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Reviewed Provisional Annual Financial Results for the year ended 28 February 2018
Mine Restoration Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/004821/06)
Share Code: MRI
ISIN Code: ZAE000164562
("MRI" or the “Company")
REVIEWED PROVISIONAL CONDENSED CONSOLIDATED ANNUAL FINANCIAL
RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2018
The Board of Directors (the ”Board”) of MRI are pleased to announce
the reviewed provisional condensed consolidated annual financial
results for the year ended 28 February 2018.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Reviewed Audited 12-
12-months months to
to February February
2018 2017
R’000 R’000
Revenue - 187
Other income - 646
Operating expenses (2 840) (1 299)
Operating loss (2 840) (466)
Investment revenue - 567
Finance cost (843) (1 088)
Loss before taxation (3 683) (987)
Taxation - (9)
Loss for the period (3 683) (996)
Total comprehensive loss (3 683) (996)
(Loss) attributable to:
Owners of the parent (3 681) (1 037)
Non-controlling interests (2) 41
Total comprehensive loss
attributable to:
Equity holders (3 681) (1 037)
Non-controlling interests (2) 41
Basic and Diluted loss per
share (0.43) (0.12)
Weighted average number of
shares in issue (‘000) 863 053 863 053
Diluted weighted average
number of shares in issue
(‘000) 863 053 863 053
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Reviewed Audited 28
28 February
February 2017
2018
R’000 R’000
Assets
Current Assets
Trade and other receivables 41 282
Cash and cash equivalents 51 29
92 311
Total Assets 92 311
Equity and Liabilities
Equity
Amount attributable to equity (7 880) (4 199)
holders
Non-Controlling Interest (66) (64)
(7 946) (4 263)
Liabilities
Current Liabilities
Other financial liabilities 6 994 3 324
Trade and other payables 1 044 1 250
8 038 4 574
Total Equity and Liabilities 92 311
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital Reserve Equity due Accumulated Amount Non- Total
capital Reserve for to change loss attributable Controlling equity
capital in to Equity Interest
based ownership Holders
payments
R’000 R’000 R’000 R’000 R’000 R’000 R’000
Balance at 28
February 2016 85 020 5 000 559 (2 459) (91 282) (3 162) (105) (3 267)
Total
comprehensive -
loss for the
period - - - (1 037) (1 037) 41 (996)
Share-based -
payment charges
reversed - - (559) 559 - - -
Balance at 28
February 2017 85 020 5 000 - (2 459) (91 760) (4 199) (64) (4 263)
Total
comprehensive
loss for the
period - - - (3 681) (3 681) (2) (3 683)
Balance at 28
FEBRUARY 2018 85 020 5 000 - (2 459) (95 441) (7 880) (66) (7 946)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Reviewed Audited
12-months 12-months
to to
February February
2018 2017
R’000 R’000
Cash flows from operating
activities
Operating loss (2 806) (313)
Interest revenue - 567
Finance cost (843) (1 088)
Net cash from operating
activities (3 649) (834)
Cash flows from investing
activities
Sale of other financial assets - 9 772
Cash flows from financing
activities
(Repayment of) / Proceeds from
other financial liabilities 3 671 (9 343)
Total cash movement for the
period 22 (405)
Cash and cash equivalents at the
beginning of the period 29 434
Cash and cash equivalents at end
of the period 51 29
COMMENTARY
1. BASIS OF PREPARATION
The reviewed provisional condensed annual financial results have
been prepared in accordance with the recognition and measurement
principles of International Financial Reporting Standards (“IFRS”)
and the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Pronouncements as
issued by the Financial Reporting Standards Council, and as a
minimum, contains the information required by IAS 34: Interim
Financial Reporting and comply with the JSE Limited’s Listings
Requirements (“Listings Requirements”) and the Companies Act of
South Africa, 2008.
The directors take full responsibility for the preparation of this
report and that the financial information has been correctly
extracted from the underlying financial statements.
The financial results were prepared under the supervision of the
Financial Director, Norman Preston
2. ACCOUNTING POLICIES
The accounting policies applied in the preparation of these
consolidated reviewed financial results are in terms of IFRS and
are consistent with those in the preparation of the audited
financial results of the Company for the year ended 28 February
2017.
3. FINANCIAL RESULTS AND FUTURE PROSPECTS
After closing down the coal operation, the Company focused on
eliminating all corporate costs and maintaining the Company as a
cash shell. The Board is continuing its discussions regarding the
proposed re-capitalisation of the Company, the terms of which will
be announced as soon as these have been agreed. Certain creditors
subordinated their claims and provided support in order to maintain
the Company's solvency, liquidity and going concern.
4. HEADLINE LOSS PER SHARE (“HLPS”)
Reconciliation of losses to headline losses attributable to equity
holders of the parent:
Reviewed Audited
12-months to 12-months to
February February
2018 2017
Loss per share (cents) (0.43) (0.12)
Diluted loss per share
(cents) (0.43) (0.12)
Headline loss per share
(cents) (0.43) (0.12)
Diluted headline loss per
share (0.43) (0.12)
HLPS Calculation
Loss for the period (3 681) (1 037)
Headline (loss)/earnings (3 681) (1 037)
Weighted average number of
shares in issue (‘000) 863 053 863 053
Actual number of shares in
issue (‘000) 863 053 863 053
5. CHANGES IN SHARE CAPITAL
There were no changes in share capital during 2017 or 2018.
6. EVENTS AFTER THE END OF THE REPORTING PERIOD
Investors have subordinated their claims and provided support in
order to maintain the company’s solvency and going concern.
7. CHANGES TO THE BOARD
Michael Miller was appointed Chief Executive Officer on 28 April
2017.
8. GOING CONCERN
The directors believe that the company has adequate financial
resources to continue in operation for the foreseeable future and
accordingly the consolidated financial statements have been
prepared on a going concern basis. The directors have satisfied
themselves that the company is in a position to continue as a going
concern and that it has access to sufficient borrowing facilities
to meet its foreseeable cash requirements. The directors are not
aware of any new material changes that may adversely impact the
company.
The Gamsy Family Trust was secured as an investor in MRI, and the
Trust provided a working capital facility to fund operations and
transaction costs. Both the Gamsy Family Trust and Growth Equities
loans were subordinated to maintain the liquidity and solvency
position of the company.
We draw attention to the fact that as at 28 February 2018, the
group had accumulated losses of R 95.4 million and that the
company's total liabilities exceed its assets by R 7.9 million.
There is still material uncertainty whether the group can continue
as a going concern as the group currently has no operations and is
dependent on the Gamsy Family Trust’s financing to settle its other
creditors as they become due and payable in the ordinary cause of
its business.
9. DIVIDENDS
No dividend was declared for the year ended 28 FEBRUARY 2018 (2017:
Nil).
10. AUDITOR’S OPINION
Grant Thornton, the Group’s independent auditor, has reviewed these
condensed provisional consolidated financial results for the year
ended 28 February 2018 and have issued a modified review report.
The auditor’s report contained the following modification paragraph
relating to a material uncertainty related to the Company’s going
concern:
“Without qualifying our conclusion, we draw attention to the note 8
to the condensed consolidated financial results which indicates
that the Group has incurred accumulated losses of R95.4 million for
the year ended 28 February 2018. The group currently does not have
operations and has secured angel investors who provide the Group
with a working capital facility to fund operations and transaction
costs for the next 12 months. As stated in Note 8, these events or
conditions, along with other matters as set forth in Note 8,
indicate that a material uncertainty exists that may cast
significant doubt on the Group’s ability to continue as a going
concern.”
A copy of the auditor's review report is available for inspection
at the Company's registered office.
20 June 2018
Johannesburg
R Tait MJ Miller
Non-executive Chairman Chief Executive Officer
CORPORATE INFORMATION
Postal address: PO Box 1823, Bedfordview, 2008
Registered and Physical address: 1St Floor St James Office Park,
76 Concorde Road East, Bedfordview, Gauteng, 2008
Tel no:+27 (0) 11 036 3100
Fax no:+27 (0) 86 654 6818
Web: www.minerestoration.co.za
Board of Directors: Q George*, C Roed*, R Tait# (Chairman), S
Caddy*, N Preston (FD), M Miller (CEO), A Collins*.
(#Non-Executive, * Independent Non-Executive)
Company Secretary: Neil Esterhuysen & Associates Inc
Transfer Secretaries: Computershare Investor Services (Pty)
Limited, 2nd Floor, Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196, PO Box 61051, Marshalltown 2107
Auditor: Grant Thornton Johannesburg Partnership
Corporate and Designated Adviser: Questco Corporate Advisory
Proprietary Limited
Date: 20/06/2018 05:46:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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