AMYT.L Regulatory News (AMYT)

31 Mar 2008 08:00

31 March 2008 Sterling Green Group plc ("the Group" or "the Company") Second Interim Results for the six months ended 31 December 2007

CHAIRMAN'S STATEMENT

Introduction

As envisaged at the time of the publication of the AIM Admission document in April 2007, the Company's accounting reference date was changed to 31 March and accordingly the audited financial statements will cover the 15 month period from 1 January 2007 to 31 March 2008.

In this statement, the financial information covers the unaudited second interim results of the Group for 2007 which covers the period from 1 July 2007 to 31 December 2007.

Results and dividends

The Group generated an unaudited loss before tax for the six month period of ‚£ 895,000 (six months to 30 June 2007 - ‚£318,000 loss) on turnover of ‚£702,000 (six months to 30 June 2007 - ‚£150,000). The Directors do not recommend the payment of a dividend for the period.

The Group had three trading subsidiaries operating during the period, Sterling Green Limited ("SGL"), Sterling Green Mortgages Limited ("SGM") and TaxDebts Limited ("Tax Debts"), which commenced trading in the period. The Group currently provides debt management services through SGL, advice relating to consolidation loans and mortgages through SGM, and personal tax debt payment solutions through Tax Debts.

Outlook

The Board is implementing its strategy of creating a financial services group which offers a wide range of financial solutions to members of the general public who, for a number of reasons, may have over extended themselves with respect to levels of personal indebtedness.

The level of debt issues facing a large proportion of the UK general public is receiving significant coverage in the media. The Board believes that the credit crunch affecting the money markets recently will increase the number of potential clients who could benefit from the services provided by the Group in the medium term and several partnerships have been signed or are in the pipeline which could also lead to an increased number of potential clients being passed onto us. As a result, the Board is looking forward to 2008 with the feeling that it is well placed to offer a comprehensive range of financial solutions to assist the growing number of people who are experiencing problems relating to the level of their personal debt. On the downside, mortgages have become very much more difficult to obtain for clients because of the recent well publicised financial problems and this is likely to result in slower growth in this area until the market settles.

Having recently raised ‚£750,000 before costs for working capital purposes, the Board remains optimistic that the Group will be able to generate growth and enhance shareholder value in the medium term.

Michael EdelsonChairman31 March 2008

CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2007

Six months Six months Year ended ended ended 31 December 30 June 31 December 2007 2007 2006 (Unaudited) (Unaudited) (Audited) ‚£000 ‚£000 ‚£000 Revenue 702 150 - Cost of sales (748) (155) - Gross loss (46) (5) - Administrative expenses (840) (329) (75) Operating loss (886) (334) (75) Investment income 4 16 2 Finance costs (13) - - Loss on ordinary activities before (895) (318) (73)taxation Income tax expense - - - Loss on ordinary activities after (895) (318) (73)taxation Loss per share - basic and diluted (0.36)p (0.16)p (0.13)pCONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2007 31 December 30 June 31 December 2007 2007 2006 (Unaudited) (Unaudited) (Audited) ‚£000 ‚£000 ‚£000 ASSETS Non-current assets Property, plant and equipment 330 355 - Goodwill 1,078 1,078 - Total non-current assets 1,408 1,433 - Current assets Trade and other receivables 138 159 27 Cash and cash equivalents 167 443 61 Total current assets 305 602 88 LIABILITIES Current liabilities Trade and other payables (495) (228) (72) Net current (liabilities)/assets (190) 374 16 Total assets less current 1,218 1,807 16liabilities Non-current liabilities Trade and other payables (175) (219) - Net assets 1,043 1,588 16 EQUITY Share capital 250 250 85 Share capital to be issued 350 - - Share premium account 834 834 - Capital reserve 6 6 6 Other reserves 891 891 - Retained losses (1,288) (393) (75) Total equity 1,043 1,588 16

CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2007

Six months Six months Year ended ended ended 31 December 30 June 31 December 2007 2007 2006 (Unaudited) (Unaudited) (Audited) ‚£000 ‚£000 ‚£000 Cash flows from operating activities Loss before tax (895) (318) (73) Adjustments for: Depreciation 63 18 - Investment income (4) (16) (2) Finance costs 13 - - Share based payment charge - - 6 Decrease/(increase) in trade and 21 (40) (27)other receivables Increase/(decrease) in trade and 267 (94) 68other payables Cash outflow from operating (535) (450) (28)activities Finance costs paid (13) - - Net cash used in operating (548) (450) (28)activities Cash flows from investing activities Acquisition of subsidiary, net of - (152) -cash acquired Purchase of property, plant and (38) (339) -equipment Investment income received 4 16 2 Net cash (used in)/from investing (34) (475) 2activities Cash flows from financing activities Capital element of finance lease (44) (2) -payments Finance leases entered into - 307 - Proceeds in advance of issue of 350 - -share capital Proceeds from issue of share capital - 1,002 35 Net cash from financing activities 306 1,307 35 Net (decrease)/increase in cash and (276) 382 9cash equivalents Cash and cash equivalents at 443 61 52beginning of period Cash and cash equivalents at end of 167 443 61period

STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2007

Share Share Share Capital Other Retained Total capital capital reserve reserves losses to be premium issued account ‚£000 ‚£000 ‚£000 ‚£000 ‚£000 ‚£000 ‚£000 Balance at 1 January 50 - - - - (2) 482006 Loss for the year - - - - - (73) (73) Issue of share 35 - - - - - 35capital Share based payments - - - 6 - - 6 Balance at 1 January 85 - - 6 - (75) 162007 Loss for the period - - - - - (318) (318) Issue of share 165 - 957 - 891 - 2,013capital Share issue costs - - (123) - - - (123) Balance at 30 June 250 - 834 6 891 (393) 1,5882007 Loss for the period - - - - - (895) (895) Share capital to be - 350 - - - - 350issued Balance at 31 250 350 834 6 891 (1,288) 1,043December 2007

NOTES TO THE INTERIM REPORT

FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2007

1. The interim financial statements have not been audited and they do not

constitute full financial statements within the meaning of s240 of the

Companies Act 1985. The statutory accounts for the year ended 31 December

2006 have been delivered to the Registrar of Companies. The auditors'

opinion on those accounts was unqualified and did not contain a statement

under s237(2) or s237(3) of the Companies Act 1985.

2. The next accounting reference date will be 31 March 2008 and financial statements for this period will be prepared in accordance with International Financial Reporting Standards (IFRS) as required by European Law. The interim financial statements have been prepared in accordance with accounting policies that are expected to apply to the financial statements for the period ending 31 March 2008.

3. Basic loss per share has been calculated using a loss for the period of ‚£ 895,000 (‚£318,000 loss for the six month period ended 30 June 2007 and ‚£73,000 loss for the year ended 31 December 2006) and a weighted average number of ordinary shares in issue during the six month period ended 31 December 2007 of 249,675,390 (202,148,621 for the six month period ended 30 June 2007 and 55,833,333 for the year ended 31 December 2006).

Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares in issue assuming conversion of all dilutive potential ordinary shares. The Company's potential ordinary shares consist of share options and deferred consideration shares. Due to the loss in the current and comparative periods there are no dilutive ordinary shares.

4. Goodwill arising on the acquisition of Sterling Green Limited on 27 April

2007 amounting to ‚£1,078,000 has been capitalised.

Goodwill has been calculated on the basis of initial consideration. Deferred consideration may become payable up to a maximum of ‚£1,050,000 but this cannot be assessed as probable at this stage. If additional consideration becomes payable, the value of goodwill will change accordingly. Any deferred consideration payable will be satisfied by the issue of up to 65,625,000 new ordinary shares in the Company. The calculation of additional consideration payable is based on certain revenue and EBITDA targets for the two years ending 31 March 2009.

The Group has taken advantage of s131 of the Companies Act 1985 and has credited the share premium arising on the acquisition of Sterling Green Limited to other reserves.

5. In December 2007 the Company received ‚£350,000 in advance of the issue of

new ordinary shares. Accordingly, this amount has been shown as an equity

balance at 31 December 2007 under the heading `'share capital to be

issued'. Subsequent to the balance sheet date, the ‚£350,000 received has

been allocated as to ‚£14,000 share capital and ‚£336,000 share premium.

On 4 January 2008 the Company issued 22,000,000 new ordinary shares at a price of 2.5 pence per share. On 7 February, the Company issued a further 8,000,000 new ordinary shares at a price of 2.5 pence per share

6. Copies of the Interim Report can be obtained by writing to The Company Secretary, Sterling Green Group plc, Number 14, The Embankment, Vale Road, Heaton Mersey, Stockport, Cheshire SK4 3GN. Alternatively, copies can also be downloaded from the Company's website which is www.sterlinggreen.co.uk.

Further enquiries:Sterling Green Group plc Michael Edelson Tel: 0161 975 0434 John East & Partners Limited David Worlidge/Simon Clements Tel: 020 7628 2200