Last checked at 17 Jun 2008 07:00
PRELIMINARY RESULTS
Year Ended 29 February 2008
VIRIDAS PLC ("Viridas", "the Group" or "the Company")
Highlights:
| Turnover for the year ended 29 February 2008: £5,303,954 (2007: £6,247,478) | |
| Pre-tax loss before exceptional items £527,045 (2007: £217,527) | |
| Established trial jatropha plantation in Brazil | |
| Signed Exclusive Partnership Agreement to develop crude jatropha oil with the world's third largest chemical company |
Chairman, Stanley Wootliff, commenting on the results, said:
"The year ended 29 February 2008 has been busy for the Company, as it started the process of withdrawing from its legacy businesses, repositioned itself into the rapidly expanding Biodiesel market and established a trial jatropha plantation in North East Brazil.
On 22 April 2008 we announced the signing of an exclusive strategic partnership agreement with INEOS Enterprises, part of INEOS, the world's third largest chemical company, to develop a sustainable supply of jatropha oil to the biodiesel market.
Subject to fund raising, we intend to implement our strategy to purchase, plant out with jatropha and manage 250,000 hectares of land for the annual production of 250,000 tonnes of non-edible biofuel feedstock for the esterification industry.
With the closure of its legacy businesses expected to be completed by the end of the current financial year, much hard work has been put into the new blueprint for the Group. Enthusiasm for the project is shared by all your directors and we look forward to reporting further progress."
Further information:
| Viridas plc | Tel: 0113 235 0632 |
| Stanley Wootliff, Executive Chairman | Stanley.wootliff@viridas.com |
| Graham Haselden, Finance Director | Graham.haselden@viridas.com |
| Evolution Securities Limited | |
| Joanne Lake/Peter Steel | Tel: 0113 243 1619 |
Chairman's Statement
For the year ended 29 February 2008
Our Future - Jatropha Biofuel Feedstock - Owners and Managers of Plantations in Brazil
World's 3rd Largest Chemical Company Signs Exclusive Partnership
It has been a busy year for the Company, as it started the process of withdrawing from its legacy businesses and continued research and development of its new future as a dedidcated owner and manager of jatropha plantations in Brazil. We believe that such plantations will achieve full acceptance as the preferred biofuel feedstock by esterifiers and will secure our future position within the biodiesel supply chain.
OPERATIONAL REVIEW
Following the strategic review of the Group's activities referred to in my statement last year, we have now ceased our activities in relation to garden furniture. Our baby buggy parasol business has continued in the current year but with its operations heavily scaled down.
Our German underwear business, Nissel Textilien GmbH, has continued to trade in line with our expectations, with reduced volumes of business, as anticipated. We are intending to close the Nissel business by the end of October 2008.
Our property at Skelmersdale was sold for £500,000 during the year.
Group operating losses for the year ended 29 February 2008, before exceptional items of £436,924 (£799,930), which primarily related to closure costs and associated balance sheet adjustments, amounted to £466,304 (£146,185).
Also included in the operating losses were costs associated with the jatropha project of £362,000.
A retained loss of £931,018 (£1,106,292) has been transferred to reserves. Net assets at the year end stood at £946,983 (£1,231,490).
We are intending to complete the closure of all our current trading businesses by the end of the current financial year and will be focusing all the Group's efforts on the jatropha project thereafter.
JATROPHA AND BRAZIL - THE OPPORTUNITY
Early in 2006, we saw an opportunity for the supply of jatropha feedstock to the biodiesel industry and carried out detailed research into the project. In August 2007, we raised £0.56 m through a share placing in order to establish a trial jatropha plantation in Minas, Gerais, in North East Brazil.
Jatropha, a perennial non-food oilseed used in alternative fuels production, has the potential to become one of the world's key energy crops. Brazil is regarded as an ideal country to grow jatropha, due to its climatic conditions, long tradition of industrial agriculture and large tracts of available idle land. We believe that this opportunity will enable the Company to build an eco-friendly but also financially successful business that also fulfils our commitment to the principle of socially responsible investment.
Viridas has during the first half of 2008 carried out extensive research and progressed more detailed plans for the implementation of a fully mechanised, industry-scale, jatropha growing business. In this regard, Viridas is working with manufacturers to develop mechanical picking equipment for large-scale harvesting of crops.
We incorporated Viridas Brazil at the start of 2008 and started the recruitment of local management. We believe it will be essential that Viridas controls the agronomy and also manages the land on which the jatropha trees are grown. Our strategy is therefore both to own and manage jatropha plantations, where the expected life of trees is some 30-50 years.
Our presence in the new industry has been endorsed by INEOS Enterprises, part of INEOS, the world's third largest chemicals group. As announced on 17 April 2008, INEOS Enterprises has entered into an exclusive strategic partnership with Viridas to develop a sustainable supply of jatropha oil to the biodiesel market.
Subject to fund raising, Viridas will embark on the first stage of a seven year strategic plan to purchase, plant out and manage 250,000 hectares of jatropha plantations in Brazil.
You will find within the Annual Report an introductory section which sets out the background to the Company's jatropha project.
PROSPECTS
We believe Viridas has already established a good reputation in the biodiesel industry. The partnership with INEOS Enterprises enables us to pursue a common vision to develop leading positions within the biodiesel supply chain, whilst at the same time providing agricultural communities with a new and sustainable crop and creating a non-food feedstock for alternative fuels production.
Jatropha is the seed to the Company's future and an ideal, sustainable, non-food 'Green' energy crop for an energy hungry world. The foundations are now in place for a highly credible and successful business, which has the potential to generate substantial rewards for shareholders well into the 21st Century.
With the withdrawal from our legacy businesses well advanced, much hard work has been put into the new blueprint for the Group. Enthusiasm for the project is shared by all your directors and we look forward to reporting further progress.
S J WOOTLIFF
Chairman
17 June 2008
Consolidated income statement
For the year ended 29 February 2008
| Note | Year ended 29 February 2008 | Year ended 28 February 2007 | |
| £ | £ | ||
| Revenue - continuing operations | 5,303,954 | 6,247,478 | |
| ---------- | ---------- | ||
| Operating loss - continuing operations | (903,228) | (946,115) | |
| Finance income | 8,470 | - | |
| Finance expense | (69,211) | (71,342) | |
| ---------- | ---------- | ||
| Loss before taxation | (963,969) | (1,017,457) | |
| Taxation | 32,951 | (88,835) | |
| ---------- | ---------- | ||
| Loss for the year | (931,018) | (1,106,292) | |
| ---------- | ---------- | ||
| Loss per share | |||
| - Basic | 2 | (4.13p) | (5.56p) |
| - Diluted | 2 | (4.13p) | (5.56p) |
Consolidated statement of changes in shareholders' equity
For the year ended 29 February 2008
| Share Capital | Share Premium | Capital Redemption Reserve | Translation Reserve | Revaluation Reserve | Retained Earnings | Total Equity | |
| Balance at 1 March 2006 | 1,991,196 | 1,906,229 | 27,000 | - | 19,440 | (1,658,895) | 2,284,970 |
| Foreign exchange differences | - | - | - | (12,708) | - | - | (12,708) |
| Movement in revaluation reserve | - | - | - | - | 65,520 | - | 65,520 |
| Total recognised loss for the year | - | - | - | - | - | (1,106,292) | (1,106,292) |
| ------------ | ------------ | ------------ | ------------ | ------------ | ------------ | ------------ | |
| Balance at 28 February 2007 | 1,991,196 | 1,906,229 | 27,000 | (12,708) | 84,960 | (2,765,187) | 1,231,490 |
| Shares issued | 444,600 | 111,150 | - | - | - | - | 555,750 |
| Cost of shares issued | - | (10,040) | - | - | - | - | (10,040) |
| Foreign exchange differences | - | - | - | 100,801 | - | - | 100,801 |
| Realisation of revaluation reserve | - | - | - | - | (84,960) | 84,960 | - |
| Total recognised loss of the year | - | - | - | - | - | (931,018) | (931,018) |
| ------------ | ------------ | ------------ | ------------ | ------------ | ------------ | ------------ | |
| Balance at 29 February 2008 | 2,435,796 | 2,007,339 | 27,000 | 88,093 | - | (3,611,245) | 946,983 |
| ====== | ====== | ====== | ====== | ====== | ====== | ====== |
Consolidated balance sheet
As at 29 February 2008
| Note | 2008 | 2007 | |
| £ | £ | ||
| ASSETS | |||
| Non-current assets | |||
| Goodwill | - | 35,500 | |
| Other intangible assets | - | 143,006 | |
| Property, plant and equipment | 29,317 | 559,114 | |
| ---------- | ---------- | ||
| 29,317 | 737,620 | ||
| ---------- | ---------- | ||
| Current assets | |||
| Inventories | 968,524 | 1,008,416 | |
| Trade and other receivables | 687,772 | 477,088 | |
| Cash and cash equivalents | 1,456,970 | 689,118 | |
| ---------- | ---------- | ||
| 3,113,266 | 2,174,622 | ||
| ---------- | ---------- | ||
| Total Assets | 3,142,583 | 2,912,242 | |
| ---------- | ---------- | ||
| LIABILITIES | |||
| Non-current liabilities | |||
| Obligations under finance leases | 2,147 | 8,590 | |
| Bank loans | - | 288,343 | |
| Deferred tax liability | - | 33,040 | |
| ---------- | ---------- | ||
| 2,147 | 329,973 | ||
| ---------- | ---------- | ||
| Current liabilities | |||
| Trade and other payables | 911,781 | 452,097 | |
| Income tax payable | 36,290 | 76,872 | |
| Obligations under finance leases | 6,443 | 6,443 | |
| Bank loans | 5,644 | 31,001 | |
| Bank overdraft | 1,233,295 | 784,366 | |
| ---------- | ---------- | ||
| 2,193,453 | 1,350,779 | ||
| ---------- | ---------- | ||
| Total liabilities | 2,195,600 | 1,680,752 | |
| ---------- | ---------- | ||
| Net assets | 946,983 | 1,231,490 | |
| ====== | ====== | ||
| EQUITY | |||
| Share capital | 2,435,796 | 1,991,196 | |
| Share premium account | 2,007,339 | 1,906,229 | |
| Capital redemption reserve | 27,000 | 27,000 | |
| Revaluation reserve | - | 84,960 | |
| Translation reserve | 88,093 | (12,708) | |
| Retained deficit | (3,611,245) | (2,765,187) | |
| ---------- | ---------- | ||
| Total equity | 946,983 | 1,231,490 | |
| ---------- | ---------- |
Consolidated cash flow statement
For the year ended 29 February 2008
| Note | 2008 | 2007 | |
| £ | £ | ||
| Cash flows from operating activities | |||
| Loss before tax | (963,969) | (1,017,457) | |
| Depreciation of property, plant and equipment | 43,867 | 36,038 | |
| Impairment of property, plant and equipment | 57,919 | 307,927 | |
| Profit on disposal of property, plant and equipment | (55,924) | - | |
| Amortisation of goodwill and other intangible assets | 178,506 | 324,435 | |
| Impairment of goodwill and other intangible assets | - | 31,759 | |
| Interest receivable | (8,470) | - | |
| Interest payable | 69,211 | 71,342 | |
| Decrease in inventories | 39,892 | 545,884 | |
| (Increase)/decrease in trade and other receivable | (210,684) | 153,824 | |
| Increase/(decrease) in trade and other payables | 459,684 | (168,636) | |
| Foreign exchange movement | 98,875 | - | |
| ---------- | ---------- | ||
| (291,093) | 285,116 | ||
| Interest paid | (69,211) | (71,342) | |
| Tax paid | (40,671) | (47,853) | |
| ---------- | ---------- | ||
| Net cash from operating activities | (400,975) | 165,921 | |
| ---------- | ---------- | ||
| Cash flows from investing activities | |||
| Interest received | 8,470 | - | |
| Purchase of intangible assets | - | (15,994) | |
| Sale of property, plant and equipment | 506,717 | - | |
| Purchase of property, plant and equipment | (20,856) | (5,855) | |
| ---------- | ---------- | ||
| Net cash used in investing activities | 494,331 | (21,849) | |
| ---------- | ---------- | ||
| Cash flows from financing activities | |||
| Issue of shares | 545,710 | - | |
| Repayment of loans | (313,700) | (34,965) | |
| Repayment of finance leases | (6,443) | - | |
| ---------- | ---------- | ||
| Net cash generated from/(used in) financing activities | 225,567 | (34,965) | |
| Net increase in cash and cash equivalents | 318,923 | 109,107 | |
| Cash and cash equivalents at the beginning of the year | (95,248) | (204,355) | |
| ---------- | ---------- | ||
| Cash and cash equivalents at the end of the year | 223,675 | (95,248) | |
| ---------- | ---------- |
Notes
| 1. | Basis of preparation | ||
| The financial information set out in this announcement does not constitute the statutory accounts of the Group for the year ended 29 February 2008. The auditors reported on those accounts; their report was unqualified and did not contain a statement under section 237 (2) or (3)of the Companies Act 1985. The statutory accounts for the year ended 29 February 2008 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. | |||
| 2. | Loss per share | ||
| The loss per share is based on the loss of £931,018 (2007: loss of £1,106,292) and 22,523,841 (2007: 19,911,956) ordinary shares of 10p each, being the weighted average number of shares in issue during the period. The weighted average number of ordinary shares for the year ended 29 February 2008 assumes that all shares have been included in the computation based on the weighted average number of days since issuance. | |||
| 2008 | 2007 | ||
| £ | £ | ||
| Loss attributable to equity holders of the Group | (931,018) | (1,106,292) | |
| Weighted average number of ordinary shares in issue | 22,523,841 | 19,911,956 | |
| Basic & diluted loss per share (pence) | (4.13) | (5.56) | |
| ---------- | ---------- | ||
| The share options in issue are anti-dilutive in respect of the basic loss per share calculation and have therefore not been included. | |||
| 3. | Annual Report | ||
| The annual report will be mailed to shareholders on or around 21st July 2008. Copies will be available after that date from: The Secretary, Viridas PLC., 647 Roundhay Road, Leeds, West Yorkshire LS8 4BA. | |||
| 4. | Annual General Meeting | ||
| The Annual General Meeting will be held at 6 New Street Square, New Fetter Lane, London, EC4A 3BF on 15 August 2008 at 10.00 a.m. | |||