Sosandar Regulatory News (SOS)

18 Dec 2006 07:05

Embargoed: 0705hrs 18 December 2006

MeDaVinci plc ("MeDaVinci" or the "Company") Interim Results for the Six Months ended 30 September 2006

Chairman's Statement

I present the results for the six months to 30 September 2006 reflecting a period in which the Company has been largely inactive, with the exception of its sole investment in ErgoDynamics Applications BV (19.2%), made in March of this year shortly before the financial year end of the Company.

Financial Results

The Company has reported a loss on ordinary activities before taxation of ‚£ 30,000 on nil turnover resulting in a diluted loss per share of 0.4 pence. Fixed assets from investments stand at ‚£597,000 with cash at bank and in hand at the six month period end of ‚£236,000.

Review of Portfolio Companies

ErgoDynamics Applications BV (19.2%)

ErgoDynamics has developed a proprietary and patented system for the prevention and relief of lower back pain. Since the investment by MeDaVinci in March 2006, ErgoDynamics has begun the commercialisation of its back pain prevention and relief technology in The Netherlands in the office environment. So far it has successfully completed pilot programs with over fifty corporate, institutional and governmental employers. Last September ErgoDynamics introduced the system in the professional transportation market, providing chairs for bus and truck drivers, at the IAA exhibition in Hanover, Germany.

Outlook

The Company announced today its development as an active investment company focussed on innovative technologies, products and services in the Health and Wellness markets. For this reason the Company changed its name from HHK Plc to MeDaVinci plc in October to reflect its new direction. I am delighted to welcome to the Board our new Chief Executive, Rob Westerhof, who, as the former CEO of Philips Asia, Philips Medical Systems and Philips North America, will spearhead the implementation of our strategy and the building of our investment portfolio. Rob has invested ‚£1,000,000 into the Company today along with a further ‚£740,757 raised from new and existing investors.

It is envisaged that the type of investments that MeDaVinci will consider will include University spin-offs and the financing of inventions and entrepreneurs who have exciting products or concepts but the lack of capital or know-how to commercialise them. The Company will consider only those situations where it will be the (joint) lead investor and where it will place a MeDaVinci representative on the board of the portfolio company. Potential portfolio companies should display one or a number of the following characteristics: a distinctive or innovative market position, intellectual property or patents, niche expertise, a limited time to market (i.e. do not require extensive regulatory body approval) and a clear exit scenario. From his 35 years within the Philips organisation Rob Westerhof, along with myself and my fellow executive directors, have access to a large number of opportunities that are considered initially too small or early-stage by the major medical companies but which, through access to growth capital, contacts and expert guidance, may be progressed to the level at which they become attractive acquisition targets, cash generators or suitable for IPO.

A number of such investments are already under consideration by the Board and I look forward to announcing developments in those areas to you in the near future.

Peter TeerlinkChairman15 December 2006

For further information please contact,

Peter Teerlink, ChairmanMeDaVinci plcTel. +31 10 288 4343Ben SimonsHansard GroupTel. +44 (0)20 7245 1100PROFIT AND LOSS ACCOUNTFOR THE SIX MONTHS ENDED 30 SEPTEMBER 2006 Unaudited Unaudited Audited 6 months 2 March 2005 2 March 2005 to 30 to to September 30 September 31 March 2006 2005 2006 Notes ‚£'000 ‚£'000 ‚£'000 Turnover - - - Cost of Sales (-) (-) (-) Gross profit - - - Administrative expenses (37) (6) (340) Operating loss (37) (6) (340) Other interest receivable 7 8 14 (Loss)/profit on ordinary 30 2 (326)activities before taxation Taxation on loss on ordinary - - -activities (Loss)/profit for the financial (30) 2 (326)year attributable to members of the parent company Loss per share: basic 2 (0.4p) 0.3p (4.1p) : diluted (0.4p) 0.02p (4.1p)

There are no recognised gains or losses other than the profit for the period.

BALANCE SHEETAS AT 30 SEPTEMBER 2006 Unaudited Unaudited Audited 30 30 September September 31 March 2006 2005 2006 Notes ‚£'000 ‚£'000 ‚£'000 Fixed assets Investments 3 597 - 597 _________ 597 - 597 _________ Current assets Debtors - 3 - Cash at bank and in hand 236 339 334 _________ 236 342 334 Creditors: amounts falling due (32) (1) (100)within one year _________ Net current assets 204 341 234 _________ Net assets 801 341 831 Capital and reserves Called up share capital 136 82 136 Share premium reserve 743 257 743 Warrant reserve 278 - 278 Profit and loss account (356) 2 (326) _________ Total shareholders' funds 4 801 341 831

The interim financial report was approved by the board of directors on 15 December 2006 and was signed on their behalf by:

P TeerlinkDirectorCASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 30 SEPTEMBER 2006 Notes Unaudited Unaudited Audited 6 months 2 March 2 March to 2005 to 30 2005 to September September 31 March 2006 2005 2006 ‚£'000 ‚£'000 ‚£'000 mot Cash outflow/(inflow) from 5 (105) (8) 38operating activities Returns on investment and servicing of finance Interest received 7 8 14 Capital expenditure and financial investment Payments to acquire investments - - (57) __________ Net cash outflow before financing (98) - (5) Financing Issue of shares - 410 410 Cost of issue - (71) (71) __________ - 339 339 __________ (Decrease)/Increase in cash (98) 339 334 NOTES TO THE INTERIM REPORTFOR THE PERIOD ENDED 30 SEPTEMBER 2006

1. ACCOUNTING POLICIES

i. Basis of preparation

The interim report for the period ended 30 September 2006 and 2005 is unaudited and does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. It has been prepared under the historical cost convention and on a basis consistent with the accounting policies for the period ended 31 March 2006. The results for the year ended 31 March 2006 and the balance sheet of that date are an extract from the statutory financial statements for that year, which have been filed with the Registrar of Companies and on which the company's auditors gave an unqualified report and did not contain a statement under Section 237 (2) or (3) of that Act.

(ii) Investments

A certain investment within the company's investment fund falls within the definition of associated undertakings, as defined by FRS 9 "Associates and Joint Ventures". However the directors consider that Medavinci Plc does not exert significant influence as defined in FRS 9 and so the investment has not been equity accounted for.

2. EARNINGS PER SHARE

The calculation of basic and diluted earnings per share is based on loss of ‚£ 30,000 for the 6 months ended 30 September 2006 (31 March 2006: loss of ‚£ 326,000, 30 September 2005: profit of ‚£2,000), and on the weighted average number of ordinary shares in the period of 7,891,623 (31 March 2006: 7,891,623, 30 September 2005: 7,400,000; diluted 11,883,569).

3. INVESTMENTS

a. Non Subsidiary Undertakings

Unaudited Unaudited Audited 30 September 30 September 31 March 2006 2005 2006 ‚£'000 ‚£'000 ‚£'000 Shares Brought forward 597 - - Additions - - 597 Carried forward 597 - 597Company Holding Value of Investments % ‚£'000 HLJ Participations BV 25.6% 557 Medavinci Development BV 5.0% 40

4. RECONCILIATION OF MOVEMENT IN EQUITY SHAREHOLDERS' FUNDS

Unaudited Unaudited Audited 6 months 2 March 2 March ended 30 2005 to 30 2005 to September September 31 March 2006 2005 2006 ‚£'000 ‚£'000 ‚£'000 Group (Loss)/profit for the period (30) 2 (326) On issue of shares - 82 136 Premium on issued of shares - 257 743 Share warrant charge - - 278 Increase in shareholders' funds (30) 341 831 Opening shareholders' funds 831 - - Closing shareholders' funds 801 341 831

5. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM

OPERATING ACTIVITIES Unaudited Unaudited Audited 6 months 2 March 2 March ended 30 2005 to 30 2005 to September September 31 March 2006 2005 2006 ‚£'000 ‚£'000 ‚£'000 Operating loss (37) (6) (340) (Increase)/decrease in operating debtors - (3) 265and prepayments (Decrease)/increase in operating (68) 1 100creditors and accruals Increase in equity share warrant charge - - 278 Cash (outflow)/inflow from operating (105) (8) 38

activities