Cadence Mineral Regulatory News (KDNC)

29 Jun 2005 07:01

Zest Group PLC29 June 2005 RNS Announcement29 June 2005 Zest Group plc Interim Results for the period ended 31 March 2005 Chairman's Statement I am pleased to present the first set of figures since admission of theCompany's shares to trading on the Alternative Investment Market ('AIM') on 24March this year. The results cover the period from incorporation on 17 September 2004 to 31 March2005. During this period the Company generated no revenue. In addition to thetransaction costs of the AIM flotation, which have been set against the premiumarising on shares issued at the time of the AIM admission, costs were incurredin acquiring certain recording and publishing rights and in commencing therecording of an album, as referred to below. Certain of these costs arerecoverable against anticipated future royalties. Costs to date have beenfunded by initial shareholder subscriptions and by the proceeds of the Placingeffected at the time of Admission to AIM. It should be emphasised that thereported results are historic in nature and are not an accurate reflection ofthe current state of the Company's affairs. For the period to 31 March 2005 the Company recorded a loss before taxation of£151,300 and a loss per share of 0.46p. No interim dividend is proposed. The Directors are satisfied with the Company's progress thus far, which has beenbroadly in line with that envisaged in the AIM Admission Document issued inMarch. Zest is close to completion of the recording of an album for Tara Chinn,an exciting new female artist who is attracting attention from major recordlabels in the UK and the USA. The Company is currently negotiating a wordwidelicensing agreement with one of the major record labels, following which Tara'salbum will be launched . Zest has also signed Nasio Fontaine, an establishedReggae artist. Under this deal the Company has acquired three existing albums inNasio's catalogue together with the music publishing rights. Nasio iscurrently recording a new album, which will be released at the end of 2005 orearly in 2006. The recording and music publishing rights to this new album andan option over a further three more albums are also contracted to Zest. We are additionally in discussion with a number of independent music recordingand publishing companies with a view to their acquisition, and are optimisticthat these discussions will bear fruit within the coming months. Richard GriffithsChairman 28 June 2005 Enquiries: John Bick, Holborn Public Relations Tel: 020 7929 5599Zest Group plc Profit and loss accountfor the period ended 31 March 2005 Period from incorporation to 31 March 2005 (Unaudited) £000 Notes Administrative expenses (151.5) Operating loss (151.5) Interest receivable and similar income 0.2 Loss on ordinary activities before and after tax 3 (151.3) Loss per share (pence) 2 (0.46) Zest Group plc Balance sheetAs at 31 March 2005 31 March 2005 (Unaudited) £000 NotesFixed assetsLicence agreements 153.9 Current assetsPrepaid royalties 153.2Debtors 27.5Cash at bank and in hand 335.5Total current assets 516.2 Creditors: amounts falling due within one year (93.1) Net current assets 423.1 Total assets less current liabilities, and net 577.0assets Capital and reservesCalled up share capital 3 184.2Share premium account 3 544.1Profit and loss account 3 (151.3) Equity shareholders' funds 577.0 Reconciliation of movement in equity shareholders'funds Period from incorporation to 31 March 2005 (Unaudited) £000 Total recognised loss for the period (151.3)Issue of shares 728.3Net movement in equity shareholders' funds 577.0Equity shareholders' funds at start of period -Equity shareholders' funds at end of period 577.0 Zest Group plc Cash flow statementfor the period ended 31 March 2005 Period from incorporation to 31 March 2005 (Unaudited) £000 Net cash outflow from operating activities (239.1) Returns on investments and servicing of financeInterest received 0.2 0.2 Capital expenditure and financial investmentPurchase of intangible fixed assets (153.9) Net cash outflow before financing (392.8) FinancingIssue of shares 845.0Share issue costs (116.7) 728.3 Increase in cash 335.5 Reconciliation of net cash flow to movement in net cash Period from incorporation to 31 March 2005 (Unaudited) £000 Increase in cash 335.5Change in net cash from cash flows 335.5Opening net cash -Closing net cash 335.5 Zest Group plc Notes to the Interim Resultsfor the period ended 31 March 2005 1. Basis of preparation The Interim Results were approved by the Directors on 28 June 2005. The resultshave been prepared using accounting policies consistent with UK generallyaccepted accounting practice, full details of which will be set out in theCompany's annual report and accounts for the period ending 30 September 2005. The Interim Results are unaudited and do not constitute statutoryaccounts within the meaning of Section 240 of the Companies Act 1985. 2. Loss per share The loss per share is calculated on the loss on ordinary activitiesafter taxation of £151,300 and on the weighted average number of ordinary sharesin issue during the period of 33,085,472. The effect of share options is anti-dilutive. 3. Share capital and reserves Share Share Profit & loss capital premium account £000 £000 £000 On incorporation - - -Issue of shares to founders 127.5 37.5 -Shares issued on admission to AIM 56.7 623.3 -Costs of Admission - (116.7) -Result for the period - - (151.3) At 31 March 2005 184.2 544.1 (151.3) Zest Group plc Notes to the Interim Results (continued)for the period ended 31 March 2005 4. Reconciliation of operating loss to cash flows Period from incorporation to 31 March 2005 (Unaudited) £000 Operating loss (151.5)Movement in debtors (180.7)Movement in creditors 93.1 Net cash outflow from operating activities (239.1) 5. Copies of the results Copies of the Interim Results will be sent to shareholders in duecourse and will be available from the registered office. This information is provided by RNS The company news service from the London Stock Exchange