Minoan Regulatory News (MIN)

20 Dec 2007 07:00

Minoan Group PLC20 December 2007 Interim Financial Statements Minoan Group Plc ("Minoan or "the Company"), the AIM-quoted leisure resortdeveloper, presents its unaudited interim financial statements for the half-yearended 30 September 2007 Chairman's Statement Cavo Sidero Update I am pleased to report that we are continuing to work towards development of theCavo Sidero Project. To this end Minoan has recently announced the winners ofthe Company's architectural competition for the design of 'Grandes Bay' - CavoSidero's first tourism village. Competition submissions were reviewed by a committee comprising independentmembers and company executives. The submissions were all of the highest calibreand the committee has nominated two practices as joint winners, recognising thateach has much expertise to offer the Project, albeit in different, butcomplementary, fields. The first is that of Alexandros Tombazis, one of the most prominent members ofthe Greek architectural community whose practice is famous for the quality andpioneering character of its designs. Its work has been acknowledged on manyoccasions both in Greece and abroad with prizes in 110 national andinternational competitions. As well as projects in Greece, Mr Tombazis' practicehas undertaken commissions in Cyprus, Portugal, the Netherlands, Bulgaria,Romania, Ukraine, Dubai and the Middle East. The Alexandros Tombazis practice has a reputation for its sustainable designsolutions and is a leading expert on bioclimatic design in Greece. It also hasexperience directly related to the Cavo Sidero Project having been involved in anumber of tourist projects in the area, including Candia Park Village in Creteand the Navarino Development in the Peloponnese. The second firm selected is Baldrich Tobal, a well established Spanish practicewith a particular expertise in tourist resorts, hotels, golf destinations andleisure homes. The practice has, until now, predominantly delivered leisureprojects within the mainstream Spanish market. Hotels include Las Dunas,Kempinski, Istan Valley, Marriott and Marbella del Este. Baldrich Tobal are experts in resort planning and have a deep understanding ofoperator requirements and the commercial factors required to achieve asuccessful resort, allied to a comprehensive understanding of how to deliversustainable solutions and good bioclimatic design. With construction planned to commence next year, Minoan also recently announcedan enhanced shareholder loyalty scheme. The scheme has been successful to datewith the Company receiving an encouraging number of enquiries. The enhancedscheme, which applies to both new and existing shareholders, provides improvedbenefits rewarding long term shareholders with substantial discounts on a rangeof properties. AppealAs previously announced, at the beginning of November Minoan was advised thatthe hearing of the appeal lodged against the Greek Government's approval of itsEnvironmental Impact Assessment has been postponed. The new date for the hearingbefore a Plenary Session of the Greek Council of State is 14 March 2008. ResultsThe unaudited interim results for the half-year ended 30 September 2007, whichinclude the costs associated with the Company's move to AIM on 2 May 2007, areset out below and are in line with the Board's expectations. This is the first period in which the International Financial ReportingStandards ("IFRS"), as adopted by the EU, have been applied. As a consequence,comparatives have been restated from UK GAAP to IFRS. The only adjustment topreviously reported numbers relates to the requirement under IFRS not toamortise goodwill and instead test it annually for impairment. All other changesarising from the transition to IFRS are presentational only (see Note 2). The Consolidated Unaudited Income Statement includes a charge in respect ofshare based payments as required under IFRS 2. This charge, which arises fromthe Company's recently adopted Long Term Incentive Plan, does not involve anycash payment (see Note 3). Christopher W Egleton Chairman20 December 2007 Unaudited Consolidated Income StatementHalf-year ended 30 September 2007 Half-year ended Half-year ended 30 Sept 2006 30 Sept 2007 GBP GBP Revenue - -Cost of sales - - ------------- ----------Gross profit - - Operatingexpenses (762,203) (204,408)Charge in respectof share basedpayments (seeNote 3) (334,145) - ------------- ----------Operating loss (1,096,348) (204,408) Finance income 65,824 770Finance costs - (11) ------------- ----------Loss beforetaxation (1,030,524) (203,649) Taxation expense - - ------------- ----------Loss forhalf-year (1,030,524) (203,649) ------------- ---------- Loss per share attributable tothe equity holders of theCompany (see Note 4) (2.11p) (0.57p) The notes on pages 7 and 8 form an integral part of this unaudited half-yearlyfinancial information. Unaudited Statement of Changes in Equity Half year ended 30 September 2006 Capital Other reserves Retained Total equity GBP GBP earnings GBP GBP Balance at 1April 2006 21,392,852 9,348,724 (5,315,556) 25,426,020Loss for thehalf year - - (203,649) (203,649) --------- --------- --------- ---------Total recognisedincome for thehalf year 30September 2006 21,392,852 9,348,724 (5,519,205) 25,222,371Proceeds fromshares issued 1,136,832 - - 1,136,832 --------- --------- --------- ---------Balance at 30September 2006 22,529,684 9,348,724 (5,519,205) 26,359,203 --------- --------- --------- --------- Half year ended 30 September 2007 Capital Other reserves Retained Total equity GBP GBP earnings GBP GBP Balance at 1April 2007 29,732,557 9,348,724 (6,497,059) 32,584,222Loss for thehalf year - - (1,030,524) (1,030,524) --------- --------- --------- ---------Total recognisedincome for thehalf year 30September 2007 29,732,557 9,348,724 (7,527,583) 31,553,698Proceeds fromshares issued 1,553,601 - - 1,553,601Charge inrespect of sharebased payments - - 334,145 334,145 --------- --------- --------- ---------Balance at 30September 2007 31,286,158 9,348,724 (7,193,438) 33,441,444 --------- --------- --------- --------- Unaudited Consolidated Balance Sheet as at 30 September 2007 30 31 March 30 September 2007 September 2007 2006 GBP GBP GBPAssetsNon-current assetsTangible assets 156,929 151,291 142,082Intangible assets 3,572,776 3,572,776 3,572,776 --------- --------- ----------Total non-current assets 3,729,705 3,724,067 3,714,858 --------- --------- ---------- Current assetsInventories 29,111,598 27,807,246 26,285,050Receivables 31,059 319,876 192,724Cash and cash equivalents 2,016,121 3,811,117 66,948 --------- --------- ----------Total current assets 31,158,778 31,938,239 26,544,722 --------- --------- ---------- --------- --------- ----------Total assets 34,888,483 35,662,306 30,259,580 --------- --------- ---------- EquityCapital and reserves attributable toequity holders of the CompanyShare capital 12,333,010 11,937,653 9,679,849Share premium account 18,953,148 17,794,904 12,849,835Merger reserve account 9,348,724 9,348,724 9,348,724Retained earnings (7,193,438) (6,497,059) (5,519,205) --------- --------- ----------Total equity 33,441,444 32,584,222 26,359,203 --------- --------- ---------- LiabilitiesNon-current liabilitiesBorrowings - - 250,000 --------- --------- ----------Total non-current liabilities - - 250,000 --------- --------- ---------- Current liabilitiesTrade and other payables 195,191 191,392 622,040Current taxation liabilities 29,215 54,563 64,378Provisions for other liabilities andcharges 1,222,633 2,832,129 2,963,959 --------- --------- ----------Total current liabilities 1,447,039 3,078,084 3,650,377 --------- --------- ---------- --------- --------- ----------Total liabilities 1,447,039 3,078,084 3,900,377 --------- --------- ---------- --------- --------- ----------Total equity and liabilities 34,888,483 35,662,306 30,259,580 --------- --------- ---------- Unaudited Consolidated Cash Flow StatementHalf-year ended 30 September 2007 Half-year ended Half-year ended 30 Sept 2007 30 Sept 2006 GBP GBP ----------- ----------- Cash flows from operating activities- continuing operations (1,854,644) (1,108,895) ----------- -----------Cash flowsfrom operatingactivities -net (1,854,644) (1,108,895) ----------- -----------Cash flows from investing activitiesPurchase oftangible fixedassets (9,197) (2,997)Exchange lossre tangiblefixed assets (3,542) - ----------- -----------Cash flowsfrom investingactivities (12,739) (2,997) ----------- ----------- Cash flows from financing activitiesFinance income 65,824 770Finance costs - (11)Issue of ordinaryshares -Minoan Group Plc 6,563 758,582 ----------- -----------Cash flowsfrom financingactivities - net 72,387 759,341 ----------- ----------- ----------- -----------Net decreasein cash and cashequivalents (1,794,996) (352,551) ----------- -----------Net decreasein cash and cashequivalents (1,794,996) (352,551)Cash and cashequivalents atstart of period 3,811,117 419,499 ----------- -----------Cash and cashequivalents atend of period 2,016,121 66,948 ----------- ----------- Notes to the unaudited interim resultsHalf-year ended 30 September 2007 1. General information The Company is a public limited company incorporated in the UK and quoted on theAlternative Investment Market of the London Stock Exchange. The company'sprincipal activity is the design, creation, development and management of itsluxury resort development at Cavo Sidero in North East Crete. 2. Basis of preparation The interim financial statements for the half-year ended 30 September 2007comprise a consolidated income statement, consolidated balance sheet,consolidated cash flow statement plus relevant notes. The interim financial statements are unaudited and do not constitute statutoryaccounts as defined in Section 240 of the Companies Act 1985. A copy of thefinancial statements for the year ended 31 March 2007 has been delivered to theRegistrar of Companies. The financial statements for the year ended 31 March2007 were approved by the Board on 10 July 2007. The interim financial statements have been prepared in accordance with theaccounting policies that will be applied when the Group prepares its first setof audited financial statements, as at 31 March 2008, in accordance withInternational Financial Reporting Standards ("IFRS") as adopted by the EU. The Group has chosen not to adopt IAS 34 "Interim Financial Statements" inpreparing its 2007 interim statements. This is the first period in which IFRS have been applied and comparatives havebeen restated from UK GAAP to comply with IFRS. The only adjustment topreviously reported numbers relates to the requirement under IFRS not toamortise goodwill and instead test it annually for impairment. All other changesarising from the transition to IFRS are presentational only. IFRS UK GAAPHalf-year ended 30 September 2006Loss for half-year (203,649) (336,149)Total assets 30,259,580 30,127,080 Half-year ended 30 September 2007Loss for half-year (1,030,524) (1,163,024)Total assets 34,888,483 34,490,983 3. Charge in respect of share based payments During the period the Group implemented a Long Term Incentive Plan ("LTIP") inwhich any director or employee selected by the remuneration committee mayparticipate. Awards under the LTIP have been granted on the basis that certainperformance conditions are met. A charge has been made for the value of the LTIP using the Black-Scholes orMonte Carlo pricing models as appropriate. This charge, shown as a charge inrespect of share based payments in the Unaudited Consolidated Income Statement,does not involve any cash payment. 4. Loss per share attributable to the equity holders of the Company Earnings per share are calculated by dividing the earnings attributable toequity holders by the weighted average number of ordinary shares in issue duringthe period. 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 half-yearended 30 September 2007 was 48,766,660 (2006: 35,968,677). Minoan Group Plc's unaudited interim financial statements for the half-yearended 30 September 2007 can be viewed on the Company's website,www.minoangroup.com, with effect from 21 December 2007. For further information contact:Christopher Egleton Minoan Group Plc 07808 722022Bill Cole Minoan Group Plc 01689 897397Jeremy Garrett-Cox/Nicola Marrin Seymour Pierce Limited 020 7107 8000Nick Rome/Nick Farmer Bishopsgate Communications Ltd 020 7562 3350Alan Frame Westport Communications Ltd 020 7404 7878 This information is provided by RNS The company news service from the London Stock Exchange