904) (1,715,655) 28 Events After the Balance Sheet Date There were no significant events after the balance sheet date. 29 Basis of Preparation
This announcement has been prepared in accordance with International Financial Reporting Standards ("IFRS") but in itself does not contain sufficient information to comply with IFRS. Details of the accounting policies are set out in the annual report for the year ended 30 June 2012. These accounting policies have been amended from the prior year due to the transition to IFRS. Other than presentation there were no significant adjustments in respect of the transition to IFRS.
30 Publication of Non-Statutory Accounts
The financial information set out in this announcement does not comprise the Group's statutory accounts for the years ended 30 June 2012 or 30 June 2011.
The financial information has been extracted from the statutory accounts of the Company for the years ended 30 June 2012 and 30 June 2011. The auditors' opinion on those accounts was unmodified and did not contain a statement under section 498 (2) or section 498 (3) Companies Act 2006 and did not include references to any matters to which the auditor drew attention by the way of emphasis.
The statutory accounts for the year ended 30 June 2011 have been delivered to the Registrar of Companies, whereas those for the year ended 30 June 2012 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
31 Annual Report and Annual General Meeting
The Annual Report will be made available from the Company's website www.bluebirdenergy.net and will be posted to shareholders shortly. The Annual Report contains notice of the Annual General Meeting of the Company which will be held at 11 a.m. on 11 December 2012 at the offices of W H Ireland, 24 Martins Lane, London, EC4R 0DR.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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