PXOG.L Regulatory News (PXOG)

CHAIRMAN'S REPORT

All of the turnover for the year to 31 January 2010 occurred in the last six months which was sufficient to turn the year as a whole into profitability.

The operating profit of £44,944 (2009 - loss: £6,492) was achieved on a turnover of £49,632 (2008 - £100,179).

The improvement in the second half of the year has continued into the current financial year. Trading has remained brisk, and hopefully will continue to grow during the summer transfer window.

Regretfully, as announced, the transaction with Trading Sports Limited did not finalise, so I am continuing to look on two fronts. Either to find a suitable reverse or to bolt on suitable complementary businesses or personnel.

Our advisors continue to be helpful and supportive as does Gerry Desler, all of whose efforts are not always fully reflected in their rewards.

Barry Gold

Chairman

6 July 2010

INCOME STATEMENT

FOR THE YEAR ENDED 31 JANUARY 2010

2010

2009

£

£

Revenue

49,632 

100,179 

Cost of sales

(13,500)

(46,582)

───────

───────

Gross profit

36,132 

53,597 

Administrative expenses

8,812 

(60,089)

───────

───────

Operating profit/(loss)

44,944 

(6,492)

Finance income

1 

210 

───────

───────

Profit/(loss) before income taxation

44,945 

(6,282)

Income tax expense

- 

(98)

───────

───────

Profit/(loss) for the year attributable to shareholders

44,945 

(6,380)

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Earnings/(loss) per share

Pence

Pence

Basic and diluted earnings/(loss) per share

0.04

(0.01)

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All amounts relate to continuing operations.

BALANCE SHEET

AS AT 31 JANUARY 2010

2010

2009

£

£

ASSETS

Current assets

Trade and other receivables

126,216 

47,881 

Cash and cash equivalents

2,037 

25,272 

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─────────

Total assets

128,253 

73,153 

─────────

─────────

LIABILITIES

Current liabilities

Trade and other payables

(75,407)

(58,222)

Borrowings

(140,000)

(140,000)

─────────

─────────

(215,407)

(198,222)

Non current liabilities

Borrowings

(1,487,001)

(1,499,501)

─────────

─────────

Total liabilities

(1,706,408)

(1,697,723)

─────────

─────────

Net liabilities

(1,574,155)

(1,624,570)

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EQUITY

Share capital

1,047,180 

1,047,180 

Share premium account

2,649,906 

2,649,906 

Other reserves

43,333 

43,333 

Profit and loss account

(5,314,574)

(5,364,989)

─────────

─────────

Total shareholders' equity

(1,574,155)

(1,624,570)

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═════════

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 JANUARY 2010

Share capital

Share premium

Retained earnings

Capital redemption reserve

Total

£

£

£

£

£

Balance at 1 February 2008

1,027,180

2,659,906

(5,362,046)

43,333

(1,631,627)

Loss for the financial year

-

-

(6,380)

-

(6,380)

Conversion of loan stock into ordinary shares

20,000

(10,000)

-

-

10,000

Equity-settled share-based payments

-

-

3,437

-

3,437

────────

────────

────────

────────

────────

Balance at 31 January 2009

1,047,180 

2,649,906 

(5,364,989)

43,333 

(1,624,570)

────────

────────

────────

────────

────────

Profit for the financial year

- 

- 

44,945 

- 

44,945 

────────

────────

────────

────────

────────

Total recognised income and expense

- 

- 

44,945 

- 

44,945 

Equity-settled share-based payments

- 

- 

5,470 

- 

5,470 

────────

────────

────────

────────

────────

Balance at 31 January 2010

1,047,180 

2,649,906 

(5,314,574)

43,333 

(1,574,155)

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CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 JANUARY 2010

2010

2009

£

£

£

£

Cash flows from operating activities

Operating loss

44,944 

(6,492)

(Increase)/decrease in trade and other receivables

(78,335)

103,684 

Increase/(decrease) in trade and other payables

17,185 

(94,769)

Equity-settled share based payments and employee benefits

5,470 

3,437 

Taxes paid

- 

(98)

───────

───────

Net cash (used in)/generated from operating activities

(10,736)

5,762 

Investing activities

Finance income

1 

210 

───────

───────

Net cash generated from investing activities

1 

210 

Financing activities

Repayment of debenture loans

(12,500)

(12,500)

───────

───────

Net cash used in financing activities

(12,500)

(12,500)

───────

───────

Net (decrease)/increase in cash and cash equivalents

(23,235)

(6,528)

Cash and cash equivalents at beginning of the year

25,272 

31,800 

───────

───────

Cash and cash equivalents at end of the year

2,037 

25,272 

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1

Basis of preparation

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

2

Going concern

At the balance sheet date, the company has a deficit on its profit and loss account amounting to £5,314,574 and it has net liabilities of £1,574,155. The nature of the company's business is such that there can be considerable unpredictable variation in the timing of cash inflows. The directors have prepared projected cash flow information for the period ending 12 months from the date of their approval of these financial statements. On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis. The financial statements do not include any adjustments that would result should the company no longer be a going concern.

3

Group accounts

The financial statements present information about the company as an individual undertaking and not about its group. The company's subsidiary undertaking was dormant throughout the year. The company has therefore taken advantage of the exemptions provided by Section 405 of the Companies Act 2006 not to prepare group financial statements on the basis that the results and net assets of the subsidiary undertaking are not material for the purposes of the company's financial statements giving a true and fair view. Details of the subsidiary undertaking is disclosed in note 7.

4

Sources of estimation uncertainty

The preparation of the financial information in conformity with IFRS requires the use of certain critical accounting estimates that affect the reported amounts of assets and liabilities at the date of the financial information and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management's best knowledge of the amounts, events or actions, actual results ultimately may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

Material estimates and assumptions are made in particular with regard to:

- the carrying value of investments;

- the likelihood that tax assets would be realised; and

- the valuation of equity-settled share-based payments.

5

Statutory accounts

The preliminary financial statement has been prepared on the basis of the Group's normal accounting policies but does not constitute statutory accounts. The Group's Annual Report and Accounts for the year ended 31 January 2010 have been published and have been placed on the Company's website www.premiermgt.info .