Medcaw Investments Plc ("Medcaw" or the "Company") Audited Financial Results for the Year Ended 31 December 2024 Medcaw is pleased to announce the publication of the audited results for the year ended 31 December 2024. A copy of the Company's annual report will be made available on the Company's website www.medcaw-invest.com. Chairman's Statement It is my pleasure to submit the Chairman's Statement for the Company covering the twelve-month period to 31 December 2024. We announced on 2 April 2025 (post period end) that the board has determined that the Company will not be proceeding with the proposed reverse transaction of Abyssinian Metals Limited ("AML") as announced on 7 July 2023. The board of the Company reached this conclusion as a result of the ongoing dispute between AML and the Federal Democratic Republic of Ethiopia (including Oromia State), details of which were announced by Medcaw on 8 November 2024. The Company understands that AML continues to seek a resolution to the dispute with the Federal Democratic Republic of Ethiopia (including Oromia State) with regards to the ownership and operation of the Kenticha Lithium project. In relation to the Company's legal position in respect of AML, the Company is in the process of taking professional advice. The Company's shares re-commenced trading on the London Stock Exchange on 2nd April 2025. The Directors have commenced the search for a new acquisition target. I would like to thank our shareholders, my fellow directors and our colleagues at Orana Corporate for their continuing patience and ongoing support. Marcus Yeoman Non-Executive Chairman 30 April 2025 CONTACT: Medcaw Investments Plc Charlie Woodvia Orana Corporate LLP+44 (0) 203 475 6834 For more information please visit:https://medcaw-invest.com/ Statement of Comprehensive Income for the Year Ended 31 December 2024 Year ended Year ended 31 December 2024 31 December 2023 Note £ £ Revenue - - Administrative expenses 4 (267,097) (562,260) Impairment 11 (196,141) (157,759) Operating result (463,238) (720,019) Finance income/(expense) 11 30,878 7,849 Loss before taxation (432,360) (712,170) Income tax - - Loss for the year and total (432,360) (712,170) comprehensive loss for the year Basic and diluted loss per 8 (1.95) (3.64) Ordinary Share (pence) The statement of comprehensive income has been prepared on the basis that all operations are continuing operations. Statement of Financial Position As at 31 December 2024 As at 31 As at 31 December 2024 December 2023 Note £ £ ASSETS Current assets Cash and cash equivalents 9 72,286 371,484 Other current assets 10 26,191 140,323 Loan notes 11 - - Total assets 98,477 511,807 Liabilities Current liabilities Trade & other payables 12 261,781 242,751 Total liabilities 261,781 242,751 Net (Liabilities) / Assets (163,304) 269,056 EQUITY AND LIABILITIES Equity attributable to owners Ordinary share capital 13 221,320 221,320 Share premium 13 1,005,110 1,005,110 Share based payment reserve 14 14,903 14,903 Accumulated losses (1,404,637) (972,277) Total equity and liabilities (163,304) 269,056 Statement of Changes in Equity For the Year Ended 31 December 2024 Ordinary Share Share based Retained Total share premium payment earnings equity capital reserve £ £ £ £ £ As at 31 December 171,320 679,110 - (260,107) 590,323 2022 Comprehensive loss for the year Loss for the year - - - (712,170) (712,170) Total - - - (712,170) (712,170) comprehensive loss for the year Transactions with owners Warrants issued - - 14,903 - 14,903 during year Ordinary shares 50,000 350,000 - - 400,000 issued during year Share issue costs - (24,000) - - (24,000) Total transactions 50,000 326,000 14,903 - 390,903 with owners As at 31 December 221,320 1,005,110 14,903 (972,277) 269,056 2023 Comprehensive loss for the year Loss for the year - - - (432,360) (432,360) Total - - - (432,360) (432,360) comprehensive loss for the year Transactions with - - - - - owners Warrants issued - - - - - during year Ordinary shares - - - - - issued during year Share issue costs - - - - - Total transactions - - - - - with owners As at 31 December 221,320 1,005,110 14,903 (1,404,637) (163,304) 2024 Consolidated Statement of Cashflows Notes Year ended 31 Year ended 31 December 2023 December 2024 £ £ Cash flows from operating activities Loss before income tax (432,360) (712,170) Adjustments for: Impairment 11 196,141 157,759 Share based payments 14 - 14,903 Adjustments for changes in working capital: Decrease in trade and 114,132 (140,323) other receivables Decrease in trade and 19,030 1,241 other payables Interest income (30,878) (7,849) Net cash used in (133,935) (686,439) operating activities Cash flows from financing activities Cash received from - 563,160 issue of Ordinary Shares Net cash from financing - 563,160 activities Cash flows from investing activities Loan notes 11 (165,263) (149,109) Net cash used in (165,263) (149,109) investing activities Net decrease in cash (299,198) (272,388) and cash equivalents Cash and cash 371,484 643,872 equivalents at beginning of year Cash and cash 72,286 371,484 equivalents at end of year Notes to the Financial Statements For the Year Ended 31 December 2025 1. General Information The Company was incorporated on 11 December 2020 as a public company in England and Wales with company number 13078596 under the Companies Act, 2006. The address of its registered office is Eccleston Yards, 25 Eccleston Place London SW1W 9NF United Kingdom. The principal activity of the Company is to pursue one or more acquisitions. The Company listed on the London Stock Exchange ("LSE") on 21ST December 2022. 2. Accounting policies The principal accounting policies applied in preparation of these financial statements are set out below. These policies have been consistently applied unless otherwise stated. 2.1 Basis of preparation The principal accounting policies applied in the preparation of the Financial Statements are set out below. These policies have been consistently applied to the year presented, unless otherwise stated. The Company Financial Statements have been prepared in accordance with UK -adopted International Accounting Standards (`IFRS'). The Company Financial Statements are presented in £ unless otherwise stated. 2.2 Going concern The Company's business activities, together with facts likely to affect its future operations and financial and liquidity positions are set out in the Chairman's Statement and the Strategic Report. The Company's financial statements have been prepared on the going concern basis, which contemplates that the Company will be able to realize its assets and discharge liabilities in the normal course of business. Despite this, there can be no assurance that the Company will either achieve or maintain profitability in the future and financial returns arising therefrom, may be adversely affected by factors outside the control of the Company. The Company has had recurring losses in the current year and prior period, and its continuation as a going concern is dependent on the Company's ability to successfully fund its operations by obtaining additional financing from equity injections or other funding. This indicates that a material uncertainty exists that may cast significant doubt over the Company's ability to continue as a going concern. Whilst acknowledging this material uncertainty, the directors consider it appropriate to prepare the financial statements on a going concern basis for the following reasons: · The Company may reasonably expect to maintain continued support from shareholders and other financiers that have supported the Company's previous capital raising to assist with meeting future funding needs; and · All outgoing and expenditure can be suspended until the sufficient completion of a capital raise. The financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern. The auditors have made reference to going concern by way of a material uncertainty within their report. 2.3 Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand, and demand deposits with banks and other financial institutions. 2.4 Equity Share capital is determined using the nominal value of shares that have been issued. The Share premium account includes any premiums received on the initial issuing of the share capital. Any transaction costs associated with the issuing of shares are deducted from the Share premium account, net of any related income tax benefits. Equity-settled share-based payments are credited to a share-based payment reserve as a component of equity until related options or warrants are exercised or lapse. Retained losses includes all current and prior year results as disclosed in the income statement. 2.5 Foreign currency translation The financial statements are presented in Sterling which is the Company's functional and presentational currency. Transactions in currencies other than the functional currency are recognised at the rates of exchange on the dates of the transactions. At each reporting date, monetary assets and liabilities are retranslated at the rates prevailing at the balance sheet date with differences recognised in the Statement of comprehensive income in the year in which they arise. 2.6 Financial instruments IFRS 9 requires an entity to address the classification, measurement and recognition of financial assets and liabilities. a) Classification The Company classifies its financial assets in the following measurement categories: · those to be measured subsequently at fair value (either through OCI or through profit or loss); · those to be measured at amortised cost; and · those to be measured subsequently at fair value through profit or loss. The classification depends on the Company's business modelformanaging the financial assets and the contractualtermsof the cash flows. For assets measured at fair value, gains and losses will berecorded either in profit or loss or in OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI). b) Recognition Purchases and sales of financial assets are recognised ontrade date (that is, the date on which the Company commits to purchase or sell the asset). Financial assets arederecognised when the rights to receive cash flows fromthe financial assets have expired or have been transferred and the Company has transferred substantially allthe risks andrewards of ownership. c) Measurement At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL areexpensed in profit or loss. Debt instruments Amortised cost: Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest, are measured atamortised cost. Interest income from these financial assetsis included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as a separate line item in the statement of profit or loss. d) Impairment The Company assesses, on a forward-looking basis, the expected credit losses associated with anydebt instruments carried at amortised cost. Theimpairment methodology applied depends on whetherthere has been a significant increase in credit risk. For trade receivables, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables. 2.7 Equity instruments Equity instruments issued by the Company are recorded at the proceeds received net of any direct issue costs. 2.8 Share based payments The Group issues equity-settled share based payments to certain advisors. Equity-settled Share based payments are measured at fair value at the date of grant. Fair value is measured using an appropriate options pricing model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. The fair value determined at the grant date of the equity-settled Share based payments is expensed on a straight-line basis over the vesting period, together with a corresponding increase in equity, based upon the Group's estimate of the shares that will eventually vest. Where the terms of an equity-settled transaction are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in value of the transaction as a result of the modification, as measured at the date of the modification. Where an equity-settled transaction is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the transaction is recognised immediately. However, if a new transaction is substituted for the cancelled transaction and designated as a replacement transaction on the date that it is granted, the cancelled and new transactions are treated as if they were a modification of the original transaction, as described in the previous paragraph. 2.9 Taxation Tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income and expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. 2.10 Critical accounting judgements and key sources of estimation uncertainty The preparation of the financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimates are revised and in any future years affected. Estimation of fair value of warrants issued in the year The fair value of the warrants issued during the period have been calculated using a Black Scholes model which requires a number of assumptions and inputs, see Note 14 below. 2.11 New standards and interpretations not yet adopted At the date of approval of these financial statements, the following standards and interpretations which have not been applied in these financial statements were in issue but not yet effective (and in some cases have not yet been adopted by the UK): +---------------------------+---------------+-----------------------------+ |Standard |Effective date |Overview | +---------------------------+---------------+-----------------------------+ |Amendments to IAS 1 |1 January 2024 |The standard has been amended| | |(early adoption|to clarify that the | |Classification of |permitted) |classification of liabilities| |Liabilities as Current or | |as current or non-current | |Non-current | |should be based on rights | | | |that exist at the end of the | | | |reporting period. | | | | | | | |In order to conclude a | | | |liability is non-current, the| | | |right to defer settlement of | | | |a liability for at least 12 | | | |months after the reporting | | | |date must exist as at the end| | | |of the reporting period. | | | | | | | |The amendments also clarify | | | |that (for the purposes of | | | |classification as current or | | | |non-current), settlement is | | | |the transfer of cash, the | | | |entity's own equity | | | |instruments (except as | | | |described below), other | | | |assets or services. | +---------------------------+---------------+-----------------------------+ |Amendments to IAS 21 - Lack|1 January 2025 |The amendments have been made| |of Exchangeability |(early adoption|to clarify: | | |permitted) | | | | |- when a currency is | | | |exchangeable into another | | | |currency; and | | | | | | | |- how a company estimates a | | | |spot rate when a currency | | | |lacks exchangeability. | +---------------------------+---------------+-----------------------------+ 3. Segmental analysis The Company manages its operations in one segment, being seeking a suitable investment. The results of this segment are regularly reviewed by the board as a basis for the allocation of resources, in conjunction with individual investment appraisals, and to assess its performance. 4. Operating Loss Operating loss for the company is stated after charging: Year ended Year ended 31 December 2024 31 December 2023 £ £ Directors' fees 72,000 108,000 Professional Fees (Legal & accounting) 105,217 364,949 Listing expenses 47,468 65,983 Other administrative expenses 15,532 28,184 Insurance 26,880 27,418 VAT provision written back - (32,274) 267,097 562,260 5. Directors' and Employees The average number of persons employed by the Company (including executive and non-executive directors) during the year ended 31 December 2024 was: No of employees Year ended Year ended 31 December 2024 31 December 2023 Management 3 3 3 3 The aggregate payroll costs of these persons were as follows: £ £ Wages and salaries 72,000 108,000 72,000 108,000 Year ended Year ended 31 December 2024 31 December 2023 £ £ Fees to directors 72,000 108,000 72,000 108,000 6. Auditor's Remuneration Year ending Year ending 31 December 2024 31 December 2023 £ £ Fees payable to the Company's 30,000 35,000 auditor for the audit of the Company 30,000 35,000 7. Taxation As at As at 31 December 2024 31 December 2023 £ £ A reconciliation of the tax charge / credit appearing in the income statement to the tax that would result from applying the standard rate of tax to the results for the year is: Loss per accounts (432,360) (712,170) Tax credit at the standard rate of (82,148) (135,312) corporation tax in the UK of 19% Adjustment for items disallowable for tax - - Tax losses for which no deferred tax is 82,148 135,312 recognised Tax expense recognised in accounts - - The Company has total carried forward losses of £1,247,778 (2023: £ 815,418). The taxed value of the unrecognised deferred tax asset is £238,397 (2023: £156,249 ) and these losses do not expire. No deferred tax assets in respect of tax losses have been recognised in the accounts because there is currently insufficient evidence of the timing of suitable future taxable profits against which they can be recovered. 8. Earnings per share The calculation of the basic and diluted earnings per share is calculated by dividing the profit or loss for the year by the weighted average number of ordinary shares in issue during the year. 31 December 2024 31 December 2023 £ £ Loss attributable to shareholders (432,360) (712,170) of Medcaw Investments Plc Weighted number of ordinary shares 22,132,095 19,563,414 in issue Basic & dilutive earnings per share (1.95) (3.64) from continuing operations - pence There is no difference between the diluted loss per share and the basic loss per share presented. Share options and warrants could potentially dilute basic earnings per share in the future but were not included in the calculation of diluted earnings per share as they are anti-dilutive for the year presented. See note 13 for further details. 9. Cash and cash equivalents As at As at 31 December 2024 31 December 2023 £ £ Cash at bank 72,286 371,484 72,286 371,484 10. Other current assets As at As at 31 December 2024 31 December 2023 £ £ IPO Funds - 36,100 Prepayments 24,746 104,223 VAT 1,445 - 26,191 140,323 11. Loan note As at As at 31 December 2024 31 December 2023 £ £ Loan note 315,173 149,109 Interest receivable 38,727 7,849 Provision for doubtful debts (353,900) (157,759) - - On 23rd June 2023 and 19th January 2024 £149,109 and £159,194 was loaned to Abyssinian Metals Pty Ltd (AML) to fund working capital requirements. The loan accrues interest at 10% per annum payable in monthly instalments. During the year £30,878 of interest income was accrued. The loan is repayable upon demand by the lender and can be converted into shares in AML subject to certain milestones. As at reporting date the loan has not been converted to equity. Due to inherent uncertainties around the collectability of the loan a provision has been raised and an impairment charge for the full amount recorded in the current year. During 2024 a £196,141 (2023 :£157,759) impairment charge was recorded against the amount. 12. Trade and other payables As at As at 31 December 2024 31 December 2023 £ £ Trade payables 16,327 97,297 Accruals 245,454 145,454 261,781 242,751 13. Share capital and share premium Ordinary Share Share Total Shares Capital Premium £ £ £ At 31 17,132,095 171,320 679,110 850,430 December 2022 Issue of 5,000,000 50,000 350,000 400,000 ordinary shares Share - - (24,000) (24,000) issue costs At 31 22,132,095 221,320 1,005,110 1,226,430 December 2023 Issue of - - - - ordinary shares Share - - - - issue costs At 31 22,132,095 221,320 1,005,110 1,226,430 December 2024 1On 6th July 2023 the company issued 5,000,000 Ordinary shares at a subscription price of £0.01. The share premium represents the difference between the nominal value of the shares issued and the actual amount subscribed less; the cost of issue of the shares, the value of the bonus share issue, or any bonus warrant issue. The Company has only one class of share. All ordinary shares have equal voting rights and rank pari passu for the distribution of dividends and repayment of capital. 14. Share based payments reserve 2024 2023 £ £ Opening balance 14,903 - Broker warrants - 41 Advisor warrants - 14,862 Adviser warrants - - At 31 December 14,903 14,903 The fair value of the services received in return for the warrants granted are measured by reference to the fair value of the warrants granted. The estimate of the fair value of the warrants granted is measured based on the Black-Scholes valuations model. Measurement inputs and assumptions are as follows: Broker Advisor Adviser Issue date 06/07/2023 06/07/2023 01/9/2023 Time to expiry 2 2 3 Share price at date of issue of warrants 5p 5p 5p Exercise price 8p 4p 32p Expected volatility 18.4% 18.4% 18.4% Risk free interest rate 4.3% 4.3% 4.3% Warrants As at 31 December 2024 Weighted average exercise price Number of warrants Brought forward at 1 January 2024 20p 13,712,500 Expired during the year 4p (4,000,000) Expired during the year Cancelled 32p (7,812,500) Granted in year - - Vested in year - - Outstanding at 31 December 2024 5.3p 1,900,000 Exercisable at 31 December 2024 5.3p 1,900,000 The weighted average time to expiry of the warrants as at 31 December 2024 is .5 years (2023 : 2.02 years) 15. Financial Instruments and Risk Management Principal financial instruments The principal financial instruments used by the Company from which the financial risk arises are as follows: 31 December 2024 31 December 2023 £ £ Financial Assets at amortised cost Cash and cash equivalents 72,286 371,484 Loan note - - 72,286 371,484 Financial Liabilities at amortised cost Trade and other payables 16,327 97,297 16,327 97,297 The financial liabilities are payable within one year. General objectives and policies Per the Directors report the overall objective of the Board is to set policies that seek to reduce risk as far as practical without unduly affecting the Company's competitiveness and flexibility. Further details regarding these policies are: Policy on financial risk management The Company's principal financial instruments comprise cash and cash equivalents, loan receivables, trade and other payables. The Company's accounting policies and methods adopted, including the criteria for recognition, the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are set out in note 2 - "Accounting Policies". The Company does not use financial instruments for speculative purposes. The carrying value of all financial assets and liabilities approximates to their fair value. Derivatives, financial instruments and risk management The Company does not use derivative instruments or other financial instruments to manage its exposure to fluctuations in foreign currency exchange rates, interest rates and commodity prices. Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. TheCompany has adopted a policy of only dealing with creditworthy counterparties. The Company's exposure and the credit ratings of its counterparties are monitored by the Board of Directors to ensure that the aggregate value of transactions is spread amongst approved counterparties. The Company applies IFRS 9 to measure expected credit losses for its loan receivables, these are regularly monitored and assessed. Loans are subject to an expected credit loss provision when it is probable that amounts outstanding are not recoverable as set out in the accounting policy. Due to the inherent uncertainty in the recoverability of the loan to AML the Company has raised a provision against the full amount and an impairment charge has been recorded. The Company's principal financial assets are cash and cash equivalents and a loan note. Cash equivalents include amounts held on deposit with financial institutions. The loan note is an unsecured loan accruing interest at 10% per annum. The loan is repayable upon demand by the lender and can be converted into shares in AML subject to certain milestones not being met. As at reporting date the loan has not been converted to equity The credit risk on liquid funds held in current accounts and available on demand is limited because the Company's counterparties are banks with high credit -ratings assigned by international credit-rating agencies. No financial assets have indicators of impairment. The Company's maximum exposure to credit risk is limited to the carrying amount of financial assets recorded in the financial statements. Liquidity risk During the 31 December 2024, the Company was financed by cash raised through equity funding. Funds raised surplus to immediate requirements are held as cash deposits in Sterling. In managing liquidity risk, the main objective of the Company is to ensure that it has the ability to pay all of its liabilities as they fall due. The Company monitors its levels of working capital to ensure that it can meet its liabilities as they fall due. The table below shows the undiscounted cash flows on the Company's financial liabilities as at 31 December 2024 on the basis of their earliest possible contractual maturity. Total Within 2 months Within 2-6 months £ £ £ At 31 December 2024 Trade payables 16,327 16,327 - Accruals 245,454 245,454 - Total Within 2 months Within 2-6 months £ £ £ At 31 December 2023 Trade payables 97,297 97,297 - Accruals 145,454 145,454 - Capital management The Company considers its capital to be equal to the sum of its total equity. The Company's objective when managing its capital is to ensure it obtains sufficient funding for continuing as a going concern. The Company funds its capital requirements through the issue of new shares to investors. 16. Related Party Transactions Provision of services During the year £22,673 (2023: £107,225) was incurred for the provision of administrative and corporate accounting services from Orana Corporate LLP of which Charles Wood and Sarah Cope are both directors or past directors of the Company and Partners of Orana Corporate LLP. These transactions have been treated at arm's length and processed at the fair market value of services provided. Other than these there were no other related party transactions. 17. Ultimate Controlling Party As at 31 December 2024, there was no ultimate controlling party of the Company. 18. Capital Commitments As at 31 December 2024 there were no capital commitments for the Company. 19. Subsequent events On 2nd April 2025, the company announced it will not be proceeding with the proposed reverse transaction of Abyssinian Metals Limited ("AML") as announced on 7 July 2023 at this stage. The board of the Company reached this conclusion as a result of the ongoing dispute between AML and the Federal Democratic Republic of Ethiopia (including Oromia State). The Company understands that AML continues to seek a resolution to the dispute with the Federal Democratic Republic of Ethiopia (including Oromia State) with regards to the ownership and operation of the Kenticha Lithium project. In relation to the Company's legal position in respect of AML, the Company is in the process of taking professional advice. This information was brought to you by Cision http://news.cision.com
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