30 Sep 2008 07:00
| For Immediate Release | 30 September 2008 |
Molectra Group Limited (the "Company")
Unaudited interim results for the 6 months ended 30 June 2008
Molectra Group Limited (AIM:MOLE), (formerly the Greenhouse Fund Limited), today reports its unaudited interim results for the 6 months ended 30 June 2008.
Highlights for the period:
Additional investment in Molectra Australia
Two re-bonded crumb rubber contracts awarded
Highlights post period end:
Acquired remaining minority interests in Molectra Australia
Change in strategy from fund to operating company
Name change to Molectra Group Limited
New board appointments
Paul Gazzard, Chief Executive Officer commented: "The year to date has seen a transformation in both Molectra's operations and the Company's structure. The award of our first two contracts for re-bonded crumb rubber mark the change in Molectra's technology from the research and development phase to a commercially viable process.
The structural changes made to Molectra have created a well funded company with a highly experienced management team and an exciting technology. With several negotiations ongoing which may lead to further contracts, we view Molectra's future with confidence."
For further information please contact:
| Molectra Group Ltd |
|
| Paul Gazzard | 01725 510 383 |
| Rodger Sargent | 020 7355 7660 |
| Matrix Corporate Capital LLP | |
| Stephen Mischler | 020 3206 7203 |
| Tim Graham | 0203 206 7206 |
| Threadneedle Communications Ltd | |
| Graham Herring | 020 7653 9850 |
CHAIRMAN'S STATEMENT
These unaudited interim accounts cover the six months to 30 June 2008.
Financial performance
As at 30 June 2008, the Company had net assets of £12,833,702 (2007: £13,574,110). The loss for the period was £1,465,372 (2007: £238,052) and the period end NAV was 8.27p (2007:8.74p). The increased loss was due to significantly increased corporate activity compared to the previous period, which resulted in large due diligence, legal and accounting costs.
Portfolio update
Molectra Australia Pty Ltd ('MA')
Development continued at Molectra Australia throughout the period. On 10 March 2008, MA entered into its first value added product ('VAP') contract, to supply anti-cast products made from its recycled re-bonded crumb rubber to the equine market. Anti-cast products are used to create a soft and impact resistant surface on stable walls to prevent injury to horses. The contract will be supplied out of the Brisbane plant, to an individual trading as HorseFabulous Products & Equipment, for distribution across Australasia.
On 10 June 2008, a second contract, to supply rubber automotive accessory products to an Australian distributor, was won. It is very encouraging that, despite Brisbane being a pilot plant, MA is able to enter commercial agreements and this bodes well for the future, once production volumes and efficiencies are improved.
On 15 April 2008, it was announced that the AUD$1,700,000 outstanding loan from Molectra to MA would be repaid by the issue of further shares in Molectra, taking the Company's stake in MA to 64.3 per cent.
There were significant post period end developments that are covered below.
Other investments
The five Bauxsol technology sub-licences are non-core to the Company's future strategy. A strategic review to maximise shareholder value from the licenses is currently under way, the outcome of which will be announced in due course.
Post period developments
On 16 July 2008, it was announced that the Company had agreed, subject to the approval of shareholders at an EGM, to acquire the 35.7% of MA's share capital that it did not already own. The consideration for the acquisition would be satisfied by the issue of 32,000,000 new Molectra ordinary shares. In addition, it was announced that the Company would acquire the intellectual property which MA relies upon for its business, for a consideration of 16,000,000 new ordinary shares.
It was also proposed that Paul Gazzard and Rodger Sargent, directors of the Greenhouse Strategic Adviser, join the Board of the Company, along with John Dobozy, the inventor of the Molectra technology, and David Hassum.
Given that the nature of the Company's business would be transformed by these proposals, it was also proposed that the Company's name be changed to Molectra Group Limited. It was further proposed that the Company would cease being an externally managed investment company and would become an internally managed company whose principal business would be conducted through its wholly owned subsidiary, MA.
These proposals represented a fundamental change in the business, board and voting control of the Company, and constituted a reverse takeover under the AIM Rules, requiring the approval of shareholders at an EGM. All resolutions were passed by shareholders at the EGM, held on 12 August 2008.
The acquisition and change in strategy allows the Company to concentrate principally on the continued commercialisation of the MA tyre recycling process. Short term prospects involve securing additional contracts for the production and supply of the higher margin re-bonded crumb rubber products and, to date, two such contracts have been awarded, whilst discussions are continuing with a number of parties both in Australia and overseas which may lead to additional contracts being secured.
Further investment will be made to enhance the production facility and increase capacity to accommodate the increasing production demand for VAP's. However, a key strategy for growth is the opportunity to establish tyre recycling plants for third parties, which is a potentially significant area of expansion. Target industries for such plants include the mining and waste management industries, where there are restrictions and regulations on the disposal of waste tyres. Over the medium to long term the Company will also continue to improve the MolectraVac microwave technology and seek to produce a carbon based product stream that is commercially viable.
The change of strategy from the portfolio approach of The Greenhouse Fund Limited to sole development of Molectra presents an exciting opportunity which I hope will allow to us to fully commercialise and enjoy the tremendous potential of Molectra's product range. I look forward to the future with great optimism.
Roger Maddock
Non-executive Director
Molectra Group Limited
30 September 2008
| MOLECTRA GROUP LIMITED | |||||||||||
| Consolidated Condensed Interim Income Statement (Unaudited) | |||||||||||
| For the six months ended 30 June 2008 | |||||||||||
| (unaudited) | (unaudited) | ||||||||||
| 01 January 2008 | 01 January 2007 | ||||||||||
| to 30 June 2008 | to 30 June 2007 | ||||||||||
| £ | |||||||||||
| Revenue | |||||||||||
| Bank interest | 20,010 | 6,088 | |||||||||
| Deposit interest | 122,193 | 184,477 | |||||||||
| Other income | 15,102 | - | |||||||||
| Total Income | 157,305 | 190,565 | |||||||||
| Operating expenses | |||||||||||
| Management fees |
| (97,732) | (97,195) | ||||||||
| Other operating expenses | (1,212,478) | (198,246) | |||||||||
| Amortisation of intangible asset | (231,438) | (133,176) | |||||||||
| Depreciation of plant, property, and equipment | (35,247) | - | |||||||||
| Total operating expenses | (1,576,896) | (428,617) | |||||||||
| Taxation | (45,782) | - | |||||||||
| Net loss for the period | (1,465,372) | (238,052) | |||||||||
| Attributable to: | |||||||||||
| Equity holders of the company | (1,364,397) | (238,052) | |||||||||
| Minority interest | (100,975) | - | |||||||||
| Net loss for the period | (1,465,372) | (238,052) | |||||||||
| Basic and diluted loss per share (pence) | (0.88) | (0.15) | |||||||||
| All transactions arise from continuing operations. | |||||||||||
| MOLECTRA GROUP LIMITED | ||||||
| Consolidated Condensed Interim Balance Sheet (Unaudited) | ||||||
| As at 30 June 2008 | (unaudited) | (unaudited) | ||||
| 30 June 2008 | 30 June 2007 | |||||
| £ | £ | |||||
| Non-Current Assets | ||||||
| Intangible assets | 8,959,928 | 4,938,365 | ||||
| Investments held at fair value | - | 1,988,847 | ||||
| Property, plant and equipment | 723,664 | - | ||||
| 9,683,592 | 6,927,212 | |||||
| Current assets | ||||||
| Other receivables | 57,636 | 24,204 | ||||
| Cash and cash equivalents |
| 4,505,523 | 6,672,737 | |||
| 4,563,159 | 6,696,941 | |||||
|
| ||||||
| Total assets | 14,246,751 | 13,624,153 | ||||
| Current liabilities | ||||||
| Other payables | (198,288) | (50,043) | ||||
| Non-current liabilities | ||||||
| Deferred income tax liabilities | (1,214,761) | - | ||||
| Net assets | 12,833,702 | 13,574,110 | ||||
| Equity | ||||||
| Share capital | 14,116,977 | 14,116,977 | ||||
| Other reserve | 1,509 | - | ||||
| Retained earnings | (2,144,052) | (542,867) | ||||
| 11,974,434 | 13,574,110 | |||||
| Minority interest | 859,268 | - | ||||
| Total Equity | 12,833,702 | 13,574,110 | ||||
| NAV per Ordinary share (pence) | 8.27 | 8.74 |
| |||
| These financial statements were approved by the Board of Directors and signed on 30th September 2008. | ||||||
| MOLECTRA GROUP LIMITED | |||||||
| Condensed Interim Statement of Cash Flows (Unaudited) | |||||||
| For the six months ended 30 June 2008 | |||||||
| (unaudited) | (unaudited) | ||||||
| 01 January 2008 | 01 January 2007 | ||||||
| to 30 June 2008 | to 30 June 2007 | ||||||
| £ | £ | ||||||
| Cash flow from operating activities | |||||||
| Net loss for period | (1,465,372) | (238,052) | |||||
| Amortisation | 266,685 | 133,176 | |||||
| Increase in deferred tax liability | 45,782 | - | |||||
| Decrease in other receivables | 149,299 | 13,977 | |||||
| Decrease in other payables | (352,328) | (6,752) | |||||
| Net cash outflow from operating activities | (1,355,934) | (97,651) | |||||
| Cash flow from investing activities | |||||||
| Purchase of property, plant, and equipment | (170,513) | - | |||||
| Purchase of unlisted investments | - | (1,269,973) | |||||
| Purchase of intangible investments | - |
| (128,740) | ||||
| Net cash outflow from investing activities | (170,513) | (1,398,713) | |||||
| Cash flow from financing activities | |||||||
| Issue of Ordinary shares | - | - | |||||
| Sales commission and formation costs paid | - | - | |||||
| Net cash inflow from financing activities | - | - | |||||
|
| |||||||
| Net decrease in cash and cash equivalents | (1,526,447) | (1,496,364) | |||||
| Cash and cash equivalents at start of the period | 6,031,970 | 8,169,101 | |||||
| Cash and cash equivalents at 30 June | 4,505,523 | 6,672,737 | |||||
| MOLECTRA GROUP 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 2007 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 £1,465,372 (30 June 2007:£238,052); | |||||||||||||||
| and on 155,225,000 (30 June 2007:155,225,000) weighted average Ordinary shares. | |||||||||||||||
| The diluted return per Ordinary share is based on the net loss for the period and 155,225,000 shares. There are no potentially | |||||||||||||||
| dilutive Ordinary shares. | |||||||||||||||
| 3 | Management fee | ||||||||||||||
| 01 January 2008 | 01 January 2007 | ||||||||||||||
|
| to 30 June 2008 | to 30 June 2007 | |||||||||||||
| £ | £ | ||||||||||||||
| Management fee | 97,732 | 97,195 | |||||||||||||
| 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. | |||||||||||||||