COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

 

	Share capital	Share premium	Share scheme reserve	Retained earnings	Total equity
	£	£	£	£	£
At 1 January 2024	3,745,415	19,109,662	9,759	(12,528,297)	10,336,539
Comprehensive loss for the year
Loss for the year	-	-	-	(554,727)	(554,727)
Total comprehensive loss for the year	-	-	-	(554,727)	(554,727)
Contributions by and distributions to owners
Issue of share capital (Note 16)	55,374	1,041,293	-	-	1,096,667
Share issue costs	-	(60,083)	-	-	(60,083)
Total contributions by and distributions to owners	55,374	981,210	-	-	1,036,584
At 31 December 2024	3,800,789	20,090,872	9,759	(13,083,024)	10,818,396

 

 

 

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

 

Prior Financial Year

 

	Share capital	Share premium	Share scheme reserve	Retained earnings	Total equity
	£	£	£	£	£
At 1 January 2023	3,078,297	18,632,040	58,179	(11,928,028)	9,840,488
Comprehensive loss for the year
Loss for the year	-	-	-	(658,448)	(658,448)
Total comprehensive loss for the year	-	-	-	(658,448)	(658,448)
Contributions by and distributions to owners
Issue of share capital (Note16)	667,118	477,622	9,759	-	1,154,499
Transfer to/from retained earnings	-	-	(58,179)	58,179	-
Total contributions by and distributions to owners	667,118	477,622	(48,420)	58,179	1,154,499
At 31 December 2023	3,745,415	19,109,662	9,759	(12,528,297)	10,336,539

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

 

		2024		2023
	Note	£		£
CASH FLOWS FROM OPERATING ACTIVITIES
		(711,875)		(789,795)
Loss for the year
ADJUSTMENTS FOR
Depreciation of property, plant and equipment	7	69		205
Impairment losses on intangible assets	11	-		18,516
Impairment losses recognised on loans to associates		14,011		28,415
Loss from investments in associates	13	3,435		5,122
Finance income	6	(21,679)		(36,688)
Net foreign exchange loss		56,666		67,135
		(659,373)		(707,090)
MOVEMENTS IN WORKING CAPITAL:
Increase /(decrease) in trade and other receivables		3,136		(1,840)
(Increase)/decrease in trade and other payables		45,623		(56,468)
NET CASH USED IN OPERATING ACTIVITIES		(610,614)		(765,398)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Australia exploration fixed assets	11	(276,394)		(37,754)
Purchase of Pakistan project fixed assets	11	(64,324)		(61,806)
Proceeds from disposal of financial fixed assets		410,979		-
Payments for investments in associates	13			(68,446)
Issue of loans		(82,423)		(167,483)
Interest received	6	1,772		2,242
NET CASH USED IN INVESTING ACTIVITIES		(10,390)		(333,247)

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

 

CASH FLOWS FROM FINANCING ACTIVITIES
Issue of ordinary shares	16	1,096,667		1,213,000
Share issue costs		(60,083)		(58,500)
NET CASH FROM FINANCING ACTIVITIES		1,036,584		1,154,500
NET INCREASE IN CASH AND CASH EQUIVALENTS		415,580		55,855
Cash and cash equivalents at the beginning of year		203,526		150,905
Exchange gain / (loss) on cash and cash equivalents		91		(3,234)
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	25	619,197		203,526

 

 

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

 

		2024			2023
	Note	£			£
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the year		(554,727)			(658,448)
ADJUSTMENTS FOR
Depreciation of property, plant and equipment	10	69			205
Impairment loss recognised on other receivables		56,687			57,742
Loss from investments in associates		3,435			5,122
Finance income		(160,785)			(164,949)
Net foreign exchange loss		59,246			63,734
		(596,075)			(696,594)
MOVEMENTS IN WORKING CAPITAL:
Decrease in trade and other receivables		5,007			144,645
Increase / (decrease) in trade and other payables		36,994			(52,964)
Increase in loans to subsidiaries		(252,984)			(428,100)
NET CASH USED IN OPERATING ACTIVITIES		(807,058)			(1,033,013)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for investments in associates	13	-			(68,446)
Purchase of Australia Exploration Fixed assets		(230,000)			-
Proceeds from disposal of financial fixed assets		410,979			-
Interest received		1,772			2,242
NET CASH USED IN INVESTING ACTIVITIES		182,751			(66,204)

 

CASH FLOWS FROM FINANCING ACTIVITIES
Issue of ordinary shares		1,096,667		1,213,000
Share issue costs		(60,083)		(58,500)
NET CASH FROM FINANCING ACTIVITIES		1,036,584		1,154,500
NET INCREASE IN CASH AND CASH EQUIVALENTS		412,277		55,283
Cash and cash equivalents at the beginning of year		192,574		137,291
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	25	604,851		192,574

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 

1.         STATUTORY INFORMATION

 

Oracle Power PLC is a public company, limited by shares and registered and domiciled in England and Wales. It is the ultimate holding company of the Oracle Power PLC Group. The Group is primarily involved in an energy project, based on the exploration and development of coal and construction of a mine mouth power plant in Pakistan.  The Group also has two exploration projects in Western Australia and a green hydrogen project in Pakistan.  The presentation currency of the financial statements is Pounds Sterling (£). The Company's registered number and registered office address can be found in the General Information section of this report.

 

2.         ACCOUNTING POLICIES

 

2.1        Going concern

 

During the year under review, the Group experienced net cash outflows from its operating activities which it financed from existing cash resources held at the start of the year and cash received from the issue of new equity share capital. The Directors have considered the cash flow requirements of the Group over the next 12 months and believe that additional funding will be required to meet the Group's cash requirements over that period.  This additional cash requirement creates a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.  However, the Directors expect to be able to meet the funding requirements for the Group to continue as a going concern for at least 12 months from the date of the approval of these financial statements through the use of existing cash resources and further issue of new ordinary share capital and, consequently, the Directors consider it appropriate to adopt the going concern basis in the preparation of the financial statements.

 

2.2        Compliance with accounting standards

 

These financial statements have been prepared in accordance with UK adopted International Accounting Standards and IFRIC interpretations and with those parts of the Companies Act 2006 applicable to reporting groups under IFRS.

 

The financial statements have been prepared under the historical cost convention.

 

2.3        Significant accounting judgements, estimates and assumptions

 

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for revenues and expenses during the year and the amounts reported for assets and liabilities at the statement of financial position date. However, the nature of estimation means that the actual outcomes could differ from those estimates.

 

The key sources of estimation uncertainty that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are the measurement of any impairment on intangible assets and the estimation of share based payment costs.

 

The principal risk and uncertainty in respect of the intangible assets (exploration assets) is that the Group may not reach financial close. The Board has tested the intangible assets for impairment. For this test, the Board considered market values of the assets (where applicable); results from technical and feasibility studies and reports; and the possibility of future project options available. Based on this, the Board have concluded that no impairment provision is required. 

The Group determines whether there is any impairment of intangible assets on an annual basis.

 

At the balance sheet date, the intangible assets are carried forward at their cost of £5,795,108 (2023: £5,357,888) less impairment of £598,833 (2023: £598,833).

 

2.4        Basis of consolidation

 

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 31 December each year. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

 

Business acquisitions have been accounted for in accordance with IFRS 3, 'Business Combinations'. Fair values are attributed to the Group's share of net assets. Where the cost of acquisition exceeds the fair values attributed to such assets, the difference is treated as purchased goodwill and is capitalised.

 

2.5        Intangible assets

 

(i) Intangible fixed assets - Australia exploration costs

 

Expenditure on the acquisition costs, exploration and evaluation of interests in licences, including related finance and administration costs, are capitalised.  Such costs are carried forward in the statement of financial position under intangible assets and amortised over the minimum period of the expected future commercial production of gold in respect of each area of interest where:

 

a)   such costs are expected to be recouped through successful development and exploration of the area of interest or alternatively by its sale;

 

b)   exploration activities have not yet reached a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active operations in relation to the areas are continuing.

 

An annual impairment review is carried out by the Directors when specific facts and circumstances indicate that an impairment test is required, such as:

 

(1)  the period for which the entity has the right to explore in the specific area has expired during the period or will expire in the near future and is not expected to be renewed.

 

(2)  substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned.

 

(3)  exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area.

 

(4)  sufficient data exists to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful future development or by sale.

 

In any such case, or similar cases, the entity shall perform an impairment test in accordance with IAS 36. Any impairment loss is recognised as an expense in accordance with IAS 36

 

Australia exploration costs are carried at cost less any provision for impairment.

 

ii) Intangible fixed assets - Pakistan project costs

 

Expenditure on the Pakistan project to achieve final project approval prior to the start of mining operations including related finance and administration costs are capitalised.  Such costs are carried forward in the statement of financial position under intangible assets and amortised over the minimum period of the expected future commercial production of coal in respect of each area of interest

 

The Pakistan project costs are tested annually for impairment by comparing the carrying amount to the recoverable amount. Pakistan project costs are carried at cost less any provision for impairment.

 

2.6        Property, plant and equipment

 

Property, plant and equipment is stated at historical cost less accumulated depreciation. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

 

            Fixtures and fittings       -           15% on reducing balance

            Motor vehicles              -           20% on reducing balance

            Computer equipment     -           30% on reducing balance

 

2.7        Investments in subsidiaries

 

A subsidiary is an entity over which the Group has control. Investments in subsidiaries are stated at cost. The investments are reviewed annually and any impairment is taken directly to the statement of profit or loss. Investments in subsidiaries are fully consolidated within the Group financial statements from the date on which control is transferred to the Group and deconsolidated on the date when control ceases.

 

2.8        Investments in associates

 

An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

 

The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for in accordance with IFRS 5. Under the equity method, an investment in an associate or a joint venture is initially recognised in the consolidated statement of financial position at cost and adjusted thereafter to recognise the Group's share of the profit or loss and other comprehensive income of the associate or joint venture. When the Group's share of losses of an associate exceeds the Group's interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Group's net investment in the associate, the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

 

An investment in an associate is accounted for using the equity method from the date on which the investee becomes an associate or a joint venture. On acquisition of the investment in an associate, any excess of the cost of the investment over the Group's share of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within the carrying amount of the investment. Any excess of the Group's share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognised immediately in profit or loss in the period in which the investment is acquired.

 

The requirements of IAS 36 are applied to determine whether it is necessary to recognise any impairment loss with respect to the Group's investment in an associate or joint venture. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases.

 

The Group discontinues the use of the equity method from the date when the investment ceases to be an associate or joint venture, or when the investment is classified as held for sale. When the Group retains an interest in the former associate or joint venture and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with IFRS 9. The difference between the carrying amount of the associate or joint venture at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate or joint venture is included in the determination of the gain or loss on disposal of the associate or joint venture. In addition, the Group accounts for all amounts previously recognised in other comprehensive income in relation to that associate or joint venture on the same basis as would be required if that associate or joint venture had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognised in other comprehensive income by that associate or joint venture would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassified the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity method is discontinued. The Group continues to use the equity method when an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an associate. There is no remeasurement to fair value upon such changes in ownership interests.

 

When the Group reduces its ownership interest in an associate or a joint venture but the Group continues to use the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognised in the other comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities.

 

When a Group entity transacts with an associate or a joint venture of the Group, profits and losses resulting from the transactions with the associate or joint ventures are recognised in the Group's consolidated financial statements only to the extent of interests in the associate or joint venture that are not related to the Group.

 

2.9        Leasing

 

All leases held are either short term leases or are for low value assets. The rentals paid are charged to the statement of profit or loss on a straight-line basis over the period of the lease.

 

2.10      Foreign currency

 

In preparing the financial statements of each individual Group entity, transactions in currencies other than the entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

 

Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for exchange differences on foreign currency borrowings relating to assets under construction for

future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings;

 

For the purposes of presenting these consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated into pounds using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in equity (and attributed to non-controlling interests as appropriate).

 

On the disposal of a foreign operation (i.e. a disposal of the Group's entire interest in a foreign operation, a disposal involving loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.

 

In addition, in relation to a partial disposal of a subsidiary that includes a foreign operation that does not result in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences are re attributed to non-controlling interests and are not recognised in profit or loss. For all other partial disposals (i.e. partial disposals of associates or joint arrangements that do not result in the Group losing significant influence or joint control), the proportionate share of the accumulated exchange differences is reclassified to profit or loss.

 

Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the end of each reporting period. Exchange differences arising are recognised in other comprehensive income.

 

2.11      Employee benefits

 

Retirement benefit costs and termination benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the income statement in the period to which they relate.

 

2.12      Share-based payments

 

Share based payment transactions of the Company

Where equity settled share warrants are awarded to employees, the fair value of the warrants at the date of grant is charged to the statement of profit or loss over the vesting period. Non market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each statement of financial position date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of warrants that eventually vest. Market vesting conditions are factored into the fair value of all warrants granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether market vesting conditions are satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

 

Where terms and conditions of warrants are modified before they vest, the increase in the fair value of the warrants, measured immediately before and after the modification, is also charged to the statement of profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, the statement of profit or loss is charged with the fair value of goods and services received.

 

2.13      Financial instruments

 

Financial assets and financial liabilities are recognised in the Group's statement of financial position when the Group becomes a party to the contractual provisions of the instrument.

 

Financial assets and financial liabilities are initially measured at fair value, except for trade receivables that do not have a significant financing component which are measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

 

Financial Assets:

 

The Group classifies its financial assets other than investments in subsidiaries and associates as financial assets at amortised cost, at fair value through other comprehensive income (FVOCI) or at fair value through profit or loss (FVTPL). The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

 

A financial asset is measured at amortised cost if it is held within a business model whose objective is to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A financial asset is measured at FVOCI if it is held within a business model whose objective is achieved by collecting contractual cash flows and selling financial assets and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A financial asset is measured at FVTPL if it is not measured at amortised cost or at FVOCI.

 

All of the Group financial assets are currently classified at amortised cost.

 

Financial assets at amortised cost are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified as non current assets.

 

Trade receivables, with standard payment terms of between 30 to 65 days, are recognised and carried at the lower of their original invoiced and recoverable amount.

 

A loss allowance is recognised on initial recognition of financial assets held at amortised cost, based on expected credit losses, and is re measured annually with changes appearing in profit or loss. Where there has been a significant increase in credit risk of the financial instrument since initial recognition, the loss allowance is measured based on lifetime expected losses. In all other cases, the loss allowance is measured based on 12 month expected losses. For assets with a maturity of 12 months or less, including trade receivables, the 12 month expected loss allowance is equal to the lifetime expected loss allowance.

 

The Group's financial assets are disclosed in notes 14 and 15.

 

Financial Liabilities:

 

The Group classifies its financial liabilities at amortised cost or at FVTPL. A financial liability is measured at FVTPL if it is classified as held for trading, it is a derivative or it is designated as such on initial recognition, otherwise it is classified at amortised cost.

 

All of the Group's financial liabilities are currently classified at amortised cost.

 

Financial liabilities at amortised cost are subsequently measured at amortised cost using the effective interest method. They are classified as non current when the payment falls due more than 12 months after the year end date.

 

2.14      Cash and cash equivalents

 

Cash and cash equivalents for the purpose of the cash flow statement comprise cash and bank balances.

 

2.15 New Standards and Interpretations applied

 

There are no IFRSs or IFRIC interpretations that are effective for the first time for the financial year

beginning 1 January 2024 that would be expected to have a material impact on the Group.

 

New and revised standards not yet effective

Certain new accounting standards and interpretations have been issued but have not been applied by the Group in preparing these financial statements as they are not as yet effective. These standards are not expected to have a material impact on the Group in the current or future periods and on foreseeable future transactions with the exception of IFRS 18 Presentation and Disclosure in Financial Statements.  IFRS 18 when implemented from year ended 31 December 2027 will require additional analysis and disclosure for the Income Statement.

 

3.         SEGMENT INFORMATION

 

Based on risks and returns, the Directors consider that the primary business reporting format is by business segment which are currently:

 

1)   the principal activity of the Group which is an energy project developer, based on the exploration and proposed development of a coal mine and construction of a mine mouth power plant in Pakistan (the "Pakistan Energy Project");

2)   an investment in certain tenements in Western Australia for the exploration and future extraction of gold (the "Australia Gold Project"); and

3)   a green hydrogen project in Pakistan (the "Pakistan Green Hydrogen Project"). 

 

These segments are not yet revenue generating and the primary financial reporting metrics are the value of intangible assets relating to the projects and total spend to date.  The Pakistan Green Hydrogen Project is carried out through the Company's investment in associates which is not included in the analysis below.

 

To date the Group has raised a total of £22.74m and spent £18.0m on Thar Block VI and £0.9m on the Australia Gold Project net of impairment of £0.6m.

 

The following is an analysis of the Group's results by reportable segment in the year under review:

 

Segment Profit and Loss Statement	2024		2023
	£		£
Pakistan Energy Project	(5,113)		(31,727)
Australia Gold Project	(90,860)		(88,831)
Sindh Carbon Energy Project	-		(69,829)
Total reportable segment - loss before tax	(95,973)		(190,387)
Administrative expenses	(634,146)		(657,671)
Finance income	21,679		36,688
Other gains and losses	-		26,697
Share of the loss of associates using equity method	(3,435)		(5,122)
Loss before tax	(711,875)		(789,795)

 

The accounting policies of the reportable segments are the same as the Group's accounting policies described in note 2. Segment profit represents the profit earned by each segment without allocation of the share of profits of associates and joint ventures, central administration costs including directors' salaries, finance income, non operating gains and losses in respect of financial instruments and finance costs, and income tax expense. This is the measure reported to the Group's Chief Executive for the purpose of resource allocation and assessment of segment performance

 

Segment assets

 

For the purposes of monitoring segment performance and allocating resources between segments the Group's Chief Executive monitors the tangible, intangible and financial assets attributable to each segment. All non-current assets are allocated to reportable segments as shown below:

 

	2024	2023
	£	£
Pakistan Energy Project	4,663,961	4,255,005
Australia Gold and Copper Project	532,314	504,050
Pakistan Green Hydrogen Project	1,116,274	1,451,130
Total segment assets	6,312,549	6,210,185
Unallocated assets	3,435	2,202
Consolidated total assets	6,315,984	6,212,387

 

Other Disclosures for the Reportable Segments

 

	Depreciation &	Amortisation	Additions to	non‑current*
				assets*
	2024	2023	2024	2023
	£	£	£	£
Pakistan Energy Project	1,263	637	64,324	61,806
Australia Gold and Copper Project	-	-	276,394	37,754
	1,263	637	340,718	99,560

 

*These amounts exclude additions to financial instruments.

 

In addition to the depreciation and amortisation reported above, impairment losses of £nil (2023: £18,516) were recognised in respect of non‑current assets. These impairment losses were all attributable to the Australia Gold and Copper Project.

 

 

4.            EMPLOYEE BENEFITS EXPENSES

 

Group

					2024	2023
	EMPLOYEE BENEFIT EXPENSES (INCLUDING DIRECTORS) COMPRISE:
	Wages and salaries				286,695	265,000
	National insurance				5,345	2,494
	Defined contribution pension cost				4,027	3,750
					296,067	271,244

 

	All employee benefit expenses relate to key management personnel. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the directors of the Company listed on page 21, and the Financial Controller of the Company.
	The monthly average number of persons, including the directors, employed by the Group during the year was as follows:
					2024	2023
					No.	No.
	Directors				4	3
	Administration and production				1	1

 

5

4

 

	Company
					2024	2023
					£	£
	EMPLOYEE BENEFIT EXPENSES (INCLUDING DIRECTORS) COMPRISE:
	Wages and salaries				286,695	265,000
	National insurance				5,345	2,494
	Defined contribution pension cost				4,027	3,750
					296,067	271,244

 

 

All employee benefit expenses relate to key management personnel. Key management personnel are  those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the directors of the Company listed on page 21, and the financial Controller of the Company.

	The monthly average number of persons, including the directors, employed by the Company during the year was as follows:
					2024	2023
					No.	No.
	Directors				4	3
	Administration and production				1	1
					5	4

 

5.   DIRECTORS'S REMUNERATION

					2024	2023
					£	£
	Directors' emoluments				226,300	210,000
	Group contributions to pension schemes				2,622	2,100
					228,922	212,100

 

During the year, no directors (2023 ‑ no directors) exercised share options.

 

No directors (2023 - 0 directors) had retirement benefits accruing under money purchase schemes.

 

	The highest paid director's emoluments were as follows:
					2024	2023
					£	£
	Total emoluments and amounts receivable under long‑term incentive schemes (excluding shares)				150,000	150,000
					150,000	150,000

 

The highest paid director exercised no share options during the year (2023: none) and has no retirement benefits accruing under money purchase schemes (2023: none).

 

6.   FINANCE INCOME AND EXPENSE

 

 

	Recognised in profit or loss
		2024		2023
		£		£
	Finance income
	Interest on:
	‑ Bank deposits	1,772		17,186
	TOTAL INTEREST INCOME ARISING FROM FINANCIAL ASSETS MEASURED AT AMORTISED COST	1,772		17,186
	Share of associates' interest receivable	19,907		19,502
	TOTAL FINANCE INCOME	21,679		36,688
	NET FINANCE INCOME RECOGNISED IN PROFIT OR LOSS	21,679		36,688

 

7.   LOSS BEFORE INCOME TAX

 

The loss before income tax is stated after charging / (crediting):

 

	2024	2023
	£	£
Depreciation ‑ owned assets	68	205
Impairment of debtors	14,011	46,931
Auditors' remuneration	40,769	37,203
Foreign exchange differences	59,246	63,734

 

In addition to the depreciation charges shown above, the Group incurred charges of £1,263 (2023: £637) which have been capitalised as exploration costs by the subsidiary company in accordance with the Group's accounting policy.

 

8.   INCOME TAX

 

Analysis of tax expense 
No liability to UK corporation tax arose for the year ended 31 December 2024 nor for the year ended 31 December 2023.

 

Factors affecting the tax expense           
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

 

	2024	2023
	£	£
Loss before income tax	(711,875)	(789,795)
Loss multiplied by the standard rate of corporation tax in the UK of 25% (2023 ‑ 25%)	(177,969)	(197,449)
Effects of:
Foreign losses of subsidiaries	18,235	31,101
Inter‑company items eliminated	19,732	(573)
Disallowed expenses	2,675	8,956
Potential deferred taxation on losses for year	137,327	157,965
	-	-

 

The Group and Company has estimated UK excess management charges of £11,580,629 (2023: £11,597,714) to carry forward against future income. The overseas subsidiaries have losses of £792,125 (2023: £722,849) which will be carried forward to offset future profits. There is no charge for foreign taxation for the year (2023: nil).

 

The Group does not account for deferred taxation on losses as it considers the timing of achieving recurring profitability is uncertain.  There are no undistributed subsidiary or associate profits that would require the Group to recognise a deferred tax liability.

 

 

9.   EARNINGS PER SHARE

 

	(i) Basic earnings per share
		2024		2023
		Pence		Pence
	From continuing operations attributable to the ordinary equity holders of the Company	(0.01)		(0.02)
	TOTAL BASIC EARNINGS PER SHARE ATTRIBUTABLE TO THE ORDINARY EQUITY HOLDERS OF THE COMPANY	(0.01)		(0.02)
	(ii) Diluted earnings per share
	From continuing operations attributable to the ordinary equity holders of the Company	(0.01)		(0.02)
	TOTAL DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO THE ORDINARY EQUITY HOLDERS OF THE COMPANY	(0.01)		(0.02)
	(iii) Reconciliation of earnings used in calculating earnings per share
		2024 £		2023 £
	LOSS ATTRIBUTABLE TO THE ORDINARY EQUITY HOLDERS OF
	THE COMPANY USED IN CALCULATING BASIC EARNINGS PER SHARE:
		(711,875)		(789,795)
	From continuing operations
		(711,785)		(789,795)
	LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO THE ORDINARY EQUITY HOLDERS OF THE COMPANY:
	Used in calculating basic earnings per share	(711,875)		(789,795)
	USED IN CALCULATING DILUTED EARNINGS PER SHARE	(711,875)		(789,795)
	LOSS ATTRIBUTABLE TO THE ORDINARY EQUITY HOLDERS OF THE COMPANY USED IN CALCULATING DILUTED EARNINGS PER SHARE	(711,875)		(789,795)

 

 

	(iv) Weighted average number of shares used as the denominator
						2024	2023
						Number	Number
	Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share				6,555,666,212			3,696,910,701
	WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES AND POTENTIAL ORDINARY SHARES USED AS THE DENOMINATOR IN CALCULATING DILUTED EARNINGS PER GROUP				6,555,666,212			3,696,910,701

 

At the year end, there were 613,544,706 warrants outstanding (2023: 113,544,706) that could potentially dilute basic earnings per share in the future but were not included in the calculation of diluted earnings per share because they are antidilutive for the period(s) presented.

 

Post the reporting period end, the Company entered into transactions to issue 1,803,652,968 ordinary shares with associated options, which if exercised would involve the issue of a further 913,442,009 ordinary shares which will be assessed in the earnings per share calculation in the next accounting year.

 

10.      PROPERTY, PLANT AND EQUIPMENT

 

	Motor vehicles			Computer equipment			Total
	£			£			£
Group
Cost or valuation
At 1 January 2023	12,953			4,120			17,073
Foreign exchange movements	(3,067)			(614)			(3,681)
At 31 December 2023	9,886			3,506			13,392
Additions	-			1,839			1,839
Foreign exchange movements	284			95			379
At 31 December 2024	10,170			5,440			15,610
		Motor vehicles			Computer equipment		Total
		£			£		£
ACCUMULATED DEPRECIATION AND IMPAIRMENT
At 1 January 2023		10,282			2,906		13,188
Charge for the year		421			421		842
Foreign exchange movements		(2,448)			(394)		(2,842)
At 31 December 2023		8,255			2,933		11,188
Charge for the year		739			591		1,330
Foreign exchange movements		(165)			(178)		(343)
At 31 December 2024		8,829			3,346		12,175
Net book value
At 31 December 2023		1,631			571		2,202
At 31 December 2024		1,341			2,094		3,435

 

 

	Company
					Computer equipment
					£
	Cost or valuation
	At 1 January 2023				1,524
	At 31 December 2023				1,524
	At 31 December 2024				1,524

 

 

	Computer equipment
	£
ACCUMULATED DEPRECIATION AND IMPAIRMENT
At 1 January 2023	1,250
Charge for the year	205
At 31 December 2023	1,455
Charge for the year	69
At 31 December 2024	1,524
Net book value
At 31 December 2023	69
At 31 December 2024	0

 

 

11.      INTANGIBLE ASSETS

 

Group Australia Exploration Costs Australia Exploration Costs - Copper Pakistan Project Costs Total £ £ £ £   COST   At 1 January 2023 1,074,240 - 4,529,390 5,603,630 Additions ‑ external 37,754 - 61,806 99,560 Foreign exchange movement (9,111) - (336,191) (345,302) At 31 December 2023 1,102,883 - 4,255,005 5,357,888 Additions ‑ external 19,814 256,580 64,324 340,718 Foreign exchange movement (18,129) 114,631 96,502 At 31 December 2024 1,104,568 256,580 4,433,960 5,795,108

 

		Australia Exploration Costs	Australia Exploration Costs - Copper			Pakistan Project Costs		Total
		£	£			£		£
	ACCUMULATED AMORTISATION AND IMPAIRMENT
	At 1 January 2023	580,334	-			-		580,334
	Impairment charge	18,516	-			-		18,516
	Foreign exchange movement	(17)	-			-		(17)
	At 31 December 2023	598,833	-			-		598,833
	Impairment charge	-	-					-
	Foreign exchange movement	-	-			-		-
	At 31 December 2024	598,833	-			-			598,833
	Net book value
	At 1 January 2023	493,906	-			4,529,390		5,023,296
	At 31 December 2023	504,050	-			4,255,005		4,759,055
	At 31 December 2024	505,735	256,580			4,433,960		5,196,275

 

The Group's Australia Exploration costs of £505,735 (2023: £504,050), Australia Exploration - Copper costs of £256,580 and Pakistan Project Costs of £4,433,960 (2023: £4,255,005) are currently being carried forward at net book value in the financial statements. The Group will need to raise funds to reach financial close on all three projects. Financial close involves the raising of finance, potentially both debt and equity for the construction and start-up of a future mine and the proposed construction of a power plant. If the Group is ultimately unable to raise such finance, some of the assets may require impairment.

 

Company

 

	Australia Exploration Costs	Australia Exploration Costs - Copper	Pakistan Project Costs	Total
	£	£	£	£
COST
At 1 January 2023	626,458	-	3,352,393	3,978,851
At 31 December 2023	626,458	-	3,352,393	3,978,851
Additions	-	230,000	-	230,000
At 31 December 2024	626,458	230,000	3,352,393	4,208,851

 

 

	Australia Exploration Costs	Australia Exploration Costs - Copper	Pakistan Project Costs	Total
	£	£	£	£
ACCUMULATED AMORTISATION AND IMPAIRMENT
At 1 January 2023 31 December 2023 and 2024	313,229	-	-	313,229
Net book value
At 1 January 2023	313,229	-	3,352,393	3,665,662
At 31 December 2023	313,229	-	3,352,393	3,665,662
At 31 December 2024	313,299	230,000	3,352,393	3,895,622

 

 

 

An impairment charge of £nil (2023: £nil) was recognised in the year by the Company. During the 2023 financial year, the Directors reviewed the Australia Exploration costs asset and following the receipt of geology reports commissioned by the Company which indicated insufficient potential gold levels in the Jundee East tenement, the Company determined the recoverable amount of the exploration costs on this project to be zero based on the expectation of no cash inflows.

 

The Company's remaining Australia Exploration costs of £313,299 (2023: £313,229), Australia Exploration - Copper costs of £230,000 (2023: £nil) and Pakistan Project Costs of £3,352,393 (2023: £3,352,393) are currently being carried forward at net book value in the financial statements. The Group will need to raise funds to reach financial close on both projects. Financial close involves the raising of finance, potentially both debt and equity for the construction and start-up of a future mine and the proposed construction of a power plant. If the Group is ultimately unable to raise such finance, some of the assets may require impairment.

 

12.      INVESTMENTS

 

Company
	Shares in     group       undertakings £
Cost and Net Book Value
At 1 January 2024	2,898,531
Disposals	-
At 31 December 2024	2,898,531

 

The Company's investments at the Statement of Financial Position date in the share capital of companies include the following:

 

Subsidiaries

Sindh Carbon Energy Limited
Registered office: 44/2, Street B‑6, Phase V, Off Khyaban e Shaheen, Defense Housing Authority, Karachi, Pakistan.
Nature of business: Coal exploration and mining.

 

Class of shares	% holding
Ordinary shares of Rs 10 each	100 (2023:100

 

	2024	2023
	£	£
Aggregate capital and reserves	547,450	547,450
Loss for the year	nil	69,829

 

 

The subsidiary company was incorporated in Pakistan on 23 January 2007 for the exploration and future extraction of coal in Pakistan.  Oracle Power PLC agreed to acquire 80% of the ordinary share capital of the company at par, fully paid in cash.

 

On 14 March 2016 Oracle Power PLC took up a rights issue to acquire a further 9,000,000 ordinary shares of the company at par for consideration of £603,141. The acquisition was settled through a reduction of the inter company loan and increased the holding in the subsidiary to 98%.

 

On 12 March 2018 Oracle Power PLC acquired the remaining 2% of Sindh Carbon Energy Limited. This was acquired via a share for share exchange whereby Oracle Power PLC issued 95,652,174 shares in exchange for the remaining 199,999 ordinary shares of Sindh Carbon Energy Limited.

 

The investment in share capital for the 100% holding amounts to £2,867,256 (2023: £2,867,256).

 

Thar Electricity (Private) Limited
Registered office: PIA Building, 3rd Floor, 49, Blue Area, Fazlul Haq Road, Islamabad, Pakistan
Nature of business: Energy production

 

Class of shares	% holding
Ordinary shares of Rs 10 each	100 (2023: 100)

 

 

	2024	2023
	£	£
Aggregate capital and reserves	(244,099)	(248,292)
Loss for the year	(5,113)	(31,727)

 

The subsidiary company was incorporated in Pakistan on 17 June 2015 for the future generation of electricity in Pakistan.  Oracle agreed to acquire 100% of the ordinary share capital of the company at par, fully paid in cash.

The investment in share capital for the 100% holding amounted to £31,075 (2023: £31,075).

 

Oracle Gold Limited
Registered office: Tennyson House, Cambridge Business Park, Cambridge, England, CB4 0WZ
Nature of business: Administration and financial support

 

Class of shares	% holding
Ordinary shares of £1 each	100 (2023: 100)

 

 

	2024	2023
	£	£
Aggregate capital and reserves	100	100

 

The subsidiary company was incorporated on 29 October 2020 but has not yet commenced trading and had no profit or loss for the year (2023: Nil).

The investment in share capital for the 100% holding amounted to £100 (2023 £100).

The Company has guaranteed all outstanding liabilities of the subsidiary company as at 31 December 2024.  The subsidiary company has taken an exemption from preparing and filing accounts as per the provisions of Section 394A, 394C and Section 448A, and 448C of the Companies Act 2006.

 

Oracle Gold Resources Limited
Registered office: Tennyson House, Cambridge Business Park, Cambridge, England, CB4 0WZ
Nature of business: Administration and financial support

 

Class of shares	% holding
Ordinary shares of £1 each	100 (2023: 100)

 

 

	2024	2023
	£	£
Aggregate capital and reserves	100	100

 

The subsidiary company was incorporated on 29 October 2020 but has not yet commenced trading and had no profit or loss for the year (2023: Nil).         

The investment in share capital for the 100% holding amounted to £100 (2023 £100).         

The Company has guaranteed all outstanding liabilities of the subsidiary company as at 31 December 2024.The subsidiary company has taken an exemption from preparing and filling accounts as per the provision of Section 394A, 394C and Section 448A, and 448C of the Companies Act 2006.

 

Oracle Gold Pty Limited
Registered office: Suite 23, 513 Hay Street, Subiaco, WA 6008
Nature of business: Gold exploration and mining

 

Class of shares	% holding
Ordinary shares of AUD $1 each	100 (2023: 100)

 

 

	2024	2023
	£	£
Aggregate capital and reserves	(503,988)	(476,843)
Loss for the year	(90,860)	(88,831)

 

The subsidiary company was incorporated in Australia on 16 November 2020 for the exploration and potential future extraction of gold. On the same date, Oracle acquired licences to operate two gold projects in Western Australia. These projects are managed and operated by the company. The acquisition of the projects was satisfied by way of a cash payment of £90,000 by the parent company, Oracle, and the issue of 42,857,143 new ordinary shares of 0.1 pence and warrants to potentially subscribe for a further 42,857,143 Ordinary Shares in Oracle exercisable at a price of 1.1p each.  

The investment in share capital for the 100% holding amounted to £0.56 (2023: £0.56).

 

13.  INVESTMENTS IN ASSOCIATES

 

Company
	Shares in associate undertakings
Cost	£
At 1 January 2023	668,782
Additions	68,446
Share of loss of associates using equity method	(5,122)
At 31 December 2023	732,106
Share of loss of associates using equity method	(3,435)
At 31 December 2024	728,671

 

The Company's investments at the Statement of Financial Position date in the share capital of associate companies include the following:

 

Associates

Oracle Energy Limited
Registered office: House No 91, Shahrah‑E‑Iran, Block 5 Clifton, Karachi, Saddar Town, Karachi South, Sindh
Nature of business: Energy production

 

 

 

Class of shares	% holding
Ordinary shares of Rs 10 each	30 (2023:30)

 

 

	2024	2023
	£	£
Aggregate capital and reserves	2,624,537	1,819,876
Loss for year	(6,763)	(7,820)

 

The associate company was incorporated in Pakistan on 19 November 2023 for the future generation of power.   

The investment in share capital for the 30% holding amounted to £724,861 (2023: 30% £726,848).

 

Oracle Energy FZCO Limited
Registered office: FD‑172.0, Floor No. 18, Sheikh Rashid Tower, Dubai World Trade Centre, Dubai, United Arab Emirates
Nature of business: Energy production

 

Class of shares	% holding
Ordinary shares of AED 1,000 each	30 (2023: 30)

 

	2024	2023
	£	£
Aggregate capital and reserves	16,491	16,491
Loss for year	(5,057)	(5,057)

 

The associate company was incorporated on 5 October 2023.

The investment in share capital for the 30% holding amounted to £6,788 (2023: £6,788).

 

Summarised financial information in respect of each of the Group's material associates is set out below. The summarised financial information below represents amounts in associates' financial statements prepared in accordance with IFRS Accounting Standards.

	Oracle Energy Ltd		Oracle Energy Ltd		Oracle Energy FZCO Ltd		Oracle Energy FZCO Ltd
	2024		2023		2024		2023
	£		£		£		£
Current assets	306,067		301,488		2,724		3,377
Non‑current assets	2,356,064		2,097,536		776,403		655,171
Current liabilities	(37,595)		(18,897)		(757,508)		(642,057)
Non-current liabilities	(693,876)		(560,252)
	1,930,660		1,819,875		21,619		16,491
Equity attributable to owners of the associate	1,351,462		1,273,913		15,133		11,544
Non‑controlling interest	579,198		545,962		6,486		4,947
	1,930,660		1,819,875		21,619		16,491
(Loss)/profit for the year from continuing operations	(6,624)		(8,071)		4,917		5,057

 

The associates have no revenue, discontinued operations, or other comprehensive income to disclose.  (loss) / profit from continuing operations is equivalent to total comprehensive income.

 

The non‑controlling interest shown in the table above comprises the Group's interest in the associated undertaking.

 

There is no significant restriction on the ability of associates to transfer funds to the Group in form of cash dividends, or to repay loans or advances made by the Group.

 

14.  LOANS AND OTHER FINANCIAL ASSETS

 

 

Group	2024	2023
	£	£
Financial assets	-	407,291
Loans to associate undertakings	387,603	311,733
	387,603	719,024

 

The financial asset of £nil (2023: £407,291) represents the cash used to collateralise a performance guarantee for US$500,000 issued in favour of the Director General, Coal Mines Development Department to cover company obligations under its mining lease. The guarantee was originally valid up to the earliest of the date commercial operations begin, three years from the date of issue, or 2 February 2018. This was last extended to 31 January 2024. During the year, the Company decided not to renew the bank guarantee and this cash balance was returned to the Company.

Group	Loans to associate undertakings
	2024		2023
	£		£
At 1 January 2024	311,733		155,009
New in year	144,081		210,924
Impairment	(68,211)		(54,200)
At 31 December 2024	387,603		311,733

           

                       

 

Company	2024	2023
	£	£
Loans to group undertakings	2,475,571	2,238,299
Loans to associate undertakings	336,300	281,196
Financial assets	-	407,291
	2,811,871	2,926,786

 

Company	Loans to Group undertakings	Loans to associate undertakings
	£	£
At 1 January 2023	2,035,196	144,952
New in year	630,840	190,444
Impairment	(396,726)	(54,200)
Exchange differences	(31,011)
31 December 2023	2,238,299	281,196
New in year	726,943	123,315
Impairment	(439,402)	(68,211)
Exchange differences	(50,269)	-
31 December 2024	2,475,571	336,300

 

Company	2024	2023
	£	£
Financial assets	-	407,291

 

 

Included in the loans to Group undertakings shown above, during the period Oracle Power PLC made loans to its subsidiaries totalling £nil (2023: £nil) to Sindh Carbon Energy Limited, £61,559 (2023: £67,736) to Thar Electricity (Private) Limited and £59,376 (2023: £14,907) to Oracle Gold Pty Limited. 

 

The amounts outstanding at the statement of financial position date were £1,078,588 (2023: £1,078,588) due from Sindh Carbon Energy Limited, £647,192 (2023: £585,633) due from Thar Electricity (Private) Limited, of which £31,753 is denoted in USD of $42,980 and £644,638 (2023: £585,262) due from Oracle Gold Pty Limited. Interest accrues on a daily basis at a rate of 1% over the Bank of England base rate. The loans are unsecured and although they are repayable on demand, they are unlikely to be repaid until the project becomes successful and the subsidiaries start to generate revenues. The loans were reviewed for impairment and an impairment charge of £439,402 (2023: £396,792) was recognised in the year.

 

The subsidiaries and associate loans are considered recoverable.

 

15.    TRADE AND OTHER RECEIVABLES

	Group	Group	Company	Company
	2024	2023	2024	2023
	£	£	£	£
Current:
Other receivables	7,751	7,751	7,751	7,751
VAT	19,435	20,707	16,475	19,415
Prepayments and accrued income	16,587	18,451	14,616	16,683
	43,773	46,909	38,842	43,849

 

 

16.       CALLED UP SHARE CAPITAL

 

	2024	2023
	£	£
Allotted, issued and fully paid Ordinary shares of 0.001p
10,272,823,185 (2023: 4,735,415,387)	3,800,789	3,745,415

 

The shares issued during the year were as follows:

Date issued	Class of shares allotted	Number of shares allotted	Nominal value of each share	Amount paid (including share premium) on each share
12April 2024	Ordinary	136,986,301	0.001p	0.0219p
17 May 2024	Ordinary	1,666,666,667	0.001p	0.018p
12 June 2024	Ordinary	913,242,009	0.001p	0.0219p
20 November 2024	Ordinary	1,153,846,154	0.001p	0.013p
18 December 2024	Ordinary	1,666,666,667	0.001p	0.025p

 

On 4 October 2023, the Company completed a share reorganisation and each ordinary share of 0.1p was replaced with a new ordinary share of 0.001p and a deferred share of 0.099 pence.

 

The number of shares in issue is summarised as follows:

	2024	2023
	No.	No.
At 1 January	4,735,415,387	3,078,297,740
Issued during the year	5,537,407,798	1,657,117,647
At 31 December	10,272,823,185	4,735,415,387

 

At 31 December 2024, the total warrants in issue were 613,544,706 (2023: 113,544,706) comprising warrants issued to investors and brokers (see note 23).

 

17.  RESERVES

 

The following is a description of each of the reserve accounts that comprise equity shareholders' funds:

 

Share premium

 

The share premium comprises the excess value recognised from the issue of ordinary shares at par.

 

Share scheme reserve

 

Cumulative fair value of warrants charged to the statement of comprehensive income net of transfers to the profit and loss reserve on exercised and cancelled/lapsed warrants.

 

Foreign exchange reserve

 

Cumulative gains and losses on translating the net assets of overseas operations to the presentation currency.

 

Retained earnings

 

Retained earnings comprise the Group's cumulative accounting profits and losses since inception.

 

 

18.  TRADE AND OTHER PAYABLES

 

	GROUP	GROUP	COMPANY	COMPANY
	2024	2023	2024	2023
	£	£	£	£
Current
Trade payables	98,609	71,282	78,258	56,732
Other payables	20,515	9,015	20,348	8,855
Accruals and deferred income	73,064	66,268	61,386	57,411
	192,188	146,565	159,992	122,998

 

19.  LEASING AGREEMENTS

 

Expense and net cash outflow incurred under leasing agreements

 

Group	2024	2023
	£	£
Short term leases	-	9,008
	-	9,008
Company
Short term leases	-	8,663
	-	8,663

 

 

20.  FINANCIAL RISK MANAGEMENT

 

The carrying value of the Group's financial assets and liabilities at the balance sheet date of the year under review are categorised as follows:

 

	2024	2023
	£	£
Financial assets ‑ at amortised cost
Cash and bank balances	619,197	203,526
Receivables denominated in foreign currency	-	407,291
Financial liabilities ‑ at amortised cost
Trade and other payables	119,124	80,297

 

The main purpose of these financial instruments is to finance the Group's operations. The Board regularly reviews and agrees policies for managing the level of risk arising from the Group's financial instruments as summarised below.

a) Market Risk    
Market risk is the risk that changes in market prices, such as commodity prices, foreign exchange rates, interest rates and equity prices will affect the Group's income or value of its holdings in financial instruments.    

i) Foreign Exchange Risk          
The Group operates internationally and is exposed to foreign exchange risk arising from currency exposures. The Group is exposed to currency risk on cash and cash equivalents, loans, receivables and payables that are denominated in currencies other than sterling which is the functional currency of the Group.           

The Group's net exposure to foreign currency risk at the reporting date is as follows:

 

	2024	2023
	£	£
Pakistan Rupees	(15,690)	(4,489)
US Dollars	128,695	392,696
Australian Dollars	197	(1,952)
	113,202	386,255

 

 

The Directors have reviewed historical exchange rates and consider that a 10 percent weakening of sterling against the US Dollar or Australian Dollar would be a reasonable basis for sensitivity analysis.  By the same method the Directors consider that a 50% weakening of sterling against the Pakistan Rupee would be a reasonable basis for sensitivity analysis.  The Directors reviewed the foreign currency balances and modelled the effect of the % change in foreign exchange rates.  A 10% weakening of sterling against the US Dollar or Australian Dollar at 31 December 2024 and a 50% weakening against the Pakistan Rupee would reduce net profit before tax by approximately £6,000 (2023: £35,000 increase).

 

Differences that arise from the translation of these foreign currency cash equivalents and loans to sterling at the year end rates are recognised in other comprehensive income in the year and the cumulative effect as a separate component in equity. The Group does not hedge this translation exposure in profits and equity.

 

ii) Interest Rate Risk

The Group has interest bearing accounts and has earned interest income of £1,772 (2023: £17,186) in the year. Given the level of interest income earned in the year, interest rate risk is not considered to be material to the Group.

 

b) Liquidity Risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's policy throughout the year has been to ensure that it has adequate liquidity to meet its liabilities when due by careful management of its working capital.

 

The following tables illustrate the contractual maturity profiles of its financial liabilities, all of which are repayable within one year, as at 31 December:

 

	2024	2023
	£	£
Maturity up to one year:
Trade and other payables	119,121	80,297

 

c) Fair Values of Financial Assets and Liabilities

The carrying value of all financial assets and liabilities in the financial statements approximate their fair values.

 

Loss allowance

d) Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The Group does not hold any collateral. Credit risk in relation to cash held with financial institutions is considered low, given the credit rating of these institutions.

 

The Group's principal financial assets are the cash and cash equivalents and taxation receivable as recognised in the statement of financial position, and which represent the Group's maximum exposure to credit risk in relation to financial assets.  At the year end the Group held £619,197 (2023: £203,526) cash and cash equivalents; £nil (2023: £407,291) other financial assets held with financial institutions; and £19,356 (2023: £20,805) taxation receivable.  The Group's financial assets are considered to be of a high credit rating.

 

At the year end, the Company held £604,851 (2023: £192,574) cash and cash equivalents; £nil (2023: £407,291) other financial assets held with financial institutions; and £16,475 (2023: £19,415) taxation receivable.  These financial assets are considered to be of a high credit rating.

 

The Company has made unsecured loans to its subsidiaries of £1,078,588 (2023: £1,078,588) to Sindh Carbon Energy Limited, £647,192 (2023: £585,633) to Thar Electricity (Private) Limited and £644,638 (2023: £585,262) to Oracle Gold Pty Limited. During the 2023 financial year, interest previously reported in current assets was reclassified against the loans and shown in the balances above, total £nil (2023: £240,225).  Although they are repayable on demand, they are unlikely to be repaid until the projects are successful and the subsidiaries start to generate revenue. The Company considers the loans are of a lower credit rating.  The loans were assessed for impairment and an impairment charge of £439,402 (2023: £396,792) was recognised in the year. 

 

The Company has made unsecured loans to its associates of £404,511 (2023: £335,396) to Oracle Energy FZCO Limited.  Although the loan is repayable on demand, it is unlikely to be repaid until the projects are successful and the associate starts to generate revenue. The Company considers that the loan is of a lower credit rating.  The loan was assessed for impairment and an impairment charge of £68,211 (2023: £54,200) was recognised in the year.

 

The Company assessed impairment by considering a range of future interest rates between 1% and 5.25%, and potential periods until the loans are able to be repaid between 1 and 10 years.  The Directors considered the most likely scenario was an interest rate of 3.38% and a 5 year repayment period (2023: 3.38% and 5 years).  The movement in the loss allowance in the year was an increase of £56,687 from £450,926 in 2023 to £507,613 in 2024.  The reason for the increase in the provision was due to the increase in the size of the loans and an increase in the Bank of England Base Rate.

	2024	2023
	£	£
Gross carrying value	3,319,175	2,970,321
Opening loss allowance	450,926	393,184
Movement in allowance for period	507,613	57,742
Closing loss allowance	958,539	450,926
Assessed interest rate risk	3.38%	3.38%
Years until cash realised	5	5

 

Capital Management

The Company's capital consists wholly of ordinary shares, together with their associated share premium. The Board's policy is to preserve a strong capital base in order to maintain investor, creditor and market confidence and to safeguard the future development of the business, whilst balancing these objectives with the efficient use of capital.

 

21.        CONTINGENT LIABILITIES

 

On 3 February 2015, a performance guarantee for US$500,000, secured by a deposit from the Company, was issued by a third-party bank in favour of the Director General of the Coal Mines Development Department to cover potential obligations under the mining lease. This bank guarantee has been extended annually and, during 2024, the Company decided not to renew the bank guarantee. The Directors do not believe that any potential obligations under the mining lease will arise.

 

22.        RELATED PARTY DISCLOSURES

 

During the year, Oracle Power PLC accrued interest of £66,060 (2023: £61,258) in respect of loans totalling £1,078,588 (2023: £1,078,588) made to its wholly owned subsidiary Sindh Carbon Energy Limited, £37,783 (2023: £31,740) in respect of loans totalling £647,192 (2023: £585,633) made to its wholly owned subsidiary Thar Electricity (Private) Limited and £35,263 (2023: £35,263) in respect of loans totalling £644,638 (2023: £585,262) made to its wholly owned subsidiary Oracle Gold Pty Limited, and £8,866 (2023: £19,502) in respect of loans totalling £404,511 (2023: £335,396) to its associated undertaking Oracle Energy FZCO Limited.

 

At the Statement of Financial Position date, the total interest outstanding amounted to £330,995 (2023: £264,935) for Sindh Carbon Energy Limited, £91,771 (2023: £53,988) for Thar Electricity (Private) Limited and £84,825 (2023: £49,562) for Oracle Gold Pty Limited, and £41,534 (2023: £21,627) for Oracle Energy FZCO Limited. The loans due from Sindh Carbon Energy Limited, Thar Electricity (Private) Limited, Oracle Gold Pty Limited, and Oracle Energy FZCO Limited were reviewed for impairment and an impairment charge of £72,003 (2023: £29,327) was recognised in the year. Total impairment charge to date amounts to £439,402 (2023: £396,792).

 

All intercompany loans accrue interest at the Bank of England Base rate + 1%, all intercompany loans are to be settled in cash.

 

The Company has guaranteed the liabilities of two dormant, wholly owned subsidiaries: Oracle Gold Limited and Oracle Gold Resources Limited.

 

Key management personnel compensation

 

The Directors and key management personnel of the Group during the year were follows:

 

Mr M W Steed (Non Executive Director and Chairman)

Ms N Memon (Chief Executive Officer)

Mr D Hutchins (Non Executive Director)

Mr N Lee (Company Secretary)

 

Details of directors' compensation are disclosed in the Remuneration Report included in the Directors Report.  In addition, the Company Secretary, Nicholas Lee, received a salary of £55,000 (2023: £55,000).

 

Key management personnel equity holdings

Details of key management personnel beneficial interests in the fully paid ordinary shares of the Company are disclosed in the Directors Report.

 

23.  SHARE BASED PAYMENT TRANSACTIONS

 

The Company has a share warrant programme that entitles the holders to purchase shares in the Company with the warrants exercisable at the price determined at the date of granting the warrant. The terms and conditions of the grants active in the year are that there are no vesting conditions to be met and all warrants are to be settled by the issue of shares.

 

The number and weighted average exercise prices of share warrants are as follows:    

 

	Weighted average exercise price 2024	Number of warrants 2024	Weighted average exercise price 2023	Number of warrants 2023
Outstanding at 1 January	0.09p	113,544,706	-	-
Expired during the period	-	-	-	-
Forfeited during the period		-		-
Granted during the period	0.032p	1,666,666,667	0.09p	113,544,706
Exercised during the period	0.025p	(1,666,666,667)
Outstanding at 31 December	0.07p	113,544,706	0.09p	113,544,706
Exercisable at 31 December	0.07p	113,544,706	0.09p	113,544,706

 

The weighted average contractual life remaining at the year end was 0.5 years (2023: 1.5 years). 

 

There is no expense for the year (2023: nil) for services received in respect of equity settled share based payment transactions as the warrants granted during the year were also exercised in the year.

 

24.  EVENTS AFTER THE REPORTING PERIOD

 

Since the reporting date, the Company has entered into the following reportable transactions.

 

On 18 February 2025 the Company announced that its joint venture partner - Riversgold Limited ("Riversgold") - on the Northern Zone Gold Project ("NZ Gold Project") had exercised its option to acquire 80% of the NZ Gold Project.  The threshold of spending of at least A$600,000 on the project had been met.  The Company will retain a 20% interest in the project.

 

On 22 April the Company announced that it had raised gross proceeds of £318,600 by way of a placing of 1,770,000,000 new ordinary shares in the capital of the Company at a price of 0.018 pence per share.

 

25. NOTES SUPPORTING STATEMENT OF CASH FLOW

 

	Group
					2024	2023
					£	£
	Cash at bank available on demand				152,835	28,431
	Short‑term deposits				466,362	175,095
	CASH AND CASH EQUIVALENTS IN THE STATEMENT OF FINANCIAL POSITION				619,197	203,526
	CASH AND CASH EQUIVALENTS IN THE STATEMENT OF CASH FLOWS				619,197	203,526

 

	Company
					2024	2023
					£	£
	Cash at bank available on demand				138,489	17,479
	Short‑term deposits				466,362	175,095
	CASH AND CASH EQUIVALENTS IN THE STATEMENT OF FINANCIAL POSITION				604,851	192,574
	CASH AND CASH EQUIVALENTS IN THE STATEMENT OF CASH FLOWS				604,851	192,574

 

 

**ENDS**