Graphene Nanochem Regulatory News (GRPH)

29 Sep 2008 10:49



For Immediate Release 29 September 2008

Biofutures International plc

Interim Results for the six months ended 30 June 2008

Biofutures International plc, the AIM listed investing company which seeks to establish, invest in, or acquire assets, partnerships, joint ventures, businesses or companies in Europe, Asia and the Middle East in the energy and utility sectors and their related infrastructures today announces its results for the six months ended 30 June 2008. 

CHAIRMAN'S STATEMENT

I am pleased to present our interim results for the six months ended 30 June 2008.

The loss for the 6 month period ended 30 June 2008 was £(145,000) compared to £(449,000) for the same period in 2007. The Directors have focussed on the conservation of shareholder value through a reduction in administrative expenses to £356,000 for the 6 month period ended 30 June 2008 from £682,000 for the same period in 2007, while actively pursuing the Group's investing strategy. Cash at 30 June 2008 was £8,095,000 compared to £8,650,000 at 30 June 2007.

On 16 May 2008, we announced that we had terminated our contract to purchase the 50 acres of land at Lahad Datu, Sabah, Malaysia and agreed, in its place, to purchase 14 acres of land at the same location ("Lahad Datu land"). This agreement leaves us with sufficient acreage to build a palm oil refinery plant (and to add the additional modules to convert it to a 200,000 metric tonnes biodiesel plant should it become economically viable to do so in the future) and has allowed us to save approximately £2.90 million which would otherwise have been spent on acquiring the 50 acre plot of land.

We also subsequently announced the findings of our review of our Zurex project and concluded that the biodiesel plant as originally conceived was currently not economically viable. The management has been actively pursuing alternative options for the Company. We have continued our discussions with Lurgi and are carrying out due diligence on the feasibility of re-engineering the project so that a palm oil refinery plant can be built, utilising the Lahad Datu land and some of the equipment already constructed or procured from Lurgi. This refinery, through the addition of a trans-esterification module or an esterification module and associated ancillary equipment, could be expanded to produce palm oil biodiesel should it become economically viable to do so. We have applied for the necessary licence to produce refined palm oil and are awaiting a decision from the appropriate department in Malaysia. In the meantime we are finalising our due diligence on this refinery project.

Board Changes

We welcomed to the Board David Long as a Non Executive Director with effect from 5 February 2008. David has many years' experience in business operational management and business accounting processes within the paint and chemical industry.

Group Strategy

At the Extraordinary General Meeting (EGM) 6 June 2008, the Company became an Investing Company. The Group's strategy is to continue to review the biodiesel plant project to be carried out by Zurex including potentially re-engineering it into a palm oil refinery. In addition, the Group's strategy is to invest in or acquire projects, assets, partnerships, joint ventures, businesses or companies (public or private) in Europe, Asia and the Middle East in the energy and utility sectors and their related infrastructures.

As an Investing Company, Biofutures will therefore have to make an acquisition or acquisitions which constitute a reverse takeover under the AIM Rules for Companies or otherwise implement its Investing Strategy to the satisfaction of the London Stock Exchange by 6 June 2009. If this does not occur, trading in the Company's ordinary shares will be suspended. Such an investment could be an investment in the palm oil refinery project.

Outlook

The broader investment strategy adopted at the June EGM provides the Company with the flexibility to utilise its current cash resources for the benefit of shareholders. The palm oil refinery project is being actively pursued as a potential project. The Company is also seeking other investments which should add to shareholder value.

David Yeoh

Executive Chairman

29 September 2008

Enquiries:

Julie Pomeroy, Group Finance Director,

Biofutures International plc

Tel: 0117 920 0092

Emily Morgan, 

Blomfield Corporate Finance

Tel: 01275 871717

Paul Vann

Winningtons Financial

Tel: 0117 920 0092

UNAUDITED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS TO 30 JUNE 2008

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

UNAUDITED CONSOLIDATED BALANCE SHEET 

UNAUDITED CASH FLOW STATEMENT 

UNAUDITED NOTES TO THE INTERIM STATEMENTS FOR THE SIX MONTHS TO 30 JUNE 2008

1  Basis of preparation

The financial information contained in these financial statements comprises the Group balance sheets as at 30 June 2008, 30 June 2007 and 31 December 2007, the Group statement of income, the Group statement of cashflows and the Group statement of changes in equity for the half year ended 30 June 2008 and 30 June 2007 and the year ended 31 December 2007.

The financial information set out on pages 2, 3 and 4 is unaudited and does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The comparative numbers for the year ended 31 December 2007 have been extracted from the audited accounts which have been filed at Companies House and which carried an unqualified audit report with no statement under s237(2) or (3) of the Companies Act 1985. 

These condensed consolidated interim financial statements (the interim financial statements) have been prepared in accordance with the accounting policies as set out in the Group's annual financial statements for the year ended 31 December 2007 on pages 17 to 21  which are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) and are effective at 30 June 2008 or are expected to be adopted and effective at 31 December 2008 our annual reporting date which will use IFRS accounting standards adopted by the EU. 

The Interim Report has been drawn up on the basis that the refinery plant discussed above will be built.  However if the refinery plant is not built, a significant write-off is likely to be required as the intangible assets may have limited value in the current market conditions and a further write-off of tangible assets may be required.

2 Segmental Information

Primary reporting format - business segment:

3 Income tax expenses

There is no tax charge due to the losses arising in the period.

4 Loss per share

The impact of options and warrants on the loss per share is anti-dilutive and therefore no diluted earnings per share figure have been included.

5 Cash generated from operations

6 Dividend

The directors do not recommend the payment of a dividend.

7  Availability of interim report

The Company's Interim Report will be available in hard copy for one month from the Company's registered office at One, St Paul's Churchyard, London EC4M 8SH. The Company's Interim Report will also be available in soft copy from the investors section of the Company's website; www.biofuturesplc.com, at least until the publication of the next annual report pursuant to Rule 26 of the AIM Rules for Companies.