Fenikso Limited - Interim Results

Announcement provided by

30/09/2024 07:00

RNS Number : 1137G

Fenikso Limited

30 September 2024

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

30^th September 2024

Fenikso Limited

("Fenikso" or "the Company")

Interim Results

Fenikso Limited (AQSE: FNK), the Cayman Islands enterprise company, is pleased to announce its unaudited interim results (the "Interim Report") for the six months ended 30 June 2024 (the "Reporting Period").

FINANCIAL REVIEW

Financial overview and performance

The Company reported a loss of US$126,000 for the six-month period ended 30 June 2024.

Net assets of the Company at the end of the Reporting Period were US$19.5 million. Cash balances as at the end of the Reporting Period were US$5.26 million.

OPERATIONS REPORT AND ASSET SUMMARY

The principal business of the Company is to manage and ensure the full recovery of the LOGI Loan. The Company has received payments under the LOGI Loan as at the end of 30 June 2024 amounting to US$3,522,176. A further US$2,278,318 has since been received post 30 June 2024. The Board will continue to monitor the compliance with the terms and conditions of the LOGI Loan. As at the end of June 2024 LOGI had complied with all conditions of the Settlement Deed save for the cancellation of certain shares in the Company owned by Lekoil Nigeria, Lekan Akinyami and Samuel Olutu. The total shares that should have been cancelled are 107,658,847 ordinary shares. On 2 August 2023 the Company announced the surrender of 106,443,637 ordinary shares held by Lekoil Nigeria to the Company for nil consideration had been completed. The remaining 1,215,210 ordinary shares are required to be surrendered by Lekoil Nigeria Limited. The Company is working with such parties to cancel such shares as soon as practicably possible.

Outlook

The Company has continued to accumulate cash over the first six months of the year. Since the end of June the Company has made its first investments in order to maximise the return on its cash whist it receives further payments under the LOGI loan.

This report was approved by the board on 27^th September 2024 and signed on its behalf.

Thomas Richardson

Chairman

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

Fenikso Limited

Thomas Richardson, Chairman

info@feniksoplc.com

First Sentinel Corporate Finance Ltd (AQSE Corporate Adviser)

Brian Stockbridge

+44 20 3855 5551

Statement of Comprehensive Income
For the six months ended 30 June 2024

		Unaudited	Unaudited	Audited
		30 June	30 June	31 December
		2024	2023	2023

		$000	$000	$000

OTHER OPERATING INCOME
Cost of sales		-	-	-
Gross (loss)		-	-	-
Fair value adjustment of receivables		-	-	2,109
Fair value adjustment borrowings		-	-	(1,582)
Administrative expenses
Recurring administrative costs		(126)	(224)	(366)
OPERATING LOSS		(126)	(224)	161
Finance income		-	-	-
Finance cost		-	-	-
LOSS FROM CONTINUING		(126)	(224)	161
ACTIVITIES BEFORE TAXATION
Tax expense		-	-	-
LOSS FOR THE PERIOD		(126)	(224)	161
ATTRIBUTABLE TO THE
EQUITY HOLDERS
TOTAL COMPREHENSIVE LOSS		(126)	(224)	161
ATTRIBUTABLE TO THE
EQUITY HOLDERS
Loss per share - basic		(0.0003)	(0.0003)	0.0003
Loss per share - diluted		(0.0003)	(0.0003)	0.0003
Statement of Financial Position
At 30 June 2024
		Unaudited	Unaudited	Audited
		30 June	30 June	31 December
		2024	2023	2023

		$000	$000	$000

CURRENT ASSETS
Fixed Assets		1	-	-
Trade and other receivables due within one year		2,853	2,474	6,336
Cash and cash equivalents		5,262	1,093	2,603
TOTAL CURRENT ASSETS		8,116	3,567	8,939
Trade and other receivables due after one year		20,211	26,120	20,251
TOTAL ASSETS		28,327	29,687	29,190
EQUITY
Share capital		25	30	25
Share premium account		264,729	264,729	264,729
Retained earnings		(245,201)	(245,465)	(245,075)
TOTAL EQUITY		19,553	19,294	19,679
CURRENT LIABILITIES
Trade and other payables due within one year		3,305	2,995	3,488
TOTAL CURRENT LIABILITIES		3,305	2,995	3,488
Trade and other payables due after one year		5,469	7,398	6,023
TOTAL LIABILITIES		8,774	10,393	9,511
TOTAL EQUITY AND LIABILITIES		28,327	29,687	29,190

Statement of Changes in Equity
For the six months ended 30 June 2024
	Share capital	Share	Retained	Total
		Premium	losses	shareholder
				equity
	$000	$000	$000	$000
Balance (restated) as at
31 December 2021	27	264,004	(229,844)	34,187
Loss for the period	-	-	(944)	(944)
Total comprehensive income for the period	27	264,004	(230,788)	33,243
Issue of ordinary shares	11	1,496	-	1,507
Total transactions with owners	11	1,496	-	1,507
Balance at 30 June 2022	38	265,500	(230,788)	34,750
Loss for the period	-	-	(14,453)	(14,453)
Total comprehensive income for the period	38	265,500	(245,241)	20,297
Issue of ordinary shares	2	367	-	369
Shares cancelled	(10)	(1,138)	-	(1,148)
Total transactions with owners	(8)	(771)	-	(779)
Balance at 31 December 2022	30	264,729	(245,241)	19,518
Loss for the period	-	-	(224)	(224)
Total comprehensive income for the period	30	264,729	(245,465)	19,294
Issue of ordinary shares	-	-	-	-
Total transactions with owners	-	-	-	-
Balance at 30 June 2023	30	264,729	(245,465)	19,294
Loss for the period	-	-	385	385
Total comprehensive income for the period	30	264,729	(245,080)	19,679
Issue of ordinary shares	-	-	-	-
Shares cancelled	(5)	-	5	-
Total transactions with owners	(5)	-	5	-
Balance at 31 December 2023	25	264,729	(245,075)	19,679
Loss for the period	-		(126)	(126)
Total comprehensive income for the period	25	264,729	(245,201)	19,553
Issue of ordinary shares	-	-	-	-
Total transactions with owners	-	-	-	-
Balance at 30 June 2024	25	264,729	(245,201)	19,553

Statement of Cashflows
For the six months ended 30 June 2024
		Unaudited	Unaudited	Audited
		6 months	6 months	Year
		ended	ended	ended
		30 June	30 June	31 December
		2024	2023	2023

		$000	$000	$000
Operating activities
Profit/(Loss) before taxation		(126)	(224)	161
Decrease in trade and other receivables		5,917	2,615	4,622
(Decrease) / increase in trade and other payables		(737)	(1,506)	(2,389)
Net cash used in operating activities		5,054	885	2,394
Cash Flows from Financing Activities
Loans received		-	-	-
Loan repayment via issue of shares		-	-	-
Net Cash generated from Financing Activities		-	-	-
Increase in cash and cash equivalents in period		5,054	885	2,394
Cash and cash equivalents at beginning of period		208	208	208
Cash and cash equivalents at end of period		5,262	1,093	2,602

Notes to the Interim Report
For the six months ended 30 June 2024

1. GENERAL INFORMATION

Fenikso Limited ("the Company") is a company incorporated and domiciled in the Cayman Islands. The address of the registered oﬃce is 190 Elgin Avenue, George Town, Grand Cayman KY1-9001, Cayman Islands. The Company's shares are traded on the Aquis Stock Exchange under symbol FNK and ISIN number KYG5462G1073.

2. BASIS OF PREPARATION

These condensed interim ﬁnancial statements do not include all of the information required for full annual ﬁnancial statements and should be read in conjunction with the ﬁnancial statements of the Company for the year ended 31 December 2023 which were prepared in accordance with EU-endorsed International Financial Reporting Standards ('IFRSs'), IFRIC interpretations as adopted by the EU. The ﬁnancial statements have been prepared under the historical cost convention except for ﬁnancial instruments and share based payments which are measured at fair value. Monetary amounts in these financial statements are rounded to the nearest $000. The interim financial statements for the six months ended 30 June 2024 are unaudited and have not been reviewed by the Company's auditors, Bright Grahame Murray. The comparative interim ﬁgures for the six months ended 30 June 2023 are also unaudited and are restated to reﬂect the adjustments made in the audited ﬁnancial statements for the year ended 31 December 2023 to the prior year comparatives for the year ended 31 December 2022. The accounting policies applied by the Company in the preparation of these condensed consolidated interim ﬁnancial statements are the same as those applied by the Company in its ﬁnancial statements for the year ended 31 December 2023.

3. EARNINGS PER SHARE

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

		Unaudited	Unaudited	Audited
		30 June	30 June	31 December
		2024	2023	2023

		$000	$000	$000
Profit/(Loss) for the period		(126)	(224)	161
Weighted average number of shares		492,953	599,396	492,953
Loss per share - diluted		(0.0003)	(0.0003)	0.0003

4. TRADE AND OTHER RECEIVABLES

		Unaudited	Unaudited	Audited
		30 June	30 June	31 December
		2024	2023	2023

		$000	$000	$000
Current - falling due within one year
Trade receivables		-	-	-
Other receivables		2,853	2,474	6,336
		2,853	2,474	6,336

Non current - falling due aft er one year
Other receivable		20,211	26,120	20,251
Total		20,211	26,120	20,251

Under the settlement deed of 7 December 2022, the Company granted a new loan of approximately US$51,919,467 to Lekoil Oil and Gas Investments Limited ("LOGI") (the "LOGI Loan") in consideration for the transfer of certain loans granted to Lekoil Nigeria and its related entities to LOGI, the release of security related to such loans and the waiver of any repayment of amounts due under such loans. The loan is to be repaid by 8.653% of the aggregate proceeds of the sales received from Shell Western in respect of each lifting of crude oil by LOGI. In the year 2023, the Company has announced it has received a total of US$6,731,883 as partial repayment of the loan of US$51,919,467. The amount received equates to 8.653% of the value of the crude oil sales by LOGI. The proceeds will go towards reducing the Company's creditor balances. At 31 December 2023, US$45,187,584 was due from LOGI. The Company has carried out an assessment of the value of the amounts due at 31 December 2023 on a discounted basis using a rate of 18.112% (2022: 16.821%) to effect a current market value of the loan of US$26,586,056. A gain of US$2,108,531 has been recognised in the statement of comprehensive income. The loan is being repaid by 8.653% of the aggregate proceeds of the sales received from Shell Western in respect of each lifting of crude oil by LOGI. During the period to 30 June 2024, the Company has announced it has received a total of US$3,522,176 as partial repayment of the loan of US$51,919,467.

5. TRADE AND OTHER PAYABLES

		Unaudited	Unaudited	Audited
		30 June	30 June	31 December
		2024	2023	2023

		$000	$000	$000
Current - falling due within one year
Trade payables		550	542	474
Other payables		2,573	2,020	2,783
Accruals		182	433	231
		3,305	2,995	3,488
Noncurrent - falling due after one year
Other payables		5,469	7,398	6,023
Total		8,774	10,393	9,511

Following the Settlement Deed, the Company entered into a loan agreement with Savannah Energy pursuant to which the Company agreed to pay Savannah Energy certain upfront payments together with 25% of all amounts received by the Company from LOGI pursuant to the LOGI Loan, subject to a maximum total payment of approximately US$16,256,159. The Company assessed the value of the loan amount at 31 December 2022 on a discounted basis using a rate of 16.821% to eﬀect a current market value of US$9,417,555. The diﬀerence of US$6,838,604 was recognised in the statement of comprehensive income. During the financial year of 2023, the Company made a total repayment of US$2,193,983 to SEIL. As at 31 December 2023, an amount of US$14,062,176 was due to Savannah Energy. The Company has assessed the value of the loan amount at 31 December 2023 on a discounted basis using a rate of 18.112% (2022: 16.821%) to effect a current market value of US$8,805,773. A loss of US$1,582,201 has been recognised in the statement of comprehensive income in the financial year of 2023.

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