logo-loader
RNS
viewSpitfire Oil

Spitfire Oil Limited - Preliminary Results

RNS Number : 8805W
Spitfire Oil Limited
13 December 2019
 

 

54 Jermyn Street, London SW1Y 6LX, United Kingdom

Telephone: + 44 (0)20 7629 7774  Facsimile:  + 44 (0)20 7629 7773

 

13th December 2019

 

PRELIMINARY RESULTS

 

Financial

Spitfire Oil Limited ("the Company") and its wholly owned subsidiary, Spitfire Oil Pty Ltd ("Spitfire"), together ("the Group"), recorded a loss before tax for the year ended 30th June 2019 of A$936,103 (2018: A$1,350,901), after providing $763,507 (2018: $1,116,767) for diminution in value of the Salmon Gums tenements. The Group benefited from interest receivable of A$26,610 (2018: A$63,405). Operating costs of A$199,206 (2018: A$297,539) were incurred. A$313,507 (2018: A$316,767) was incurred and capitalised on licence fees and tenement management. 

On 30th August 2019, following a further review of the economic feasibility of the Salmon Gums lignite project, in particular with consideration of the current and long term forecast for the continued relatively low oil prices and the continuing costs of maintaining the retention licence over the Salmon Gums tenements, Spitfire relinquished the retention licence over the Salmon Gums lignite tenements and as a result all costs incurred in respect of the Salmon Gums lignite venture have been written off and charged to profit and loss.

 

Operations

Following the renewal of the retention licence over the Salmon Gums lignite deposits in September 2018, the Group continued to explore the feasibility of extracting liquid hydrocarbons from the Salmon Gums lignite deposits on a commercial basis.  Despite these efforts and in seeking joint venture partners to further develop the venture, on 30th August 2019, following a further review of the economic feasibility of the Salmon Gums lignite project, in particular with consideration of the current and long term forecast for the continued relatively low oil prices and the continuing costs of maintaining the retention licence over the Salmon Gums tenements, Spitfire relinquished the retention licence over the Salmon Gums lignite tenements.

 

With the relinquishment of the retention licence, the Company becomes an AIM Rule 15 cash shell. As such, the Company is required to make an acquisition (or acquisitions) which constitutes a reverse takeover under AIM Rule 14 on or before 29 February 2020. If no such acquisition is completed by 29 February 2020, the Company's shares would then be suspended from trading on AIM pursuant to AIM Rule 40.

 

The Group has continued to keep its running costs to a minimum while reviewing possible new projects. 

 

Chairman's Statement

 

During the 2018/19 financial year all efforts were made to commercially advance the Salmon Gums lignite deposits either through new technology, partnership or sale. Against a background of relatively low oil prices and significant anti fossil fuel sentiment, it was concluded it was no longer prudent to maintain the expenditure required to retain the Salmon Gum's retention licence and consequently it was relinquished on the 30th August 2019.

 

With the relinquishment of the retention licence, the Company is now an AIM Rule 15 cash shell.  The directors continue to be focused and motivated on acquiring another company, project or venture which has the potential to bring significant value to shareholders. Whilst a number of such ventures have been identified or forwarded to the Company, none have reached a stage where it will be likely to conclude an acquisition by the 29th February 2020, the date at which the Company's shares will be suspended from trading on AIM pursuant to AIM Rule 40.

 

Thereafter, as soon as an acquisition can be made the directors will seek the re admission of the Company's shares onto AIM, however, if an acquisition cannot be successfully completed in a reasonable period of time, then the Company may be liquidated and surplus funds returned to shareholders. 

 

 

 

 

Further information

 

Spitfire Oil Ltd:                                                                                 Telephone: +44 (0)20 7629 7774

Mladen Ninkov - Chairman                                                   

Roger Goodwin - Director

 

Panmure Gordon (UK) Limited:                                                        Telephone: +44 (0)20 7886 2500

Dominic Morley

 

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014.

 

 

Spitfire Oil Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol SRO).

The Company's news releases are available on the Company's web site: www.spitfireoil.com

 

 

 

Spitfire Oil Limited

Consolidated Statement of Profit or Loss and Other Comprehensive Income

 

YEAR ENDED 30 JUNE 2019

 

2019

2018

 

 

A$

A$

OTHER INCOME                                    

 

26,610

63,405

 

 

 

 

EXPENDITURE                                       

 

 

 

Corporate expenses                                 

 

(112,438)

(217,641)

Other expenses

 

(86,768)

(79,898)

OPERATING LOSS                                               

 

(172,596)

(234,134)

Impairment - exploration and evaluation costs

 

(763,507)

(1,116,767)

LOSS BEFORE INCOME TAX

 

(936,103)

(1,350,901)

INCOME TAX

 

-

-

LOSS AFTER INCOME TAX

 

(936,103)

(1,350,901)

OTHER COMPREHENSIVE INCOME, NET OF TAX

 

-

-

LOSS AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO OWNERS OF SPITFIRE OIL LIMITED                                              

 

(936,103)

(1,350,901)

 

 

 

 

Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company (cents per share)

 

(3.6)

(5.22)

 

Spitfire Oil Limited

Consolidated Statement of Financial Position

 

AS AT 30 JUNE 2019

 

2019

2018

 

 

A$

A$

CURRENT ASSETS                               

 

 

 

Cash and cash equivalents                      

 

2,124,200

2,560,120

Trade and other receivables                    

 

1,405

-

Accrued revenues

 

-

23,229

Other current assets

 

21,499

28,954

TOTAL CURRENT ASSETS                 

 

2,147,104

2,612,303

NON‑CURRENT ASSETS                     

 

 

 

Capitalised exploration and evaluation costs

 

-

450,000

Office equipment

 

-

-

Other non-current assets

 

45,000

45,000

TOTAL NON‑CURRENT ASSETS       

 

45,000

495,000

TOTAL ASSETS                                    

 

2,192,104

3,107,303

CURRENT LIABILITIES                        

 

 

 

Trade and other payables                        

 

57,774

36,870

TOTAL CURRENT LIABILITIES          

 

57,774

36,870

TOTAL LIABILITIES                              

 

57,774

36,870

NET ASSETS                                          

 

2,134,330

3,070,433

EQUITY                                                   

 

 

 

Issued capital                                            

 

19,289,284

19,289,284

Reserves                                                  

 

-

-

Accumulated losses                                 

 

(17,154,954)

(16,218,851)

TOTAL EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT               

 

2,134,330

3,070,433

 

 

 

Spitfire Oil Limited

Consolidated Statement of Changes in Equity

 

YEAR ENDED 30 JUNE 2019

 

Issued Capital

Accumulated Losses

Total

 

 

A$

A$

A$

BALANCE AT 30 JUNE 2017

 

19,289,284

(14,867,950)

4,421,334

 

 

 

 

 

Loss for the year

 

-

(1,350,901)

(1,350,901)

 

TOTAL COMPREHENSIVE LOSS

 

-

(1,350,901)

(1,350,901)

 

 

 

 

 

TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS

 

 

 

 

Transaction with owners

 

-

-

-

BALANCE AT 30 JUNE 2018

 

19,289,284

(16,218,851)

3,070,433

Loss for the year

 

-

(936,103)

(936,103)

TOTAL COMPREHENSIVE LOSS

 

-

(936,103)

(936,103)

TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS

 

 

 

 

Transaction with owners

 

-

-

-

BALANCE AT 30 JUNE 2019

 

19,289,284

(17,154,954)

2,134,330

 

Spitfire Oil Limited

Consolidated Statement of Cash Flows

 

YEAR ENDED 30 JUNE 2019

 

2019

2018

 

 

A$

A$

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

Payments to suppliers and employees      

 

(167,158)

(342,724)

Interest received                                         

 

49,839

50,688

NET CASH FLOWS USED IN OPERATING ACTIVITIES                                                                          

 

(117,319)

(292,036)

CASH FLOWS FROM INVESTING ACTIVITIES  

 

 

 

Payments for exploration and evaluation expenditure

 

(313,507)

(316,767)

 

 

 

 

NET CASH OUTFLOWS USED IN INVESTING ACTIVITIES                                                     

 

(313,507)

(316,767)

 

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS                                                                    

 

(430,826)

(608,803)

Cash and cash equivalents at the beginning of the financial year                                              

 

2,560,120

3,170,851

Effects of exchange rate changes on cash and cash equivalents

 

(5,094)

(1,928)

CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR                           

 

2,124,200

2,560,120

 

 

Notes to the preliminary results to 30th June 2019

 

1.  This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the statutory accounts of the Group.

 

2.  The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 435 of the UK Companies Act 2006.  The summarised consolidated statement of financial position at 30 June 2019 and the summarised consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and the summarised consolidated statement of cash flows for the year then ended have been extracted from the Group's 2019 statutory financial statements upon which the auditors' opinion is unqualified.  The statutory financial statements for the year to 30 June 2019 have been prepared in accordance with the requirements of International Accounting Standard IAS1: Presentation of Financial Statements as adopted in Australia.  The results for the year ended 30 June 2018 have been extracted from the statutory accounts for that period, upon which the auditors' opinion is qualified as to the inability to obtain sufficient audit evidence concerning the capitalised exploration and evaluation costs in respect of the Salmon Gums Project at 30th June 2016 and the consequent impact on the summarised consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and the summarised consolidated statement of cash flows.

 

3.  The annual report and accounts for 2019 are being sent by post to all registered shareholders.  Additional copies of the annual report and accounts are available from the Company's London correspondent office, 8th Floor, 54 Jermyn Street, London, SW1A 6LX and on the Company's web site www.spitfireoil.com.

 

4.  The calculation of the basic and diluted losses per share is based on the loss attributable to ordinary shareholders of A$936,103 (2018 A$1,350,901) divided by the weighted average number of shares in issue during the year of 25,884,001 (2018 25,884,001). There is no dilutive effect of share purchase options. 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
FR EASADFEDNFFF

Quick facts: Spitfire Oil

Price: 2

Market: AIM
Market Cap: £517.68 k
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE