MOGP.L Regulatory News (MOGP)

Mountfield Group plc

Peter Jay, Executive Chairman

Graham Read, Chief Executive Officer www.mountfieldgroupplc.com

Tel: +44 (0) 20 7398 7718

Arbuthnot Securities Limited

Tom Griffiths

Ed Gay

Tel: +44 (0) 20 7012 2000

Media enquiries:

Hudson Sandler

Nathan Field

nfield@hudsonsandler.com www.hudsonsandler.com

Tel: +44 (0) 20 7796 4133

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2009

2009

2008

£

£

Revenue

3

10,327,407

17,444,169

Cost of sales

(9,915,477)

(14,689,825)

Gross profit

411,930

2,754,344

Administrative expenses

4

(2,175,176)

(1,453,980)

Negative goodwill

-

126,308

Share based payments

12

(241,665)

(52,357)

Loans written off

(267,777)

-

Operating (loss)/profit

(2,272,688)

1,374,315

Net finance costs

4

(160,674)

(13,838)

(Loss)/profit before income tax

(2,433,362)

1,360,477

Income tax credit/(expense)

5

596,011

(187,610)

Total comprehensive (loss)/income for the year

(1,837,351)

1,172,867

(Loss)/earnings per share

 - basic (p)

6

(1.08)

1.55

 - diluted (p)

6

(1.08)

1.54

All amounts relate to continuing operations.

As permitted by Section 408 of the Companies Act 2006, no separate Statement of Comprehensive Income is presented in respect of Mountfield Group Plc. Its loss for the year ended 31 December 2009 was £856,666 (2008 - £192,494).

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2009

2009

2008

Notes

£

£

ASSETS

Non-current assets

Intangible assets

7

15,816,529

15,816,529

Property, plant and equipment

8

188,828

193,349

Deferred income tax assets

15

425,040

-

16,430,397

16,009,878

Current assets

Inventories

9

125,924

135,480

Trade and other receivables

10

3,366,770

4,328,004

Cash and cash equivalents

11

699,865

2,178,667

4,192,559

6,642,151

TOTAL ASSETS

20,622,956

22,652,029

EQUITY AND LIABILITIES

Share capital and reserves

Issued share capital

12

171,311

169,558

Share premium

492,074

318,500

Share based payments reserve

294,022

52,357

Merger reserve

12,951,180

12,951,180

Reverse acquisition reserve

(2,856,756)

(2,856,756)

Retained earnings

(487,442)

1,349,909

TOTAL EQUITY

10,564,389

11,984,748

Current liabilities

Trade and other payables

13

3,985,842

4,317,056

Short-term borrowings

14

690,175

170,325

Finance lease liabilities

14

18,845

6,920

Income tax

38,031

731,630

4,732,893

5,225,931

Non-current liabilities

Loan notes

14

5,306,318

5,419,737

Finance lease liabilities

14

19,356

10,079

Provision for deferred taxation

15

-

11,534

TOTAL LIABILITIES

10,058,567

10,667,281

TOTAL EQUITY AND LIABILITIES

20,622,956

22,652,029

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2009

2009

2008

Notes

£

£

Cash flows from operating activities

Operating (loss)/profit

(2,272,688)

1,374,315

Adjusted for:

Depreciation

54,933

18,776

Loss on disposal of fixed asset

138

-

Loans written off

267,777

-

Share based payment

241,665

52,357

Negative goodwill

-

(126,308)

Decrease in inventories

9,556

243

Decrease in receivables

827,277

1,107,589

Decrease in payables

(474,577)

(1,068,193)

Cash (used in)/generated by operating activities

(1,345,919)

1,358,779

Finance costs

(17,650)

(8,106)

Finance income

339

40,679

Taxation paid

(667,983)

(99,969)

Net cash (outflow)/inflow from operating activities

(2,031,213)

1,291,383

Cash flows from investing activities

Purchase of equipment

(21,904)

(8,671)

Costs of acquisition

-

(783,817)

Cash acquired on acquisition

-

1,653,603

Net cash (outflow)/inflow from investing activities

(21,904)

861,115

Cash flows from financing activities

Proceeds from issue of shares

175,327

-

Finance lease rentals

(7,443)

(6,920)

Repayment of non-convertible loan notes

(113,419)

(80,263)

Repayment of loans

-

(60,467)

Net cash flows from financing activities

54,465

(147,650)

Net (decrease)/increase in cash and cash equivalents

(1,998,652)

2,004,848

Cash and cash equivalents brought forward

2,008,342

3,494

Cash and cash equivalents carried forward

11

9,690

2,008,342

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2009

Share capital

Share premium

Share based payments reserves

Merger reserve

Reverse acquisition reserve

Retained earnings

Total

£

£

£

£

£

£

£

At 1 January 2008

100

-

-

-

-

177,042

177,142

Shares issued in the period for cash

32,238

-

-

-

-

-

32,238

Shares issued on conversion of loan notes

6,500

318,500

-

-

-

-

325,000

Shares issued on acquisition

130,820

-

-

12,951,180

-

-

13,082,000

Reverse acquisition

(100)

-

-

-

(2,856,756)

-

(2,856,856)

Share based payments

-

-

52,357

-

-

-

52,357

Total comprehensive income

-

-

-

-

-

1,172,867

1,172,867

At 31 December 2008

169,558

318,500

52,357

12,951,180

(2,856,756)

1,349,909

11,984,748

Shares issued in period to settle creditor

1,753

173,574

-

-

-

-

175,327

Share based payments

-

-

241,665

-

-

-

241,665

Total comprehensive income

-

-

-

-

-

(1,837,351)

(1,837,351)

At 31 December 2009

171,311

492,074

294,022

12,951,180

(2,856,756)

(487,442)

10,564,389

The merger reserve exists as a result of the acquisitions of Mountfield Building Group Limited, MBG Construction Limited, Connaught Access Flooring Holdings Limited and Mountfield Land Limited. The merger reserve represents the difference between the nominal value of the share capital issued by the Company and the fair value of those shares at the date of acquisition.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2009

1

Accounting policies

1.1

General information

Mountfield Group plc is a company incorporated in England and Wales. The registered number of the Company is 06374598. The address of its registered office is 3C Sopwith Crescent, Wickford Business Park, Wickford, Essex SS11 8YU.

1.2

IFRS compliance and adoption

Statement of compliance with IFRS

These financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRSs), IFRIC Interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The adoption of these standards has not resulted in any changes to the Group's accounting policies and has not affected amounts reported in prior years.

The financial statements have been prepared under the historical cost convention and a summary of the more important accounting policies is set out below.

Sources of estimation uncertainty

The preparation of financial statements under IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Estimates and assumptions are reviewed on an ongoing basis and any revision to estimates or assumptions are recognised in the period in which they are revised and in future periods affected.

Significant judgements

Areas comprising critical judgement that may significantly impact earnings and financial position are:

Goodwill

Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which the goodwill has been allocated. The value in use calculation requires the Company to estimate future cashflows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. The carrying amount of goodwill at the balance sheet date was £15.8 million. Details regarding the goodwill carrying value and assumptions used in carrying out the impairment reviews are provided in note 7.

Receivables

The Group reviews the net recoverable value of its accounts receivables on a periodic basis to provide assurance that recorded accounts receivables are stated net of any required provision for impairment. Factors that could impact recoverability include the financial propriety of customers and related economic trends. Changes in these factors that differ from managements estimates can result in an adjustment to the carrying value and amounts charged to income in specific periods. More details on gross balances and provisions made are included in note 10.

Accounting for construction contracts

In accordance with IAS 11 "Construction Contracts", management is required to estimate total expected contract costs and the percentage of contract completion in determining the appropriate revenue and profit to recognise in the period. The Group uses the work of expert professional Chartered Surveyors to determine accurately the level of work that has been completed by the year-end. The Group also has appropriate control procedures to ensure that all estimates are determined on a consistent basis and are subject to appropriate review and authorisation.

Deferred taxation

The Group provides for deferred taxation using the liability method. Deferred tax assets are recognised in respect of tax losses where the Directors believe that it is probable that future profits will be relieved by the benefit of tax losses brought forward. The Board considers the likely utilisation of such losses by reviewing budgets and medium term plans for each taxable entity within the Group. If the actual profits earned by the Group's taxable entities differ from the budgets and forecasts used then the value of such deferred tax assets may differ from that shown in these financial statements.

Presentation and functional currency

The financial statements are presented in pounds sterling, which is the Group's functional currency.

1.3

Adoption of pronouncements by the IASB and IFRIC

New and amended IFRSs and interpretations applied by the Group

The following new standards and amendments to standards are mandatory for the first time for the

financial year beginning 1 January 2009.

International Accounting Standards (IAS/IFRSs)

IFRS 8

Operating Segments

IAS 1 (revised)

Presentation of Financial Statements

IAS 16 (revised)

Property, Plant and Equipment

IAS 19 (revised)

Employee Benefits

IAS 32 (revised)

Financial Instruments: Presentation

IAS 36 (revised)

Impairment of Assets

IAS 39 (revised)

Financial Instruments: Recognition and Measurement

International Financial Reporting Interpretations Committee (IFRIC)

IFRIC 15

Agreements for the Construction of Real Estate

New and amended IFRSs and interpretations not applied by the Group

A number of new standards and interpretations have been issued by the International Accounting Standards Board and International Financial Reporting Interpretations Committees with effective dates after the date of this financial information. Those that are relevant to the Group are as follows: 

International Accounting Standards (IAS/IFRSs)

Effective Date

IFRS 2 (amended)

Group cash-settled share-based payment transactions

1 January 2010

IFRS 3 (revised)

Business combinations

1 July 2009

IFRS 8 (revised)

Operating Segments

1 January 2010

IFRS 9

Financial Instruments - Classification and Measurement

1 January 2013

IAS 1 (revised)

Presentation of Financial Statements

1 January 2010

IAS 7 (revised)

Statement of Cash Flows

1 January 2010

IAS 17 (revised)

Leases

1 January 2010

IAS 24 (revised)

Related Party Disclosures

1 January 2011

IAS 32 (revised)

Financial Instruments: Presentation

1 February 2010

IAS 36 (revised)

Impairment of Assets

1 January 2010

IAS 39 (revised)

Financial Instruments: Recognition and Measurement

1 January 2010

IFRIC 17

Distribution of non-cash assets to owners

1 July 2009

IFRIC 18

Transfers of assets from customers

1 July 2009

IFRIC 19

Extinguishing financial liabilities with equity instruments

1 July 2010

The Directors do not anticipate that the adoption of these standards and interpretations in future periods will have a material impact on the Group's financial statements in the period of initial application. The company will apply relevant new standards from their effective date subject to endorsement by the European Union.

1.4

Basis of consolidation

Subsidiaries

The Group financial statements consolidate the financial statements of the Company and all its subsidiaries. Subsidiaries include all entities over which the Group has the power to govern financial and operating policies. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are consolidated from the date on which control commences until the date that control ceases. Intra-group transactions are eliminated in preparing the Consolidated Financial Statements.

A list of the significant investments in subsidiaries, including the name, country of incorporation and proportion of ownership interest is given in note 2 to the Company's separate financial statements.

Business combinations and goodwill

On 16 October 2008, Mountfield Group plc ("the Company") acquired the entire issued share capital of Mountfield Building Group Limited, which has one wholly owned subsidiary, MBG Construction Limited (the "MBG Group") acquired in August 2008. The consideration of £7,622,000 was satisfied by the issue of 51,220,000 Ordinary Shares of 0.1p each at a price of 10p per share and by the issue of £2,500,000 unsecured non-convertible loan notes.

As a result of these transactions, the former shareholders of MBG Group became the majority shareholders in the Company. Accordingly, the substance of the transaction was that MBG Group acquired the Company in a reverse acquisition.

Under IFRS 3 'Business Combinations', the acquisition of MBG Group has been accounted for as a reverse acquisition. As a consequence of applying reverse acquisition accounting, the comparative figures for the period ended 31 December 2008 comprise those of Mountfield Building Group Limited plus those of the other acquired entities from 16 October 2008.

The acquisitions of Connaught Access Flooring Limited, MBG Construction Limited and Mountfield Land Limited are accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree plus any costs directly attributable to the business combination.

Goodwill

Goodwill on acquisition of subsidiaries represents the excess of the cost of acquisition over the fair value of the Group's share of the net identifiable assets and contingent liabilities acquired. Identifiable assets are those which can be sold separately or which arise from legal rights regardless of whether those rights are separable. Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill is not amortised but tested annually for impairment or when trigger events occur, and is carried at cost less accumulated impairment losses.

1.5

Revenue recognition

Revenue is stated exclusive of VAT and consists of sales of services to third parties.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Retentions are recognised throughout the life of a contract and are deducted from the sales invoice.

Revenue relating to contracts includes the amount initially agreed in the contract plus any variations in contract work and incentive payments to the extent that it is probable they will result in revenue and can be reliably measured. As soon as the outcome of the contract can be measured reliably, revenue and expense is recognised in the statement of comprehensive income on a stage of completion basis. The stage of completion is determined by reference to a survey of work performed. Any losses are recognised immediately in the statement of comprehensive income as soon as they are foreseen.

1.6

Contract work in progress

Revenue from fixed price construction contracts is recognised on the percentage of completion method, measured by reference to the percentage of contract costs incurred for work performed to date to the estimated total contract costs or the proportion of the value of work done to the total value of work under the contract, except where these would not be representative of the stage of completion. Full provision is made for all known or expected losses on individual contracts immediately once such losses are foreseen.

1.7

Amounts recoverable on long term contracts

Profit on long term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.

Amounts which are recoverable on long-term contracts are shown within debtors under the heading 'Amounts Recoverable on Contracts' which have not yet been invoiced and are stated net of discounts allowed.

1.8

Share-based payments

The Group makes equity-settled share-based payments to its employees and directors. The fair value of options and warrants granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options. The fair value of the options and warrants granted is measured based on the Black-Scholes framework, taking into account the terms and conditions upon which the instruments were granted. At each balance sheet date, the Company revises its estimate of the number of options and warrants that are expected to become exercisable.

1.9

Retirement benefits: Defined contribution schemes

Contributions to defined contribution pension schemes are charged to the statement of comprehensive income in the year to which they relate.

1.10

Impairment

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. Assets that have an indefinite useful life, for example goodwill, are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation or depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

1.11

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation.

Property, plant and equipment is depreciated over the estimated useful life of the asset, as follows:

Freehold land

Not depreciated

Freehold buildings

2% per annum straight line

Leasehold improvements

Over the period of the lease

Fixtures, fittings and equipment

10% per annum reducing balance

Plant and equipment

20% - 25% per annum straight line

Motor vehicles

20% - 25% per annum straight line

1.12

Leasing

A lease is classified as a finance lease if it transfers substantially all the risks and rewards of ownership. All other leases are classified as operating leases. Classification is made at the inception of the lease.

Assets obtained under finance leases are capitalised as property, plant and equipment and depreciated over the shorter of the lease term and their useful lives. Obligations under such arrangements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.

Rentals paid under operating leases are charged to the statement of comprehensive income as incurred on a straight line basis over the lease term.

1.13

Inventories

Inventories are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving items. Cost includes direct materials, direct labour and those overheads that have been incurred in bringing the inventory to its present location and condition.

1.14

Financial Instruments

Financial assets and financial liabilities are recognised on the consolidated statement of financial position when it becomes a party to the contractual provisions of the instrument.

The financial instruments, excludes current receivables and payables, comprise cash or overdraft and unsecured non-convertible loan notes. The directors consider the fair value not to be materially different to the carrying value for the financial instruments. During the years under review, the Group did not enter into derivative transactions and did not undertake trading in any financial instruments.

1.15

Contingent deferred consideration payments

Contingent deferred consideration payments are not included in the cost of acquisition at the time of initially accounting for the investment where the deferred consideration payment is not probable or cannot be measured reliably. If the contingent consideration subsequently becomes probable and can be measured reliably, the additional consideration is treated as an adjustment to the cost of the initial investment.

1.16

Trade and other receivables

Trade receivables are recognised at fair value less any provision for impairment. A provision for impairment is made when collection of the full amount is no longer probable. Bad debts are written off when identified. The fair value of trade and other receivables are equivalent to their book values as set out in the financial information.

1.17

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand, demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents net of outstanding bank overdrafts.

1.18

Financial liabilities and equity

Financial liabilities and equity instruments issued by the Group are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.

1.19

Share capital

The Company has one class of ordinary share, which carries no rights to fixed income. All ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All shares rank equally with regard to the Company's residual assets.

Ordinary shares issued by the Company are classified as equity and recorded at fair value on initial recognition received, net of direct issue costs.

1.20

Trade and other payables

Trade payables are initially recognised at fair value and subsequently at amortised cost. The fair value of the trade and other payables are equivalent to their book values as set out in the financial information.

1.21

Income tax expense

The taxation charge represents the sum of current tax and deferred tax.

The current tax charge is based on the taxable loss/profit for the period using the tax rates that have been enacted or substantially enacted by the balance sheet date. Taxable profit differs from the net profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.

1.22

Deferred taxation

Deferred tax is provided using the liability method, in respect of temporary differences between the carrying amount of the assets and liabilities and their tax base. Deferred tax is recognised in the statement of comprehensive income, except when the tax relates to items charged or credited directly in equity, in which case the tax is also recognised in equity.

Deferred tax assets are recognised only when it can be regarded as probable that there will be suitable taxable profits in the foreseeable future against which the deductible temporary difference can be utilised. Deferred tax is determined using tax rates that are expected to apply in the periods in which the asset is realised or liability settled, based on tax rates and laws that have been enacted or substantially enacted by the balance sheet date.

2009

2008

Segmental revenue

PBT

Segmental revenue

PBT

£'000

£'000

£'000

£'000

Construction and fit-out

10,324

(1,338)

17,558

1,578

Land sourcing

-

(109)

-

(58)

10,324

(1,447)

17,558

1,520

Inter-segmental revenue and unallocated costs

3

(986)

(114)

(160)

10,327

(2,433)

17,444

1,360

 2009

2008

Segmental assets

Segment liabilities

Segmental assets

Segment liabilities

£'000

£'000

£'000

£'000

Construction and fit-out

4,622

4,312

7,842

4,529

Land sourcing

37

10

1

11

4,659

4,322

7,843

4,540

Unallocated assets and liabilities

15,964

5,737

14,809

6,127

20,623

10,059

22,652

10,667

3

Construction contracts

2009

2008

£

£

Contract revenue recognised in relation to construction contracts in the year and retentions

10,327,407

17,444,169

For contracts in progress at the balance sheet date:

Aggregate costs incurred to date

8,096,462

16,428,968

Recognised profits to date

2,124,722

4,209,105

Retentions due

229,252

200,310

4

Other income and expenses

2009

2008

£

£

Net finance costs:

Finance expenses

Other loan interest

(143,363)

(54,002)

Interest on finance leases

(571)

(515)

Bank interest

(17,079)

-

Interest paid

(161,013)

(54,517)

Finance income

Bank interest received

339

40,679

(160,674)

(13,838)

Administrative expenses include:

Depreciation of property, plant and equipment:

- owned by the Group

49,209

11,414

- held under finance leases

5,724

7,362

- operating lease rentals - other

84,463

27,846

Auditors' remuneration

40,000

30,000

Auditor remuneration

During the year the Group obtained the following services from the company's auditor:

2009

2008

£

£

Fees payable to the company's auditor for the audit of the parent company, consolidated accounts and the subsidiaries

40,000

30,000

Average number of employees

No.

No.

The average number of employees (including executive Directors) was

76

85

The split of employees is as follows:

No.

No.

Administration

19

15

Cost of sales

45

57

Management

12

13

76

85

4

Other income and expenses (continued)

2009

2008

£

£

Wages and salaries

2,601,249

2,598,090

Social security costs

268,973

257,718

Post employment benefits

53,100

53,100

2,923,322

2,908,908

Key management personnel compensation

Short-term employee benefits

305,013

270,461

Post-employment benefits

53,100

53,100

358,113

323,561

Directors remuneration

2009

2008

Salaries and

 fees paid

 or receivable

Pension contributions

Total

Total

£

£

£

£

G Read

82,833

53,100

135,933

256,103

A Collins

155,932

-

155,932

50,000

R Patel

24,000

-

24,000

6,000

J Hanley

6,250

-

6,250

2,083

P Jay

34,375

-

34,375

9,375

303,390

53,100

356,490

323,561

The remuneration as disclosed for G Read includes £Nil (2008: £37,503) of salaries and £17,400 (2008: £17,400) of pension contributions paid to his wife, J Read.

5

Income tax

2009

2008

£

£

Current tax

Current tax on income for the period

(159,437)

195,721

Deferred tax

Deferred tax credit

(436,574)

(8,111)

Income tax (credit)/expense

(596,011)

187,610

Income tax is calculated at 28.0% (2008 - 28.5%) of the estimated assessable (loss)/profit for the year. The differences are reconciled overleaf:

Factors affecting the tax charge

2009

2008

£

£

(Loss)/profit before income tax

(2,433,362)

1,360,477

(Loss)/profit before income tax multiplied by standard rate of UK Corporation Tax of 28.0% (2008: 28.5%)

(681,341)

387,736

Effects of:

Expenditure not allowable for tax purposes

28,532

137,874

Depreciation for period in excess of capital allowances

9,347

(4,140)

Tax losses utilised and carried forward

483,112

(302,640)

Negative goodwill

-

(35,998)

Other adjustments

913

12,889

Current tax charge

(159,437)

195,721

6

Earnings per share

The basic earnings per share is calculated by dividing the earnings attributable to equity shareholders by the weighted average number of shares in issue. In calculating the diluted earnings per share, share warrants outstanding have been taken into account where the impact of these is dilutive.

The weighted average number of shares in the period were:

2009

2008

Number

Number

Basic Ordinary Shares of 0.1p each

170,879,375

75,611,034

Dilutive Ordinary Shares from warrants

-

736,776

Total diluted

170,879,375

76,347,810

In the year ended 31 December 2009, the conditions attached to the warrants were not met and as such there is no dilutive effect on the average weighted number of ordinary shares or the diluted earnings per share.

The comparative number of shares for 2008 reflects the shares in issue had Mountfield Building Group Limited been acquired by Mountfield Group Plc on 1 January 2008.

2009

2008

Earnings attributable to equity share holders of the parent

Basic (loss)/earnings per share (p)

(1.08)

1.55

Diluted (loss)/earnings per share (p)

(1.08)

1.54

7

Intangible assets

Goodwill

£

Cost

At 1 January 2008

-

Additions

15,816,529

At 31 December 2008

15,816,529

Additions