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3 Jun 2010 07:00
Viridas Plc
Preliminary results for the year ended 31 December 2009
Viridas plc (the "Company", "Viridas") is pleased to announce its preliminary results for the year ended 31 December 2009 and another year of progress in its continuing development of its 300,000 tonne biofuels project growing sustainable dedicated energy crops in Brazil for the production of bio-mass and bio-oil for the UK market.
·; Project based on the proven owner/operator plantation model.
·; Bio-oil "off take" agreement signed.
·; Bio-mass "off-take" agreement in negotiation.
·; Agreements could represent gross revenue potential of over US$1 Billion based on prevailing market prices, maximum volume and contract life.
Stanley Wootliff, Chairman of Viridas plc commented:
"Despite the current difficult economic conditions and the ongoing debates regarding bio-fuels there continues to be outstanding opportunities for companies growing sustainable dedicated energy crops, based on a sound business model. We will continue to successfully exploit those opportunities, together with our development and "off-take" partners, to deliver a profitable and dynamic business for the benefit of all our stakeholders."
A copy of the audited annual report for the year ended 31 December 2009 together with a notice of Annual General Meeting, to be held at 6 New Street Square, New Fetter Lane, London, EC4A 3BF at 11.00a.m. on 25th June 2010, will be posted to shareholders shortly and will also be available from the Group's website at www.viridasplc.com and from: The Secretary, Viridas P.L.C., 647 Roundhay Road, Leeds, West Yorkshire LS8 4BA.
For more information please contact:
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Viridas plc: |
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Stanley Wootliff, Executive Chairman |
+44 (0) 11 3235 0632 |
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Nominated Adviser: Arbuthnot Securities |
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Antonio Bossi / Andrew Fairclough / Paul Gillam |
+44 (0) 20 7012 2000 |
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Media Enquiries: Pelham Bell Pottinger |
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Chelsea Hayes / Klara Kaczmarek |
+44 (0) 20 7337 1523 |
CHAIRMAN'S STATEMENT
YEAR ENDED 31ST DECEMBER 2009
PRINCIPAL ACTIVITIES
During the year the Group has continued its work in Brazil and Europe developing its owner/operator plantation model for the growing of jatropha curcas ("jatropha") as a dedicated energy crop for the production of bio-fuels. The objective is to satisfy anticipated demand from the European electricity generating industry for bio-mass and the European road and air transport industries for bio-oil.
OPERATIONAL REVIEW
Group losses for the year ended 31st December 2009 amounted to £565,676 (2008: £622,117).
In November 2009 the Company raised £850,000 as the first stage in an intended £2.25m fund raising. As at 31 December 2009, the Company had net cash resources of £657,000. We are in continuing discussions with a number of potential investors regarding the provision of the balance so that we can establish a 'base farm' in Brazil.
In November 2009 we also strengthened our Board by the appointment of Martin Brink as Managing Director and David Thompson as Finance Director. Both are highly qualified and experienced in their respective fields, and well placed to take the company on to the next stage of its development.
THE OPPORTUNITY
There are three factors propelling the world's appetite for bio-fuels: geopolitical pressure, environmental concerns and peaking oil production.
These factors have led to legislation, which is the key mechanism driving increased demand for bio-fuels. For example:
·; the UK electricity generating industry is mandated to make green-house gas savings of a minimum of 15.4 per cent. by 2015/16; and
·; the UK road transport sector has a binding target to increase its renewable energy mix to 10 per cent. by 2020.
The projected growth in demand for bio-fuels goes well into the latter half of the 21st century. It is real, and will continue to provide opportunities to companies who are prepared to put in the necessary hard work and dedication.
Jatropha is a hardy perennial tree with a forty to fifty year life span. It produces a non-food dedicated energy crop in the form of seeds which can be crushed to produce bio-mass and bio-oil. It yields its first meaningful harvest three years after planting, and reaches optimum production after eight years.
Brazil is the ideal country in which to grow jatropha due to its climate, long tradition of industrial agriculture and the availability of large tracts of idle land.
Sustainability lies at the heart of our project and we intend to address the concerns of all stakeholders in our production and delivery methodologies.
STRATEGIC PARTNERS
Viridas is developing its project in conjunction with strategic partners who are supplying both down stream "know how" and "off-take" agreements.
PROSPECTS
Viridas has established a good reputation in the bio-fuels industry as a knowledgeable and important potential producer of both bio-mass and bio-oil. The signing of the ten year jatropha bio-oil supply agreement with INEOS, the largest independent producer of petroleum products in Europe, has helped to establish those credentials.
We are also currently in discussions with a leading UK electricity generator with a view to negotiating an "off-take" agreement for the supply of 240,000 tonnes of biomass per annum. If negotiations are successful, this "off-take" agreement will help to establish us as a leading supplier of bio-fuels to both the electricity generating industry and the road and air transport industries in the UK.
CONCLUSION
We believe the Company has an exciting future and we are putting in place the foundations for a highly credible and successful business with the potential to generate substantial rewards for shareholders.
Great enthusiasm for the project is shared by all your Directors and we look forward to reporting further progress.
Consolidated income statement
For the year ended 31 December 2009
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Note |
Year ended 31 December 2009 |
Period ended 31 December 2008 |
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£
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£
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Operating loss |
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(681,670) |
(439,857)
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Finance income |
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- |
5,972 |
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Finance expense |
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(535) |
(18,000) |
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Loss before taxation |
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(682,205) |
(451,885)
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Taxation |
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- |
- |
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Loss for the year from continuing operations |
2 |
(682,205)
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(451,885) |
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Profit/(loss) for the period from discontinued operations |
2 |
116,529 |
(170,232) |
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Loss for the financial year attributable to equity holders of the parent |
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(565,676) |
(622,117) |
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Earnings / (Loss) per share |
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- Basic and diluted continuing operations - Basic and diluted discontinued operations - Total basic and diluted |
3 3 3 |
(2.69p) 0.46p (2.23p) |
(1.86p) (0.69p) (2.55p) |
Consolidated Statement of Comprehensive Income
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2009 |
2008 |
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£
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£
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Loss for the financial year |
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(565,676) |
(622,117) |
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Exchange differences on translating foreign operations |
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(50,657) |
81,107 |
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Other comprehensive expenses for the year |
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(616,333) |
541,010 |
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Consolidated statement of changes in equity
For the year ended 31 December 2009
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Share Capital
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Share Premium
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Capital Redemption Reserve
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Translation Reserve
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Retained Earnings
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Total Equity
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Balance at 1 March 2008 |
2,435,796 |
2,007,339 |
27,000 |
88,093 |
(3,611,245) |
946,983 |
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Loss for the financial year
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- |
- |
- |
- |
(622,117) |
(622,117) |
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Exchange differences on translating foreign operations |
- |
- |
- |
81,107 |
- |
81,107
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Total comprehensive income for the year |
- |
- |
- |
81,107 |
(622,117) |
(541,010) |
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Balance at 31 December 2008
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2,435,796 |
2,007,339 |
27,000 |
169,200 |
(4,233,362) |
405,973 |
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Issue of share capital
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850,000 |
- |
- |
- |
- |
850,000 |
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Cost of shares issued |
- |
(155,000) |
- |
- |
- |
(155,000) |
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Transactions with owners
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850,000 |
(155,000) |
- |
- |
- |
695,000 |
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Loss for the financial year |
- |
- |
- |
- |
(565,676) |
(565,676) |
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Exchange differences on translating foreign operations |
- |
- |
- |
(50,657) |
- |
(50,657) |
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Total comprehensive income for the year
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- |
- |
- |
(50,657) |
(565,676) |
(616,333) |
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Balance at 31 December 2009 |
3,285,796 |
1,852,339 |
27,000 |
118,543 |
(4,799,038) |
484,640 |
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Consolidated statement of financial position
As at 31 December 2009
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2009 |
2008 |
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£ |
£ |
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ASSETS |
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Non-current assets |
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Other intangible assets |
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- |
- |
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Property, plant and equipment |
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- |
3,679 |
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- |
3,679 |
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Current assets |
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Trade and other receivables |
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29,696 |
277,973 |
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Cash and cash equivalents |
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657,265 |
1,083,792 |
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686,961 |
1,361,765 |
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Total Assets |
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686,961 |
1,365,444 |
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Current liabilities |
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Trade and other payables |
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112,852 |
193,444 |
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Income tax payable |
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89,469 |
49,809 |
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Obligations under finance leases |
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- |
3,220 |
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Bank loans |
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- |
384 |
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Bank overdraft |
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- |
712,614 |
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202,321 |
959,471 |
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Net assets |
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484,640 |
405,973 |
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EQUITY |
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Share capital |
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3,285,796 |
2,435,796 |
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Share premium account |
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1,852,339 |
2,007,339 |
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Capital redemption reserve |
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27,000 |
27,000 |
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Translation reserve |
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118,543 |
169,200 |
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Retained deficit |
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(4,799,038) |
(4,233,362) |
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Total equity |
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484,640 |
405,973 |
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Consolidated statement of cash flows
For the year ended 31 December 2009
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2009 |
2008 |
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£
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£
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Cash flows from operating activities |
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Loss before taxation - continuing operations |
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(682,205) |
(451,885) |
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Profit/(loss) before taxation - discontinued operations |
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119,368 |
(98,405) |
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Depreciation of property, plant and equipment |
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3,679 |
8,299 |
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Loss on disposal of property, plant and equipment |
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- |
5,684 |
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Interest receivable |
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(2,034) |
(5,972) |
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Interest payable |
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2,129 |
18,000 |
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Decrease in inventories |
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- |
968,524 |
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Decrease in trade and other receivable |
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248,277 |
409,799 |
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Decrease in trade and other payables |
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(80,592) |
(718,337) |
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Foreign exchange movement |
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(50,657) |
80,669 |
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(442,035) |
216,376 |
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Interest paid |
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(2,129) |
(18,000) |
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Tax paid |
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36,821 |
(58,308) |
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Net cash from operating activities |
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(407,343) |
140,068 |
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Cash flows from investing activities |
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Interest received |
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2,034 |
5,972 |
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Sale of property, plant and equipment |
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- |
12,434 |
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Purchase of property, plant and equipment |
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- |
(341) |
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Net cash from investing activities |
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2,034 |
18,065 |
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Cash flows from financing activities |
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Issue of shares - net proceeds |
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695,000 |
- |
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Repayment of loans |
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(384) |
(5,260) |
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Repayment of finance leases |
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(3,220) |
(5,370) |
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Net cash generated from/ (used in) financing activities |
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691,396
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(10,630) |
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Net increase in cash and cash equivalents |
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286,087 |
147,503
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Cash and cash equivalents at the beginning of the year |
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371,178 |
223,675 |
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Cash and cash equivalents at the end of the year |
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657,265 |
371,178 |
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Notes
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1. |
Basis of preparation
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The financial information set out in this announcement does not constitute the statutory accounts of the Group (within the meaning of section 435 of the Companies Act 2006) for the year ended 31 December 2009. The auditors reported on those accounts; their report was unqualified but contained a modified audit opinion relating to the year ended 31 December 2009 and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. The statutory accounts for the year ended 31 December 2009 will be delivered to the registrar of Companies following the Company's Annual General Meeting.
Whilst the financial information included in this preliminary announcement has been computed in accordance with International Financial Reporting Standards (IFRS), this announcement in itself does not contain sufficient information to comply with IFRS.
Going Concern The financial statements have been prepared on a going concern basis under the historical cost convention.
Overheads have been significantly reduced and comprise only the remuneration of the Directors, establishment costs, adviser costs and listing fees.
The Group is currently in discussions with a number of potential investors regarding the provision of funding to progress the Jatropha project. Confirmation of that funding will not be obtained prior to the publication of these financial statements, but the Directors are optimistic, based on discussions to date, that funding will be made available. This represents a material uncertainty that may cast significant doubt upon the entity's ability to continue as a going concern.
In the event that funding is not made available, the forecasts prepared by the Directors indicate that the Group has sufficient cash resources to enable it to satisfy the current overhead base until November 2010. The Directors will not commit to any future projects or expenditure not reflected in the cash flow forecast until sufficient funding is secured and are of the view that they can satisfy all remaining overhead costs from existing cash resources.
The Directors therefore believe that the going concern basis is appropriate for the preparation of the financial statements as they are in a position to meet all its liabilities as they fall due.
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2. |
Segmental information |
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The Group is organised around business class and the results are reported to the Chief Operating Decision Maker according to this class. There is one continuing class of business, being the Jatropha business, and discontinued activities relating to distribution of underwear and Ninaclip products.(see note 3) Given that there is only one continuing class of business, no segmental information has been provided other than geographical as set out below. The Jatropha business is within the United Kingdom therefore all costs are included within the United Kingdom segmental information. Revenue will be generated in the future from bio-diesel production.
CONTINUING AND DiscontiNued operations
During the prior year, the previous business activities relating to distribution of underwear and Ninaclip products were discontinued. The income and expenditure account and cash flows have been split between continuing and discontinued activities in accordance with IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations".
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Loss per share
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The basic loss per share is based on the loss of £ 565,676 (2008: £622,117) and 25,336,038 (2008:24,357,956) ordinary shares of 10p each, being the weighted average number of shares in issue during the year. The weighted average number of ordinary shares for the year ended 31 December 2009 assumes that all shares have been included in the computation based on the weighted average number of days since issue.
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2009 |
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2008 |
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£ |
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£
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Loss attributable to equity holders of the Group |
(565,676) |
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(622,117)
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Weighted average number of ordinary shares in issue |
25,336,038 |
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24,357,956
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Basic & diluted loss per share (pence) |
(2.23) |
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(2.55) |
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The share options in issue are anti-dilutive in respect of the basic loss per share calculation and have therefore not been included.
On the same basis as above the loss per share for continuing activities is 2.69 pence (2008: 1.86 pence) and the profit per share for discontinued activities is 0.46 pence (2008: loss per share of 0.69 pence).
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