BWA Group plc

Earnings Release • Sep 30, 2021

National Storage Mechanism | Additional information

BWA Group PLC - Half-year Report

PR Newswire

London, September 30

	30 September 2021

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

BWA Group PLC

(“BWA” or the “Company”)     

Half-Yearly Results for the Six Months to 30 June 2021

BWA Group plc [AQSE: BWAP], which has mineral exploration licences split between Cameroon and Canada at various stages of development and is quoted on London’s AQSE Growth Market (formerly NEX), announces its unaudited financial results for the six-month period to 30 June 2021.

Chairman’s Statement

Dear Shareholder

The Board presents the results for the six months ended 30 June 2021.  The Company has continued to invest in the rutile sands project in Cameroon through our 90 per cent owned subsidiary BWA Resources Cameroon Limited (“BWARC”).  Activity in the other 100 per cent subsidiary company in Canada, Kings of the North Corporation (“KOTN”), has been limited to getting the licences in the two remaining claim areas, Winterhouse and Isoukustouc, transferred into the registered ownership of KOTN with the Canadian government mining registry and ensuring that all licence fees are paid and the claims in good order.

BWARC has carried out further exploration work on the two claims at Nkoteng and Dehane to which it has been granted exploration rights.  The initial results from the first surveys have been announced to the market and are published on the Company website, www.bwagroupplc.com/announcements.  

The results are sufficiently encouraging for further, more detailed, work in Cameroon in the form of pitting over a wider area to try to establish the area of potentially viable extraction to be carried out.  The results of this exploration work are presently being analysed by consultant metallurgists and the results are expected to be announced and published on the website in the next few weeks.

BWARC has applied for three further claim areas adjacent to Dehane and Nkoteng and the applications are being processed by the Cameroon government. 

During the period under review, BWA acquired a further shareholding in St-Georges Eco-Mining Corp (“St Georges”) from KOTN and the proceeds from realising part of its portfolio of investments has provided funds for the development of activities in Canada, Cameroon and the UK. 

Litigation in the UK to recover the unpaid consideration for the Loan Notes issued at completion of the acquisition of KOTN continues with a further hearing scheduled for early October.  In Canada we continue to consult with our legal advisers regarding potential claims against St Georges, its directors, staff and others.  At 30 June 2021 the balance of the purchase consideration for the St Georges shares of £473,000 remained outstanding and was included in creditors, but this forms part of the disputed amount.

The Board continue to show their confidence in the future plans of the Company by capitalising one-half of their fees into new Ordinary Shares, resulting in 3,750,000 Ordinary Shares being issued during the period at 0.6p per share.

A further review will be published when the exploration results from the two Cameroon sites are available. 

Richard Battersby, Chairman

The Directors of BWA are responsible for the contents of this announcement.  The Company’s condensed set of financial statements are set out below.

For further information: 

BWA Group PLC Richard Battersby Chairman	+44 7836 238172 [email protected]
Allenby Capital Limited Corporate Adviser  Nick Harriss/Freddie Wooding	+44 20 3328 5656

INCOME STATEMENT

	Notes	6 months ended		6 months ended		Year ended
		30 June 2021		30 June 2020		31 December 2020
		Unaudited		Unaudited		Audited
		£		£		£
Administrative expenses		-159,764		-206,782		-242,788
		-159,764		-206,782		-242,788
Other operating income		120,000		120,000		240,000
Gain on disposal of investments		243,574		-		-
Loss on revaluation of investments		-144,061		-2,799,911		-3,594,217
Operating profit/(loss)		59,749		-2,886,693		-3,597,005
Interest receivable and similar income		2		11		11
		59,751		-2,886,682		-3,596,994
Interest payable and similar expenses		-21,061		-20,955		-42,140
Profit/(loss) on ordinary activities
before and after taxation and retained
for the period		38,690		-2,907,637		-3,639,134
Earnings/(loss) per ordinary share:
Basic (pence)	2	0.01		-1.02		-1.24
Diluted (pence)	2	0.00		-1.02		-1.24

All amounts relate to continuing activities.

STATEMENT OF OTHER COMPREHENSIVE INCOME

	Notes	6 months ended		6 months ended		Year ended
		30 June 2021		30 June 2020		31 December 2020
		Unaudited (£)		Unaudited (£)		Audited (£)
Profit/(loss) for the period		38,690		-2,907,637		-3,639,134
Other comprehensive income		-		-		-
Total comprehensive profit/(loss)
for the period		38,690		-2,907,637		-3,639,134

BALANCE SHEET

	Notes	6 months ended		6 months ended		Year ended
		30 June 2021		30 June 2020		31 December 2020
		Unaudited (£)		Unaudited (£)		Audited (£)
Profit/(loss) for the period		38,690		-2,907,637		-3,639,134
Other comprehensive income		-		-		-
Total comprehensive profit/(loss)
for the period		38,690		-2,907,637		-3,639,134

CASH FLOW STATEMENT

	Notes	6 months ended		6 months ended		Year ended
		30 June 2021		30 June 2020		31 December 2020
		Unaudited		Unaudited		Audited
		£		£		£
Cash flows from operating activities		-198,631		-85,235		-112,050
Cash flows from investing activities
Purchase of fixed asset investments		-321,785		-		-8
Sale of fixed asset investments		761,497		-		-
Loans to subsidiary undertakings		-140,449		-38,034		-56,543
Interest received		2		11		11
Net cash from investing activities		299,265		-38,023		-56,540
Cash flows from financing activities
New loans in period		-		50,000		91,000
Loans repaid		-		-46,500		-46,500
Loan note proceeds received		-		12,500		12,500
Shares issued in period		-		100,000		100,000
Amount repaid to directors		-		-3,000		-3,000
Net cash from financing activities		-		113,000		154,000
Increase/(decrease) in cash and
cash equivalents		100,634		-10,258		-14,590
Cash and cash equivalents at
beginning of period		1,383		15,973		15,973
Cash and cash equivalents at end of period		102,017		5,715		1,383

1.        Status of these accounts

The interim accounts for the period from 1 January 2021 to 30 June 2021 are unaudited. The financial information set out in this statement does not constitute statutory accounts within the meaning of the Companies Act 2006.

2.        Earnings per ordinary share

Basic and diluted earnings per share figures are based on the following profits / (losses) and numbers of shares:

	6 months ended	6 months ended	Year ended
	30 June 2021	30 June 2020	31 December 2020
	Unaudited	Unaudited	Audited
Profit/(loss) before tax	£38,690	-£2,907,637	-£3,639,134
Weighted average number of shares for
the purpose of basic earnings per share	307,803,499	285,213,848	294,367,968
Effect of dilutive securities	981,391,600	-	-
Weighted average number of shares for
the purpose of diluted earnings per share	1,289,195,099	285,213,848	294,367,968

3.        Share capital

	At	At	At
	30 June 2021	30 June 2020	31 December 2020
	Unaudited	Unaudited	Audited
	£	£	£
Allotted, called up and fully paid
309,112,891 ordinary shares of 0.5p
(30 June 2020: 298,285,065;
31 December 2020: 305,362,891)	1,545,564	1,491,425	1,526,814

4.        Reserves

		Capital
	Share	redemption	Other	Equity	Retained
	premium	reserve	reserve	reserve	Earnings	Total
	£	£	£	£	£	£
At 1 January 2020	12,663	288,625	293,493	4,711,958	-1,474,196	3,832,543
Loss for the period	-	-	-	-	-2,907,637	-2,907,637
Loan note interest	-	-	-	14,968	-	14,968
Reserves transfer	-	-	-2,799,911	-	2,799,911	-
At 30 June 2020	12,663	288,625	-2,506,418	4,726,926	-1,581,922	939,874
Loss for the period	-	-	-	-	-731,497	-731,497
Issue of share capital	2,945	-	-	-	-	2,945
Loan note interest	-	-	-	15,132	-	15,132
Reserves transfer	-	-	-794,306	-	794,306	-
At 31 December 2020	15,608	288,625	-3,300,724	4,742,058	-1,519,113	226,454
Profit for the period	-	-	-	-	38,690	38,690
Issue of share capital	3,750	-	-	-	-	3,750
Loan note interest	-	-	-	14,968	-	14,968
Reserves transfer	-	-	-144,061	-	144,061	-
At 30 June 2021	19,358	288,625	-3,444,785	4,757,026	-1,336,362	283,862

5.        Valuation of Investments

The whole of the Company's investment in Cameroon, including loans made to BWA Resources (UK) Limited, is carried in the balance sheet at £341,703. The Company's investment in Kings of the North Corp (‘KOTN’) is valued at £1,418,000. The valuation of unlisted investments requires the Directors to make judgements, estimates and assumptions that are believed to be reasonable under the circumstances, but which affect the reported fair value of those investments. The recoverability of the investments in Cameroon and KOTN is dependent on the future profitability of the underlying businesses. The Directors have reviewed the current position and, after taking into account a number of factors, believe that the valuations at 30 June 2021 remain appropriate.