8PG.L Regulatory News (8PG)

4 September 2017

Legendary Investments PLC

("Legendary" or the "Company")

AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2017

HIGHLIGHTS

· Virtual Stock makes substantial progress in the health sector: cited by Lord Carter in his government review as "exemplary", contracts strategically important Shelford Group of NHS Trusts and then contracts NHS Shared Business Services.

· Virtual Stock continues progress in the retail sector by winning a landmark contract with the John Lewis Partnership.

· Post year end, in July 2017, Notion Capital, invest £4.5m in Virtual Stock at a valuation of for Virtual Stock of £66m. Legendary increases its stake in Virtual Stock to 7.2%, valuing Legendary's stake, post year end, at £4.7m.

· Progress also made at Manas Resources, with the results from both the sampling programme and the geophysical studies proving positive.

· Post the year end, in August 2017, Legendary acquires a 12% stake in IBS Corporation for a nominal sum. The stake in IBS and the cooperation it should enable between Legendary and IBS should provide further opportunities for value generation.

Zafar Karim, Executive Chairman commented:

"The year has been marked by substantial progress at Virtual Stock. This investment has proved highly profitable. Moreover, there is much further to go, and a listing in the mid-term is a distinct possibility. Manas also continues to progress.

"Perhaps the most important development has been the investment in IBS, which is strategic for Legendary and which should provide more opportunities and a more powerful platform for Legendary to work with and from."

- Ends -

About Legendary Investments PLC

Legendary Investments Plc is a proactive investment company that focuses on making investments in and assisting companies which exhibit the potential to generate returns of many multiples through capital appreciation. Typically, Legendary invests in small companies where there are clear catalysts for value appreciation and the companies are operating in sectors exhibiting long term growth. Examples of such sectors include technology, energy and natural resources.

Executive Chairman's Statement

The year under review has been one in which progress has been made with key investments. Virtual Stock was cited by Lord Carter in his government review as "exemplary", after which the strategically important Shelford Group of NHS Trusts agreed to utilise The Edge software, followed shortly after that by the NHS Shared Business Services ("NHS SBS"). This development put Virtual Stock into a nationally if not globally recognised position in the health sector, and the landmark contract with John Lewis Partnership did likewise for Virtual Stock in the retail sector. It has been an outstanding year for this Legendary investee. Good progress was also made at Manas Resources, with the results from both the sampling programme and the geophysical studies proving positive. The next stage is test drilling and all options for this are being considered.

Potentially the most significant development occurred post year end with the acquisition for a nominal sum of a 12% stake in IBS Corporation. For some time, Legendary has been exploring options to enable it to widen its reach and provide it with access to additional resources to be able to make follow on investments in current investee companies and additional investments in new companies, in short "increase its fire power". The stake in IBS and the cooperation it should enable between Legendary and IBS should provide a platform to be able to do this, thereby taking Legendary to the next level.

Operating loss was £281,000, (2016: profit of £2,132,000), and net loss was £281,000 (2016: net profit £2,118,000). As at the year end, Legendary's investments (fixed asset investments and current asset investments) were £4,293,000 (2016: £4,275,000). Overall, net and total assets for the year were £4,729,000 (2016: £4,073,000) an increase of 16%, and £4,867,000 (2016: £4,354,000), an increase of 12%.

Virtual Stock Holdings Limited

Virtual Stock utilises agile, open source technology to allow information to flow between fragmented systems in a unique way, without disruption to any existing IT landscape. Data is seamlessly collated, enriched, mapped and validated, allowing only trusted, reliable information to be deployed. Virtual Stock's solutions are a rapid, flexible and scalable alternative to traditional costly and time-consuming systems integrations. The "integration" market is worth c.US$300-500 billion per year.

Virtual Stock's flagship product, The Edge, aims to transform global enterprise supply chains and marketplaces. The Edge delivers best-in-class eProcurement functionality, including an Amazon-style B2B marketplace, full procure-to-pay (P2P), product information management (PIM), catalogue management, order management, inventory management, e-invoicing, track and trace, and analytics. The Edge has been successful in delivering supply chain optimisation for leading retailers, the NHS, and, ultimately, their customers.

In the year under review, Virtual Stock built substantially on the success of the previous year. Following the contract wins in July 2015 with Guy's and St Thomas's Trust, Virtual Stock's goal was to win several further NHS contracts by the end of calendar 2016. The reality of what happened, exceeded that goal.

In February 2016, before the year under review, Virtual Stock was cited as exemplary of best practice in employing digital technology to deliver significant cost reductions with Guy's and St Thomas Trust in the landmark Lord Carter report, "Operational productivity and performance in English NHS acute hospitals: Unwarranted variations".

After much diligence, in the year under review, in October 2016, Virtual Stock's The Edge was adopted as the common catalogue management solution by the Shelford Group to deploy Virtual Stock's cloud-based module catalogue management solution, part of The Edge, providing a solution to what Lord Carter described as one of the major issues affecting the NHS. Virtual Stock, through The Edge platform, aims to support significant savings over the next five years through supply chain optimisation and procurement process efficiencies.

The trusts that make up the Shelford Group are of strategic significance to NHS care, the life sciences industries and the wider UK economy. They comprise the 10 leading NHS multi-specialty academic healthcare organisations, employ over 100,000 people and have turnover of over £10 billion, making up over 13% of acute trusts' turnover across England. The Shelford Group was formed in 2011 to share best practice in key service areas across its membership and to engage with Government, Parliament and industry to represent large tertiary centres and the wider NHS.

The "win" took longer than expected, but was ultimately more substantial than expected. The Shelford Group is the first group of trusts to collaborate in the adoption of a single catalogue management solution. Discussions are underway with several other trusts.

This success was followed by the announcement on 2 November 2016 that Virtual Stock's The Edge was to be utilised by NHS SBS, a joint venture between the NHS and Sopra Steria Group S.A., a European leader in digital transformation. The Edge enables hospitals to purchase a full range of products through a single eCommerce platform, in a way that users experience in everyday online shopping. The Shelford Group has signed up to use the technology, and the NHS SBS partnership is expanding the potential for savings to many more trusts.

NHS SBS has already saved the NHS hundreds of millions of pounds since it was set up in 2005. By utilising Virtual Stock technology, it aims to help the health service work towards achieving the £500 million to £1 billion of procurement savings called for in Lord Carter's 2016 productivity review. In essence, Virtual Stock technology is providing an "Amazon" like marketplace for the NHS by partnering with NHS SBS.

Virtual Stock also continued to build its presence in the retail sector. In March 2017, it was announced that Virtual Stock had been appointed by the John Lewis Partnership, including 48 John Lewis shops across the UK, johnlewis.com and 349 Waitrose shops, to implement its Supply Chain Management System, The Edge.

Virtual Stock is now established as a provider of digital solutions to the UK's leading retailers. Its retail clients include Tesco, Maplin, Sainsbury's Argos, Dixons Carphone and Office Depot. Selected for its ability to implement agile, scalable technologies, Virtual Stock continues to provide its retail partners with the tools to optimise supply chain operations, while delivering significant cost savings.

At the year end Legendary's Holding of Virtual Stock continues to be accounted for at a value consistent with the prior year of £4.0m. This continues to be supported by subsequent transactions in shares for Virtual Stock (see note 16 for more details regarding the fair value assessment). In July 2017, Notion Capital, a leading European B2B SaaS Venture Capital firm, invested £4.5m in Virtual Stock at a valuation of for Virtual Stock of £66m.

Subsequent to this investment and also in July 2017, Legendary increased its stake in Virtual Stock from 6.8% (subsequent to the dilution due to Notion's investment) to 7.2% increasing the carrying value of its investment in Virtual Stock to £4.3m which compares to an estimated value of £4.7m based upon the £66m valuation of Virtual Stock.

Manas Resources LLC

Manas Resources is the holder of a licence to explore for gold in Sultan Sary, Narynskaya Oblast, Kyrgyzstan. The licence area is located in the gold-rich Tien-Shan region of Kyrgyzstan covering approximately 66 sq km.

A map of the licence area can be found under the link:

https://www.dropbox.com/s/jkeglhpq3shfp3v/Soltan%20Sary%20Licence%20Map%20RNS%202.pdf?dl=0 

In April 2016, Legendary announced preliminary results from the 2015 sampling programme carried out by Manas. These results delineated some focussed areas for follow-up work. Highlights of the results included the existence of several bedrock samples up to 4 g/t Au within a 1 sq km soil anomaly in Area 2 and a boulder sample grade of 36 g/t along the structural corridor in Area 3. In Area 1, only two of the bedrock samples returned gold values significantly above background concentrations (0.5 g/t and 0.4 g/t). Of the 3 areas, Area 1, Area 2 and Area 3, Area 3 was the most prospective, followed by Area 2.

In August 2016, Manas had initiated a geophysical work programme to define better and delineate known and potential gold mineralisation in licence area. The geophysics programme consisted of Ground Magnetics, Induced Polarisation ("IP") profiles and Gamma Spectrometry, and focussed on the high priority areas, Areas 3 and Area 2.

Area 3, considered to be the most prospective area, covers approximately 1.2 sq km in the southwestern corner of the licence area. The pole-dipole IP surveys conducted in Area 3, which is almost entirely covered by Quaternary sediments, identified strong chargeability and/or resistivity anomalies over a strike length of some 1.4 km extending from the edge of the survey area. Modelling of the results suggests that the tops of the targets are 50 - 100 metres from surface.

These anomalies correspond with the postulated WNW extension of the gold-rich structural corridor that hosts the known deposits (outside the licence area) of Choloktor (3km), Buchuk (5km) and Altyntor (9km). Altyntor is currently being mined by a Chinese company, and about 5 tonnes of gold has historically been mined from Buchuk. Under the Russian/Soviet classification scheme Buchuk contains a C1 resource of 20 tonnes of gold, and Altyntor contains a C1 and C2 resource of 7 tonnes of gold.

With the focus on Area 3, the geophysics carried out in Area 2 were more exploratory in nature (200m vs 100m line spacing respectively). The results received from Area 2 were sufficiently positive to warrant follow-up work, though the focus is on the most promising area, Area 3.

On the basis on the above results it was decided at the end of 2016 to test drill the promising targets in Area 3, and from early 2017, Manas began exploring various options, including raising capital, to do this. These discussions continue. The aim is to have concluded discussions and made progress with drilling before the end of 2017.

As at the year end, Legendary holds a 5.5% stake in Manas Resources, with an option over an additional 4.45% stake, which are held on its balance sheet at £100,000. In addition, working capital has been provided to Manas of £259,000 which is included as a non-current receivable.

Amedeo Resources PLC

Amedeo: Amedeo's strategy is to invest in the energy and resource infrastructure sectors. To date Amedeo has made 3 investments: in an new offshore vessel construction joint venture, Jiangsu Yangzijiang Offshore Engineering Co. Ltd ("YZJ Offshore"); in a ferrous metal and ferrous ore trader, MGR Resources Pte Ltd ("MGR"); and in a copper mine, Ganjine Kani Company ("GKC").

During the year under review, YZJ Offshore completed its first order, a Le Tourneau Super 116E Class design self-elevating mobile offshore jack up drilling rig ("Explorer 1"), pending final delivery checks. The rig has yet to be delivered as the purchaser of Explorer 1 is in the process of securing financing and employment for the rig. In the meantime, YZJ has continued to seek further orders, and with Explorer 1 completed to a high standard, is utilising it as a showpiece. The rig market has been soft and no new orders have been secured. Signs of improvement, however, are evident as YZJ Offshore has had credible enquiries including interest in Explorer 1. In the meantime, YZJ offshore has been utilising its facilities to provide berthing capacity and build modules for LNG vessels.

Iron ore prices remained depressed during 2016. As such, MGR cut back activities to a bare minimum. Due to the low level of activity, in February 2016, MGR paid back to Amedeo a loan of £1,200,000. Near the end of the year, however, MGR saw an uplift in activities with iron ore prices rising. As a result, in January 2017, Amedeo made available to MGR a loan facility of US$800,000 to expand activities.

Also in January 2017, Amedeo acquired a 2.5% stake in GKC for US$500,000, a copper mining company. GKC is a producing miner which has, to date extracted around 1m tonnes of ore. GKC has three mines. MGR intends to work with GKC to supply copper to East Asia.

Despite the ongoing difficult environment, Amedeo continues to pursue its long-term strategy of building a vertically integrated investment business in the resource and energy and related infrastructure sectors, while on an operational level, cash resources are used conservatively.

As at the year end, Legendary's stake in Amedeo was valued at £43,000.

Bosques Energeticos EBE S.A. de C.V

Bosques is an innovation based second generation biodiesel company which has scored many "firsts". It was the first company to germinate pongamia seeds in Mexico and Central America; it was the first to root successfully pongamia scions in Mexico and the region; and it was the first to have pongamia flowering within 2½ years of planting compared with the normal time of 5 to 6 years; and then in less than 2 years in Mexico and the region, and possibly worldwide. It has developed advanced generation jatropha which commences yielding seeds in as early as 6 months compared to up to 2 years for normal jatropha. In addition, its generation 4 jatropha exhibits high yields. Generation 4 jatropha is also non-toxic as a result of which its cake can and is being used for animal feed (higher value) as well as fertilizer.

Bosques currently has 18 ha under cultivation, with 2,000 pongamia trees and 6,000 jatropha plants. Having proven its techniques on its test plantation, Bosques continues to explore ways in which to commercialise its innovations in Mexico and further afield, including potentially in East and South East Asia and in Africa. In addition to exploiting the biodiesel properties, Bosques is also looking to exploit the soil improving and reforestation properties of pongamia.

Legendary has a substantial minority stake of 40% in Bosques that it holds on its balance sheet at £83,000.

Medgold Corporation

Medgold is a Serbia-focused TSX-V listed exploration company targeting gold-silver projects in the relatively under-explored Oligo-Miocene Belt of southern Serbia. Run by a highly experienced management team with a successful track record of building value in resource companies, Medgold is aiming to become a leading European gold company.

Legendary invested in Medgold at its inception, before it was listed. Medgold has now been listed for several years, and as at the balance sheet date, Legendary's stake was valued at £39,000. Medgold is considered a non-core investment.

Oracle Coalfields PLC

Oracle is a coal developer whose primary asset is the Thar Coalfield Block VI licence area located in the Sindh Province, Pakistan. The stake in Oracle was acquired with the proceeds of the disposal of Legendary's stake Regency Mines PLC. Legendary did not consider the stake in Oracle as core and in May 2016 divested the stake.

Sula Iron and Gold PLC

Sula was one of Legendary's earlier investments. Legendary initially invested in a pre-IPO funding round, shortly after which Sula was admitted to trading on AIM, and Legendary invested again at the IPO. Sula has not performed as expected, and in May 2016, the stake was divested.

IBS Corporation Limited

Post year end, in August 2017, Legendary announced that it had negotiated a 12% stake in IBS for nominal value. IBS is a newly established entity in New Zealand for the purposes of providing financial services, initially in New Zealand and then expanding into Asia Pacific, South East Asia and the Middle East.

IBS intends to build a banking services platform with the ability to provide a range of financial services including investment banking, asset management, debt funding and insurance services aimed at corporate and high net worth clients. The availability of such services to New Zealand SMEs is less well developed than in international markets, and IBS initially intends to target opportunities in this area, providing debt funding and taking equity stakes in New Zealand SMEs with strong managements and business models with the potential for internationalisation. Target sectors include fintech, property and agriculture and fisheries. These services are intended to be extended into other markets over time.

IBS is in the process of obtaining the necessary authorities from the New Zealand regulators to be able to conduct these services. It expects to receive the authorities in the next few months, however, there is no assurance that they will be obtained. In the meantime, IBS is establishing an experienced core team to spearhead the business, some of whom have already been identified. In addition, IBS has already commenced discussions with a number of potential clients and institutions regarding funding solutions and financing lines.

Legendary view the investment in IBS as strategic move which could catapult Legendary to the next level. As a proactive investor, Legendary has invested in and nurtured a number of companies, with the successful ones generating substantial returns.

For some time, Legendary has been exploring various strategic opportunities in order to scale up its operations, make larger investments, including follow on investments into its successful investee companies, and provide additional services to its investee companies. IBS is a "challenger" financial services platform, which will initially focus on an underserviced sector in New Zealand and which has ambitions to expand further into the most dynamic regions in the world.

Once authorities to operate and funding lines are obtained, IBS expects to grow its business and accrete value rapidly. Importantly, the activities of IBS are complementary to the activities of Legendary thereby providing further opportunities for value generation for both Legendary and IBS. The cooperation should give Legendary additional sources of funds for current and future projects, and give IBS access to new investment opportunities via Legendary's channels thereby providing further opportunities for value generation.

Financial Review

During the year, Legendary made a net gain on fair value of investments of £45,000 (2016: net gain of £2,391,000). This was due primarily due to gains on Medgold and Amedeo (2016: gain on Virtual Stock). As discussed above, Sula and Oracle were disposed of during the year end, leaving Amedeo and Medgold as the Company's only listed investments.

Administrative expenses were £326,000 (2016: £259,000). The increase resulted primarily from an increase in Directors' fees to £82,000 (2016: £16,000) and the rental of office space at a cost of £34,000 (2016: nil). Travel expenditure also increased to £33,000 (2016: £24,000) and there was a one-off increase associated with IT work to £6,000 (2016: £1,000). Offsetting items included a smaller foreign exchange loss due to the holding of a portion of cash balances in US$ and a reduced audit fee.

Overall, operating loss for the year was £281,000 (2016: profit of £2,132,000).

Finance charges and tax were £nil (2016: nil), and consequently net loss for the year was £281,000 (2016: profit of £2,132,000).

As at the year end, Legendary's investments (fixed asset investments and current asset investments) were £4,293,000 (2016: £4,275,000).

Trade and other debtors due within one year were £136,000 (2016: £47,000) and £259,000 due in greater than one year. The principal reasons for this rise are that expenditures were incurred on various projects including Manas and certain strategic initiatives. Should these projects succeed then the expenses incurred by Legendary in relation to them are expected to be recovered.

Cash amounted £176,000 (2016: £30,000) (including £2,000 (2016: £nil) in the client account of the Company's accountants and £4,000 (2016: nil) held in company brokers account).

As at the year end, non-current liabilities were £nil (2016: £30,000). These liabilities relate to a facility taken out in 2010. The facility bears no interest and has no fixed repayment terms, however, repayment may be requested from 5 August 2017. As a t 31 March 2017 £30,000 was recognised within current liabilities.

Current liabilities were £138,000 (2016: £251,000). The fall was due primarily to the Company repaying a loan of US$250,000 to Alcazar 1 Pte Limited.

Post the year end, in April 2017, Legendary entered into a new facility agreement with Alcazar 1 Pte Limited for up to US$400,000. The facility bears an interest rate of 10% and has a term of one year. At the end of June 2017, US$250,000 of the facility was drawn down.

As at 1 September 2017, Legendary had cash and listed investments of £236,000.

May Fund Raise

In May 2016, Legendary raised £1 million (before expenses), by way of an oversubscribed placing of 333,333,333 ordinary shares of 0.10 pence nominal value each at a price of 0.3 pence per new ordinary share. The shares were placed with a range of institutional and private investors.

Loans

In August 2016, Legendary repaid the US$250,000 loan and interest that was due to Alcazar 1 Pte Ltd. The loan was taken out in May 2015 and bore interest of 10 per cent. At the time the loan was taken out, Alcazar held an 11.1% stake in Legendary so was treated as a related party under Rule 13 of the AIM Rules for Companies. Subsequent to the successful placing of shares by Legendary in May 2016, Alcazar's holding in Legendary was diluted down to 9.7%. Therefore, it is no longer a related party under AIM Rule 13.

Post the year end, in April 2017, Legendary entered into a new facility agreement with Alcazar 1 Pte Limited for up to US$400,000. The facility bears an interest rate of 10% and has a term of one year. At the end of June 2017, US$250,000 of the facility was drawn down.

Exercise of Warrants

During the year under review, warrants were exercised over 12,500,000 ordinary shares of nominal value 0.1p each. Subsequent to the year end, further warrants were exercised over a total of 237,272,727 ordinary shares. Consequently, as at the balance sheet date and the date of these accounts the total number of ordinary shares in issue was 2,807,364,166 and 3,044,636,893, respectively. The total proceeds of the exercises were £237,732.

Miscellaneous

During the year under review, in April 2016, Legendary reverted from having two brokers to having Beaufort Securities Limited as its sole broker. In addition, it changed its registered office to 2nd Floor, Jubilee House, Townsend Lane, London NW9 8TZ.

Outlook

The year under review has been one of progress. In particular, Virtual Stock continues it's upwards trajectory and initial results from Manas have been positive. Importantly, the stake in IBS and the cooperation that it will entail present a strategic move with the potential to deliver significant value to Legendary.

The Board looks to the future with confidence.

STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 March 2017

All activities derive from continuing operations.

STATEMENT OF FINANCIAL POSITION

As at 31 March 2017

The financial statements were approved by the Board of Directors and authorised for issue on 1 September 2017

STATEMENT OF CHANGES IN EQUITY

As at 31 March 2017

STATEMENT OF CASHFLOWS

For the year ended 31 March 2017

Accounting Policies

Corporate information

Legendary Investments PLC (the "Company") is a company incorporated and domiciled in the UK (registered number 0392024). The address of the registered office is Jubilee House, Townsend Lane, London, NW9 8TZ. The Company's principal activity is that of an investment company.

Basis of preparation

The company prepares its financial statements in accordance with applicable International Financial Reporting Standards as adopted by the European Union ("IFRS"), and with those parts of the Companies Act 2006 as applicable to companies reporting under IFRS.

The financial statements have been prepared on a historical cost basis, except for the revaluation of certain financial instruments.

The financial statements are presented in thousands of pounds sterling ("£'000") except when otherwise indicated.

The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to all periods presented, unless otherwise stated.

New standards, amendments and interpretations

At the date of authorisation of this financial information, the directors have reviewed the Standards in issue by the International Accounting Standards Board ("IASB") and IFRIC, which are effective for annual accounting periods ending on or after the stated effective date. In their view, none of these standards would have a material impact on the financial reporting of the Company.

Impairment of asset values

Property, plant and equipment is reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable or as otherwise required by relevant accounting standards.

Investments and financial instruments

Investments, financial assets and financial liabilities are recognised on the Company's statement of financial position when the Company has become a party to the contractual provisions of the instrument.

Fixed asset investments include investments in investee companies where the time horizon for realisation of the investment is considered to be longer than one year. Investments in investee companies where the time horizon for realisation of the investment is considered to be less than one year are classified as current assets.

All investments have been designated as fair value through profit or loss, and are initially measured at cost that is the best estimate of fair value. Thereafter, the investments are measured at subsequent balance sheet dates at fair value. A financial asset is designated in this category if it is acquired to be managed and its performance is evaluated on a fair value basis with a view to selling after a period of time. Listed investments and investments traded on AIM or overseas stock exchanges are stated at current price at the balance sheet date provided the market is active. Unlisted investments are stated at directors' valuation with reference to the International Private Equity and Venture Capital Valuation Guidelines ("IPEVG") and in accordance with IAS39 "Financial Instruments: Recognition and Measurement":

Investments which have been made within the last twelve months or where the investee company is in the early stage of development will usually be valued at the price of recent investment except where the company's performance against plan is significantly different from expectations on which the investment was made in which case a different valuation methodology will be adopted.

For investments with a shareholding greater than 20% but less than 50% of the equity share capital, IAS 28 states that venture capital companies have the option of recording investments on the balance sheet according to the equity method or at fair value in accordance with IFRS 9 "Financial Instruments" (or IAS 39 "Financial Instruments: Recognition and Measurement"). Management makes use of this option and assesses the associates at fair value through profit or loss. In the current and prior year, the conditions for exercising this option were fulfilled for Bosques Energeticos EBE S.A. de C.V; the value of which is included at fair value through profit or loss.

Any realised and unrealised gains or losses on investments are taken to the profit and loss account.

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability; or

• In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non financial asset takes into account a market participant's ability to generate economic benefits from the asset's highest and best use or by selling it to another market participant that would utilise the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy. This is described, as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

Financial assets classification

Management determines the classification of its financial assets at initial recognition.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are initially recognised at fair value, and are subsequently stated at amortised cost using the effective interest method. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period. Loans and receivables comprise mainly cash and cash equivalents and trade and other receivables.

Impairment of financial assets

Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the counterparty, default or significant delay in payment, disappearance of active market for that financial asset, or bankruptcy or financial reorganisation of borrowers) that the Company will be unable to collect all of the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable.

For trade receivables, which are reported net, such provisions are recorded in a separate provision account with the loss being recognised within administrative expenses in the consolidated statement of comprehensive income. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.

Financial liabilities and equity

Debt and equity instruments issued by a group are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of equity after deducting all of its liabilities. Equity instruments issued by a group entity are recognised at the proceeds received, net of direct issue costs.

Debt, such as borrowings and trade and other payables are measure at amortised cost using the effective interest method.

Cash and cash equivalents

The Company considers any cash on short-term deposits and other short term investments to be cash equivalents.

Trade payables

Trade payables are initially recognised at fair value and subsequently at amortised cost using the effective interest method.

Loans

Loans are initially recognised at fair value and subsequently at amortised cost.

Property, plant and equipment

Items of property, plant and equipment are stated at cost or deemed cost less accumulated depreciation and impairment losses. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. When parts of an item of property, plant and equipment have different useful lives, those components are accounted for as separate items of property, plant and equipment.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the income statement.

Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. The property, plant and equipment acquired under finance leases is depreciated over the shorter of the useful life of the asset and the lease term. Freehold land is not depreciated.

The estimated useful lives are as follows: Computer equipment - 4 years

The useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

Taxation

The tax currently payable is based on the taxable profit for the period. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred income tax is provided for using the liability method on temporary timing differences at the balance sheet date between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognised in full for all temporary differences. Deferred income tax assets are recognised for all deductible temporary differences carried forward of unused tax credits and unused tax losses to the extent that it is probable that taxable profits will be available against which the deductible temporary differences, and carry-forward of unused tax credits and unused losses can be utilised. The carrying amount of deferred income tax assets is assessed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that is probable that future taxable profits will allow the deferred income tax asset to be recovered. Consideration is given to both capital and trading losses, and to the extent that the company is able to realise a deferred tax asset and settle any taxation liabilities simultaneously, these amounts are offset.

Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the accounting date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit or loss.

Segment reporting

Operating segments are reported in a manner consistent with the internal reporting to the Board of Directors which has been identified as the chief operating decision maker ("CODM"). The Board of Directors consists of the Executive Directors. Please refer to note 2 for segmental information.

Going concern

The Company's business activities, together with the financial position of the Company and the factors likely to affect its future development, performance and position are set out in the Executive Chairman's Statement on pages 2 to 7.

Legendary had administrative costs for the year ended 31 March 2017 of £326,000. Of this amount £146,000 are related to the fixed costs of running Legendary and maintaining its listing.

The directors take steps to keep the running costs of Legendary low. This is evidenced by the costs themselves in comparison to other listed companies (Legendary is listed on the AIM market of the LSE).

The fixed costs of Legendary for the next 12 months are expected to be in the region of £150,000. Other than these, and the current payables of £138,000, Legendary expects no other fixed outlays.

Legendary is an investment company and in order to advance its business it needs to make investments and have funds available to do so. Funds can come from three sources, realising existing investments, equity fund raising or debt fund raising. It is Legendary's policy to maintain sufficient liquid resources to cover its working capital needs when it makes new investments.

As at 1 September 2017, Legendary had £177,000 of cash and £59,000 of listed investments. The listed investments may be realised for cash at short notice. Together, this gave Legendary, liquid resources of £236,000. In addition, Legendary has a facility of which an additional US$150,000 (c. £117,000) may be drawn down. The facility is repayable at the end of April 2018 in its entirety (US$400,000 + 10% interest), and may be settled in Legendary shares, at Legendary's option.

On the basis of the above, the Directors believe that sufficient funds will be available to support the going concern status of the Company over the next 12 months following the approval of these financial statements. Consequently, the Directors believe that it is appropriate to prepare the Company's financial statements on a going concern basis. This assumes that the Company is to continue in operational existence for a period of at least 12 months from the date of approval of the financial statements.

Share based payments

The Company issues equity-settled share based payments to certain employees in the form of options and warrants. A fair value for the equity-settled share awards is measured at the date of the grant. The fair value is measured using the Black Scholes method of valuation, which is considered to be the most appropriate valuation technique. The valuation takes into account factors such as non-transferability, exercise restrictions and behavioural considerations.

An expense is recognised to spread the fair value of each award over the vesting period on a straight-line basis, after allowing for an estimate of the share awards that will actually vest. The estimate of vesting is reviewed annually, with any impact on the cumulative charge being recognised immediately. Amounts to be settled in shares are presented within equity, representing the expected time-apportioned fair value of the awards that are expected to vest.

1 CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

The preparation of the Company's financial statements under IFRS requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. Estimates and judgements are continually evaluated and are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances.Actual results may differ from these estimates.

The Directors consider that the following estimates and judgements are likely to have the most significant effect on the amounts recognised in the financial statements:

Valuation of investments:

The Company's financial instruments are measured at fair value in the statement of financial position and it is usually possible to determine their fair values within a reasonable range of estimates. For actively traded financial instruments, quoted market prices are readily available. For other financial instruments, such as unlisted securities, valuation techniques are used to estimate fair value. Fair value estimates are made at a specific point in time, based on market conditions and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgement and therefore cannot be determined with precision. See note 16 for further details.

Share based payments:

In order to calculate the charge for share-based compensation as required by IFRS 2, the Group makes estimates principally relating to the assumptions used in its option-pricing model as set out in note 15.

2 SEGMENTAL ANALYSIS

The Company only has one class of business and only operates within the United Kingdom.

As at 31 March 2017 the Company had capital losses of approximately £4.6 million (2016: £4.6million) available to carry forward against future capital gains, and trading losses of approximately £3.5 million (2016: £3.5 million), which includes £0.07 million (2016:£0.03 million) in respect of tax deductions on share options and warrants. A deferred tax asset of £0.7 million (2016: £0.7 million) is not recognised in respect of these trading losses due to the uncertainty as to the utilisation of the losses in the foreseeable future.

The average number of undiluted shares in issue during the year is the same as the average number of ordinary shares in issue on the basis that the inclusion of potentially dilutive shares would be anti-dilutive (2016: 2,461,531,830).

Further information in relation to the fair value hierarchy is provided in note 1 and 16 to the financial statements.

The Company holds more than 20% of the equity (and no other share or loan capital) of the following undertakings:-

Bosques Energeticos EBE S.A. de C.V., in which the Company has more than 20% interest, is an associated undertaking. The investment is recognised on the balance sheet at fair value in accordance with IAS 39 Financial Instruments: "Recognition and Measurement".

All investments are measured at fair value through profit and loss as detailed in the accounting policy.

Included in listed investments are the following companies:

Further information in relation to the fair value hierarchy is provided in notes 1 and 16 to the financial statements.

Included within other debtors is an amount of £117,000 (2016: £nil) due from a third party. These sums were expended in the pursuit of strategic initiatives.