Interim Results for the six months to 30 June 2018

Path Investments plc (TIDM: PATH), the energy investment company, announces its interim results for the six months to 30 June 2018.

There was no revenue in the period as activities were focused on completing the previously announced proposed transaction with 5P Energy GmbH (“5P”).  However, as announced post period end on 5 November 2018, 5P decided not to continue with the Conditional Farm-In Agreement signed in December 2017.

Following the termination of the proposed transaction with 5P the Company sought alternative investment opportunities and the Company is pleased to have announced earlier today that it has entered into a Heads of Agreement with ARC Marlborough Pty Limited (“ARC”) regarding the proposed acquisition of ARC by the Company (the “Proposed Transaction”).

Whilst the reported loss before tax for the six months ended 30 June 2018 was £483,418 (H1 2017 profit of £73,048), during the period the Company sought to minimise its cash costs through the deferment of director’s salaries and other cost saving measures.  As at 30 June 2018 the Company held cash of £30,734 (31 December 2017 £159,505).

Commenting, Christopher Theis, Chief Executive of Path, said: “We were very disappointed that 5P decided not to complete the Farm-In Agreement, particularly when we had secured Institutional funding to do so. Nevertheless, we are delighted to have entered into the Heads of Agreement with ARC.  We believe the Proposed Transaction is one that can deliver significant value for Path shareholders.”

Enquiries:

Path Investments plc
Christopher Theis, Andy Yeo
020 3934 6630
  
Shard Capital (Broker and Financial Adviser)
Simon Leathers, Damon Heath 
020 7186 9900
IFC Advisory (Financial PR & IR)
Tim Metcalfe, Heather Armstrong, Miles Nolan 
020 3934 6630

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2018

   NotesSix months ended30 JuneSix months ended30 JuneYear ended 31 December
  201820172017
  UnauditedUnauditedAudited
  £££
Administrative expenses3(483,492)110,543(585,533)
Total administrative expenses (483,492)110,543(585,533)
     
     
Operating (loss)/profit (483,492)110,543(585,533)
     
Finance income 74556
Finance cost (37,500)(38,500)
     
(Loss)/profit on ordinary activities before taxation (483,418)73,048(623,977)
     
Tax on (loss)/profit on ordinary activities 
     
(Loss)/profit for the period and total comprehensive (loss)/profit for period (483,418)73,048(623,977)
     
     
(Loss)/profit per share (pence)    
– Basic & diluted4(0.25)0.067(0.42)
     
     
     

All operating income and operating gains and losses relate to continuing activities.

STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2018

  Share CapitalShare PremiumSharebased payments reserveRetained earningsTotal
 £££££
As at 1 January 2018                          8,979,76725,413,617(34,407,084)(13,700)
Comprehensive incomeLoss for the period – – – (483,418) (483,418)
      
As at 31 June 2018                        8,979,76725,413,617(34,890,502)(497,118)
  Share CapitalShare PremiumSharebased payments reserveRetained earningsTotal
 £££££
As at January 2017                              8,805,83824,134,750715,752(34,902,611)(1,246,271)
Comprehensive incomeLoss for the period – – – (623,977) (623,977)
Issue of share capital173,9291,565,3631,739,292
Issue costs(286,496)(286,496)
Lapsed or waived share options(382,479)382,479
Transfer to retained reserves(333,273)333,273
Share based payment403,752403,752
As at 31 December 2017                           8,979,76725,413,617(34,407,084)(13,700)
  Share CapitalShare PremiumSharebased payments reserveRetained earningsTotal
 £££££
As at 1 January 2017                            8,805,83724,134,750715,752(34,902,611)(1,246,272)
Comprehensive incomeProfit for the period – — — 73,048 73,048
Issue of share capital173,9301,565,3631,739,293
Share issue costs(283,088)(283,088)
Waived share options(382,479)382,479
Transfer to retained reserves(333,273))333,273
Share based payment298,290298,290
As at 30 June 2017                              8,979,76725,417,025(33,815,521)581,271

The Share Capital represents the nominal value of the equity shares.

The Share Premium represents the amount subscribed for share capital, in excess of the nominal amount, less costs directly relating to the issue of shares.

The Share Based Payments reserve represents the fair value of the equity settled share option scheme.

The Retained Earnings reserve represents the cumulative net gains and losses less distributions made.

STATEMENT OF FINANCIAL POSITION

FOR THE SIX MONTHS ENDED 30 JUNE 2018

   NotesAs at30 June2018As at30 June2017As at31 December2017
  UnauditedUnauditedAudited
  ££  £
     
ASSETS    
Current assets    
Trade and other receivables 7,1998,978
Cash and cash equivalents 30,734586,726159,505
  30,734593,925168,483
LIABILITIES    
Current liabilities    
Trade and other payables5(527,852)(12,654)(182,183)
Net Current (Liabilities)Assets (497,118)581,271(13,700)
     
NET (LIABILITIES)ASSETS (497,118)581,271(13,700)
 SHAREHOLDERS’ EQUITY    
Called up share capital6195,943195,943195,943
Deferred shares68,783,8248,783,8248,783,824
Share premium account 25,413,61725,417,02525,413,617
Retained earnings (34,890,502)(33,815,521)(34,407,084)
TOTAL EQUITY (497,118)581,271(13,700)
     

STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2018

  Six months to 30 June 2018Six months to 30 June 2017Year ended 31 December2017
  UnauditedUnauditedAudited
  £££
Operating (loss)/profit (483,492)110,543(585,533)
Decrease in debtors 8,97883,50081,722
Increase/(decrease) in creditors within one year 345,669(1,347,989)(1,178,462)
Share based payment 298,290403,755
Convertible loan note interest (37,500)(38,500)
     
Net cash outflow from operating activities (128,845)(893,156)(1,317,018)
     
     
Cash flows from investing activities    
Interest received 74556
Net cash generated from investing activities 74556
     
Cash flows from financing activities    
Net proceeds from the issue of ordinary shares 1,456,2051,452,795
Net cash inflow from financing activities 1,456,2051,452,795
     
Net (decrease)/increase in cash and cash equivalents (128,771)563,054135,833
Cash and cash equivalents at beginning of period 159,50523,67223,672
Cash and cash equivalents at end of period 30,734586,726159,505
     
     
 

1.         GENERAL INFORMATION

Path Investments Plc is a public limited company incorporated in the United Kingdom, registered under company number 04006413. The address of the registered office is Aston House, Cornwall Avenue, London, N3 1LF. The principal activity of the Company is the investment in oil and gas production and development assets.

2.         ACCOUNTING POLICIES

2.1    Basis of preparation

The financial statements are presented in UK Sterling and all values are rounded to the nearest pound except where indicated otherwise.

The financial statements have been prepared under the historical cost convention or fair value where appropriate. 

The results for the six months to 30 June 2018 have been prepared on the basis of the accounting policies set out in the company’s 2017 annual report and accounts. The interim accounts do not constitute statutory accounts as defined by section 434 of the Companies Act 2006. The auditor has reported on the 2017 accounts and the report was unqualified and did not contain a statement under section 498(2) of (3) of the Companies Act 2006. The company’s 2017 report and accounts have been filed with the registrar of companies.

During the period, there have been no changes in the nature of the related party transactions from those described in the company’s 2017 accounts.

The results for the six months are unaudited.

2.2       Responsibility statement

The directors confirm that these condensed interim financial statements have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting”, as adopted by the European Union and as issued by the IASB and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely;

a)     An indication of the important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

b)     Material related party transactions in the first six months and any material changes in related party transactions described in the last annual report.

3.         ADMINISTRATIVE EXPENSES

 Six months to 30 June 2018Six months to 30 June 2017Year ended 31 December2017
 UnauditedUnauditedAudited
 £££
Directors remuneration131,960(824,837)(620,838)
Share based payment298,291400,346
Other administrative expenses351,532416,003806,025
 483,492(110,543)585,533


Included in Directors Remuneration for the period ended 30 June 2017 and the year ended 31 December 2017 are previously accrued remuneration of £940,905 which have been waived.

Included in Directors remuneration for the period ended 30 June 2018 are accrued salaries of £95,781.

4.         LOSS PER SHARE

The calculation of the basic and diluted loss per share is based on the loss on ordinary activities after taxation of and on the weighted average number of ordinary shares in issue.

There was no dilutive effect from the share options or convertible loan notes outstanding during the period.

In order to calculate the diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares according to IAS33. Dilutive potential ordinary shares include convertible loan notes and share options granted to Directors and consultants where the exercise price (adjusted according to IAS 33) is less than the average market price of the Company’s ordinary shares during the period.

 Six months to 30 June 2018Six months to 30 June 2017Year ended 31 December2017
 UnauditedUnauditedAudited
 £££
Net (loss)profit for the period(483,418)110,543(623,977)
    
The weighted average number of shares in the period were:   
    
Basic and dilutive ordinary shares195,943,802108,274,675149,164,700
    
Basic and dilutive (loss)/profit per share (pence)(0.25)0.067(0.42)


5.         TRADE AND OTHER PAYABLES

 As at 30 June 2017As at 30 June 2017As at 31 December 2016
 UnauditedUnauditedAudited
  ££
    
Trade payables168,31937638,711
Taxation and social security9,6538,542
Other payables68,000
Accruals and deferred income291,5332,625134,930
 527,85212,654182,183

6.         SHARE CAPITAL

    
   UnauditedUnauditedUnauditedUnaudited
Allotted, called up and fully paid  no£no£
   Ordinary Shares of 0.1p eachOrdinary Shares of 0.1p eachDeferred Share of 39.9p eachDeferred Share of 39.9p each
At 1 January 2017  22,014,59622,01422,014,5968,783,824
Share issues      
On 22 March 2017, the company issued 140,000,000 Ordinary shares at 1p each  140,000,000 140,000  
On 16 May 2017, the company issued 20,300,000 Ordinary shares at 1p each on conversion of unsecured loan stock 2016  20,300,000 20,300  
On 16 May 2017, the company issued 13,629,206 Ordinary shares at 1p each in settlement of various invoices from the company’s advisers.  13,629,206 13,630  
                                                                                     
As at 30 June 2017(unaudited), (December 2017 (audited) and June 2018 (unaudited) 195,943,802195,94322,014,5968,783,824