RNS Number:0538D
Commodity Growth PLC
31 August 2007
Chairman's Statement
Highlights
x Net assets at 30 June 2007 of #3.8 million, equal to 6.7p per share
x Operating profit of #61,211 (30 June 2006: loss #105,325)
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 better
performance by our wholly owned UK education business, Bournemouth Educational
Centre Ltd.
The accounts have been prepared under International Financial Reporting
Standards ("IFRS"), and historical results have been restated to IFRS. This has
resulted in net assets for June 2006 and December 2006 being restated from #1.50
to #6.57 million, and #1.39 to #6.11 million, primarily as a result 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 to
market value in valuing CEG and DBI, in line with the strategy of disposing of
the education assets as quickly as possible to focus on the new investment
strategy. This has resulted in an accounting charge of #2,274,276, being the
difference 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 accounting
charge has resulted in an overall loss for the period of #2,295,348.
Outlook
Shareholders approved the expansion of the Group's business strategy at the AGM
held in July to cover investing in businesses that are involved in commodities,
commodity trading, specialist materials and related industries, including
industries that are dependent on, or significant consumers of, such commodities
and materials.
The new Chief Executive is assembling a small team to assist in the
implementation of the strategy. Potential investments have been identified and
we are currently looking at ways to raise the necessary funds.
James Holmes
Chairman
31 August 2007
Consolidated Unaudited Restated Restated
Income Statement 6 months to 6 months to Year to
30 Jun 2007 30 Jun 2006 31 Dec 2006
# # #
Revenue 294,119 213,320 366,424
Cost 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 1,676,602
Interest received 3,494 5,905 30,597
Finance costs (85,777) (70,111) (161,878)
------ ------ ------
Profit/(loss) before
taxation (2,295,348) 1,866,892 1,013,232
Taxation - (121) (121)
------ ------ ------
Profit/(loss) after
taxation (2,295,348) 1,866,771 1,013,111
Basic earnings/(loss)
per share (8.1p) 7.9p 2.1p
Consolidated Unaudited Restated Restated
Balance Sheet 6 months to 6 months to Year to
30 Jun 2007 30 Jun 2006 31 Dec 2006
# # #
Non current assets
Goodwill - 359,760 -
Property, plant and equipment 9,910 18,246 14,398
------ ------ ------
9,910 378,006 14,398
------ ------ ------
Current assets
Investments 3,631,710 5,889,634 5,905,986
Trade and other receivables 261,952 129,219 177,858
Cash 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 liabilities
Trade and other payables (405,155) (190,188) (302,231)
------ ------ ------
Net current assets 3,803,821 6,195,835 6,094,681
------ ------ ------
Non current liabilities
Deferred tax (3,694) (3,694) (3,694)
------ ------ ------
Total liabilities (408,849) (193,882) (305,925)
------ ------ ------
Net assets 3,810,037 6,570,147 6,105,385
------ ------ ------
Share capital 2,850,426 2,461,528 2,850,426
Share premium 3,395,328 3,395,328 3,395,328
Convertible loan notes 1,635,898 1,635,898 1,635,898
Retained loss (4,071,615) (922,607) (1,776,267)
------ ------ ------
Total Equity 3,810,037 6,570,147 6,105,385
------ ------ ------
Consolidated Statement of Share capital Share premium Convertible loan Retained loss Total
Changes in Equity notes
Balance at 1 June 2006 2,239,228 3,284,177 1,635,898 (2,789,378) 4,369,925
Issue of shares 222,300 111,151 333,451
Profit for the period 1,866,771 1,866,771
Balance at 30 June 2006 2,461,528 3.395,328 1,635,898 (922,607) 6,570,147
Issue of shares 388,898 - 388,898
Loss for the period (853,660) (853,660)
Balance at 31 December 2006 2,850,426 3,395,328 1,635,898 (1,776,267) 6,105,385
Loss for the period (2,295,348) (2,295,348)
Balance at 30 June 2007 2,850,426 3,395,328 1,635,898 (4,071,615) 3,810,037
Consolidated Unaudited Restated Restated
Cash Flow 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 9,134
Purchase 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 activities
Proceeds on issue of shares - - 252,399
Proceeds 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 2,246 296,581 242,479
Cash and cash equivalents at
beginning of period 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 unaudited
and has not been reviewed by the Auditors. These statements have been prepared
under International Financial Reporting Standards ("IFRS").The information
relating to the year ended 31 December 2006 is extracted from the audited
accounts of the Company, which have been filed at Companies House and on which
the 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.
The financial information relating to the six month period ended 30 June 2007
does not constitute statutory accounts within the meaning of Section 240
Companies Act 1985. The financial information contained in this report was
approved by the Board of Directors on 31 August 2006.
2 Earnings/(loss) per share
Earnings/(loss) per share is based on the loss after tax of #2,295,348 (30 June
2006: #1,866,771 profit) on 28,504,263 ordinary shares (30 June 2006:
23,511,858) being the weighted average number of ordinary shares in issue in the
period ended 30 June 2007. There is no dilutive effect of options on the results
for the six month period ending 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 Providence
Square, London SE1 2DG. Send an email to carol.chen@londonasia.com if you would
like a copy of the accounts posted to you.
This information is provided by RNS
The company news service from the London Stock Exchange
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