29 Oct 2010 07:00
For immediate release: 29 October 2010
Creon Corporation Plc Interim results for the six months ended 31 July 2010
Creon Corporation Plc (AIM: CRO) today announces its interim results for the six months ended 31 July 2010.
DIRECTORS' REPORT Introduction
I am pleased to present these interim results of Creon Corporation Plc ("Creon", the "Group", or the "Company") for the six months ended 31 July 2010 to shareholders.
OperationsThe Company's shareholders approved a broader investment strategy for the Groupat the Company's annual general meeting held in July this year. Accordingly,the Group's investment policy allows investments in private companies, publiclyquoted companies and partnerships without the constraint of having to berestricted to any particular industry sector. The Company will primarily focuson European based businesses but will also consider investments in othergeographical areas if appropriate. The Group will not seek to limit the size ofthe investment or the size of the entities in which it invests. The Group's investment strategy does not limit the number of investments thatthe Company can make, however it is envisaged that the total number ofinvestments at any given time will not exceed 50 investments. The Group doesnot envisage at this stage gearing its investments but may consider doing so inthe future. The Board is currently reviewing a number of investmentopportunities and anticipates making an investment during the course of thenext 12 months. The Group plans to identify its investments through the extensive network ofcontacts of the Board and the Group's financial advisers and consultants. Oncepotential investments have been identified, the Board will evaluate them on thebasis of research prepared and presented to the Board by its financial advisersand consultants. The Board believes that this investment policy will helpmaintain the Group's low cost base whilst having the potential to deliverimproved returns for shareholders.
Financial review
The Group recorded a loss during the period under review of £50,000, a materialreduction from the £96,000 loss recorded in the corresponding period in 2009.Loss per share for the period was 0.11p (H1 2009: 0.22p). This reduction wasprimarily due to the board's tight control of costs during the period, whilstat the same time managing to review investment opportunities.
The Group's net assets at the period end of £446,000 remain weighted towards the investment in the unquoted 7% preference share which is not due for repayment until 2013. At the balance sheet date, the Group also had a performing commercial loan outstanding of £97,000, which is not due for repayment until July 2011. £13,000 of this loan was repaid by the borrower during period, together with interest due.
Outlook
The Directors and their advisers are continuing to review and evaluate investment projects and are hopeful of being able to complete on a material transaction in during the course of 2011. Any transaction would require the need to raise further equity for investment from existing and potentially new shareholders.
CREON CORPORATION PLC
GROUP STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 31 July 2010
6 months ended 6 months ended 12 months ended Note 31.7.10 31.7.09 31.1.10 £'000 £'000 £'000 Revenue - 4 4 Cost of Sales 10 (10) (15) ______ ______ ______ Gross profit / (loss) 10 (6) (11) Administrative expenses (67) (101) (152) ______ ______ ______ Loss from operations (57) (107) (163) Financial income 7 11 18 Financial expense - - (2) ______ ______ ______ Loss on ordinary (50) (96) (147)activities before taxation Tax on (loss) on - - -ordinary activities ______ ______ ______ Loss on ordinary (50) (96) (147)activities after taxation ______ ______ ______ Loss per share 1 (0.11)p (0.22)p (0.33)p
Consolidated unaudited statement of financial position
As at As at As at 31.7.10 31.7.09 31.1.10 £'000 £'000 £'000 Note Assets: Non Current Assets Investment properties - 335 - Investment in unquoted 2 400 400 400 preference shares _____ _____ _____ 400 735 400 Current Assets
Investments in quoted shares 6 6 6
Loans receivable 3 97 135 110 Other receivables 31 22 22 Cash and cash equivalents 3 - 16 _____ ____ ____ 137 163 154 Total Assets 537 898 554 Liabilities: Current Liabilities Trade and other payables (91) (101) (58) Interest bearing loan - (250) - ____ ____ ____ Total Liabilities (91) (351) (58) Net Assets 446 547 496 Capital and Reserves Called up equity share 440 440 440 capital Share premium account 3,816 3,816 3,816 Retained earnings (3,810) (3,709) (3,760) ____ ____ ____ Total Equity 446 547 496
Unaudited consolidated cash flow statement
6 months 6 months 12 months ended ended ended 31.7.10 31.7.09 31.1.10 £'000 £'000 £'000
Reconciliation of operating profit to net cash flow from operating activities Loss for the period / year before tax (50) (96) (147) Adjustments for: Finance cost - - 2 Investment income (7) (11) (18) Impairment of investment - 13 13 Change in receivables 4 219 219 Change in payables 33 (3) (46) ____ ____ ____
Cash flows from operating activities (20) 122 23
Interest received 7 11 18 ____ ____ ____ 7 11 18 Investing activities Loans made net of repayments - (135) (110) Interest paid - - (2) ____ ____ ____ Net cash used in investing activities - (135) (112) Financing activities (Repayment) of bank borrowings - -
(250)
Sale of investment properties - - 335
____ ____ ____
Net cash from financing activities - - 85
Net (decrease) in cash and equivalents (13) (2) 14 Cash and equivalents at beginning of year 16 2 2 Cash and equivalents at end of year 3 - 16
NOTES TO THE INTERIM ACCOUNTS
1. Loss per share
The basic and diluted loss per share for the period ended 31 July 2010 was 0.11p. The calculation of loss per share is based on the loss of £50,000 for the period ended 31 July 2009 and the weighted average number of shares in issue during the period of 43,990,545.
2. Investment in unquoted preference shares
The investment in unquoted preference shares represents 400,000 £1 non-votingredeemable preference share held in Pinnacle Plus Limited ("Pinnacle"). Thepreference shares accrue interest at an annual rate of 7.0 per cent., payableon the date of redemption, with redemption being at Pinnacle's discretion atany time up to September 2013, upon which date they will be automaticallyredeemed. 3. Loans receivableLoans receivable represents a short-term loan made by the Company in February2009 of £200,000, £103,000 of which had been repaid as at 31 July 2010,including interest due thereon, with the balance of £97,000 due for repaymentin July 2011, unless deferred to a later date, as agreed between the Companyand the borrower.
4. Preparation of interim report
This report was approved by the Directors on 28 October 2010.
The Company's interim report for the period ended 31 July 2010 is available to view and download from the Company's website at www.creoncorporation.com.
For further information please contact:
Guus Berting, Creon Corporation +44 (0)20 7752 0215Oliver Rigby, Daniel Stewart & Company Plc +44 (0)20 7776 6550Toby Hall / Christian Pickel, GTH Communications
+44 (0)20 3103 3900
vendor