Creo Medical Regulatory News (CREO)

27 Sep 2006 09:30

China Real Estate Opportunities SA 27 September 2006 27 September 2006 China Real Estate Opportunities S.A. Interim Results for the period ended 30 June 2006 CHAIRMAN'S STATEMENT I am pleased to announce the maiden interim results of your Company, China RealEstate Opportunities S.A. ("CREO" or "the Company"), for the period from itsincorporation on 6 December 2005 to 30 June 2006. For the period under review the Company made an operating loss of €2.04 millionand had net cash of €19.54 million at the end of the period. Your Board continues to evaluate a number of potential transactions in Chinaand, although we have not to date considered any suitable to progress tocontract stage, I am pleased to report that a number of promising prospectiveacquisitions are now under consideration. We apply strict criteria whenevaluating transactions and undertake comprehensive due diligence. Whilst thisis very time-consuming it is, we believe, critical to the process to ensure thatwe only contract for the right deals after in-depth research. It would be wrongat this stage in the Company's development to give forward indications on timingbut shareholders will be kept informed on developments. CREO, through its associate Treasury Holdings, has committed significantresources to China and has two Directors now working full time in Shanghai,complemented by approximately 15 other full time staff, researching andassessing potential transactions. The Board is encouraged by the continuing strong growth of the Chinese economyand in particular by the outstanding opportunities in the Chinese real estatemarket. China's GDP continued its strong upward trend, increasing by 10.3% in the yearto March 2006 while retail sales in the first 6 months of 2006 were 13.3% higherthan in the first 6 months of 2005, with the larger urban centres of Beijing andShanghai experiencing even higher GDP growth rates. Prime rents and capital values across all sectors continued to increase in mostparts of China during 2006. During the second quarter of the year, Shanghaioffice rents increased by 3.1%, retail rents by 3.8% and luxury residentialrents by 1.3%. These growth rates were driven by lack of supply of quality spaceand robust demand from multinational corporations. The growth in demand fromforeign companies is expected to continue in the future as World TradeOrganisation driven economic reforms are implemented. A recent study by PricewaterhouseCoopers in association with the Urban LandInstitute, a US based research institute, ranked Shanghai first in the AsiaPacific area in terms of investment and development prospects and third in termsof the real estate market's potential. Outlook Your Board remains confident that CREO will build up a substantial portfolio ofdevelopment and investment opportunities in China and looks forward to updatingshareholders in due course. Ray HorneyChairman Enquiries to: CREORay Horney, ChairmanTel: +44 (0)1273 775225Guy Leech, Group Finance DirectorTel: +353 1 6189300 Teather & GreenwoodPaul FinchamTel: +44 (0)20 7426 7736 Bankside ConsultantsSimon RothschildOliver WintersTel: +44 (0)20 7367 8871 --------------------------- ---------Income Statement 2006From 6 December 2005 to 30 June 2006 •--------------------------- --------- Operating Expenses (2,229,307)Investment income 191,521 --------- Loss before taxation (2,037,786) Income tax expense - ---------Loss for the period (2,037,786) ========= ---------Loss per share (in Euro cent) (0.09) ========= --------------------------- ---------Balance Sheet 2006As at 30 June 2006 •--------------------------- --------- Current assets Cash and cash equivalents 19,541,266Debtors: amounts falling due within one year 2,865,102 =========Total assets 22,406,368 ========= Equity Issued capital 23,000,000Share option reserve 750,000Retained loss (2,037,786) ---------Shareholders' funds - equity 21,712,214 --------- Total current liabilities Trade and other payables 694,154 -------- ---------Total equity and liabilities 22,406,368 --------- -------------------------- --------Cash Flow statement 2006Period ended 30 June 2006 •-------------------------- -------- Operating activities Loss for the period (2,037,786)Share based payments 750,000Increase in debtors (2,865,102)Increase in trade and other payables 694,154 --------Net cash outflow from operating activities (3,458,734) ======== Financing activities 2006 • Issuance of share capital 23,000,000 --------Net cash inflow from financing activities 23,000,000 ========Increase in cash and cash equivalents 19,541,266 ======== Notes:Forming part of the financial statements 1. Basic loss per share The calculation of the basic earnings per share is based on the following data: 2006 • ---------Attributable earnings (2,037,786)Weighted average number of shares 23,000,000 ---------Loss per share (in Euro cent) (0.09) ========= 2. Income tax expense In the jurisdiction that the company is registered, the income tax rate is nil,as other forms of taxation are applied. 2006 • --------Current tax:Corporation tax at 0% (2004: 0%) on the loss for the period on ordinary activities - --------Total current tax - ======== 3. Employees and remuneration The Company did not employ any persons during the period, save for the directorswho received no remuneration during the financial period. 4. Debtors: amounts falling due within one year The debtor balance at 30 June 2006 included a refundable deposit of €2,819,852.This amount was repaid in full to the company on 7 July 2006. 5. Equity 2006 • --------Authorised:20,000,000 ordinary shares of €1.25 each 25,000,000 ========= 2006 • ---------Allocated and called up:18,400,000 ordinary shares of €1.25 each 23,000,000 ========= On 6 December 2005 24,800 ordinary shares were issued fully paid as subscribershares at a price of €1.25 each. On 22 December 2005 18,375,200 ordinary shares were issued at a price of €1.25each for cash. 6. Share option reserve Share options have been conditionally granted over 920,000 ordinary shares inthe Company, equivalent to 5 per cent. of its current issued share capital. Theoptions, which were granted on 1 February 2006, are not exercisable before 1February 2008, and their exercise is conditional, inter alia, on the Companyhaving made an acquisition or acquisitions with a gross value of €100 million ormore. The options, exercisable at €1.25 per share being the price at which ordinaryshares were issued when the Company was launched in December 2005, were grantedto the directors of the Company and others involved in the day to day activitiesof the Company in China. The number of options granted to directors of theCompany is as follows: No of share optionsRichard Barrett 365,000Raymond Horney 75,000Guy Leech 75,000Rory Williams 75,000 The share option reserve represents the directors' interim fair value provisionfor the share options conditionally granted. 7. Reconciliation of movements in shareholders' funds and profit and lossaccount 2006 • Total recognised losses for the period (2,037,786) Opening shareholders' funds - equity - Share option reserve 750,000 Share capital issued during the period 23,000,000 ---------Closing shareholders' funds - equity 21,712,214 ========= Loss for the financial period (2,037,786) Profit and loss account at beginning of period - ---------Profit and loss account at end of period (2,037,786) ========= 8. The Interim Results have been prepared in accordance with International Financial Reporting Standards (IFRS) and their interpretations adopted by the International Accounting Standards Board (IASB). The Interim Results also comply with IFRS as endorsed by the European Commission. This information is provided by RNS The company news service from the London Stock Exchange