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DJ Hot Rocks Investments PLC Final Results

 
TIDMHRIP 
 
HOT ROCKS INVESTMENTS PLC 
                        ("Hot Rocks" or the "Company') 
 
          Audited Financial Results for the Year Ended 31 March 2016 
 
                             CHAIRMAN'S STATEMENT 
 
Dear Shareholders 
 
I hereby present the financial results for the Company for the year ended 31 
March 2016.  The Company is an active investor in natural resources companies 
and, whilst it has been a difficult year generally for the sector, tough times 
do provide our Company with new opportunities to invest and diversify our 
portfolio of interests. 
 
The Company made a pre-tax profit of GBP8,129 for the year, compared to a pre-tax 
loss of GBP496,541 in the prior year. The Company will not be paying a dividend 
at this stage. 
 
Cash and cash equivalents as at the year end of 31 March 2016 were GBP13,705 
(2015 - GBP39,984). 
 
During the year our investee company Taoudeni Resources Limited, a West African 
copper and gold explorer, was acquired by another investee company Goldcrest 
Resources plc, as a result increasing our position in Goldcrest. This was for 
an initial consideration of 193,496,625 shares in Goldcrest Resources plc at a 
value of 0.05p per share.  As part of the share purchase agreement, the company 
is also entitled to a deferred consideration of 320,839,661 shares and 
43,220,791 warrants in Goldcrest, which would be valued based on the market 
value of the Goldcrest shares at the point of issuance. The deferred 
consideration has currently been recognised in these financial statements at a 
fair value of GBP2, as it is currently considered unlikely that the conditions 
for issuance will be met. 
 
Also, Upland Resources Limited in which we held 3.86million shares was admitted 
to the main market by way of a Standard Listing raising GBP1.3m at a 40% premium 
to our entry level. The shares have since traded at more than 1.5p and we have 
disposed of some of our holding. 
 
We hold stakes in the following entities: 
 
  * Brazil Tungsten Holdings Limited 
  * Copper Bay plc 
  * Elephant Oil Limited 
  * Goldcrest Resources plc (ISDX:GCRP) 
  * Impact Oil & Gas Limited 
  * Mafula Energy Limited 
  * MedGold Resources Corp (TSXV:MED) 
  * Minergy Limited 
  * New Horizon Oil & Gas Limited 
  * Onzima Ventures plc (AIM:ONZ) 
  * Prospex Oil & Gas plc (AIM:PXOG) 
  * Rift Resources Limited 
  * Royal Road Minerals (previous Tigris Resources) (TSXV:RYR) 
  * Upland Resources Limited (AIM:UPL) 
 
The Board of Directors will continue to introduce further equity positions to 
the Company to enable additional diversification of the portfolio. 
 
Brian Rowbotham 
 
Non-Executive Chairman 
 
31 August 2016 
 
The Directors of the issuer are responsible for the content of this 
announcement. 
 
For further information please contact: 
 
Hot Rocks Investments plc  Gavin Burnell: 01732 366561 
 
Peterhouse Corporate Finance Limited  Guy Miller: 020 7220 9796 
 
HOT ROCKS INVESTMENTS PLC 
 
STRATEGIC REPORT 
YEAR ENDED 31 MARCH 2016 
 
The Directors of the Company present their Strategic Report on the Company for 
the year ended 31 March 2016. 
 
Principal Activities and Review of the Business 
 
The principal activity of the Company is to invest in companies, or assets, in 
the natural resources sector. The Company has continued in this activity, 
managing the investments, as detailed in the Chairman's Statement. 
 
The future developments are discussed in the Chairman's Statement. 
 
Financial Review 
 
The profit for this year before taxation was GBP8,129 (2015 loss before taxation 
- GBP496,541). 
 
Cash in the bank at the end of March 2016 was GBP13,705 (2015 - GBP39,984). 
 
The Directors consider the results for the year to be satisfactory. 
 
Key Performance Indictors ("KPI's") 
 
The Directors consider the following to be the KPIs of the business: 
 
                                                           2016       2015           % 
 
                                                                             Increase/ 
 
                                                                            (Decrease) 
 
Valuation of available for sale investments             722,794    780,083        (7%) 
 
Cash                                                     13,705     39,984       (66%) 
 
The company performed in line with expectations. 
 
Principal Risks and Uncertainties 
 
The principal risks and uncertainties lie in the investments the Company holds. 
The nature of the natural resource sector means that returns are uncertain and 
resources may be unviable to extract.  The Directors seek to mitigate this risk 
by monitoring the performance of the companies in which it holds investments so 
they can take action accordingly. 
 
Given the nature of the business and activity of the Company, the Directors 
believe that the Company is exposed to the following risks: 
 
Liquidity risk 
 
The Company's continued future operations depend on the ability to hold 
sufficient working capital to be able to meet its financial obligations.  The 
Directors are confident that there is adequate funding to finance future 
immediate working capital requirements. 
 
Financial Risk Management 
 
The Company's principal financial instruments comprise available-for-sale 
financial instruments, other receivables, other payables and cash and cash 
equivalents. No bank loans or other financing arrangements have been required. 
No borrowings have been required to finance working capital. Therefore the 
Company's exposure to credit risk, liquidity risk and market risk is not deemed 
significant. 
 
The Directors present their report and the audited Financial Statements for the 
year ended 31 March 2016. 
 
Results and Dividends 
 
The profit for this year after taxation was GBP8,129 (2015 loss after taxation - 
GBP512,958). 
 
The Directors do not recommend the payment of a dividend (2015 - nil). 
 
Directors and Directors' Interests 
 
The Directors who held office during the period to the date of approval of 
these Financial Statements had the following beneficial interests in the 
ordinary shares of the Company: 
 
                                       Ordinary     Warrants     Ordinary     Warrants 
                                         shares  interest at       shares  interest at 
                                    interest at       end of  interest at     start of 
                                         end of       period     start of       period 
                                         period          No.   period No.          No. 
                                            No. 
 
Gavin J Burnell                      29,290,000    9,027,500   29,290,000    9,027,500 
 
Brian Rowbotham                       4,200,000      500,000    4,200,000      500,000 
 
Charles J Vaughan                     2,150,000      500,000    2,150,000      500,000 
 
Events after the Reporting Period 
 
The events after the reporting date are set out in Note 18 to the Financial 
Statements. 
 
Supplier Payment Policy 
 
Whilst there is no formal code or standard, it is Company policy to settle 
terms of payment with creditors when agreeing the terms of each transaction and 
to abide by the creditors' terms of payment.  There are no creditors subject to 
special arrangements outside of suppliers' terms and conditions. 
 
Provision of Information to Auditor 
 
The Directors at the time when this Directors' Report is approved have 
confirmed that: 
 
  * so far as each Director is aware, there is no relevant audit information of 
    which the Company's auditor is unaware, and 
  * each Director has taken all the steps that ought to have been taken as 
    Directors in order to be aware of any information needed by the Company's 
    auditor in connection with preparing its report and to establish that the 
    Company's auditor is aware of that information. 
 
Independent Auditor 
 
PKF Littlejohn LLP has signified their willingness to continue in office as 
auditor. 
 
The Directors are responsible for preparing the Annual Report and the Financial 
Statements in accordance with applicable law and regulations. 
 
Company law requires the Directors to prepare financial statements for each 
financial year.  Under that law the Directors have elected to prepare the 
Financial Statements in accordance with International Financial Reporting 
Standards (IFRSs) as adopted by the European Union.  Under company law the 
Directors must not approve the Financial Statements unless they are satisfied 
that they give a true and fair view of the state of affairs of the Company and 
of the profit or loss for that period.  In preparing these financial statements 
the Directors are required to: 
 
  * select suitable accounting policies and then apply them consistently; 
  * make judgments and accounting estimates that are reasonable and prudent; 
  * state whether applicable IFRSs as adopted by the European Union have been 
    followed, subject to any material departures disclosed and explained in the 
    Financial Statements; and 
  * prepare the financial statements on a going concern basis unless it is 
    inappropriate to presume that the Company will continue in business. 
 
The Directors are responsible for keeping adequate accounting records that are 
sufficient to show and explain the Company's transactions and disclose with 
reasonable accuracy at any time the financial position of the Company and 
enable them to ensure that the Financial Statements comply with the Companies 
Act 2006.  They are also responsible for safeguarding the assets of the Company 
and hence for taking reasonable steps for the prevention and detection of fraud 
and other irregularities. 
 
The Directors are responsible for the maintenance and integrity of the 
company's website and legislation in the United Kingdom governing the 
preparation and dissemination of financial statements which may differ from 
legislation in other jurisdictions. 
 
Approved by the Board on 31 August 2016 and signed on its behalf by: 
 
Gavin J Burnell 
 
Director 
 
HOT ROCKS INVESTMENTS PLC 
 
STATEMENT OF COMPREHENSIVE INCOME 

(MORE TO FOLLOW) Dow Jones Newswires

September 01, 2016 02:45 ET (06:45 GMT)

DJ Hot Rocks Investments PLC Final Results -2-

YEAR ENDED 31 MARCH 2016 
 
                                                                     2016       2015 
 
Continuing Operations                                                   GBP          GBP 
 
Revenue                                                                 -          - 
 
Operating expenses                                               (41,049)   (98,182) 
 
Impairment of available-for-sale financial assets                       -  (402,651) 
 
Other gains - sale of available-for-sale financial                 46,136        482 
assets 
 
                                                                  _______    _______ 
 
Operating Profit/(Loss)                                             5,087  (500,351) 
 
 
Finance income                                                      3,042      4,002 
 
Finance costs                                                           -      (192) 
 
                                                                  _______    _______ 
 
Profit/(Loss) before Income Tax                                     8,129  (496,541) 
 
Income tax expense                                                      -   (16,417) 
 
                                                                  _______    _______ 
 
Profit/(Loss) for the Year                                          8,129  (512,958) 
 
                                                                  _______    _______ 
 
Other Comprehensive Income 
 
Items that may be Reclassified Subsequently to 
 Profit or Loss 
 
Reclassification of cumulative gains on                          (19,014)    (3,021) 
available-for-sale 
  financial asset due to disposal 
 
Fair value change in value on available-for-sale                 (71,445)  (154,628) 
financial assets 
 
                                                                  _______    _______ 
 
Total Comprehensive Income for the Year                          (82,330)  (670,607) 
 
                                                                  _______    _______ 
 
Earnings Per Share - Basic and Diluted (Pence)                     (0.00)     (0.00) 
 
                                                                  _______    _______ 
 
HOT ROCKS INVESTMENTS PLC 
 
STATEMENT OF FINANCIAL POSITION 
AT 31 MARCH 2016 
 
                                                               As at 31      As at 
                                                                  March   31 March 
                                                                   2016       2015 
 
                                                                      GBP          GBP 
 
Assets 
 
Non-Current Assets 
 
Available-for-sale financial assets                             722,794    780,083 
 
                                                                _______    _______ 
 
                                                                722,794    780,083 
 
                                                                _______    _______ 
 
Current Assets 
 
Other receivables                                                18,617     25,172 
 
Cash and cash equivalents                                        13,705     39,984 
 
                                                                _______    _______ 
 
                                                                 32,322     65,156 
 
                                                                _______    _______ 
 
Total Assets                                                    755,116    845,239 
 
                                                                _______    _______ 
 
Equity and Liabilities 
 
Equity Attributable to Shareholders 
 
Ordinary shares                                                 173,602    173,602 
 
Share premium account                                         1,174,631  1,174,631 
 
Share to be issued under warrants                                29,738     29,738 
 
Other reserves                                                 (33,350)     57,110 
 
Retained loss                                                 (680,422)  (688,551) 
 
                                                                _______   ________ 
 
                                                                664,199    746,530 
 
Current Liabilities 
 
Trade and other payables                                         90,917     98,709 
 
                                                                _______    _______ 
 
Total Equity and Liabilities                                    755,116    845,239 
 
                                                                _______    _______ 
 
These financial statements were approved and authorised for issue by the Board 
of Directors and were signed on its behalf on 31 August 2016. 
 
Gavin J Burnell 
 
Director 
 
HOT ROCKS INVESTMENTS PLC 
 
STATEMENT OF CHANGES IN EQUITY 
YEAR ENDED 31 MARCH 2016 
 
                                         Attributable to Equity Shareholders 
 
                              Ordinary     Share Shares to     Other   Retained     Total 
                                shares   premium be issued  reserves       loss         GBP 
                                     GBP         GBP     under         GBP          GBP 
                                                  warrants 
                                                         GBP 
 
Balance as at 1 April          173,602 1,174,631    29,738   214,759  (175,593) 1,147,137 
2014                            ______  ________    ______   _______    _______  ________ 
 
Loss for the year                    -         -         -         -  (512,958) (512,958) 
 
Reclassifications of                 -         -         -   (3,021)          -   (3,021) 
cumulative gains on 
available-for-sale 
financial assets 
 
Fair value change in 
value on                             -         -         - (154,628)          - (154,628) 
available-for-sale              ______    ______    ______   _______    _______   _______ 
financial assets 
 
Total Comprehensive Income           -         -         - (157,649)  (512,958) (670,607) 
 
                                ______    ______    ______   _______    _______   _______ 
 
Total Transactions with 
 
 Owners                              -         -         -         -          -         - 
 
                                ______    ______    ______   _______    _______  ________ 
 
Balance as at 31 March         173,602 1,174,631    29,738    57,110  (688,551)   746,530 
2015                            ______  ________    ______   _______    _______  ________ 
 
Balance as at 1 April          173,602 1,174,631    29,738    57,110  (688,551)   746,530 
2015                            ______  ________    ______   _______    _______  ________ 
 
Profit for the year                  -         -         -         -      8,129     8,129 
 
Reclassifications of                 -         -         -  (19,015)          -  (19,015) 
cumulative gains on 
available-for-sale 
financial assets 
 
Fair value change in 
value on                             -         -         -  (71,445)          -  (71,445) 
available-for-sale              ______    ______    ______   _______    _______   _______ 
financial assets 
 
Total Comprehensive Income           -         -         -  (33,350)  (680,422)   664,199 
 
                                ______    ______    ______   _______    _______   _______ 
 
Total Transactions with 
 
 Owners                              -         -         -         -          -         - 
 
                                ______    ______    ______   _______    _______  ________ 
 
Balance as at 31 March         173,602 1,174,631    29,738  (33,350)  (680,422)   664,199 
2016                            ______  ________    ______   _______    _______  ________ 
 
 
HOT ROCKS INVESTMENTS PLC 
 
STATEMENT OF CASH FLOWS 
YEAR ENDED 31 MARCH 2016 
 
                                                                   2016       2015 
 
                                                                      GBP          GBP 
 
Cash Flows from Operating Activities 
 
Profit/(Loss) before income tax                                   8,129  (496,541) 
 
Finance income                                                  (3,042)    (4,002) 
 
Finance costs                                                         -        192 
 
Gain on disposal of available-for-sale financial               (46,134)      (482) 
assets 
 
Impairment of available-for-sale financial asset                      -    402,651 
 
Decrease in other receivables                                     2,253     33,935 
 
(Decrease) / Increase in trade and other                          8,828     37,930 
payables 
 
                                                                _______    _______ 
 
Cash Used in Operations                                        (29,966)   (26,317) 
 
Interest paid                                                         -       (71) 
 
Income tax paid                                                (16,620)          - 
 
                                                                _______    _______ 
 
Net Cash Used in Operations                                    (46,586)   (26,388) 
 
                                                                _______    _______ 
 
Cash Flows from Investing Activities 
 
Purchases of available-for-sale financial assets              (224,535)  (231,421) 
 
Proceeds from disposal of available-for-sale                    244,842    106,148 
financial 
 assets 
 
Loans issued to related party                                         -    (5,000) 
 
Repayment of loans issued to related party                            -      9,195 
 
Interest received                                                     -          8 
 
                                                                _______    _______ 
 
Net Cash Generated from Investing Activities                     20,307  (121,070) 
                                                                _______    _______ 
 

(MORE TO FOLLOW) Dow Jones Newswires

September 01, 2016 02:45 ET (06:45 GMT)

DJ Hot Rocks Investments PLC Final Results -3-

Decrease in Cash and Cash Equivalents                          (26,279)  (147,458) 
 
Cash and cash equivalents at the beginning of                    39,984    187,442 
the year 
 
                                                                _______    _______ 
 
Cash and Cash Equivalents at the End of the Year                 13,705     39,984 
 
                                                                _______    _______ 
 
 
 
END 
 

(END) Dow Jones Newswires

September 01, 2016 02:45 ET (06:45 GMT)