LBB.L Regulatory News (LBB)

27 Sep 2007 07:01

Greenhouse Fund Limited (The)27 September 2007 For Immediate Release 27 September 2007 The Greenhouse Fund Limited ("Greenhouse" or "the Fund") Interim Results for the 6 months ended 30 June 2007 The Greenhouse Fund (AIM:GHF), the Jersey domiciled closed-ended investmentcompany, today reports its interim statement to shareholders for the 6 monthsended 30 June 2007. Highlights for the period: •Additional investment, post period end, brings Greenhouse stake in Molectra to 58% •Independent Wiley report strongly endorses the economic and commercial viability of Molectra •Molectra wins 2007 DaimlerChrysler Australian Environmental Research Award •Significant progress in next round of Molectra funding •Greenhouse has made good progress towards identifying its next potential technology investment •Net Asset Value of 8.74p •Cash of £6,672,737 For further information please contact: Greenhouse AdvisorPaul Gazzard 01725 510 383Rodger Sargent 020 7399 4260Evolution Securities 020 7071 4300Fergus MarcroftBuchanan Communications 020 7466 5000Charles RylandBen Willey CHAIRMAN'S STATEMENT These unaudited interim accounts for The Greenhouse Fund Limited ('Greenhouse')cover the six months to 30 June 2007. Greenhouse is a Jersey domiciledclosed-ended investment company, created to invest in sustainable environmentaltechnologies. Any acquisition must have a market ready or near market readypatentable green technology with scalable potential. The Fund aims to maximisevalue by the subsequent flotation, restructuring, joint venture or sale oftechnologies it develops. Financial performance As at 30 June 2007, Greenhouse had net assets of £13,574,110 (2006:£13,998,150), including cash of £6,672,737 (2006: £8,853,365) and investments of£6,927,212 (2006: £5,158,861). The loss for the period was £238,052 (2006:£118,827) and the period end NAV was 8.74p (2006: 9.02p). The loss increased dueto additional due diligence costs compared to the previous period. Portfolio update Molectra Australia Pty Ltd ('Molectra') Greenhouse has made two convertible investments; £750,000 on 27th March 2006 and£1.2m on 26th March 2007 in Molectra. These convertible instruments wereexercised after the period end, giving the Company a controlling 58% equitystake. Molectra has developed a sustainable process that re-cycles and recoversmaterials including crumb rubber, oil and carbon from used vehicle tyres. Thetechnology has been developed over the last 10 years and has won manyinternational awards and prizes during this time, including the 2007DaimlerChrysler Australian Environmental Research Award. Greenhouse's investment enabled Molectra's existing plant to be scaled up toprocess up to 250,000 tyres per year, and provided the infrastructure requiredto deliver the solution on a larger scale. Greenhouse commissioned a report fromWiley & Co. ("Wiley"), to analyse the plant's operation, which was received inMarch 2007. Wiley is an internationally renowned engineering firm that wasinvolved in the construction of the plant from inception. The report examinedthe construction, commissioning and operation of the pilot plant and theoperating and capital costs associated with a scale up from pilot to full-scaleplant. The Wiley report strongly endorses the economic and commercial viabilityof the Molectra process. This proposed full-scale plant is designed to process c.2.6 million tyres peryear or 26,000 tonnes, which is ten-times the capacity of the current pilotplant. It is anticipated that a full scale plant will cost c.£6 million to buildand take c.12 months to construct. On 2nd August, following the period covered by these accounts, Greenhouse issueda draw down loan of up to AUS$4.5m to Molectra. The funds will be used to securea site for the establishment of the full-scale Molectra plant. A site outsideSydney in New South Wales, Australia, has been identified and final negotiationsare now taking place with the authorities. The secured loan bears interest andis repayable by Molectra within a year, or on demand by Greenhouse. Other investments On 29 June 2006 Greenhouse acquired five Bauxsol technology sub-licences fromVirotec International Ltd. Greenhouse continues to further develop the Bauxsoltechnologies, using both academic and commercial partners from within industry.Once an application has been fully commercialised, Greenhouse will consider thestrategic options available so as to maximise shareholder value. A number of other investment opportunities to further strengthen the portfolioare currently being considered by Greenhouse, and announcements will be made indue course. Cash Retained cash and equivalents was £6,672,737 at 30th June. The future The Wiley report and recent DaimlerChrysler Australian Environmental ResearchAward are major validations of the Molectra technology and its economics. Thisis further validation of the sustainable benefits Molectra brings to the wastetyre issue, and ensures the best possible start for the commercialisation of thetechnology as its expansion and scale up continues. Commercialisation of theirtechnology continues rapidly, including the imminent purchase of its firstfull-scale operating site. Further commercial developments within Molectra areactively being considered. Greenhouse will also continue to seek out new sustainable technologies, whilstdeveloping the pipeline of technologies it has acquired and I look forward toMolectra's future with great optimism. Brian SheeranDeputy ChairmanGreenhouse Fund Limited 26th September 2007 THE GREENHOUSE FUND LIMITED Consolidated Condensed Interim Income Statement (Unaudited) For the six months ended 30 June 2007 (unaudited) (unaudited) 01 January 2007 13 December 2005 to 30 June 2007 to 30 June 2006 £IncomeBank interest 6,088 8,211Deposit interest 184,477 174,962Total Income 190,565 183,173 Operating expensesManagement fees (97,195) (91,288)Other operating expenses (331,422) (210,712)Total operating expenses (428,617) (302,000) Net loss for the period (238,052) (118,827) Basic and diluted loss per share (pence) (0.15) (0.10) All income is attributable to the equity holders of the Greenhouse Fund Ltd. There are no minority interests. THE GREENHOUSE FUND LIMITED Consolidated Condensed Interim Balance Sheet (Unaudited) As at 30 June 2007 (unaudited) (unaudited) 30 June 2007 30 June 2006 £ £ Non-Current AssetsIntangible assets 4,938,365 5,000,000Investments held at fair value 1,988,847 158,861 6,927,212 5,158,861Current assetsOther receivables 24,204 24,387Cash and cash equivalents 6,672,737 8,853,365 6,696,941 8,877,752 Total assets 13,624,153 14,036,613 Current liabilitiesOther payables (50,043) (38,463) Net assets 13,574,110 13,998,150 Equity Share capital 14,116,977 14,116,977Retained earnings (542,867) (118,827)Total Equity 13,574,110 13,998,150 NAV per Ordinary share (pence) 8.74 9.02 These financial statements were approved by the board of Directors and signed on 26th September 2007. THE GREENHOUSE FUND LIMITED Condensed Interim Statement of Cash Flows (Unaudited) For the six months ended 30 June 2007 (unaudited) (unaudited) 01 January 2007 13 December 2005 to 30 June 2007 to 30 June 2006 £ £Cash flow from operating activities Net loss for period (238,052) (118,827)Amortisation 133,176 -Decrease/(Increase) in other receivables 13,977 (24,387)(Decrease)/Increase in other payables (6,752) 38,463 Net cash outflow from operating activities (97,651) (104,751) Cash flow from investing activitiesPurchase of unlisted investments (1,269,973) (658,861)Purchase of intangible investments (128,740) - Net cash outflow from investing activities (1,398,713) (658,861) Cash flow from financing activitiesIssue of Ordinary shares - 10,072,250Sales commission and formation costs paid - (455,273) Net cash inflow from financing activities - 9,616,977 Net increase in cash and cash equivalents (1,496,364) 8,853,365 Cash and cash equivalents at start of the period 8,169,101 - Cash and cash equivalents at 30 June 2007 6,672,737 8,853,365 THE GREENHOUSE FUND LIMITED Notes to the Condensed Interim Financial Statements (Unaudited) 1 Basis of accounting The Group financial statements are prepared under International Financial Reporting Standards (IFRS) as adopted by the EU. This statement has been prepared using accounting policies & presentation consistent with those applied in the preparation of the accounts for the Group for the year ended 31st December 2006 and are not the company's statutory accounts for the purposes of section 240 of the Companies Act 1985. 2 Earnings per share The earnings per Ordinary share is based on the net loss for the period of £238,052 (30 June 2006:£118,827); and on 155,225,000 (30 June 2006:120,806,784) weighted average Ordinary shares. The diluted return per Ordinary share is based on the net loss for the period and 155,225,000 shares. 01 January 13 December 2007 20053 Management fee to 30 June to 30 June 2006 2007 £ £ Management fee 97,195 91,288 The management fee paid to Development Capital Management (Jersey) Limited is 2% per annum of the amount subscribed plus any gains retained by the Fund for reinvestment. The management agreement between the Fund and the Manager is terminable by either party on twelve month's notice, subject to an initial term of 36 months from admission. 4 Financial Investments designated at fair value through the profit and loss 30 June 2007 30 June 2006 £ £ Intangible Unlisted Total Intangible Unlisted Total assets investments assets investments £ £ £ £ £ £ Opening valuation 4,942,801 718,874 5,661,675 - - - Purchases at cost 128,740 1,269,973 1,398,713 5,000,000 158,861 5,158,861 Amortisation charge (133,176) - (133,176) - - - Closing net book 4,938,365 1,988,847 6,927,212 5,000,000 158,861 5,158,861 amount The Director have reviewed the fair values of the investments at 30 June 2007, and consider there is no change in the values from those assessed at 31 December 2006 There has been no impairment in intangible assets in the period. The useful economic life of the intangible asset is 20 years. 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