RNS Number:7868P
Hereward Ventures PLC
16 September 2003
16 September 2003
Hereward Ventures plc
Final Results for the year ended 31 March 2003
Chairman's Statement
In what has been an extremely active year for Hereward Ventures plc in respect
to continued exploration over our core permits in Bulgaria, as Chairman I am
pleased to report to shareholders that your Company has not only advanced its
Bulgarian gold projects but also decided to expand its Balkan operations into
neighbouring Serbia in the current year.
Hereward has entered into an agreement with Gold Fields Limited, under which
Gold Fields can, in exchange for funding exploration expenditure in Bulgaria,
acquire 51 per cent. of our exploration assets, assuming full expenditure is
met. Funding to date has covered our exploration work in Bulgaria, which
includes drilling, trenching, geophysics, regional geological studies and ASTER
satellite image analysis, primarily in the eastern Rhodopes. Since the
commencement of the joint venture in excess of US$1,000,000 has been invested in
our mineral properties at Rosino, Gornoseltsi and Dikanyite.
Hereward's exploration base in Bulgaria has been recently expanded by the award
of three additional exploration permits at Polski Gradets, Dobroselets and
Ribnovo all offering excellent upside potential for gold and base-metal
exploration.
As part of the Gold Fields funding agreement a report was commissioned in which
specialist geological consultants from SRK Consulting based in Sydney,
Australia, conducted a regional review of the mineral potential of the eastern
Rhodopes where our strategic exploration permits are located. The conclusions of
this report are viewed as positive, and support the well-placed confidence and
commitment shown by your board and exploration team early on for the potential
of Bulgaria to host major gold deposits.
As highlighted in last year's Annual Report, part of our strategy is to advance
and maximise opportunities in Balkan states in addition to Bulgaria. Progress
has been made in this respect in neighbouring Serbia, where Hereward during the
current year has opened an exploration office in Belgrade, and incorporated a
Serbian subsidiary company. To date Hereward has recruited highly experienced
local management and staff and submitted applications to the Serbian Government
for prime precious and base-metal prospects.
Serbia has a well developed mining industry producing substantial quantities of
gold, silver, copper, zinc, lead and ferro-chrome as well as large quantities of
various industrial minerals. Due to political events over much of the past
decade, the country's mining industry has been starved of markets and capital,
and virtually no modern exploration activities have been undertaken over that
period.
Our funding strategy for ongoing mineral exploration in the Balkans, is to seek
partners on an earn-in basis thus reducing the financial commitments for the
Company yet still giving us exposure to any exploration success.
In Ireland, our Tullamore base-metal licences remain in good standing. No
exploration activities have been conducted on this area this year and it is our
intention to joint venture these properties in the future.
A full overview of our projects and their status is provided in the Review of
Operations section of this report.
As with any junior exploration company, the directors need to be especially
alert to new opportunities and seek value for shareholders and their investment.
During the past six months your board has been active in reviewing what are
considered to be attractive projects in the hydrocarbon sector.
Excellent progress has been made on this front and I am pleased to inform
shareholders that our first hydrocarbon related project is close to being
finalised and I expect to be in a position to announce full details of this
initial transaction, which will be funded by existing finances in the very near
term.
Hereward has been approached by oil and gas companies wishing to discuss
potential acquisitions and joint venture proposals. The type of projects that
are of interest and that we feel offer both good upside and relatively low risk
are on-shore UK and also the acquisition of North Sea production which in turn
presents cash flow, the life blood of any company regardless of the sector in
which they operate.
Hereward's financial figures remain in line with projections and budgets, our
cash position is positive and we remain debt free. The warrant conversion in
October 2002, which raised approximately #450,000, further strengthened our
balance sheet for ongoing operations and new projects.
Your Company has developed a low cost base for its gold operations within the
Balkans which offer excellent opportunities to expand and develop over the
medium term. In addition I also have major expectations over the next year for
our proposed activities within the hydrocarbon sector.
The past year can be characterised as "quiet" in regard to newsflow. However I
would like to assure shareholders that during this period the building blocks
for the future of Hereward have been firmly set and that your board is confident
that we are in an excellent position for significant growth during the next
twelve months.
In conclusion, I take this opportunity to express my thanks to our management
team and staff whose enthusiasm and commitment has made a major contribution to
a progressive year and to my optimism for Hereward's future.
Dr Peter Bolt
Chairman
16 September 2003
Consolidated Profit and Loss Account
For the Year Ended 31 March 2003
2003 2002
# #
Administrative expenses (281,478) (308,859)
Interest receivable and similar income 20,798 43,666
Amounts written off investment (52,689) -
Loss on ordinary activities before taxation (313,369) (265,193)
Tax on loss on ordinary activities - -
Loss for the financial year (313,369) (265,193)
Loss per share (0.33p) (0.35p)
Consolidated Statement of Total Recognised Gains and Losses
For the year ended 31 March 2003
2003 2002
# #
Loss for the financial year (313,369) (265,193)
Currency differences on foreign currency net investments (1,209) 4,107
Lapse of Share Warrants 18,161 -
Total recognised gains and losses (296,417) (261,086)
Consolidated Balance Sheet
As at 31 March 2003
2003 2002
# #
Fixed assets
Intangible assets 1,943,095 1,021,841
Tangible assets 100,751 80,305
Investments 61,765 114,454
2,105,611 1,216,600
Current assets
Debtors 114,001 76,627
Cash at bank and in hand 873,086 873,113
987,087 949,740
Creditors : amounts falling due within one year (77,711) (76,352)
Net current assets 909,376 873,388
Total assets less current liabilities 3,014,987 2,089,988
Creditors: amounts falling due in more than one year (548,227) -
2,466,760 2,089,988
Capital and reserves
Called up share capital 982,350 807,360
Share premium account 2,390,864 1,815,364
Share warrants - 77,301
Profit and loss account (906,454) (610,037)
Shareholders' funds 2,466,760 2,089,988
Consolidated Cash Flow Statement
For the Year Ended 31 March 2003
2003 2002
# #
Net cash outflow from operating activities (393,830) (258,081)
Returns on investments and servicing of finance
Interest received 20,798 43,666
Capital expenditure and financial investment
Purchase of intangible fixed assets (832,893) (706,675)
Purchase of tangible fixed assets (43,550) (58,972)
Proceeds on sale of tangible fixed assets 9,872 -
Purchase of investments - (31,765)
Net cash outflow from capital expenditure and financial
investment (866,571) (797,412)
Aquisitions and disposals
Advance payment for sale of subsidiary undertaking 548,227 -
Movement in liquid resources
Funds removed from/(placed on) deposit (100,000) 496,000
Financing
Issue of shares and warrants 706,811 340,390
Expenses of share issues (15,462) (34,057)
Net cash inflow from financing 691,349 306,333
Decrease in cash (100,027) (209,494)
Notes
1. The Company will post copies of the Annual Report and Accounts for the year
ended 31 March 2003, to its shareholders on 24 September 2003.
2. Copies of the Annual Report and Accounts for the year ended 31 March 2003
will be available from the Company's registered office, Cargil Management
Services Limited, 22 Melton Street, London, NW1 2BW.
For more information please contact:
David Bramhill Cindy Dennis
Hereward Ventures plc Capital PR
+ 44 (0) 117 957 3666 + 44 (0) 20 7902 0703
+ 44 (0) 780 154 0358 email cindy@capitalww.com
email office@hereward.com
www.hereward.com
Bill Staple/Tim Feather
Brown, Shipley & Co. Limited
+44 (0) 20 7282 3270
This information is provided by RNS
The company news service from the London Stock Exchange
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