Bisichi Plc - Half-year Report
B
Interim Results for the period ended
For the six months ending 30th
-- 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:
[1] Earnings before Interest, taxation, depreciation and amortisation.
[2] Operating profit before depreciation, fair value adjustments and exchange movements.
Half year review –
We are pleased to report that for the six month period ended
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.
During the period, the improved rail exports were offset by lower prices of Free on Board (FOB) coal from
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
West Ealing, with London & Associated Properties PLC and
Our joint venture with London and Associated Properties PLC,
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 30th
-- 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
Finally, your directors intend to pay an interim dividend of 3p (2023: 3p) per share. The dividend will be payable on Friday
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.
Executive Chairman & Managing Director
29 August 2024
Consolidated income statement
For the six months ended
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 5,052 1,215 996
activities
Decrease in value of investment - - 145
properties
Gain/(Loss) on investments held at 920 (553) 759
fair value
Operating profit 1 5,972 662 1,900
Share of loss in joint (250) (10) (39)
ventures
Profit before interest and 5,722 652 1,861
taxation
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 1,957 (339) 259
company
Non-controlling 1,732 473 51
interest
(Loss)/Profit for the 3,689 134 310
period
Loss/Earnings per share - 3 18.33p (3.18p) 2.43p
basic
Loss/Earnings per share - 3 18.33p (3.18p) 2.43p
diluted
Consolidated statement of comprehensive income
For the six months ended
Unaudited Unaudited Audited
6 monthsended 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 175 (874) (675)
of foreign operations
Taxation - - -
Other comprehensive (loss)/income 175 (874) (675)
for the period, net of tax
Total comprehensive
(loss)/income for the 3,864 (740) (365)
period
Attributable to:
Equity shareholders 2,059 (938) (210)
Non-controlling interest 1,805 198 (155)
Total comprehensive
(loss)/income for the 3,864 (740) (365)
period
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 15,181 12,740 14,258
through profit and loss (“FVPL”)
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 768 779 734
held at FVPL
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 33,622 31,583 31,990
shareholders
Non-controlling interest 3,409 1,957 1,604
Total equity 37,031 33,540 33,594
Consolidated Cash Flow Statement
For the six months ended
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 (356) (4,622) (7,797)
equivalents
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)
Consolidated statement of changes in shareholders' equity
For the six months ended
Share Share Translation Available Other Retained Non-controlling Total
for sale
capital premium reserve reserves reserves earnings Total Interest Equity
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 1,068 258 (2,559) - 1,112 33,923 33,802 1,759 35,561
January 2023
Profit for - - - - - (339) (339) 473 134
the period
Other
comprehensive - - (599) - - - (599) (275) (874)
income and
expense
Total
comprehensive - - (599) - - (339) (938) 198 (740)
income for
the period
Dividend - - - - - (1,281) (1,281) - (1,281)
Balance at 30 1,068 258 (3,158) - 1,112 32,303 31,583 1,957 33,540
June 2023
Balance at 1 1,068 258 (2,559) - 1,112 33,923 33,802 1,759 35,561
January 2023
Profit for - - - - - 259 259 51 310
the year
Other
comprehensive - - (469) - - - (469) (206) (675)
income and
expense
Total
comprehensive - - (469) - - 259 (210) (155) (365)
income for
the year
Dividend - - - - - (1,602) (1,602) - (1,602)
Share options - - - - - - - - -
cancelled
Share options - - - - - - - - -
issued
Balance at 31 1,068 258 (3,028) - 1,112 32,580 31,990 1,604 33,594
December 2023
Profit for - - - - - 1,957 1,957 1,732 3,689
the year
Other
comprehensive - - 102 - - - 102 73 175
income and
expense
Total
comprehensive - - 102 - - 1,957 2,059 1,805 3,864
income for
the period
Dividend - - - - - (427) (427) - (427)
Balance at 30 1,068 258 (2,926) - 1,112 34,110 33,622 3,409 37,031
June 2024
ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS:
The results for the six months ended
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
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
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
As required by the Disclosure and Transparency Rules of the
The half year results have not been audited or subject to review by the company's auditors.
The annual financial statements of
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
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
The Group’s contingent liabilities and bank guarantees are referred to in the Group's 2023 annual financial statements.
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
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
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
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)
Millicent Zvarayi
Registrars and transfer office Link Group
Central Square
29
LS14DL
International Telephone: +44 (0) 371 664 0300
(Calls are charged at the standard geographic rate and will vary by provider. Calls outside the
Website: www.linkgroup.eu
E-mail: shareholderenquiries@linkgroup.co.uk
Company registration number 00112155 (Incorporated in
Web site www.bisichi.co.uk
E-mail admin@bisichi.co.uk
