Citius Res Regulatory News (CRES)

29 Sep 2006 12:48

Crescent Hydropolis Resorts PLC29 September 2006 29 September 2006 Crescent Hydropolis Resorts plc ("CHR" or "the Company") INTERIM REPORT FOR THE PERIOD ENDED 30 JUNE 2006 Chairman's Statement Crescent Hydropolis Resorts PLC (CHR), the world's leading developer of ultra-luxury underwater resort hotels under the Hydropolis design concept, announcesits interim results for the period ended 30 June 2006. The Company had€2.395.998 in cash as at 30 June 2006. The main items of expenditure relate todevelopment costs associated with furthering CHR's proposed Hydropolis projectat Qingdao, China, including legal, engineering, technical feasibility andtravel costs. CHR has formed a local project management company in Qingdao, CrescentHydropolis Qingdao Limited (CHQ), and CHQ received its operating license fromthe governmental authorities of the Laoshan District in Qingdao City, China on23 August 2006. This license to do business in China has enabled your Company'slocal project development subsidiary, CHQ, to apply for full permits andlicensing authorities for the project's HydroTower(R) landstation andHydroPalace(R) construction phases. Construction of the HydroTower is expectedto start during the fourth quarter, subject to these licensing approvals andfinancing being granted. The HydroTower's superstructure (defined as the outershell of the building, including all facilities - water, electricity, sanitationsystems and common areas) is planned for completion prior to the start of the2008 Beijing Olympic Games, with residential interiors customized for eachpotential apartment unit owner being completed on a schedule determined by eachpurchaser. Construction on the underwater HydroPalace(R) is still planned forcompletion in late 2009/early 2010. Detailed marine studies, surveys of steel manufacturing and shipbuilding yardsand site surveys of the land on the Yellow Sea Coast have been concluded by yourCompany's engineering advisers and a suitable proposal to construct the hull ofthe HydroPalace has been agreed in principle with local construction groups inQingdao as well as at shipyards in northern China. These agreements will bedetailed further in a forthcoming announcement when contracts have been agreed. The Dubai project remains a priority for the Company. Land allocation rights,location and project financing are presently being negotiated and discussed withDubai governmental authorities. Additionally, CHR is undertaking severalmanagement changes in its second year of operations to prepare for thecommencement of the construction phase for the first Hydropolis underwater hotelproject. Alfred Wuttke, formerly deputy chief of UBS Stuttgart, will assume therole of chief executive effective 9 October 2006. Mr Wuttke brings over 20years of banking and finance experience to CHR at a critical time when arrangingfinancing for the Qingdao project is the paramount matter of interest for ourshareholders. Mansoor Ijaz, presently chief executive, will assume the role ofdeputy chairman of the Board of Directors, remaining as an executive director. These changes will add depth to the management team and strengthen prospects forcompleting the Qingdao project's early phases. The Company maintains its strongrelationships with project manager, SIBC Industrial Building Consultants, andSiemens AG, for engineering and technology support............................................................. Joachim Hauser, Executive Chairman Munich, 29 September 2006 INDEPENDENT REVIEW REPORT TO CRESCENT HYDROPOLIS RESORTS PLC Introduction The Board of Directors of Crescent Hydropolis Resorts PLC (the Company) haveinstructed us to review the financial information set out on pages 3 to 5 and wehave read the other information contained in the Interim Report and consideredwhether it contains any apparent misstatements or material inconsistencies withthe financial information. This report is made solely to the Company in accordance with Bulletin 1999/4issued by the Auditing Practices Board. Our work has been undertaken so that wemight state to the Company those matters we are required to state to them in anindependent review report and for no other purpose. To the fullest extentpermitted by law, we do not accept or assume responsibility to anyone other thanthe Company, for our review work, for this report, or for the conclusions wehave performed. Directors' Responsibilities The Interim Report, including the financial information contained therein, isthe responsibility of, and has been approved by the Company's Directors. The AIMRules require that the accounting policies and presentation applied to theinterim figures should be consistent with those applied in preparing thepreceding annual accounts except where any changes, and the reasons for them,are disclosed. Review Work Performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board. A review consists principally of makingenquiries of group management and applying analytical procedures to thefinancial information and underlying financial data and based thereon, assessingwhether the accounting policies and presentation have been consistently appliedunless otherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance with AuditingStandards and therefore provides a lower level of assurance than an audit.Accordingly, we do not express an audit opinion on the financial information.To the fullest extent permitted by law, we do not accept or assumeresponsibility to anyone other than the Company and the Company's members as abody, for our audit work, for this report, or for the opinions we have formed. Review conclusion On the basis of our review, we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 June 2006. CHANTREY VELLACOTT DFK LLP Chartered Accountants London 28 September 2006 CRESCENT HYDROPOLIS RESORTS PLC INCOME STATEMENT FOR THE PERIOD ENDED 30 JUNE 2006 Note Period ended Period ended 30 June 31 December 2006 2005 • • Management and Project Development Costs 9 125,103 2,294,282Administrative Expenses 157,731 410,907 Loss on ordinary activities before interest (282,834) (2,705,189) Interest receivable 5 30,056 13,339 Taxation - - RETAINED LOSS (252,778) (2,691,850) Loss per share Basic and diluted 2 0.6c 6.2c All of the above amounts relate to continuing activities. There were no recognised gains and losses other than the results shown above. CRESCENT HYDROPOLIS RESORTS PLC UNAUDITED BALANCE SHEET AS AT 30 JUNE 2006 30 June 30 December 2006 2005 Note • • ASSETS Intangible assets 6 40,750,000 40,750,000 Current assetsTrade and other receivables 2,600 1,711Cash and cash equivalents 2,395,998 2,639,566 TOTAL ASSETS 43,148,598 43,391,267 Equity and LiabilitiesShareholders' equity Share capital 3 810,286 810,286Capital reserves 34,368,282 34,368,282Accumulated losses (2,944,628) (2,691,850) 32,233,940 32,486,718 Non-current liabilitiesLong term liabilities 7 10,750,000 10,750,000Total non current liabilities 10,750,000 10,750,000 Current liabilities Trade and other payables 164,658 154,549 Total current liabilities 164,658 154,549 Total liabilities 10,914,658 10,904,549 TOTAL EQUITY & LIABILITIES 43,148,598 43,391,267 CRESCENT HYDROPOLIS RESORTS PLC STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 JUNE 2006 Share Capital Accumulated capital reserves losses Total • • • • Balance at 31 December 2005 810,826 34,368,282 (2,691,850) 32,486,718Loss for the period - - (252,778) (252,778) Balance at 30 810,826 34,368,282 (2,944,628) 32,233,940June 2006 CRESCENT HYDROPOLIS RESORTS PLC UNAUDITED CASH FLOW STATEMENT FOR THE PERIOD ENDED 30 JUNE 2006 Period Ended Period Ended 30 June 31 December 2006 2005 • •Cash Flows from Operating ActivitiesLoss from Operations (282,834) (2,705,189) Operating Cash Flows before movement in Working Capital (282,834) (2,705,189)Increase in trade receivables (889) (1,711)Increase in trade payables 10,099 154,549 Returns on investments and servicing of finance Interest received 30,056 13,339Net cash inflow from returns on investments and servicing of finance 30,056 13,339Cash flows from financing activities Share capital issued (net of costs) - 5,178,568 Net Cash Flows from Financing Activities - 5,178,568 (Decrease)/increase in Cash (243,568) 2,639,556 Cash and cash equivalents brought forward 2,639,556 - Cash and cash equivalents carried forward 2,395,998 2,639,556 NOTES TO INTERIM REPORT FOR THE PERIOD ENDED 30 JUNE 2006 1. Basis of Preparation The Interim Accounts have been prepared in accordance with applicableinternational accounting standards and the Company's established accountingpolicies. The Interim Accounts do not constitute statutory accounts within themeaning of S.240 of the Companies Act 1985. 2. Loss per Share Six months Period ended ended 30 June 31 December 2006 2005 • • Loss for the period from continuing operations (252,778) (2,906,733) Weighted average number of ordinary shares in issue during the period 40,181,321 43,585,444 Loss per share Basic 0.6c 6.2c There are no dilutive instruments over the period. 3. Share Capital 30 June 31 December 2006 2005 • •Authorised1,000,000,298 ordinary shares of €0.01 each 10,000,000 10,000,000 Called up, allotted and fully paid:Ordinary shares of €0.01 each 810,286 810,286 4. Directors' emoluments Directors' were paid a total of €26,526 in remuneration during the period. 5. Interest receivable Period ended Period ended 30 June 31 December 2006 2005 • • Bank interest 30,056 13,339 6. Intangible fixed assets 30 June 2006 •Cost At 31 December 2005 and at 30 June 2006 40,750,000 The directors believe that the know-how has an indefinite useful economic life. 7. Non-current liabilities 30 June 31 December 2006 2005 • • Deferred consideration 10,750,000 10,750,000 On 15 June 2005, CHR acquired the Hydropolis Project concept and all theassociated know how from Crescent Hydropolis Holdings LLC for a consideration of60,000,000 ordinary shares issued as fully paid at €0.50 per share (such sharesbeing issued on 17 June 2005) and payment of €10,750,000 in cash in instalmentswith the final payment due in December 2009. The payments fall due as follows: €2,750,000 to be paid upon completion of financing for the first HydropolisProject. €2,000,000 to be paid 60 days following publication of the annual accounts forthe period to 31 December 2006. €2,000,000 to be paid 60 days following publication of the annual accounts forthe period to 31 December 2007. €2,000,000 to be paid 60 days following publication of the annual accounts forthe period to 31 December 2008. €2,000,000 to be paid 60 days following publication of the annual accounts forthe period to 31 December 2009. In the event that on any instalment payment date CHR has insufficient workingcapital then the instalment is accrued until the following year withoutinterest. Any unpaid consideration following the publication of the annualaccounts for the period to 31 December 2009 will become due 60 days followingpublication of the annual accounts for each successive year until CHR is able tomake payment and does so in full. 8. Related party transactions There were no related party transactions during the period. 9. Management & Project Development Costs €100,000 Hydropolis Qingdao project development costs (including travel, engineering, design, telecommunications and local legal expenses) • 17,500 Contract liquidation fee & legal fee paid for promotional television advertising material • 7,603 Website development costs, telecommunications expenses & conference meeting fee This information is provided by RNS The company news service from the London Stock Exchange