Last checked at 30 Sep 2009 07:00
Viridas PLC
Interim results for the six months ended 30 June 2009
CHAIRMAN'S STATEMENT
Our Future - Jatropha, a dedicated sustainable energy crop - Owner managers of plantations in Brazil.
OPERATIONAL REVIEW
Group operating loss for the half year ended 30th June 2009 amounted to £231,322 (31st August 2008 £252,498)
These figures relate to the costs incurred maintaining the AIM listing, the personnel associated with the development of the jatropha project, and the costs related to the extended time frame of the fund raising.
A retained loss of £217,936 (31st August 2008 £282,661) has been transferred to reserves. Net assets at the half year end stood at £136,841(31st August 2008 £709,176).
FUND RAISING
As highlighted in my statement for the period ended 31st December 2008, the year 2009 was designated as the year we would embark on the third stage of our five stage strategic plan, subject to the raising of further funds. Accordingly, during the period in question much time and effort has been dedicated to such a fund raising. The financial climate has been less than helpful, and the whole process has taken far longer and required far more human and financial resource than we had originally anticipated. However, the Group is currently in discussions with a number of potential investors regarding the necessary funding to progress the Jatropha project, and the directors are optimistic, based on those discussions, that funding will be made available.
A successful share placing will provide Viridas with additional working capital, enable the company to deliver against the third stage of its business plan, and to take advantage of the significant opportunities currently available in the European Transport Fuel and Electricity Generating Markets. Viridas believe the additional funds would enable the company to achieve a significant advantage in the growing and development of jatropha curcas as a dedicated energy crop, produced for the supply of sustainable, certifiable crude jatropha oil and jatropha biomass to the European energy market.
THE NEXT STAGE
The third stage of Viridas' business plan is to acquire and plant a 250 hectares base farm, in the state of Bahia, in Brazil, to act as a platform from which to launch the fourth stage of Viridas jatropha project, the roll out of 30,000 hectares of commercial jatropha plantation. The objectives of the base farm are five-fold:
1] The establishment of an essential nursery for the production of the company's own seedlings to be used for the planting out of the base farm and subsequent Hectares needed for the industrial production of jatropha.
2] To acquire on an "on going" basis representative data and "know how" relevant to the large scale planting, pruning and general agronomical husbandry of industrial jatropha growing.
3] To establish a training ground for the staff and employees that will be necessary to run the commercial plantations.
4] To establish a hub for the garaging and up keep of the farm machinery that will be needed on a rotational basis on the farms.
5] To establish a laboratory for the on-going research and development of jatropha plant sciences, jatropha agronomy, crushing, pelletisation and small scale esterification to produce biofuel for Viridas' own transportation needs, and small scale co-generation for Viridas' own energy needs.
PROSPECTS
Driven by Ecological, Geo-Political and Economic considerations the next decades will provide significant opportunities to supply the Road Transport Fuel market and the Electricity Generating Industry with sustainable renewable energy from dedicated energy crops. Viridas intend to avail themselves of those opportunities.
Over the past few years much hard work has gone into repositioning the group, organising the raising of additional funds and developing the company's jatropha strategy. We now look forward to the exciting prospect of realising the next stage of our project, and creating the world's leading jatropha producer.
S.J.Wootliff
Chairman
30th September 2009
Enquiries:
| Stanley Wootliff | Chairman, Viridas plc | 0113 2350632 |
| Matthew Robinson | FinnCap | 0207 600 1658 |
CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED
30 JUNE 2009
| Unaudited 6 months ended 30 June 2009 | Unaudited 6 months ended 31 August 2008 | Audited Period ended 31 December 2008 | |
| £ | £ | £ | |
| Revenue | - | 2,275,660 | - |
| Operating loss | (231,322) | (252,498) | (439,857) |
| Finance income | 700 | 7,048 | 5,972 |
| Finance expense | (2,061) | (11,411) | (18,000) |
| Loss before taxation | (232,683) | (256,861) | (451,885) |
| Taxation | 14,747 | (25,800) | - |
| Loss for the period from continuing operations | (217,936) | (282,661) | (451,885) |
| Loss for the period from discontinued operations | - | - | (170,232) |
| Loss for the period | (217,936) | (282,661) | (622,117) |
| Loss per share | |||
| Basic and diluted continuing operations | (0.89p) | (1.16p) | (1.86p) |
| Basic and diluted discontinued operations | - | - | (0.69p) |
| Total basic and diluted | (0.89p) | (1.16p) | (2.55p) |
| Dividend per share | - | - | - |
Change of year end
The Company's year end was changed to 31 December at the end of 2008. Accordingly the comparative interim information relates to the six months ended 31 August 2008.
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 2009
| Unaudited 6 months ended 30 June 2009 | Unaudited 6 months ended 31 August 2008 | Audited Period ended 31 December 2008 | |
| £ | £ | £ | |
| Loss for the period | (217,936) | (282,661) | (622,117) |
| Total recognised income and expense for the period | (217,936) | (282,661) | (622,117) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2009
| Unaudited 6 months ended 30 June 2009 | Unaudited 6 months ended 31 August 2008 | Audited Period ended 31 December 2008 | |
| £ | £ | £ | |
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 2,127 | 44,832 | 3,679 |
| Total non-current assets | 2,127 | 44,832 | 3,679 |
| Current assets | |||
| Inventories | - | 570,962 | - |
| Trade and other receivables | 35,104 | 768,184 | 277,973 |
| Cash and cash equivalents | 387,336 | 857,596 | 1,083,792 |
| Total current assets | 422,440 | 2,196,742 | 1,361,765 |
| Total assets | 424,567 | 2,241,574 | 1,365,444 |
| LIABILITIES | |||
| Current liabilities | |||
| Trade and other payables | 157,720 | 792,507 | 193,444 |
| Current tax payable | 68,390 | 20,700 | 49,809 |
| Obligations under finance leases | - | 5,368 | 3,220 |
| Bank loans | - | 2,528 | 384 |
| Bank overdraft | 61,616 | 711,295 | 712,614 |
| Total current liabilities | 287,726 | 1,532,398 | 959,471 |
| Non-current liabilities | |||
| Obligations under finance leases | - | - | - |
| Bank Loans | - | - | - |
| Deferred tax liability | - | - | - |
|
| |||
| Total non-current liabilities | - | - | - |
| Total liabilities | 287,726 | 1,532,398 | 959,471 |
| Net assets | 136,841 | 709,176 | 405,973 |
| EQUITY | |||
| Share capital | 2,435,796 | 2,435,796 | 2,435,796 |
| Share premium account | 2,007,339 | 2,007,339 | 2,007,339 |
| Capital redemption reserve | 27,000 | 27,000 | 27,000 |
| Translation reserve | 118,004 | 132,947 | 169,200 |
| Retained deficit | (4,451,298) | (3,893,906) | (4,233,362) |
| Total equity | 136,841 | 709,176 | 405,973 |
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
| Unaudited 6 months ended 30 June 2009 | Unaudited 6 months ended 31 August 2008 | Audited Period ended 31 December 2008 | |
| £ | £ | £ | |
| Cash flows from operating activities | |||
| Loss before tax | (232,683) | (256,861) | (550,290) |
| Depreciation of property, plant and equipment | 1,552 | 5,384 | 8,299 |
| Profit on disposal of property, plant and equipment | - | - | 5,684 |
| Interest receivable | (700) | (7,048) | (5,972) |
| Interest payable | 2,061 | 11,411 | 18,000 |
| Decrease in inventories | - | 397,562 | 968,524 |
| Decrease/(Increase) in trade and other receivables | 242,869 | (80,412) | 409,799 |
| Decrease in trade and other payables | (35,724) | (119,274) | (718,337) |
| Foreign exchange movement | (51,196) | 44,854 | 80,669 |
| (73,821) | (4,384) | 216,376 | |
| Interest paid | (2,061) | (11,411) | (18,000) |
| Tax refund/(paid) | 33,328 | (41,390) | (58,308) |
| Net cash from operating activities | (42,554) | (57,185) | 140,068 |
| Cash flows from investing activities | |||
| Interest received | 700 | 7,048 | 5,972 |
| Purchase of property, plant and equipment | - | (20,899) | (341) |
| Sale of property, plant and equipment | - | - | 12,434 |
| Net cash generated from/(used in) investing activities | 700 | (13,851) | 18,065 |
| Cash flows from financing activities | |||
| Repayment of loans | (384) | (3,116) | (5,260) |
| Repayment of finance leases | (3,220) | (3,222) | (5,370) |
| Net cash (used in)/generated from financing activities | (3,604) | (6,338) | (10,630) |
| (Decrease)/increase in cash in the period | (45,458) | (77,374) | 147,503 |
| Cash and cash equivalents at beginning of period | 371,178 | 223,675 | 223,675 |
| Cash and cash equivalents at end of period | 325,720 | 146,301 | 371,178 |
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 2008, 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 237 (2) of the Companies Act 1985.
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 2008. 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 optimistic, 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 January 2010. 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 £217,936 (2008: loss £282,661) and a weighted average number of ordinary shares of 24,357,956 (2008: 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