Amd Commo Exagr Regulatory News (COMG)

31 Aug 2007 17:41

Commodity Growth PLC31 August 2007 This announcement is a corrected announcement and supercedes the interim resultsannouncment released 10am 31 August 2007. Commodity Growth plcInterim Results 30 June 2007 Chairman's Statement Highlights • Net assets £3.3 million at 30 June 2007, equal to 5.8p per share• Operating profit of £61,211 (30 June 2006: loss £105,325)• Cash flow positive• New investment strategy being implemented, with new management team bringing first deals Financial results The Group achieved an operating profit of £61,211, against a loss in 2006 of£105,325, as a result of a significant reduction in Group overheads, and betterperformance by our wholly owned UK education business, Bournemouth EducationalCentre Ltd. The accounts have been prepared under International Financial ReportingStandards ("IFRS") for the first time, and historical results have been restatedto IFRS. This has resulted in net assets for June 2006 and December 2006 beingrestated from £1.50 to £5.96 million, and £1.39 to £5.55 million, primarily as aresult of revaluing our investments in PLUS listed China Education Group (CEG)and Dalian Business Institute (DBI) from cost to fair value. For the period ended 30 June 2007, we have decided to take a 30% discount tomarket value in valuing CEG and DBI, in line with the strategy of disposing ofthe education assets as quickly as possible to focus on the new investmentstrategy. This has resulted in an accounting charge of £2,274,276, being thedifference between the full market value of CEG and DBI as at 31 December 2006,and the 30% discount to market value as at 31 August 2007. This accountingcharge has resulted in an overall loss for the period of £2,237,924. Outlook Shareholders approved the expansion of the Group's business strategy at the AGMheld in July to cover investing in businesses that are involved in commodities,commodity trading, specialist materials and related industries, includingindustries that are dependent on, or significant consumers of, such commoditiesand materials. The new Chief Executive is assembling a small team to assist in theimplementation of the strategy. Potential investments have been identified andwe are currently looking at ways to raise the necessary funds. James HolmesChairman31 August 2007 Consolidated Unaudited Restated RestatedIncome Statement 6 months to 6 months to Year to 30 Jun 2007 30 Jun 2006 31 Dec 2006 £ £ £ Revenue 294,119 213,320 366,424Cost of Sales (42,482) (52,641) (106,594) ------ ------ ------Gross profit 251,637 160,679 259,830 Administrative expenses (190,426) (266,004) (791,919) ------ ------ ------Operating profit/(loss) 61,211 (105,325) (532,089) Unrealised profit/(loss) (2,274,276) 2,036,423 1,676,602Interest received 3,494 5,905 30,597Finance costs (28,353) (33,840) (74,261) ------ ------ ------Profit/(loss) before taxation (2,237,924) 1,903,163 1,100,849 Taxation - (121) (121) ------ ------ ------Profit/(loss) after taxation (2,237,924) 1,903,042 1,100,728 ------ ------ ------ Basic earnings/(loss) per share (3.9p) 4.0p 2.2p Consolidated Balance Sheet Unaudited Restated Restated as at as at as at 30 Jun 2007 30 Jun 2006 31 Dec 2006 £ £ £ Non current assetsGoodwill - 359,760 -Property, plant and equipment 9,910 18,246 14,398 ------ ------ ------ 9,910 378,006 14,398 ------ ------ ------Current assetsInvestments 3,631,710 5,889,634 5,905,986Trade and other receivables 261,952 129,219 177,858Cash and cash equivalents 315,314 367,170 313,068 ------ ------ ------ 4,208,976 6,386,023 6,396,912 ------ ------ ------Total assets 4,218,886 6,764,029 6,411,310 ------ ------ ------Current liabilitiesTrade and other payables (405,155) (190,188) (302,231) ------ ------ ------Net current assets 3,803,821 6,195,835 6,094,681 ------ ------ ------Non current liabilitiesConvertible loan notes (498,567) (607,337) (555,991)Deferred tax (3,694) (3,694) (3,694) ------ ------ ------Total liabilities (907,416) (801,219) (861,916) ------ ------ ------Net assets 3,311,470 5,962,810 5,549,394 ------ ------ ------ Share capital 2,850,426 2,461,528 2,850,426Share premium 3,395,328 3,395,328 3,395,328Equity reserve 992,290 992,290 992,290Retained loss (3,926,574) (886,336) (1,688,650) ------ ------ ------Total equity 3,311,470 5,962,810 5,549,394 ------ ------ ------ Consolidated Statement of Changes in Share Share Equity Retained loss TotalEquity capital premium reserve Balance at 1 January 2006 2,239,228 3,284,177 992,290 (2,789,378) 3,726,317Issue of shares 222,300 111,151 333,451Profit for the period 1,903,042 1,903,042Balance at 30 June 2006 2,461,528 3,395,328 992,290 (886,336) 5,962,810Issue of shares 388,898 - 388,898Loss for the period (802,314) (802,314)Balance at 31 December 2006 2,850,426 3,395,328 992,290 (1,688,650) 5,549,394Loss for the period (2,237,924) (2,237,924)Balance at 30 June 2007 2,850,426 3,395,328 992,290 (3,926,574) 3,311,470 Consolidated Cash Unaudited Restated RestatedFlow statement 6 months to 6 months to Year to 30 Jun 2007 30 Jun 2006 31 Dec 2006 £ £ £ Net cash used in operating activities (1,248) (29,025) (165,437) ------ ------ ------Investing activities Interest received 3,494 5,905 9,134Purchase of property, plant and equipment - - (640)Purchase of investments - (705,849) (978,875)Proceeds on property, plant and equipment - 2,050 2,399 ------ ------ ------Net cash from/(used in) investing activities 3,494 (697,894) (967,982) ------ ------ ------Financing activitiesProceeds on issue of shares - - 252,399Proceeds on issue of convertible loan notes - 1,023,500 1,123,499 ------ ------ ------Net cash from financing activities - 1,023,500 1,375,898 ------ ------ ------ Net increase in cash and cash equivalents 2,246 296,581 242,479Cash and cash equivalents at beginning ofperiod 313,068 70,589 70,589 ------ ------ ------Cash and cash equivalents at end of period 315,314 367,170 313,068 ------ ------ ------ Notes to the interim results 1 Basis of preparation The information relating to the six month period ended 30 June 2007 is unauditedand has not been reviewed by the Auditors. These statements have been preparedunder International Financial Reporting Standards ("IFRS").The informationrelating to the year ended 31 December 2006 is extracted from the auditedaccounts of the Company, which have been filed at Companies House and on whichthe auditors issued an unqualified opinion, and adjusted for the impact of IFRS.The IFRS adjustments are unaudited and have not been reviewed by the Auditors. Investements are reflected at fair value by reference to quoted market prices.The convertible loan note has been split between the liability element andequity component in accordance with the terms of the issue. The financial information relating to the six month period ended 30 June 2007does not constitute statutory accounts within the meaning of Section 240Companies Act 1985. The financial information contained in this report wasapproved by the Board of Directors on 31 August 2007. 2 Earnings/(loss) per share Earnings/(loss) per share is based on the loss after tax of £2,237,924 (30 June2006: £1,903,042 profit) on 57,008,527 ordinary shares (30 June 2006:49,230,567) being the weighted average number of ordinary shares in issue in theperiod ended 30 June 2007. There is no dilutive effect of options on the resultsfor the six month period ended 30 June 2007. 3 Dividend The directors do not recommend the payment of an interim dividend. 4 Interim Results Copies of the Interim Results are available on the Company's web site,www.commoditygrowth.com, or from the Company's registered office, 197 ProvidenceSquare, London SE1 2DG. Send an email to carol.chen@londonasia.com if you wouldlike a copy of the accounts posted to you. This information is provided by RNS The company news service from the London Stock Exchange