ADM ENERGY PLC Net cash outflow from operating activities (951) (2,032) (909) (1,773) INVESTMENT ACTIVITIES Development costs (181) - - - Loans to subsidiary operation - - (181) (245) Net cash outflow from investment activities (181) - (181) (245) FINANCING ACTIVITIES Continuing operations: Issue of ordinary share capital 848 1,939 848 1,939 Share issue costs (21) (122) (21) (122) Proceeds from short term loans 278 - 278 - Net cash inflow from financing activities 1,105 1,817 1,105 1,817 Net (decrease)/increase in cash and cash equivalents from continuing and total operations (27) (215) 15 (201) Exchange translation difference 42 14 - - Cash and cash equivalents at beginning of period 15 216 15 216 Cash and cash equivalents at end of period 30 15 30 15 Notes to the Financial Statements For the year ended 31 December 2020 1. General Information
The Company is a public limited company incorporated in the United Kingdom and its shares are listed on the AIM market of the London Stock Exchange. The Company is an investment company, mainly investing in natural resources and oil and gas projects. The registered office of the Company is as detailed in the Company Information on page 2.
The information included in this announcement has been extracted from the Company's report and accounts and, therefore, as references and page numbers may be incorrect. Shareholders should read the Company's report and accounts in full which can be found on its website. 2. Principal Accounting Policies
The principal accounting policies adopted in the preparation of these financial statements are set out in the full report and accounts which is available from the Company's website, www.admenergyplc.com. These policies have been consistently applied throughout all periods presented in the financial statements.
As in prior periods, the Group financial statements have been prepared in accordance with International Accounting Standards and interpretations issued by the International Accounting Standards Board (IASB) International Financial Reporting Standards (IFRS) as adopted by the European Union. The financial statements have been prepared using the measurement bases specified by IFRS for each type of asset, liability, income and expense. The measurement bases are more fully described in the accounting policies below.
The current period covered by these financial statements is the year to 31 December 2020. The comparative figures relate to the year ended 31 December 2019. The financial statements are presented in pounds sterling (GBP) which is the functional currency of the Group.
An overview of standards, amendments and interpretations to IFRSs issued but not yet effective, and which have not been adopted early by the Group are presented below under 'Statement of Compliance'.
STATEMENT OF COMPLIANCE
New standards, amendments and interpretations adopted by the Company
The company has applied the following standards and amendments for the first time for its annual reporting period commencing 1 January 2020: . Prepayment Features with Negative Compensation - Amendments to IFRS 9; . Annual Improvements to IFRS Standards 2015-2017 Cycle; . Plan Amendments, Curtailment or Settlement - Amendments to IAS 19;
There are several standards, amendments to standards and interpretations which have been issued by the IASB that are effective in future accounting periods that the Group has not yet adopted. The most significant of these are as follows, which are all effective for the period beginning 1 January 2021: A number of new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 January 2020 and have not been applied in preparing these financial statements. None of these are expected to have a significant effect on the financial statements of the Company.
The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.
New standards and interpretations not yet adopted
A number of new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 January 2020 and have not been applied in preparing these financial statements. None of these are expected to have a significant effect on the financial statements of the Company.
There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Company.
3. Going Concern
At 31 December 2020, the Group recorded a loss for the year of GBP6,904,000 and had net current liabilities of GBP3,392,000, after allowing for cash balances of GBP30,000.
Since the year end, the Group has raised additional equity funding of GBP1,220,000 and realised GBP850,000 from the sale of investments to provide for working capital requirements, and the Directors have prepared cashflow forecasts for the period to 30 September 2022 to assess whether the use of the going concern basis for the preparation of the financial statements is appropriate. In the short term, the Group will require further additional funding in order to meet its liabilities as they fall due and continue to operate as a going concern. The Directors have taken into consideration the level and timing of the Group's working capital requirements (which takes into account recent reductions in costs and control of discretionary spending to preserve cash flow) and has also considered the likelihood of successfully securing funding to meet these needs. In particular, consideration has been given to ongoing discussions around further third-party investment and the extent to which these discussions are advanced both in respect of short and longer term funding. The Directors acknowledge that while they have an expectation that funding will be secured based on this assessment, at the date of approval of these financial statements, no such funding has been unconditionally committed. Therefore, while the Directors have a reasonable expectation that the Group has the ability to raise the additional finance required in order to continue in operational existence for the foreseeable future, the uncertainty surrounding the ability and likely timing of securing such finance indicates that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Were no such funding to be secured, the Group would have no realistic alternative but to halt operations and prepare its financial statements on a non-going concern basis.
4. Earnings and Net Asset Value Per Share
The basic and diluted earnings per share is calculated by dividing the loss attributable to owners of the Group by the weighted average number of ordinary shares in issue during the year.
2020 2019
GBP'000 GBP'000
Loss attributable to owners of the Group
- Continuing operations (6,904) (1,673)
Continuing and discontinued operations (6,904) (1,673)
2020 2019
Weighted average number of shares for calculating basic and fully diluted earnings per share 79,594,655 44,280,670
2020 2019
pence pence
Earnings per share:
Loss per share from continuing and total operations (8.7) (3.8) The weighted average number of shares used for calculating the diluted loss per share for 2020 and 2019 was the same as that used for calculating the basic loss per share as the effect of exercise of the outstanding share options was anti-dilutive.
Net asset value per share ("NAV")
The basic NAV is calculated by dividing the loss total net assets attributable to the owners of the Group by the number
of ordinary shares in issue at the reporting date. The fully diluted NAV is calculated by adding the cost of exercising
any extant warrants and options to the total net assets and dividing the resulting total by the sum of the number of
shares in issue and the number of warrants and options extant at the reporting date.
2020 2019
GBP'000 GBP'000
Total net assets of the Group 11,002 14,930
Cost of exercise of warrants 1,715 1,261
Total net assets for calculation of fully diluted NAV 12,717 16,191 (MORE TO FOLLOW) Dow Jones Newswires
September 30, 2021 10:45 ET (14:45 GMT)
