TIDMDOO
RNS Number : 2097P
D1 Oils Plc
29 September 2011
D1 Oils plc
Interim results
The unaudited interim results for the six months ended 30 June
2011 are hereby released to the market.
Overview
D1 Oils plc (D1) is an alternative energy crop company, which
develops Jatropha curcas, a tropical oilseed bearing tree, into a
sustainable energy crop that has potential as a source of
biodiesel. Jatropha is a hardy crop that is able to grow on a wide
range of soils, including soils which are sub-optimal for arable
agriculture. Its grain is crushed to produce inedible oil that can
be used directly or as a feedstock for biodiesel and a meal that
has the potential to be processed into a high-value, protein source
for animal feed.
As part of a Board development and reorganisation process
commencing on 24 June 2011, Nicholas Myerson and I were appointed
to the Board and took up the roles of Executive Director. On 1 July
2011, Martin Jarvis moved from his previous position of CEO to take
up the role of Chief Operating Officer and subsequently on 14 July
2011 Barclay Forrest stepped down from the Board as Non-Executive
Chairman and I assumed the position of Executive Chairman from that
date. On behalf of the Board I would reiterate my thanks to Barclay
for his contribution to the Company over recent years. Also on 14
July 2011 we were pleased to welcome Graham Woolfman, who joined
the Board as a Non-Executive Director.
The Board is pleased to report that the Group continues to
experience continuing upward price pressure for Crude Jatropha Oil
(CJO), with prices currently exceeding $1,000 per tonne, ex works.
The significant majority of the Jatropha grain collected by the
Group is from regions in India adjacent to the Bay of Bengal, where
D1's profile has enabled it to secure supplies of grain and CJO
from third party suppliers, in addition to its relationship
farmers.
As announced in July, the new Board has been undertaking a
review of the Company`s operations and the immediate and longer
term challenges and opportunities which the Company faces within
its markets and product development plans.
Following this review, the Board has determined to focus the
Group's operations in India, where there is strong demand for
bio-fuel, and to commit an increasing proportion of its working
capital to the country. This will enable the Group to consolidate
grain storage and processing. In addition, the Group will look to
obtain commodity trade finance for the 2012/2013 harvest season,
which will be facilitated by centralised storage and
processing.
To enable it to focus its resources on India, the Group will
look to minimise the Group's expenditure in the UK, Zambia, Malawi
and Indonesia. The Board also intends to suspend, until further
notice, the Group's animal feed development programme, together
with the related cattle trials.
The Board expects that these actions will enable it to further
reduce the Group's overheads from a run rate of approximately
GBP3.0 million per annum currently to approximately GBP2.2 million
for the year ending 31 December 2012. The Board estimates that
these savings will involve a one off exceptional cost of
approximately GBP410,000.
India has in recent months experienced good rainfall, as a
result of which the Directors anticipate improved yields from its
maturing Jatropha crops this harvest season.
In light of the review, the Board is now targeting production of
2,000 tonnes of CJO, at a cost of approximately $690 per tonne,
over the next Indian harvest season to May 2012. It is targeting to
sell this production at an average price (ex works) of $1,000 per
tonne. The Board anticipates, based on the assumptions underlying
its business plan, that the Group's operations in India will
achieve breakeven in 2013, although the Group itself is not
expected to break even before 2014.
Finance
Group revenue from continuing operations was GBP0.2m (June 2010:
GBP0.1m). The net loss from continuing operations was GBP1.9m (June
2010: GBP2.6m). The reduced loss compared to June 2010 reflects the
progress made in reducing administrative expenses from GBP2.5m to
GBP1.6m for the period.
The overall loss for the period was GBP1.9m (June 2010:
GBP2.6m). The basic and diluted loss per share was 1.47p (June
2010: 2.05p).
Cost of sales rose significantly in the period due to greater
expelling activity overseas in relation to grain collection.
During the period, the Group provided additional funding to its
joint venture partner, D1 Williamson-Magor. The Group's policy is
to not recognise any asset for the joint venture until cash flow is
generated through the sale of CJO. In view of this, the additional
funding of GBP100,100 was charged direct to the Income Statement as
an impairment of the asset.
Finance income within the Income Statement includes the movement
in foreign exchange on both retranslation of foreign currencies
held overseas (in USD) and in loans extended by the Group to
overseas subsidiaries to fund past overseas operations.
Trade and other receivables reduced significantly during the
period since 31 December 2010 as that total of GBP899,700 included
GBP250,000 of R&D tax credits and GBP380,000 of VAT recovered
on the sale of the Bromborough site both of which were received in
January 2011.
The Group's cash and cash equivalents and term deposits at 30
June 2011 amounted to GBP2.4m (June 2010: GBP5.5m). At 31 December
2010 the total was GBP3.5m.
Outlook
The new Board is enthusiastic and optimistic about the outlook
for the Company. This spirit is based upon the new skill sets which
have been added to an experienced team in the field, primarily in
India. Whilst Jatropha has been a disappointment to the investment
community over the past few years, D1 has positioned itself in the
middle of two exciting opportunities; investment exposure in a BRIC
country and in bio-fuels. The bulk of our revenue and profit for
the foreseeable future will be derived from India and we will
endeavour to maximise that unique opportunity within the
agricultural and energy sectors. Whilst North American and European
investment opportunities in these sectors remain limited and
mature, India (in our view) will be the primary driver of growth
and D1 shareholders will be involved in this market. Along with
this position is the knowledge that the Jatropha paradigm is
beginning to realise its potential albeit more slowly than
initially thought. Plantings made in the middle of the 2000s are
finally reaching maturity and we expect a trajectory of solid
growth in revenues in the coming years. The combination of all of
these factors will lead the company to allocate less of its capital
to overhead and more to working capital, including off balance
sheet financing in the form of commodity trade finance. We envisage
that D1 will evolve into a more robust company focused on revenue
generation and therefore value to shareholders in the medium to
long term.
Steven Rudofsky
Executive Chairman
28 September 2011
Consolidated interim income statement
Unaudited results for the six months ended 30 June 2011
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2011 2010 2010
Restated
Unaudited Unaudited Audited
Note GBP000 GBP000 GBP000
----------------------------------- ---- ---------- ---------- -----------
Group revenue 2 202.4 100.4 168.2
Cost of sales (193.4) (5.6) (85.4)
----------------------------------- ---- ---------- ---------- -----------
Gross profit 9.0 94.8 82.8
Administrative expenses (1,626.1) (2,474.6) (3,646.1)
----------------------------------- ---- ---------- ---------- -----------
Trading loss (1,617.1) (2,379.8) (3,563.3)
Share of post-tax profits/(losses)
of joint ventures accounted for
using the equity method 2.3 (209.6) (306.1)
Impairment of investments (100.1) - -
Group operating loss from
continuing operations (1,714.9) (2,589.4) (3,869.4)
Finance income 3.0 132.8 373.5
Finance costs (87.7) (126.9) (57.8)
----------------------------------- ---- ---------- ---------- -----------
Loss for the period from continuing
operations before taxation (1,799.6) (2,583.5) (3,553.7)
Tax credit / (expense) (0.1) (4.8) 235.9
----------------------------------- ---- ---------- ---------- -----------
Loss for the period from continuing
operations (1,799.7) (2,588.3) (3,317.8)
----------------------------------- ---- ---------- ---------- -----------
Discontinued operations
Profit / (loss) for the period from
discontinued operations 22.5 (508.5) (2,770.6)
----------------------------------- ---- ---------- ---------- -----------
Total loss for the period (1,777.2) (3,096.8) (6,088.4)
----------------------------------- ---- ---------- ---------- -----------
Loss for the period attributable to
equity holders of the parent (1,777.2) (3,096.8) (6,088.4)
Loss per ordinary share
Basic and diluted loss per ordinary
share (pence) 3 (1.41) (2.45) (4.81)
Basic and diluted loss per ordinary
share from continuing operations
(pence) 3 (1.42) (2.05) (2.62)
----------------------------------- ---- ---------- ---------- -----------
Consolidated interim statement of comprehensive income
Unaudited results for the six months ended 30 June 2011
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2011 2010 2010
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
---------------------------------------- ---------- ---------- -----------
Loss for the period (1,777.2) (3,096.8) (6,088.4)
Exchange difference on retranslation
of foreign operations 89.1 71.6 (302.2)
Transfer of foreign exchange reserves
to income statement (32.0) - (12.5)
---------------------------------------- ---------- ---------- -----------
Total recognised income and expense for
the period (1,720.1) (3,025.2) (6,403.1)
---------------------------------------- ---------- ---------- -----------
Attributable to:
Equity holders of the parent (1,720.1) (3,025.2) (6,403.1)
---------------------------------------- ---------- ---------- -----------
Consolidated interim statement of changes in equity
Unaudited results for the six months ended 30 June 2011
Own Share Currency
Share Share shares Merger Revenue option translation
capital premium held reserve reserve reserve reserve Total
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------ --------- --------- --------- --------- ---------- --------- ----------- ---------
At 1 January
2010 1,266.8 99,290.3 (484.0) 437.7 (91,919.6) 1,025.0 (33.1) 9,583.1
Total
recognised
income and
expense - - - - (3,025.2) - (71.6) (3,096.8)
Share-based
payments - - - - 78.0 - - 78.0
------------ --------- --------- --------- --------- ---------- --------- ----------- ---------
At 1 July
2010 1,266.8 99,290.3 (484.0) 437.7 (94,866.8) 1,025.0 (104.7) 6,564.3
Total
recognised
income and
expense - - - - (3,063.2) - (243.1) (3,306.3)
Share-based
payments - - - - (37.0) - - (37.0)
------------ --------- --------- --------- --------- ---------- --------- ----------- ---------
At 1 January
2011 1,266.8 99,290.3 (484.0) 437.7 (97,967.0) 1,025.0 (347.8) 3,221.0
Total
recognised
income and
expense - - - - (1,777.2) - 57.1 (1,720.1)
Share-based
payments - - - - 28.0 - - 28.0
At 30 June
2011 1,266.8 99,290.3 (484.0) 437.7 (99,716.2) 1,025.0 (290.7) 1,528.9
------------ --------- --------- --------- --------- ---------- --------- ----------- ---------
Consolidated interim balance sheet
Unaudited results at 30 June 2011
At At At
30 June 30 June 31 December
2011 2010 2010
Unaudited Unaudited Audited
Note GBP000 GBP000 GBP000
------------------------------ ---- --------- --------- -----------
Assets
Non-current assets
Property, plant and equipment 84.8 310.3 169.2
Biological assets - 23.2 -
Intangible assets - 0.6 -
84.8 334.1 169.2
Current assets
Inventories 148.5 160.9 211.4
Trade and other receivables 195.9 958.2 899.7
Other financial assets 4 - 4,116.7 90.0
Cash and short-term deposits 2,412.0 1,424.9 3,440.5
2,756.4 6,660.7 4,641.6
Assets held for resale - 2,076.0 -
------------------------------ ---- --------- --------- -----------
Total assets 2,841.2 9,070.8 4,810.8
------------------------------ ---- --------- --------- -----------
Equity and liabilities
Current liabilities
Trade and other payables (63.0) (267.3) (336.7)
Accruals and deferred income (467.8) (739.7) (498.5)
Payments due to vendors (47.2) (53.9) (4.1)
Other financial liabilities - (92.8) -
Provisions (274.0) (895.5) (274.0)
------------------------------ ---- --------- --------- -----------
(852.0) (2,049.2) (1,113.3)
Non-current liabilities
Payments due to vendors (460.3) (457.3) (476.5)
(460.3) (457.3) (476.5)
------------------------------ ---- --------- --------- -----------
Total liabilities (1,312.3) (2,506.5) (1,589.8)
------------------------------ ---- --------- --------- -----------
Net assets 1,528.9 6,564.3 3,221.0
------------------------------ ---- --------- --------- -----------
At At At
30 June 30 June 31 December
2011 2010 2010
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
----------------------------- ---------- ---------- -----------
Capital and reserves
Equity share capital 1,266.8 1,266.8 1,266.8
Share premium 99,290.3 99,290.3 99,290.3
Own shares held (484.0) (484.0) (484.0)
Other reserves 437.7 437.7 437.7
Revenue reserves (99,716.2) (94,866.8) (97,967.0)
Share option reserve 1,025.0 1,025.0 1,025.0
Currency translation reserve (290.7) (104.7) (347.8)
Equity shareholders' funds 1,528.9 6,564.3 3,221.0
----------------------------- ---------- ---------- -----------
Consolidated interim statement of cash flows
Unaudited results for the six months ended 30 June 2011
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2011 2010 2010
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
----------------------------------------- ---------- ---------- -----------
Operating activities
Loss for the period (1,777.2) (3,096.8) (6,088.4)
Adjustments to reconcile loss for the
period to net cash flow from operating
activities:
Depreciation of property, plant and
equipment, and amortisation of
intangible assets 29.9 92.2 135.6
Impairment of fixed assets - 56.3 48.2
Impairment of investments 100.1 - -
Share-based payments 28.0 78.0 41.0
Net loss on disposal of agronomy and
breeding activities - - 865.8
Profit on disposal of fixed assets 24.3 7.1 61.6
Share of post-tax losses of joint
ventures accounted for using the equity
method (2.3) 209.6 306.1
Finance income (3.0) (128.6) (386.1)
Finance expense 87.7 128.0 59.4
Income tax expense - (6.8) (235.9)
Tax paid (0.1) 6.8 4.2
Decrease / (increase) in inventories 62.9 (60.0) (110.5)
Decrease / (increase) in trade and other
receivables 703.9 274.9 889.5
Increase / (decrease) in trade and other
payables (304.6) (168.4) (319.6)
Increase / (decrease) in provisions - (901.0) (1,461.9)
----------------------------------------- ---------- ---------- -----------
Net cash flow from operating activities (1,050.4) (3,508.7) (6,191.0)
----------------------------------------- ---------- ---------- -----------
Investing activities
Interest received 3.0 28.8 48.1
Payments to acquire property, plant and
equipment, and intangible assets (0.4) (36.4) (66.9)
Funds transferred to deposits 90.0 514.0 4,409.5
Purchase of joint venture investments (100.0) (11.4) (100.0)
Net cash out flow on disposal of agronomy
and breeding activities - - (800.0)
Proceeds from disposal of assets 30.6 - -
Proceeds from disposal of assets held
for sale - - 1,696.1
Net cash flow from investing activities 23.2 495.0 5,186.8
----------------------------------------- ---------- ---------- -----------
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2011 2010 2011
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
----------------------------------------- ---------- ---------- -----------
Financing activities
Interest paid - - -
Exercise of share options - - -
Settlement of leases and mortgages - - -
Repayment of mortgage - - -
Repayment of capital elements of finance
leases - - -
----------------------------------------- ---------- ---------- -----------
Net cash flow from financing activities - - -
----------------------------------------- ---------- ---------- -----------
Net decrease in cash and cash equivalents (1,027.2) (3,013.7) (1,004.2)
Cash and cash equivalents at the start
of the period 3,440.6 4,425.5 4,425.5
Effects of exchange rates on cash at the
start of the period (1.4) 13.1 19.2
----------------------------------------- ---------- ---------- -----------
Cash and cash equivalents at the end of
the period 2,412.0 1,424.9 3,440.5
----------------------------------------- ---------- ---------- -----------
Notes to the interim financial statements
1. Basis of preparation
This interim report, which does not constitute statutory
accounts within the meaning of Section 435 of the Companies Act
2006, was approved by the Board on 28 September 2011. The condensed
set of financial statements of this interim report has been
prepared in accordance with accounting policies which were adopted
in presenting the full year annual report and accounts for the year
ending 31 December 2010.
The full year annual report and accounts will be prepared in
accordance with International Financial Reporting Standards (IFRSs)
as adopted by the European Union. The Group has not applied
International Accounting Standard (IAS) 34 Interim Financial
Reporting in the preparation of these condensed interim financial
statements, as it is not mandatory for AIM-listed companies.
The financial information for the full preceding year does not
constitute statutory accounts as defined in Section 435 of the
Companies Act 2006 and has been extracted from the statutory
accounts for the financial year ended 31 December 2010 which have
been delivered to the Registrar of Companies. Those accounts, which
included an auditors' report which contained a 'disclaimer on
opinion' qualification, did not contain a statement under Section
498(2) nor Section 498(3).
Fundamental accounting concept
The financial statements have been prepared on a going concern
basis which assumes that the Company and the Group will continue in
operating existence for the foreseeable future and meet its
liabilities as they fall due. There are uncertainties that the
Directors have had to consider in deciding to prepare the financial
statements on the going concern basis which are set out below.
Business planning uncertainty
The Report of the Chairman on pages 1 and 2 sets out the
strategy of the business and what it is seeking to achieve and the
milestones it aims to reach. Whilst the Directors believe these
milestones are realistic, there are inevitably uncertainties as to
whether they will be achieved in full and in time. In addition,
following the appointment of Steven Rudofsky and Nicholas Myerson
on 24 June 2011, the Board has commenced a business plan review
process to be concluded imminently. The review may or may not
result in changes to the existing business plan. While the Board is
confident it can deliver a Jatropha based strategy that is viable
over the long term, until the business plan becomes more certain
the Board cannot assess with certainty the implications for the
Company of implementing a revised business plan and strategy.
Funding uncertainty
The Company's Board informed the market over eighteen months ago
that the Company would require a further injection of funds during
2011 and, as such, had been working on a new fund raising exercise.
The Board composition changed significantly with the appointment to
the Board on 24 June 2011 of Steven Rudofsky and Nicholas Myerson,
and the Board currently believes it will secure sufficient
shareholder support to pass a resolution to enable sufficient funds
to be raised once a successful business plan review has been
completed. The Board currently intends to seek sufficient funds to
cover the business's activities until key harvest milestones are
reached in mid-2012. The Board believes that the case can then be
made in time for further funding for capital and working capital
investment ahead of the business becoming cash stable. The Board is
encouraged by the feedback it has received to date on the
willingness of existing shareholders to participate in a fund
raising. However, if the Directors are unable to secure the
appropriate level of shareholder support for the strategy and
associated future fund raising before late 2011 and again as
required by mid-2012, the Company and the Group will be unable to
continue as a going concern.
Directors' view
After making enquiries and considering these uncertainties, the
Directors conclude that the implications of the business plan
review and whether funding can be secured before cash resources are
depleted are material uncertainties which may cast significant
doubt about the Group and Company's ability to continue as a going
concern in its current form. The Directors believe that the impact
of these uncertainties should be manageable and the Directors have
a reasonable expectation that the Group and the Company have
adequate resources to continue in operational existence for the
foreseeable future. Consequently the Directors believe that it is
appropriate to prepare the financial statements on a going concern
basis.
Should the proposed fund raising not be successful, the
strategic milestones not be achieved or the business plan be
changed in a way which restricts the Group's ability to implement
or fund the business plan, then the going concern basis would be
invalid and adjustments may have to be made to reduce the value of
the assets to their recoverable amount, to provide for any further
liabilities which might arise and to reclassify fixed assets and
long term liabilities to current assets and current
liabilities.
Significant accounting policies
The accounting policies adopted in the preparation of the
Group's interim financial statements are consistent with those
followed in the preparation of the annual financial statements for
the year ended 31 December 2010, except for the adoption of new
Standards and Interpretations as of 1 January 2011 listed
below:
-- IFRS 2 - Amendment to IFRS 2 - Group Cash-settled Share-based
Payments. The amendments clarified the classification of
share-based payment awards in parent and subsidiary companies and
addressed plans not considered in the original Standard. The
adoption of this amendment has not had a material impact on the
financial position or performance of the Group.
The amendments to the following standards did not have any
impact on the accounting policies, financial position or
performance of the Group:
-- IAS 27 - Amendment - Consolidated and separate financial
statements - effective 1 July 2009.
-- IAS 39 - Amendment - Eligible hedged items - effective 1
January 2010.
-- IFRIC 9 - Reassessment of embedded derivatives - effective 1
January 2010.
-- IFRIC 16 - Hedges of a net investment in a foreign operation
- 1 January 2010.
-- IFRIC 17 - Distribution of non-cash assets to owners -
effective 1 July 2009.
-- IFRIC 18 - Transfers of assets from customers - effective in
EU no later than 1 January 2010.
-- Various - Annual improvements to IFRS - effective various
dates but most 1 January 2010.
The IASB and IFRIC have issued the following standards and
interpretations with an effective date after the date of these
financial statements:
-- IFRS 1 - Amendment - First time adoption of IFRS - effective
1 July 2010.
-- IAS 24 - Amendment - Related party disclosures - effective 1
January 2010.
-- IAS 32 - Amendment - Financial instruments: presentation -
effective 1 February 2010.
-- IFRIC 14 - Amendment - IAS 19 limit on a defined benefit
asset - effective 1 January 2011.
-- IFRIC 19 - Extinguishing financial liabilities with equity
instruments - effective 1 July 2010.
Except for the amended disclosure requirements of IAS 24, the
Directors do not anticipate that the adoption of these standards
will have a material impact on the Group's financial statements in
the period of initial application.
The IASB and IFRIC have issued the following standards and
interpretations with an effective date after the date of these
financial statements that have not yet been endorsed by the
European Union:
-- IFRS 1 - Amendment - First time adoption of IFRS - effective
1 July 2010.
-- IFRS 7 - Amendment - Financial instruments: disclosures -
effective 1 July 2011
-- IFRS 9 - Financial instruments - effective 1 January
2013.
-- IFRS 10 - Consolidated financial statements - effective 1
January 2013.
-- IFRS 11 - Joint arrangements - effective 1 January 2013.
-- IFRS 12 - Disclosure of involvement with other entities -
effective 1 January 2013.
-- IFRS 13 - Fair value measurement - effective 1 January
2013.
-- IAS 12 - Amendment - Income taxes - effective 1 January
2012.
-- IAS 27 - Amendment - Separate financial statements -
effective 1 January 2013.
-- IAS 28 - Amendment - Investment in associates and joint
ventures - effective 1 January 2013.
The Group has not yet assessed the impact of IFRS 9, IFRS 10,
IFRS 11, IFRS 12, IFRS 13, IAS 27 nor IAS 28. The Directors do not
anticipate that the adoption of amendments to IFRS 1, IFRS 7 and
IAS 12 will have a material impact on the Group's financial
statements in the period of initial application.
2. Segmental information
For management purposes, the Group is organised into business
units according to the nature of the products and services and has
the following operating segments:
-- The Operations segment is responsible for the commercial
planting of Jatropha. Its activities include managing the outgrower
network, collecting grain and selling CJO.
-- The Science & Technology segment provided Jatropha plant
science and associated technical consulting services to
third-parties, breeding seeds and seedlings for commercial planting
and undertakes research and development activities on Jatropha and
its co-products. In December 2010, the disposal of a substantial
portion of this segment was effected, with the exception of the
animal feed activity. The effective financial date of disposal was
1 November 2010. For the purposes of segmental reporting, the
agronomy and breeding activities that were disposed of in 2010 are
classified as discontinued while the ongoing animal feed activity
is classified as continuing. Comparatives have been restated on
this basis.
No operating segments have been aggregated to form the above
reportable operating segments.
Management monitors the operating results of its business units
separately for the purpose of making decisions about resource
allocation and performance assessment. Segment performance is
evaluated based on profit or loss which in certain respects, as
explained in the table below, is measured differently from profit
or loss in the consolidated financial statements. Group financing
(including finance costs and finance revenue), taxation and central
administration are managed on a group basis and are not allocated
to operating segments.
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2011 2010 2010
Restated
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
----------------------------------------- ---------- ---------- -----------
Revenue
Operations 202.4 15.4 105.2
Science and Technology - - 63.0
----------------------------------------- ---------- ---------- -----------
Revenue from continued operations 202.4 15.4 168.2
----------------------------------------- ---------- ---------- -----------
Science and Technology (discontinued
operations) - 86.7 165.9
UK Refining and Trading (discontinued
operation) - - -
----------------------------------------- ---------- ---------- -----------
Group total 202.4 102.1 334.1
----------------------------------------- ---------- ---------- -----------
Loss
Operations (674.5) (766.7) (1,702.6)
Science and Technology (285.0) (117.2) (229.9)
Science and Technology (discontinued
operations) 22.5 (1,136.7) (3,693.6)
UK Refining and Trading (discontinued
operation) - 628.2 923.0
(937.0) (1,392.4) (4,703.1)
Corporate (840.2) (1,704.4) (1,385.3)
Group total (1,777.2) (3,096.8) (6,088.4)
----------------------------------------- ---------- ---------- -----------
3. Loss per ordinary share
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2011 2010 2010
Restated
Unaudited unaudited Audited
Number Number Number
--------------------------------------- ----------- ----------- -----------
Weighted average number of shares in
issue 126,481,574 126,481,574 126,481,574
--------------------------------------- ----------- ----------- -----------
Pence Pence Pence
--------------------------------------- ----------- ----------- -----------
Basic and diluted loss per ordinary
share for the period (1.41) (2.45) (4.81)
Basic and diluted loss per ordinary
share from continuing operations (1.42) (2.05) (2.62)
--------------------------------------- ----------- ----------- -----------
The number of shares in issue at 31 December 2010 and at 30 June
2011 was 126,675,219. For the purposes of calculating the loss per
ordinary share the weighted average number of shares excludes
193,645 shares held by the D1 Oils plc Employee Benefit Trust. The
diluted loss per share does not differ from the basic loss per
share as the share options are anti-dilutive.
For the purposes of calculating earnings per share, the
following profit figures were used:
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2011 2010 2010
Restated
Unaudited unaudited Audited
GBP000 GBP000 GBP000
----------------------------------------- ---------- ---------- -----------
Loss for the period attributable to
equity holders of the parent from
continuing operations (1,799.7) (2,588.3) (3,317.8)
Profit / (loss) for the period
attributable to equity holders of the
parent from discontinued operations 22.5 (508.5) (2,770.6)
----------------------------------------- ---------- ---------- -----------
Total loss for the period attributable to
equity holders of the parent (1,777.2) (3,096.8) (6,088.4)
----------------------------------------- ---------- ---------- -----------
4. Other financial assets
Other financial assets comprise the following:
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2011 2010 2010
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
---------------------- ---------- ---------- -----------
Other cash deposits - 4,104.4 -
Accrued bank interest - 12.3 -
Euro forward deposit - - 90.0
---------------------- ---------- ---------- -----------
- 4,116.7 90.0
---------------------- ---------- ---------- -----------
5. Contingent assets
At 30 June 2011, the Group had three contingent assets:
1. D1 Oils Trading Limited has commenced proceedings to recover
amounts due under a note, beneficial entitlement of which was
assigned to the company as a result of a previous settlement. The
note issuer has delayed payment of the note. D1 Oils Trading
Limited has not recognised an asset in relation to this note as the
amount and timing of cash flows from the note are uncertain. The
maximum amount recoverable by D1 under the note before interest is
US$1.2m.
2. In addition to the sale of the Bromborough refining site, the
buyer of the site agreed to pay D1 Oils Trading Limited a net
royalty of GBP0.4m plus VAT based on Bromborough's future
production volumes of biodiesel. The Group has not recognised an
asset in relation to this entitlement as the amount and timing of
cash flows are uncertain.
3. As part of the disposal of the agronomy and breeding
activities in the Science & Technology division in December
2010, the Company received Cumulative Redeemable Preference Shares
(CRPS) with a nominal value of a GBP0.8m and a 5% coupon due for
repayment in 2015. In addition, the Company is entitled to future
royalties on Jatropha related sales on a sliding scale over 10
years (15% to year 5; 10% years 6 - 8; 5% years 9 - 10). The Group
has not recognised an asset in relation to CRPSs or the royalties
as the amount and timing of cash flows are uncertain
6. Contingent liabilities
At 30 June 2011, the Group had two contingent liabilities:
1. As part of the sale of the Bromborough site, the lease
obligations for two parcels of land adjacent to the Bromborough
site were passed to the buyers. The two leases are first
cancellable in 2021. If the buyer defaults on these lease
obligations, the obligation may fall to D1. The maximum exposure is
GBP2.0m but various mitigations, such as sub-lets, are available.
This obligation remains contingent on the buyer defaulting and the
Board does not consider the risk sufficiently likely to recognise a
liability.
7. Approval by the Board of Directors
The Interim Report was approved by the Board of Directors on 28
September 2011.
Directors and advisors
Steven Rudofsky Company Secretary
Executive Chairman Marie Edwards
Martin Jarvis Registered office
Chief Operating Officer 16 Great Queen Street
London WC2B 5DG
Nicholas Myerson Registered number
Executive Director 5212852
Graham Woolfman Broker and nominated advisor
Non-Executive Director WH Ireland Limited
24 Martin Lane
London EC4R 0DR
Bankers
Barclays Bank plc
PO Box 378
71 Grey Street
Newcastle upon Tyne NE99 1JP
Auditors
Ernst & Young LLP
Citygate
St James' Boulevard
Newcastle upon Tyne NE99 1JP
Solicitors
Fladgate
16 Great Queen Street
London WC2B 5DG
Pinsent Masons
CityPoint
One Ropemaker Street
London EC2Y 9AH
Registrars
Capita IRG plc
The Registry
34 Beckenham Road
Kent BR3 4TU
For further information please contact:-
D1 Oils plc +44 (0) 20 7936 9104
Steven Rudofsky
Executive Chairman
WH Ireland + 44 (0) 20 7220 0470
Chris Fielding
Ends
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BBGDCSSDBGBC
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