Creon Corporation PLC Audited Results and Issue -3-

The financial statements of the Group and the Company have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRS) issued by the International Accounting Standards Board (IASB) as adopted by European Union.

The financial statements have been prepared on the historical cost basis, except where IFRS requires an alternative treatment. The principal variations from historical cost relate to financial instruments (IAS 39).

At the date of authorisation of the financial statements there were Standards and Interpretations, which have not been applied in the financial information, that were in issue but not yet effective. The directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the financial statements of the Group or the Company, except for additional disclosures when the relevant Standards and Interpretations come into effect.

Going concern

The directors have reviewed the current budgets and cash flow projections for a period of more than 12 months from the date of this report. The forecasts take into account the current cash balances, assume repayment of the outstanding short-term mezzanine loan of GBP80,308 and interest due thereon of GBP25,294 outstanding at 31 January 2011 due to be repaid on or before July 2012 and the net proceeds of the subscription to raise GBP24,000 as set out in the Chairman's report to these financial statements.

Various sources of additional financing have been considered by the board to strengthen the balance sheet, including injecting additional fresh equity, although a final decision regarding the source of financing has not yet been made.

Accordingly the directors have prepared the financial statements on the going concern basis.

2. Loss per share

The basic and diluted loss per share for the year ended 31 January 2011 was 0.18p. The calculation of loss per share is based on the loss of GBP79,638 for the year ended 31 January 2011 and the number of shares in issue during the year of 43,990,545. No options or warrants remain outstanding as of 31 January 2011 and no further shares have been issued since 31 January 2011.

The basic and diluted loss per share for the year ended 31 January 2010 was 0.33p. The calculation of loss per share is based on the loss of GBP146,940 for the year ended 31 January 2010 and the number of shares in issue during the year of 43,990,545.

3. Investment in unquoted preference shares

 
                       Group and Company 
                          2011       2010 
 Cost or valuation         GBP        GBP 
 At 1 February         400,000    400,000 
                       _______    _______ 
 At 31 January         400,000    400,000 
                       _______    _______

The investment in unquoted preference shares represents 400,000 GBP1 non-voting redeemable preference share held in Pinnacle Plus Limited ("Preference Share"). The Preference Share accrues interest at a rate of 7.0 per cent. per annum, payable on the date of redemption, with redemption being at Pinnacle's discretion at any time up to September 2013, upon which date the Preference Share will be automatically redeemed.

4. Loan receivables

 
                                       2011       2010 
                                        GBP        GBP 
 Balance brought forward            110,000          - 
 New loans advanced in the year           -    200,000 
 Loans repaid                      (29,692)   (90,000) 
                                     ______     ______ 
 Balance carried forward             80,308    110,000 
                                     ______     ______

As at 6 July 2011, the amount of the loan advanced in the year that remained receivable by the Company had been reduced to GBP67,738 through further repayments in accordance with the terms of the loan.

5. Share capital

 
                                                2011        2010 
                                                 GBP         GBP 
 Authorised 
 100,000,000 ordinary shares of 1p each    1,000,000   1.000,000 
 
 Allotted, called up and fully paid 
 43,990,545 ordinary shares of 1p each       439,904     439,904

No warrants or options were issued during the financial year or remained outstanding for exercise post 31 January 2011.

The Company has today announced that it has raised GBP24,000 through the issue of 200,000 new ordinary shares of 1 pence each through a subscription to existing shareholders ("Subscription Shares"). Application has been made for the Subscription Shares to be admitted to trading on AIM and trading in the Subscription Shares is expected to begin on 13 July 2011.

The Company's Report and Accounts for the year ended 31 January 2011 will be posted to shareholders today and the full report is available to view and download from the Company's website at www.creoncorporation.com

For further information please contact:

Creon Corporation Plc Guus Berting +44 (0)20 7752 0215

Daniel Stewart & Company Plc Oliver Rigby +44 (0)20 7776 6550

GTH Media Relations Toby Hall/ Christian Pickel +44 (0)20 3103 3900

This information is provided by RNS

The company news service from the London Stock Exchange

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