Amedeo Resources Regulatory News (AMED)

31 Oct 2007 07:01

Creon Corporation PLC31 October 2007 CREON CORPORATION PLC UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JULY 2007 Creon Corporation plc ("Creon" or "the Company"), the AIM-traded company whichprovides mezzanine financing packages for residential property projects,announces its unaudited results for the six months ended 31 July 2007. The loan portfolio as at 31 July 2007 stood at £2,684,364 an increase ofapproximately 44% from a value of £1,859,204 at 31 January 2007. The Companyincurred a loss before tax of £68,000 in the same period. Jonathan Freeman, a Director of Creon, commented: "We are disappointed to report a net loss of £68,000 for the period which is aresult of loans being repaid at the end of 2006 and the resulting funds notbeing lent out again for the whole of the period subject to this report. Thetotal loan portfolio has significantly increased since the start of the periodunder review which will have a positive effect on our income for the year. Wecontinue to look at ways of increasing the capital available for new loans." The accounts are available on the Company's website at www.creoncorporation.com. For further information: Jonathan Freeman, +44 (0) 1600 750 432Director, Creon Corporation plc John Riddell +44 (0) 20 7763 2200Noble & Company Limited CREON CORPORATION PLC UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JULY 2007 Introduction We present these interim results to shareholders showing the financialperformance of the Company for the six months ended 31 July 2007. During theperiod, Creon has continued to focus on its core business of providing mezzaninefinance to small and medium-sized property developers in the UK in line with thestrategy set out in the Company's Admission Document in November 2004. Progress The Company has continued to make progress during the period and has begun toutilise the facility from its bankers in addition to its own cash resources.Growth has been constrained, however, by some later than projected loanrepayments. However Creon continues to improve its profile in the mezzaninefinance market place and to demonstrate its ability to attract new proposals ofacceptable quality. Strategy The Directors continue to believe that the market for the provision of equityfinance for small and medium sized residential developers remains poorly servedby traditional sources which are often expensive or uncertain in nature. Thishas provided an opportunity for Creon to develop a business supplying mezzaninefinance to developers at an attractive level of return within an acceptablelevel of risk. Creon's approach is to maximize the return on its funds, at the same time asminimizing its exposure to outside risks. The preference, therefore, is toprovide finance on projects that can be completed within 18 months fromacquisition of the site and for the development to have strong appeal within themarket on which it is focused. The Company is continuing with its strategy of relying on its existing contactsfor the introduction of new proposals, most of which come from selected financebrokers who have a proven track record of introducing and handling good qualitydevelopment proposals. The Directors aim to keep management and overhead coststo a minimum by using the resources and expertise of the introducing financebrokers wherever possible. There are no plans for Creon to undertake any directmarketing for the time being. Financial Results We are disappointed to report that for the period under review the Company hasincurred a loss before tax of £68,000 (profit of £165,100 for same period 2006).This loss is the result of the time involved in procuring, evaluating andcompleting new loans of an acceptable quality following early loan repayments atthe end of 2006, together with reliance on property transactions outside of thecompany's control which do not always complete when expected. There iscurrently a healthy pipeline of good quality proposals which should enable theCompany to be fully lent during the next six month period. Loans At the beginning of this financial year, Creon had loans outstanding to threeindividual property developers totalling £1,859,204. This compares with aportfolio of five loans as at 31 July 2006 totalling £2,691,264. During theperiod under review, the Company advanced two new loans totalling £750,000 andprovided an additional loan of £75,160 to an existing borrower. At the end ofthe period ended 31 July 2007 the Company had loans outstanding of £2,684,364. Outlook The Directors believe that Creon has continued to make good progress in thedevelopment of its business in the niche area of mezzanine property finance. Webelieve that growth will be achieved both organically and through the raising ofadditional working capital in due course. We continue to review a wide range ofpotential opportunities and we are confident that the current portfolio will beprofitable and continue to grow. We therefore remain optimistic about thefuture. Jonathan FreemanJames Barder 30 October 2007 Unaudited profit and loss account Six months Six months Year ended ended ended 31 Jul 2007 31 Jul 2006 31 Jan 2007 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Note Turnover 215 491 806Cost of Sales (87) (193) (265) Gross Profit 128 298 542 Administrative Expenses (208) (85) (206) Profit/(loss) on ordinary activities before interest (80) 213 336Interest received 14 16 23Interest paid (2) (1) (45)Profit/(loss) on ordinary activities before tax (68) 228 314Tax on profit/(loss) on ordinary activities - (63) (49)Profit/(loss) on ordinary activities after taxation (68) 165 (265) (Loss)/Profit per share 6 (0.67)p 1.65p 2.64p There were no recognised gains or losses other than the profit for the period. Unaudited balance sheet As at As at As at 31 Jul 2007 31 Jul 2006 31 Jan 2007 Note (unaudited) (unaudited) (audited) £'000 £'000 £'000 Fixed assetsInvestments 7 - - - Current AssetsDebtors 8 3,264 3,276 2,356Cash at bank 433 18 942 3,697 3,294 3,298 Creditors: amounts falling due within one year 9 (680) (310) (213)Net current assets 3,017 2,984 3,085Net Assets 3,017 2,984 3,085 Capital and ReservesCalled up equity share capital 100 100 100Share premium 2,775 2,775 2775Profit and loss account 142 109 210Total Equity Shareholders' Funds 10 3,017 2,984 3,085 We confirm that to the best of our knowledge the condensed set of financialstatements which has been prepared in accordance with the applicable set ofaccounting standards and in accordance with Accounting Standard's BoardStatement on Half-yearly Financial Reports (July 2007): - give a true and fair view of the assets, liabilities, financial position and return or loss - includes an indication of the important events in the six months ended 31 July 2007 and their impact on the condensed set of financial statements - includes a description of the principal risks and uncertainties for the six months to 31 July 2007 - includes related party transactions in the six months to 31 July 2007 For and on behalf of the Board Jonathan FreemanDirector 30 October 2007 Unaudited cash flow statement Six months Six months Year ended ended ended Note 31 Jul 2007 31 Jul 2006 31 Jan 2007 (unaudited) (unaudited) (audited) £'000 £'000 £'000Net cash outflow from operating activities 11 (148) (133) 110Returns on investment and servicing of financeInterest received 14 16 23Interest paid (-) (1) (45) (134) (118) 88Taxation - - -Capital expenditure and financial instrumentsMezzanine finance loans advanced (825) (1,733) (1,991)Mezzanine finance loans repaid - - 1,091Net cash outflow before financing (959) (1,851) (812)FinancingNew loan advanced 12 450 115 377Repayment of loans - - (377)(Decrease) in cash in the period (509) (1,736) (812) Reconciliation of net cash to movement in net funds (Decrease)/increase in cash in the period 12 (509) (1,736) (812)Cash (inflow) from debt financing (450) (115) -Movement in net funds in period 12 (959) (1,851) (812)Net funds at start of period 942 1,754 1,754Net (debt)/funds at end of period 12 (17) (97) 942 Notes to the interim results 1) The unaudited interim results cover the six months to 31 July 2007 andhave been drawn up in accordance with the Accounting Standard Board's (ASB)statement on Half-yearly Financial Reports (July 2007) and adopting theaccounting policies set out in the statutory accounts for the year ended 31January 2007 which were prepared under the historical cost convention and inaccordance with applicable accounting standards. 2) In accordance with section 229 (2) of the Companies Act 1985 the Companyhas not prepared consolidated financial statements on the basis that theinclusion of those subsidiary undertakings, which have not traded sinceincorporation, would not be material for the purpose of giving a true and fairview 3) Per AIM rule 19, an AIM company incorporated in an EEA country mustprepare and present their accounts in accordance with International AccountingStandards. Where, at the end of the relevant financial period, such company isnot a parent company, it may prepare and present such financial informationeither in accordance with International Accounting Standards or in accordancewith the accounting and company legislation and regulations that are applicableto that company due to its country of incorporation. It is the directors' intention to dispose of the company's subsidiaries, all ofwhich are dormant, prior to 31 January 2008. Therefore, Creon Corporation plcis not expected to be a parent company by 31 January 2008 and the directors haveprepared the half yearly report for the period ended 31 July 2007 under UKGenerally Accepted Accounting Practice as the directors expect to apply UK GAAPfor the financial statements for the year ended 31 January 2008. 4) The financial information set out in this report has neither beenaudited nor reviewed pursuant to guidance issued by the Auditing Practices Boardand does not comprise full financial statements within the meaning of Section240, of the Companies Act 1985. Statutory accounts for the year ended 31 January2007, which were unqualified have been lodged with the Registrar of Companies.No statutory accounts in respect of any period after 31 January 2007 have beenreported on by the Company's auditors or delivered to the Registrar ofCompanies. 5) Copies of the Interim Report are being sent to all shareholders. Furthercopies are available free of charge from the Company's registered office and areavailable on the Company's website. 6) The calculation of earnings per share is based on the loss of £68,000for the period and the weighted number of shares in issue of 10,036,110 (2006:10,036,110). 7) Investments The Company holds investments in the following subsidiary undertakings: Percentage of Capital &Company shares held reserves Profit Creon Properties Limited 100% 2 -Creon Investments Limited 100% 2 -Creon Estates Limited 100% 2 -Creon Property Investments Limited 100% 2 - All subsidiary undertakings are dormant. 8) Debtors As at As at As at 31 July 07 31 July 06 31 Jan 07 (unaudited) (unaudited) (audited) £'000 £'000 £'000Mezzanine finance advances 2,684 2,691 1,859Prepayments and accrued income 580 585 497 3,264 3,276 2,356 All debtors are due within one year. 9) Creditors As at As at As at 31 July 07 31 July 06 31 Jan 07 (unaudited) (unaudited) (audited) £'000 £'000 £'000Bank loan 450 - -Trade creditors and accruals 181 132 164Corporation tax 49 63 49Other loan - 115 - 680 310 213 All creditors are due within one year. 10) Shareholders funds As at As at As at 31 July 07 31 July 06 31 Jan 07 (unaudited) (unaudited) (audited) £'000 £'000 £'000Shareholders funds brought forward 3,084 2,819 2,820(Loss)/profit for the period (68) 165 265Shareholders funds carried forward 3,017 2,984 3,085 11) Reconciliation of operating loss to new cash outflow from operating activities Six months Six months Year ended ended ended 31 Jul 2007 31 Jul 2006 31 Jan 2007 (unaudited) (unaudited) (audited) £'000 £'000 £'000Operating (loss)/profit (80) 213 335(Increase) in debtors (83) (415) (326)Increase in creditors 15 69 101 (148) (133) 110 12) Analysis of movement in net funds As at As at 01 Feb 07 Cash flow 31 July 07 £'000 £'000 £'000Cash at bank and in hand 942 (509) 433Bank loan:Due within one year - (450) (450) 942 (959) (17) 13) Related Party Transactions The following information is provided in accordance with Financial ReportingStandard 8 as being transactions with related parties for the year: Six months Six months Year ended ended endedName of related party and nature of Transaction 31 Jul 2007 31 Jul 2006 31 Jan 2007relationship type £'000 £'000 £'000 Jonathan Freeman, Director of Creon Directors fees 13 13 27is a 50% shareholder in CombinedManagement Services Limited Jonathan Freeman, Director of Creon Admin & support 13 16 27is a 50% shareholder in Combined servicesManagement Services Limited This information is provided by RNS The company news service from the London Stock Exchange