TIDMMILA
RNS Number : 8746R
Mila Resources PLC
31 October 2019
Mila Resources Plc / Index: LSE / Epic: MILA / Sector: Natural
Resources
31 October 2019
Mila Resources Plc ("Mila Resources" or "the Company")
Final Results
Mila Resources Plc, a London listed natural resources company,
is pleased to present its final results for the six-month period
ended 30 June 2019.
Highlights
-- Ongoing appraisal of investment targets in regions with
strong valuation or cash-flow growth potential
-- Mutually terminated a proposed reverse takeover of Capital Metals Limited
-- Broadening of investment horizons
-- Strong balance sheet position with cash balance at the end of the period
Chairman's Statement
Dear Shareholder
We have pleasure in presenting the financial statements for the
year ended 30 June 2019.
Following Mila's re-listing and broadening of its horizons we
remain open minded about which industries we might invest in while
retaining our key criteria for delivering excellent value for our
shareholders. The mutually terminated proposed reverse takeover of
Capital Metals Limited, while disappointing, has driven our new
strategy which we hope will lead to a swift replacement. The
reduction of investment routes for smaller businesses following the
continued uncertainty over Brexit has driven some extremely
exciting opportunities towards Mila. Negotiations are already well
underway on these projects and we hope that at least one of these
opportunities can be Mila's first acquisition.
We formed the Company to undertake an acquisition of a
controlling interest in a company or business (an "Acquisition").
Any Acquisition is expected to constitute a reverse takeover
transaction and consideration for the Acquisition may be in part or
in whole in the form of share-based consideration or funded from
the Company's existing cash resources or the raising of additional
funds.
I look forward to reporting our progress to you over the next
period.
Financial
Funding
The Company is funded through investment from its Shareholders
following the Company's successful Standard Listing IPO onto the
London Stock Exchange in 2016, raising GBP1.05 million before
costs.
Revenue
The Company has generated no revenue during the year, however,
its focussing on acquisition targets that will ultimately generate
revenue for the Company.
Expenditure
During the year, the Company has continued its fiscal discipline
with the Company continuing to maintain low overheads. Any monies
spent on business development opportunities has only occurred after
a particular project has passed our initial technical review.
Liquidity, cash and cash equivalents
At 30 June 2019, the Company held GBP428,673 (2018: GBP701,550)
of cash and cash equivalents, all of which are denominated in
pounds sterling.
Mark Stephenson
Executive Director
31 October 2019
Strategic Report
Understanding our business
The Company was incorporated on 3 June 2015, with the view of
pursuing an initial public offering of its securities onto the
London Stock Exchange through a Standard Listing to raise the
necessary funds required for the execution of the business
strategy, which is to acquire a business or asset.
This IPO was completed during 2016, with the Company
successfully raising GBP1,050,000 before costs with Admission to
the Main Market of the London Stock Exchange in October 2016.
Key performance indicators
Appropriate key performance indicators will be identified in due
course as the business strategy is implemented following a
successful acquisition. Given the current nature of the Company's
business, the Directors are of the opinion that the primary
performance indicator is the completion of an acquisition.
Principal risks and uncertainties
The principal risks currently faced by the Company relate
to:
Acquiring Less than Controlling Interests
The Company may acquire either less than whole voting control
of, or less than a controlling equity interest in, a target, which
may limit the Company's operational strategies and reduce its
ability to enhance Shareholder value.
Inability to Fund Operations Post-Acquisition
The Company may be unable to fund the operations post
acquisition of the target business if it does not obtain additional
funding, however, the Company will ensure that appropriate funding
measures are taken to ensure minimum commitments are met.
The Company's Relationship with the Directors and Conflicts of
Interest
The Company is dependent on the Directors to identify potential
acquisition opportunities and to execute an acquisition.
The Directors are not obliged to commit their whole time to the
Company's business; they will allocate a portion of their time to
other businesses which may lead to the potential for conflicts of
interest in their determination as to how much time to assign to
the Company's affairs.
Suitable Acquisition Opportunities may not be Identified or
Completed
The Company's business strategy is dependent on the ability of
the Directors to identify sufficient suitable acquisition
opportunities. If the Directors do not identify a suitable
acquisition target, the Company may not be able to fulfil its
objectives. Furthermore, if the Directors do not identify a
suitable target, the Company may not acquire it at a suitable price
or at all. In addition, if an acquisition identified and
subsequently aborted the Company may be left with substantial
transaction costs.
Risks Inherent in an Acquisition
Although the Company and the Directors will evaluate the risks
inherent in a particular target, they cannot offer any further
assistance that all of the significant risk factors can be
identified or properly assessed. Furthermore, no assurance can be
made that an investment in Ordinary Shares in the Company will
ultimately prove to be more favourable to investors then a direct
investment, if such an opportunity were available, in a target
business.
Brexit
In March 2017, the UK officially triggered Article 50 and
notified the EU of its intention to leave the EU following the UK's
June 2016 referendum vote (commonly known as Brexit). The
triggering of Article 50 begins the process of withdrawal from the
EU. In November 2018, the UK and the 27 other countries involved in
Brexit negotiations, agreed upon the terms of a withdrawal
agreement and includes a transitional period until 31 December
2020, during which EU law will continue to apply in and to the UK.
The withdrawal agreement will need to be ratified by the EU and the
UK before it can enter into force and ratification is uncertain. On
10 April 2019, the European Council agreed an extension to allow
for the ratification of the withdrawal agreement to last no longer
than 31 October 2019. Subsequent to this, in October 2019, an
extension has been granted until 31 January 2020. The UK and EU
continue to negotiate the exit of the UK from the EU. The impact on
the Company, if any, remains uncertain at this time but is being
closely monitored by the board.
Reliance on External Advisors
The Directors expect to rely on external advisors to help
identify and assess potential acquisitions and there is a risk that
suitable advisors cannot be placed under contract or that such
advisors that are contracted to fail to perform as required.
Failure to Obtain Additional Financing to Complete an
Acquisition or Fund a Target's Operations
There is no guarantee that the Company will be able to obtain
any additional financing needed to either complete an acquisition
or to implement its plans post acquisition or, if available, to
obtain such financing on terms attractive to the Company. In that
event, the Company may be compelled to restructure or abandon the
acquisition or proceed with the acquisition on less favourable
terms, which may reduce the Company's return on the investment. The
failure to secure additional financing on acceptable terms could
have a material adverse effect on the continued development or
growth of the Company and the acquired business.
Reliance on Income from the Acquired Activities
Following an acquisition, the Company may be dependent on the
income generated by the acquired business or from the subsequent
divestment of the acquired business to meet the Company's expenses.
If the acquired business is unable to provide the sufficient
amounts to the Company, the Company may be unable to pay its
expenses or make distributions and dividends on the Ordinary
Shares.
Restrictions in Offering Ordinary Shares as a Consideration for
an Acquisition or Requirements to Provide Alternative
Consideration.
In certain jurisdictions, there may be legal, regulatory or
practical restrictions on the Company using its Ordinary Shares as
a consideration for an acquisition or which may mean that the
Company is required to provide alternative forms of consideration.
Such restrictions may limit the Company's acquisition opportunities
or make a certain acquisition more costly, which may have an
adverse effect on the results of operations of the Company.
Gender analysis
A split of our employees and directors by gender and average
number during the year is shown below:
Male Female
Directors 3 nil
Corporate social responsibility
We aim to conduct our business with honesty, integrity and
openness, respecting human rights and the interests of our
shareholders and employees. We aim to provide timely, regular and
reliable information on the business to all our shareholders and
conduct our operations to the highest standards.
We strive to create a safe and healthy working environment for
the wellbeing of our staff and create a trusting and respectful
environment, where all members of staff are encouraged to feel
responsible for the reputation and performance of the Company.
We aim to establish a diverse and dynamic workforce with team
players who have the experience and knowledge of the business
operations and markets in which we operate. Through maintaining
good communications, members of staff are encouraged to realise the
objectives of the Company and their own potential.
The Board would like to take this opportunity to thank our
shareholders, Board and advisors for their support during the
year.
Mark Stephenson
Executive Director
31 October 2019
Statement of Comprehensive Income
Year ended Year ended
30 June 2019 30 June 2018
Notes GBP GBP
Revenue - -
Administrative expenses (259,395) (235,264)
-------------- --------------
Operating loss (259,395) (235,364)
Finance income - -
-------------- --------------
Loss on ordinary activities before
taxation 4 (259,395) (235,264)
Tax on loss on ordinary activities 7 - -
-------------- --------------
Loss and total comprehensive loss
for the period attributable to the
owners of the company (259,395) (235,264)
============== ==============
Earnings per share (basic and diluted)
attributable to the equity holders
(pence) 8 (1.12) (1.01)
The above results relate entirely to continuing activities.
The accompanying notes on pages 26 to 38 form part of these
financial statements
Statement of Financial Position
Year ended Year ended
30 June 2019 30 June 2018
Notes GBP GBP
CURRENT ASSETS
Trade and other receivables 9 17,642 8,791
Cash and cash equivalents 10 428,673 701,550
-------------- --------------
446,315 710,341
-------------- --------------
TOTAL ASSETS 446,315 710,341
-------------- --------------
CURRENT LIABILITIES
Trade and other payables 11 17,745 22,377
-------------- --------------
TOTAL LIABILITIES 17,745 22,377
-------------- --------------
NET ASSETS 428,570 687,964
============== ==============
EQUITY
Share capital 13 232,000 232,000
Share premium 13 849,300 849,300
Share based payment reserve 14 4,720 4,720
Retained loss (657,450) (398,056)
TOTAL EQUITY 428,570 687,964
============== ==============
These financial statements were approved by the Board of
Directors on 30 October 2019 and were signed on its behalf by:
______________________________
Lee Daniels
Executive Director
Company number: 09620350
Statement of Cashflows
Year ended Year ended
30 June 2019 30 June 2018
GBP GBP
Cash flow from operating activities
Loss for the year (259,395) (235,264)
Operating cashflow before working
capital movements (259,395) (235,264)
(Increase) in trade and other receivables (8,851) (7,550)
(Decrease) / Increase in trade and
other payables (4,632) 12,330
-------------- --------------
Net cash outflow from operating activities (272,878) (230,484)
-------------- --------------
Net decrease in cash and cash equivalents (272,878) (230,484)
Cash and cash equivalents at the
beginning of the year 701,550 932,034
Cash and cash equivalents at the
end of the year 428,672 701,550
============== ==============
The accompanying notes on pages 26 to 38 form part of these
financial statements.
Statement of Changes in Equity
Share Share Share Based Retained Total
Capital Premium Payment Loss
Reserve
GBP GBP GBP GBP GBP
Balance at 1 July
2017 232,000 849,300 4,720 (162,792) 923,228
Total comprehensive
loss for the year - - - (235,264) (235,264)
Balance at 30 June
2018 232,000 849,300 4,720 (398,055) 687,964
--------- --------- ------------ ---------- ----------
Total comprehensive
loss for the year - - - (259,395) (259,395)
Balance at 30 June
2019 232,000 849,300 4,720 (657,450) 428,570
--------- --------- ------------ ---------- ----------
The accompanying notes on pages 26 to 38 form part of these
financial statements.
Notes to the Financial Statements
1 GENERAL INFORMATION
Mila Resources Plc (the "Company") looks to identify potential
companies, businesses or asset(s) that will increase shareholder
value.
The Company is domiciled in the United Kingdom and incorporated
and registered in England and Wales as a public limited company.
The Company's registered office is Lockstrood Farm, Ditchling
Common, Burgess Hill, West Sussex, RH15 0SJ. The Company's
registered number is 09620350.
2 ACCOUNTING POLICIES
2.1 Basis of preparation
The Financial Statements of the Company have been prepared in
accordance with International Financial Reporting Standards
("IFRS") and IFRS Interpretations Committee ("IFRS IC") as adopted
by the European Union and the Companies Act 2006 applicable to
companies reporting under IFRS.
The Financial Statements have been prepared un the historical
cost convention. The principal accounting policies are set out
below and have, unless otherwise stated, been applied consistently
for all periods presented in these Financial Statements. The
Financial Statements are prepared in pounds Sterling and presented
to the nearest pound.
2.2 Going concern
The financial statements have been prepared on a going concern
basis, which assumes that the Company will continue in operational
existence for the foreseeable future.
The Company had a net cash outflow from operating activities for
the year of GBP272,878 (2018: GBP230,484) and at 30 June 2019 had
cash and cash equivalents balance of GBP428,673 (2018:
GBP701,550).
The Company has no revenue but has cash resources to finance
activities whilst it identifies and completes suitable transaction
opportunities. When a suitable transaction is identified, the
Directors will consider the need for further funding to complete
the transaction.
Having considered forecasts, the Directors consider that there
will be sufficient funds available for the Company to continue in
operational existence for at least 12 months from the date of
approval of these accounts. Accordingly, the Board believes it
appropriate to adopt the going concern basis in the approval of the
financial statements.
2.3 Standards, amendments and interpretations to existing
standards that are not yet effective and have not been early
adopted by the Group
New standards, amendments to standards and interpretations:
During the financial year, the Company has adopted the following
new IFRSs (including amendments thereto) and IFRIC interpretations
that became effective for the first time.
IFRS 9 'Financial Instruments'
Mila Resources Plc has applied IFRS 9, which is effective for
annual periods that begins on or after 1 January 2018, to the
results for the year ended 30 June 2019. The standard replaces all
phases of the financial instruments project and IAS 39 'Financial
Instruments: Recognition and Measurement'.
The adoption of IFRS 9 has not had any significant impact on
recognition and measurement of financial instruments in the
financial statements.
IFRS 15 'Revenue from Contracts with Customers'
Mila Resources Plc has applied IFRS 15 Revenue from Contracts
with Customers, which is effective for annual periods that begin on
or after 1 January 2018, to the results for the year ended 30 June
2019. The standard introduces a new revenue recognition model and
replaces IAS 18 'Revenue', IAS 11 'Construction Contracts', IFRIC
13 'Customer Loyalty Programmes', IFRIC 15 'Agreements for the
Construction of Real Estate', IFRIC 18 'Transfer of Assets from
Customers' and SIC-31 "Revenue - Barter Transactions Involving
Advertising Services.'
As the company has no revenue the introduction of IFRS 15 has
had no impact on the financial statements.
Standards issued but not yet effective:
At the date of authorisation of these financial statements, the
following standards and interpretations relevant to the Company and
which have not been applied in these financial statements, were in
issue but were not yet effective. In some cases, these standards
and guidance have not been endorsed for use in the European
Union.
Standard Effective date, annual
period beginning on or
after
IFRS 16 Leases 1 January 2019
------------------------
IFRIC 23 - Uncertainty over Income Tax 1 January 2019
Treatments
------------------------
Annual improvements 2015-2017 cycle 1 January 2019
------------------------
Amendments to References to the Conceptual 1 January 2020
Framework in IFRS Standards
------------------------
The directors do not consider that these standards will impact
the financial statements of the Company.
2.4 Foreign currency translation
The financial information is presented in Sterling which is the
Company's functional and presentational currency.
Transactions in currencies other than the functional currency
are recognised at the rates of exchange on the dates of the
transactions. At each balance sheet date, monetary assets and
liabilities are retranslated at the rates prevailing at the balance
sheet date with differences recognised in the Statement of
comprehensive income in the period in which they arise.
2.5 Financial instruments
Initial recognition
A financial asset or financial liability is recognised in the
statement of financial position of the Company when it arises or
when the Company becomes part of the contractual terms of the
financial instrument.
Classification
Financial assets at amortised cost
The Company measures financial assets at amortised cost if both
of the following conditions are met:
(1) the asset is held within a business model whose objective is
to collect contractual cash flows; and
(2) the contractual terms of the financial asset generating cash
flows at specified dates only pertain to capital and interest
payments on the balance of the initial capital.
Financial assets which are measured at amortised cost, are
measured using the Effective Interest Rate Method (EIR) and are
subject to impairment. Gains and losses are recognised in profit or
loss when the asset is derecognised, modified or impaired.
Financial liabilities at amortised cost
Financial liabilities measured at amortised cost using the
effective interest rate method include current borrowings and trade
and other payables that are short term in nature. Financial
liabilities are derecognised if the Company's obligations specified
in the contract expire or are discharged or cancelled.
Amortised cost is calculated by taking into account any discount
or premium on acquisition and fees or costs that are an integral
part of the effective interest rate ("EIR"). The EIR amortisation
is included as finance costs in profit or loss. Trade payables
other payables are non-interest bearing and are stated at amortised
cost using the effective interest method.
Derecognition
A financial asset is derecognised when:
(1) the rights to receive cash flows from the asset have
expired, or
(2) the Company has transferred its rights to receive cash flows
from the asset or has undertaken the commitment to fully pay the
cash flows received without significant delay to a third party
under an arrangement and has either (a) transferred substantially
all the risks and the assets of the asset or (b) has neither
transferred nor held substantially all the risks and estimates of
the asset but has transferred the control of the asset.
Impairment
The Company recognises a provision for impairment for expected
credit losses regarding all financial assets. Expected credit
losses are based on the balance between all the payable contractual
cash flows and all discounted cash flows that the Company expects
to receive. Regarding trade receivables, the Company applies the
IFRS 9 simplified approach in order to calculate expected credit
losses. Therefore, at every reporting date, provision for losses
regarding a financial instrument is measured at an amount equal to
the expected credit losses over its lifetime without monitoring
changes in credit risk. To measure expected credit losses, trade
receivables and contract assets have been grouped based on shared
risk characteristics.
Trade and other receivables
Trade and other receivables are initially recognised at fair
value when related amounts are invoiced then carried at this amount
less any allowances for doubtful debts or provision made for
impairment of these receivables.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and
are subject to an insignificant risk of changes in value.
Trade payables
These financial liabilities are all non-interest bearing and are
initially recognised at the fair value of the consideration
payable.
2.6 Equity
Share capital is determined using the nominal value of shares
that have been issued.
The Share premium account includes any premiums received on the
initial issuing of the share capital. Any transaction costs
associated with the issuing of shares are deducted from the Share
premium account, net of any related income tax benefits.
Equity-settled share-based payments are credited to a
share-based payment reserve as a component of equity until related
options or warrants are exercised or lapse.
Retained losses includes all current and prior period results as
disclosed in the income statement.
2.7 Share-based payments
The Company has issued warrants to the initial investors and
certain counter parties and advisers.
Equity-settled share-based payments are measured at fair value
(excluding the effect of non-market based vesting conditions) at
date of grant. The fair value so determined is expensed on a
straight-line basis over the vesting period, based on the Company's
estimate of the number of shares that will eventually vest and
adjusted for the effect of non-market based vesting conditions.
Fair value is measured using the Black Scholes pricing model. The
key assumption used in the model have been adjusted, based on
management's best estimate, for the effects of non-transferability,
exercise restrictions and behavioural considerations.
2.8 Taxation
Tax currently payable is based on taxable profit for the period.
Taxable profit differs from profit as reported in the income
statement because it excludes items of income and expense that are
taxable or deductible in other years and it further excludes items
that are never taxable or deductible. The Company's liability for
current tax is calculated using tax rates that have been enacted or
substantively enacted by the balance sheet date.
Deferred tax is recognised on differences between the carrying
amounts of assets and liabilities in the financial statements and
the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability
method. Deferred tax liabilities are generally recognised for all
taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable profits
will be available against which deductible temporary differences
can be utilised. Such assets and liabilities are not recognised if
the temporary difference arises from initial recognition of
goodwill or from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary
differences arising on investments in subsidiaries and associates,
and interests in joint ventures, except where the Company is able
to control the reversal of the temporary difference and it is
probable that the temporary difference will not reverse in the
foreseeable future.
The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow
all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled, or the asset
realised. Deferred tax is charged or credited to profit or loss,
except when it relates to items charged or credited directly to
equity, in which case the deferred tax is also dealt with in
equity.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied
by the same taxation authority and the Company intends to settle
its current tax assets and liabilities on a net basis.
2.9 Critical accounting judgements and key sources of estimation uncertainty
In the process of applying the entity's accounting policies,
management makes estimates and assumptions that have an effect on
the amounts recognised in the financial information. Although these
estimates are based on management's best knowledge of current
events and actions, actual results may ultimately differ from those
estimates. The Directors consider that there are no critical
accounting judgements or key sources of estimation uncertainly
relating to the financial information of the Company.
2.10 Loss per share
Basic loss per share is calculated as profit attributable to
equity holders of the parent for the period, adjusted to exclude
any costs of servicing equity (other than dividends), divided by
the weighted average number of ordinary shares, adjusted for any
bonus element.
2.11 Segmental reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating
decision-maker.
The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating
segments, has been identified as the Board as a whole.
All operations and information are reviewed together so that at
present there is only one reportable operating segment.
3. SEGMENT REPORTING
As identifying and assessing investment projects is the only
activity the Company is involved in and is therefore considered as
the only operating/reporting segment. Therefore the financial
information of the single segment is the same a set out in the
statement of comprehensive income and statement of financial
position.
4. OPERATING LOSS
This is stated after charging:
2019 2018
GBP GBP
Auditor's remuneration
audit of the Company 15,000 9,500
corporate finance services 4,000 -
Directors' remuneration 112,215 72,000
Stock exchange and regulatory
expenses 29,407 32,687
Other expenses 98,773 121,077
-------- --------
Operating expenses 259,395 235,264
-------- --------
5. AUDITOR'S REUMERATION
2019 2018
GBP GBP
Fees payable to the Company's
current auditor: 15,000 -
* audit of the Company's financial statements - -
4,000 -
* taxation compliance services
* corporate finance services
19,000 -
--------- -----
2019 2018
GBP GBP
Fees payable to the Company's
former auditor:
* audit of the Company's financial statements - 9,500
- 9,500
------- --------
6. DIRECTORS AND STAFF COSTS
During the year the only staff of the Company were the Directors
and as such key management personnel. Management remuneration,
other benefits supplied and social security costs to the Directors
during the year was as follows:
2019 2018
GBP GBP
Salaries 64,215 72,000
Severance Payments 48,000 -
Social security costs 9,775 3,556
-------- -------
121,990 75,556
-------- -------
The average number of staff during the year, including Directors
was 3 (2018: 3).Each Director's remuneration has been set out on
page 13.
7. TAXATION
2019 2018
GBP GBP
The charge / credit for the year
is made up as follows:
Current tax - -
Deferred tax - -
Taxation charge / credit for the - -
year
---------- ----------
A reconciliation of the tax charge
/ credit appearing in the income
statement to the tax that would
result from applying the standard
rate of tax to the results for
the year is:
Loss per accounts (259,395) (235,264)
---------- ----------
Tax credit at the standard rate
of corporation tax in the UK of
19% (2018: 19%) (49,285) (44,700)
Impact of costs disallowed for
tax purposes 95 570
Deferred tax in respect of temporary - -
differences
Impact of unrelieved tax losses
carried forward 49,190 44,130
- -
---------- ----------
Estimated tax losses of GBP597,747 (2018: GBP354,065) are
available for relief against future profits and a deferred tax
asset of GBP109,381 (2018: GBP60,191) has not been provided for in
the accounts due to the uncertainty of future profits.
Factors affecting the future tax charge
The standard rate of corporation tax in the UK is 19%.
Accordingly, the Company's effective tax rate for the period was
19% (2018: 19%).
A further change in the corporation tax rate from 19% to 17%
(effective from 1 April 2020) was substantially enacted on 15
September 2016, therefore the potential deferred tax asset has been
assessed on this basis.
8. LOSS PER SHARE
The calculation of the loss per share is based on the loss for
the financial period after taxation of GBP259,395 (2018: loss
GBP235,264) and on the weighted average of 23,200,000 (2018:
23,200,000) ordinary shares in issue during the period.
The warrants outstanding at 30 June 2019 and 30 June 2018 are
considered to be non-dilutive in that their conversion into
ordinary shares would not increase the net loss per share.
Consequently, there is no diluted loss per share to report for the
period.
9. TRADE AND OTHER RECEIVABLES
2019 2018
GBP GBP
Prepayments and other receivables 17,642 8,791
17,642 8,791
------- ------
The Directors consider that the carrying value amount of trade
and other receivables approximates to their fair value.
10. CASH AND CASH EQUIVALENTS
2019 2018
GBP GBP
Cash at bank 428,673 701,550
428,673 701,550
-------- --------
Cash at bank comprises balances held by the Company in current
bank accounts. The carrying value of these approximates to their
fair value.
11. TRADE AND OTHER PAYABLES
2019 2018
GBP GBP
Trade payables 1,524 1,384
Accruals and other payables 16,221 20,993
17,745 22,377
------- -------
Trade payables and accruals principally comprise amounts
outstanding for trade purchases and continuing costs. The Directors
consider that the carrying value amount of trade and other payables
approximates to their fair value. Refer Note 18.
12. DEFERRED TAXATION
No deferred tax asset has been recognised by the Company due to
the uncertainty of generating sufficient future profits and tax
liability against which to offset the tax losses. Note 7 above sets
out the estimated tax losses carried forward and the impact of the
deferred tax asset not accounted for.
13. SHARE CAPITAL / SHARE PREMIUM
Number Share Share
of shares capital premium Total
on issue GBP GBP GBP
Balance as at 1 July 2017 23,200,000 232,000 849,300 1,081,300
Balance as at 30 June 2018 23,200,000 232,000 849,300 1,081,300
----------- --------- --------- ----------
Balance as at 30 June 2019 23,200,000 232,000 849,300 1,081,300
----------- --------- --------- ----------
The Company has only one class of share. All ordinary shares
have equal voting rights and rank pari passu for the distribution
of dividends and repayment of capital.
At 30 June 2019, there were warrants and options over 15,825,000
unissued ordinary shares (2018: 15,825,000).Details of the warrants
outstanding are as follows:
Issued Exercisable Expiry date Number outstanding Exercise
from price
16 October 2015 Anytime until 31 December 4,400,000 GBP0.05
2020
12 September Anytime until 31 December 350,000 GBP0.05
2016 2020
26 September 7 October 31 December 11,075,000 GBP0.10
2016 * 2016 2020
15,825,000
-------------------
* The warrants were issued conditional upon the Ordinary Shares
to be admitted to trading on the London Stock Exchange's main
market for listed securities which occurred on 7 October 2016.
The Directors held the following warrants at the beginning and
end of the year:
Director At 30 June Granted At 30 June Exercise Earliest Latest date
2018 during 2019 price date of of exercise
the year exercise
16 Oct
M Stephenson 1,200,000 - 1,200,000 GBP0.05 2016 20 Dec 2020
1,200,000 - 1,200,000
----------- ---------- -----------
Warrants held by former Directors have been set out on page
14.
The market price of the shares at year end was GBP0.015 per
share.
During the year, the minimum and maximum prices were GBP0.014
and GBP0.038 per share respectively.
14. SHARE BASED PAYMENT RESERVE
2019 2018
GBP GBP
At 1 July 4,720 4,720
Fair value of warrants granted - -
during the period
At 30 June 4,720 4,720
------ ------
The Company did not issue any warrants during the current or
prior year.
Fair Value Weighted average
Number GBP exercise price
At 1 July 2017 15,825,000 4,720 GBP0.085
Balance at 30 June 2018 15,825,000 4,720 GBP0.085
----------- ----------------------- -----------------
Balance at 30 June 2019 15,825,000 4,720 GBP0.085
----------- ----------------------- -----------------
The warrants outstanding at the year end have a weighted average
remaining contractual life of 1.5 years. The exercise prices of the
warrants are GBP0.05 and GBP0.10 per share.
15. CAPITAL COMMITMENTS
There were no capital commitments at 30 June 2018 and 30 June
2019.
16. CONTINGENT LIABILITIES
There were no contingent liabilities at 30 June 2018 and 30 June
2019.
17. COMMITMENTS UNDER OPERATING LEASES
There were no commitments under operating leases at 30 June 2018
and 30 June 2019.
18. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
The Company's financial instruments comprise primarily cash and
various items such as trade debtors and trade payables which arise
directly from operations. The main purpose of these financial
instruments is to provide working capital for the Company's
operations. The Company does not utilise complex financial
instruments or hedging mechanisms.
Financial assets by category
2019 2018
GBP GBP
Current Assets:
Trade and other receivables (excluding
prepayments) 10,938 3,241
Cash and cash equivalents 428,673 701,550
Categorised as financial assets at
amortised cost 439,611 710,341
-------- --------
Financial liabilities by category
2019 2018
GBP GBP
Current Liabilities:
Trade and other payables 17,745 22,377
Categorised as financial liabilities
measured at amortised cost 17,745 22,377
------- -------
All amounts are short term and payable in 0 to 3 months.
Credit risk
The maximum exposure to credit risk at the reporting date by
class of financial asset was:
2019 2018
GBP GBP
Trade receivables 10,938 8,791
------- ------
Capital management
The Company considers its capital to be equal to the sum of its
total equity. The Company monitors its capital using a number of
key performance indicators including cash flow projections, working
capital ratios, the cost to achieve development milestones and
potential revenue from partnerships and ongoing licensing
activities.
The Company's objective when managing its capital is to ensure
it obtains sufficient funding for continuing as a going concern.
The Company funds its capital requirements through the issue of new
shares to investors.
Interest rate risk
The maximum exposure to interest rate risk at the reporting date
by class of financial asset was:
2019 2018
GBP GBP
Bank balances 428,673 701,550
-------- --------
The nature of the Company's activities and the basis of funding
are such that the Company has significant liquid resources. The
Company uses these resources to meet the cost of operations.
The Company is not financially dependent on the income earned on
these resources and therefore the risk of interest rate
fluctuations is not significant to the business and the Directors
have not performed a detailed sensitivity analysis.
All deposits are placed with main clearing banks, with 'A'
ratings, to restrict both credit risk and liquidity risk. The
deposits are placed for the short term, between one and three
months, to provide flexibility and access to the funds.
Credit and liquidity risk
Credit risk is managed on a Company basis. Funds are deposited
with financial institutions with a credit rating equivalent to, or
above, the main UK clearing banks. The Company's liquid resources
are invested having regard to the timing of payment to be made in
the ordinary course of the Company's activities. All financial
liabilities are payable in the short term (between 0 to 3 months)
and the Company maintains adequate bank balances to meet those
liabilities.
Currency risk
The Company operates in a global market with income and costs
possibly arising in a number of currencies. The majority of the
operating costs are incurred in GBPGBP. The Company does not hedge
potential future income or costs, since the existence, quantum and
timing of such transactions cannot be accurately predicted. The
Company did not have foreign currency exposure at year end.
19. RELATED PARTY TRANSACTIONS
Key management personnel compensation
The Directors are considered to be key management personnel.
Detailed remuneration disclosures are provided in the remuneration
report on pages 12 - 14.
Amounts due from/to related parties
As at 30 June 2019, GBP1,642 was due to the Company from Mark
Stephenson, a Director of the Company. This outstanding balance is
unsecured, interest free and repayable on demand.
There were no other related party transactions.
20. EVENTS SUBESQUENT TO YEAR END
There were no events subsequent to the year end.
21. CONTROL
In the opinion of the Directors there is no single ultimate
controlling party.
**ENDS**
For more information visit www.milaresources.com or contact:
Mark Stephenson Mila Resources Plc +44 (0) 20 7236 1177
St Brides Partners
Beth Melluish Ltd +44 (0) 20 7236 1177
-------------------- ---------------------
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
FR UAONRKNAROAA
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