ENGI.L Regulatory News (ENGI)

28 Sep 2007 15:48

Billam PLC28 September 2007 Billam plcCondensed Consolidated Interim Financial statements for the period ended 30 June2007 Chairman's Statement Background The Board of Billam Plc ("the Group"), announces its interim results for the sixmonths to 30 June, 2007. As reported in my statement to shareholders which accompanied the 2006 AnnualReport and Accounts, we have, through our wholly owned subsidiary company,Development Funding Limited ("DFL"), made our first investment of mezzaninefinance to a privately owned housebuilder, for a specific development inNorthamptonshire. The development consists of 29 three and four bedroom houses.Building work has progressed well and the first two units including theshowhouse, which was opened at the end of August, have now been completed. Weanticipate that construction on the whole project will have been completed inthe first quarter of 2008. To date we have provided over £ 0.9 million to this project, with these fundshaving been made available to Billam by Stephen Wicks, who is the Company'slargest shareholder. At 30 June, 2007 Mr Wicks had lent the Company £1.1 millionon commercial terms. Further details of our quoted and unquoted investment portfolio are set outbelow. Results The Board announce that the deficit on ordinary activities before taxation hasbeen reduced to £0.435 million, as compared with a deficit of £0.759 million forthe comparative period last year. The principal reason for the deficit in thefirst half was the reduction in the value of our quoted and unquoted investmentportfolio, which amounted to £0.394 million, further details of which are setout below. I am however, pleased to be able to report that we have been successful inreducing our administrative overheads for the period to £120,000 from £262,000for the comparative period last year. Net assets at 30 June, 2007 were £1.1 million (2006: £1.6 million) compared withthe net assets at 31 December, 2006 which amounted to £1.5 million. The Directors do not recommend a payment of an interim dividend. We have a number of quoted and unquoted investments in our portfolio, asfollows: Quoted Investments Cybit Holdings plc Cybit Holdings plc ("Cybit") is one of Europe's leading telematics serviceproviders that has over 1,500 customers using its fleet and asset managementsolutions to manage over 40,000 vehicle based assets. The company has recentlyreleased an extremely positive trading statement in which it stated that theynow have a leading position in a number of key sectors in the market and thattheir trading results are benefiting from a significant contribution from theirthree most recent acquisitions, that have been successfully integrated. Cybit have also reported that current trading has started extremely well in thefirst four months of the year and that the directors of Cybit are confidentabout the company's prospects. EiRx Therapeutics plc EiRx Therapeutics plc ("EiRx") is based in Cork, Ireland and is a drug discoveryhouse developing targeted therapies for cancer. EiRx has recently announced thatit has received a grant from Enterprise Ireland to fund the development of newcancer medicines through a collaboration with the University College Cork. Thisaward amounts to €0.36 million spread over a two year period. The collaborationwill work on optimisation of the most promising of EiRx's panel of moleculesidentified by EiRx's proprietary EnPADTM platform. Physiomics plc Physiomics plc ("Physiomics") is a company that develops computational modelsthat predict and understand the efficacy of cancer drugs. Physiomics hasrecently announced that it has signed an agreement with Eli Lilley, the NYSElisted global pharmaceutical company, to provide simulations of cancer cellularprocesses in support of Eli Lilley's cancer drug discovery research. Unquoted Investments TRI-MEX Group Limited TRI-MEX Group Limited ("TRI-MEX") provides monitoring and protection solutionsfor the protection of vehicles and goods in transit. TRI-MEX has agreements withJaguar cars and Land Rover to provide pan-European EUROWATCH services for eachof their own brand tracking products. TRI-MEX has recently signed a contractwith TIP Trailer Services, a division of General Electric Equipment Services, toallow the users of their EUROWATCH service to gain access to police whenever andwherever a freight crime occurs. Basis of accounts preparation Previously the Board of Billam had taken the view that, whilst Billam plc wasnot an investment company within the meaning of the Companies Act, it wasmanaged in a manner similar to that of an Investment Trust. As such, Billam hadreported its results in line with the Statement of Recommended Practice forInvestment Trusts. As shareholders may be aware, groups listed on AIM are now required to preparetheir financial statements in accordance with International Financial ReportingStandards ("IFRS") as adopted by the EU. Accordingly, these financial statementshave been prepared under IFRS rather than UK GAAP, the accounting conventionthat Billam's previous financial statements were prepared under. Whereappropriate a reconciliation between the respective figures has been provided inthe text that accompanies these results. Outlook Your Board continues to look at investment opportunities that we are seeingthrough our development financing business DFL and our quoted and unquotedinvestment portfolio. We intend to take advantage, funds permitting, of suchopportunities and to further rationalise our investment portfolio when wereceive offers that match our valuations. S Bennett27 September 2007 Condensed consolidated interim income statement Unaudited Unaudited Unaudited 6 months to 6 months Year to 31 30 June to 30 June December 2007 2006 2006 Note £'000 £'000 £'000 Continuing operationsRevenue 47 42 86Losses on investments (394) (530) (454 ------------------------- ------------------------- ------------Gross loss (347) (488) (368 Administrative costs (120) (262) (515)Finance costs (52) (9) (29)Finance income 84 - - ------------------------- ------------------------- -------------Loss before (435) (759) (912)tax Income tax expense - - - ------------------------- ------------------------- -------------Loss for the (435) (759) (912)period =========== =========== =========== =========== =========== =========== === === === Loss per share:Basic and diluted loss per share from (4.10)p (7.26)p (8.67)ptotal and continuing operations 4 =========== =========== =========== =========== =========== =========== === === === Condensed consolidated interim balance sheet Unaudited Unaudited Unaudited 30 June 30 June 31 December 2007 2006 2006 Note £'000 £'000 £'000 ASSETS Non-current assets Financial 1,787 2,551 2,446assets at fair value through profit and loss 3 Current assets Loans and receivables 923 - -Trade and other receivables 31 130 121Other current assets 149 - 50Cash and cash equivalents 20 11 1 ------------------------- ------------------------- ------------ 1,123 141 172 ------------------------- ------------------------- ------------Total assets 2,910 2,692 2,618 ------------------------- ------------------------- ------------ LIABILITIES Current liabilities Trade and other payables 420 386 352Short-term borrowings 1,064 193 353 ------------------------- ------------------------- ----------------------- 1,484 579 705 ------------------------- ------------------------- ----------------------- Non-current liabilities Long-term borrowings 291 280 282Other payables 59 271 170 ------------------------- ------------------------- -------------------------Total 350 551 452non-current liabilities ------------------------- ------------------------- -------------------------Total 1,834 1,130 1,157liabilities ------------------------- ------------------------- -------------------------Net assets 1,076 1,562 1,461========================= ========================= ========================= EQUITY Equity attributable to equity holders of the parent Share capital 2,279 2,250 2,279Share premium account 5,423 5,409 5,423Convertible loan 68 9 18Merger reserve 1,012 1,012 1,012Profit and loss account (7,706) (7,118) (7,271) ------------------------- ------------------------- -------------------------Total equity 1,076 1,562 1,461========================= ========================= ========================= Condensed consolidated interim statement of changes in equity Share Share Convertible Merger Profit and Total capital premium Loan reserve Loss equity Balance at account account 2005 £'000 £'000 £'000 £'000 £'000 £'000December 2,250 5,409 - 1,012 (6,359) 2,312 Changes in equity for first half of 2006 Loss for - - - - (759) (759)the period Total recognised - - - - (759) (759income and expense for the period Convertible - - 9 - - 9loan - equity Balance at 2,250 5,409 9 1,012 (7,118) 1,56230 June 2006 Condensed consolidated interim statement of changes in equity (continued) Share Share Convertible Merger Profit and Total capital premium loan reserve loss equity account £'000 £'000 £'00 £'000 £'000 £'000Balance 2,250 5,409 - 1,012 (6,359) 2,312at 31 December 2005 Changes in equity for 2006 Loss for - - - - (912) (912the period Total recognised - - - - (912) (912income and expense for the period Issue of 29 14 - - - 43share capital Convertible - - 18 - - 18loan - equity element Balance at 31 December 2,279 5,423 18 1,012 (7,271) 1,4612006 ========================= ========================= ========================= Condensed consolidated interim statement of changes in equity (continued) Share Share Convertible Merger Profit Total capital premium loan reserve and loss equity account account £'000 £'000 £'000 £'000 £'000 £'000Balance at 2,279 5,423 18 1,012 (7,271) 1,46131 December 2006 Changes in equity for 2007 Loss for - - - - (435) (435the period Total - - - - (435) (435)recognised income and expense for the period Convertible loan - equity - 50 - - 50 element Balance at 2,279 5,423 68 1,012 (7,706) 1,07630 June 2007 Condensed consolidated interim cash flow statement 6 months to 6 months Year to 31 30 June to 30 June December 2007 2006 2006 £'000 £'000 £'000 Cash flows from operating activitiesLoss after taxation (435) (759) (912)Adjustments for: Fair value adjustments 430 506 588(Profit)/loss on sale of investments (36) 24 (134)Interest expense 52 9 29Increase in trade and other receivables (914) (62) -Decrease in trade payables (70) 12 (197)Interest received (19) - - Net cash from (992) (270) (626)operating activities Cash flows from investing activitiesPurchase of investments - (46) (46)Proceeds from sale of investment 265 171 352 Net cash used 265 125 306in investing activities Cash flows from financing activitiesProceeds from short-term borrowings 777 150 335Re-payment of short term borrowings - (3) (54) Net cash used 777 147 281in financing activities Net increase/(decrease) in cash and cash 50 2 (39)equivalents Cash and cash equivalents at beginning (30) 9 9of period Cash and cash 20 11 (30)equivalents at end of period The financial information set out in this interim report does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The Group's statutory financial statements for the year ended 31 December 2006, prepared under UK GAAP, have been filed with the Registrar of Companies.The auditor's report on those financial statements was unqualified and did notcontain statements under Section 237(2) of the Companies Act 1985. 1 Basis of preparation These interim condensed consolidated financial statements are for the six monthsended 30 June 2007 and have been prepared under the historical cost convention,except for the revaluation of certain non£current assets and financial assetsand liabilities. These condensed consolidated interim financial statements (the interim financialstatements) have been prepared in accordance with the accounting policies setout below which are based on the recognition and measurement principles of IFRSin issue as adopted by the European Union (EU) and are effective at31 December 2007 or are expected to be adopted and effective at31 December 2007, our first annual reporting date at which we are required touse IFRS accounting standards adopted by the EU. Billam plc's consolidated financial statements were prepared in accordance withUnited Kingdom Accounting Standards (United Kingdom Generally AcceptedAccounting Practice) until 31 December 2006. The date of transition to IFRS was1 January 2006. The comparative figures in respect of 2006 have been restated toreflect changes in accounting policies as a result of adoption of IFRS. Thedisclosures required by IFRS 1 concerning the transition from UK GAAP to IFRSare given in the reconciliation schedules, presented and explained in note 5. The accounting policies have been applied consistently throughout the Group forthe purposes of preparation of these condensed consolidated interim financialstatements. 2 Summary of significant accounting policies The Group has taken advantage of certain exemptions available under IFRS1First-time adoption of International Financial Reporting Standards. Theexemptions used are explained under the respective accounting policy. The accounting policies that have been applied in the opening balance sheet havealso been applied throughout all periods presented in these financialstatements. These accounting policies are prepared based on recognition andmeasurement principles expected to be adopted and effective for the year ending31 December 2007. Basis of consolidation The Group financial statements consolidate those of the Company and all of itssubsidiary undertakings drawn up to 30 June 2007. Subsidiaries are entities overwhich the Group has the power to control the financial and operating policies soas to obtain benefits from its activities. The Group obtains and exercisescontrol through voting rights. Unrealised gains on transactions between the Company and its subsidiaries areeliminated. Unrealised losses are also eliminated unless the transactionprovides evidence of an impairment of the asset transferred. Amounts reported inthe financial statements of subsidiaries have been adjusted where necessary toensure consistency with the accounting policies adopted by the Group. Acquisitions of subsidiaries are dealt with by the purchase method. The purchasemethod involves the recognition at fair value of all identifiable assets andliabilities, including contingent liabilities of the subsidiary, at theacquisition date, regardless of whether or not they were recorded in thefinancial statements of the subsidiary prior to acquisition. On initialrecognition, the assets and liabilities of the subsidiary are included in theconsolidated balance sheet at their fair values, which are also used as thebases for subsequent measurement in accordance with the group accountingpolicies. Goodwill is stated after separating out identifiable intangibleassets. Goodwill represents the excess of acquisition cost over the fair valueof the Group's share of the identifiable net assets of the acquired subsidiaryat the date of acquisition. Business combinations completed prior to date of transition to IFRS The Group has elected not to apply IFRS3 Business Combinations retrospectivelyto business combinations prior to the date of transition. Accordingly the classification of the combination (merger) remains unchangedfrom that used under UK GAAP. Assets and liabilities are recognised at date oftransition if they would be recognised under IFRS, and are measured using theirUK GAAP carrying amount immediately post-acquisition as deemed cost under IFRS,unless IFRS requires fair value measurement. Deferred tax and minority interestare adjusted for the impact of any consequential adjustments after takingadvantage of the transitional provisions. Goodwill Goodwill representing the excess of the cost of acquisition over the fair valueof the Group's share of the identifiable net assets acquired, is capitalised andreviewed annually for impairment. Goodwill is carried at cost less accumulatedimpairment losses. Negative goodwill is recognised immediately after acquisitionin the income statement. Goodwill written off to reserves prior to date of transition to IFRS remains inreserves. There is no re£instatement of goodwill that was amortised prior totransition to IFRS. Goodwill previously written off to reserves is not writtenback to profit or loss on subsequent disposal. Revenue Revenue is measured by reference to the fair value of consideration received orreceivable by the Group for services provided and the sale of investments,excluding VAT and discounts. Revenue is recognised upon the performance ofservices or transfer of risk to the customer. Rendering of servicesServices represent management fees excluding VAT. When the outcome of a transaction involving the rendering of services can beestimated reliably, revenue associated with the transaction is recognised byreference to the stage of completion of the transaction at the balance sheetdate. The outcome of the transaction is deemed to be able to be estimatedreliably when all the following conditions are satisfied: • the amount of revenue can be measured reliably • it is probable that the economic benefits associated with the transaction will flow to the entity • the stage of completion of the transaction at the balance sheet date can be measured reliably • the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. Where a contract involves delivery of several different elements and is notfully delivered or performed by the year end, revenue is recognised based on theproportion of the fair value of the elements delivered to the fair value of theoverall contract. Rent receivable Revenue includes rent receivable (excluding VAT) from third parties and isrecognised in the period to which the rental relates. Sale of investments Revenue from the sale of investments is recognised when all the followingconditions have been satisfied: • the Group has transferred to the buyer the significant risks and rewards of ownership of the investment which is generally when title has passed or an unconditional contract for sale has been entered into. • the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the investments which is generally when the beneficial ownership has transferred to a third party. • the amount of revenue can be measured reliably • it is probable that the economic benefits associated with the transaction will flow to the Group, and • the costs incurred or to be incurred in respect of the transaction can be measured reliably. Interest Interest is recognised using the effective interest method which calculates theamortised cost of a financial asset and allocates the interest income over therelevant period. The effective interest rate is the rate that exactly discountsestimated future cash receipts through the expected life of the financial assetto the net carrying amount of the financial asset. Dividends Dividends are recognised when the shareholders right to receive payment isestablished. Taxation Current tax is the tax currently payable based on taxable profit for the period. Deferred income taxes are calculated using the liability method on temporarydifferences. Deferred tax is generally provided on the difference between thecarrying amounts of assets and liabilities and their tax bases. However,deferred tax is not provided on the initial recognition of goodwill, nor on theinitial recognition of an asset or liability unless the related transaction is abusiness combination or affects tax or accounting profit. Deferred tax ontemporary differences associated with shares in subsidiaries is not provided ifreversal of these temporary differences can be controlled by the Group and it isprobable that reversal will not occur in the foreseeable future. In addition,tax losses available to be carried forward as well as other income tax creditsto the Group are assessed for recognition as deferred tax assets. Deferred tax liabilities are provided in full, with no discounting. Deferred taxassets are recognised to the extent that it is probable that the underlyingdeductible temporary differences will be able to be offset against futuretaxable income. Current and deferred tax assets and liabilities are calculatedat tax rates that are expected to apply to their respective period ofrealisation, provided they are enacted or substantively enacted at the balancesheet date. Changes in deferred tax assets or liabilities are recognised as a component oftax expense in the income statement, except where they relate to items that arecharged or credited directly to equity in which case the related deferred tax isalso charged or credited directly to equity. Financial assets Financial assets are divided into the following categories: loans andreceivables and financial assets at fair value through profit or loss. Financialassets are assigned to the different categories by management on initialrecognition, depending on the purpose for which they were acquired. Thedesignation of financial assets is re-evaluated at every reporting date at whicha choice of classification or accounting treatment is available. All financial assets are recognised when the Group becomes a party to thecontractual provisions of the instrument. Financial assets other than thosecategorised as at fair value through profit or loss are recognised at fair valueplus transaction costs. Financial assets categorised as at fair value throughprofit or loss are recognised initially at fair value with transaction costsexpensed through the income statement. Financial assets at fair value through profit or loss include financial assetsthat are either classified as held for trading or are designated by the entityas at fair value through profit or loss upon initial recognition. Subsequent toinitial recognition, the financial assets included in this category are measuredat fair value with changes in fair value recognised in the income statement.Financial assets originally designated as financial assets at fair value throughprofit or loss may not be reclassified subsequently. Financial assets are designated as at fair value through profit or loss wherethey are managed and their performance evaluated on a fair value basis inaccordance with the Group's documented investment strategy. Loans and receivables are non-derivative financial assets with fixed ordeterminable payments that are not quoted in an active market. Trade receivablesand certain other current assets are classified as loans and receivables. Loansand receivables are measured subsequent to initial recognition at amortised costusing the effective interest method, less provision for impairment. Any changein their value through impairment or reversal of impairment is recognised in theincome statement. Provision against trade receivables is made when there is objective evidencethat the Group will not be able to collect all amounts due to it in accordancewith the original terms of those receivables. The amount of the write-down isdetermined as the difference between the asset's carrying amount and the presentvalue of estimated future cash flows. An assessment for impairment is undertaken at least at each balance sheet date. A financial asset is derecognised only where the contractual rights to the cashflows from the asset expire or the financial asset is transferred and thattransfer qualifies for derecognition. A financial asset is transferred if thecontractual rights to receive the cash flows of the asset have been transferredor the Group retains the contractual rights to receive the cash flows of theasset but assumes a contractual obligation to pay the cash flows to one or morerecipients. A financial asset that is transferred qualifies for derecognition ifthe Group transfers substantially all the risks and rewards of ownership of theasset, or if the Group neither retains nor transfers substantially all the risksand rewards of ownership but does transfer control of that asset. Financial liabilities Financial liabilities are obligations to pay cash or other financial assets andare recognised when the Group becomes a party to the contractual provisions ofthe instrument. Financial liabilities are recorded initially at fair value, netof direct issue costs. They are recorded at amortised cost using the effective interest method, withinterest-related charges recognised as an expense in finance cost in the incomestatement. Finance charges, including premiums payable on settlement orredemption and direct issue costs, are charged to the income statement on anaccruals basis using the effective interest method and are added to the carryingamount of the instrument to the extent that they are not settled in the periodin which they arise. A financial liability is derecognised only when the obligation is extinguished,that is, when the obligation is discharged or cancelled or expires. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits, togetherwith other short-term, highly liquid investments that are readily convertibleinto known amounts of cash and which are subject to an insignificant risk ofchanges in value. Financial instruments and IFRS 1 - exemptions utilised by the Group Designation of previously recognised financial instruments The Group has elected to designate certain financial instruments at the date oftransition to IFRS as a financial asset or financial liability at fair valuethrough profit or loss. Equity Equity comprises the following: • "Share capital" represents the nominal value of equity shares. • "Share premium" represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the share issue. • "Profit and loss reserve" represents retained profits. • "Merger reserve" represents the excess of the nominal value of shares issued in the acquisition of a subsidiary undertaking and the nominal value of those shares. Foreign currencies Transactions in foreign currencies are translated at the exchange rate ruling atthe date of the transaction. Monetary assets and liabilities in foreigncurrencies are translated at the rates of exchange ruling at the balance sheetdate. Non-monetary items that are measured at historical cost in a foreigncurrency are translated at the exchange rate at the date of the transaction.Non-monetary items that are measured at fair value in a foreign currency aretranslated using the exchange rates at the date when the fair value wasdetermined. Any exchange differences arising on the settlement of monetary items or ontranslating monetary items at rates different from those at which they wereinitially recorded are recognised in the profit or loss in the period in whichthey arise. Exchange differences on non-monetary items are recognised in thestatement of changes in equity to the extent that they relate to a gain or losson that non-monetary item taken to the statement of recognised income andexpenses, otherwise such gains and losses are recognised in the incomestatement. 3 Additions and disposals of investments The following tables shows the significant additions and disposals ofinvestments. Listed Listed Other Total overseas Unlisted investments £'000 £'000 £'000 £'000 Carrying amount at 1 January 2007 1,087 - 1,359 2,446 Disposals (115) - (114) (229)Fair value 70 - (500) (430)adjustments Carrying 1,042 - 745 1,787amount at 30 June 2007 Listed Listed Other Total overseas unlisted investments £'000 £'000 £'000 £'000Carrying 1,383 222 1,601 3,206amount at - - 46 461 January 2006 (152) (43) - (195)Additions (223) (68) (215) (506)Disposals Fair value adjustments Carrying 1,008 111 1,432 2,551 amount at 30 June 2006 Listed Listed Other Total overseas Unlisted investments £'000 £'000 £'000 £'000 Carrying amount 1,383 222 1,601 3,206 at 1 January 2006 - - 46 46 Additions (69) (82) (67) (218)Disposals (227) (140) (221) (588)Fair value adjustments Carrying amount at 31 December 2006 1,087 - 1,359 2,446 4 Basic and diluted loss per share from total and continuing operations The calculation of the basic loss per share is based on the losses attributableto ordinary shareholders divided by the weighted average number of shares inissue during the period. The losses and weighted average number of shares used in the calculations areset out below. 6 months to 30 June 2007 Losses attributable to £(435,000) ordinary shareholders ----------------------------Weighted average number of 10,603,835 shares ---------------------------- Basic loss per share (4.10)p ======== ======== ======== = 6 months to 30 June 2006 Losses attributable to £(759,000) ordinary shareholders ---------------------------------- Weighted average number of 10,460,000 shares ---------------------------- Basic loss per share (7.26)p ========================= Year ended 31 December 2006 Losses attributable to £(912,000) ordinary shareholders ---------------------------- Weighted average number of 10,524,035 shares ---------------------------- Basic earnings per share (8.67)p ======== ======== ======== = There is no difference between basic and diluted loss per share. 5 Explanation of transition to IFRS As stated in the Basis of Preparation, these are the Group's first condensedconsolidated interim financial statements for part of the period covered by thefirst IFRS annual consolidated financial statements prepared in accordance withIFRS. An explanation of how the transition from UK GAAP to IFRS has affected theGroup's financial position, financial performance and cash flows is set outbelow. IFRS permits groups adopting IFRS for the first time to take certain exemptionsfrom the full requirements of IFRS in the transition period. These interimfinancial statements have been prepared on the basis of taking the followingexemptions: • business combinations prior to 1 January 2006, the Group's date oftransition to IFRS, have not been restated to comply with IFRS 3 "BusinessCombinations". • the Group has elected to designate certain financial instruments at thedate of transition to IFRS as a financial asset or financial liability at fairvalue through profit and loss. Notes to the reconciliations The Group has applied IAS 39; Financial instruments: Recognition and Measurementto certain loan agreements as follows: a) An interest free loan from Billam AG. The loan was previously included underUK GAAP at the value of the proceeds of the loan. This has now been shown oninitial recognition at fair value and recorded at amortised cost on subsequentmeasurement. b) Borrowings with rights to convert to shares. Historically, not beingmaterial, the loan was accounted for as a debt instrument under UK GAAP. Onconversion, as the instrument has increased in value as a result of piecemealadvances to the company, the instrument has been split between debt and equitywith the equity element of the convertible loan calculated by discounting theliability to its net present value . The loan is then decreased to thesettlement value over the period of the loan with the net interest debited tothe income statement and a corresponding increase in the loan. c) An interest free loan with a former director. The loan was previouslyincluded at the value of the proceeds of the loan. This has now been shown oninitial recognition at fair value and recorded at amortised cost on subsequentmeasurement. d) The reclassification to financial assets at fair value through profit andloss on transition of an amount previously included in current assets. Reconciliation of equity at 1 January 2006 Note UK GAAP a d IFRS £'000 £'000 £'000 £'000 Non-current assets Financial assets at fair value 3,106 - 100 3,206 through profit and loss Current assets Trade and other receivables 121 - (100) 21 Other current assets 50 - - 50 Cash and cash equivalents 9 - - 9 Current liabilities Trade and (205) - - (205) other payables Short-term (54) - - (54) borrowings Non-current assets Long-term (397) 157 - (240) borrowings Other (475) - - (475) payables ------------------------- ------------------------- ----------------Net assets 2,155 157 - 2,312 ========================= ========================= ================ Equity Share 2,250 - - 2,250 capital Share 5,409 - - 5,409 premium account Merger 1,012 - - 1,012 reserve Profit and (6,516) 157 - (6,359) loss account ------------------------- ------------------------- ----------------Total 2,155 157 - 2,312 equity ========================= ========================= ================ Reconciliation of equity at 30 June 2006 Note UK GAAP a b c d IFRS £'000 £'000 £'000 £'000 £'000 £'000 Non-current assets Financial assets 2,451 - - - 100 2,551 at fair value through profit and loss Current assets Trade and other 230 - - - (100) 130 receivables Cash and cash 11 - - - 11 equivalents Current liabilities Trade and (420) - - 34 - (386) other payables Short-term (201) - 8 - - (193) borrowings Non-current assets Long-term (397) 117 - - - (280) borrowings Other (271) - - - - (271) payables Net assets 1,403 117 8 34 - 1,562 Equity Share 2,250 - - - - 2,250 capital Share 5,409 - - - - 5,409 premium account Convertible - - 9 - - 9 loan Merger 1,012 - - - - 1,012 reserve Profit and (7,268) 117 (1) 34 - (7,118) loss account Total 1,403 117 8 34 - 1,562 equity Reconciliation of equity at 1 January 2007 Note UK GAAP a b c IFRS £'000 £'000 £'000 £'000 £'000 Non-current assets Financial assets 2,446 - - - 2,446 at fair value through profit and loss Current assets Trade and other 121 - - - 121 receivables Other current 50 - - - 50 assets Cash and cash 1 - - - 1 equivalents Current liabilities Trade and (379) - - 27 (352) other payables Short-term (366) - 13 - (353) borrowings Non-current assets Long-term (397) 115 - - (282) borrowings Other (170) - - - (170) payables Net assets 1,306 115 13 27 1,461 Equity Share 2,279 - - - 2,279 capital Share 5,423 - - - 5,423 premium account Convertible - - 18 - 18 loan Merger 1,012 - - - 1,012 reserve Profit and (7,408) 115 (5) 27 (7,271) loss account Total 1,306 115 13 27 1,461 equity Reconciliation of profit for the 6 months ended 30 June 2006 Note UK GAAP a b c IFRS £'000 £'000 £'000 £'000 £'000 Continuing operations 42 - - - 42 RevenueLosses on (530) - - - (530) investments Gross loss (488) - - - (488) Administrative (262) - - - (262) costs Finance costs (3) (2) (1) (3) (9) Loss before (753) (2) (1) (3) (759) tax Income tax - - - - - expense Loss after tax (753) (2) (1) (3) (759) Reconciliation of profit for the year to 31 December 2006 Note UK GAAP a b c FRS £'000 £'000 £'000 £'000 £'000 Continuing operations Revenue 86 - - - 86 Cost of sales (454) - - - (454) Gross loss (368) - - - (368) Administrative (513) - - - (515) costs Finance costs (11) (3) (5) (10) (29) Loss before (892) (3) (5) (10) (912) tax Income tax - expense Loss after tax (892) (3) (5) (10) (912) COMPANY INFORMATION The company is a public limited company registered in England and Wales. Theregistered office and principal place of business is Trinity Court, BatchworthIsland, Church Street, Rickmansworth, Hertfordshire, WD3 1RT This information is provided by RNS The company news service from the London Stock Exchange