Fenikso Limited

Interim / Quarterly Report • Sep 26, 2023

National Storage Mechanism | Additional information

RNS Number : 5724N

Fenikso Limited

26 September 2023

26 September 2023

Fenikso Limited

("Fenikso" or "the Company")

Interim Results

Fenikso Limited ("Fenikso" or the "Company") (AQSE: FNK), the Cayman Islands enterprise company is pleased to announce its unaudited interim results (the "Interim Report") for the six months ended 30 June 2023 (the "Reporting Period").

PRINCIPAL ACTIVITY, FINANCIAL REVIEW, OPERATIONS AND ASSET SUMMARY REPORT

PRINCIPAL ACTIVITY

The Company is an exempted limited liability company incorporated and registered in the Cayman Islands on 3 December 2010.

Fenikso is the restructured holding company that used to be called Lekoil Limited. The Company holds one main asset which is a US$51.9 million loan made to Lekoil Oil & Gas Investments ("LOGI"), a wholly owned subsidiary of Lekoil Nigeria. The Company is an AQSE listed enterprise company.

FINANCIAL REVIEW

Financial overview and performance

The Company reported a loss of $224,000 for the six month period ended 30 June 2023.  

Net assets of the Company at the end of the Reporting Period were $19.3 million. Cash balances as at the end of the Reporting Period were $1.09 million.         

OPERATIONS REPORT AND ASSET SUMMARY

The principal business of the Company is to manage and ensure the full recovery of the LOGI Loan. The Company has received payments under the LOGI Loan as at the end of 30 June 2023 amounting to $2,615,472. A further $1,543,240 has since been received post 30 June 2023. The Board will continue to monitor the compliance with the terms and conditions of the LOGI Loan. As at the end of June 2023 LOGI had complied with all conditions of the Settlement Deed save for the cancellation of certain shares in the Company owned by Lekoil Nigeria, Lekan Akinyami and Samuel Olutu. The total shares that should have been cancelled are 107,658,847 ordinary shares. On 2 August 2023 the Company announced the surrender of 106,443,637 ordinary shares held by Lekoil Nigeria to the Company for nil consideration had been completed. The Company has agreed to extend the period during which the remaining 1,215,210 ordinary shares that are required to be surrendered by Lekoil Nigeria in accordance with the terms of the Settlement Deed until no later than 15 December 2023.

Outlook

The Company intends to repay all creditors as well as the first instalment of the Savanah Energy loan repayment before the end of the year. Once these steps have been taken the Company will look to build its cash position before deciding how best to deploy the cash it builds up.

This report was approved by the board on 22 September 2023 and signed on its behalf.

Thomas Richardson

Chairman

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

For further information, please visit https://feniksoplc.com or contact:

Fenikso Limited Thomas Richardson, Chairman	[email protected]
First Sentinel Corporate Finance Ltd (AQSE Corporate Adviser) Brian Stockbridge	+44 20 3855 5551

Statement of Comprehensive Income

For the six months ended 30 June 2023

			Unaudited 30 June 2023 $000	Unaudited 30 June 2022 $000	Audited 31 December 2022 $000
OTHER OPERATING INCOME
Cost of sales			-	-	-
Gross (loss)			-	-	-
Fair value adjustment of receivables			-	-	(20,710)
Fair value adjustment borrowings			-	-	6,839
Administrative expenses
Recurring administrative costs			(224)	(944)	(1,526)
OPERATING LOSS			(224)	(944)	(15,397)
Finance income			-	-	-
Finance cost			-	-	-
LOSS FROM CONTINUING ACTIVITIES BEFORE TAXATION			(224)	(944)	(15,397)
Tax expense			-	-	-
LOSS FOR THE PERIOD ATTRIBUTABLE TO THE EQUITY HOLDERS			(224)	(944)	(15,397)
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO THE EQUITY HOLDERS			(224)	(944)	(15,397)
Loss per share - basic			(0.0003)	(0.001)	(0.02)
Loss per share - diluted			(0.0003)	(0.001)	(0.02)

Statement of Financial Position

At 30 June 2023

	Unaudited 30 June 2023 $000	Unaudited 30 June 2022 $000	Audited 31 December 2022 $000
CURRENT ASSETS
Trade and other receivables due within one year	2,474	-	2,114
Cash and cash equivalents	1,093	547	208
TOTAL CURRENT ASSETS	3,567	547	2,322
Trade and other receivables due after one year	26,120	51,919	29,095
TOTAL ASSETS	29,687	52,466	31,417
EQUITY
Share capital	30	38	30
Share premium account	264,729	265,500	264,729
Retained earnings	(245,465)	(230,788)	(245,241)
TOTAL EQUITY	19,294	34,750	19,518
CURRENT LIABILITIES
Trade and other payables due within one year	2,995	1,459	4,501
TOTAL CURRENT LIABILITIES	2,995	1,459	4,501
Trade and other payables due after one year	7,398	16,257	7,398
TOTAL LIABILITIES	10,393	17,716	11,899
TOTAL EQUITY AND LIABILITIES	29,687	52,466	31,417

Statement of Changes in Equity

For the six months ended 30 June 2023

	Share capital	Share premium	Retained losses	Total shareholder equity
	$000	$000	$000	$000
Balance (restated) as at 31 December 2021	27	264,004	(229,844)	34,187
Loss for the period	-	-	(944)	(944)
Total comprehensive income for the period	27	264,004	(230,788)	33,243
Issue of ordinary shares	11	1,496	-	1,507
Total transactions with owners	11	1,496	-	1,507
Balance at 30 June 2022	38	265,500	(230,788)	34,750
Loss for the period	-	-	(14,453)	(14,453)
Total comprehensive income for the period	38	265,500	(245,241)	20,297
Issue of ordinary shares	2	367	-	369
Shares cancelled	(10)	(1,138)	-	(1,148)
Total transactions with owners	(8)	(771)	-	(779)
Balance at 31 December 2022	30	264,729	(245,241)	19,518
Loss for the period	-	-	(224)	(224)
Total comprehensive income for the period	30	264,729	(245,465)	19,294
Issue of ordinary shares	-	-	-	-
Total transactions with owners	-	-	-	-
Balance at 30 June 2023	30	264,729	(245,465)	19,294

Statement of Cashflows

For the six months ended 30 June 2023

	Unaudited 6 months ended 30 June 2023	Unaudited 6 months ended 30 June 2022	Audited Year ended 31 December 2022
	$000	$000	$000
Operating activities
Loss before taxation	(224)	(944)	(15,397)
Decrease in trade and other receivables	2,615	-	20,710
(Decrease) / increase in trade and other payables	(1,506)	1,714	(5,155)
Net cash used in operating activities	885	770	158
Cash Flows from Financing Activities
Loans received	-	1,096	-
Loan repayment via issue of shares	-	(1,369)	-
Net Cash generated from Financing Activities	-	(273)	-
Increase in cash and cash equivalents in period	885	497	158
Cash and cash equivalents at beginning of period	208	50	50
Cash and cash equivalents at end of period	1,093	547	208

Notes to the Interim Report

For the six months ended 30 June 2023

1.            GENERAL INFORMATION

Fenikso Limited ("the Company") is a company incorporated and domiciled in the Cayman Islands. The address of the registered office is 190 Elgin Avenue, George Town, Grand Cayman KY1-9001, Cayman Islands.

The Company's shares are traded on the Aquis Stock Exchange under symbol FNK and ISIN number KYG5462G1073.

2              BASIS OF PREPARATION

These condensed interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements of the Company for the year ended 31 December 2022 which were prepared in accordance with EU-endorsed International Financial Reporting Standards ('IFRSs'), IFRIC interpretations as adopted by the EU.

The financial statements have been prepared under the historical cost convention except for financial instruments and share based payments which are measured at fair value. Monetary amounts in these financial statements are rounded to the nearest $000.

The interim financial statements for the six months ended 30 June 2023 are unaudited and have not been reviewed by the Company's auditors, Bright Grahame Murray. The comparative interim figures for the six months ended 30 June 2022 are also unaudited and are restated to reflect the adjustments made in the audited financial statements for the year ended 31 December 2022 to the prior year comparatives for the year ended 31 December 2021.

The accounting policies applied by the Company in the preparation of these condensed consolidated interim financial statements are the same as those applied by the Company in its financial statements for the year ended 31 December 2022.

3.            EARNINGS PER SHARE

The basic loss per share is derived by dividing the loss for the period attributable to ordinary shareholders by the weighted average number of shares in issue.

	Unaudited 30 June 2023	Unaudited 30 June 2022	Audited 31 December 2022
	$000	$000	$000
Loss for the period	(224)	(944)	(15,397)
Weighted average number of shares	599,396	673,394	736,567
Basic earnings per share	(0.0003)	(0.001)	(0.02)

4.            TRADE AND OTHER RECEIVABLES

	Unaudited 30 June 2023	Unaudited 30 June 2022	Audited 31 December 2022
	$000	$000	$000
Current - falling due within one year
Trade receivables	-	-	-
Other receivables	2,474	-	2,114
	2,474	-	2,114
Non current - falling due after one year
Other receivable	26,120	51,919	29,095
Total	28,594	51,919	31,209

Under the settlement deed of 7 December 2022, the Company granted a new loan of approximately $51,919,467 to Lekoil Oil and Gas Investments Limited ("LOGI") (the "LOGI Loan") in consideration for the transfer of certain loans granted to Lekoil Nigeria and its related entities to LOGI, the release of security related to such loans and the waiver of any repayment of amounts due under such loans. Accordingly, the balance of intercompany receivable at 31 December 2022 was $51,919,467 with residual balances written off to reserves. The Company carried out an assessment of the value of the amounts due at 31 December 2022 on a discounted basis using a rate of 16.821% to effect a current market value of the loan of $31,209,408. The difference of $20,710,059 was recognised in the statement of comprehensive income. The loan is being repaid by 8.653% of the aggregate proceeds of the sales received from Shell Western in respect of each lifting of crude oil by LOGI. During the period to 30 June 2023, the Company has announced it has received a total of $2,615,472 as partial repayment of the loan of US$51,919,467. A further $1,543,240 has since been received post 30 June 2023.

5.            TRADE AND OTHER PAYABLES

	Unaudited 30 June 2023	Unaudited 30 June 2022	Audited 31 December 2022
	$000	$000	$000
Current - falling due within one year
Trade payables	542	737	1,494
Other payables	2,020	137	2,020
Accruals	433	585	987
	2,995	1,459	4,501
Non current - falling due after one year
Other payables	7,398	16,257	7,398
Total	10,393	17,716	11,899

Following the Settlement Deed, the Company entered into a loan agreement with Savannah Energy pursuant to which the Company agreed to pay Savannah Energy certain upfront payments together with 25% of all amounts received by the Company from LOGI pursuant to the LOGI Loan, subject to a maximum total payment of approximately $16,256,159. The Company assessed the value of the loan amount at 31 December 2022 on a discounted basis using a rate of 16.821% to effect a current market value of $9,417,555. The difference of $6,838,604 was recognised in the statement of comprehensive income.

6.            APPROVAL OF INTERIM FINANCIAL STATEMENTS

The Condensed interim financial statements were approved by the Board of Directors on 25 September 2023. A copy can be obtained on the Company's website at https://feniksoplc.com

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