30th Jan 2014 12:16
LONDON (Alliance News) - Neos Resources PLC Thursday said it is in talks with its major shareholders over its financial position and future direction after admitting it will require "some additional funding" in order to retain its AIM listing and continue as a going concern.
The company, which had produced bio-fuels, said it now has become an investing company because it has decided that it should focus on safeguarding its remaining cash instead of attempting to conduct any business. The company will seek approval of "an investing policy" at its next annual general meeting.
The directors, who decided to stop trading after reaching the conclusion that the company wouldn't be able to make "sustainable profitable volumes in the near future", have waived any rights to receive remuneration for 2014 until further notice, according to a company statement.
In a addition, Neos said its delayed financial report annual report for the year ended June 2013 would be pushed back even further.
"[It] shall be published in due course but not by the end of January 2014 as previously anticipated," Neos said in a statement.
In December Neos said it would miss the deadline for its annual report after terminating its operations in India and switching management focus to Geneva.
"The wind down of the Indian business has continued as anticipated in the announcement dated October 15, 2013 and previous announcements. As a consequence, the residual Indian oil seed inventory balances were liquidated in December 2013," Neos said.
"The timing of any subsequent distribution/remittance from India to the group remains uncertain as it will be tied into the dissolution of the local entities - a process that the board has been advised should take twelve months to complete from now," the company added.
Meanwhile, the company gave an update on its cash balances, regarding the GBP250,000 contract settlement provision it set aside in its annual report for the 18 months ended June 30, 2012, and the interims to December 31, 2012.
Neos now expects the liability to amount to about GBP217,000 and will need to be paid in the next year, meaning the company expects its available cash balance to fall in the near future.
The provision was originally made in response to enquiries made by HMRC in relation to the income tax and national insurance contributions paid by Neos on certain employment contracts that were terminated in the 2008-9 and 2010-11 tax years. The company said it expects a "definitive assessment" to be issued shortly.
In addition, Neos said it will make a provision against a GBP417,831 balance due to it from Quinvita N.V, despite it being secured against the germplasm and animal feed intellectual property sold.
Neos said it made the decision because Quinvita has entered in to a "judicial reorganisation procedure" to seek protection from its creditors. Creditors will have an opportunity to vote on the judicial reorganisation plan in March 2014.
Neos shares remain suspended from trading.
By Samuel Agini; [email protected]; @samuelagini
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