CLP.L Regulatory News (CLP)

30 Sep 2008 09:40



FOR IMMEDIATE RELEASE 30 SEPTEMBER 2008

BRAINSPARK Plc ("Brainspark" or "the Company")

UNAUDITED INTERIM RESULTS FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2008

  Chairman's statement

In the six months ended 30 June 2008, the Company made a profit before taxation of £12k, compared to a profit of the comparative period last year of £4k. Brainspark's efforts were devoted to the launch of China IPO Group PLC, an investment company focusing on opportunities in China. Meanwhile Brainspark's management continue to realise value from the existing UK asset portfolio. Proceeds will be utilised to develop the Chinese operations.

Financial Summary

The consolidated net asset value at 30 June 2008 was £3,583k up from £3,571k at 31 December 2007. At 30 June 2008, Brainspark's mid-market share price of 0.4p valued the company at £1,320k against a consolidated net asset value of £3,583k.

First Half 2008 Events. 

On 30 June the Company sold its 17.5% holding, 54,690 'A' ordinary shares,1490 warrants and £300k loan  in Easyart Holdings (UK) to Svenska Konstbolaget AB, being inter alia the Nordic venture capital company Verdane Capital, for £200k in cash. The transaction valued Easyart at £857k. 

Brainspark's management remain committed to continue the positive trend of the Company during the final part of the year 

Portfolio Review 

At of 30 June 2008 Brainspark had holdings in 7 companies, 2 in the UK, 1 in Jersey, 2 in Italy, 1 in Israel and 1 in the United States. Its stakes range from nearly 0.5% to 42.71% in these companies. The portfolio covers a wide range of business sectors, including web services, application service providers, advanced IT solutions and an investment company. 

In April 2008 IPO Beijing Investment Consulting Ltd, a wholly owned subsidiary of China IPO Group PLC was incorporated It opened its first office in Beijing in June 2008 and also established a second office in Xi'an  Brainspark has provided  China IPO Group PLC with working capital loans of £155,000. 

China IPO Group fund raising continued in the first half of 2008 and despite adverse market conditions the Company remains confident that a first round of financing will be closed before the end of the year.

Further progress for the second half of 2008

During the second half of 2008 Brainspark continued the positive trend of the first six months.

During August 2008 Geosim (www.geosim.co.il), entered into a new agreement with two US shareholders which secured a $500,000 loan to the company. The company was reliant upon the completion of $3m funding, for its future development, having only secured $1.5m. The company is now entirely dependent on further funds to be made available from existing, or future investors. Sales of advertising contracts for the 3D Philadelphia website have begun and more efforts, subject to successful fund raising, will be devoted by the company on marketing and sales activities in Philadelphia.

The investment in Geosim is held in the company's book at £1.83m. and the Directors will need to review it in the event that Geosim fails to raise the necessary funding to sustain its business.

Prof. Francesco Gardin

Chairman

30 September 2008

Financial Statements

________________________________________________________

Consolidated Income Statement for the six months ended 30 June 2008

Consolidated Balance sheet at 30 June 2008

Statement of changes in equity

For the six month period ended 30 June 2008

Consolidated cash flow statements

For the six months ended 30 June 2008

Notes to the financial statements

1 Accounting policies

3 Earnings per share

The basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is computed using the same weighted average number of shares during the period adjusted for the dilutive effect of share warrants and convertible loans outstanding during the period.

Notes to the financial statements

The profit and weighted average number of shares used in the calculation are set out below:

IAS 33 requires presentation of diluted earnings per share when a company could be called upon to issue shares that would decrease earnings per share or increase net loss per share. For a loss making company with outstanding share options and warrants, net loss per share would only be increased by the exercise of out-of-the money options and warrants. Since it seems inappropriate that option holders would act irrationally, no adjustment has been made to diluted earnings per share for out-of-the money options and warrants in the comparatives. There are no other diluting share issues, in either financial period, consequently diluted earnings per share equals basic earnings per share.

4 Investments in associates 

Notes to the financial statements

5 Available for sale investments

6 Related party transactions

Prof. Francesco Gardin and "S.I.C.I. sas di F. Gardin" are paid £80,000 per annum for the provision of services. Financial Fun Limited, of which Mr. Bailey is Chairman, is paid £20,000 per annum for the provision of Mr. Bailey's services.

7 Board Approval

The Interim Statement was approved by the Board on 30 September 2008.

8 Availability of Interim Results

Copies of the Interim Results will be available from the Lightwell, 12-16 Laystall Street, London, EC1R 4PF and from the Company's website, www.brainspark.com.

For further information, please contact:

Francesco Gardin, Brainspark plc, telephone: 00 39 335 296573

Roland Cornish, Beaumont Cornish Limited, telephone: 020 7628 3396