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MINE RESTORATION INVESTMENTS LIMITED - Reviewed Provisional Annual Financial Results for the year ended 28 February 2018

Release Date: 20/06/2018 17:46
Code(s): MRI     PDF:  
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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

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