Greencoat Renewables Regulatory News (GRP)

31 Oct 2007 07:31

GruppeM Investments PLC31 October 2007 31 October 2007 GruppeM Investments PLC (LSE: GRP, 'GruppeM' or the 'Company') Interim results for the six months ended 30 June 2007 GruppeM, the Aston Martin Importer for China and retailer of Porsche cars in thecountry's Shandong region, today announces its interim results for the sixmonths ended 30 June 2007 which have been reviewed by the Company's auditors butare unaudited. Overview: • 203 cars ordered and 191 cars delivered by the Porsche Qingdao dealership in the six-month period; • Revenues of £11.6 million (2006: £5.3 million); • Profit before tax of £57,993 (2006: £252,918 loss); • Earnings per share 0.05p (2006: 1.27p loss). Significant post balance sheet events: • CLB Littlejohn Frazer, a top 30 firm of chartered accountants and business advisors, appointed as auditors; • Stephanie Wong taking up appointment as Finance Director on 1 November 2007; • GruppeM to launch Aston Martin brand into China at the end of November 2007, following agreement to import and distribute the brand to China retail dealerships. Commenting on the results and related developments, Kenny Chen, Chief ExecutiveOfficer, said: "This has been a great six months for GruppeM as it develops its luxury sportscars portfolio. Demand for Porsche cars is continuing unabated with 203 carsbeing ordered in the period from our Qingdao dealership. We have been grantedthe right to retail Porsche cars within Shandong and are convinced that there ismuch greater demand for the brand within the region. The opening of our secondPorsche dealership in the region's capital Jinan, (delayed to the first quarterof 2008 due to the building work overrunning), will enable us to begin meetingthis demand and increasing sales volume going forward. Our high reputation, allied with our deep understanding of the Chinese luxurycar market, has yielded an agreement with Aston Martin to import and distributethe marque to retail dealerships within China. We are confident that the AstonMartin brand, like other luxury brands before it, will be hugely popular withinthe Chinese marketplace. We are delighted to welcome Stephanie Wong as Finance Director to the Group.Stephanie is Chinese, qualified as a CPA and practised within the US, and hasextensive experience of the Asia Pacific Region. We look forward to herstarting on 1 November 2007." Enquiries: GruppeM Investments PLC Shore Capital and Corporate LimitedKenny Chen Alex BorrelliTel: +44 (0) 207 233 2952 Tel: +44 (0) 207 408 4090 CHAIRMAN'S STATEMENT Background GruppeM's most recent audited annual report covered the 17-month period to 31December 2006. The interim financial statements below, for the six months ended30 June 2007, have been reviewed by the Company's auditors but are unaudited.The comparative period is from 1 January 2006 to 30 June 2006. Board changes We are delighted to welcome Stephanie Wong to the board as Finance Director from1 November 2007. Originally from Hong Kong, Stephanie qualified as a CPA inTexas in 1996, going on to complete an MBA at the University of Houston thefollowing year. She has held various senior finance roles, latterly as the AsiaPacific Director of Finance and Operations for Fortinet Inc. - a leadingprovider of multi-threat security systems in relation electronic communications. The directors are confident that Stephanie's arrival will be a powerfuladdition to the management team based in China. Financial timetable and auditors GruppeM's annual report for the 17-month period ended 31 December 2006 wasposted to shareholders today. Therefore, the directors anticipate that theshare suspension will be lifted, and that trading in the Company's shares willresume, in the near future. The interim report, containing the unauditedresults below, will also be posted to shareholders today. The release of our audited results for the 17 months ended 31 December 2006, andunaudited interim results for the six months ended 30 June 2007, has beendelayed due to the audit of our Chinese subsidiaries being interrupted by aroutine audit by the Chinese tax authority from which no material issues arose. The board is delighted to announce the appointment of CLB Littlejohn Frazer ("CLBLF") as our new auditor. CLBLF is an independent 'top 30' firm of charteredaccountants and business advisers based in Canary Wharf in London. Results and business review The Group continues to grow rapidly thanks to the increasing volume of sales ofPorsche cars. Turnover increased significantly to £11.6 million (period to 30June 2006: £5.3 million). The pre-tax profit from operations for the period was£57,993 against a loss of £252,918 for the period to 30 June 2006. Earnings pershare were 0.05 pence (2006: 1.27 pence loss). The directors will not berecommending the payment of an interim dividend. The Porsche Qingdao dealership performed strongly with 203 cars ordered and 191cars delivered in the period. Demand for the brand remains strong with customerscurrently waiting approximately six months for their new car. The Company has recently opened a Porsche sales office in Jinan, the capital ofthe Shandong region, and has already made several sales. The new Porsche Jinandealership and workshop is now planned to open in Q1 of 2008. We are pleased that GruppeM has been appointed as the only importer anddistributor of Aston Martin motor cars to retail dealerships within China.Initially GruppeM will be supplying the brand to third-party dealers, ratherthan retailing the brand through its own dealerships. GruppeM is excited at the prospect of launching the Aston Martin brand intoChina at the end of November 2007. We are delighted to announce that the launchwill be attended and supported by the Aston Martin board. Our success in regard to the appointment of GruppeM as sole importer anddistributor of Aston Martin in China is consistent with HMG's clearly statedbusiness strategy for the Chinese market, both in terms of exports and the needto strengthen the growth of City of London listed companies in the rapid growingeconomy of China. The British Embassy and other regional offices are supportingthis initiative to the fullest. Market prospects According to the Xinhua News Agency's recent report, the world's luxury carmakers are very enthusiastic about the great growth potential in China's autoindustry. Porsche China's Managing Director was quoted as saying that heexpects the growth in sales of the marque to increase beyond the doubling ofvolume seen last year. Also, the general manager of Bentley in China (whichoccupies a similar market position to Aston Martin) outlined that the sales tothe end of September 2007 outstripped the total sales for 2006, and that hefully expects sales volume to reach 300 units by the end of this year. Hecommented that the fast expanding economy, and rising income, will inevitablyboost consumer demand for luxury cars. We appreciate your continuing support in our efforts to increase our share ofthe burgeoning luxury car market in China. Finally, I would also like to thankall our employees and advisors for their contribution to our success. Don McCrickardChairman30 October 2007 GRUPPEM INVESTMENTS PLCCONSOLIDATED INCOME STATEMENTFOR THE 6 MONTHS ENDED 30 JUNE 2007 6 months ended 6 months 17 months 30 June ended ended 31 2007 30 June December 2006 2006 (unaudited) (unaudited) (audited) Note £ £ £ Revenue 11,551,698 5,258,243 12,099,616Cost of sales (10,644,692) (4,876,656) (11,239,678) Gross Profit 907,006 381,587 859,938Administrative expenses (839,768) (541,465) (1,823,174)Exceptional items - (88,125) - Operating Profit/(Loss) 67,238 (248,033) (963,236)Finance income and expense (net) (9,305) (4,915) 13,628 Profit/(Loss) for the Period before Taxation 57,993 (252,918) (949,608) Taxation (9,919) (163) (13,172) Profit/(Loss) for the Period 48,014 (253,081) (962,780) Earnings/(loss) per share expressed in penceper share- Basic 2 0.05p (1.27)p (3.27)p- Diluted 2 0.05p - - All amounts relate to continuing activities. CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSEFOR THE 6 MONTHS ENDED 30 JUNE 2007 6 months 6 months 17 months ended ended ended 31 30 June 30 June December 2006 2007 2006 (unaudited) (unaudited) (audited) £ £ £ Profit/(loss) for the financial period 48,014 (253,081) (962,780)Exchange adjustments 6,611 (22,700) (46,650)Total Recognised Income and Expense 54,625 (275,781) (1,009,430)for the Period GRUPPEM INVESTMENTS PLCCONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2007 Notes As at As at As at 30 June 30 June 31 December 2007 2006 2006 (unaudited) (unaudited) (audited) £ £ £AssetsNon-Current Assets Property, plant and equipment 456,029 509,322 499,850 456,029 509,322 499,850 Current Assets Inventory 152,894 62,585 836,672 Trade and other receivables 3,964,353 1,354,307 2,791,348 Cash and cash equivalents 139,729 45,652 126,556 4,256,976 1,462,544 3,754,576 Total Assets 4,713,005 1,971,866 4,254,426 LiabilitiesCurrent Liabilities Trade and other payables 2,692,856 2,276,518 2,433,149 2,692,856 2,276,518 2,433,149 Non-Current LiabilitiesDirector's loan account 3,570,516 454,624 3,414,011Convertible loan 100,366 - 99,402Related party loan 182,000 182,000 182,000 3,852,882 636,624 3,695,413 Total Liabilities 6,545,738 2,913,142 6,128,562 Capital and Reserves Share capital 3 1,000,000 200,000 1,000,000 Merger reserve 4 (1,392,156) - (1,392,156) Foreign operation translation reserve 4 38,104 33,009 44,715 Retained deficit 4 (1,478,681) (1,174,285) (1,526,695) (1,832,733) (941,276) (1,874,136) Total Equity and Liabilities 4,713,005 1,971,866 4,254,426 GRUPPEM INVESTMENTS PLCCONSOLIDATED CASH FLOW STATEMENTFOR THE 6 MONTHS ENDED 30 JUNE 2007 6 months 6 months 17 months ended ended ended 30 June 30 June 31 December 2007 2006 2006 (unaudited) (unaudited) (audited) £ £ £ Cash Flow from Operating Activities Profit/(loss) from operating activities 67,238 (248,003) (963,236) Adjustments for: Depreciation 86,430 51,370 176,334 Exchange adjustment on property, plant and (2,569) 656 6,616equipment Net Cash Flow from Operating Activities before 151,099 (195,977) (780,286)Changes in Working Capital Decrease/(increase) in inventories 683,778 92,022 (836,672) Increase in payables 490,648 417,488 2,045,882 (Increase)/decrease in receivables (1,403,946) 160,605 (2,496,638) Net Cash Flow from Operating Activities before (78,421) 474,138 (2,067,714)Interest and Taxation Paid Interest paid (8,365) (4,940) (2,046) Taxation (9,919) (163) (1,820) Net Cash Flow from Operating Activities (96,705) 469,035 (2,071,580) Investing Activities Purchase of property, plant and equipment (40,040) (550,703) (598,863) Sale of property, plant and equipment - - 24,555 Interest received 24 25 76 Net Cash Flow from Investing Activities (40,016) (550,678) (574,232) Financing Activities Cost of share issue - - (592,156) Issue of convertible loan notes - - 115,000 Director's loan 156,505 71,167 3,076,141 Net Cash Flow from Financing Activities 156,505 71,167 2,589,985 Net Increase/(Decrease) in Cash and Cash 19,784 (10,476) (55,827)Equivalents in the PeriodCash and cash equivalents at the beginning of 126,556 43,081 135,733the periodEffect of foreign exchange rate changes on cash (6,611) 13,047 46,650and cash equivalents Cash and Cash Equivalents at the end of the 139,729 45,652 126,556Period NOTES TO THE INTERIM ANNOUNCEMENT 1. Basis of Preparation These interim statements have been prepared on a consistent basis with theFinancial Statements for the period ended 31 December 2006. These interim statements do not constitute statutory Financial Statements withinthe meaning of Section 240(5) of the Companies Act 1985. Neither the resultsfor the six months ended 30 June 2007, nor the comparatives for the six monthsended 30 June 2006, have been audited. The statutory Financial Statements forthe 17 months ended 31 December 2006 contained an unqualified auditors' reportin accordance with Section 235 of the Companies Act 1985. This financial information has been prepared in accordance with InternationalFinancial Reporting Standards (IFRSs) as adopted by the European Union (EU) andIFRIC interpretations that are relevant to its operations. The financialinformation has been prepared under the historical cost convention. The preparation of this financial information in conformity with generallyaccepted accounting principles requires the use of estimates and assumptionsthat affect the reported amounts of assets and liabilities at the date of thefinancial information and the reported amounts of revenues and expenses duringthe reporting period. Although these estimates are based on management's bestknowledge of the amount, event or actions, actual results ultimately may differfrom those estimates. Basis of Consolidation The consolidated Financial Statements consist of GruppeM Investments PLC and itssubsidiaries. The consolidated Financial Statements of GruppeM Investments PLChave been prepared under merger accounting rules. This means that the FinancialStatements of GruppeM Investments PLC, and its wholly owned subsidiary GruppeMHong Kong Limited, have been aggregated and presented as if the two companieshave always formed a group. Where necessary, adjustments are made to the Financial Statements of thesubsidiaries 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. 2. Profit/(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. In order to calculate diluted earnings per share, the weighted average number ofordinary shares in issue is adjusted to assume conversion of all dilutivepotential ordinary shares according to IAS 33. Dilutive potential ordinaryshares include convertible loan notes and are assumed to have been convertedinto ordinary shares. 6 months to 30 June 2007 6 months to 30 June 2006 Weighted Per share Weighted Per share amount average amount average number of number of Profit shares Loss shares £ pence £ penceBasic EPSProfit/(loss) 48,014 100,000,000 0.05 (253,081) 20,000,000 (1.27)attributable toordinary shareholdersConvertible loan note - 2,300,000 - - - - Diluted EPS 48,014 102,300,000 0.05 (253,081) 20,000,000 (1.27) 3. Share Capital 30 June 2007 30 June 2007 30 June 2006 30 June 2006 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 4. 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 at1 February 2005, i.e., its date of incorporation less the nominal value of theshares issued by the Company to acquire the shares, reflecting the position asif the merger had occurred on 1 February 2005. Group Share capital Merger Foreign Total reserve currency translation Retained reserve earnings £ £ £ £ £ At 1 January 2006 200,000 - 10,309 (921,204) (710,895)Loss for the period - - - (253,081) (253,081)Foreign exchange translation - - 22,700 - 22,700 At 30 June 2006 200,000 - 33,009 (1,174,285) (941,276)Acquisition 800,000 - - - 800,000Arising on share issue, less expenses - (1,392,156) - - (1,392,156)Loss for the period - - - (352,410) (352,410)Foreign exchange translation - - 11,706 - 11,706 At 31 December 2006 1,000,000 (1,392,156) 44,715 (1,526,695) (1,874,136)Profit for the period - - - 48,014 48,014Foreign exchange translation - - (6,611) - (6,611) At 30 June 2007 1,000,000 (1,392,156) 38,104 (1,478,681) (1,832,733) Independent Review Report to the Directors of GruppeM Investments PLC Introduction We have been instructed by the Company to review the financial information forthe six months ended 30 June 2007 which comprises the consolidated incomestatement, the consolidated balance sheet, the consolidated statement ofrecognised income and expense, the consolidated cash flow statement and therelated notes. We have read the other information contained in the interimreport and considered whether it contains any apparent misstatements or materialinconsistencies with the financial information. This report, including the conclusion, has been prepared for and only for theCompany for the purpose of the AIM Rules of the London Stock Exchange and for noother purpose. We do not, in producing this report, accept or assumeresponsibility for any other purpose or to any other person to whom this reportis shown or into whose hands it may come save where expressly agreed by ourprior consent in writing. Directors' Responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directors areresponsible for preparing the interim report in accordance with the AIM Rules ofthe London Stock Exchange which require that the accounting policies andpresentation applied to the interim figures should be consistent with thoseapplied in preparing the annual accounts except where any changes, and thereasons for them, are disclosed. Review Work Performed We conducted our review in accordance with the guidance contained in Bulletin1999/4 issued by the Auditing Practices Board for use in the United Kingdom. Areview consists principally of making enquiries of management and applyinganalytical procedures to the financial information and underlying financial dataand, based thereon, assessing whether the accounting policies and presentationhave been consistently applied unless otherwise disclosed. A review excludesaudit procedures such as tests of controls and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with International Standards on Auditing (UK andIreland) and therefore provides a lower level of assurance than an audit.Accordingly, we do not express an audit opinion on the financial information. 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 2007. CLB Littlejohn FrazerChartered Accountants and Registered Auditors1 Park PlaceCanary WharfLondon E14 4HJ 30 October 2007 Circulation to Shareholders The interim report and accounts will be posted to shareholders in due course andwill be available to the public from the Company's registered office at GruppeMInvestments PLC, Suite 1.3 Buckingham Court, 78 Buckingham Gate, London, SW1E6PD. For more information please contact: GruppeM Investments PLCKenny ChenTel: +44 (0) 207 233 2952 Shore Capital and Corporate LimitedAlex BorrelliTel: +44 (0) 207 408 4090 Further information on GruppeM Investments PLC can be found on the Company'swebsite: www.gruppemplc.com. This information is provided by RNS The company news service from the London Stock Exchange