RNS Number:2584J
Palmaris Capital PLC
27 March 2003
PALMARIS CAPITAL PLC
INTERIM RESULTS FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2002
CHAIRMAN'S STATEMENT
The consolidated accounts of the company for the six months to 31 December 2002
show pretax losses of #111,000 as compared with #187,000 in the previous half
year and #843,000 for the year to 30 June 2002.
This represents a considerable improvement in the performance of Palmaris
Services, the plant hire, guarding and security business which was acquired in
2001. During the six months this business still recorded a small loss but each
month the position has been improving and we remain reasonably confident that
Palmaris Services will be in the black overall for the year to 30 June 2003.
The group's largest asset is its holding in Mining Scotland, Scotland's
principal coal mining company. Following the closure of the loss-making
Longannet deep mine in March 2002 due to flooding, Mining Scotland has been able
to reverse its fortunes. Its unaudited management accounts for the six months
to 30 September 2002 show pretax profits of some #4.3m on a turnover of #50m. We
believe the accounts for the full year to 31st March 2003 are likely to show
pretax profits of approximately #10m. Our attributable share of these profits
would be some #2.3m or 1.4p per fully diluted Palmaris share.
While it seems possible that Mining Scotland's results may be less good in the
following year to 31 March 2004 due to lower coal prices, the potential of this
company remains significant in a number of ways. We have held the valuation of
our interest in Mining Scotland steady at #6.44m and will review it at the year
end as in past years.
Meanwhile the group's second biggest asset, our holding in Perseverance
Corporation which operates a gold mine near Bendigo in Australia, has also seen
very positive progress during the period. It has delineated a major high grade
resource of over 1.1m ounces. This is one of Australia's largest gold
discoveries in recent years and is expected to rise with further drilling.
Management is conducting a feasibility study to mine this new resource and hopes
to be producing gold at a level of 100,000 ounces per year by the end of 2004,
at a cash cost of under US$ 200 per oz. If the gold price remains near its
present level of US$ 337 per oz, this will prove very lucrative for Palmaris.
Our share of Perseverance is 25.8%.
The shares of Perseverance are listed in Australia and we have valued them at
their stock market price at end December 2002 of A$0.17 per share. The share
price currently stands at slightly above this.
The company's position is improving on all fronts and we expect that this will
be much more evident in the near future.
Timothy Noble
Chairman
27 March 2003
PALMARIS CAPITAL PLC
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the period ended 31 December 2002
(UNAUDITED) (Unaudited) (Audited)
6 MONTHS TO 6 months to 12 months to
31-DEC-02 31-Dec-01 30-Jun-02
# # #
Turnover 2,379,690 1,931,768 4,280,886
Cost of sales (1,926,939) (1,728,738) (3,723,975)
Gross profit 452,751 203,030 556,911
Administrative expenses (461,454) (451,708) (1,021,309)
(Loss)/gain on sale of fixed assets (2,770) 88,455 -
Operating (loss) (11,473) (160,223) (464,398)
Exceptional item - Goodwill written off - - (239,772)
Investment and other income 7,610 13,545 21,444
Interest payable (106,727) (40,081) (159,804)
(Loss) on ordinary activities before taxation (110,590) (186,759) (842,530)
Taxation on (loss) on ordinary activities - - -
(Loss)on ordinary activities after taxation (110,590) (186,759) (842,530)
(Loss) for the financial period (110,590) (186,759) (842,530)
(Loss) per ordinary share (0.09p) (0.15)p (0.68p)
Diluted (loss) per ordinary share (0.07p) (0.12)p (0.53p)
PALMARIS CAPITAL PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
As at 31 December 2002
(UNAUDITED) (Unaudited) (Audited)
AS AT 31 As at 31 As at 30
DEC-02 Dec-01 Jun-02
NOTES # # #
Fixed assets
Tangible assets 2,641,398 2,229,440 2,435,868
Investments 1 10,468,237 4,124,871 10,000,984
13,109,635 6,354,311 12,436,852
Current assets
Stock 25,765 21,669 9,230
Trade debtors 888,374 1,143,314 1,042,440
Debtors 110,573 377,462 54,367
Cash 1,567 78,575 2,197
1,026,279 1,621,020 1,108,234
Creditors
Amounts falling due within one year (2,604,121) (1,690,033) (2,091,048)
Net current (liabilities) (1,577,842) (69,013) (982,814)
Total assets less current liabilities 11,531,793 6,285,298 11,454,038
Creditors
Amounts falling due after more than one (1,031,946) (820,000) (1,099,643)
year
Net assets 10,499,847 5,465,298 10,354,395
Capital and reserves
Called up equity share capital 6,242,225 6,242,225 6,242,225
Shares to be issued 2 - 100,000 -
Unrealised appreciation reserve 1,135,138 (4,780,796) 879,094
Capital reserve 1,285,569 1,285,569 1,285,569
Profit and loss account 1,836,915 2,618,300 1,947,507
Shareholders' funds 10,499,847 5,465,298 10,354,395
PALMARIS CAPITAL PLC
For the period ended 31 December 2002
NOTES TO THE ACCOUNTS
1. Details of investments are as follows:
6 months to 6 months to 12 months to
31-Dec-02 31-Dec-01 30-Jun-02
# # #
Shares at lower of cost and market value :
Perseverance Corporation Ltd. 3,902,693 754,240 3,386,593
Mining (Scotland) Ltd. 6,440,000 3,220,000 6,440,000
Other 125,544 150,631 174,391
10,468,237 4,124,871 10,000,984
2. On 3rd August, 2001 Palmaris Capital PLC acquired the assets and
business of Custom Group Services Limited and Custom Plant Services Limited for
a total consideration of 10,000,000 new ordinary shares of 5p each and #500,000
cash subject to certain performance conditions. The acquired companies trade as
Palmaris Services and provide a range of services including plant hire, contract
cleaning, retail security and site guarding.
Only 8,000,000 new ordinary shares have been issued to date. The
balance of 2,000,000 shares will not be issued as the vendor did not comply with
the agreement.
3. The share of associated companies net liabilities have been excluded
from the consolidated accounts on the basis of the true and fair override
4. The calculation of the basic (loss) per ordinary share is based on the
following:
6 MONTHS TO 6 months to 12 months to
31-DEC-02 31-Dec-01 30-Jun-02
# # #
(Loss) (110,590) (186,759) (842,530)
Weighted average number of ordinary
shares in issue during the period 124,844,504 121,703,199 123,452,723
The diluted earnings per share is calculated after allowing for the
35,540,000 warrants issued on the 8th May, 2001
5. The interim financial statements are unaudited and do not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985 (as
amended). These statements have been prepared on the basis of the accounting
policies set out in the Company's 2002 Annual Report & Accounts.
The financial statements for the year ended 30 June 2002 are an
abridged statement ; the full audited accounts for the year to 30 June 2002,
which were unqualified, have been lodged with the Registrar of Companies.
6. The directors do not intend to pay a dividend at this time.
7. Copies of the Interim Results for Palmaris Capital PLC are being posted
to shareholders on 27th March 2003 and may be obtained free of charge for a
period of one month from the Company's registered office or from the Company's
nominated adviser and broker, Noble & Company Limited, 1 Frederick's Place,
London,EC2R 8AB.
27th March, 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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