Net cash outflow from operating activities (951) (2,032) (909) (1,773) INVESTMENT ACTIVITIES Development costs (181) - - - Loans to subsidiary operation - - (181) (245) Net cash outflow from investment activities (181) - (181) (245) FINANCING ACTIVITIES Continuing operations: Issue of ordinary share capital 848 1,939 848 1,939 Share issue costs (21) (122) (21) (122) Proceeds from short term loans 278 - 278 - Net cash inflow from financing activities 1,105 1,817 1,105 1,817 Net (decrease)/increase in cash and cash equivalents from continuing and total operations (27) (215) 15 (201) Exchange translation difference 42 14 - - Cash and cash equivalents at beginning of period 15 216 15 216 Cash and cash equivalents at end of period 30 15 30 15 Notes to the Financial Statements For the year ended 31 December 2020 1. General Information
The Company is a public limited company incorporated in the United Kingdom and its shares are listed on the AIM market of the London Stock Exchange. The Company is an investment company, investing primarily in natural resources and oil and gas projects. The registered office of the Company is as detailed in the Company Information on page 2.
The information included in this announcement was taken from the Company’s report and accounts, and therefore the references and page numbers may be incorrect. Shareholders are invited to read the Company’s report and accounts in their entirety, which can be viewed on its website. 2. Main accounting policies
The main accounting policies adopted in the preparation of these financial statements are described in the report and the complete accounts available on the Company’s website, www.admenergyplc.com. These policies have been applied consistently to all periods presented in the financial statements.
As in previous periods, the Group’s financial statements have been prepared in accordance with international accounting standards and with interpretations issued by the International Accounting Standards Board (IASB) and international financial reporting standards (IFRS) as adopted by the ‘European Union. The financial statements have been prepared using the valuation bases specified by IFRS for each type of asset, liability, income and expense. The valuation bases are described in more detail in the accounting policies below.
The current period covered by these financial statements is the year ended December 31, 2020. The comparative figures relate to the year ended December 31, 2019. The financial statements are presented in pounds sterling (GBP) which is the functional currency of Group.
An overview of the standards, amendments and interpretations of IFRS published but not yet entered into force and which have not been early adopted by the Group is presented below under the heading “Declaration of conformity”.
DECLARATION OF CONFORMITY
New standards, amendments and interpretations adopted by the Company
The company applied for the first time the following standards and amendments for its annual financial year beginning on January 1, 2020:. Prepayment features with negative compensation – Amendments to IFRS 9; . Annual improvements to IFRS 2015-2017 cycle; . Plan modifications, reductions or regulations – Amendments to IAS 19;
There are several standards, amendments to standards and interpretations which have been published by the IASB and which come into force for future years that the Group has not yet adopted. The most important of these are the following, all of which are in effect for the period beginning January 1, 2021: A number of new standards and amendments to standards and interpretations are in effect for annual periods beginning after January 1, 2020 and have not been applied in the preparation of these financial statements. None of these items is expected to have a material impact on the Company’s financial statements.
The changes listed above have had no impact on the amounts recognized in previous periods and are not expected to significantly affect current or future periods.
New standards and interpretations not yet adopted
A number of new standards and amendments to standards and interpretations are applicable for annual periods beginning after January 1, 2020 and have not been applied in the preparation of these financial statements. None of these items is expected to have a material impact on the Company’s financial statements.
There are no other IFRS or IFRIC interpretations which have not yet entered into force and which would be expected to have a significant impact on the Company.
3. Business continuity
As of December 31, 2020, the Group recorded a loss for the year of £ 6,904,000 and a net current liability of £ 3,392,000, after taking into account cash balances of £ 30,000.
Since the end of the year, the Group has raised additional equity of £ 1,220,000 and made £ 850,000 from the sale of investments to cover working capital requirements, and the Directors have prepared cash flow forecasts. for the period to September 30, 2022 in order to assess whether the use of the going concern basis for the preparation of the financial statements is appropriate. In the short term, the Group will need additional additional financing in order to meet its commitments as they fall due and to continue to operate as a company. Directors took into consideration the level and timing of the Group’s working capital requirements (which takes into account recent cost reductions and discretionary spending controls to preserve cash flow) and also considered the likelihood of successfully obtain funding to meet these needs. In particular, account has been taken of ongoing discussions regarding other third party investments and the extent to which these discussions are advanced in both short and long term funding. The Directors acknowledge that while they expect funding to be obtained on the basis of this valuation, as of the date of approval of these financial statements, no such funding has been unconditionally committed. Therefore, while the Directors reasonably expect that the Group will be able to raise the additional funding necessary to continue its operational existence for the foreseeable future, the uncertainty surrounding the ability and likely timing of obtaining such financings indicates that a significant uncertainty exists likely to cast significant doubt on the Group’s ability to continue operating. If such funding were not assured, the Group would have no other realistic alternative than to shut down its activities and prepare its financial statements on a going concern basis.
4. Profit and net asset value per share
Basic and diluted earnings per share are calculated by dividing the loss attributable to owners of the Group by the weighted average number of ordinary shares outstanding during the year.
2020 2019
GBP'000 GBP'000
Loss attributable to owners of the Group
- Continuing operations (6,904) (1,673)
Continuing and discontinued operations (6,904) (1,673)
2020 2019
Weighted average number of shares for calculating basic and fully diluted earnings per share 79,594,655 44,280,670
2020 2019
pence pence
Earnings per share:
Loss per share from continuing and total operations (8.7) (3.8)
The weighted average number of shares used to calculate diluted loss per share for 2020 and 2019 was the same as that used to calculate basic loss per share, as the effect of the exercise of outstanding stock options was anti-dilutive .
Net asset value per share ("NAV")
The basic NAV is calculated by dividing the loss total net assets attributable to the owners of the Group by the number
of ordinary shares in issue at the reporting date. The fully diluted NAV is calculated by adding the cost of exercising
any extant warrants and options to the total net assets and dividing the resulting total by the sum of the number of
shares in issue and the number of warrants and options extant at the reporting date.
2020 2019
GBP'000 GBP'000
Total net assets of the Group 11,002 14,930
Cost of exercise of warrants 1,715 1,261
Total net assets for calculation of fully diluted NAV 12,717 16,191
(MORE FOLLOWING) Dow Jones Newswires
September 30, 2021 10:45 am ET (2:45 pm GMT)
