Annual Report 2007 - Global Energy Development

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20 Consolidated cash flow statementGlobal Energy Development PLCAnnual report 2007Consolidated cash flow statementFor the period ended 31 December 20072007 2006note $000 $000Operating activitiesProfit before taxation 8,875 4,706Depreciation, depletion and amortisation 12 6,805 4,343Write-off unsuccessful exploration costs 11 65 –(Increase)/decrease in trade and other receivables 15 (4,962) 1,016(Increase)/decrease in inventories 14 115 (343)Increase/(decrease) in trade and other payables 18 767 6Increase in long-term provisions 21 66 50Accretion expense on convertible notes 20 283 546Provision against unitisation receivable 1,050 –Other non-cash items 63 14Stock options expense 25 480 312Cash flows from operating activities 13,607 10,650Income taxes paid (1,202) (1,724)Net cash flows from operating activities 12,405 8,926Investing activityCapital expenditure and financial investment– Expenditure on tangible fixed assets 12 (12,242) (13,699)– Expenditure on intangible fixed assets 11 (1,040) (1,466)Disposal of assets 108 827Interest received 7 164 152Increase in short-term deposits 16 (938) (345)Net cash flows from investing activities (13,948) (14,531)Financing activitiesInterest paid (810) (305)Convertible loan notes issued 20 – 5,201Net cash flows from financing activities (810) 4,896Decrease in cash and cash equivalents (2,353) (709)Cash at beginning of year 6,955 7,664Cash at end of year 17 4,602 6,955The notes on pages 21 to 54 form an integral part of these financial statements.
21 Notes to the financial information Global Energy Development PLCAnnual report 2007Notes to the financial informationFor the twelve months ended 31 December 20071. Accounting policiesBasis of preparationWith effect from 1 January 2007 it became mandatory for the Group to comply with International Financial Reporting Standards(IFRS).The financial results of the Group for the twelve months ended 31 December 2007 have been prepared on a basis which isconsistent with IFRS as adopted by the European Union. Comparative information for 2006 has been restated under IFRS.Reconciliations to IFRS from the previously published UK GAAP financial statements are summarised in note 30.First-time adoption of IFRSIn preparing these financial statements, the Group has elected to apply the following transitional arrangements permitted by IFRS1 “First-time Adoption of International Financial Reporting Standards”:• Business combinations effected before 1 January 2006, including those that were accounted for using the merger method ofaccounting under UK accounting standards, have not been restated.• Only those exchange differences arising on the retranslation of foreign operations since 1 January 2006 have been recognised as aseparate component of equity, with the related reserve being reset to zero at that date.• IFRS 2 “Share-based payments” has been applied to employee options granted after 7 November 2002 that had not vested by1 January 2006.• The Group has made estimates under IFRS at the date of transition, which are consistent with those estimates made for the samedate under UK GAAP unless there is objective evidence that those estimates were in error, i.e. the Group has not reflected any newinformation in its opening IFRS balance sheet but reflected that new information in its income statement for subsequent periods.New standards and interpretations(a) New standards, amendments to published standards and interpretations to existing standards effective in 2007 andadopted by the Group– IFRIC 10, Interim Financial Reporting and Impairment (effective for accounting periods beginning on or after 1 November 2006).IFRIC 10 prohibits impairment losses recognised in an interim period on goodwill and investments in equity instruments and onfinancial assets carried at cost from being reversed at a subsequent balance sheet date. There was no impact on the Group’s accountsfrom its adoption.(b) Standards, interpretations and amendments to published standards effective in 2007 but which are not relevant to theGroupThe following standards, amendments and interpretations to published standards are mandatory for accounting periods beginning onor after 1 January 2007 but are currently not relevant to the Group’s operations:– IFRIC 7, Applying the restatement approach under IAS 29, Financial Reporting in Hyperinflationary Economies (effective foraccounting periods beginning on or after 1 March 2006). IFRIC 7 provides guidance on the application of IAS 29 requirements in areporting period in which an entity identifies the existence of hyperinflation in the economy of its functional currency, when theCompany was not hyperinflationary in the prior period. IFRIC 7 is not relevant to the Group as none of the Group companies has acurrency of a hyperinflationary economy as its functional currency.© Standards, amendments and interpretations to published standards not yet effective for the year 31 December 2007.Certain new standards, amendments and interpretations to existing standards have been published that are mandatory for accountingperiods beginning on or after 1 January 2007 or later periods and which the Group has decided not to adopt early. These are:– IFRS 8, Operating Segments (effective for accounting periods beginning on or after 1 January 2009). This standard sets outrequirements for the disclosure of information about an entity’s operating segments and also about the entity’s products and services,the geographical areas in which it operates, and its major customers. It replaces IAS 14, “Segmental Reporting”. The Group expects toapply this standard in the accounting period beginning on 1 January 2009. As this is a disclosure standard it will not have any impacton the results or net assets of the Group.
Page 1 and 2: Global Energy Development PLCAnnual
Page 3 and 4: 01 Highlights 2007Global Energy Dev
Page 5 and 6: 03 At a glanceGlobal Energy Develop
Page 7 and 8: 05 Vice Chairman and Managing Direc
Page 9 and 10: 07 Vice Chairman and Managing Direc
Page 11 and 12: 09 Directors’ biographiesGlobal E
Page 13 and 14: 11 Corporate governance statementGl
Page 15 and 16: 13 Directors’ reportGlobal Energy
Page 17 and 18: 15 Directors’ responsibilitiesGlo
Page 19 and 20: 17 Consolidated income statementGlo
Page 21: 19 Consolidated balance sheetGlobal
Page 25 and 26: 23 Notes to the financial informati
Page 57 and 58: 55 Company accountsGlobal Energy De
Page 59 and 60: 57 Directors’ reportGlobal Energy
Page 61 and 62: 59 Independent Auditors’ reportGl
Page 71 and 72: Corporate directoryDirectorsMikel F

Annual Report 2007 - Global Energy Development

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