TIDMARL
RNS Number : 2772L
Atlantis Resources Limited
30 September 2016
30 September 2016
ATLANTIS RESOURCES LIMITED
("Atlantis", the "Company" or the "Group")
Interim Results
Atlantis Resources Limited, a vertically integrated turbine
supplier and project owner in the tidal power industry, is pleased
to announce its unaudited Interim Results for the six months to 30
June 2016.
Highlights
Financial highlights
-- Atlantis Resources Limited, in line with the requirements of
International Accounting Standards 21, has amended its functional
and presentation currency to GBP and today presents its first
financial report in GBP.
-- The consolidated group cash position at 30 June 2016 was
GBP13.2 million (31 December 2015; GBP12.3 million), including
GBP7.7 million held at MeyGen (31 December 2015; GBP7.9
million).
-- Group total equity increased to GBP103.1 million over the
six-month period (31 December 2015; GBP91.7 million).
-- In April 2016 Atlantis raised GBP6.5 million before expenses
from new and existing shareholders to fund project development
activities across the Atlantis portfolio and to secure
opportunities for portfolio growth.
MeyGen Project
-- Significant progress made on the project in the reporting
period, which has continued post period end.
-- All grid connection works completed and energisation to the
local distribution network took place in June. Post period end, all
electrical equipment has been installed and commissioning completed
in the onshore converter building.
-- Signed an Active Network Management agreement with a local
9.2MW wind farm in July to allow for better utilisation of the
network, allowing capacity to be released for the wind farm onto
the network during slack tides.
-- Fabrication of the Turbine Support Structures ("TSS") was
completed at Nigg Energy Park and fabrication of the TSS ballast
blocks was completed at JGC.
-- All detailed design works were completed for offshore
installation tools and seafastenings and on the completion of the
DEME transaction, Geosea was appointed to install all the turbine
support structures, ballast blocks and one turbine.
-- During the reporting period the first AHH turbine nacelle was
delivered to Scotland and assembly works commenced with completion
post period end. Also subsequent to 30 June we received the second
AHH turbine nacelle and components at Nigg for assembly. The
Atlantis turbine underwent assembly and completed drive train
testing at OREC during the period and has since been transported to
Nigg for preparation for deployment.
-- In mid-September the Geosea jack up barge, the Neptune,
arrived at Nigg and commenced preparations for equipment
mobilisation.
-- In September 2016 we welcomed Nicola Sturgeon, First Minister
of Scotland, to officially unveil the MeyGen Project, the world's
largest tidal stream power project, at a ceremony held at the Nigg
Energy Park in Scotland
-- The company looks forward to updating the market periodically
throughout Q4 2016 on construction progress
Corporate
-- In April 2016 the Group announced a partnership agreement
with Equitix, a market leading developer, investor and fund manager
of infrastructure assets. Under this agreement, Atlantis and
Equitix will work together to advance Atlantis's portfolio of tidal
power projects in Scotland, which represent a combined potential
capacity of almost 650MW. Equitix intends to acquire at least 25%
of each Atlantis project vehicle at financial close of that
project.
-- In April 2016 Atlantis announced an agreement in principle to
sell a minority stake in TPSL to DEME Concessions NV, a member of
the DEME Group, ("DEME"). Under this agreement, DEME agreed to pay
Atlantis GBP2 million in cash consideration for a 2% stake in TPSL
and a right to contribute equity funding to the Sound of Islay
project. The deal was completed in August 2016.
-- In April 2016 Atlantis announced that it had entered into a
memorandum of understanding with SBS, a privately owned
international marine, subsea and renewable energy developer to
establish a joint venture to develop a 150MW tidal stream site in
Indonesia.
-- In May 2016 Atlantis completed the acquisition of Scottish
tidal project assets from ScottishPower Renewables (UK) Limited
("SPR") in exchange for a stake in the Company's wider development
portfolio, TPSL, which is the holder of the Company's Scottish
development portfolio, including an 83% shareholding in the 398MW
MeyGen project. As a result of the transaction, TPSL has acquired
development rights for an additional 110MW of projects in Scotland,
including the seabed rights, grid access and consents for the 10MW
Sound of Islay project.
Tim Cornelius, Chief Executive of Atlantis, commented:
"The first half of 2016 has been full of positive developments
for Atlantis and it is extremely exciting to see the first phase of
the world's flagship project, MeyGen, progressing towards first
power in the second half of the year. Our team's efforts were
recognised and rewarded when we welcomed the First Minister of
Scotland and the Minister for Business, Innovation and Energy to
Nigg Energy Park for the official unveiling of MeyGen in
September.
"In addition, the first half of 2016 has seen us close ground
breaking deals for Atlantis, strengthening our offerings across all
of our key areas of business including project development, project
financing, project delivery and operation. We welcome leading
utility ScottishPower Renewables, leading infrastructure fund
Equitix and world renowned offshore contractor DEME as key partners
to Atlantis and we look forward to working with them to build out
our extensive tidal power project portfolio across the United
Kingdom."
Enquiries:
Atlantis Resources +44 (0)20 3727 1898
Tim Cornelius, Chief Executive Officer
Simon Counsell, Chief Financial Officer
Peel Hunt LLP (Nominated Adviser
and Broker) +44 (0)20 7418 8900
Adrian Trimmings
Jock Maxwell Macdonald
Euan Brown
FTI Consulting +44 (0)20 3727 1898
Ben Brewerton
Alex Beagley
James Styles
CHAIRMAN'S STATEMENT
February 2016 marked the second anniversary of Atlantis's
transition to a public company, and we have continued in the
pioneering spirit which saw us become the first listed tidal power
company back in 2014.
Our flagship MeyGen project is progressing well towards
commissioning later this year, with construction completed at the
onshore building and the fit out and installation of the electrical
equipment now in its final stages. We reached an important
milestone in June with the energisation of our connection to the
grid network in readiness for the export of tidally generated
electricity. This followed over 25km of distribution network
upgrades and one of the longest 33kV underground cable runs in the
country, ensuring that visual impact was minimised. We were also
delighted to announce that we had reached an agreement to allow a
neighbouring onshore wind farm to access spare grid capacity when
the full connection is not required by our project. We believe this
is the first arrangement of its kind, and is testament to the
uniquely predictable nature of the tidal resource, allowing other
generators to know exactly when grid capacity will be available.
This further demonstrates the advantages of tidal power and the
important role it will play in Britain's future energy mix
The first of the turbines from Andritz Hydro Hammerfest was
delivered to the Nigg Energy Park for final assembly in early July,
just after this reporting period. The Atlantis turbine has now
completed its rigorous onshore testing programme at the Offshore
Renewable Energy Catapult's tidal turbine test facility in Blyth,
Northumberland, and as I write this it is on its way up to Nigg for
the fitting of the rotor and final pre-installation checks. The
four giant steel foundation structures are also at the Nigg Energy
Park, from where they will be loaded onto the installation vessel
for deployment. They will be weighted down in position on the
seabed by steel ballast blocks, to be delivered to the project site
from nearby Scrabster Harbour.
Our wider portfolio of Scottish projects was strengthened in May
with the completion of the acquisition of the Islay project and
addition of ScottishPower Renewables (UK) Limited as a shareholder
in our development vehicle, Tidal Power Scotland Limited (TPSL).
This followed the news in April that DEME Concessions NV had agreed
to invest in TPSL, paying GBP2 million for 2% of the company and a
route to investment in the Islay project and later phases of
MeyGen. Shortly prior to this, we had announced a new partnership
agreement with Equitix, the multi-billion pound infrastructure
investor, through which Equitix (via its managed funds) intends to
acquire at least 25% of each Atlantis project vehicle at financial
close of the relevant project. Together, these new relationships
put us in our strongest position yet to ensure successful
development of our portfolio and the tidal industry.
As we look forward to the installation of the MeyGen turbines
over the coming months and the production of first power from our
ground-breaking project, I share the team's excitement for the
future and am full of admiration for all that has been achieved,
and gratitude to all those who have contributed in so many ways to
bring us to this watershed moment in the company's history. I look
forward to working with our many stakeholders to take on the
challenges and opportunities to establish tidal power as a
long-term source of clean, renewable, and unobtrusive energy around
the world.
SUMMARY OF RESULTS
The group's consolidated total assets increased significantly to
GBP103.1 million at 30 June 2016 from GBP91.7 million at 31
December 2015, with the acquisition of the development rights for
two tidal projects from ScottishPower Renewables valued by the
Company at GBP6.6 million and capital expenditure on MeyGen Phase
1A.
Revenue for the six months to 30 June 2016 arising from third
party consulting revenues was GBP0.2 million. Together with the
capital raise from the market, grants and borrowings, total cash
from financing activities for the period is GBP14.2 million. The
unaudited consolidated cash position of the Atlantis group as at 30
June 2016 was GBP13.2 million.
John Mitchell Neill
Chairman
29 September 2016
Condensed consolidated statement of profit and loss and other comprehensive
income
For the six months ended 30 June 2016
Group
Six months ended
30 June 30 June
Note 2016 2015
GBP'000 GBP'000
Revenue 235 462
Other gains and losses 7 645 678
Subcontractors costs (346) (246)
Depreciation and amortisation
expenses (824) (790)
Research and development
costs (144) (331)
Employee benefits expenses (2,456) (1,907)
Other operating expenses (973) (893)
--------- ---------
Total expenses (4,743) (4,167)
Loss from operating activities (3,863) (3,027)
Finance costs 8 (525) (624)
Share of results of equity-accounted
investee (50) -
Loss before tax (4,438) (3,651)
Income tax expense - (13)
Loss for the period (4,438) (3,664)
Other comprehensive income:
Items that may be reclassified
subsequently to profit
or loss
Exchange differences
on translation of foreign
operations (408) 910
--------- ---------
Total comprehensive income
for the period (4,846) (2,754)
========= =========
Loss attributable to:
Owners of the Group (4,438) (3,706)
Non-controlling interest - 42
--------- ---------
(4,438) (3,664)
Total comprehensive income
attributable to:
Owners of the Group (4,846) (2,914)
Non-controlling interest - 160
--------- ---------
(4,846) (2,754)
========= =========
Loss per share (basic
and diluted) (pence) 15 (4.75) (4.11)
========= =========
Condensed consolidated statement of financial position
As at 30 June 2016
Group
30 June 31 December
Note 2016 2015
GBP'000 GBP'000
ASSETS
Property, plant and equipment 9 48,610 41,115
Intangible assets 10 36,322 30,960
Investment in joint venture 157 211
Loan to joint venture 1,147 910
Non-current assets 86,236 73,196
-------- -----------
Trade and other receivables 3,654 6,206
Cash and cash equivalents 11 13,228 12,268
Current assets 16,882 18,474
-------- -----------
Total assets 103,118 91,670
======== ===========
LIABILITIES
Trade and other payables 12 5,761 8,477
Provisions 1,955 2,036
Loans and borrowings 13 2,471 2,128
Current liabilities 10,187 12,641
-------- -----------
Loans and borrowings 13 23,268 17,451
Deferred tax liabilities 3,830 3,830
-------- -----------
Non-current liabilities 27,098 21,281
-------- -----------
Total liabilities 37,285 33,922
-------- -----------
Net assets 65,833 57,748
======== ===========
EQUITY
Share capital 91,129 84,918
Capital reserve 10,143 5,709
Translation reserve 6,907 7,315
Option fee 6 6
Share option reserve 14 3,218 3,078
Accumulated losses (52,388) (47,950)
Total equity attributable
to owners of the Company 59,015 53,076
Non-controlling interests 6,818 4,672
-------- -----------
Total equity 65,833 57,748
======== ===========
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2016
Attributable to owners of the Company
---------------------------------------------------------------
Share Non-
Share Capital Translation Option option Accumulated controlling
capital reserve reserve fee reserve losses Total interest Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Group
At 1 January
2015 78,483 5,486 7,232 6 2,206 (50,052) 43,361 4,135 47,496
------------------- -------- -------- ----------- ------- -------- ----------- ------- ------------ -------
Total comprehensive
income for the
period
Loss for the
period - - - - - (3,706) (3,706) 42 (3,664)
Other comprehensive
income - - 792 - - - 792 118 910
------------------- -------- -------- ----------- ------- -------- ----------- ------- ------------ -------
Total comprehensive
income for the
period - - 792 - - (3,706) (2,914) 160 (2,754)
Transactions
with owners,
recognised directly
in equity
Contributions
by and
distributions
to owners
------------------- -------- -------- ----------- ------- -------- ----------- ------- ------------ -------
Recognition of
share-based
payments - - - - 196 - 196 - 196
Changes in
ownership
interest in
subsidiary
Dilution of
interest
in a subsidiary
without change
in control - 624 - - - - 624 290 914
Total transactions
with owners - 624 - - 196 - 820 290 1,110
-------- -------- ----------- ------- -------- ----------- ------- ------------ -------
At 30 June 2015 78,483 6,110 8,024 6 2,402 (53,758) 41,267 4,585 45,852
======== ======== =========== ======= ======== =========== ======= ============ =======
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2016
Attributable to owners of the Company
---------------------------------------------------------------
Share Non-
Share Capital Translation Option option Accumulated controlling
capital reserve reserve fee reserve losses Total interest Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Group
At 1 January
2016 84,918 5,709 7,315 6 3,078 (47,950) 53,076 4,672 57,748
--------------------- -------- -------- ----------- ------- -------- ----------- ------- ------------ -------
Total comprehensive
income for the
period
Loss for the
period - - - - - (4,438) (4,438) - (4,438)
Other comprehensive
income - - (408) - - - (408) - (408)
--------------------- -------- -------- ----------- ------- -------- ----------- ------- ------------ -------
Total comprehensive
income for the
period - - (408) - - (4,438) (4,846) - (4,846)
Transactions
with owners,
recognised directly
in equity
Contributions
by and distributions
to owners
--------------------- -------- -------- ----------- ------- -------- ----------- ------- ------------ -------
Issuance of shares 6,211 - - - - - 6,211 - 6,211
Recognition of
share-based payment - - - - 140 - 140 - 140
Changes in ownership
interest in
subsidiary
Dilution of interest
in a subsidiary
without change
in control - 4,434 - - - - 4,434 2,146 6,580
--------------------- -------- -------- ----------- ------- -------- ----------- ------- ------------ -------
Total transactions
with owners 6,211 4,434 - - 140 - 10,785 2,146 12,931
-------- -------- ----------- ------- -------- ----------- ------- ------------ -------
At 30 June 2016 91,129 10,143 6,907 6 3,218 (52,388) 59,015 6,818 65,833
======== ======== =========== ======= ======== =========== ======= ============ =======
Condensed consolidated statement of cash flows
For the six months ended 30 June 2016
Group
Six months ended
30 June 30 June
Note 2016 2015
GBP'000 GBP'000
Cash flows from operating
activities
Loss before tax for the
period (4,438) (3,651)
Adjustments for:
Depreciation of plant and
equipment 35 12
Amortisation of intangible
asset 789 778
Interest income (61) -
Finance costs 8 525 624
Share-based payments 140 196
Provision movement (41) -
Share of results of equity-accounted
investee 50 -
Grant income (191) (397)
Net foreign exchange loss (111) (82)
Operating cash flows before
movements in working capital (3,303) (2,520)
Movement in trade and other
receivables (28) (604)
Movement in trade and other
payables 100 (398)
Net cash used in operating
activities (3,231) (3,522)
-------- --------
Investing activities
Purchase of property, plant
and equipment (9,629) (7,883)
Expenditure on project development (175) (1,027)
Net cash used in investing
activities (9,804) (8,910)
-------- --------
Financing activities
Proceeds from grants received 3,046 4,052
Proceeds from borrowings 4,823 5,500
Deposits released 231 848
Proceeds from issue of shares 6,538 -
Costs related to fundraising (327) -
Non-controlling interest - 914
-------- --------
Net cash from financing
activities 14,311 11,314
-------- --------
Net increase/(decrease)
in cash and cash balances 1,276 (1,118)
Cash and cash equivalents
at beginning of period 10,182 12,268
Effect of foreign exchange
rate changes on the balance
of cash held in foreign
currencies (85) 372
-------- --------
Cash and cash equivalents
at end of period 11 11,373 11,522
======== ========
Notes to the Consolidated Interim Financial Statements
The condensed consolidated statement of financial position of
Atlantis Resources Limited (the "Company") and its subsidiaries
(the "Group") as at 30 June 2016, the condensed consolidated
statement of profit or loss and other comprehensive income, the
condensed consolidated statement of changes in equity and the
condensed consolidated statement of cash flows for the Group for
the six-month period then ended and certain explanatory notes (the
"Consolidated Interim Financial Statements"), were approved by the
Board of Directors for issue on 29 September 2016.
These notes form an integral part of the Consolidated Interim
Financial Statements.
The Consolidated Interim Financial Statements do not comprise
statutory accounts of the Group within the meaning in the
provisions of the Singapore Companies Act, Chapter 50. The Group's
statutory accounts for the year ended 31 December 2015 were
prepared in accordance with the provisions of the Singapore
Companies Act and International Financial Reporting Standards
("IFRS"). The Group's statutory accounts were approved by the Board
of Directors on 26 May 2016 and have been reported by the Group's
auditors.
1. Domicile and activities
Atlantis Resources Limited is incorporated in the Republic of
Singapore with its registered office at 80 Raffles Place, level 36,
Singapore 048624.
The principal activity of the Group is that of pioneering the
development of tidal current power as the most reliable, economic
and secure form of renewable energy. The Company is an inventor,
developer, owner, marketer and licensor of technology, intellectual
property, trademarks, products and services, and an investment
holding company
2. Basis of preparation
1. Statement of compliance
The Consolidated Interim Financial Statements have been prepared
in accordance with International Accounting Standard ("IAS") 34 -
Interim Financial Reporting ("IAS 34").
Selected explanatory notes are included to explain events and
transactions that are significant to an understanding of the
changes in financial position and performance of the Group since
the last annual consolidated financial statements as at and for the
year ended 31 December 2015.
The Consolidated Interim Financial Statements, which do not
include the full disclosures of the type normally included in a
complete set of financial statements, are to be read in conjunction
with the last issued consolidated financial statements of the Group
as at and for the year ended 31 December 2015
2. Changes in functional and presentation currencies
Items included in the financial statements of each of the
Group's entities are measured using the currency of the primary
economic environment in which the entity operates (the "functional
currency").
In prior years, the Company regarded Singapore dollar ("SGD") as
its functional currency. However, as a result of the relocation of
the Group's corporate headquarters from Singapore to Edinburgh, the
management concluded that SGD can no longer be its functional
currency. As such, effective from 1 January 2016, the Company and
two of its subsidiaries Atlantis Projects Pte Ltd and Atlantis
Turbines Pte Ltd have changed their functional currencies from SGD
to Great Britain Pounds ("GBP"). GBP has also been adopted as the
presentational currency of the Group's consolidated interim
financial statements.
The change in functional currency of the Company was applied
prospectively from date of change in accordance with IAS 21 The
Effect of Changes in Foreign Currency Exchange Rate. On the date of
the change of functional currency, all assets, liabilities, issued
capital and other components of equity and profit and loss account
items were translated into GBP at the exchange rate on that
date.
The change in presentation currency of the Group has been
applied retrospectively in accordance with IAS 8 Accounting
Policies, Changes in Accounting Estimates and Errors, and the
comparative figures as at 31 December 2015 and for the period ended
30 June 2015 have also been restated to GBP accordingly.
The changes in functional and presentation currencies have no
significant impact on the financial positions of the Group as at 31
December 2015 and 30 June 2016, or the results and cash flow of the
Group for the periods ended 30 June 2015 and 2016
3. Significant accounting policies
Except for the new and revised IASs effective for the financial
year beginning 1 January 2016 adopted during the six-months period
ended 30 June 2016, the accounting policies and method of
computation used in the Consolidated Interim Financial Statements
are consistent with those applied in the last issued consolidated
financial statements of the Group for the year ended
31 December 2015.
The adoption of the new and revised IASs for the financial year
beginning 1 January 2016 does not have a significant effect on the
Consolidated Interim Financial Statements.
New standards, amendments to standards and interpretations that
are not effective for the six months ended 30 June 2016 have not
been applied in preparing these Consolidated Interim Financial
Statements. Except as otherwise indicated below, those new
standards, amendments to standards and interpretations are not
expected to have a significant effect on the Consolidated Interim
Financial Statements. The Group does not plan to adopt these
standards early.
-- IFRS 15 Revenue from Contracts with Customers
IFRS 15 Revenue from Contracts with Customers will replace IAS
18 Revenue, IAS 11 Construction Contracts and Related
Interpretations. The standard establishes the principle for
companies to recognise revenue to depict the transfer of goods or
services to customers in amounts that reflect the consideration to
which the company expects to be entitled to in exchange for those
goods or services. The new standard will also result in enhanced
disclosures about revenue, provide guidance for transactions that
were not previously addressed (e.g. service revenue and contract
modifications) and improved guidance for multi-element
arrangements. The Group is currently assessing the impact of
adopting this standard in financial year ending 31 December
2018.
-- IFRS 9 Financial Instruments
IFRS 9 Financial Instruments replaces most of the existing
guidance in IAS 39 Financial Instruments: Recognition and
Measurement. It includes revised guidance on classification and
measurement of financial instruments, a new expected credit loss
model for calculating impairment on financial assets, and new
general hedge accounting requirements.
-- IFRS 16 Leases
The new leases standard establishes the principles that entities
would apply to report information to users of the financial
statements about the amount, timing and uncertainty of cash flows
arising from a lease. The new standards will require a lessee to
recognise assets and liabilities arising from a lease on its
balance sheet.
Management is currently evaluating the impact of the
implementation of these standards, in view of the complexities and
the potential wide-ranging implications.
4. Critical accounting judgements and key sources of estimation
uncertainty
The preparation of Consolidated Interim Financial Statements
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results may differ from these estimates.
In preparing this set of Consolidated Interim Financial
Statements, the significant judgements made by management in
applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those that applied to the
consolidated financial statements for the year ended 31 December
2015.
5. Going concern basis
The Group meets its day to day working capital requirements
through shareholders' funding, loans and grants. The directors have
a reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future. The
Group therefore continues to adopt the going concern basis in
preparing the Consolidated Interim Financial Statements.
6. Seasonality of operations
The Group's businesses were not affected significantly by
seasonal or cyclical factors during the financial period.
7. Other gains and losses
30 June 30 June
2016 2015
GBP'000 GBP'000
Grant income 191 397
Other income 282 199
Interest income 61 -
Net foreign exchange gains 111 82
645 678
======= =======
8. Finance costs
30 June 30 June
2016 2015
GBP'000 GBP'000
Interest expense arising
from:
* related party loans - 246
* long term loan - 245
* secured long term loans 525 133
525 624
======= =======
9. Property, plant and equipment
During the period, a further GBP7,325,000 (2015: GBP19,951,000)
of expenditure related to the development of the MeyGen tidal power
project at the Inner Sound of the Pentland Firth off the coast of
Scotland was capitalised and an aggregate of GBP451,000 (2015:
GBP11,060,000) of grants were drawn down. Included in the
capitalised development costs is an amount of GBP812,000 (2015:
GBP696,000) that represents borrowing costs capitalised during the
period. The project is progressing according to plan and management
estimates the recoverable amount of property, plant and equipment
and intangible assets to be higher than the carrying amount such
that no impairment was required.
10. Intangible assets
On-going development costs related to the Group's tidal turbine
development programme, in particular expenditure on the detailed
design of and system integration for the Group's AR1500 turbine
amounted to GBP175,000 (2015: GBP1,200,000) for the period.
On 6 May 2016, Atlantis completed the acquisition of Scottish
tidal project assets from ScottishPower Renewables (UK) Limited
("SPR") in exchange for a stake in the group's wider development
portfolio. Accordingly, as consideration for the acquisition, Tidal
Power Scotland Limited ("TPSL"), the group's Scottish tidal project
portfolio company, issued new ordinary shares to SPR resulting in a
shareholding for SPR of 6% of the enlarged share capital of TPSL.
The value ascribed to the assets was GBP6.6 million. As a result of
the transaction, which was agreed in December 2015, TPSL has
acquired development rights for an additional 110MW of projects in
Scotland, including the seabed rights, grid access and consents for
the 10MW Sound of Islay project.
11. Cash and cash equivalents
30 June 31 December
2016 2015
GBP'000 GBP'000
Cash at bank 11,294 10,122
Fixed deposits 1,856 2,086
Cash on hand 78 60
------- -----------
Cash and cash equivalents in
the statements of financial
position 13,228 12,268
Less: Encumbered deposits (1,855) (2,086)
Cash and cash equivalents in
the statement of cash flows 11,373 10,182
======= ===========
The encumbered deposits served as collateral on behalf of MeyGen
Limited, in support of the provision of bank guarantees and standby
letters of credit as required under the terms of MeyGen's seabed
lease and to secure the MeyGen project's electricity transmission
capacity.
12. Trade and other payables
30 June 31 December
2016 2015
GBP'000 GBP'000
Trade payables 2,273 3,789
Other payables 110 263
Accruals 2,995 4,074
Advanced receipts 383 351
------- -----------
5,761 8,477
======= ===========
13. Loans and borrowings
30 June 31 December
2016 2015
GBP'000 GBP'000
Current loans and borrowings
Secured bridging loan from
non-controlling interest 2,471 2,128
Non-current loans and borrowings
Loans from a related party 3,885 3,805
Long term loan 3,933 3,763
Secured long term loans 15,450 9,883
------- -----------
23,268 17,451
------- -----------
Total loans and borrowings 25,739 19,579
======= ===========
During the period, a total of GBP4,823,000 of loans were drawn
down. There were no changes in the terms and conditions of any of
the loans detailed above, other than as described in note 20, and
no covenants of any loans have been breached.
14. Share option reserve
During the period, 350,000 options to take up unissued shares of
the Company was granted. No shares of the Company have been issued
by virtue of the exercise of an option to take up unissued
shares.
15. Loss per share
The calculation of loss per share is based on the loss after tax
and on the weighted average number of ordinary shares in issue
during each period
Weighted average
Loss after
tax number of shares Loss per share
30 June 30 June 30 June 30 June 30 June 30 June
2016 2015 2016 2015 2016 2015
GBP'000 GBP'000 '000 '000 pence pence
Basic and
diluted 4,438 3,664 93,352 89,204 4.75 4.11
======= ======= ======== ======== ======= =======
At 30 June 2016, share options were excluded from the diluted
weighted average number of ordinary shares calculation as their
effect would have been anti-dilutive.
16. Fair value measurements of financial instruments
Except as detailed in the following table, the directors
consider the carrying amounts of the financial assets and financial
liabilities recognised in the Consolidated Interim Financial
Statements approximate their fair values
30 June 2016 31 December 2015
Carrying Fair Carrying Fair
Note value value value value
GBP'000 GBP'000 GBP'000 GBP'000
Financial liabilities
Secured long
term loans 13 15,450 19,713 9,883 12,976
======== ======= ========= =======
Fair value hierarchy
The table below analyses the fair value of financial instruments
as disclosed, according to their levels in the fair value
hierarchy. It does not include fair value information of
instruments if the carrying amount is a reasonable approximation of
fair value. The different levels have been defined as follows:
quoted prices (unadjusted) in active
* Level 1: markets for identical assets or liabilities;
inputs other than quoted prices included
* Level 2: within level 1 that are observable for
the asset or liability, either directly
(i.e. as prices) or indirectly (i.e.
derived from prices); and
inputs for the asset or liability that
* Level 3: are not based on observable market data
(unobservable inputs).
Level Level Level
1 2 3 Total
Group GBP'000 GBP'000 GBP'000 GBP'000
30 June 2016
Financial liabilities
Secured bridging
loan from non-controlling
interest - - 2,471 2,471
Loans from a related
party - - 3,885 3,885
Long term loan - - 3,933 3,933
Secured long term
loans - - 13,233 13,233
- - 23,522 23,522
========== ========== ========== ==========
31 December 2015
Financial liabilities
Secured bridging
loan from non-controlling
interest - - 2,128 2,128
Loans from a related
party - - 3,805 3,805
Long term loan - - 3,763 3,763
Secured long term
loans - - 12,976 12,976
- - 22,672 22,672
========== ========== ========== ==========
There were no transfers between levels in 2015 and 2016.
Estimating the fair value
The following summarises the significant methods and assumptions
used in estimating the fair values of financial instruments of the
Group.
Financial assets and liabilities
The notional amounts of financial assets and liabilities with a
maturity of less than one year (including trade and other
receivables, cash and cash equivalents, secured bridging loan from
non-controlling interest and trade and other payables) are assumed
to approximate their fair values. All other financial assets and
liabilities are discounted to determine their fair values.
Valuation technique for financial instruments not carried at
fair value but for which fair values are disclosed:
Type Valuation technique
----------------- ---------------------------
Group
Secured long term
loans Discounted cash flow method
17. Related company and related party transactions
Other than those disclosed elsewhere in the Consolidated Interim
Financial Statements, there were the following significant
transactions with related parties during the period:
30 June 30 June
2016 2015
GBP'000 GBP'000
Interest income from a joint venture 61 -
Interest expense arising from related party
loans - 240
======= =======
Compensation of directors and key management personnel:
The remuneration of directors and other members of key
management during the period are as follows:
30 June 30 June
2016 2015
GBP'000 GBP'000
Short term employee benefits 250 344
Defined contribution benefits 30 11
Share-based payments 88 196
======= =======
18. Segment information
(a) Operating segments
As at 30 June 2016, the Group is principally engaged in
development of the MeyGen tidal current power project and the
supply of a tidal power turbine to it. The assets, liabilities and
capital expenditure of the Group are mainly employed in activities
supporting the development of the tidal current power project,
MeyGen, being the main reportable segment within the Group.
Currently, the Group is principally engaged in the development
of the tidal current power projects and the supply of tidal power
turbines to these projects, which are its reportable segments in
2016. These divisions are managed separately because they require
different expertise and marketing strategies.
The Board of Directors, who are the chief operating decision
makers, review internal management reports of each division
regularly, in relation to the capital expenditure, resources
allocation and funding availability of the projects.
The other operation is the provision of corporate services which
does not meet any of the quantitative thresholds for determining
reportable segments in 2016 and 2015.
There are varying levels of integration between the power
generation and turbine and engineering services divisions,
including the delivery of a turbine from the turbine and
engineering services to the power generation division.
Information regarding the results of each reportable segment is
included below
Six months ended 30 Turbine
June 2016 and engineering
Power generation services Total
GBP'000 GBP'000 GBP'000
External revenues - 235 235
================ ================ =======
Inter-segment revenue - 2,141 2,141
Interest revenue - 14 14
Interest expense - (412) (412)
Depreciation and amortisation - (367) (367)
Reportable segment
loss before tax (88) (4,832) (4,920)
================ ================ =======
There was no comparable segment reporting for the six months
ending 30 June 2015, as there were no reportable segments during
this period.
At 30 June 2016 Turbine
and engineering
Power generation services Total
GBP'000 GBP'000 GBP'000
Reportable segment assets 65,517 26,904 92,421
Capital expenditure 8,133 179 8,312
Reportable segment liabilities 24,582 28,712 54,294
================ ================ =======
At 31 December 2015
Reportable segment assets 53,312 18,781 72,093
Capital expenditure 19,951 1,205 21,156
Reportable segment liabilities 25,041 22,556 47,597
====== ====== ======
(b) Reconciliation of reportable segment profit or loss
Six months ended 30 June 2016 GBP'000
Reportable segment loss before tax (4,920)
Unallocated amounts 532
Share of loss of equity-accounted investee (50)
-------
Consolidated loss before tax (4,438)
=======
19. Capital commitments
As at 30 June 2016, the Group had entered into contracts to
construct a tidal power plant for GBP51.4 million (2015: GBP41.5
million), of which GBP36.1 million (2015: GBP27.9 million) had been
incurred as at the reporting date. At 30 June 2016, the Group had
other outstanding commitments under contracts for design and
subcontract works for GBP1.9 million (2015: GBP2.7 million),
pre-final investment decision costs of GBP0.3 million (2015: Nil)
for the new site.
20. Events after the reporting period
a) In August 2016, DEME Concessions NV, a member of the DEME
Group, ("DEME") completed its purchase of shares in Tidal Power
Scotland Limited ("TPSL"). Under the terms of the agreement
announced in April, DEME has paid GBP2 million in cash
consideration to a wholly owned subsidiary of Atlantis for a 2%
stake in TPSL. DEME will receive certain rights in respect of
further equity funding at financial close of the Sound of Islay
project and Phase 1C of the MeyGen project.
In addition, the DEME Group is now taking an active role in the
MeyGen Phase 1A installation through DEME's subsidiary, Geosea NV
("GeoSea"), a specialist in complex offshore marine engineering
projects. Geosea, will install with the jack-up vessel MV "Neptune"
all heavy turbine foundation structures and some of the turbines
for MeyGen Phase 1A.
b) On 17 August 2016, one of the subsidiaries, Atlantis
Resources (Scotland) Limited entered into an agreement to extend
the repayment terms of a bridging loan to 17 December 2016 at
interest rate of 15% per annum. All other terms remain the
same.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SDMSISFMSESU
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