31st Dec 2007 09:08
Tejoori Limited31 December 2007 31 December 2007 Tejoori Limited Preliminary results for the financial year ended 30 June 2007 Tejoori Limited ("the Company" or "Tejoori"), the Dubai-based, AIM-quotedinvestment company established to make Shari'a-compliant investments, announcesits preliminary results for the financial year ended 30 June 2007 ("thePeriod"). Operational highlights • In July 2006, Tejoori invested USD 21.5 million in a "Musharaka"agreement with Omniyat Group which it closed on 17 December 2006 and used theproceeds receivable to acquire a 25% equity stake in Omniyat Properties ElevenLimited (OPEL). The closing of the Musharaka agreement resulted in approximately40% profit. OPEL was established by the Musharaka partners to acquirereal-estate development projects in Dubai, UAE. • In June 2007 Tejoori surrendered its 25% stake in OPEL, valued at USD30.5 million, in exchange for a deposit plus premium on three plots in theLagoons Sama Dubai in Ras Al Khoor area costing USD 86.5 million. The fair valueof these plots as at 30 June 2007 was USD 103.1 million. Of the three plots, twoplots are mixed use and one plot is zoned for commercial use. The balance of theconsideration due on the hand-over is USD 56.0 million. • In December 2006, Tejoori acquired 16.7% of renewable energy company,BEKON, for EUR 6 million. BEKON specializes in designing, building and operatingwaste fermentation bio-gas plants producing 100% availability on the waste sideand 99.9% on the energy production side. Due to the successful sale of its stakein its pilot plant to the city of Munich after a successful three-years trialoperation BEKON has secured a pipeline of contracts in Europe and worldwide. • Tejoori invested in a venture capital deal for development of a coldgas generated inflation technology prototype designed specifically for theMercedes E Class Airbag System. Currently the prototype is being tested andcertified for mass production phase. • Several key appointments in the period include:• Ilke Toklu, General Manager• Yaqub Al Yousuf, Member of the Board Financial Highlights • Profit before tax for the period USD 3.54 million equating to a return on equity of 8.42% • Basic earnings per share of USD 0.13 for the period (2006: loss of USD 0.16 per share) • NAV per share of USD 1.51 per share (30 June 2006: USD 1.33 per share) Commenting, Sheikh Fawaz Bashraheel, Chairman of Tejoori, said: "We are pleased with our first full operational year financial results. Given Dubai's booming real estate sector, our investment strategy has focused onseizing opportunities in this sector, a strategy which we believe will befavourable to you as shareholders of Tejoori. For diversification and long term focus we continue to believe in the long termgrowth prospects of environmental technologies and the automotive sector,sectors which we have made investments in. During the year we invested in twoadditional exciting ventures: BEKON and Air Bag JV Martin Hage. Europe's emerging environmental regulations provide for increasing interest inrenewable energy plants for municipalities and we firmly believe that our homeregion, the Gulf, can benefit greatly from this technology in the future aswell. Our investment in the joint venture for the development of new generation airbag inflation technology is aimed at creating new levels of passenger security. All of Tejoori's investments are Shari'a-compliant and demonstrate socialresponsibility. The markets in which we operate remain competitive but they continue to offersubstantial opportunity. I am confident that this year will be one of furtherprogress for Tejoori as we seek to deliver long term prosperity for allstakeholders." Enquiries: Tejoori LimitedMurad Hussein -Dubai, UAE +971 (0)4 306 9500 www.tejoori.com Chairman's Statement Welcome to Tejoori's preliminary results for the year ended 30 June 2007 - thefirst full financial year of the company since inception in September 2005. It's been a busy year for Tejoori, with new investments, new recruits and anewly-sharpened focus. Most importantly, I'm delighted to report that we haveposted a profit from our operations. As at 30 June 2007, the book value of Tejoori's investments amounted to USD 39.7million. For the year ended 30 June 2007, Tejoori recorded a net profit of USD3.54 million, equating to basic earnings per share of USD 0.13 per share (2006:loss of USD 01.6 per share). The net asset value of the company at the end ofthe period was USD 42.00 million, equivalent to USD 1.51 per share. Tejoori's profitability was driven by gains in its "Musharaka" agreement withOmniyat Group which it closed on 17 December 2006 and used the proceedsreceivable to acquire a 25% equity stake in Omniyat Properties Eleven Limited(OPEL). The closing of the Musharaka agreement resulted in approximately 40%profit. In June 2007 Omniyat Properties Eleven Limited (OPEL) was dissolved by theshareholders dissolution agreement. The assets of the company were distributedto the shareholders in which Tejoori surrendered its 25% stake in OPEL, inexchange for a deposit plus premium on three plots in the Lagoons Sama Dubai inRas Al Khoor area costing USD 86.5 million. The fair value of these plots as at30 June 2007 was USD 103.1 million. Of the three plots, two plots are mixed useand one plot is zoned for commercial use. The balance of the consideration dueon the hand-over is USD 56.0 million. During the year, Tejoori acquired 16.7% of renewable energy company, BEKON forEUR 6 million. BEKON specializes in designing, building and operating wastefermentation bio-gas plants producing 100% availability on the waste side and99.9% on the energy production side. Due to the successful sale of its stake inits pilot plant to the city of Munich after a successful three-years trialoperation BEKON has secured a pipeline of contracts in Europe and worldwide. During 2006, Tejoori invested in a venture capital deal for development of acold gas generated inflation technology prototype designed specifically for theMercedes E Class Airbag System. Currently the prototype is being tested andcertified for mass production phase. Tejoori continues to invest significantly in its people to build a well-balancedmanagement team with extensive leadership, investment and operationalexperience. In March 2007, Tejoori appointed Mrs Ilke Toklu as the new ActingGeneral Manager. Outlook Having built a strong, committed management team, Tejoori is now firmlyprogressing along its operational phase. Tejoori is committed to achievingattractive returns within prudent levels of risk and liquidity. We strive tofurther diversify our portfolio while maintaining a disciplined investmentapproach to include emerging and fast growing industries, as well as traditionaland established sectors. The markets in which we operate remain competitive but they continue to offersubstantial opportunity. I am confident that this year will be one of furtherprogress for Tejoori as we seek to deliver long term prosperity for allstakeholders. Sheikh Fawaz Bashraheel,Chairman of the Board Tejoori Limited TEJOORI LIMITED BALANCE SHEETAs at 30 June 2007 As at 30 June Notes 2007 2006 USD USDASSETSCash and cash equivalents 5 2,500,524 31,024,732Available-for-sale investment 6 7,570,187 6,811,618Islamic investments 7 - 5,010,924Trade and other receivables 8 4,038,919 37,756Advance towards acquisition of investment property 9 30,643,936 -Property and equipment 10 42,080 - --------------------- -------------------Total assets 44,795,646 42,885,030 ========== ========== LIABILITIES AND EQUITY LiabilitiesDue to shareholders 11 1,754,400 5,291,277Trade and other payables 12 1,033,861 492,677 ------------------- --------------------Total liabilities 2,788,261 5,783,954 -------------------- --------------------EquityShare capital 13 277,089 277,089Share premium 14 41,286,207 41,286,207Share warrants reserve 13 1,370,000 -Accumulated losses (925,911) (4,462,220) -------------------- --------------------Total equity 42,007,385 37,101,076 -------------------- --------------------Total liabilities and equity 44,795,646 42,885,030 ========== ========= = TEJOORI LIMITED INCOME STATEMENTFor the period 1 July 2006 to 30 June 2007 Period from 22 September 2005 to 30 Year ended 30 June June 2006 2007 Notes USD USDIncomeReturn on Islamic investments 16 346,800 206,854Gain on Musharaka agreement 17 8,706,435 -Other income 18 376,555 67,398 ------------------- -------------------Total income 9,429,790 274,252 ExpensesLoss on write-off of property and equipment (9,492) -Write off of advance to Martin Hage 8 (396,592) -Administrative and other expenses 19 (5,487,397) (4,736,472) ------------------ -------------------Profit/(loss) for the year/period 3,536,309 (4,462,220) =============== =============== Earnings/(loss) per share - basic 20 0.13 (0.16)Earnings/(loss) per share - diluted 20 0.12 (0.16) ============ ============ TEJOORI LIMITED STATEMENT OF CHANGES IN EQUITYFor the period 1 July 2006 to 30 June 2007 Share warrants Share capital Share premium reserve Accumulated losses Total Notes USD USD USD USD USD Issue of sharecapital at a premium 13,14 277,089 41,286,207 - - 41,563,296 Loss for the period - - - (4,462,220) (4,462,220) -------------- -------------------- ----------------- ------------------- ----------------At 30 June 2006 277,089 41,286,207 - (4,462,220) 37,101,076 Share warrants 13 - - 1,370,000 - 1,370,000 Profit for the year - - - 3,536,309 3,536,309 -------------- ---------------------- ----------------- ------------------- -------------------At 30 June 2007 277,089 41,286,207 1,370,000 (925,911) 42,007,385 ======== =========== ========== ========== =========== TEJOORI LIMITED CASH FLOW STATEMENTFor the period 1 July 2006 to 30 June 2007 Period from 22 Year September 2005 ended 30 June to 30 2007 June 2006 Note USD USDOperating activities 3,536,309 (4,462,220) Profit/ (loss) for the year/periodAdjustments for:Gain on Musharaka agreement (8,706,435) -Share option provision 1,370,000 -Depreciation 12,462 -Loss on write-off of property and 9,492 -equipment --------------------------- --------------------------Operating cash flows before changes inworking capital (3,778,172) (4,462,220)Changes in working capital:Available-for- sale investment (7,570,187) (6,811,618)Islamic investments 5,010,924 (5,010,924)Investment in Musharaka agreement andadditional payment for investmentproperty (15,125,883) -Trade and other receivables (4,001,163) (37,756)Trade and other payables 541,184 492,677 ------------------------------- -------------------------------Net cash used in operating activities (24,923,297) (15,829,841) ------------------------------ ------------------------------Investing activitiesPurchase of property and equipment (64,034) - -------------------------------- ------------------------------Financing activitiesFinancial liabilities (3,536,877) 5,291,277Proceeds from issue of share capital - 41,563,296 -------------------------------- ---------------------------------Net cash (used in)/generated fromfinancing activities (3,536,877) 46,854,573 -------------------------------- --------------------------------Net (decrease)/increase in cash and cash (28,524,208)equivalents 31,024,732Cash and cash equivalents, beginning of 31,024,732the year/ period - ---------------------------------- ---------------------------------Cash and cash equivalents, end of theyear/period 5 2,500,524 31,024,732 ========== ========== The summarised financial statements appearing above should be read inconjunction with the audited financial statements, in respect of whichPricewaterhouseCoopers expressed an unqualified audit opinion dated 28 December2007, and from which the summarised financial statements have been extracted. 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