IamFire Plc - Interim Results to 31 October 2019 PR Newswire

3rd February 2020

IamFire Plc

(“IamFire Plc”, the “Group” or the “Company")

Interim Results For The Six Months Ended 31 October 2019

EXECUTIVE DIRECTOR STATEMENT

The Board and I are pleased to present the interim results for IamFire Plc (NEX: FIRE). 2019, proved to be a challenging year for the then incumbent management team as they pursued a listing on the AIM-exchange. Upon joining the Board upon a successful GM (please refer to the announcement “Result of GM, Board and Change of Name”, 11th October), we have rapidly, accelerated a comprehensive corporate restructure that ensures that the Company retains its listed status on the NEX Exchange and are grateful for the support of all in ensuring this process has been affected with efficiency.

We have reduced all non-core costs, capitalised all immediate creditors and have created a lean and low-cost investment vehicle that is now able to pursue opportunities.

It is of paramount importance that as a company we seek to transact on the basis that there is sufficient capital market support to justify the decision we make as a Board of Directors.  To this end we are in active discussions, evaluating and assessing opportunities that adequately reflect this new ethos at IamFire plc.

The Company is focusing its efforts on reviewing assets that upon acquisition/investment require low-capital intensity and are structured in a manner that enables capital raised to be expended on development rather than acquisition in order to maximise our entry and reduce our assumed opportunity-cost.

I am also excited by the developments that are occurring with the NEX Exchange and note that these developments are being positively received and communicated within financial networks and communities, globally.

I look forward to the year ahead and providing updates in relation to the corporate developments within the Company and welcome shareholders both existing and prospective to get in touch freely to discuss the new direction at, IamFire plc.

FINANCIALS

The financial results for the six months to 31 October 2019 show a profit after taxation of £123,435 (2018: Loss £68,089).

The interim results are unaudited to 31 October 2019 and have not been reviewed by the Company’s auditors

OUTLOOK

The Board and I are positive on IamFire’s outlook moving forward. Recapitalised and restored we now operate with purpose in pursuit of a transaction of significance. We remain in active discussions on a number of different opportunities and feel that we are now at a point of action with regards the next iteration for the Company upon the exit and relinquishment of the Company’s hydrocarbon licenses in Botswana.

Burns Singh Tennent-Bhohi

Executive Director

31 January 2020

The Directors of the Company accept responsibility for the content of this announcement.

ENQUIRIES:

Company

IamFire plc (NEX: FIRE)

Burns Singh Tennent-Bhohi

Telephone: 020 3778 0755

Corporate Adviser

Peterhouse Corporate Finance Limited

Guy Miller / Mark Anwyl

Telephone: 020 7220 9795

Consolidated Income Statement for the 6 months ended 31 October


                                                            2019       2018

                                                 Notes Unaudited  Unaudited

                                                               £          £

Revenue                                                        -          -

Other operating income                                   201,399     16,870

Administrative expenses                                 (77,967)   (84,969)

Operating profit                                         123,432   (68,099)

Finance income                                                 3          9

Finance costs                                                  -          -

Profit before taxation                                   123,435   (68,090)

Taxation                                                       -          -

Minority interests                                             -        327

Profit/(Loss) for the period attributable to the         123,435   (67,763)
Company’s equity shareholders

Profit/(Loss) per share from operations

Basic and diluted loss per share (£)               2       0.049    (0.033)



Consolidated Statement of Comprehensive Income for the 6 months ended 31 October


                                                                2019       2018

                                                           Unaudited  Unaudited

                                                                   £          £

Profit/(Loss) for the financial year                         123,435   (67,763)

Total comprehensive income for the period attributable to    123,435   (67,763)
the Company’s equity shareholders



Consolidated Balance Sheet as at 31 October and 30 April


                                    31 October   31 October     30 April

                                          2019         2018         2019

                             Notes   Unaudited    Unaudited      Audited

Assets                                       £            £            £

Non-current assets

Intangible assets              3             -      135,439            -

Current assets

Trade and other receivables    4        18,497       45,207       35,220

Investments                                  -            -            -

Cash and cash equivalents               56,866        1,141        2,130

                                        75,363       46,348       37,350

Total Assets                            75,363      181,787       37,350

Equity and liabilities

Capital and reserves

Share capital                  5       526,733      511,837      511,837

Share premium                        2,359,890    2,231,786    2,231,786

Retained earnings                  (2,917,386)  (2,910,950)  (3,040,821)

Shareholders’ funds                   (30,763)    (167,327)    (297,198)

Minority Interests                    (61,766)     (54,893)     (61,766)

                                      (92,529)    (222,220)    (358,964)

Current liabilities:
                               6
Trade and other payables               167,892      404,007      396,314


Total equity and liabilities            75,363      181,787       37,350



Consolidated Statement of Changes in Equity as at 31 October and 30 April


                             Share     Share    Retained  Minority

                           capital   premium    earnings interests     Total

                                 £         £           £         £         £

For the 6 months ended 31
October 2018

Balance at 1 May 2018      511,837 2,231,786 (2,843,187)  (54,566) (154,130)

Loss for the period              -         -    (67,763)     (327)  (68,090)

Total comprehensive income       -         -    (67,763)     (327)  (68,090)

Issue of shares                  -         -           -         -         -

Cost of share issue              -         -           -         -         -

Balance at 31 October 2018 511,837 2,231,786 (2,910,950)  (54,893) (222,220)

Loss for the period              -         -   (129,871)   (6,873) (136,744)

Total comprehensive income       -         -   (129,871)   (6,873) (136,744)

Issue of shares                  -         -           -         -         -

Cost of share issue              -         -           -         -         -

Balance at 30 April 2019   511,837 2,231,786 (3,040,821)  (61,766) (358,964)

Profit for the period            -         -     123,435         -   123,435
                                 -         -

Total comprehensive income       -         -     123,435         -   123,435

Issue of shares             14,896   128,104           -         -   143,000

Cost of share issue              -         -           -         -         -

Balance at 31 October 2019 526,733 2,359,890 (2,917,386)  (61,766)  (92,529)



Consolidated Statement of Cash Flows for the 6 months ended 31 October


                                                                2019       2018

                                                     Notes Unaudited  Unaudited

                                                                   £          £

Cash flow from operating activities

Profit/(loss) for the period before tax                      123,435   (68,090)

Finance income                                                   (3)        (9)

                                                             123,432   (68,099)

Changes in working capital

(Increase)/decrease in trade and other receivables     4      16,723    (4,135)

Increase/(decrease) in trade and other payables        6   (228,422)     31,947

Cash outflow from operating activities                      (88,267)   (40,287)

Cash flow from investing activities

Purchase of intangible exploration assets              3           -          -

Interest received                                                  3          9

Net cash used in investing activities                              3          9

Cash flow from financing activities

Issue of shares                                        5     143,000          -

Cost of shares issued                                  5           -          -

Net cash from financing activities                           143,000          -

Net (decrease)/increase in cash and cash equivalents          54,736   (40,278)

Cash and cash equivalents at beginning of period               2,130     41,419

Cash and cash equivalents at end of period                    56,866      1,141



Notes to the interim results

  1. Basis of preparation


The interim financial statements for IamFire Plc have been prepared on the basis of the accounting policies set out in the audited financial information for the year ended 30 April 2019, which complied with International Financial Reporting Standards as adopted for use in the European Union (“IFRS”). The financial information for the periods ended 31 October 2019 and 31 October 2018 is unaudited.

IFRS is subject to amendment and interpretation by the International Accounting Standards Board (“IASB”) and the IFRS Interpretations Committee and there is an on-going process of review and endorsement by the European Commission.

The financial information has been prepared in accordance with the recognition and measurement requirements of IFRS that the Directors expect to be applicable as at 30 April 2020.

The preparation of condensed consolidated interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from those estimates.

In preparing these interim financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 30 April 2019.

Going concern

During the period ended 31 October 2019 the Group made a profit of £123,435 (2018: loss £68,069) and as at 31 October 2019 it had net current liabilities of £92,529 (2018: net current liabilities of £357,659). The operations of the Group are primarily financed from funds which the Parent Company raises from share placings as it does not currently generate significant amounts of revenue.

As described in the Executive Director’s statement, following the business restructuring and refinancing in October 2019 the Company is now is in a more stable financial position and is able to look to build a new direction for the business.  As a result, the Directors believe that the Group, in conjunction with the Broker, will be able to raise sufficient cash to enable it to continue its operations, and continue to meet, as and when they fall due, its planned and committed expenditure for at least the next twelve months from the date of approval of these interim statements.

For this reason, the Directors continue to adopt the going concern basis in preparing the accounts. However, there can be no guarantee that the required funds we be raised within the necessary timeframe. The financial statements do not include the adjustments that would result if the Group was unable to continue in operation.

  1. Earnings per share


Basic earnings per share is calculated by dividing the earnings attributable to Ordinary Shareholders by the weighted average number of Ordinary Shares outstanding during the period.

The Group does not have any potentially dilutive shares in any of the periods presented, therefore the basic and diluted earnings per share are the same.

Basic earnings per share


                                         2019       2018

                                    Unaudited  Unaudited

                                            £          £

Total basic profit/(loss) per share     0.049    (0.033)



The losses and weighted average number of Ordinary Shares used in the calculation of basic earnings per share are as follows:


                                                               2019        2018

                                                          Unaudited   Unaudited

                                                         (restated)  (restated)

                                                                  £           £

Profit/(loss) used in the calculation of total basic and    123,435    (68,089)
diluted earnings per share

                                                               2019        2018

Number of shares                                          Unaudited   Unaudited

Weighted average number of Ordinary Shares for the        2,520,918   2,035,184
purposes of basic earnings per share



Note:

Further to the approval of shareholders at a General Meeting of the Company on 11 October 2019 a Capital Reorganisation of the Company was undertaken whereby a consolidation of the Ordinary Shares of £0.0025 on a one for 100 basis was undertaken. The Ordinary Shares were simultaneously sub-divided back into Ordinary Shares of £0.0025.

The Weighted average number of Ordinary Shares, for the half year ended 31 October 2018 has been restated from the pre-consolidation 203,518,412 shares to the post consolidation 2,035,184 shares.

The Weighted average number of Ordinary Shares, for the half year ended 31 October 2019 has been restated to reflect the effect of the consolidation on 11 October 2019.

  1. Intangible assets



                               Exploration and Evaluation assets

                                                               £

Cost & net book value

At 30 April 2018 (audited)                               139,439

Additions                                                      -

At 31 October 2018 (unaudited)                           139,439

Additions                                                      -

Impairments                                            (139,439)

At 30 April 2019 (audited)                                     -

Additions                                                      -

At 31 October 2019 (unaudited)                                 -



  1. Trade and other receivables



                               31 October  31 October  30 April

                                     2019        2018      2019

                                Unaudited   Unaudited   Audited

                                        £           £         £

Trade debtors                           -       5,535     4,795

Amounts due from director           3,085      16,595    15,375

Other receivables                  15,412      18,477    10,450

Prepayments and accrued income          -       4,600     4,600

                                   18,497      45,207    35,220



  1. Share capital



                                             31 October 31 October   30 April

                                                   2019       2018       2019

                                              Unaudited  Unaudited    Audited

                                             (restated) (restated) (restated)


Allotted, issued, and fully paid Ordinary             £          £          £
shares of £0.0025 each

Opening balance                                 511,837    511,837    511,837

Allotments:

17 October 2019 - shares issued at 2.4p each     14,896          -          -
resulting in premium of £128,104

Closing balance                                 526,733    511,837    511,837



   


                                             31 October 31 October   30 April

                                                   2019       2018       2019

                                              Unaudited  Unaudited    Audited

                                             (restated) (restated) (restated)

Allotted, issued, and fully paid Ordinary
shares of £0.0025 each                               No         No         No



Opening balance                               2,047,350  2,047,350  2,047,350

Allotments:

17 October 2019 - shares issued at 2.4p each  5,958,333          -          -
resulting in premium of £128,104

Closing balance                               8,005,683  2,047,350  2,047,350



Note:

Further to the approval of shareholders at a General Meeting of the Company on 11 October 2019 a Capital Reorganisation of the Company was undertaken whereby a consolidation of the Ordinary Shares of £0.0025 on a one for 100 basis was undertaken. The Ordinary Shares were simultaneously sub-divided back into Ordinary Shares of £0.0025.

The original opening balances for allotted, issued and fully paid shares of £0.0025 each have been restated from the pre-consolidation 204,734,976 shares to the post consolidation 2,047,350 shares.

  1. Trade and other payables



                        31 October  31 October  30 April

                              2019        2018      2019

                         Unaudited   Unaudited   Audited

                                 £           £         £

Trade payables             141,877     226,212   262,054

Accruals                        15      90,535    26,800
Other Payables                   -           -    13,200

Loan from related party     26,000      87,260    94,260

                           167,892     404,007   396,314