Last checked at 30 Sep 2010 07:00
VIRIDAS PLC
"Viridas" or the "Company"
Results for 6 months ended 30th June 2010
Viridas is pleased to announce its interim results for the six months ended 30th June 2010.
Operational Review
Group Operating loss for the half year ended 30th June 2010 amounted to £294,101 (30th June 2009 £296,547).
A retained loss £294,612 (30th June 2009 £217,936) has been transferred to reserves. Net assets as at 30th June 2010 stood at £185,392 (30th June 2009 £ 136,841).
Strategic Agreement
On 26th July the Company announced that it had entered into a Strategic Development and Partnership Agreement with a leading UK energy generator to supply them with sustainable biomass for electricity generation. It is intended that this will lead to a sustainable biomass "off-take" agreement and discussions are taking place with regard to the possible terms of such an agreement.
Fundraising
In the Chairman's statement of 2nd June 2010 which accompanied the financial statements for the year ended 31st December 2009 we reported that we were in discussions with potential investors in relation to securing an additional £1.4m as the next stage of the financing programme initiated in November 2009 when £850,000 was raised by way of a placing of new shares in the Company. These additional funds were necessary for the company's ongoing development plan, the establishing and planting out of a base farm in Brazil.
The Group remains in discussions with a number of highly credible potential investors, and based on the outcome of those discussions the Directors are hopeful that future funding will be made available. However, in the current economic climate, and the lack of clarity from the Government regarding future support for the reduction of Green House Gas Emissions in the UK, it is proving challenging to bring such discussions to a close. Accordingly the Directors have decided that without tangible investor commitment by the end of the year the feasibility of an ongoing jatropha project would have to be reviewed.
In the interim the Directors have considered the overheads of the Group and have agreed further reductions in relation to Directors Remuneration and other expenditure where practicable. The Directors will not commit to any further projects or expenditure not reflected in the current cash flow unless and until sufficient additional new funding has been secured. The Directors are of the view that the Group can satisfy all committed overhead costs from existing cash resources.
Future Prospects
The Directors continue to believe that environmental, geo-political and economic considerations will provide opportunities for a successful jatropha project and will continue to work hard to seek the additional funds needed to achieve the realisation of the Group's strategy.
Any material developments will be made known to shareholders as soon as practicable.
S J Wootliff
Chairman
30th September 2010
For more information please contact:
Viridas plc:
Stanley Wootliff, Executive Chairman +44 (0) 11 235 0632
Nominated Adviser:
Arbuthnot Securities
Antonio Bossi/Paul Gillam +44 (0) 20 7012 2000
CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED
30 JUNE 2010
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| Unaudited 6 months ended 30 June 2010 | Unaudited 6 months ended 30 June 2009 | Audited Year ended 31 December 2009 |
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| £ | £ | £ |
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| Operating loss | (294,101) | (296,547) | (681,670) |
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| Finance income | 341 | - | - |
| Finance expense | (1) | (535) | (535) |
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| Loss before taxation | (293,761) | (297,082) | (682,205) |
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| Taxation | - | - | - |
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| Loss for the period from continuing operations | (293,761) | (297,082) | (682,205) |
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| (Loss)/profit for the period from discontinued operations | (851) | 79,146 | 116,529 |
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| Loss for the period | (294,612) | (217,936) | (565,676) |
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| Earnings per share |
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| Basic and diluted continuing operations | (0.89p) | (1.22p) | (2.69p) |
| Basic and diluted discontinued operations | (0.01p) | 0.32p | 0.46p |
| Total basic and diluted | (0.90p) | (0.90p) | (2.23p) |
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| Dividend per share | - | - | - |
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Discontinued Operations
Following a strategic review of the business all previous activities have been ceased and the Directors are now focusing on the Jatropha business
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2010
|
| Unaudited 6 months ended 30 June 2010 | Unaudited 6 months ended 30 June 2009 | Audited Year ended 31 December 2009 |
|
| £ | £ | £ |
| Loss for the period | (294,612) | (217,936) | (565,676) |
| Exchange differences | (4,636) | (51,196) | (50,657) |
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| Total recognised expense for the period | (299,248) | (269,132) | (616,333) |
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2010
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| Share Capital
| Share Premium
| Capital Redemption Reserve
| Translation Reserve
| Retained Earnings
| Total Equity
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| Balance at 1 January 2009 | 2,435,796 | 2,007,339 | 27,000 | 169,200 | (4,233,362) | 405,973 |
| Issue of share capital | 850,000 |
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|
|
| 850,000 |
| Cost of shares issued |
| (155,000) |
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|
| (155,000) |
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| ------------- | -------------- | ------------ | ------------ | --------------- | -------------- |
| Transactions with owners | 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 |
- |
- |
- |
(50,657) |
(565,676) |
(616,333) |
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| Balance at 31 December 2009
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3,285,796 |
1,852,339 |
27,000 |
118,543 |
(4,799,038) |
484,640 |
| Loss for the period | - | - | - |
- | (294,612) | (294,612) |
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| Exchange differences on translating foreign operations |
- |
- |
- |
(4,636) |
- |
(4,636) |
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| Total comprehensive income for the period
|
- |
- |
- |
(4,636) |
(294,612) |
(299,248) |
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| Balance at 30 June 2010 |
3,285,796 |
1,852,339 |
27,000 |
113,907 |
(5,093,650) |
185,392 |
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2010
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| Unaudited 6 months ended 30 June 2010 | Unaudited 6 months ended 30 June 2009 | Audited Year ended 31 December 2009 |
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| £ | £ | £ |
| ASSETS |
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| Non-current assets |
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| Property, plant and equipment | - | 2,127 | - |
| Total non-current assets | - | 2,127 | - |
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| Current assets |
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| Trade and other receivables | 31,675 | 35,104 | 29,696 |
| Cash and cash equivalents | 289,851 | 387,336 | 657,265 |
| Total current assets | 321,526 | 422,440 | 686,961 |
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| Total assets | 321,526 | 424,567 | 686,961 |
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| LIABILITIES |
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| Current liabilities |
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| Trade and other payables | 53,939 | 157,720 | 112,852 |
| Current tax payable | 82,195 | 68,390 | 89,469 |
| Bank overdraft | - | 61,616 | - |
| Total current liabilities | 136,134 | 287,726 | 202,321 |
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| Net assets | 185,392 | 136,841 | 484,640 |
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| EQUITY |
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| Share capital | 3,285,796 | 2,435,796 | 3,285,796 |
| Share premium account | 1,852,339 | 2,007,339 | 1,852,339 |
| Capital redemption reserve | 27,000 | 27,000 | 27,000 |
| Translation reserve | 113,907 | 118,004 | 118,543 |
| Retained deficit | (5,093,650) | (4,451,298) | (4,799,038) |
| Total equity | 185,392 | 136,841 | 484,640 |
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2010
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| Unaudited 6 months ended 30 June 2010 | Unaudited 6 months ended 30 June 2009 | Audited Year ended 31 December 2009 |
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| £ | £ | £ |
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| Cash flows from operating activities |
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| Loss before taxation - continuing operations | (293,761) | (294,082) | (682,205) |
| (Loss)/profit before taxation - discontinued operations | (851) | 61,399 | 119,368 |
| Depreciation of property, plant and equipment | - | 1,552 | 3,679 |
| Interest receivable | (1,041) | (700) | (2,034) |
| Interest payable | 1 | 2,061 | 2,129 |
| Decrease/(Increase) in trade and other receivables | (1,979) | 242,869 | 248,277 |
| Decrease in trade and other payables | (58,913) | (35,724) | (80,592) |
| Foreign exchange movement | (4,636) | (51,196) | (50,657) |
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| (361,180) | (73,821) | (442,035) |
| Interest paid | (1) | (2,061) | (2,129) |
| Tax (paid)/refund | (7,274) | 33,328 | 36,821 |
| Net cash from operating activities | (368,455) | (42,554) | (407,343) |
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| Cash flows from investing activities |
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| Interest received | 1,041 | 700 | 2,034 |
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| Net cash generated from investing activities | 1,041 | 700 | 2,034 |
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| Cash flows from financing activities |
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| Issue of shares - net proceeds | - | - | 695,000 |
| Repayment of loans | - | (384) | (384) |
| Repayment of finance leases | - | (3,220) | (3,220) |
| Net cash (used in)/generated from financing activities | - | (3,604) | 691,396 |
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| (Decrease)/increase in cash in the period | (367,414) | (45,458) | 286,087 |
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| Cash and cash equivalents at beginning of period | 657,265 | 371,178 | 371,178 |
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| Cash and cash equivalents at end of period | 289,851 | 325,720 | 657,265 |
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NOTES TO THE INTERIM REPORT
1. The financial information set out in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The group's statutory financial statements for the period ended 31 December 2009, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The interim financial information has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) and on the same basis and using the same accounting policies as used in the financial statements for the year ended 31 December 2009. The interim financial statements have not been audited or reviewed in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.
The financial statements have been prepared on a going concern basis under the historical cost convention. As described in the Chairman's statement the Group is currently in discussions with a number of potential investors regarding the funding to progress the jatropha project, and the Directors are hopeful, based on discussions to date, that funding will be made available.
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 budgeted overhead base until March 2011. Given all former activities have ceased and the Directors will not commit to any future projects or expenditure not reflected in the cash flow forecast until sufficient funding is secured, the Directors 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.
2. The calculation of basic and diluted earnings per share is based on the loss for the period of £294,612 (2009: loss £217,936) and a weighted average number of ordinary shares of 32,857,956 (2009: 24,357,956).
3. No interim dividend will be paid.
4. Copies of the interim report can be obtained from: The Company Secretary, Viridas P.L.C., 647, Roundhay Road, Leeds LS8 4BA and are available to view and download from the Company's website : www.viridasplc.com