Amedeo Resources Regulatory News (AMED)

27 Oct 2005 07:00

Creon Corporation PLC27 October 2005 27 October 2005 CREON CORPORATION PLC UNAUDITED INTERIM RESULTS FOR THE PERIOD ENDED 31 JULY 2005 Creon Corporation Plc ("Creon" or "the Company"), the AIM-traded company, ispleased to announce its unaudited results for the period ended 31 July 2005. Highlights: • £1.493 million of gross funds raised • Admission to trading on AIM achieved • Mezzanine financings completed in line with stated strategy Jonathan Freeman, a Director of Creon, commented: "Our overall aim with Creon is to identify and support small and medium sizedresidential property developers. We believe that we are now doing thissuccessfully and that we have established the profile and expertise to build onthis platform. The projects that we currently have and others that we areevaluating should provide Creon with attractive levels of return within anacceptably low level of risk. We look forward to progress in the coming monthsas we seek to continue to find and fund further residential developments." For further information: Jonathan Freeman, +44 (0) 1600 750 432Director, Creon Corporation plc Alasdair Robinson +44 (0) 131 225 9677Noble & Company Limited CREON CORPORATION PLC UNAUDITED INTERIM RESULTS FOR THE PERIOD ENDED 31 JULY 2005 Directors Review Introduction We are delighted to present these first interim results to shareholders whichshow the financial performance of the Company for the period ended 31 July 2005.It should be noted, however, that although Creon was incorporated on 27 August2004 it did not raise its first material funds or seek to begin its investmentactivities until after its admission to trading on AIM on 25 November 2004.Creon provides mezzanine finance to small and medium sized UK residentialproperty developers. This style of financing typically takes some months tonegotiate with the developers. In addition the finance provided is usually fora fixed 12 month period. Accordingly these interim results cover too short aperiod for there to be material revenue changes to the Company's financialposition. Financing We announced on 29 June 2005 that we had successfully completed our firstfinancing, which was the provision of £400,000 to support a £2.7 milliondevelopment of ten new houses in the Midlands. On 20 July 2005 we announced thecompletion of a further financing, providing £390,000 to support a £2.2 milliondevelopment of 5 new houses in South West England. We will receive an agreedfinance fee on repayment of the facility in twelve months time. We continue to negotiate with developers on a range of other developments andexpect to continue to provide funds to property developers on an increasinglyregular basis. Funding Our only material fund raisings occurred in November 2004 when a total of £1.493million (gross) was raised. Against this we have incurred considerable one offcosts in the creation of the Company, the raising of the funds, gainingadmission to trading on AIM and the setting up the internal infrastructure,procedures and processes for the assessment and negotiation of potentialfinancing projects. We believe that this process has now been completed thoughwe will, of course, continue to supervise and monitor the Company's processesand controls with a view to improving and updating them as necessary. CREON CORPORATION PLC UNAUDITED INTERIM RESULTS FOR THE PERIOD ENDED 31 JULY 2005 Funding (continued) We also have an option agreement with Forestdale Trading Limited, information onwhich was disclosed at the time of Creon's admission to trading on AIM. Thisoption agreement entitles Creon to exercise an option requiring ForestdaleTrading Limited to procure the subscription by third party investors of £1.6million for new ordinary shares during the one month period following eightmonths after admission to trading on AIM, failing which it is to subscribe forsuch shares itself. Creon is completing the arrangements for this and willannounce the details as soon as it is completed. We had anticipated, when we were planning the funding requirements of Creon atthe end of 2004, that the funds raised at the time of Admission together withthe option agreement with Forestdale Trading Limited, would provide sufficientcash resources for Creon as financings would begin to be recycled by the timethis equity funding had been utilised. However, we have found that the demandfor the financing offered by Creon is much greater than expected. We aretherefore seeking additional sources of funding in order to accelerate thedevelopment of the Company. Outlook The Directors believe that the financings already provided are proceeding asanticipated and that the pipeline of potential new business under review is verystrong. We therefore look forward to the future as we begin to use the profileand platform we have created. We believe that the projects that we are nowaccessing should provide Creon with attractive levels of return within anacceptably low level of risk. Jonathan FreemanJames Barder • October 2005 CREON CORPORATION PLC UNAUDITED INTERIM RESULTS FOR THE PERIOD ENDED 31 JULY 2005 Unaudited profit and loss account 11 Nov 2004 - 27 Aug 2004 - 31 Jul 2005 10 Nov 2004 Note £'000 £'000 Turnover 1 33 -Cost of sales (4) -Gross profit 29 -Administrative expenses (110) -Loss on ordinary activities before interest (81) -Interest received 28 -Interest paid - -Loss on ordinary activities before tax (53) -Tax on loss on ordinary activities - -Loss on ordinary activities after taxation (53) - Loss per share 2 89p - There were no recognised gains or losses other than the loss for the period. CREON CORPORATION PLC UNAUDITED INTERIM RESULTS FOR THE PERIOD ENDED 31 JULY 2005 Unaudited balance sheet As at As at 31 Jul 10 Nov 2005 2004 Note £'000 £'000Current AssetsDebtors 3 719 -Cash at bank 476 493 1,195 493 Creditors: amounts falling due within one year (23) Net current assets 1,172 -Net Assets 1,172 493 Capital and ReservesCalled up equity share capital 61 41Share premium 1,164 452Profit and loss account (53) -Total Equity Shareholders' Funds 4 1,172 493 CREON CORPORATION PLC UNAUDITED INTERIM RESULTS FOR THE PERIOD ENDED 31 JULY 2005 Unaudited Cash Flow Statement 11 Nov 2004 - 27 Aug 2004 - 31 Jul 2005 10 Nov 2004 Note £'000 £'000 Net cash outflow from operating activities 5 (777) -Returns on investment and servicing of financeInterest received 28 -Interest paid - - (749) -Taxation - -Capital expenditurePurchase of tangible fixed assets - -Net cash outflow before financing (749) -FinancingIssue of equity shares 732 493(Decrease) / Increase in cash in the period (17) 493 Reconciliation of net cash to movement in net funds 11 Nov 2004 - 27 Aug 2004 - 31 Jul 2005 10 Nov 2004 £'000 £'000 (Decrease)/Increase in cash in the period (17) 476Movement in net funds resulting from cash flows (17) 476Movement in net funds in period (17) 476Net funds at start of period 493 -Net funds at end of period 476 476 Analysis of movement in net funds As at Cash flow As at 10 Nov 04 £'000 31 July 05 £'000 £'000 Cash at bank and in hand 493 (17) 476 CREON CORPORATION PLC UNAUDITED INTERIM RESULTS FOR THE PERIOD ENDED 31 JULY 2005 Notes to the interim results 1) Accounting policies Basis of accounting The financial statements have been prepared under the historical cost conventionand in accordance with applicable accounting standards and the Companies Act1985. Turnover Turnover represents fees receivable on an accruals basis exclusive of ValueAdded Tax. 2) Earnings per Share The calculation of loss per ordinary share is based on the loss per accounts forthe period from 11 November 2004 to 31 July 2005 of £53,000 and the 6,125,000shares in issue on admission to trading on AIM and at 31 July 2005. Prior toadmission the Company had not started trading. 3) Debtors As at 31 July 05 £'000 Loans to developers 680Accrued income 33Prepayments 6 719 All debtors are due within one year. 4) Shareholders funds As at 31 July 05 £'000 Shareholders funds at 10 November 2004 493Loss for the period (53)Issue of shares - share capital 20Issue of shares - share premium 712Shareholders funds at 31 July 2005 1,172 5) Cash flow Reconciliation of operating loss to net cash outflow from operating activities 11 Nov 2004 - 27 Aug 2004 - 31 Jul 2005 10 Nov 2004 £'000 £'000 Operating loss (81) -(Increase) in debtors (719) -Increase in creditors 23 - (777) - 6) The results for the period ended 31 July 2005 are unaudited and do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. 7) The company was granted a dispensation allowing the first unaudited statement of interim results to cover the trading period from 10 November 2004 to 31 July 2005. Following this initial submission of results, future interim and annual audited results will be for 6 month and 12 month periods respectively. The next Annual Report will therefore be for the period to 31 January 2006. 8) The unaudited comparative figures for the period from 27 August 2004 to 10 November 2004 represent the financial information disclosed in the admission document. 9) The interim report is being sent to shareholders. In addition copies are available from the Company's registered office, 120 Old Broad Street, London, EC2N 1AR. This information is provided by RNS The company news service from the London Stock Exchange