REG-Bisichi Plc: Half-year Report
30/08/2024 07:15
30 August 2024
BISICHI PLC
Interim Results for the period ended 30 June 2024
For the six months ending 30(th) June 2024:
* EBITDA 1 :
£7.35million (2023:
£1.42million)
* Adjusted EBITDA 2 : £6.65million
(2023: £2.17million)
* Profit before tax
£5.0million (2023: £0.3million)
* EPS (basic): 18.33p
(2023: Loss: 3.18p)
* The increase in group earnings in the first half of the year can be
attributed to a significant improvement in mining production and lower mining
costs at Black Wattle Colliery, the Group’s South African mining operation.
* Total mining production from Black Wattle of 708,000 metric tonnes compared
to 354,000 metric tonnes in the first half of 2023, and 453,000 in the second
half of that year.
* Lower coal prices achievable by Sisonke Coal Processing, the Group’s South
African coal processing operation, as well as continued constraints on the
South African rail network, adversely impacted Group revenue achieved during
the period of £23.5million (H1 2023: £25.9million).
* An interim dividend of 3p (H1 2023: 3p) declared.
END
For further information, please call:
Andrew Heller/Garrett Casey Bisichi PLC
020 7415 5030
1 Earnings before Interest, taxation, depreciation and amortisation.
2 Operating profit before depreciation, fair value adjustments and exchange
movements.
Bisichi PLC
Half year review – 30 June 2024
We are pleased to report that for the six month period ended 30 June 2024,
your company made a profit before interest, tax, depreciation and amortisation
(EBITDA) of £7.35million (H1 2023: £1.42 million) and an operating profit
before depreciation, fair value adjustments and exchange movements (Adjusted
EBITDA) of £6.65million (H1 2023: £2.17million). The higher earnings for the
Group, compared to the first six months of 2023, are mainly attributable to
the significant improvement in mining production and lower mining costs at our
South African coal mining asset, Black Wattle Colliery. This had offset the
lower prices for our coal sold by Sisonke Coal Processing, the Group’s South
African coal processing operation.
At Black Wattle, improved mining conditions at our new mining area had a
significant positive impact on profitability during the period. For the
majority of 2023, geological issues reduced the production from our opencast
mining area as well as increasing related mining and blasting costs. In order
to mitigate these issues, in the third quarter of 2023 the mine opened a lower
cost second mining area. Since the commencement of this new mining area, we
have seen a significant improvement in mining production, and during the first
six months of the year, we are pleased to report that the Group achieved
production of 708,000 metric tonnes, compared to 354,000 metric tonnes in the
first half of 2023 and 453,000 in the second half of the year.
Improved coal production from Black Wattle had a knock-on effect on overall
levels of coal processed at Sisonke Coal Processing throughout the period,
during which the Group sold 618,000 metric tonnes compared to 473,000 metric
tonnes in the first half of 2023 and 1.03million metric tonnes overall in
2023.
As previously announced, constraints which were beyond our control, in
transporting coal for export on the South African rail network, significantly
impacted the Group’s export sales during 2023. Transnet, the South African
state rail operator and the wider South African coal industry, are working
hard collectively to implement measures to increase rail capacity. During the
period, the Group’s rail exports increased to 109,000 metric tonnes,
compared to 59,000 metric tonnes in the first half of 2023 and 75,000 metric
tonnes in the second half of the year. We continue to monitor the progress
being made by Transnet and remain optimistic that the measures being
implemented will have a positive impact on the value achieved from our South
African operations.
During the period, the improved rail exports were offset by lower prices of
Free on Board (FOB) coal from Richards Bay Coal Terminal (API4 price). During
the first half of 2024, the weekly API4 price averaged US$101 compared to
US$128 in the first half of 2023, and US$112 in the second half of the year.
Prices achievable in the domestic market were also lower during the period,
compared to the first half of 2023, due to the knock-on impact of continued
constraints in railing coal by export and lower overall international coal
prices. The decrease in the Group’s mining revenue during the period to
£22.8million (H1 2023: £25.1million) can mainly be attributable to the lower
prices achievable for our coal, offsetting the higher overall quantity of coal
sold.
Looking forward into the second half of 2024, we will continue to see the
benefits from the new mining area at Black Wattle. In addition, we have seen a
stabilisation in coal prices in both the export and domestic market. We remain
confident in the Group’s ability to achieve significant value from our South
African operations.
In the UK, rental revenue from our retail property portfolio remained stable
in the first half of 2024. Overall, the Group billed revenue from our directly
owned property portfolio of £0.54million (H1 2023: £0.54million) during the
first half of the year. The Group continues to hold its joint venture
development investment in
West Ealing, with London & Associated Properties PLC and Metroprop Real Estate
Ltd. The planning consent for 56 flats and four retail units has been fully
implemented. In June 2024 the joint venture secured an offer of funding,
agreed a price for a Registered Provider to purchase the affordable element of
the scheme and agreed a construction cost with a contractor. The contractor
went into administration in July 2024, before we commenced construction, and
we are now in the process of retendering the construction contract. The lender
and the Registered Provider have both indicated that once a new contractor is
selected they will be available to restart the process. We are scheduled to
complete the tendering process in November, with a view to starting on site in
early 2025.
Our joint venture with London and Associated Properties PLC, Dragon Retail
Properties Limited (“Dragon”), executed a new 3-year loan with Santander
UK plc, the existing lender, for £0.74 million in July 2024 with an LTV of
50% at a margin of 3.5% above the Bank of England base rate. This loan is
secured on Dragon’s property portfolio.
During the period, the Group’s total non-current and current listed equity
investments held at fair value through profit and loss increased to
£15.9million (H1 2023: £13.5million). The Group achieved gains on
investments during the period of £0.92million (H1 2023: Loss £0.6million) as
well as dividend income from investments during the period of £0.16million
(H1 2023: £0.28million). As at 30(th) June 2024, the fair value of the
Group’s listed equity related investment portfolios comprised:
* 64% of investments in listed equities with a market capitalisation of
greater then £10billion;
* 25% of investments in listed equities with a market capitalisation of
greater then £1bn and less then £10billion;
* 1% of investments in listed equities with a market capitalisation of less
then £1bn; and
* 10% of an investment in a listed equity related investment fund.
The listed equities and listed equity related investment fund are primarily
involved or invested in extractive and energy related business activities,
including entities involved in the extraction of commodities needed for the
clean energy transition.
As previously announced, we are delighted to welcome Clement Robin Parish to
the Board of Bisichi as an Independent Non-executive Director. Robin’s
appointment took effect from 1st July 2024 and his valuable experience in
management, mining and the investment trading industry, makes him an excellent
addition to the Board. Robin's knowledge and experience will bring a new
perspective to the Group's strategy of growing the company's existing and
future spread of business interests and investments.
Finally, your directors intend to pay an interim dividend of 3p (2023: 3p) per
share. The dividend will be payable on Friday 7 February 2025 to shareholders
registered at the close of business on 10 January 2025.
In light of the reduced coal price and the significant rail challenges
explained above, on behalf of the Board and shareholders, I would like to
thank all of our staff and partners in our South African operations for their
hard work and significant contribution to the results achieved during this
period.
Andrew Heller
Executive Chairman & Managing Director
29 August 2024
Bisichi PLC
Consolidated income statement
For the six months ended 30 June 2024
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 June 30 June 31 December
2024 2023 2023
Notes £000 £000 £000
Group revenue 1 23,480 25,883 49,253
Operating costs (18,428) (24,668) (48,257)
Operating profit on trading activities 5,052 1,215 996
Decrease in value of investment properties - - 145
Gain/(Loss) on investments held at fair value 920 (553) 759
Operating profit 1 5,972 662 1,900
Share of loss in joint ventures (250) (10) (39)
Profit before interest and taxation 5,722 652 1,861
Interest receivable 64 124 222
Interest payable (776) (477) (1,473)
Profit before taxation 1 5,010 299 610
Income tax 2 (1,321) (165) (300)
(Loss)/Profit for the period 3,689 134 310
Attributable to:
Equity holders of the company 1,957 (339) 259
Non-controlling interest 1,732 473 51
(Loss)/Profit for the period 3,689 134 310
Loss/Earnings per share - basic 3 18.33p (3.18p) 2.43p
Loss/Earnings per share - diluted 3 18.33p (3.18p) 2.43p
Bisichi PLC
Consolidated statement of comprehensive income
For the six months ended 30 June 2024
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 June 30 June 31 December
2024 2023 2023
£000 £000 £000
(Loss)/Profit for the period 3,689 134 310
Other comprehensive income/(expenses):
Exchange differences on translation of foreign operations 175 (874) (675)
Taxation - - -
Other comprehensive (loss)/income for the period, net of tax 175 (874) (675)
Total comprehensive (loss)/income for the period 3,864 (740) (365)
Attributable to:
Equity shareholders 2,059 (938) (210)
Non-controlling interest 1,805 198 (155)
Total comprehensive (loss)/income for the period 3,864 (740) (365)
Bisichi PLC
Consolidated Balance Sheet
as at 30 June 2024
Unaudited Unaudited Audited
30 June 2024 30 June 2023 31 December 2023
Assets £000 £000 £000
Non-current-assets
Value of investment properties 10,648 10,465 10,610
Fair value of head leases 170 170 208
Investment property 10,818 10,635 10,818
Mining reserves, plant and equipment 22,661 14,195 18,896
Investments in joint ventures 1,006 1,031 1,002
Deferred tax assets - 183 318
Other investments at fair value through profit and loss (“FVPL”) 15,181 12,740 14,258
Total non-current assets 49,666 38,784 45,292
Current assets
Inventories 3,432 4,502 2,579
Trade and other receivables 8,295 5,651 7,934
Investments in listed securities held at FVPL 768 779 734
Cash and cash equivalents 1,784 6,468 3,242
Total current assets 14,279 17,400 14,489
Total assets 63,945 56,184 59,781
Liabilities
Current liabilities
Borrowings (6,385) (3,556) (7,461)
Trade and other payables (13,042) (9,153) (11,589)
Current tax liabilities (4,750) (4,321) (5,191)
Total current liabilities (24,177) (17,030) (24,241)
Non-current liabilities
Borrowings (18) (3,924) (22)
Provision for rehabilitation (1,635) (1,475) (1,614)
Finance lease liabilities (271) (215) (310)
Deferred tax liabilities (813) - -
Total non-current liabilities (2,737) (5,614) (1,946)
Total liabilities (26,914) (22,644) (26,187)
Net assets 37,031 33,540 33,594
Equity
Share capital 1,068 1,068 1,068
Share premium 258 258 258
Translation reserve (2,926) (3,158) (3,028)
Other reserves 1,112 1,112 1,112
Retained earnings 34,110 32,303 32,580
Total equity attributable to equity shareholders 33,622 31,583 31,990
Non-controlling interest 3,409 1,957 1,604
Total equity 37,031 33,540 33,594
Bisichi PLC
Consolidated Cash Flow Statement
For the six months ended 30 June 2024
Unaudited Unaudited Audited
30 June 30 June 31 December
2024 2023 2023
£000 £000 £000
Cash flows from operating activities
Operating profit 5,972 662 1,900
Depreciation 1,628 764 1,493
Unrealised (gain)/loss on investments (920) 553 (759)
Unrealised loss on investment properties - - (145)
Exchange adjustments (27) 188 158
Movement in working capital (318) (3,947) 133
Net interest paid (712) (353) (1,139)
Income tax (paid)/received (721) (327) 137
Cash flow from operating activities 4,902 (2,460) 1,778
Cash flows from investing activities (5,215) (1,649) (6,701)
Cash flows from financing activities (43) (513) (2,874)
Net increase/(decrease) in cash and cash equivalents (356) (4,622) (7,797)
Cash and cash equivalents at 1 January (292) 7,365 7,365
Exchange adjustment (5) 177 140
Cash and cash equivalents at end of period (653) 2,920 (292)
Cash and cash equivalents
For the purposes of the cash flow statement, cash and
cash equivalents comprise the following balance sheet amounts:
Cash and cash equivalents 1,784 6,468 3,242
Bank overdrafts (2,437) (3,548) (3,534)
Cash and cash equivalents at end of period (653) 2,920 (292)
Bisichi PLC
Consolidated statement of changes in shareholders' equity
For the six months ended 30 June 2024
Share Share Translation Available for sale Other Retained Non-controlling Total
capital premium reserve reserves reserves earnings Total Interest Equity
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2023 1,068 258 (2,559) - 1,112 33,923 33,802 1,759 35,561
Profit for the period - - - - - (339) (339) 473 134
Other comprehensive income and expense - - (599) - - - (599) (275) (874)
Total comprehensive income for the period - - (599) - - (339) (938) 198 (740)
Dividend - - - - - (1,281) (1,281) - (1,281)
Balance at 30 June 2023 1,068 258 (3,158) - 1,112 32,303 31,583 1,957 33,540
Balance at 1 January 2023 1,068 258 (2,559) - 1,112 33,923 33,802 1,759 35,561
Profit for the year - - - - - 259 259 51 310
Other comprehensive income and expense - - (469) - - - (469) (206) (675)
Total comprehensive income for the year - - (469) - - 259 (210) (155) (365)
Dividend - - - - - (1,602) (1,602) - (1,602)
Share options cancelled - - - - - - - - -
Share options issued - - - - - - - - -
Balance at 31 December 2023 1,068 258 (3,028) - 1,112 32,580 31,990 1,604 33,594
Profit for the year - - - - - 1,957 1,957 1,732 3,689
Other comprehensive income and expense - - 102 - - - 102 73 175
Total comprehensive income for the period - - 102 - - 1,957 2,059 1,805 3,864
Dividend - - - - - (427) (427) - (427)
Balance at 30 June 2024 1,068 258 (2,926) - 1,112 34,110 33,622 3,409 37,031
ACCOUNTING POLICIES AND NOTES TO THE
ACCOUNTS:
The results for the six months ended 30 June 2024 have been prepared in
accordance with International Financial Reporting Standards (IFRS). The
principal accounting policies applied are the same as those set out in the
Financial Statements for the year ended 31 December 2023, and which will form
the basis of the 2024 Annual report.
1. Segmental analysis
For management purposes, the Group is organised into two operating Divisions,
Mining and Property. These Divisions are the primary basis on which the Group
reports its segment information. This is consistent with the way the Group is
managed and with the format of the Group's internal financial reporting.
Unaudited Unaudited Audited
30 June 30 June 31 December
2024 2023 2023
£000 £000 £000
Revenue
Mining 22,777 25,060 47,424
Property 541 543 1,268
Other 162 280 561
23,480 25,883 49,253
Operating profit/(loss)
Mining 4,658 715 (271)
Property 233 221 856
Other 1,081 (274) 1,315
5,972 662 1,900
Share of profit in joint ventures (250) (10) (39)
Interest receivable 64 124 222
Interest payable (776) (477) (1,473)
Profit/(Loss) before taxation 5,010 299 610
1. Taxation
Unaudited Unaudited Audited
30 June 30 June 31 December
2024 2023 2023
£000 £000 £000
Based on the results for the period:
Corporation tax at 27% (2023: 27%) 228 6,425 1,318
Deferred taxation 1,093 (469) (1,018)
1,321 5,956 300
1. Earnings/ (loss) per share
Both the basic and diluted earnings per share calculations are based on a
profit of £1,957,000 (2023: loss of £339,000). The basic earnings per share
has been calculated on a weighted average of 10,676,839 (2023: 10,676,839)
ordinary shares being in issue during the year. The diluted earnings per share
has been calculated on the weighted average number of shares in issue of
10,676,839 (2023: 10,676,839) plus the dilutive potential ordinary shares
arising from share options of nil (2023: nil) totalling 10,676,839 (2023:
10,676,839).
1. Investment properties
Investment properties are held at fair value at each reporting period.
Management evaluate on an ongoing basis the impact of the current economic
performance of the UK Retail market on the future performance of the group’s
existing UK property portfolio. The Directors have placed a valuation on the
properties which is not materially different to the value as at 31 December
2023. Therefore no change in fair value of investment properties has been made
during the period. Investment properties are therefore included at a
Director’s valuation which is considered to be the fair value as at 30 June
2024. Please refer to page 85 to 87 of the 2023 Annual report and Accounts for
details on the valuation of investment and development properties as at 31
December 2023.
1. Related Parties
The related parties and the nature of costs recharged are as disclosed in the
Group's annual financial statements for the year ended 31 December 2023. The
Group paid management fees of £100,000 (30 June 2023: £100,000 December
2023: £200,000) to London & Associated Properties PLC, an associated company.
1. Financial information
The above financial information does not constitute statutory accounts within
the meaning of section 434 of the Companies Act 2006. The figures for the
year ended 31st December 2023 are based upon the latest statutory accounts,
which have been delivered to the Registrar of Companies; the report of the
auditors on those accounts was unqualified and did not contain a statement
under Section 498(2) or (3) of the Companies Act 2006.
As required by the Disclosure and Transparency Rules of the UK's Financial
Conduct Authority, the interim financial statements have been prepared in
accordance with the International Financial Reporting Standards (IFRS) and in
accordance with both IAS 34 'Interim Financial Reporting' as adopted by the
United Kingdom and the disclosure requirements of the Listing Rules.
The half year results have not been audited or subject to review by the
company's auditors.
The annual financial statements of Bisichi PLC are prepared in accordance with
UK-adopted international accounting standards in conformity with the
requirements of the Companies Act 2006. The same accounting policies are used
for the six months ended 30 June 2024 as were used for the year ended 31
December 2023.
The assessment of new standards, amendments and interpretations issued but not
effective, are not anticipated to have a material impact on the financial
statements.
The largest areas of estimation and uncertainty in the interim financial
statements are in respect of:
* Life of mine and reserves;
* Depreciation;
* Provision for rehabilitation (relating to environmental rehabilitation of
mining areas);
* Impairment; and
* The valuation of investment and development properties
Property, plant and equipment representing the group’s mining assets in
South Africa are reviewed for impairment where there is evidence of a material
impairment. The impairment test indicated significant headroom as at 31
December 2023 and no impairment was considered appropriate. The directors have
used similar key assumptions and estimates as outlined on page 73 of the 2023
Annual report and Accounts, and no impairment was considered appropriate as at
30 June 2024.
Other areas of estimation and uncertainly are referred to in the Group's
annual financial statements. There have been no significant changes to the
basis of accounting of key estimates and judgements as disclosed in the annual
report as at 31 December 2023.
The Group’s contingent liabilities and bank guarantees are referred to in
the Group's 2023 annual financial statements. Black Wattle Colliery (Pty) Ltd
continues to be involved in a tax dispute in South Africa related to Vat. The
dispute arose during the year ended 31 December 2020 and is related to events
which occurred prior to the years ended 31 December 2020. The interpretation
of laws and regulations in South Africa where the Group operates can be
complex and can lead to challenges from or disputes with regulatory
authorities. Such situations often take significant time to resolve. Where
there is a dispute and where a reliable estimate of the potential liability
cannot be made, or where the Group, based on legal advice, considers that it
is improbable that there will be an outflow of economic resources, no
provision is recognised. Further details of the contingent tax liability can
be found on page 107 of the 2023 Annual report and Accounts.
The interim financial statements have been prepared on the going concern
basis. Cashflow forecasts demonstrate that the group has adequate resources to
continue in operational existence for the foreseeable future and is well
placed to manage its business risks.
1. Dividend
The final dividend in respect of 2023, totalling £427,074 was approved by
the shareholders at the Annual General Meeting held on the 18th June 2024 and
was paid on the 26th July 2024. The final dividends in respect of 2023 are
included as a liability in these interim financial statements. A proposed
interim dividend for the year ended 31 December 2024 totalling £320,305
(2023: £320,305) was approved by the Board of Directors on 29 August 2024 and
has not been included as a liability in these Interim Financial Statements.
1. Principal risks and uncertainties
The Group has an established risk management process which works within the
corporate governance framework as set out in the 2023 Annual Report and
Accounts. Risks and uncertainties identified by the Group are set out on page
20 to 23 of the 2023 Annual Report & Accounts and are reviewed on an ongoing
basis. There have been no significant changes in the first half of 2024 to the
principle risks and uncertainties as set out in the 2023 Annual Report &
Accounts.
Risks faced by the business are assessed by the Board on an ongoing basis.
Strategies for mitigating the risks have been defined and specific measures
for achieving these are already underway. These include the measures outlined
in the Chairman’s Statement, Mining Review and Financial Review &
Performance sections of the 2023 Annual report and Accounts.
The principal risks as stated in the 2023 Annual Report & Accounts reflect the
challenging environment in which the business operates and are considered
under the following broad headings:
Mining:
* Coal price and volume risk
* Mining risk
* Currency risk
* New reserves and mining permissions
* Power supply risk
* Flooding risk
* Environmental risk
* Health & safety risk
* Climate change risk
* Labour risk
* Socio-economic, political instability & regulatory environment risk
* Cashflow
Property:
* Property valuation risk
1. Board approval
These interim results were approved by the Board of Bisichi PLC on 29 August
2024.
DIRECTORS RESPONSIBILITY STATEMENT AND REPORT ON PRINCIPAL RISKS
AND UNCERTAINITIES
Responsibility Statement
We confirm to the best of our knowledge:
(a) the condensed set of financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by the
EU;
(b) the interim management report includes a fair review of the information
required by:
(1) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication
of important events that have occurred during the first six months of the
financial year 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 year; and
(2) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during the period; and any changes in the related
party transactions described in the last annual report that could do so.
This report contains forward-looking statements. These statements are based on
current estimates and projections of management and currently available
information. Future statements are not guarantees of the future developments
and results outlined therein. Rather, future developments and results are
dependent on a number of factors; they involve various risks and uncertainties
and are based upon assumptions that may not prove to be accurate. Risks and
uncertainties identified by the Group are set out on page 20 to 23 of the 2023
Annual Report & Accounts. We do not assume any obligation to update the
forward-looking statements contained in this report.
Andrew Heller
Executive Chairman & Managing Director
29 August 2024
DIRECTORS AND
ADVISERS
Directors
Andrew R Heller MA, ACA (Executive Chairman & Managing
Director)
Robert Grobler PR Cert Eng (Mining
Director)
Garrett Casey CA (SA) (Finance Director)
Christopher A Joll MA (Non-executive) (ceased to be a director
on 18 April 2024)
Clement Robin Parish (Non-executive) (appointed on 1st July
2024)
John A Sibbald BL (Non-executive)
John Wong ACA, CFA (Non-executive)
John Heller LLB MBA (Non-executive)
Secretary & Registered office Garrett Casey CA
(SA)
12 Little Portland
Street
London
W1W 8BJ
Black Wattle Colliery - Directors Andrew Heller (Managing
Director)
Garrett Casey (Finance Director)
Ethan Dube (Commercial Director)
Robert Grobler (Mining Director)
Millicent Zvarayi
Registrars and transfer office Link Group
Central Square
29 Wellington Street
Leeds
LS14DL
UK Telephone: 0371 664 0300
International Telephone: +44 (0) 371 664 0300
(Calls are charged at the standard geographic rate and will vary by
provider. Calls outside the United Kingdom will be charged at the applicable
international rate. We are open between 09:00 - 17:30, Monday to Friday
excluding public holidays in England and Wales)
Website: www.linkgroup.eu
E-mail: shareholderenquiries@linkgroup.co.uk
Company registration number 00112155 (Incorporated in
England and Wales)
Web site
www.bisichi.co.uk
E-mail
admin@bisichi.co.uk
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