Published on 7/12/2021 • Category:
CLEAN INVEST AFRICA PLC
("CIA" or the "Company" or the “Group”)
INTERIM CONSOLIDATED FINANCIAL RESULTS
FOR THE PERIOD 1 JANUARY 2021 TO 30 JUNE 2021
CHIEF EXECUTIVE OFFICER STATEMENT
I am pleased to present the interim financial results of the Group for the
period 1 January 2021 to 30 June 2021.
Whilst the past period has continued to be extremely challenging Clean Invest
Africa is looking forward to the next period with significant optimism due to
the potential of a substantial and strong pipeline and in addition a
developing opportunity to expand beyond coal.
At different times during this period, our production facilities, like most
other similar businesses in South Africa and all around the world, have been
impacted by Covid-19. Management took measures early on to mitigate the
consequences of the pandemic including complying with the mandatory
regulations imposed across its operations. These measures have had a
significant impact on the timing of the development of the various commercial
and business development activities expected to have advanced in both 2020 and
2021 and thus our plans have been pushed out by at least 12 months.
In addition, whilst the business took measures to reduce costs and in
particular any variable overhead, it continued throughout to carry its fixed
overhead burden. Net creditor days have been extended beyond its normal
anticipated ratio and management continues to closely manage impacted
creditors, but overall, creditors, which are largely trade and routine, have
and continue to be very supportive.
Notwithstanding the negative impacts of the pandemic, the Company and its
subsidiary CoalTech views the roads ahead with optimism, based upon the
potential of an extensive and solid pipeline of opportunities. It is worth
reiterating that the strategy of CoalTech is to secure long term, large scale
customer relationships with whom it would develop one or more full scale
plants and with long term offtake arrangements. Securing one such customer
would be transformative, with any such project likely to have a project value
well in excess of $10 million and involve the processing of large scale fines
or tailings, typically over one million tonnes. The early stages of these
commercial discussions typically also involve CoalTech running test batches.
These batches are often initially small, for example 10’s of kilos and then
increase to sample production size batches of, for example, 10’s of tonnes.
Once batches are completed the outputs are exhaustively tested by CoalTech and
by the potential client. This process is a considerable proportion of the
CoalTech overhead and consumes the majority of the available production of our
Bulpan production facility in South Africa. The CoalTech pipeline for coal
fines remains substantial and robust and continually developing.
In a further positive development the CoalTech technology previously thought
to only apply to coal fines or coal waste, has now been adapted by CoalTech to
be able to pelletise other materials, with potentially high grade ores,
precious metals, minerals and solid based natural resources. CIA is now
evaluating the opportunity in the much wider market beyond coal including for
pelletised Ilmenite, chrome, iron ore, manganese, as well as other base,
ferrous and precious metals and biomass. This is a very significant
development. Whilst still in its early days this is an indicator of far
greater potential for CIA beyond coal than previously considered.
CIA will today be publishing on its website its unaudited financial results
for the half year ended 30 June 2021.
FINANCIALS
The Group’s interim consolidated financial results for the period 1 January
2021 to 30 June 2021 show a loss after taxation of £552,877.
The financial information for the six months period ended 30 June 2021 has not
been reviewed by the Company’s external auditors.
OUTLOOK
The Directors are pleased with the progress made in this period,
notwithstanding the continuous impacts on the Group’s business of the COVID-19
pandemic and look forward to continuing to update shareholders on the progress
of the Group and the potentially exciting prospects ahead, some of which are
developing reasonably fast. Such prospects are of course conditional upon and
dependant upon the Company raising further funding for which there is no
certainty at present. We continue to seek new investment opportunities and
funding and we will advise shareholders if these opportunities develop.
Filippo Fantechi
Chief Executive Officer
7 December 2021
The Directors of the Company accept responsibility for the content of this
announcement.
ENQUIRIES:
Company
Clean Invest Africa PLC
Filippo Fantechi - Chief Executive Officer
Telephone: +973 39696273
Corporate Adviser
Peterhouse Capital Limited
Guy Miller
Telephone: +44 20 7220 9795
CLEAN INVEST AFRICA PLC
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE PERIOD 1 JANUARY 2021 TO 30 JUNE 2021
For the 6 months period For the
ended year ended
30-Jun-21 31-Dec-20
(Unaudited) (Audited)
Revenue 37,948 444
Cost of sales - -
Gross profit 37,948 444
Other income 2,038 869
Operating costs (599,473) (1,105,496)
Fair value of warrants/options issued - (21,374)
and vested
Unrealised foreign exchange 13,935 (32,256)
revaluation on amounts due to a related party
Operating loss (545,552) (1,157,813)
Finance income - 4
Finance costs (7,325) (11,025)
Loss before tax (552,877) (1,168,834)
Taxation - -
Loss after tax (552,877) (1,168,834)
Other comprehensive income
Items that will be reclassified to
profit or loss
Currency translation differences 3,464 91,548
Total comprehensive loss for the (549,413) (1,077,286)
period
Earnings per share expressed in pence
per share:
Basic and diluted loss per share (GBP) (0.05) (0.10)
The accompanying notes form an integral part of these interim financial
statements.
CLEAN INVEST AFRICA PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
As at As at
30-Jun-21 31-Dec-20
(Unaudited) (Audited)
Assets
Non-current assets
Property, plant and equipment 481,730 477,044
Right-of-use assets 35,837 20,966
Investments 5,247 5,247
Total Non-current assets 522,814 503,257
Current assets
Inventories 7,779 7,679
Trade and other receivables 134,355 105,567
Amounts due from related parties 3,398,815 3,411,760
Cash & cash equivalents 6,079 13,864
Total current assets 3,547,028 3,538,870
Total assets 4,069,842 4,042,127
Equity and liabilities
Equity attributable to the owners of the Company
Share capital 2,949,388 2,949,388
Share premium 24,938,863 24,938,863
Shares to be issued 332,294 332,294
Convertible loans 155,000 155,000
Share-based payment 3,243,556 3,243,556
Foreign currency translation reserve 178,053 174,589
Reverse takeover reserve (23,050,570) (23,050,570)
Accumulated losses (11,965,074) (11,412,197)
Total equity (3,218,490) (2,669,077)
Liabilities
Current liabilities
Trade and other payables 2,257,849 1,699,749
Current portion of lease liabilities 16,803 7,968
Amounts due to related parties 4,990,026 4,986,218
Total current liabilities 7,264,678 6,693,935
Non-current liabilities
Non-current portion of lease liabilities 23,654 17,269
Total non-current liabilities 23,654 17,269
Total liabilities 7,288,332 6,711,204
Total equity and liabilities 4,069,842 4,042,127
The accompanying notes form an integral part of these interim financial
statements.
CLEAN INVEST AFRICA PLC
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
As at As at
30-Jun-21 31-Dec-20
Unaudited Audited
Assets
Non-current assets
Investments 4,744,225 4,744,225
Total Non-current assets 4,744,225 4,744,225
Current assets
Trade and other receivables 240,569 235,714
Cash & cash equivalents 852 1,496
Total current assets 241,421 237,210
Total assets 4,985,646 4,981,435
Equity and liabilities
Equity attributable to the owners of the Company
Share capital 2,949,388 2,949,388
Share premium 24,938,863 24,938,863
Shares to be issued 332,294 332,294
Convertible loans 155,000 155,000
Share-based payment 3,243,556 3,243,556
Accumulated losses (27,038,202) (26,893,467)
Total equity 4,580,899 4,725,634
Liabilities
Current liabilities
Trade and other payables 404,747 255,801
Total liabilities 404,747 255,801
Total equity and liabilities 4,985,646 4,981,435
The accompanying notes form an integral part of these interim financial
statements.
CLEAN INVEST AFRICA PLC
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDING 30 JUNE 2021
Share Share Shares Convertible Share-based Reverse Currency Accumulated Total
capital premium to be loans payment takeover translation losses equity
issued reserve reserve reserve
As at 1 2,844,413 24,623,938 332,294 134,388 3,222,182 (23,050,570) 83,041 (10,243,363) (2,053,677)
January 2020
Loss for the - - - - - - (1,168,834) (1,168,834)
year
Other
comprehensive
income:
Currency - - - - - - 91,548 - 91,548
translation
differences
Total - - - - - - 91,548 (1,168,834) (1,077,286)
comprehensive
income
Transactions
with owners,
recorded
directly in
equity:
Shares issued 104,975 314,925 - - - - - - 419,900
by Clean
Invest Africa
Plc during
the year
Share-based - - - - 21,374 - - - 21,374
payment
Movement - - - 20,612 - - - - 20,612
during the
year
Total 104,975 314,925 - 20,612 21,374 - - - 461,886
transactions
with owners
recognised in
equity
Balance as at 2,949,388 24,938,863 332,294 155,000 3,243,556 (23,050,570) 174,589 (11,412,197) (2,669,077)
31 December
2020
Loss for the - - - - - - - (552,877) (552,877)
year
Other
comprehensive
income:
Currency - - - - - - 3,464 - 3,464
translation
differences
Total - - - - - - 3,464 (552,877) (549,413)
comprehensive
income
Balance as at 2,949,388 24,938,863 332,294 155,000 3,243,556 (23,050,570) 178,053 (11,965,074) (3,218,490)
30 June 2021
The accompanying notes form an integral part of these interim financial
statements.
CLEAN INVEST AFRICA PLC
GROUP STATEMENTS OF CASH FLOWS
FOR THE PERIOD 1 JANUARY 2021 TO 30 JUNE 2021
For the year ended For the year ended
30-Jun-21 31-Dec-20
Operating activities
Loss before income tax (552,877) (1,168,834)
Adjustment for:
Amortisation of right-of-use assets 3,897 7,472
Fair value of warrants/options - 21,374
issued and vested
Provision for obsolete inventories - 1,598
Finance income - (4)
Finance costs 7,325 11,025
(541,655) (1,127,369)
Changes in operating assets and
liabilities
Inventories (100) (511)
Trade and other receivables (28,788) 67,337
Trade and other payables 558,100 784,345
Cash utilised in operations (12,443) (276,198)
Finance income - 4
Finance costs (6,149) (2,737)
Exchange gains/(loss) on cash and (40,093) 25,803
cash equivalents
Net cash used in operating (58,685) (253,128)
activities
Investing activities
Purchase of property, plant and - (8,488)
equipment
Net cash used in investing - (8,488)
activities
Financing activities
Funding received from a related 54,589 157,923
party
Payment of related party borrowings - (39,415)
Proceeds from issue of shares - 150,000
Principal paid on lease liabilities (3,689) (6,259)
Net cash from financing activities 50,900 262,249
Increase/(decrease) in cash and cash (7,785) 633
equivalents
Cash and cash equivalents at 13,864 13,231
beginning of the period
Cash and cash equivalents at end of 6,079 13,864
the period
The accompanying notes form an integral part of these interim financial
statements.
CLEAN INVEST AFRICA PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2021
1. Company information
Clean Invest Africa plc (the “Company”) is a public limited company which is
listed on the Aquis Stock Exchange Growth Market (previously NEX Exchange
Growth Market) and is incorporated and domiciled in the United Kingdom.
The consolidated entity (the “Group”) consists of the Company and the entities
it controlled at the end of the six months period ended 30 June 2021.
Principal activity
The Company’s primary strategy is to identify investment opportunities and
acquisitions in clean energy projects/companies or alternative technologies
that are used in a socially and environmentally responsible way on a global
basis, with the intention of building a diversified portfolio of assets.
The subsidiaries of the Company, CoalTech Limited (“CoalTech”), a company
registered in the United Kingdom with registered number 11368750, and Coal
Agglomeration South Africa (Pty) Ltd. (“CASA”), a company registered in South
Africa with registered number 2015/439393/07 and CoalTech’s subsidiary Coal
Tech LLC, a company registered in the United States of America with registered
number 5685936 (collectively referred as “CoalTech Group”), are primarily
engaged in agglomerating coal fines waste (coal dust) into coal pellets
through the commercialization of the Group’s proprietary binding technology.
2. Basis of preparation
The interim consolidated financial statements of the Group and the interim
financial statements of the Company (the “interim financial statements”) have
been prepared in accordance with International Financial Reporting Standards
(IFRS) and IFRIC interpretations (IFRS IC) as adopted by the European Union
and the Companies Act 2006 applicable to companies reporting under IFRS.
The interim financial statements are for the six months period ended 30 June
2021 and are presented in Sterling (£) which is the Company’s presentation
currency. The financial information for the six months period ended 30 June
2021 have not been reviewed by the Company’s external auditors or audited.
The interim consolidated financial statements of the Group and the interim
financial statements of the Company have been prepared using going concern
assumption under the historical cost convention. The Directors believe the
Group has or has access to sufficient funds to continue as a going concern for
at least 12 months from the end of the reporting period.
3. Dividend
No dividends will be distributed for the six-month period ended 30 June 2021.
4. Earnings per share
Basic and diluted
For the 6 months For the year ended 31
period ended December 2020
30 June 2021
(Unaudited) (Audited)
Total loss from continuing (552,877) (1,168,834)
operations attributable
to equity holders of the
Company
Weighted average number of ordinary 1,179,755,301 1,157,215,657
shares in issue
Basic earnings per share from (0.05) (0.10)
continuing operations
5. Events after the reporting period
There were no significant events subsequent to 30 June 2021 and occurring
before the date of signing of the interim financial statements that would have
a significant impact on these annual financial statements.
The following events occurred between 30 June 2021 and the date of this report
which are material to the understanding of the interim financial
statements:
On 16 September 2021, the Company is pleased to announce that it has agreed to
enter into a convertible loan note (“CLN”) of £60,000, for a period of 6
months, with three of the Company directors, N Lyons, F Fantechi and P B Ryan,
in equal parts, of £20,000 each. The CLN is convertible into ordinary shares
of the Company at the request of the CLN holders, at 0.25p per share with an
interest coupon of 8% payable in ordinary shares at 0.25p, upon redemption or
conversion. Both the CLN and the coupon carry equivalent of two (2) warrants
for every one ordinary share resulting from the conversions. Therefore, the
Company will immediately grant a total of 49,920,000 warrants, each with an
exercise price of 0.25p and valid for a period of five (5) years.
ENDAll Announcements