AMYT.L Regulatory News (AMYT)

27 Sep 2007 07:00

To be released on 27 September 2007 Sterling Green Group Plc ("Sterling Green" or "the Company") Interim Results for the six month period ended 30 June 2007

Chairman's Statement

Introduction

I am pleased to report the Group's interim results for the six month period ended 30 June 2007, the highlights of which are as follows:

* Acquisition of Sterling Green Limited ("SGL"). * Commencement of trading by Sterling Green Mortgages Limited ("SGML"). * Relocation of trading operations to central Manchester. * Group loss per share of 0.16p.

Results and dividend

The Group generated a loss before tax for the period amounting to ‚£318,000 on turnover of ‚£150,000. Included in administrative expenses for the period are one-off costs amounting to ‚£54,000 relating to the admission of the Company's shares to trading on AIM in April 2007.

The results of SGL have only been consolidated into the Group results from 27 April 2007, which was the date the acquisition was completed.

The Group had two trading subsidiaries during the period, Sterling Green Limited and Sterling Green Mortgages Limited. SGML commenced trading during May 2007 and received FSA authorisation earlier this month.

The Directors do not recommend the payment of a dividend for the period.

Acquisition of Sterling Green Limited

SGL was acquired for an initial consideration of ‚£950,000 satisfied by the issue of 59,375,000 ordinary shares in the Company. Subject to certain revenue and EBITDA targets based on the two years ending 31 March 2009, additional consideration may become payable up to a maximum of ‚£1,050,000. Any deferred consideration payable will be satisfied by the issue of up to a maximum of 65,625,000 new ordinary shares in the Company.

Outlook

Following the relocation of trading operations to central Manchester in May 2007, the Group has been able to recruit higher calibre call centre and customer relationship staff which has, in turn, improved the quality of customer service and the rate of customer conversions from the call centre operations.

The Board's strategy is to create 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 Group currently provides debt management services and, following the receipt of FSA authorisation earlier this month, is also able to provide new and existing clients with advice relating to consolidation loans and mortgages.

Since the period end, the Company has created TaxDebts Limited ("Tax Debts"), a wholly owned subsidiary of the Company, which specifically targets customers who have tax related debt issues. Tax Debts has made an encouraging start to trading and early indications suggest that significant growth opportunities exist in this sector.

The level of debt issues facing the majority of the UK general public has received significant coverage in the media in the last six months. The Directors believe the credit crunch that has affected the money markets recently will increase the number of potential clients who may benefit from the Group's services.

The Board is confident 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 indebtedness.

The Board anticipates further progress will be made in the current period and remains confident that it will be able to generate growth to enhance shareholder value.

Michael EdelsonChairman27 September 2007

For further information please contact:

Sterling Green Group plc Michael Edelson 0161 975 0935 John East & Partners Limited Simon Clements 020 7628 2200

Consolidated Income Statement

For the six month period ended 30 June 2007

Six months ended Year 30 June ended 2007 31 December 2007 (Unaudited) (Audited) ‚£000 ‚£000 Revenue 150 - Cost of sales (155) - Gross loss (5) - Administrative expenses (329) (75) Finance income 16 2 Loss on ordinary activities before taxation (318) (73) Income tax expense - - Loss on ordinary activities after taxation (318) (73) Loss per share - basic and diluted (0.16)p (0.13)pConsolidated Balance SheetAs at 30 June 2007 30 June 31 December 2007 2006 (Unaudited) (Audited) ‚£000 ‚£000 Assets Non-current assets Property, plant and equipment 355 - Goodwill 1,078 - Total non-current assets 1,433 - Current assets Trade and other receivables 159 27 Cash and cash equivalents 443 61 Total current assets 602 88 Current liabilities Trade and other payables (228) (72) Net current assets 374 16 Total assets less current liabilities 1,807 16 Non-current liabilities Trade and other payables (219) - Net assets 1,588 16 Equity Share capital 250 85 Share premium account 834 - Capital reserve 6 6 Other reserves 891 - Retained losses (393) (75) Total equity 1,588 16

Consolidated Cash Flow Statement

For the six month period ended 30 June 2007

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

Statement of Changes in Equity

For the six month period ended 30 June 2007

Share Share Capital Other Retained Total capital premium reserve reserves losses ‚£000 ‚£000 ‚£000 ‚£000 ‚£000 ‚£000 Balance at 1 January 50 - - - (2) 482006 Loss for the year - - - - (73) (73) Issue of share capital 35 - - - - 35 Share based payments - - 6 - - 6 Balance at 1 January 85 - 6 - (75) 162007 Loss for the period - - - - (318) (318) Issue of share capital 165 957 - 891 - 2,013 Share issue costs - (123) - - - (123) Balance at 30 June 2007 250 834 6 891 (393) 1,588

Notes to the Interim Report

For the six month period ended 30 June 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. The accounting

reference date has now been changed to 31 March.

2. The interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as required by European Law.

3. Basic loss per share has been calculated using a loss for the period of ‚£ 318,000 (‚£73,000 loss for the year ended 31 December 2006) and a weighted average number of ordinary shares in issue during the period 1 January 2007 to 30 June 2007 of 202,148,621 (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. 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.

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.

5. 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.