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Interim Results

  Download PDF - Wednesday 24th April 2013 at 06:00am

ALPHA PROSPECTS PLC
("Alpha" or the "Company")

INTERIM RESULTS

Alpha Prospects Plc is an investment holding company listed on the ICAP Securities & Derivatives Exchange Limited growth market, focused on the small and micro-cap sectors. The Company's strategy is to make investments in companies with fast growth and/or recovery prospects.

The Company is pleased to announce its unaudited financial results for the six month period ended 28 February 2013. The results are in line with expectations: the loss for the period was GBP70,853 (2012: loss of GBP18,960). The Company currently holds five investments, the latest of which was acquired after the end of the period. The five investments are Activity Energy Group plc, Coleridge Resources Inc., Hill Street Investments Plc, Ram Active Media plc and Tasmania Oil and Gas Limited.

Chairman's Statement

In the past year the Board has acquired a range of assets across a variety of sectors and we are optimistic that in the current reporting period shareholders will see some positive developments from these investments.

The value of assets held by Alpha show a small decline on the end year figure, this was due to the sale of part of a holding to help cover operating costs. However, since the period end this decline has reversed.

New Investment

In September 2012, the Company announced that, subject to certain conditions being satisfied by 15 May 2013, Alpha would subscribe for a 20% interest, in Tasmania Oil and Gas Limited (`TOG'), which the Directors believe is an exciting oil and gas opportunity in Tasmania.

TOG is a joint venture company, established to fund exploration and development of oil and gas in Tasmania, Australia, through the initial acquisition of Empire Energy Corporation Inc's subsidiary, GSLM, which holds an onshore licence EL14/2009. TOG's other main shareholders are, subject to completion, TXO Plc (25%), Hill Street Investments Plc (10%) and Empire Energy (45%).

I am pleased to announce that Alpha has acquired a 20% interest in TOG for a consideration of approximately GBP1 million. The consideration has been satisfied by the issue to TOG of 33,333,333 ordinary shares in Alpha at a price of 3p per share.

As part of the joint venture agreement Empire Energy, whose subsidiary holds the EL 14/2009 licence, will receive shares in TOG in exchange for the debenture over the licence EL 14/2009 held by its subsidiary Great South Land Minerals ("GSLM") (currently in administration). It is planned that GSLM becomes a wholly owned subsidiary of TOG.

Although the licence EL 14/2009 is under appeal by Mineral Resources Tasmania, the State Ministry, we are confident, having taken legal advice, that the appeal will be dismissed and that we have secured a very valuable interest.

The Competent Persons Report (`CPR') dated January 2013, which was commissioned by TOG and undertaken by Senergy (GB) Limited, showed that the licence area controlled by TOG has an Estimated Total Mean Recoverable Prospective (ETMRP) Resource of the Bellevue and Thunderbolt structures totalling 2.7 Trillion Cubic Feet (TCF) of gas or in terms of oil, 508 Million Barrels (0.5 Billion Barrels) of Oil Equivalent.

TOG subsequently engaged Senergy (GB) to work on an Economic Evaluation of the Bellevue and Thunderbolt ETMRP Resources, based upon the CPR results, to calculate the Net Present Value and Monetary Value figures.

Outlook

We are continually looking to expand the portfolio and to this end we are looking at various funding opportunities. The Board is in discussion with a number of overseas parties that we hope will invest in Alpha.

Overall the period under review has been positive, a large amount of work has been carried out by the investee companies and we are optimistic that this will translate into an uplift in their value in the coming months.

Steven Freudmann
Chairman

Unaudited Financial Statements for the six months period ended 29 February 2013

 

6 Months to
29 Feb 2013

(Unaudited)
GBP

6 Months to
Feb 2012

(Unaudited)
GBP

Year to 31
Aug 2012

(Audited)
GBP

Continuing operations
Revenue
2,500
-
-
Cost of sales
-
-
-
 
2,500
-
-
Administrative expenses
(27,535)
(18,266)
(164,947)
Administrative expenses - exceptional item
-
-
(125,000)
 
(25,035)
(18,266)
(289,947)
Loss on dispsal of assets
(45,818)
(694)
-
Operating Loss
(70,853)
(18,960)
(289,947)
Finance income
-
-
-
Finance expense
-
-
-
Net finance expense
-
-
-
Loss before income tax
(70,853)
(18,960)
(289,947)
Income tax expense
-
-
-
Loss for the period from continuing operations
(70,853)
(18,960)
(289,947)
Earnings per share
Basic earnings per share -
continuing and total operations
(0.03)p
(0.01)p
(0.18)p
Diluted earnings per share -
continuing and total operations
(0.03)p
(0.01)p
(0.18)p

 

STATEMENT COMPREHENSIVE INCOME FOR THE PERIOD ENDED 29 FEBRUARY 2013

 
6 Months to
29 Feb 2013
(Unaudited)
GBP
6 Months to
28th Feb 2012
(Unaudited)
GBP
Year to
31 Aug 2012
(Audited)
GBP
Loss for the period
(70,853)
(18,960)
(289,947)
Other comprehensive income
Changes in fair value of available-for-sale
financial assets
-
-
(215,747)
Other comprehensive income, net of tax
(70,853)
-
(215,747)
Total comprehensive income
(70,853)
(18,960)
(505,694)

 

STATEMENT OF FINANCIAL POSITION AS AT 29 FEBRUARY 2013

 
6 Months to
29 Feb 2013
(Unaudited)
GBP
6 Months to
28 Feb 2012
(Unaudited)
GBP
Year to
31 Aug 2012
(Audited)
GBP
Assets
Non-current assets
Property, plant & equipment
-
-
-
Available-for-sale financial assets
1,597,039
384,603
1,648,857
 
1,597,039
308,603
1,648,857
Current assets
Trade and other receivables
5,340
142,863
12,783
Cash and cash equivalents
9,652
33,432
9,068
 
14,992
176,295
21,851
Total assets
1,609,031
560,898
1,670,708
Equity
Capital and reserves attributable to equity
holders of the Company
Ordinary shares
1,038,911
673,800
1,038,911
Share premium account
2,134,397
974,509
2,134,397
 
50,491
-
50,491
Retained earnings
(1,779,657)
(1,222,070)
(1,708,804)
Total equity
1,444,142
426,239
1,514,995
Liabilities
Current liabilities
Trade and other payables
167,889
134,659
155,713
 
167,889
134,659
155,713
Total liabilities
167,889
134,659
155,713
Total equity and liabilities
1,612,031
560,898
1,670,708

 

BASIS OF PREPARATION

The financial statements of the company have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union, IFRIC interpretations and the Companies Act 2006 as applicable to companies reporting under IFRS. These accounts have been prepared under the historical cost convention, as modified by the revaluation of land and buildings and certain financial instruments.

The interim results do not constitute the statutory accounts within the meaning of s435 of the Companies Act 2006. The financial information in this report has not been audited or reviewed by the Company's auditor.

The Directors do not recommend the payment of dividends.

Enquiries:

ALPHA PROSPECTS PLC Christopher Foster +44 20 7518 4300
PETERHOUSE CORPORATE FINANCE LIMITED Eran Zucker / Fungai Ndoro +44 20 7469 0930