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Wednesday 14 July, 2010

MDM Engineering Gp

Results announcement to 31 Ma

RNS Number : 3046P
MDM Engineering Group Ltd
14 July 2010
 



MDM ENGINEERING GROUP LIMITED

("MDM" or the "Group")

 

FULL YEAR RESULTS TO 31 MARCH, 2010

 

MDM Engineering Group Limited (AIM: MDM) is pleased to announce its audited results for the year ended 31 March 2010. MDM is an African-focused engineering and project management group which provides a range of value added services to the mining industry, including project evaluation, process engineering, design and project management.

 

2010 Highlights

 

Financial: 

·      Revenue of US$33.2 million (2009: US$36.0 million)

·      Gross profit of US$10.1 million (2009: US$16.7 million)

·      Net profit of US$3.5 million (2009: US$7.8 million)

·      Pre-tax profit of US$5.0 million (2009: US$11.6 million)

·      Cash position of US$10.0 million (2009: US$14.0 million)

·      Basic earnings per share of US9.25 cents per share (2009: US21.15 cents)

·      Full dividend of US4.60 cents per share (2009: US11.25 cents)

·      Final cash dividend of US0.85 cents per share

·      Dividend cover of 2.0 times

 

Operational: 

·      Increased requests for study proposals and tenders were received and submitted since the beginning of the calendar year

·      Two new execution projects and five studies awarded since 31 March 2010

·      Management focussed on cost saving and the preservation of cash

·      New General Manager projects appointed to enhance controls and project capabilities

 

Corporate: 

·      Appointment of Martin Smith as new Chief Executive Officer

 

Overview

 The 2010 year has been difficult for MDM as evidenced by the decrease in earnings. Net profit for the year showed a decrease of 56% to US$3.5 million (2009: US$ 7.8 million) with earnings per share showing a decrease of 56% to US9.25 cents per share (2009: US21.15 cents).  This decrease was primarily driven by the settlement with First Uranium Corporation Limited ("FIU") on the close out of the Ezulwini project, as well as the suspension of both Mine Waste Solution's ("MWS") Phase 1b and Phase 2 projects in early February 2010.

 

The performance of the Group needs to be viewed in the context of the global economic crisis that commenced in late 2008. The recovery has taken somewhat longer than anticipated and many of MDM's clients have deferred execution of projects which in turn has moved MDM's anticipated project pipeline towards the latter part of the 2011 financial year. Further to this, MDM is experiencing fierce competition amongst the engineering companies, reducing margins during tendering to increase the probability of securing work.

 

Summary of Financial Results

Consolidated net earnings for the 12 month period ending 31 March 2010 were US$3.5million, which equates to basic earnings per share of US9.25 cents.

 

The Directors of MDM have declared a final cash dividend of US0.85 cents per share payable on the 20th of August 2010 to shareholders registered on the 23rd of July 2010. This is in line with the stated dividend policy whereby approximately 50% of after tax earnings will be paid out as a dividend.

 

MDM CEO Martin Smith commented:

"MDM demonstrated resilience during the 12 month period ending 31 March 2010 by conserving cash reserves and maintaining a steady workload through what has been a continued stressed market.

 

In spite of the global economic crisis and reduced activity in the project market over the last 12 months, MDM has used the time to strengthen its execution capability by recruiting key management and technical resources, cutting costs but also enhancing internal processes which will ensure more effective project delivery for our clients into the future.

 

The Group's business has slowed due to general caution in the market, mostly related to securing of project funding. However, given the sustained interest being shown in MDM's services, the Directors believe that the project pipeline is anticipated to recover towards the latter part of the 2011 financial reporting period and indeed there are already signs of this happening with increased requested for feasibility studies and project execution tenders being received."

 

 

For further information:

MDM Engineering Group Limited

Martin Smith

George Bennett

Tel: +27 (11) 993 4300

 

Numis Securities Limited

John Harrison (Nominated Adviser)

Tel: +44 (0) 207 260 1000

 

James Black (Corporate Broker)

Tel: +44 (0) 207 260 1000


 

CEO'S REVIEW

 

Managing through challenging times

MDM demonstrated resilience during the 12 month period ending 31 March 2010 by conserving its cash reserves and maintaining a steady workload through what has been a stressed market.

 

In spite of the global economic crisis and reduced activity in the project market over the last 12 months, MDM has used the time to strengthen its execution capability by recruiting key management and technical resources, cutting costs but at the same time enhancing internal processes which will ensure more effective project delivery for our clients into the future.

The Group's organic growth has been slowed down by the general caution in the market, mostly related to securing of project funding. However, given the sustained interest being shown in MDM's services, the Directors believe that the project pipeline should recover towards the latter part of the 2011 financial reporting period and indeed there are already signs of this happening with increased requests for feasibility studies and project execution tenders being received.

 

The MDM board has decided to maintain its 50% dividend policy and we are therefore pleased to declare a final cash dividend of US0.85 cents per share.

 

Financial overview

Revenues, which fell 7.8% to $33.2m (2009: $36.0 million),  and resultant profits were adversely impacted by the suspension of First Uranium Corporation Limited's ("FIU") Mine Waste Solutions ("MWS") Phase 1b & 2 projects in February 2010, whilst the award of the Kalagadi Umtu manganese project has been delayed since January 2010.

 

Gross margin achieved was 30.5% against 46.4% for the prior year. This was due to an increase in the revenue and costs from labour brokers passed through the MDM profit and loss account as well as the US$ 2.1 million cost incurred on the settlement of FIU's Ezulwini contract, which was reported in May 2010. The labour component increased from US$ 7.7 million in 2009 to US$ 10.3 million in 2010. The underlying gross profit margin, excluding these adjustments, was 53.3% against 59.2% for the prior year with the reduction in margin reflecting the tough conditions being experienced in the market.

 

The Group maintained operating costs at US$ 6.2 million (2009: US$ 6.2 million).

Whilst cash resources have reduced from US$ 14.0 million at 31 March 2009 to US$ 10.1 million at 31 March 2010, the Directors believe that this continues to represent a sound base from which to operate the business.

 

Safety performance a priority

MDM achieved 2,796,221 LTI free man-hours during the 2010 financial year, having had no lost time injuries and peak site manpower strength of 1 517 people at FIU's, MWS Phase 1b & 2 projects.

 

Safety is of primary importance to MDM in the design and execution of our projects and also in our office environment. The management team continuously strive to create awareness by implementing best practices and further demonstrates this in our MDM Charter which subscribes to zero harm in all facets of our business.

 

Execution projects

During most of FY2010 MDM continued with the execution of FIU's MWS Phase 1b & 2 gold and uranium expansion projects with combined project values of US$450 million.

Unfortunately, FIU experienced delays with the approval of their operating permits as well as funding constraints, subsequently suspending all projects in February 2010.

 

MDM is committed to long term relationships with our clients and supporting them through difficult times. Consequently we are pleased to say that FIU has recovered from their constraints, and both parties are proceeding with the completion of MWS Phase 2 project in August 2010.

 

On MWS Phase 1b, which had also been suspended, we are engaged with the close-out of the project. The gold plant has been commissioned and is producing above the design capacity. The uranium plant will be completed at a later stage when the uranium price has recovered.

We are disappointed in the delayed award of Kalahari Resources' Kalagadi Umtu manganese EPCM contract, since we completed the Bankable feasibility study ("BFS") and subsequently the front end engineering (FEED) work late last year. The client has awarded the earthworks contract as well as the sinter plant contract, as these are on the critical path to complete the project on time.

 

Project studies

MDM is currently involved in various study phases of projects which will form part of our anticipated project pipeline, although, as described below, the phasing of these projects has been deferred to the latter part of the 2011 financial year. Some of these are gold studies which are intended to be fast tracked to take advantage of the favourable gold price. On Gold Fields Limited's ("Gold Fields") West Wits Tailings retreatment project we are undertaking the staged BFS due for completion in August 2010, with the intention of proceeding to execution in early 2011, subject to final approval by the Gold Fields board. We have secured studies from Uranex NL (Manyoni uranium) and are in the process of concluding five further study awards for gold, platinum, manganese and copper projects. These studies, although not major contributors to revenue during the study phase, will provide us with long term execution workloads in Africa and South Africa.

 

Board, management and key appointments

In addition to my appointment by the MDM board as new CEO in March 2010, Mark Clarence has been appointed to take over the position as General Manager of projects. Both Mark and I come with significant industry experience on big projects in engineering, construction and overall project execution.

 

MDM has also employed additional lead process engineers in late 2009 to enhance our in-house capability related to hydro-metallurgical process plants in base metals, gold and uranium commodities. This will enhance our capacity to take part in multiple large projects.

 

Commodities and future prospects

We believe commodities markets have sufficiently recovered to encourage the development of new growth projects as well as improving capacity output of existing plant facilities. This pattern is particularly true for gold. The uranium price has been depressed but our clients believe this will recover in the medium term. We have also detected renewed interest in copper and cobalt projects and received enquiries related to platinum; this is a welcome sign of market recovery.

 

The Company generates revenue both from the recovery of man hours and an agreed margin on the total contract cost for execution projects.

 

The pipeline of execution projects for which MDM has been mandated at the current time suggests that the earnings for the financial year to March 2011 will be materially lower than previous market expectations. Certain of the execution projects which we had believed would take place during the year have been deferred and are likely to begin late in the financial year, with the bulk of the financial benefit to the Company passing into the financial year to March 2012. The renewed interest we have experienced in engaging MDM's services, however, means that we are confident of a recovery in the Company's execution work flows along with the studies which are already being commissioned by MDM's clients.

 

Strategy going forward

MDM's short term strategy to compete under these market conditions is to maintain a cost sensitive approach to secure a healthy project pipeline for the future.

 

Our short term goals are to:

·      Continue to preserve cash

·      Reduce costs by managing appropriate staff levels

·      Reduce overhead expenses as far as possible

·      Continue strengthening project execution capability and capacity

·      Improve efficiency by upgrading internal processes and infrastructure

·      Continue relationship management and marketing initiatives

·      Create a strong project execution pipeline to complement existing work

 

Our strategy going forward is to expand our client base and geographical work area, including African countries where MDM has been historically well recognised for successful execution of projects.

 

Our differentiator is found in the personal attention given to our clients' needs, providing sensible solutions that suit both their output requirements and the environment. This approach is validated by repeat business with clients over many years as well as interest shown by new clients. We have had historical success with both junior and large mining houses and will continue to service this market.

 

Martin Smith

Chief Executive Officer,

13th July 2010

 

CHAIRMAN'S STATEMENT

 

I am pleased to present your Group's third annual results, for the 12 month period ending 31 March 2010. The past 12 months has not seen the global economy recover as anticipated and has had its challenges; notwithstanding this, numerous requests for project proposals have recently been received by the Group. We remain confident of our ability to meet shareholder and client expectations in the medium to longer term.

 

A muted commodities market

Our progress over the year has to be viewed against the backdrop of the continued turmoil following the global economic crisis that took place more than 18 months ago, with the recovery taking longer than was anticipated. Projects that had been on the cards have been placed on hold or completely suspended for now. There has been some downsizing by companies creating turmoil and associated job losses. Financing for capital projects has proved to be difficult to obtain, creating further strain in an already stressed market. The economic meltdown has impacted the engineering industry in that potential clients have been taking longer to evaluate and approve projects. Whilst MDM has not escaped the negative effects of the global meltdown, management focussed on cost cutting, cash preservation and reinforcing its skills base to ensure that we remain competitive and well positioned for our long term growth.

 

In February 2010, FIU suspended both of its MWS projects due to a lack of funding, a situation which that company has subsequently resolved. Whilst we are finalising contractual details to return to site at MWS, we have also intensified our efforts to add to the order book. Earnings from the project pipeline have shifted from the current year to the 2012 financial year.

 

MDM's concerted marketing campaign seems to be paying off as evidenced by the number of requests received for new proposals. In addition to the continuation of the MWS Phase 2 project, we have been awarded five studies which we expect to be able to announce in the near future. We are well aware that the year ahead will be demanding as we notified to the market last week, but we are optimistic that with our marketing and business development campaign, we will secure a substantial project pipeline and improve our earnings by the end of the 2011 financial year. We believe that the flexibility that our Engineering, Procurement, Construction Management (EPCM) business model offers puts MDM in a strong position to operate in the current challenging environment.

 

Given the stressed environment in which we have operated, I am not too dissatisfied with our financial performance for the year. We have alerted the market to our revised earnings estimates for the year to march 2010, mainly as a result of the suspension of the MWS projects and the final settlement of the Ezulwini project, both with First Uranium Corporation Limited. Despite the conditions experienced in the past year, we have achieved revenue of $33.2 million (2009: $36.0 million). Profit for the year of US$3.5 million is below market expectations and represents a 56% decrease on the previous financial period (2009: US$7.8 million).

 

Notwithstanding the subdued trading position and in the belief that we will increase our project pipeline, the Board has decided to maintain the dividend policy of 50% and declare a final cash dividend of US0.85 cents per share, taking the full year dividend to US4.60 cents per share (2009: US11.25cents).

 

Stability

The foundation of MDM's strategic vision has been underpinned by our ability to deliver services to our clients on time and within budget. Exceeding their expectations drives our business model.

 

Safety comprises a core tenet of the services we offer, both in terms of the design and construction of our projects. Operating in a mining and construction environment is potentially a risky proposition and we strive to ensure that all our employees, whether full time or contractors, work in a safe and responsible manner. Our safety performance for the year has once again been outstanding with no accidents or lost-time injuries for the year, achieving just under three million man hours on all sites.

 

Our strategic focus is on stability within our operations. Despite our expansion over the last few years, we have had to reduce staff numbers mainly as a result of premature suspension of some projects. However, the reduction is primarily in non-critical skills areas. Our critical skills turnover rate remains at an acceptable level for this type of industry. We can therefore easily cope with an order book increase as well as execution project awards. Morale levels within the Group remain excellent and we are looking forward to increased project activity.

 

MDM is fortunate to have a healthy cash balance. We will continue to conserve cash during the next financial year whilst we concentrate on growing our order book. I have no doubt that the management team which we have built over the last few years is more than capable of maintaining stability and securing a strong project pipeline.

 

Welcome and Thank you

I am delighted to take this opportunity to welcome Martin Smith, our new Chief Executive Officer who was appointed in March 2010. I have no doubt that with his considerable industry experience and enthusiasm he will add tremendous value and continue to lead MDM along a growth path. In the short time that Martin has been with the Company we have already benefitted from his sound leadership and ability to communicate effectively with both staff and client groups.

 

Further to this I would also like to welcome Mark Clarence who has been appointed as the new General Manager of projects to strengthen MDM's execution capability. Mark has been appointed to the project execution side of the business and will improve the internal project controls ensuring reduced risk and exposure to both the client and the company.

 

Lastly I would like to thank our out-going Chief Executive Officer Grant Lowman for his hard work and dedication since the Company became listed on AIM.

 

Prospects

The year under review has proved to be challenging and the forecast for 2011 remains equally demanding for the Group. We are however dedicated to increasing shareholder value and creating growth for our clients. Our technology knowhow and project management experience are essential contributors to the industry. We therefore remain optimistic that with the improving commodity cycle we are well-placed to thrive.

 

Bill Nairn

Non-executive Chairman

13th July 2010

 

  Financial Statements

MDM ENGINEERING GROUP LTD





CONSOLIDATED STATEMENT OF FINANCIAL POSITION


at 31 March 2010













31 March

31 March




2010

2009



Notes

 US$

 US$

Assets










Non-current assets



1 520 509

      1 384 450






Property, plant and equipment


3

        517 647

457 442

Intangible asset


4

          46 629

40 687

Deferred tax


5

        956 233

886 321






Current assets



      20 027 383

      21 039 146






Trade and other receivables


6

      9 931 685

      7 071 832

Cash and cash equivalents


7

      10 095 698

      13 967 314






Total assets



      21 547 892

      22 423 596











Equity and liabilities










Equity attributable to equity holders of the parent



     

18 761 744

     

15 989 992






Share capital


8

        374 591

        374 591

Share premium


9

      1 317 119

5 516 210

Treasury shares


10

(177 276)

(177 276)

Foreign currency translation reserve


11

    1 884 319

(1 417 287)

Retained earnings



      15 362 991

      11 693 754






Non-current liabilities



        14 271

        31 280






Interest bearing liability


12

        14 271

31 280






Current liabilities



      2 771 877

      6 402 324






Trade and other payables


13

1 888 211

4 014 597

Current portion of interest bearing liability


12

          26 408

          24 488

Provisions


14

414 483

687 945

Income tax payable



442 775

      1 675 294






Total equity and liabilities



      21 547 892

      22 423 596



 

 

 

MDM ENGINEERING GROUP LTD

CONSOLIDATED INCOME STATEMENT




for the year ended 31 March 2010










Year

Year



Ended

Ended



31 March

31 March



2010

2009


Notes

 US$

 US$





Revenue


33 159 373

35 916 889





Cost of sales


     (23 058 614)

     (19 252 389)





Gross profit


10 100 759

16 664 500





Operating expenses


        (6 161 994)

        (6 206 283)





Other income


             596 819

             265 572





Operating profit


4 535 584

10 723 789





Investment income

15

1 008 431

894 834





Financial expense

16

(507 000)

(38 062)





Profit before taxation

17

5 037 015

11 580 561





Taxation

18

        (1 571 401)

        (3 741 039)





Profit for the year attributable to equity holders of the parent              


 

3 465 614

 

7 839 522

 

 




Earnings per share:

Basic earnings per share - US cents

 

19

 

9.25

 

21.15

Diluted earnings per share - US cents

19

9.19

19.32

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


for the year ended 31 March 2010








Profit for the year


3 465 614

7 839 522

Other comprehensive income




Exchange differences gains / (losses) on translation of foreign operations

 

3 301 606

 

(1 082 113)









Total comprehensive income for the year


6 767 220

6 757 409









 

 

 

 

 

 

 

MDM ENGINEERING GROUP LTD

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the year ended 31 March 2010

 

 



Share capital


Share premium


Foreign currency translation reserve


Retained

Earnings


Treasury

Shares


Total
 



US$


US$


US$


US$


US$


US$
 














Balance at 1 April 2008



340 090


1 335 130


(335 174)


3 187 158


-


4 527 204















Profit for the year



-


-


-


7 839 522


-


7 839 522

Foreign currency translation differences



-


-


(1 082 113)


-


-


(1 082 113)















 

Total comprehensive income attributable to equity holders of the parent



-


-


(1 082 113)


7 839 522


-


6 757 409















Issue of share capital



34 501


9 734 865


-


-


-


9 769 366

Issue costs



-


(2 650 566)


-


-


-


(2 650 566)

Share option charge



-


-


-


667 074


-


667 074

Treasury shares



-


-


-


-


(177 276)


(177 276)

Dividends paid



-


(2 903 219)


-


-


-


(2 903 219)















Balance as 31 March 2009



374 591


5 516 210


(1 417 287)


11 693 754


(177 276)


15 989 992

 

Balance at 1 April 2009



374 591


5 516 210


(1 417 287)


11 693 754


(177 276)


15 989 992

 















 

Profit for the year



-


-


-


3 465 614


-


3 465 614

 

Foreign currency translation differences



-


-


3 301 606


-


-


3 301 606

 















 

 

Total comprehensive income attributable to equity holders of the parent



-


-


3 301 606


3 465 614


-


6 767 220

 















 

Share option charge



-


-


-


203 623


-


203 623

 

Dividends paid



-


(4 199 091)


-


-


-


(4 199 091)
















 

Balance as 31 March 2010



374 591


1 317 119


1 884 319


15 362 991


(177 276)


18 761 744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MDM ENGINEERING GROUP LTD




CONSOLIDATED CASH FLOW STATEMENT




for the year ended 31 March 2010










Year

Year



Ended

Ended



31 March

31 March



2010

2009


Notes

 US$

 US$









Cash flows from operating activities


(3 166 769)

5 786 240

Cash (utilised) / generated by operations

20

(3 166 769)

5 786 240





Cash flows from investing activities


351 729

1 132 080

(Acquisitions) / disposal of property, plant and equipment


 

(149 702)

 

275 308

Net interest received


501 431

856 772





Cash flows from financing activities


(4 214 180)

3 419 243

Net proceeds received on shares issued


-

9 769 366

Costs directly related to issue of shares


-

  (2 650 566)

Purchase of treasury shares


-

(177 276)

Dividends paid


( 4 199 091)

(2 903 219)

Long term loans repaid


(15 089)

(619 062)





Net (decrease) / increase in cash and cash equivalents


(7 029 220)

10 337 563

Foreign exchange differences


3 157 604

(1 517 188)

Cash and cash equivalents at the start of the year


13 967 314

5 146 939

Cash and cash equivalents at end of year


10 095 698

13 967 314





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTES TO THE FINANCIAL STATEMENTS

 

1.   GENERAL INFORMATION

 

      MDM Engineering Group Ltd ("the Company") is a company incorporated in the British Virgin Islands. The
Company and its subsidiaries ("the Group") are involved in minerals process engineering and project management.  The principal operations are currently based in South Africa. Services include preliminary and final (bankable and definitive) feasibility studies, through to plant design, construction and commissioning.

 

      The individual financial statements of the Group companies are presented in the currencies of the primary
economic environment in which they operate. For the purpose of the consolidated financial statements, the results and financial position of the Group are presented in US dollars (US$).

 

2.   ACCOUNTING POLICIES

 

      Basis of preparation

      These financial statements have been prepared in conformity with International Financial Reporting Standards
(IFRS) as adopted by the European Union. The principal accounting policies are set out below and are consistent in all material respects with those applied in the previous year; except where otherwise indicated.

 

      The preparation of financial statements in conformity with IFRS requires management to make judgements,
estimates and assumptions that effect the application of policies and reported amounts in the financial statements. The areas involving a higher degree of judgement or complexity, or areas where assumptions or estimates are significant to the financial statements are disclosed in the relevant notes.

 

      Going concern

The directors regularly review cash flow forecasts of the Group to determine whether the Group has sufficient cash reserves to meet the future working capital requirements. The economic downturn over the past 18 months together with the postponement of the two execution First Uranium Corporation projects in February 2010 has had a larger impact on the timing of the Group's pipeline and order book than was anticipated. First Uranium Corporations Phase 2 project has been reinstated and the Group will commence work early July 2010. The Group's current order book has experienced a shift in its expected project pipeline from the current year back towards the year to 31 March 2012. The Group is however currently experiencing an increase in requests for proposal and tenders from various sectors in the market indicating an increase in market activity. 

 

The forecasting of the business and cash flow number does have a number of assumptions and carries certain risks in that certain studies and projects are used in the forecasted in the anticipation of them being achieved. Should these not be achieved then this will have a different impact on the forecast numbers for a given year. The Board of directors are of the opinion that the Groups, forecasts using actual secured studies and projects, will have the necessary cash resources to meet the working capital requirements. The consolidated financial statements are prepared on the assumption that the Group is a going concern on the basis that the directors are satisfied that sufficient financial resources will be available to meet the Group's current and foreseeable working capital requirements.

 

New accounting policies adopted

 

      No material changes to accounting policies arose as a result of new standards applied by the Group from 1 April 2009. The following new standards have resulted in presentation and disclosure amendments only:

·         IFRS 8 "Operating segments" replaced IAS14 "Segmental reporting" for the year ended 31 March 2010. This requires a management approach, under which segmental information is presented on a similar basis to that used for internal reporting. The Group has only one business segment and this is the supply of engineering services. Geographically more than 95% of the work has been performed in South Africa. Therefore no segmental and geographical analysis is provided. The measure of profitability regularly reported to the Board of Directors is profit before tax.

·         IAS1 "Presentation of financial statements" has been amended changing the way the Group's primary financial statements have been presented. The revisions include changes in the titles of the primary statements and presentation changes to the components of the financial statements.

 

      Standards in issue, not yet effective

 

Any standards and interpretations that have been issued but are not yet effective, and that are available for early application, have not been applied by the Group in these financial statements. Application of the majority of these Standards and Interpretations is not expected to have a material effect on the financial statements in the future. The Standards that are expected to have a material effect on the financial statements in the future are:

• IAS 27 (Amendment) 'Consolidated and separate financial statements', which introduces new guidance on accounting for changes in non-controlling interests (currently 'minority interests'). This will result in total comprehensive income being attributed to non-controlling interests even in the event that this results in the non-controlling interests having a deficit balance

• IFRS 3 (Revised) 'Business Combinations' will impact on the way that business combinations will be accounted for in the future by the Group. This is only applied to business combinations occurring in future periods.

In accordance with the transitional provisions these standards will be prospectively applied and changes in accounting policy resulting from their application will have no impact on the opening balances in future financial statements.          

 

Critical accounting estimates and judgements

 

      Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

      The Company makes estimates, assumptions and significant judgements concerning the future. The resulting
accounting estimates will, by definition, seldom equal the related actual results. The estimates and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

 

Accounting for long term contracts

     

      The Company makes estimates and judgements concerning the future, particularly as regards long term
contract profit taking, provision, arbitrations and claims. The resulting accounting estimates can, by definition, only approximate the actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

      Share-based payments

 

      The Group issues equity-settled share-based payments. Equity-settled share-based payments are measured at
fair value at the date of the grant. The fair value and the vesting period uses management assumptions in their
calculation.

           

      While management believes the assumptions used are appropriate, a change in the assumptions used would
impact the results of the Group.

 

      Consolidation policy

 

      The consolidated financial statements combine the financial statements of the individual entities comprising the
Group.

 

      The effects of all transactions between entities in the Group have been eliminated in full and the consolidated
financial statements have been prepared using uniform accounting policies for like transactions and other events in similar circumstances.

 

      Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies
so as to obtain benefit from their activities. Subsidiaries are fully consolidated from the date on which control is transferred until the date that the control ceases.

 

      The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group.

 

      A joint venture is an entity over which the Group has joint control. Joint control is the contractually agreed
sharing of control over an entity, and exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control. The joint venture is proportionally consolidated from the date on which control is transferred, until date that the control is ceased. The Group's share of the assets, liabilities, income and expenses of the joint venture are included on a line by line basis with similar items in the financial statements.

 

      Revenue recognition

 

      Revenue for services rendered is recognised as services are rendered.  Revenue is not recognised when it
cannot be measured reliably or where there are significant uncertainties regarding the recovery of the consideration due, associated costs or continuing management involvement with the services rendered.

 

      Revenue on contracts is recognised as revenue by reference to the stage of completion of contracts at balance sheet date. The stage of completion is based on the actual work performed on the contract at the balance sheet date.

 

      Leases

 

      A distinction is made between finance leases which transfer from the lessor to the lessee substantially all the
risks and rewards incidental to ownership of the leased asset and operating leases under which the lessor retains substantially all the risks and rewards.  Where an asset is acquired by means of a finance lease, the fair value of the leased property or the present value of minimum lease payments, if lower, is established as an asset at the beginning of the lease term.  A corresponding liability is also established and each lease payment is apportioned between the finance charge and the reduction of the outstanding liability.  Operating lease rental expense is recognised as an expense on a straight line basis over the lease term, or on a systematic basis more representative of the time pattern of the user's benefit.

 

Taxation

 

      The charge for current tax is based on the results for the year as adjusted for items which are non-deductible
or disallowed. It is calculated using tax rates that have been enacted by the balance sheet date.

 

      Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences
arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of taxable profit. In principle, deferred tax liabilities are recognised for all taxable temporary differences, and deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from Goodwill or from the initial recognition (other than a business combination) of other assets and liabilities in a transaction, which affects neither tax nor accounting profit.

 

      Deferred tax is calculated at the rates that are expected to apply to the period when the asset is realised or the
liability is settled, based on tax rates that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax is charged or credited to the income statement, except when it relates to items credited or charged directly to equity, in which case the deferred tax is also recorded within equity, or where they arise from the initial accounting for a business combination. In a business combination, the tax effect is taken into account in calculating goodwill or in determining the excess of the acquirer's interest in the net fair value of the acquiree's identifiable assets, liabilities and contingent liabilities over the cost of the business combination.

 

      The carrying amount of the deferred tax assets are reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

 

      Impairment of assets

 

      The Group assesses at each balance sheet date whether there is any indication that any of its assets have been
impaired. If such indication exists, the asset's recoverable amount is estimated and compared to its carrying value.

 

      Impairment losses are immediately recognised as an expense in the income statement. A reversal of an
impairment loss is recognised immediately in the income statement, unless the relevant asset is carried as a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

 

      Translation of foreign currency transactions

 

      Transactions in foreign currencies on initial recognition in the functional currency are recorded by applying to
the foreign currency amount the spot exchange rate at the date of the transaction.

 

      At each balance sheet date:

 

(a)  foreign currency monetary items are reported using the closing rate

 

(b)  non-monetary items which are measured in terms of historical cost in a foreign currency are translated
using the exchange rate at the date of the transaction.

 

      Exchange differences arising on the settlement of monetary items or on translating monetary items at rates
different from those at which they were initially translated during the period are recognised in the income statement in the period in which they arise.

 

      Translation of the financial statements of foreign operations

 

      The following procedures are used in translating the results and financial position of the entity from its
functional currency to the presentation currency:

 

(a)  assets and liabilities at the closing rate at the balance sheet date;

 

(b)  income and expense items at exchange rates at the dates of the transactions; and

 

(c)  all resulting exchange differences recognised as a separate component of equity.

 

      Exchange differences arising on a monetary item that forms part of the net investment in a foreign operation
are recognised initially in a separate component of equity and recognised in profit or loss on disposal of the net investment.

 

Trade and other receivables

 

      Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in
an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairments. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.

 

      Property, plant and equipment

 

      These assets are stated at cost and are depreciated on the straight-line basis at annual rates considered
appropriate to reduce book values to estimated residual values over the remaining useful lives as follows:

 

Building

-

5%

Computer equipment

-

33.3%

Furniture and fittings

-

16.67%

Leasehold improvements

-

50%

Motor vehicles

-

20%

Office equipment

-

20%

Plant and equipment

-

20%

 

      Residual values and useful economic lives are reassessed on an annual basis.

 

      Intangible assets

 

      Intangible assets are stated at cost less accumulated amortisation and any possible impairment losses.  The
intangible asset is amortised over 10 years on the straight line method and charged to the income statement.

 

      Cash and cash equivalents

 

      Cash and cash equivalents comprise cash at bank and other short-term highly liquid investments that are
convertible to a known amount of cash.

 

      Trade and other payables

 

      Trade accounts, notes payable, other payables and accrued liabilities represented the principal amounts
outstanding at balance sheet date plus, where applicable, any accrued interest.

 

      Short-term employee benefits

 

      Short term employee benefits are employee benefits (other than termination benefits and equity compensation
benefits) which fall due wholly within 12 months after the end of the period in which employee services are rendered.  They comprise wages, salaries, social security obligations, short-term compensation absences, profit sharing and bonuses payable within 12 months and non-mandatory benefits such as medical care, housing, car, and service goods.

     

      The undiscounted amount of short-term employee benefits expected to be paid is recognised as an expense.

 

      Share-based payment arrangements

 

      Goods or services received or acquired in a share-based payment transaction are recognised as an increase in
equity if the goods or services were received in an equity-settled share-based payment transaction or as a liability if the goods and services were acquired in a cash settled share-based payment transaction.

 

      For equity-settled share-based transactions, goods or services received are measured directly at the fair value
of the goods or services received provided this can be estimated reliably.  If a reliable estimate cannot be made the value of the goods or services is determined indirectly by reference to the fair value of the equity instrument granted. The Black and Scholes model is used in the determination of the fair value at the date of measurement for equity-settled share-based transactions.

 

      Transactions with employees and others providing similar services are measured by reference to the fair value
at grant date of the equity instrument granted and are charged to the income statement over the vesting period of the equity instrument.

     

Provisions

 

      Provisions are recognised in the balance sheet when there is a present legal or constructive obligation as a
result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

 

      The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation.

 

           





 

Year

Ended

31 March

2010

 

Year

Ended

31 March

2009





US$

US$







3

Property, plant and equipment













Computer equipment






Cost



506 759

340 099


Accumulated depreciation



(288 280)

(111 240)


Net book value



218 479

228 859








Furniture and fittings






Cost



133 048

103 511


Accumulated depreciation



(47 683)

(22 637)


Net book value



85 365

80 874








Lease improvements






Cost



78 829

62 296


Accumulated depreciation



(16 276)

(8 258)


Net book value



62 553

54 038








Motor vehicles






Cost



148 311

77 267


Accumulated depreciation



(46 243)

(17 361)


Net book value



102 068

59 906








Office equipment






Cost



69 906

36 373


Accumulated depreciation



(23 923)

(5 949)


Net book value



45 983

30 424








Plant and equipment






Cost



5 948

4 680


Accumulated depreciation



(2 749)

(1 339)


Net book value



3 199

3 341








Total property, plant and equipment





Aggregate cost



942 801

624 226


Aggregate accumulated depreciation


(425 154)

(166 784)


Aggregate net book value



517 647

457 442









 

Property, plant and equipment (continued)










2010

 

Net book value

1 April

2009

 

 

 

 

 

Additions

 

 

 

 

 

Disposals

 

 

 

 

 

Depreciation

 

 

 

 

Translation reserve

Net book value

31 March 2010



US$

US$

US$

US$

US$

US$










Computer equipment

228 859

75 009

(1 346)

(146 228)

62 185

218 479


Furniture and fittings

80 874

1 218

-

(20 739)

24 012

85 365


Lease improvements

54 038

2 541

-

(10 308)

16 282

62 553


Motor vehicles *

59 906

49 209

-

(24 249)

17 202

102 068


Office equipment

30 424

23 071

-

(16 003)

8 491

45 983


Plant and equipment

3 341

-

-

(1 116)

974

3 199


Total

457 442

151 048

(1 346)

(218 643)

129 146

517 647


















2009

 

Net book value

1 April

2008

 

 

 

 

 

Additions

 

 

 

 

 

Disposals

 

 

 

 

 

Depreciation

 

 

 

 

Translation reserve

Net book value

31 March 2009



US$

US$

US$

US$

US$

US$










Building

595 916

-

(545 734)

-

(50 182)

-


Computer equipment

154 505

199 329

(2 886)

(89 512)

(32 577)

228 859


Furniture and fittings

46 647

63 154

(4 866)

(13 219)

(10 842)

80 874


Lease improvements

8 248

61 921

(4 409)

(6 406)

(5 316)

54 038


Motor vehicles *

44 016

36 043

-

(11 325)

(8 828)

59 906


Office equipment

7 279

31 367

(338)

(4 670)

(3 214)

30 424


Plant and equipment

2 001

2 524

-

(730)

(454)

3 341


Total

858 612

394 338

(558 233)

(125 862)

(111 413)

457 442










·      All motor vehicles are encumbered (refer to note 12)

 

Year

Ended

31 March

2010

Year

Ended

31 March

2009


US$

US$

4

Intangible assets














Designs and Processes






Balance at the beginning of the year


40 687

54 382


Amortisation


(6 402)

(5 638)


Translation difference


12 344

(8 057)


Balance at the end of the year


46 629

40 687







5

Deferred tax












Deferred tax assets






Temporary timing differences



956 233

886 321








The components of the deferred tax asset are




General provisions

925 221

877 289


Other

31 012

9 032



956 233

886 321


 




Year

Ended

31 March

2010

Year

Ended

31 March

2009





US$

US$







5

Deferred tax (continued)












Reconciliation of deferred tax assets






Balance at the beginning of the year



886 321

266 277


Deferred tax (debited) / credited for the year



(195 275)

722 767


Translation difference



265 187

(102 723)


Balance at the end of the year



956 233

886 321








The above deferred tax assets have been recognized as management are of the opinion that the Group will generate adequate future profits against which these deferred tax assets can be reversed.






6

Trade and other receivables










Trade receivables


9 700 750

6 901 126


Prepayments


111 120

118 601


Other


119 815

52 105




9 931 685

7 071 832







Provision for impairment of debtors


Opening balance


-

-


Provided for the year


211 919

-


Closing balance


211 919

-






7

Cash and cash equivalents










Bank balances


1 729 372

3 921 851


Short term deposits


8 362 048

10 038 252


Cash on hand


4 278

7 211




10 095 698

13 967 314


 

Included in the cash and cash equivalents is a restricted amount of US$ 73 542 (2009: US$ 4 594 175) which is placed as performance guarantees with South African financial institutions against the Group's current execution projects.






8

Share capital












Authorised











 

2 000 000

2 000 000


Issued











374 591

374 591








Number

Number


Opening balance

37 459 107

34 009 107


Shares issued

-

3 450 000


Closing balance

37 459 107

37 459 107


 

3 450 000 ordinary shares were issued at 145 pence per share as part of the Company's initial public offering on AIM on  12th May 2008











 


Year

Ended

31 March

2010

Year

Ended

31 March

2009



US$

US$





9

Share premium








Opening balance

5 516 210

1 335 130


Proceeds on shares issued

-

9 734 865


Expenses on shares issued

-

(2 650 566)


Dividends paid

(4 199 091)

(2 903 219)


Closing balance

1 317 119

5 516 210











10

Treasury shares










Opening balance


177 276

-


Acquisitions


-

177 276


Closing balance


177 276

177 276












11

Foreign currency translation reserve










Opening balance


(1 417 287)

(335 174)


Translation profit / (loss) for the year


3 301 606

(1 082 113)


Closing balance


1 884 319

(1 417 287)









12

Interest bearing liability













      

Instalment sales:




14 271

31 280


Amount owing




40 679

55 768


Less:  amount payable within 1 year  included in current liabilities

(26 408)

(24 488)








 











 

 

 

 












 





 

Year

Ended

31 March

2010

 

Year

Ended

31 March

2009






US$

US$








12

Interest bearing liability (continued)













Due in less than 1 year




26 408

24 488


Due later than one year but not later than 5 years

14 271

31 280


Total interest bearing liability




40 679

55 768








13

Trade and other payables














Trade payables




834 982

2 067 106


Other payables




464 393

958 211


Accruals




588 836

989 280






1 888 211

4 014 597








14

Provisions














Bonuses














Opening balance




687 945

403 834


Provided for the year




645 175

829 966


Unused amounts reversed




(586 430)

-


Utilised for the year




(378 798)

(419 828)


Translation difference




46 591

(126 027)


Closing balance




414 483

687 945









Bonus provisions are made up of leave pay bonuses as well as project completion bonuses. Leave pay bonuses are paid in December every year whereas project completion bonuses at this point will be paid once a project has been completed successfully.

 

Leave pay bonuses are provided for on a monthly basis whereas project completion bonuses are provided for monthly as a percentage of margins earned during the life of a project. The reversal of the unused project completion bonuses relates to the Ezulwini project, which has now been closed out.


























 

 

 





 





 

Year

Ended

31 March

2010

 

Year

Ended

31 March

2009






US$

US$








15

Investment income














Interest income




1 008 431

894 834








16

Financial expense














Interest expense




507 000

38 062








17

Profit before taxation and segmental information















Amortisation




6 402

5 638


Auditors remuneration  - audit services



93 600

93 599


Auditors remuneration - non audit services


29 137

9 516


Consulting fees




48 287

38 376


Depreciation




219 418

125 862


Operating lease expenses




347 620

221 594


Provision for bad debts




198 824

-


Total employee costs




4 003 911

3 024 067


Share based payments




203 623

667 074


Exchange rate differences




12 156

923 713









And after crediting:

 







Exchange rate differences




594 882

-









During the year revenue arising from the Group's major customer amounted to

 

32 674 020

 

33 180 167








18

Taxation














South Africa normal

- current



1 154 454

4 463 806


                                         

- deferred



195 275

(722 767)



- secondary tax on companies

221 672

-






1 571 401

3 741 039








Statutory Tax rate



0%

0%


South African tax rate



28%

28%


Permanent differences:






Non-deductible expenses



(1.2%)

4.6%


Non-taxable income



0%

(0.6%)


Capital gains tax



0%

0.3%


Secondary tax on companies



4.4%

0%


Effective tax rate



31.2%

32.3%







































 




 

Year

Ended

31 March

2010

 

Year

Ended

31 March

2009





US$

US$







19

Basic and diluted earnings per share










Basic earnings per share is based on the Group's net profit for the year attributable to equity shareholders divided by the weighted average number of ordinary shares in issue during the year.








Net profit attributable to equity holders



3 465 614

7 839 522








Basic earnings



3 465 614

7 839 522








Basic weighted number of ordinary shares


37 459 107

37 062 121


Diluted weighted number of ordinary shares


37 712 928

40 578 985








Basic earnings per share (US cents)



9.25

21 15


Diluted earnings per share (US cents)



9.19

19.32












Basic weighted average number of ordinary shares


37 459 107

37 062 121


Dilutive effect of weighted average share options


 163 821

3 516 864


Diluted weighted average number of ordinary shares

37 712 928

40 578 985







20

Note to the cash flow statement












Cash generated by operations






Profit before taxation



5 037 015

11 580 561


Depreciation and amortisation

Exchange rate differences



225 045

(594 882)

131 500

-


Provisions



58 745

829 966


Share based payments



203 623

667 074


Net interest received



(501 431)

(856 772)


Taxation paid



(2 608 645)

(4 402 240)





1 819 470

7 950 089








Working capital movements



(4 986 239)

(2 163 849)








Trade and other receivables



(2 859 853)

(4 618 396)


Trade and other payables



(2 126 386)

2 454 547








Cash (utilised) / generated by operations


(3 166 769)

5 786 240







































 

21

Share based payments


















The number and weighted average exercise price of the share options is as follows:


2010 Share options








Weighted average exercise price (pence/share)

Number of options


Outstanding at the beginning of the year



127.0

3 606 000


Granted during the year



143.7

80 000


Forfeited during the year



(111.6)

(1 204 666)


Exercised during the year



-

-


Outstanding at the end of the year



135.0

2 481 334








Exercisable at the end of the year       




1 640 333








2009 Share options









Weighted average exercise price (pence/share)

Number of options


Outstanding at the beginning of the year



-

-


Granted during the year



129.0

3 661 000


Forfeited during the year



145.0

(55 000)


Exercised during the year



-

-


Outstanding at the end of the year



127.0

3 606 000








Exercisable at the end of the year       




1 202 000








Options granted during 2010


Number of options

Option Price -  Pence

Fair Value - Pounds


20 May 2009


30 000

91.5

27 450


15 March 2010


50 000

175.0

87 500


Total


80 000


114 950














The inputs into the model were as follows:



Share Price




58p - 175p


Exercise Price




58p - 175p


Expected volatility




30%


Expected life (years)




4 - 5 years


Risk-free rate (%)




4.5%


Expected dividend yield (%)




7%










 

22

Financial instruments












The Group manages its capital to ensure that the Group will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of equity balances. The Group's overall strategy remains unchanged from 2009.







 

Year

Ended

31 March

2010

 

Year

Ended

31 March

2009





US$

US$








Capital risk management






Interest bearing debt



(40 679)

(55 768)








Cash and cash equivalents



10 095 698

13 967 314


Net funds



10 055 019

13 911 546


Equity



18 761 744

15 989 992








Categories of financial instruments






Financial assets






Cash and cash equivalents



10 095 698

13 967 314


Receivables - trade and other



9 820 565

6 953 231


Financial liabilities






At amortised cost



1 928 890

4 070 365








In the opinion of the directors, the fair value of all financial instruments is not materially different from their book values at year end.








Cash and cash equivalents all have a maturity of less than 5 months (2009: 3 months). Financial liabilities repayable within 1 year amount to US$ 1 914 619 and the balance of US$ 14 271 is repayable after the 1 year period.








Financial risk management objectives






Credit risk








 

Year

Ended

31 March

2010

 

Year

Ended

31 March

2009



US$

US$






Trade receivables ageing




Current trade receivables

1 481 095

4 759 344


Amounts in 30 to 60 days

1 482 326

584 503


Amounts in 60 to 90 days

1 748 571

364 633


Amounts in 90 days +

4 988 758

1 192 646


Total

9 700 750

6 901 126

 

 

 

 

The amounts over 30 days are considered overdue, but not impaired.





 

22

Financial instruments (continued)




Included in the above 90 days + balance is an amount of US$ 2 205 178 due from Ezulwini Mining Company (Pty) Ltd, which is the full and final settlement as determined during a mediation process. This settlement has been ratified by FIU's board with payment due before the end of August 2010, subject to the drawing up and signing of a full and final settlement agreement by both parties.

 

Further to the above, a gross amount of US$ 3 345 889 relating to Mine Waste Solutions (MWS) Phase 1b project remains unpaid. Most of this outstanding balance is older than 90 days and remains unpaid due to MWS stopping the project earlier this year, due to lack of funds. Subsequent to this First Uranium Corporation Limited has secured and raised $150 million by way of a private placement offering in secured convertible notes.




Market risk





Foreign currency risk




 

Year

Ended

31 March

2010

 

Year

Ended

31 March

2009



US$

US$


Cash and cash equivalents are held in the following currencies:




US Dollars

4 305 846

1 222 130


Euros (Euro: US$ =  0.7396)

621 004

3 808 375


AUS Dollars (AUS $: US$ = 1.0908)

458 112

45 576


South African Rand  (R: US$ = 7.3273)

4 643 709

8 891 233


Other

67 027

-



10 095 698

13 967 314











 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




 

Year

Ended

31 March

2010

 

Year

Ended

31 March

2009




US$

US$

23

Directors' emoluments










Executive directors





Emoluments


961 618

607 696


Share based payment


49 162

469 283




1 010 780

1 076 979







Non-executive directors





Fees


81 000

81 000


Share based payment


25 776

35 640




106 776

116 640


Total


1 117 556

1 193 619

 

Individual director's emoluments





Executive



Vehicle allowances

Total for year ended

Total for year ended



Basic Salary

 

Bonuses

  and

leave pay

31 March

2010

31 March

2009


Mr G S J Bennett

240 000

44 142

-

284 142

260 000


Mr D C de la Roche

168 735

36 008

7 042

211 785

87 696


Mr G O Lowman *

240 000

188 771

20 917

449 688

260 000


Mr M T Smith #

16 003

-

-

16 003

-


Total

664 738

268 921

27 959

961 618

607 696







Non-executive



Total for year ended

Total for year ended




Fees for Services

31 March

2010

31 March

2009


Mr W A Nairn


48 000

48 000

48 000


Mr M R Summers


33 000

33 000

33 000


Total


81 000

81 000

81 000







*Resigned, effective 14 March 2010





#Appointed, effective 15 March 2010










2010 Share Options

Total

1 April

2009

 

Options granted

 

Options lapsed

Average option price pence

Total

31 March 2010


Mr G O Lowman

1 250 000

-

(963 333)

92.80

286 667


Mr G S J Bennett

600 000

-

-

145.00

600 000


Mr D C de la Roche

100 000

-

-

146.50

100 000


Mr M T Smith

-

 50 000

-

175.00

50 000


Mr M R Summers

250 000

-

-

145.00

250 000


Total

2 200 000

50 000

(963 333)


1 286 667









Directors' interest in shares










24




 

25



 

26

Group entities










Name

Country of incorporation

Ownership

Principle activity


MDM Technical Africa (Pty) Limited

South Africa

100%

Mineral process engineering







MDM Engineering International Limited

British Virgin Islands

100%

Mineral process engineering







MDM Engineering Projects International Limited

British Virgin Islands

100%

Mineral process engineering









27

Operating lease commitments



 

Year

Ended

31 March

2010

 

Year

Ended

31 March

2009



US$

US$


The Group has entered into a lease commitment to rent premises. The breakdown of the future commitment is as follows:








0 - 1 year

310 618

216 906


1 - 5 years

1 698 630

1 081 212


5 years and beyond

-

448 130


Total

2 009 248

1 746 248





28

Exchange  rates













year end rate

7.3273

9.6266


year average rate

7.8099

8.8684





29

Dividends paid and proposed








-       A final dividend of US 7.5 cents per share, amounting to US$ 2 794 433 paid in respect of the
year ended 31 March 2009.

-       An interim dividend of US 3.75 cents per share, amounting to US$1 404 658 paid in respect of
the 6 month interim period to 30 September 2009.

 








 

 

 

 

 

 

 

 

 

 

 

 


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