TIDMSPL
RNS Number : 5315K
SKIL Ports & Logistics Limited
22 September 2016
SKIL Ports & Logistics Limited
22(nd) September 2016
SKIL Ports & Logistics Limited ("SPL" or the "Company")
Interim results for the period ended 30 June 2016
SKIL Ports and Logistics, which is developing a modern port and
logistics facility in Mumbai, India, is pleased to announce its
interim results for the period ended 30 June 2016.
Highlights, including post period end
-- Reclamation of 30 hectares be completed
-- Piling for 100 meters of jetty completed
-- Ground improvement progressing as scheduled
-- Dredging to resume in the coming weeks, after the monsoon period
-- Sales and Marketing effort on-going
As of June 30, 2016 SPL had of GBP24.8 million cash on hand and
GBP24.8 million headroom in its existing credit facility (using the
INR/GBP exchange rate as at 30 June). As of 31 August 2016, these
sums were GBP24.6 million and GBP24.1 million respectively (using
the INR/GBP exchange rate as at 31 August 2016) or GBP23.9 million
and GBP23.3 million (using the INR/GBP exchange rate as at 30 June
2016).
Nikhil Gandhi, Executive Chairman of SPL said, "We continue to
make significant progress in the construction of our port and
logistics facility. Our sales and marketing effort is receiving
positive feedback from potential end users and the Company will
seek to reach agreements with potential end users in the coming
months. The economic and business case for building our facility in
India remains as strong as ever.
We retain significant cash on hand and have headroom in our debt
facility but the discussions with our lead contractor have led the
board to conclude that additional funds will be required to
complete the port and fund the Company until it is generating cash.
As can be seen from these results, the Company is not distressed
financially and continues to explore options on how to fund the
estimated GBP 36 million that will be required. In this regard, the
Company has instructed advisers to consider a proposed placing and
open offer, alongside the board pursuing other funding solutions,
including increasing the Company's existing banking facilities and
securing a strategic partner to invest in the Company's operating
subsidiary. The Company looks forward to updating shareholders and
to completing what we continue to believe will be a successful
project and an integral part of the growth of this remarkable
region.
This announcement contains inside information.
Enquiries:
SPL Nikhil Gandhi
C/O Redleaf PR +44 (0) 20 382
4769
Cenkos Securities plc Stephen Keys/Camilla
+44 (0) 20 7397 8926 Hume
(Nomad and Broker)
Redleaf Communications Charlie Geller/Sam Modlin
+44 (0) 20 382 4769 (Financial PR)
SKIL@redleafpr.com
Chairman's Statement
Operational progress
We are pleased to report that ground work continued on site
without material interruption over the period, with optimised shift
patterns enabling work to be accelerated. Piling continued and, as
at today's date, piles have been driven to support the construction
of an approximately 100m long stretch of the jetty.
To date, we have reclaimed 30 hectares of land and dredging will
resume after the monsoon, which is forecast to conclude shortly. As
expected, we were able to continue ground improvement works during
the monsoon season, albeit at a slower rate, but work will
intensify after the monsoon, allowing us to drive toward our goal
of ensuring that the facility is completed at the end of Q3 next
year. Whilst it is expected that the facility will be capable of
receiving vessels by the end of this year, management are not
forecasting revenues from operations until later in 2017. Further
guidance on this will be given once the port is more advanced and
there has been progress on selling capacity.
Appointments
We were delighted to welcome Lord Howard Flight and Jay Mehta to
the board this month and we look forward to the Company benefitting
from their experience.
Funding requirement
At the time of our Preliminary Results, we stated that
discussions with the lead contractor were likely to conclude that
additional funding would be required to complete the facility.
These discussions continued after the period end when it also
became apparent that the land most recently reclaimed had settled
more than planned. As a result, additional quantity of infill
material will be required. This issue has been exacerbated by price
inflation of quarried fill materials since the project
commenced.
Our discussions with the lead contractor are not yet finalised.
However, the status of these discussions has led the board to
estimate that some additional GBP 36 million will be required to
fund the completion of the project and the Company until it is
financially self-sufficient. In this regard, the Company has
instructed advisers to consider a proposed placing and open offer,
alongside the board pursuing other funding solutions for the
Company's future needs.
We maintain a good relationship with our main contractor
partners and will continue to update shareholders as our
discussions and work with them progress.
Outlook
Work continues with a view to our project being fully
operational by the end of Q3 2017. Many of the risks that hindered
this project are now behind us and the coming year promises to be
one of further strong progress for SPL.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the period ended 30 June 2016
Note
6 months 6 months Year to
to 30 June to 30 June 31 Dec
2016 2015 2015
GBP000 GBP000 GBP000
CONTINUING OPERATIONS
Revenue - - -
Administrative expenses (966) (1,272) (2,214)
------------- ------------- ----------
OPERATING LOSS (966) (1,272) (2,214)
Finance income 972 1,173 2,352
Finance cost - - -
------------- ------------- ----------
NET FINANCING INCOME 972 1,173 2,352
PROFIT / (LOSS) BEFORE TAX 6 (99) 138
Tax expense for the period / year (336) (401) (808)
------------- ------------- ----------
LOSS FOR THE PERIOD / YEAR (330) (500) (670)
Profit / (loss) for the period /
year attributable to:
Non-controlling interest - 1 -
Owners of the parent (330) (501) (670)
------------- ------------- ----------
Loss for the period / year (330) (500) (670)
============= ============= ==========
Other comprehensive income/(expense)
Exchange differences on translating
foreign operations 4 4,589 (725) 348
------------- ------------- ----------
Other comprehensive income / (expense)
for the period / year 4,589 (725) 348
------------- ------------- ----------
Total comprehensive income / (expense)
for the period / year 4,259 (1,225) (322)
============= ============= ==========
Total comprehensive income / (expense)
for the period / year attributable
to:
Non-controlling interest - 1 -
Owners of the parent 4,259 (1,226) (322)
------------- ------------- ----------
4,259 (1,225) (322)
============= ============= ==========
Loss per share (consolidated):
Basic & Diluted, for the year/period
attributable to ordinary equity holders
(GBP) (0.008) (0.011) (0.015)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2016
Note Period Period Year ended
ended ended 31 Dec
30 June 30 June 2015
2016 2015
GBP000 GBP000 GBP000
Assets
Property, plant and equipment 7 66,011 19,718 28,780
---------------------- ---------------------- ------------
Total non-current assets 66,011 19,718 28,780
---------------------- ---------------------- ------------
Trade and other receivables 11,396 15,101 15,832
Cash and cash equivalents 24,830 40,061 38,569
---------------------- ---------------------- ------------
Total current assets 36,226 55,162 54,401
Total assets 102,237 74,880 83,181
====================== ====================== ============
Equity
Share capital and share premium 71,590 71,590 71,590
Retained earnings 4,134 4,634 4,464
Translation reserve (15,063) (20,725) (19,652)
---------------------- ---------------------- ------------
Equity attributable to owners
of parent 60,661 55,499 56,402
---------------------- ---------------------- ------------
Non-controlling interest 15 16 15
---------------------- ---------------------- ------------
Total equity 60,676 55,515 56,417
---------------------- ---------------------- ------------
Liabilities
Non-current
Borrowings 28,226 9,386 17,201
---------------------- ---------------------- ------------
Non-current liabilities 28,226 9,386 17,201
---------------------- ---------------------- ------------
Current
Borrowings 30 29 27
Current tax liabilities 7,947 6,082 6,642
Trade and other payables 5,358 3,868 2,894
---------------------- ---------------------- ------------
Current liabilities 13,335 9,979 9,563
---------------------- ---------------------- ------------
Total liabilities 41,561 19,365 26,764
---------------------- ---------------------- ------------
Total equity and liabilities 102,237 74,880 83,181
====================== ====================== ============
CONSOLIDATED STATEMENT OF CASH FLOWS
for the period ended 30 June 2016
Note 6 months 6 months Year to
to 30 June to 31 Dec
2016 30 June 2015
2015
GBP000 GBP000 GBP000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit / (loss) before tax 6 (99) 138
Adjustments 5 35 (1,205) (2,192)
------------ --------- ----------------
Operating profit/(loss) before
working capital changes 41 (1,304) (2,054)
Net changes in working capital 5 1,078 4,103 2,397
------------ --------- ----------------
Net cash generated from operating
activities 1,119 2,799 343
------------ --------- ----------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and
equipment (29,048) (4,424) (13,222)
Finance income 972 1,173 2,352
------------ --------- ----------------
Net cash used in investing activities (28,076) (3,251) (10,870)
------------ --------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowing 11,028 (6) 7,807
Net cash generated from / (used
in) financing activities 11,028 (6) 7,807
------------ --------- ----------------
Net change in cash and cash equivalents (15,929) (458) (2,720)
Cash and cash equivalents, beginning
of the period / year 38,569 41,041 41,041
Exchange differences on cash and
cash equivalents 2,190 (522) 248
------------ --------- ----------------
Cash and cash equivalents, end
of the period / year 24,830 40,061 38,569
============ ========= ================
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL
STATEMENTS
1. Reporting entity
SKIL Ports & Logistics Limited (the "Company") was
incorporated in Guernsey under the Companies (Guernsey) Law 2008 on
24 August 2010. The condensed interim consolidated financial
statements of the Company for the period ended 30 June 2016
comprise the Company and its subsidiaries (together referred to as
the "Group"). The Company has been established to develop, own and
operate port and logistics facilities.
2. General information and basis of preparation
The condensed interim consolidated financial statements are for
the 6 month period ended 30 June 2016 and are not full year
accounts. The condensed interim consolidated financial statements
are prepared under AIM 18 guidance. They have been prepared on the
historical cost basis. They do not include all of the information
required in annual financial statements in accordance with IFRS.
The condensed interim consolidated financial statements are not
audited.
The condensed interim consolidated financial statements are
presented in Great British Pounds Sterling (GBP), which is the
functional currency of the parent company. The preparation of the
condensed interim consolidated financial statements requires
management to make judgments, estimates and assumptions that affect
the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ
from these estimates.
In preparing these condensed interim consolidated financial
statements, the significant judgments made by management applying
the Group's accounting policies and the key sources of estimation
uncertainty are the same as those applied in the annual IFRS
financial statements.
The Company is confident of its ability to raise further funds
to meet cost overruns, project enhancements or working capital
requirements. The Directors therefore believe that the Company is a
going concern. The Company's financing effort to date is considered
sufficient to enable the Company to fund all aspects of its
operations. As a result, the condensed interim consolidated
financial statements have been prepared on a going concern
basis.
The condensed interim consolidated financial statements have
been approved for issue by the Board of Directors on September 14,
2016.
3. Significant accounting policies
The interim financial statements have been prepared in
accordance with the accounting policies adopted in the Group's last
annual financial statements for the year ended 31 December 2015.
The accounting policies have been applied consistently throughout
the Group for the purposes of preparation of these interim
financial statements.
4. Comprehensive income
The comprehensive income for the period is calculated after
crediting a gain of GBP 4.59 million on the retranslation of cash
balances held in Indian rupees to Great British Pounds Sterling
(GBP).
5. Cash flow adjustments and changes in working capital
The following non-cash flow adjustments and adjustments for
changes in working capital have been made to profit before tax to
arrive at operating cash flow:
Period ended Period ended Year ended
30 Jun 2016 30 Jun 2015 31 Dec 2015
GBP000 GBP000 GBP000
Adjustments
Depreciation 38 11 50
Finance income (972) (1,173) (2,352)
Tax expense (336) (401) (808)
Change in current tax liabilities 1,305 358 918
------------- ------------- ------------
35 (1,205) (2,192)
------------- ------------- ------------
Net changes in working capital
Change in trade and other
payables 2,295 2,887 1,890
Change in trade and other
receivables (1,386) 1,219 488
Change in borrowings 169 (3) 19
------------- ------------- ------------
1,078 4,103 2,397
------------- ------------- ------------
6. Loan facility
Karanja Terminal & Logistics Private Limited (KTLPL), the
Indian subsidiary has in place a rupee term loan of INR 480 crore
(GBP 52.99 million) for part financing the port facility. The rupee
term loan was sanctioned by 4 Indian public sector banks and the
loan agreement was executed on 28(th) February, 2014. The tenure of
the loan is for 12 years with repayment beginning at the end of the
fifth year. The repayment schedule is as follows:
Repayment amount
Payment falling GBP in Million
due INR in Crore
Within 1 year - -
1 to 5 year's 144.00 15.90
After 5 year's 336.00 37.09
Total 480.00 52.99
============= ===============
The rate of interest is a floating rate linked to the Canara
bank base rate with an additional spread of 355 basis points. The
present composite rate of interest is 13.50%. The borrowings are
secured by the hypothecation of the port facility and pledge of its
shares. The carrying amount of the bank borrowing is considered to
be a reasonable approximation of the fair value.
KTLPL has utilised the rupee term loan facility of INR 254.87
crore (GBP 28.14 million) as at 30 June 2016.
7. Property, plant and equipment
During the six months ended 30 June 2016, the Group progressed
construction of the facility and the carrying amount at 30 June
2016 was GBP 65.82 million (31 December 2015: GBP 28.57 million).
The amount of borrowing costs capitalised during the six months
ended 30 June 2016 was GBP 1.65 million (31 December 2015: GBP 1.70
million). The weighted average rate used to determine the amount of
borrowing costs eligible for capitalisation was 13.50 %, which is
the effective interest rate of the specific borrowing.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ELLBLQKFBBBD
(END) Dow Jones Newswires
September 22, 2016 02:01 ET (06:01 GMT)
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