Greencoat Renewables Regulatory News (GRP)

31 Oct 2007 07:30

GruppeM Investments PLC31 October 2007 31 October 2007 GruppeM Investments PLC (LSE: GRP, 'GruppeM' or the 'Company') Final results for the 17 months ended 31 December 2006 GruppeM, the Aston Martin Importer for China and retailer of Porsche cars in thecountry's Shandong region, today announces its audited final results for the 17months ended 31 December 2006. GruppeM previously reported its unauditedpreliminary results for the 17 months ended 31 December 2006 on 15 August 2007. The Chairman's Statement and financial information below has been extracted fromthe report and accounts of the Company for the 17 months ended 31 December 2006which are being despatched to shareholders today: these will be available to thepublic from the Company's registered office at GruppeM Investments PLC, Suite1.3 Buckingham Court, 78 Buckingham Gate, London, SW1E 6PD. Enquiries: GruppeM Investments PLC Shore Capital and Corporate LimitedKenny Chen Alex BorrelliTel: +44 (0) 207 233 2952 Tel: +44 (0) 207 408 4090 Further information on GruppeM Investments PLC can be found on the Company'swebsite: www.gruppemplc.com. CHAIRMAN'S STATEMENT Background GruppeM Investments PLC's initial annual report covered the period from itsincorporation on 16 July 2004 to 31 July 2005. The comparative period shown inthe Financial Statements below is therefore from 16 July 2004 to 31 July 2005.We have since changed our accounting reference date from 31 July to 31 December,to bring it into line with our Chinese trading operations. This means that theresults below are for a 17-month accounting period from 1 August 2005 to 31December 2006. GruppeM Investments PLC was floated on the Alternative Investment Market of theLondon Stock Exchange ("AIM") market in February 2005 and remained a cash shelluntil the reverse takeover of GruppeM Hong Kong Limited in October 2006.GruppeM Hong Kong Limited is a Hong Kong based holding company with two Chinesebased subsidiaries operating a Porsche franchise in the Shandong region ofChina. It was incorporated on 1 February 2005 and was wholly owned andcontrolled by Pinocelle S.A. - a nominee company of Kenny Chen. Therefore, thereverse acquisition was deemed a related-party transaction as both GruppeMInvestments PLC and GruppeM Hong Kong Limited were under the common control ofKenny Chen. Accordingly, the consolidated figures presented below have beenprepared under merger accounting rules, i.e., the Financial Statements ofGruppeM Investments PLC and GruppeM Hong Kong Limited have been aggregated andpresented as if the two companies had been part of the same group sinceincorporation. Financial Timetable Further to our announcement on 15 August 2007, the audited results for the17-month period to 31 December 2006 have been delayed due to a combination ofthe Company changing auditors and the audit of our Chinese subsidiaries beinginterrupted by a routine audit by the Chinese tax authority from which nomaterial issues arose. The delay in the completion of the statutory FinancialStatements has had the knock-on effect of delaying the announcement of theinterim results for the six months to 30 June 2007. However, the interimresults have been released today. Results The Group has grown rapidly in the 17-month start-up period to 31 December 2006.Turnover increased significantly to £12.1 million (period to 31 July 2005:£0.12 million). The pre-tax loss from operations for the period was £0.95million against a loss of £0.56 million for the period to 31 July 2005. Lossesper share were 3.27 pence (2005: 5.70 pence). The Directors will not berecommending the payment of a dividend until such time as the Group reaches anappropriate level of profitability. Porsche car sales from our Qingdao dealership were strong with 278 cars orderedand 222 cars delivered in the period. Of the 222 cars delivered, 91% were thelarge four-wheel-drive Cayenne model, however, demand for the sports cars rangeis strengthening as the market becomes more aware of the Porsche brand andheritage. Sales of Porsche cars remain strong with no signs of slowing. Demandcontinues to outstrip supply, with a waiting time of approximately 6 months fromthe customer placing the order to receiving the car. We are delighted that GruppeM Hong Kong Limited has now signed a formaldealership agreement with Porsche China. This replaces the letter of intentunder which the Qingdao dealership was operating until March 2007. Trading in the first half of 2007 has been brisk with the strong demand seen atthe end of 2006 continuing into this period. Market Prospects China's economy continues to grow strongly - recording annual double digitgrowth (11.9%) for the fifth year in a row: it is poised to overtake Germany asthe third largest economy in the world within the next year. In 2006 the Chinese automobile market became the second largest in the worldwith sales of 7.2 million. Sales of luxury cars increased by 25.1% over theprevious year to 320,000 (China Association of Auto Manufacturers). Accordingto China View, "sales of luxury cars are booming and top luxury automakers seeChina as an increasingly important market". The latest statistics released by the Chinese Ministry of Public Security on 4June 2007 show that, in the first 5 months of 2007, the number of private carsincreased by 16 per cent to 13.4 million. It is anticipated that sales volumein the Chinese market will overtake the USA by 2010. Board Changes There have been several Board changes in the period. I took over from LordMarsh as Chairman, following the reverse acquisition of GruppeM Hong KongLimited in October 2006 and Peter Kent joined the Board shortly afterwards.Julian Hardy also joined us as sales director at the time of the acquisition.Marvin Tien resigned during the period. In June this year we were all saddenedby the news that Stephen Chen had passed away after a long illness. We send ourcondolences to his wife and family. Strategy The Board is aiming to expand the business both organically, by increasing ourPorsche retailing footprint in the Shandong region, and by partnering otherpremium brand manufacturers in order to distribute luxury cars throughout China. The Shandong region, with a population of approximately 92 million, is locatedon the burgeoning east coast of China between Beijing and Shanghai. In Q1 2008the Company is planning to open a further Porsche dealership in the region'scapital Jinan. Jinan has a population of 5.9 million, compared to Qingdao with7.2 million, and its information technology related economic output ranks number4 in China. As far as other partnerships are concerned, the Group is also in high-leveldiscussions with other luxury car manufacturers with a view to diversifying ourgeographical market (to include the whole of China); our operations (to includeluxury car importation and distribution as well as retail); and our brandoffering. Indeed, I am delighted to confirm the recent appointment of the Group as theonly importer and distributor of Aston Martin motor cars to dealerships inChina. This represents a fantastic opportunity for both parties to take fulladvantage of this exciting marketplace. We are confident that the combinationof Britain's finest luxury sporting cars manufacturer, and our expertise in theChinese car market, will pay great dividends and we look forward to a long andsuccessful future together. The Board believes that the Group is in a position of strength to capitalise onthe current opportunities within the Chinese luxury car market in order to growthe business and shareholder value. I would like to thank all our employees for their support and contribution toour success during the Group's early high-growth stage. Don McCrickardChairman30 October 2007 GRUPPEM INVESTMENTS PLC Consolidated income statement for the 17 months ended 31 December 2006 17 months ended Period from 16 31 December July 2004 to 2006 31 July 2005 (Restated) Note £ £ Revenue 12,099,616 121,130Cost of sales (11,239,678) (193,425)Gross Profit/(Loss) 859,938 (72,295)Administrative expenses (1,823,174) (349,102)Exceptional item - (142,512)Operating Loss (963,236) (563,909)Finance income and expense (net) 13,628 (6) Loss for the Period before Taxation (949,608) (563,915) Taxation (13,172) - Loss for the Period (962,780) (563,915) Loss per share expressed in pence per share- Basic and diluted 3 (3.27)p (5.70)p Statement of recognised income and expense for the 17 months ended 31 December2006 17 months ended Period from 16 31 December 2006 July 2004 to 31 July 2005 (Restated) £ £Loss for the financial period (962,780) (563,915)Exchange adjustments (46,650) 1,935Total Recognised Income and Expense for the Period (1,009,430) (561,980) All amounts relate to continuing activities. GRUPPEM INVESTMENTS PLC Consolidated balance sheet as at 31 December 2006 Note As at As at 31 31 July December 2005 2006 (Restated) £ £AssetsNon-Current Assets Property, plant and equipment 499,850 108,492 499,850 108,492 Current Assets Inventories 836,672 - Trade and other receivables 2,791,348 294,710 Cash and cash equivalents 126,556 135,733 3,754,576 430,443Total Assets 4,254,426 538,935 LiabilitiesCurrent Liabilities Trade and other payables 2,433,149 375,915 2,433,149 375,915 Non-Current LiabilitiesDirector's loan account 3,414,011 346,870Convertible loan 99,402 -Related party loan 182,000 182,000 3,695,413 528,870Total Liabilities 6,128,562 904,785 Capital and Reserves Share capital 1 1,000,000 200,000 Merger reserve 2 (1,392,156) - Foreign operation translation reserve 2 44,715 (1,935) Retained deficit 2 (1,526,695) (563,915) (1,874,136) (365,850)Total Equity and Liabilities 4,254,426 538,935 GRUPPEM INVESTMENTS PLC Consolidated cash flow statement for the 17 months ended 31 December 2006 17 months Period from ended 16 July 2004 31 December to 31 July 2006 2005 (Restated) £ £ Cash flow from operating activities Loss from operating activities (963,236) (563,909) Adjustments for: Depreciation 176,334 125 Exchange adjustment on property, plant and equipment 6,616 -Net cash flow from operating activities before changes in working (780,286) (563,784)capital Increase in inventories (836,672) - Increase in payables 2,045,882 375,915 Increase in receivables (2,496,638) (294,710)Net cash flow from operating activities before interest and taxation (2.067,714) (482,579)paid Interest paid (2,046) (6) Taxation paid (1,820) -Net cash flow from operating activities (2,071,580) (482,585) Investing activities Purchase of property, plant and equipment (598,863) (7,834) Sale of property, plant and equipment 24,555 - Assets under construction - (100,783) Interest received 76 -Net cash flow from investing activities (574,232) (108,617) Financing activities Proceeds from issue of ordinary shares - 200,000 Cost of share issue (592,156) - Issue of convertible loan notes 115,000 - Director's loan 3,067,141 346,870 Related party loan - 182,000Net cash flow from financing activities 2,589,985 728,870 Net (decrease) / increase in cash and cash equivalents in the period (55,827) 137,668Cash and cash equivalents at the beginning of the period 135,733 -Effect of foreign exchange rate changes 46,650 (1,935)Cash and cash equivalents at the end of the period 126,556 135,733 NOTES TO THE FINAL RESULTS ANNOUNCEMENT GruppeM Investments PLC is a limited liability company incorporated anddomiciled in England and Wales. The address of the registered office is Suite1.3 Buckingham Court, 78 Buckingham Gate, London, SW1E 6PD. The principal accounting policies applied in the preparation of these FinancialStatements are set out below. These policies have been consistently applied toall the periods presented, unless otherwise stated. Adoption of IFRS for the 17 months ended 31 December 2006 The Company and Group have adopted IFRS for the first time in their respectiveFinancial Statements. The date of transition to IFRS was 16 July 2004 and allcomparative information in these Financial Statements has been restated whereapplicable to reflect the Company's and Group's adoption of IFRS. Going Concern United Kingdom company law requires the Directors to consider whether it isappropriate to prepare the Financial Statements on the basis that the Companyand Group is a going concern. In considering this matter, the Directors havereviewed the Group's budget and working capital requirements for 2008 whichincluded consideration of the cash flow implications of the operating plan. Inaddition, Kenny Chen has given a letter of support to the Group stating that hewill provide the necessary capital to make up any shortfall in funding over thenext 12 months, if required. The Directors see no reason why the Company and theGroup should not continue in operational existence for the foreseeable future.For this reason they have adopted the going concern basis in preparing theseFinancial Statements. Basis of Preparation The Financial Statements have been prepared in accordance with EU EndorsedInternational Financial Reporting Standards ("IFRS"), International FinancialReporting Interpretations Committee ("IFRIC") interpretations and the CompaniesAct 1985 applicable to companies reporting under IFRS. The Group has adoptedall of the standards and interpretations issued by the International AccountingStandards Board and the International Financial Reporting InterpretationsCommittee that are relevant to its operations. As at the date of approval ofthese consolidated Financial Statements, the following standards andinterpretations were in issue but not yet effective: • IFRS 7, Financial Instruments: Disclosures and the complementary amendments to IAS 1: Presentation of Financial Statements; • IFRS 8, Operating Segments; • IFRIC 8, Scope of IFRS 2; • IFRIC 9, Reassessment of embedded derivatives; • IFRIC 10, Interim Financial Reporting and Impairment; • IFRIC 11, IFRS 2: Group and Treasury share transactions; • IFRIC 12, Service concession arrangements; • IFRIC 13, Customer Loyalty Programmes; and • IFRIC 14, The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction The Directors do not anticipate that the adoption of these interpretations infuture reporting periods will have a material impact on the Group's results. Basis of Consolidation The consolidated Financial Statements consist of GruppeM Investments PLC and itssubsidiaries made up to 31 December 2006. The consolidated Financial Statementsof GruppeM Investments PLC have been prepared under merger accounting rules.This means that the Financial Statements of GruppeM Investments PLC and itswholly owned subsidiary, GruppeM Hong Kong Limited have been aggregated andpresented as if the two companies have always formed a group. Accordingly, although GruppeM Investments PLC acquired the entire share capitalof GruppeM Hong Kong Limited on 31 October 2006, the results for both companiesare reflected in the consolidated Financial Statements for the whole of the 17month period ended 31 December 2006 and the comparatives are presented on thesame basis, the reason being that due to common ownership and control of therespective entities both before and after the business combination, the businesscombination falls outside the scope of IFRS 3. Where necessary, adjustments are made to the Financial Statements ofsubsidiaries to bring their accounting policies into line with those used byother members of the Group. All intra-group transactions, balances, income andexpenses are eliminated on consolidation. The Company has taken advantage of the exemption provided under section 230 ofthe Companies Act 1985 not to publish its individual income statement andrelated notes. 1. Share Capital 2006 2006 2005 2005 No. £ No. £Authorised:Ordinary shares of 1p each 200,000,000 2,000,000 100,000,000 1,000,000 Issued and Fully Paid:Ordinary shares of 1p each 100,000,000 1,000,000 20,000,000 200,000 Shares issued during the Period Ordinary Shares No. Exercise/ £ share issue priceAt 31 July 2005 20,000,000 200,000Acquisition of subsidiary 80,000,000 1p 800,000At 31 December 2006 100,000,000 1,000,000 On 25 October 2006 the Company issued 80,000,000 new ordinary shares of 1p eachto Pinocelle S.A. for GruppeM Hong Kong Limited. The reverse acquisition hasbeen recognised under the principles of merger accounting. 2. Movement on Reserves The merger reserve represents a reserve arising on consolidation, being theshare capital and share premium account balances of GruppeM Hong Kong Limited at16 July 2004 less the nominal value of the shares issued by the Company toacquire the shares, reflecting the position as if the merger had occurred on 16July 2004. Group Merger reserve Foreign currency translation reserve Retained losses £ £ £At 16 July 2004 - - -Loss for the period - - (563,915)Foreign exchange loss on translation - (1,935) -At 1 August 2005 - (1,935) (563,915) Loss for the period - - (962,780)Foreign exchange gain on translation - 46,650 -Share issue expenses (592,156) - -Arising on share issue 3,200,000 - -Reversal of investment (4,000,000) - -At 31 December 2006 (1,392,156) 44,715 (1,526,695) 3. Loss per Ordinary Share Basic earnings per share is calculated by dividing the earnings attributable toordinary shareholders by the weighted average number of ordinary sharesoutstanding during the period. As the Company is loss-making, the convertible loan notes are anti-dilutive, andin accordance with IAS 33 have been ignored for the purposes of calculatingdiluted earnings per share. 2006 2005 Weighted Per share Weighted Per share average amount average amount number of number of shares shares Loss Loss £ pence £ PenceBasic and diluted EPSLoss attributable to ordinary (962,780) 29,411,765 (3.27) (563,915) 9,895,350 (5.70)shareholders (962,780) 29,411,765 (3.27) (563,915) 9,895,350 (5.70) END This information is provided by RNS The company news service from the London Stock Exchange