Final Results

Africa Oilfield Logistics Limited / Ticker: AOL / Index: AIM / Sector: Support Services

17 December 2013

Africa Oilfield Logistics Limited ('Africa Oilfield' or the 'Company')

Final Results

Africa Oilfield Logistics Ltd, the AIM listed African focused support services and logistics company, announces its results for the period ended 30 June 2013.

CHAIRMAN'S STATEMENT

Africa Oilfield was established in December 2012 as an investment company focussed on the logistics and support service industry in sub-Saharan Africa. This geographic focus was chosen to capitalise on the resource boom currently underway in Africa, which includes two of the world's leading emerging resource development areas, namely the East African Rift Valley and the East African (including Mozambique) offshore gas exploration sector, in addition to prospective opportunities available in Madagascar, West and North Africa. 

To support the Company's strategy, Africa Oilfield raised £6.5 million (US$10 million) and listed on AIM in June 2013. In August the Company acquired a 49% interest in Ardan Risk & Support Services ('Ardan'), a provider of quality turn-key support services and logistics solutions to international corporate companies operating on the African continent. Head quartered in Nairobi and operating currently in Kenya, Ethiopia and Mauritius, Ardan provides Africa Oilfield with a foothold and an on-ground operating team in Africa, which the Company believes it can leverage to build a leading support services and logistics business. Discussions are continuing with Ardan as to expediting and maximising the benefits of full integration.

Africa Oilfield believes that the key to building a successful business is the experience of operating in Africa, the ability to attract the right people and a defined operational structure that enables a quality service provision. Ardan's divisional structure for a full spectrum of products and services is based on six key, distinct and focussed divisions, which are listed below.

· Engineering and Infrastructure Development, whose services range from well site, road and airstrip construction, to water treatment installation;

· Workforce Accommodation, which rents and sells remote workforce housing and modular workspace solutions and associated services;

· Facilities Management, which provides full turnkey lodging solutions including premium catering services, communication installation and environmental waste management;

· Medical Services, which provides a full range of internationally accredited advanced life support and general medical services including medi-vac, onsite medical facilities, and medical training;

· Procurement & Logistics, whose services range from procurement and warehousing, to transportation of industrial equipment and machinery to general logistical supply solutions; and

· Risk Management, which offers, full risk assessment programmes, and tailored security solutions and protocols

It is this multi-divisional structure that enables the servicing of multiple sectors and provides an internationally accredited and tailored service to meet the requirements of clients operating in all environments. An aggressive growth strategy is being implemented to expand the client base and build a highly scalable business offering.

As part of Ardan's strategy to widen and strengthen the competitive offering, in October 2013 an investment allowing for a 20% acquisition was made by Ardan into Energy Resources Group Africa Limited, a specialist provider of professional onshore and offshore safety, survival and emergency response training, targeting companies operating in the oil and gas industries. This builds a foundation relationship to the only such business in East Africa and will provide significant cross selling opportunities.

Financials

Africa Oilfield is reporting for the period ended 30 June 2013 a pre-tax loss on continuing activities of US$155,000. The Company has an adequate treasury and as at 30 June 2013 cash balances were US$9.2million

Outlook

Africa Oilfield is rapidly developing its business and fulfilling its strategy of becoming the support services and logistics company of choice servicing the sub-Saharan Africa resource sector. Resource development is critical to Africa's success and is being actively encouraged politically, creating a huge opportunity to expand the business both in terms of client numbers and geographically. Africa Oilfield with its first mover advantage, high calibre management team, quality projects with international blue chip clients both underway and in the pipeline, and a defined development strategy, is well placed to effect significant growth in the oilfield and resource services sector, in one of the world's leading resource development regions.

** ENDS **

For further information please visit www.africaoilfieldlogistics.com or contact:

FINANCIALS

STATEMENT OF COMPREHENSIVE INCOME

For the period ended 30 June 2013

STATEMENT OF FINANCIAL POSITION

As at 30 June 2013

CASH FLOW STATEMENT

For the period ended 30 June 2013

NOTES TO THE FINANCIAL STATEMENTS

For the period ended 30 June 2013

1. General Information

Africa Oilfield Logistics Limited is incorporated and domiciled in Guernsey. The nature of the Company's operations and its principal activities are set out in the Chairman's Statement above.

The presentational currency of the Company is US Dollars as this reflects the Company's planned business activities in the logistics sector in sub-Saharan Africa and therefore the Company's financial position and financial performance. The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union. 

Whilst the information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards ("IFRSs") as adopted by the European Union and as issued by the International Accounting Standards Board, this announcement does not itself contain sufficient information to comply with IFRSs or constitute statutory financial statements.

The financial information is based on the statutory accounts for the financial year ended 30 June 2013. The auditors reported on those accounts: their report was (i) unqualified, (ii) did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying the reports and (iii) did not contain statements where the auditor is required to report by exception.

The Company's Annual Report, will be available on the Company's website by 31 December 2013.

2. Income tax expense

The Company is resident for taxation purposes in Guernsey and its income is subject to Guernsey income tax, presently at a rate of zero. 

3. Loss per share

The calculation of the basic and diluted loss per share is based on the following data:

No options or instruments which might give rise to dilution were in issue during the year.

4. Share capital

The Company has one class of ordinary share which carries no right to fixed income.

Between incorporation and 25 February 2013, 22 million Ordinary Shares were issued for cash at a price of 0.1p per Ordinary Share.

Between 9 May 2013 and 6 June 2013, 115,621,596 Ordinary Shares were issued for cash at a price between 1.8p and 2p per Ordinary Share.

On 25 June 2013, 85,172,415 Ordinary Shares were issued for cash at a price of 5p per Ordinary Share.

Share capital issued during the period is stated net of share issue costs of $456,000. No share options or warrants were issued during the period.

On 9 August 2013, after the current financial year end, 32,979,355 Ordinary Shares were issued at a price of 8p per Ordinary Share. The issue of these shares was pursuant to the share purchase agreement between the Company and the current shareholders of Ardan Risk and Support Services (K) Limited ("Ardan Kenya") and Ardan Risk and Support Services Limited ("Ardan Mauritius") for the purchase of 49% of the shares of Ardan Kenya and Ardan Mauritius.