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Unaudited Condensed Interim Financial Results for the six months ended 31 December 2017
AEP Energy Africa Limited
Incorporated in the Republic of South Africa
(Registration number 2017/024904/06)
JSE share code: AEY
ISIN: ZAE000241741
("AEP" or "the Company")
Unaudited Condensed Interim Financial Results for the six months ended 31 December 2017
Introduction
1. Basis of presentation
The unaudited condensed interim financial results are prepared in accordance with International Financial Reporting Standards
("IFRS"), IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices
Committee and Financial Pronouncements as issued by Financial Reporting Standards Council and the requirements of the
Companies Act of South Africa. These accounting policies are consistent with those applied in the previous annual financial
statements.
The condensed interim financial results for the six months ended 31 December 2017 have not been audited or reviewed. The
unaudited condensed interim financial results have been prepared under the supervision of Mr KG Simons CA (SA), in his
capacity as Chief Financial Officer.
2. Nature of business
The Company successfully listed as a special purpose acquisition company ("SPAC") on the alternative exchange ("AltX") of
the JSE Limited ("JSE") on 30 June 2017. Upon listing, 5 255 480 shares of no par value were placed at R10 a share, raising
R52,554,800 worth of equity share capital in the process.
AEP’s business model is to acquire clean energy infrastructure businesses or energy service providers that are operating and cash generative
or not more than 12 months away from commercial operations. Typically, such assets and service providers have clear revenue and
income visibility. Examples include long-term electricity supply contracts.
3. Commentary
At 31 December 2017, AEP is yet to acquire a viable asset. Management is actively pursuing the acquisition of a viable asset.
AEP remains under cautionary and will alert the market of the progress thereof.
Any income generated thus far has solely been from interest received on cash balances. AEP made a loss after tax for the period of
R6,962,602 (30 June 2017: R6,136,894). Basic and headline loss of 132.48 cents per share (30 June 2017: 18 224 cents per
share) is based on 5 255 680 shares, being the weighted average number of shares in issue over the interim period to 31
December 2017 and is a result of interest received from funds in escrow and current accounts, less permissible expenses.
The current tax for the period under review amounts to R354,037 (30 June 2017: R9,849).
4. Comparatives
Comparatives for the period ending 31 December 2016 have not been shown as the Company only started trading in February
2017. The comparatives as shown are for the five months ended 30 June 2017.
5. Changes to the Board
On 4 September 2017, Erica Johnson resigned as an independent non-executive director.
6. Going concern
The unaudited condensed interim results for the period ended 31 December 2017 have been prepared on a going concern
basis.
This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of
liabilities, contigent obligations and commitments will occur in the ordinary course of business.
7. Dividend
There were no dividends declared for the interim period.
8. Details of the Board
The directors in office at the date of this report are as follows:
Executive directors
Edwin Kikonyogo (Chief Executive Officer)
Nkosi-Yawo Gugushe (Chief Operations Officer)
Kevin Simons (Chief Financial Officer)
Non-executive directors
David Wright* (Chairman)
Silvanus David*
Carla Cloete*
Sifiso Sibiya*
Meriam Kekana*
Sello Moloko
Thabo Leeuw
Oliver Petersen
* Independent
9. Registered office
The registered address of the company is:
Business address: Second Floor
28 Fricker Road
Illovo
Sandton
2196
10. Company secretary
The company secretary of AEP is Imbokodvo Bethany Governance and Statutory Compliance Proprietary Limited who is
represented by Ms. Siphiwe Ngwenya.
Business address: First Floor, Yellowwood House
Ballywoods Office Park
33 Ballyclare Drive
Bryanston
2196
11. Designated advisor
Questco Corporate Advisory Proprietary Limited is the designated advisor to AEP.
Business address: First Floor, Yellowwood House
Ballywoods Office Park
33 Ballyclare Drive
Bryanston
2196
Unaudited Condensed Statement of Financial Position as at 31 December 2017
31 December 30 June
Figures in Rand 2017 2017
Unaudited Audited
Assets
Non-Current Assets
Property, plant and equipment 13,814 16,884
Current Assets
Trade and other receivables 162,213 1,102,560
Cash and cash equivalents 37,776,257 52,592,028
37,938,470 53,694,588
Total Assets 37,952,284 53,711,472
Equity and Liabilities
Equity
Share capital 48,741,085 48,741,085
Accumulated loss (13,099,494) (6,136,894)
35,641,591 42,604,191
Liabilities
Current Liabilities
Trade and other payables 2,233,087 9,773,997
Loans from related parties - 1,323,435
Current tax payable 77,606 9,849
2,310,693 11,107,281
Total Equity and Liabilities 37,952,284 53,711,472
Unaudited Condensed Statement of Profit or Loss and Other Comprehensive Income
six months five months
ended ended
31 December 30 June
Figures in Rand Note(s) 2017 2017
Unaudited Audited
Unrealised foreign exchange gains 26,077 -
Operating expenses (7,861,949) (6,162,221)
Operating loss (7,835,872) (6,162,221)
Interest received 1,227,309 35,176
Loss before taxation (6,608,563) (6,127,045)
Taxation (354,037) (9,849)
Loss for the six months (6,962,600) (6,136,894)
Other comprehensive income - -
Total comprehensive loss for the six months (6,962,600) (6,136,894)
Loss per share
Per share information
Basic loss per share (cents) 1 (132.48) (18,224.00)
Headline loss per share (cents) 1 (132.48) (18,224.00)
(132.48) (18,224.00)
There are no dilutive instruments in issue for all periods presented.
Unaudited Condensed Statement of Changes in Equity
Share capital Accumulated Total equity
Figures in Rand loss
Issue of shares 52,555,000 - 52,555,000
Share issue costs (3,813,915) - (3,813,915)
Opening balance as previously reported 48,741,085 - 48,741,085
Loss for the five months ended 30 June 2017 - (6,136,894) (6,136,894)
Other comprehensive income - - -
Total comprehensive loss for the five months - (6,136,894) (6,136,894)
Balance at 01 July 2017 48,741,085 (6,136,894) 42,604,191
Loss for the six months ended 31 December 2017 - (6,962,600) (6,962,600)
Other comprehensive income - - -
Total comprehensive loss for the six months - (6,962,600) (6,962,600)
Balance at 31 December 2017 48,741,085 (13,099,494) 35,641,591
Unaudited Condensed Statement of Cash Flows
six months five months
ended ended
31 December 30 June
Figures in Rand 2017 2017
Unaudited Audited
Cash flows from operating activities
Loss before taxation (6,608,563) (6,127,045)
Adjustments for:
Depreciation 3,070 1,535
Unrealised foreign exchange gains (26,077) -
Interest received (1,227,309) (35,176)
Changes in working capital:
Trade and other receivables 940,347 (1,102,560)
Trade and other payables (7,514,833) 9,773,997
Cash used in operations (14,433,365) 2,510,751
Interest received 1,227,309 35,176
Tax paid (286,280) -
Net cash (outflow)/inflow from operating activities (13,492,336) 2,545,927
Cash flows from investing activities
Purchase of property, plant and equipment - (18,419)
Loans from related parties repaid (1,323,435) -
Proceeds from loans from related parties - 1,323,435
Net cash (outflow)/inflow from investing activities (1,323,435) 1,305,016
Cash flows from financing activities
Proceeds on share issue - 52,555,000
Payment of share issue costs - (3,813,915)
Net cash (outflow)/inflow from financing activities - 48,741,085
Total cash movement for the period (14,815,771) 52,592,028
Cash at the beginning of the period 52,592,028 -
Total cash at end of the period 37,776,257 52,592,028
Notes to the Unaudited Condensed Interim Financial Results
six months five months
ended ended
31 December 30 June
Figures in Rand 2017 2017
Unaudited Audited
1. Basic loss per share
Basic earnings/loss per share is determined by dividing profit or loss attributable to the ordinary equity holders of the parent
by the weighted average number of ordinary shares outstanding during the period.
Basic and Headline loss per share
From continuing operations (cents per share) (132.48) (18,224.00)
Basic loss per share was based on losses after tax of R6,962,600 (30 June 2017: R6,136,894) and weighted average
number of ordinary shares of 5 255 680 at 31 December 2017 (30 June 2017: 33 676).
AEP has not yet acquired a viable asset and therefore income earned is not indicative of the company`s future
performance capability.
Headline earnings reconciliation
There are no adjustments to basic earnings to arrive at headline earnings for the period ended 31 December 2017 and the
comparative period ended 30 June 2017.
2. Related parties
Destiny Corporation Management Services Proprietary Limited has been appointed as the Management Company of AEP
Energy Africa Limited and therefore has significant influence. The directors of Destiny Corporation Management Services
Proprietary Limited are also the directors of AEP Energy Africa Limited.
Management fees for the six months ended 31 December 2017 were R900,000 (30 June 2017: Nil).
26 February 2018
Designated Advisor
Questco Corporate Advisory Proprietary limited
Date: 26/02/2018 04:33:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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