Minoan Regulatory News (MIN)

11 Jul 2007 07:00

Minoan Group PLC11 July 2007 Preliminary Results Announcement Minoan Group Plc, the AIM quoted-leisure resort developer, announces itspreliminary results for the year ended 31 March 2007 Chairman's Statement Introduction The past twelve months have been an exciting period of great progress for yourCompany. Since my last Chairman's Statement, I am very happy to be able to saythat major advances have been achieved for Minoan's Project at Cavo Sidero innorth eastern Crete. These include the announcement by the Greek Government ofits approval of the Company's Environmental Impact Study ("EIS") and theissuance of environmental terms plus the signing of the first Hotel ManagementAgreement for the resort with Kempinski Hotels. In addition, on 2 May 2007, theCompany moved its listing from PLUS Markets to AIM, which the Board believeswill help raise its profile and status among investors and enhance the liquidityof Minoan shares. The EIS approval prompted a major upward revision of the independently assessedvaluation of the site on which Cavo Sidero will be built. The valuation hasincreased from £80 million in June 2005, to £115 million. We have a very strong Board in place and support from both national and localgovernment as befits one of the largest inward investments which Greece has yetseen. These facts, plus the political stability of Greece, give me greatconfidence in the direction your Company is taking. I look forward to a futureas exciting and satisfying as the last twelve months have proved. The Cavo Sidero Project EIS approval for the Cavo Sidero Project was hard won and is the reward for manyyears of intensive effort by the Group and its advisers. The EIS is the finalsignificant hurdle for major planning applications. A single appeal has beenlodged against the consent. This was not unexpected and the Company has now beeninformed that the appeal is scheduled to be heard on 2 November 2007. Given thestated desire of both the Greek Government and the local communities in Cretefor the Cavo Sidero development to succeed, I am confident of a successfulconclusion to this process. The recent publication of the Greek Government's draft Special Land Plan forTourism involves a major re-think of Greece's planning laws as they relate totourist infrastructure. In essence it should have a positive impact on the CavoSidero Project. For the first time a structured approach will be provided forthe development of Greek tourism, raising substantially the quality of newinstallations, recognising that market demands have broadened over the years toinclude more facilities and elements, including holiday homes, and that certainareas will become important hubs in the future (for example Sitia airport)requiring new associated infrastructure. All of these aspects are relevant toCavo Sidero and, in particular, the Plan is expected to lead to thesimplification of the current legal complexities for holiday home owners. I would like to make special mention of the Partnership Agreement signed withForum for the Future. Forum for the Future was founded in 1996 by a small groupof specialists in the field of sustainable development, including JonathonPorritt CBE, with whose team we are working closely. It has become aninternational leader in the field of sustainability, fulfilling its missionstatement; "To find practical ways private and public organisations can delivera sustainable future". The partnership has led to a substantial strengthening ofall sustainability aspects of the Project, particularly in the fields ofreducing its carbon footprint, refining the strategy for maximising the use ofrenewable energy, furthering the socio-economic and cultural involvement of thelocal community and future-proofing the resort. Chairman's Statement (continued) Forum for the Future is helping the Board to achieve one of its primaryobjectives - the creation, at Cavo Sidero, of the first major sustainabletourist development in Europe. Commercial The Hotel Management Agreement signed with Kempinski Hotels is in respect of thehotel to be built at Grandes Bay. Kempinski is Europe's oldest hotel managementgroup and is synonymous with distinctive luxury. Each hotel or resort in theKempinski stable is unique with its own character and charm, celebrating thecultural traditions of its location. Grandes Bay will be part of that proud andsuccessful tradition. Sitia International Airport Sitia airport, just 25 minutes away from the resort, has been certified as aninternational airport by the Greek Civil Aviation Authority and is currentlyoperational on a limited basis. Construction of a new terminal building hascommenced and this will be completed by the time Cavo Sidero becomesoperational. Management Team You will be aware that as part of the move to AIM it was decided to reduce thesize of the Minoan Board. As a result, Bill Cole and Tony Marshall have nowstepped down. Bill Cole remains Group Company Secretary and a director of allMinoan's subsidiaries whilst Tony Marshall has retired. I would like to repeat the Board's appreciation of all Tony's efforts over themany years he has been involved with the Group. He leaves with our very bestwishes for the future. Financial Results At 31 March 2007 the book value of the Cavo Sidero Project was £27,807,246(2006: £24,811,462). The nature of the Company's business means that certainexpenses, although attributable to the Project in overall terms, have to bewritten off as incurred. These costs give rise to a loss for the year ended 31March 2007 of £1,068,312 (2006: £904,350), which is in line with the Board'sexpectations. The loss per share was 2.80p (2006: 3.20p). Conclusion My fellow directors and I are delighted to be able to report on a year in whichso much has been achieved. We are now looking forward to the first phase of theconstruction process and the announcement of further hotel and otherpartnerships. We are confident that shareholders will benefit from theincreasing value of the Company as the Cavo Sidero development progresses. Christopher W EgletonChairman10 July 2007 Consolidated Profit and Loss AccountYear ended 31 March 2007 Year ended Year ended 31 March 2007 31 March 2006 GBP GBP Turnover - - Amortisation of goodwill (265,000) (265,000)Other administrative expenses (867,826) (597,738)Share option credit/(charges) 45,837 (42,647)Operating loss (1,086,989) (905,385) Interest receivable and similar income 19,018 1,285Interest payable and similar charges (341) (250) 18,677 1,035 Loss on ordinary activities before taxation (1,068,312) (904,350)Tax on loss on ordinary activities - -Retained loss on ordinary activities after taxation for theyear (1,068,312) (904,350)Retained loss brought forward (5,822,132) (4,917,782)Retained loss carried forward (6,890,444) (5,822,132) Loss per share (see Note) (2.80p) (3.20p) Reconciliation of movements in shareholders' funds 2007 2006 GBP GBP Loss for the year (1,068,312) (904,350)Reserve movement in relation to share options (378,191) 230,100New share capital subscribed 8,339,705 6,335,963Net addition to shareholders' funds 6,893,202 5,661,713Opening shareholders' funds 25,426,020 19,764,307 Closing shareholders' funds 32,319,222 25,426,020 Note: Earnings per share are calculated by dividing the earnings attributable toordinary shareholders by the weighted average number of ordinary shares in issueduring the year. Diluted earnings per share are calculated by adjusting basicearnings per share to assume the conversion of all dilutive potential ordinaryshares. In the case of losses however, these shares are antidilutive and as suchthey are ignored in calculating diluted loss per share. Therefore the basic lossper share and diluted loss per share are the same. The weighted average numberof shares used in calculating basic and diluted loss per share for the yearended 31 March 2007 was 38,093,737 (2006: 28,238,962). Consolidated Balance Sheet as at 31 March 2007 2007 2006 GBP GBPFixed assetsTangible assets 151,291 148,561Intangible assets 3,307,776 3,572,776Investments - - 3,459,067 3,721,337Current assetsWork in progress 27,807,246 24,811,462Debtors 319,876 196,714Cash at bank and in hand 3,811,117 419,499 31,938,239 25,427,675 Creditors: amounts falling due within one year (3,078,084) (3,722,992) Net current assets 28,860,155 21,704,683 Total assets less current liabilities 32,319,222 25,426,020 Capital and reservesCalled up share capital 11,937,653 9,215,980Share premium account 17,794,904 12,176,872Merger reserve account 9,348,724 9,348,724Profit and loss account (6,762,059) (5,315,556) Total equity shareholders' funds 32,319,222 25,426,020 These financial statements were approved by the Board of Directors on 10 July2007. Signed on behalf of the Board of Directors C W Egleton Director Consolidated Cash Flow StatementYear ended 31 March 2007 Year ended Year ended 31 March 2007 31 March 2006 GBP GBP Net cash (outflow)/inflow from operating (3,894,793) 523,078activities Returns on investments and servicing of financeInterest received 19,018 1,285Interest paid (341) (250) Net cash inflow for returns on investments and servicing of finance 18,677 1,035 Capital expenditure and financial investmentPurchase of tangible fixed assets (14,286) (89,182) Net cash outflow for capital expenditureand financial investment (14,286) (89,182) FinancingDecrease in loans (net of loans repaid through issue of shares) (250,000) (65,000)Issue of ordinary share capital - Minoan Group Plc 7,532,020 37,500 Net cash inflow/(outflow) from financing 7,282,020 (27,500) Increase in cash 3,391,618 407,431 The financial information set out in this Preliminary Results Announcement,which has been extracted from the audited Report and Financial Statements, doesnot constitute the Company's statutory accounts for the year ended 31 March2007. The report of the auditors on the Report and Financial Statements for the yearended 31 March 2007 was unqualified. Minoan Group Plc's audited Report and Financial Statements for the year ended 31March 2007 were approved by the Directors on 10 July 2007 and can be viewed onthe Company's website, www.minoangroup.com, with effect from 12 July 2007. For further information contact: Christopher Egleton Minoan Group Plc 07808 722022Bill Cole Minoan Group Plc 01689 897397Geoff Nash J M Finn & Co 020 7600 1658Alan Frame Westport Communications Ltd 020 7404 7878 This information is provided by RNS The company news service from the London Stock Exchange