TIDMPMEA
RNS Number : 0281B
PME African Infrastructure Opps PLC
18 September 2018
18 September 2018
PME African Infrastructure Opportunities plc
("PME" or the "Company")
(AIM: PMEA.L)
Interim Results for the six months ended 30 June 2018
PME African Infrastructure Opportunities plc announces its
unaudited interim results for the six months ended 30 June
2018.
Financial Highlights
-- Net Asset Value of US$4.9 million (31 December 2017: US$5.2 million)
-- Net Asset Value per share of US$0.20 (31 December 2017: US$0.21 per share)
-- Loss for the six months ended 30 June 2018 was US$0.26
million (H1 2017:loss of US$0.33 million)
-- Basic and diluted loss per share of US$0.0104 (H1 2017: loss per share of US$0.0081)
Certain of the information communicated within this announcement
is deemed to constitute inside information as stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
For further information please contact:
Smith & Williamson Corporate Finance Limited
Nominated Adviser
Azhic Basirov / Ben Jeynes +44 20 7131 4000
Stifel Nicolaus Europe Limited
Broker
Neil Winward / Tom Yeadon +44 20 7710 7600
Chairman's Statement
On behalf of the Board of Directors (the "Board"), I am pleased
to present the unaudited interim results for PME African
Infrastructure Opportunities plc ("PME" or the "Company" and
together with its subsidiaries the "Group") for the six months
ended 30 June 2018.
The remit of the Company's directors (the "Directors") under the
Company's investing policy is to seek to realise the remaining
assets of the Company and to return both existing cash reserves and
the net proceeds of realisation of the remaining assets to
shareholders.
Investments
The Company has one asset, a building in Dar-es-Salaam, Tanzania
(the "Dar-es-Salaam Property").
The Dar-es-Salaam Property, which is managed by a local managing
agent, is currently 80% let. The investment continues to trade
profitably. In 2010 PME Properties Limited acquired the property
from Dovetel (T) Limited ("Dovetel"), the Company's former
telecommunication investee company in Tanzania.
Dovetel was also a tenant of part of the Dar-es-Salaam Property
but was in default on the payment of rent. On 3 December 2017
Dovetel was evicted from the premises. First Seal Ltd, Dovetel's
parent company raised complaints with local authorities that the
eviction was incorrectly carried out. The local police's enquiries
are continuing at the time of writing with the Group having
responded to local police in respect of these allegations through
the lawyers appointed by the Group to execute the eviction. In its
response, the Group highlighted the background to the Dovetel
eviction, confirmed that the eviction was conducted by the landlord
through the Court Broker who is legally authorised and provided the
police with documentation providing the Group's ownership of the
Dar-es-Salaam building and that Dovetel were merely a tenant of the
Dar-es-Salaam property. As previously stated, the Company considers
the allegations to have no foundation and will continue to strongly
defend itself and its ownership of the building. No provision has
been made for the Dovetel action. The directors consider it without
merit.
A planned visit to Tanzania has been postponed until the police
enquiries are concluded. This is unfortunately delaying the sale of
the building.
The Dar-es-Salaam Property has three tenants. One tenant has a
five year lease agreement for 628 square metres ending in May 2021.
The second tenant rents 809 square metres and the contract runs to
October 2019. The third tenant leases 1,206 square metres and has a
contract ending in February 2020. The managing agent is attempting
to let two areas that remain empty.
The Directors have maintained the value of the Dar-es-Salaam
Property at US$4.66m. This valuation is in line with the value
assessed by the local expert and takes into account both current
vacancy levels and the current economic climate.
There is still uncertainty about the economic position of
Tanzania and the market for high end office accommodation has not
improved. The prospect of selling the building in the short term
for a reasonable price remains uncertain.
In 2016 the Tanzanian Revenue Authority ("TRA") performed a tax
audit for the years 2013 to 2015. The Board accepted their
assessment for withholding tax and VAT but is appealing the income
tax assessment of approximately $320k. The Tanzanian subsidiary
applied to use tax credits for the payment of the withholding tax
and VAT liabilities and for the cost of the appeal which equates to
30% of the assessed amount. The TRA have still not confirmed their
acceptance of tax credits for settling the agreed assessment and
for the cost of the appeal. The appeal on the income tax
assessments has also not yet been concluded. The Board discussed
with its local advisers the likely outcome of the appeal and
concluded that no provision was required. The Board continues to
work with its local advisers to finalise the tax position of the
Tanzanian company with the local tax authorities.
Financial Results
The loss for the six months ended 30 June 2018 was US$0.26
million (2017: loss of US$0.33 million), representing US$0.0104
loss per Ordinary Share (2017: loss per Ordinary Share US$0.0081).
The loss for the period was made up of the net gain in the fair
value of assets less ongoing operating and administrative costs.
The Directors are working on reducing the operational costs which
for the six months to June 2018 were US$0.29 million compared to
US$0.49 million for the same period last year.
The Directors, having considered the latest valuation of the
Dar-es-Salaam Property, are of the opinion that the Dar-es-Salaam
Property is reflected in the balance sheet at a realistic fair
value.
As at 30 June 2018, PME's Net Asset Value attributable to
ordinary shareholders in accordance with IFRS was US$4.9 million
(US$0.20 per share), compared to the US$5.2 million (US$0.21 per
share) that was reported as at 31 December 2017.
Return of Cash and Outlook
The marketing process for the sale of the Dar-es-Salaam Property
has been postponed due to the ongoing police investigation and the
tax negotiations. The sale process will begin once the police
investigation is concluded and the tax position is clarified, the
local economic uncertainty has receded and the vacant space has
been let.
A further and final tender will be proposed once the building
has been sold.
Paul Macdonald
Chairman
17 September 2018
Statement of Comprehensive Income
(Unaudited) (Unaudited)
Period from 1 January Period from 1 January 2017 to 30 June
2018 to 30 June 2018 2017
Note US$'000 US$'000
------------------------------------------ ----- ----------------------- ------------------------------------------
Net gains/(losses) on financial assets at
fair value through profit or loss 3 43 (68)
Dividend income - 226
Operating and administration expenses 9 (290) (490)
Foreign exchange (loss)/gain (8) 2
------------------------------------------ ----- ----------------------- ------------------------------------------
Loss before income tax (255) (330)
Income tax 14 - -
------------------------------------------ ----- ----------------------- ------------------------------------------
Loss and total comprehensive expense for
the period (255) (330)
Basic and diluted loss per share (cents)
attributable to the equity holders of
the Company
during the period 5 (1.04) (0.81)
------------------------------------------ ----- ----------------------- ------------------------------------------
The accompanying notes form an integral part of these interim
financial statements
Balance Sheet
(Unaudited) (Audited)
As at 30 June 2018 As at 31 December 2017
Note US$'000 US$'000
------------------------------------------------------- ----- -------------------- ------------------------
Assets
Current assets
Financial assets at fair value through profit or loss 3 4,758 4,687
Trade and other receivables 19 26
Cash and cash equivalents 218 554
------------------------------------------------------- ----- -------------------- ------------------------
Total current assets 4,995 5,267
------------------------------------------------------- ----- -------------------- ------------------------
Total assets 4,995 5,267
------------------------------------------------------- ----- -------------------- ------------------------
Equity and liabilities
Equity
Issued share capital 6 246 246
Capital redemption reserve 7 1,559 1,559
Retained earnings 3,110 3,365
------------------------------------------------------- ----- -------------------- ------------------------
Total equity 4,915 5,170
------------------------------------------------------- ----- -------------------- ------------------------
Current liabilities
Trade and other payables 8 80 97
------------------------------------------------------- ----- -------------------- ------------------------
Total current liabilities 80 97
------------------------------------------------------- ----- -------------------- ------------------------
Total liabilities 80 97
------------------------------------------------------- ----- -------------------- ------------------------
Total equity and liabilities 4,995 5,267
------------------------------------------------------- ----- -------------------- ------------------------
The accompanying notes form an integral part of these interim
financial statements
Statement of Changes in Equity
Share capital Capital redemption reserve Retained earnings Total
US$'000 US$'000 US$'000 US$'000
-------------------------------------------- ----------------------------- ------------------ --------
Balance at 1 January 2017 410 1,395 7,682 9,487
--------------------------------------------- ----------- ---------------- ------------------ --------
Comprehensive expense
Loss for the period - - (330) (330)
--------------------------------------------- ----------- ---------------- ------------------ --------
Total comprehensive expense for the period - - (330) (330)
--------------------------------------------- ----------- ---------------- ------------------ --------
Balance at 30 June 2017 410 1,395 7,352 9,157
--------------------------------------------- ----------- ---------------- ------------------ --------
Balance at 1 January 2018 246 1,559 3,365 5,170
-------------------------------------------- ---- ------ ------ ------
Comprehensive expense
Loss for the period - - (255) (255)
-------------------------------------------- ---- ------ ------ ------
Total comprehensive expense for the period - - (255) (255)
-------------------------------------------- ---- ------ ------ ------
Balance at 30 June 2018 246 1,559 3,110 4,915
-------------------------------------------- ---- ------ ------ ------
The accompanying notes on pages 8 to 15 form an integral part of
these interim financial statements
Cash Flow Statement (Unaudited) (Unaudited)
Period from 1 January 2018 to 30 Period from 1 January 2017 to 30
June 2018 June 2017
Note US$'000 US$'000
------------------------------------ ----- ----------------------------------- ------------------------------------
Cash flows from operating
activities
Purchase of financial assets -
loans to investee companies 3 (26) (47)
Dividends received - 226
Operating and administrative
expenses paid (310) (413)
------------------------------------ ----- ----------------------------------- ------------------------------------
Net cash used in operating
activities (336) (234)
------------------------------------ ----- ----------------------------------- ------------------------------------
Net decrease in cash and cash
equivalents (336) (234)
Cash and cash equivalents at
beginning of period 554 261
Foreign exchange gains on cash and
cash equivalents - 1
------------------------------------ ----- ----------------------------------- ------------------------------------
Cash and cash equivalents at end of
period 218 28
------------------------------------ ----- ----------------------------------- ------------------------------------
The accompanying notes form an integral part of these interim
financial statements
Notes to the Interim Financial Statements
1 General Information
PME African Infrastructure Opportunities plc (the "Company") was
incorporated and is registered and domiciled in the Isle of Man
under the Isle of Man Companies Acts 1931 to 2004 on 19 June 2007
as a public limited company with registered number 120060C. The
investment objective of PME African Infrastructure Opportunities
plc and its subsidiaries (the "Group") was to achieve significant
total return to investors through investing in various
infrastructure projects and related opportunities across a range of
countries in sub-Saharan Africa. On 19 October 2012 the
shareholders approved the revision of the Company's Investing
Policy which is now to realise the remaining assets of the Company
and to return both existing cash reserves and the proceeds of
realisation of the remaining assets to shareholders.
The Company's investment activities were managed by PME
Infrastructure Managers Limited (the "Investment Manager") to 6
July 2012. No alternate has been appointed therefore the Board of
Directors has assumed responsibility for the management of the
Company's remaining assets. The Company's administration is
delegated to Galileo Fund Services Limited (the "Administrator").
The registered office of the Company is Millennium House, 46 Athol
Street, Douglas, Isle of Man, IM1 1JB.
Pursuant to its AIM admission document dated 6 July 2007, there
was an original placing of up to 180,450,000 Ordinary Shares with
Warrants attached on the basis of 1 Warrant for every 5 Ordinary
Shares. Following the close of the placing on 12 July 2007,
180,450,000 Shares and 36,090,000 Warrants were issued. The
Warrants lapsed in July 2012. The Shares of the Company were
admitted to trading on AIM, a market of the London Stock Exchange,
on 12 July 2007 when dealings also commenced.
Financial Year End
The financial year end for the Company is 31 December in each
year.
Going concern
In assessing the going concern basis of preparation of the
interim financial statements for the period ended 30 June 2018, the
Directors have taken into account the status of current
negotiations on the realisation of the remaining assets. The
Directors consider that the Group has sufficient funds for its
ongoing operations and therefore have continued to adopt the going
concern basis in preparing these interim financial statements.
2 Summary of Significant Accounting Policies
2.1 Basis of preparation
The accounting policies applied by the Company in the
preparation of these condensed financial statements are the same as
those applied by the Company in its financial statements for the
year ended 31 December 2017, except for the adoption of new and
amended standards and interpretations as set out below.
These interim financial statements have been prepared in
accordance with IAS 34 'Interim Financial Reporting' as adopted by
the European Union. They do not include all of the information
required for full annual financial statements and should be read in
conjunction with the financial statements of the Company as at and
for the year ended 31 December 2017, which have been prepared in
accordance with International Financial Reporting Standards
("IFRS") as adopted by the European Union.
In accordance with IFRS 10, 'Consolidated financial statements',
the Directors have concluded that the Company meets the definition
of an investment entity and therefore no longer consolidates its
subsidiaries, instead it is required to account for these
subsidiaries at fair value through profit or loss in accordance
with IAS 39, 'Financial instruments: recognition and measurement'
and prepares separate company financial statements only.
The interim financial statements for the six months ended 30
June 2018 are unaudited. The comparative interim figures for the
six months ended 30 June 2017 are also unaudited.
New and amended standards and interpretations adopted by the
Company
IFRS 9, 'Financial instruments', final version issued July 2014.
This standard replaces the guidance in IAS 39, 'Financial
instruments: recognition and measurement' that relate to the
recognition, derecognition, classification, measurement and
impairment of financial assets and financial liabilities.
The standard became applicable and was adopted by the Company
from 1 January 2018. The adoption of the revised standard resulted
in changes in accounting policies, but these had no material impact
on the amounts recognised in the financial statements and did not
require any retrospective adjustment.
The Company classifies its financial assets in the following
categories: at fair value through profit or loss, and at amortised
cost. The classification depends on the Company's business model
for managing the financial assets and the contractual terms of the
cash flows.
Assets that are debt instruments held for collection of
contractual cash flows where those cash flows represent solely
payment of principal and interest are measured at amortised cost.
The Company's financial assets at amortised cost comprise 'trade
and other receivables' and 'cash at bank' in the balance sheet.
The Company designates its equity investments as at fair value
through profit or loss. Related loans and similar debt instruments
are also measured at fair value through profit or loss if they do
not meet the criteria for amortised cost and the business model for
holding the financial assets does not include the collection of
contractual cash flows. The business model is for selling the
financial assets in accordance with the Company's investing
policy.
There has been no change to the Company's measurement policies
for financial assets or financial liabilities. However from 1
January 2018, a provision for impairment is established by the
Company assessing, on a forward looking basis the expected credit
losses associated with its debt instruments carried at amortised
cost. The impairment methodology applied depends on whether there
has been a significant increase in credit risk. For trade
receivables, the Company applies the simplified approach permitted
by IFRS 9, which requires expected lifetime losses to be recognised
from initial recognition of the receivables.
3 Financial Assets at Fair Value through Profit or Loss
The following subsidiaries of the Company are held at fair value
in accordance with IFRS 10:
Country of incorporation Percentage of shares held
------------------------------------- -------------------------- --------------------------
PME Locomotives (Mauritius) Limited Mauritius 100%
PME TZ Property (Mauritius) Limited Mauritius 100%
------------------------------------- -------------------------- --------------------------
The following company is an indirect investment of the Company
and is included within the fair value of the direct
investments:
Country of incorporation Percentage of shares held Parent company
----------------------- ------------------------- -------------------------- ------------------------------------
PME Properties Limited Tanzania 100% PME TZ Property (Mauritius) Limited
----------------------- ------------------------- -------------------------- ------------------------------------
The following table shows a reconciliation of the opening
balances to the closing balances for fair value measurements:
30 June 2018 31 December 2017
US$'000 US$'000
------------------------------------------------ ------------- -----------------
Start of the period/year 4,687 9,260
Increase in loans to investee companies 26 14
Subsidiary expenses to be paid by the Company* 2 17
Return of capital** - (4,400)
Movement in fair value of financial assets 43 (204)
End of the period/year 4,758 4,687
------------------------------------------------ ------------- -----------------
*The bank account for PME Locomotives (Mauritius) Limited was
closed during 2017 and all money transferred to the Company's bank
account. The Company is therefore responsible for its subsidiary's
creditors at the period end (note 8).
Assets carried at amounts based on fair value are defined as
follows:
-- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
-- Inputs other than quoted prices included within level 1 that
are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices) (Level
2).
-- Inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs) (Level
3).
The fair values of all financial assets at fair value through
profit or loss are determined using valuation techniques using
significant unobservable inputs. Accordingly, the fair values are
classified as level 3. There were no transfers between levels
during the current period or prior year. The key inputs and most
significant unobservable inputs are shown below.
Fair value as at Fair value as at Valuation Significant Sensitivity to
30 June 2018 31 December 2017 techniques and unobservable significant
US$'000 inputs inputs unobservable inputs
US$'000
------------------ ------------------ ----------------- ------------------ ----------------- --------------------
Rail assets (PME
Locomotives
(Mauritius) Value of net
Limited) 9 4 assets N/A N/A
Real estate 4,749 4,683 Discounted cash Discount rate If the discount
investments (PME flow property rate were 1%
TZ Property valuation (inputs higher/lower the
(Mauritius) including rental estimated fair
Limited) income, operating value would
costs, (decrease)/increase
vacancy and by US$40,000
discount rate)
plus value of N/A
other net assets
------------------ ------------------ ----------------- ------------------ ----------------- --------------------
Total 4,758 4,687
------------------ ------------------ ----------------- ------------------ ----------------- --------------------
4 Net Asset Value per Share
As at 30 June 2018 As at 31 December 2017
----------------------------------------------------- --------------------------------- ----------------------------
Net assets attributable to equity holders of the
Company (US$'000) 4,915 5,170
Shares in issue (thousands) 24,584 24,584
----------------------------------------------------- --------------------------------- ----------------------------
NAV per share (US$) 0.20 0.21
----------------------------------------------------- --------------------------------- ----------------------------
The NAV per share is calculated by dividing the net assets
attributable to equity holders of the Company by the number of
Ordinary Shares in issue.
5 Basic and Diluted Loss per Share
Basic loss per share is calculated by dividing the loss
attributable to equity holders of the Company by the weighted
average number of Ordinary Shares in issue during the period.
Period ended Period ended
30 June 2018 30 June 2017
----------------------------------------------------------------- --------------- ---------------
Loss attributable to equity holders of the Company (US$'000) (255) (330)
Weighted average number of Ordinary Shares in issue (thousands) 24,584 40,973
----------------------------------------------------------------- --------------- ---------------
Basic loss per share (cents) from loss for the period (1.04) (0.81)
----------------------------------------------------------------- --------------- ---------------
There is no difference between basic and diluted Ordinary Shares
as there are no potential dilutive Ordinary Shares.
6 Share Capital
Ordinary Shares of US$0.01 each 31 December 2017 and 31 December 2017 and
30 June 2018 30 June 2018
Number US$'000
--------------------------------- --------------------- ---------------------
Authorised 500,000,000 5,000
--------------------------------- --------------------- ---------------------
C Shares of US$1 each 31 December 2017 and 31 December 2017 and
30 June 2018 30 June 2018
Number US$'000
----------------------- --------------------- ---------------------
Authorised 5,000,000 5,000
Issued - -
----------------------- --------------------- ---------------------
Ordinary Shares of US$0.01 each 30 June 2018 31 December 2017
US$'000 US$'000
----------------------------------------------------------- ------------- -----------------
24,583,942 (31 December 2017: 24,583,942) Ordinary Shares
in issue, with full voting rights 246 246
----------------------------------------------------------- ------------- -----------------
At incorporation the authorised share capital of the Company was
US$10,000,000 divided into 500,000,000 Ordinary Shares of US$0.01
each and 5,000,000 C Shares of US$1.00 each. The holders of
Ordinary Shares are entitled to receive dividends as declared from
time to time and are entitled to one vote per share at meetings of
the Company.
The holders of C Shares would be entitled to one vote per share
at the meetings of the Company. The C Shares can be converted into
Ordinary Shares on the approval of the Directors. On conversion
each C share would be sub-divided into 100 C Shares of US$0.01 each
and will be automatically converted into New Ordinary Shares of
US$0.01 each.
Dividends and tender offers are recognised as a liability in the
period in which they are declared and approved.
7 Capital Redemption Reserve
The capital redemption reserve is created on the cancellation of
shares equal to the par value of shares cancelled. This reserve is
not distributable.
8 Trade and Other Payables
30 June 2018 31 December 2017
US$'000 US$'000
----------------------------------------------- ------------- -----------------
Administration fees payable 14 19
Audit fee payable 21 42
CREST service provider fee payable 7 6
Directors' fees and expenses payable 6 -
Subsidiary expenses to be paid by the Company 19 17
Other sundry creditors 13 13
80 97
----------------------------------------------- ------------- -----------------
The fair value of the above financial liabilities approximates
their carrying amounts.
9 Operating and Administration Expenses
Period ended Period ended
30 June 2018 30 June 2017
US$'000 US$'000
--------------------------------------- --------------- --------------
Administration expenses 59 72
Administrator and Registrar fees 30 41
Audit fees 21 28
Directors' fees 112 115
Professional fees 48 214
Other 20 20
--------------------------------------- --------------- --------------
Operating and administration expenses 290 490
--------------------------------------- --------------- --------------
Administrator and Registrar fees
The Administrator receives a fee on a time spent basis, subject
to a minimum monthly fee of GBP2,750, payable quarterly in
arrears.
Administration fees expensed by the Company for the period ended
30 June 2018 amounted to US$26,160 (30 June 2017: US$37,451).
The Administrator provides general secretarial services to the
Company, for which it receives a minimum annual fee of GBP5,000.
Additional fees, based on time and charges, apply where the number
of Board meetings exceeds four per annum. For attendance at
meetings not held in the Isle of Man, an attendance fee of GBP1,000
per day or part thereof is charged. The fees payable by the Company
for general secretarial services for the period ended 30 June 2018
amounted to US$3,964 (30 June 2017: US$3,901).
Administration fees of the Mauritian subsidiaries for the period
ended 30 June 2018 amounted to US$7,066 (30 June 2017:
US$8,625).
Administration fees of PME Properties Limited for the period
ended 30 June 2018 amounted to US$21,525 (30 June 2017:
US$34,897).
Directors' Remuneration
The maximum amount of basic remuneration payable by the Company
by way of fees to the Directors permitted under the Articles of
Association is GBP200,000 per annum. The Directors are each
entitled to receive reimbursement of any expenses incurred in
relation to their appointment. The Executive Directors are entitled
to receive annual basic salaries of GBP75,000.
Directors' Remuneration (continued)
Total fees and basic remuneration (including VAT where
applicable) and expenses payable by the Company for the period
ended 30 June 2018 amounted to US$111,633 (30 June 2017:
US$114,758) and was split as below. Directors' insurance cover
payable amounted to US$14,877 (30 June 2017: US$14,877).
Period ended Period ended
30 June 2018 30 June 2017
US$'000 US$'000
----------------------- -------------- --------------
Paul Macdonald 50 49
Lawrence Kearns 55 54
Expense reimbursement 7 12
112 115
----------------------- -------------- --------------
10 Operating Segments
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker is the person or group that
allocates resources to and assesses the performance of the
operating segments of an entity. The chief operating
decision-makers have been identified as the Board of Directors.
The Board reviews the Company's internal reporting in order to
assess performance and allocate resources. It has determined the
operating segments based on these reports. The Board considers the
business on a project by project basis by type of business. The
type of business is transport (railway) and leasehold property.
Six months ended 30 June 2018 Transport Leasehold Other* Total
Property
PME Locomotives PME TZ
Property
US$'000 US$'000 US$'000 US$'000
------------------------------------------------------------ ---------------- ---------- -------- ----------
Net gains/(losses) on financial assets at fair value
through profit or loss (16) 59 - 43
Profit/(loss) for the period (16) 59 (298) (255)
------------------------------------------------------------ ---------------- ---------- -------- ----------
* Other refers to income and expenses of the Company not
specific to any specific sector such as income on un-invested funds
and corporate expenses.
Six months ended 30 June 2017 Transport Leasehold Other** Total
Property
PME Locomotives PME TZ
Property
US$'000 US$'000 US$'000 US$'000
-------------------------------------------------------------- ---------------- ---------- -------- ----------
Net losses on financial assets at fair value through profit
or loss 128 (196) - (68)
Dividend income - 226 - 226
Loss for the period 128 30 (488) (330)
-------------------------------------------------------------- ---------------- ---------- -------- ----------
** Other refers to income and expenses of the Company not
specific to any specific sector such as income on un-invested funds
and corporate expenses.
30 June 2018 Transport Leasehold Other* Total
Property
PME Locomotives PME TZ
Property
US$'000 US$'000 US$'000 US$'000
--------------------- ---------------- ---------- -------- ----------
Segment assets 9 4,749 237 4,995
Segment liabilities - - (80) (80)
--------------------- ---------------- ---------- -------- ----------
* Other assets comprise cash and cash equivalents US$217,664 and
other assets US$19,297.
31 December 2017 Transport Leasehold Other** Total
Property
PME Locomotives PME TZ Property
US$'000 US$'000 US$'000 US$'000
--------------------- ---------------- ---------------- -------- ----------
Segment assets 4 4,683 580 5,267
Segment liabilities - - (97) (97)
--------------------- ---------------- ---------------- -------- ----------
** Other assets comprise cash and cash equivalents US$554,414
and other assets US$26,460.
11 Risk Management
The Company's activities expose it to a variety of financial
risks: market risk (including foreign currency risk and interest
rate risk), credit risk and liquidity risk. The financial risks
relate to the following financial instruments: financial assets at
fair value through profit or loss, loans and receivables, cash and
cash equivalents, secured loan and trade and other payables. There
has been no material change in the market, credit or liquidity risk
profile since the year ended 31 December 2017.
There have been no changes in risk management policies or
responsibilities since the year end. The risk management is carried
out by the Executive Directors.
These interim financial statements do not include all financial
risk management information and disclosures required for full
annual financial statements and should be read in conjunction with
the financial statements of the Company as at and for the year
ended 31 December 2017.
12 Contingent Liabilities and Commitments
The Company has no contingent liability. In relation with its
financial asset at fair value through profit or loss, PME
Properties Limited has entered into a number of operating lease
agreements in respect of property. The lease terms are between one
and ten years and the majority of the lease agreements are
renewable at the end of the lease period at market rates.
The Group's future aggregate minimum lease payments, by virtue
of its indirect investment in PME Properties Limited, under
operating leases are as follows:
30 June 2018 31 December 2017
US$'000 US$'000
----------------------------------------- ------------- -----------------
Amounts payable under operating leases:
Within one year 85 19
In the second to fifth years inclusive 277 277
Beyond five years 1,100 1,160
----------------------------------------- ------------- -----------------
1,462 1,456
----------------------------------------- ------------- -----------------
13 Related Party Transactions
Parties are considered to be related if one party has the
ability to control the other party or to exercise significant
influence over the other party in making financial or operational
decisions. Key management is made up of the Board of Directors.
The Directors of the Company are considered to be related
parties by virtue of their influence over making operational
decisions. Directors' remuneration is disclosed in note 9.
14 Income Tax Expense
The Company is resident for taxation purposes in the Isle of Man
and is subject to income tax at a rate of zero per cent (2017: zero
per cent).
15 Post Balance Sheet Events
In September 2018, the Company received net cash of US$188,442
from PME Locomotives (Mauritius) Limited by way of a dividend. This
was funded by an intercompany loan repayment from PME Properties
Limited and surplus cash from PME Locomotives (Mauritius)
Limited.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR SFSFMWFASEFU
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