5th Jun 2009 07:00
Viridas PLC
Preliminary results for the 10 months ended 31st December 2008
Viridas PLC, a company planning to develop on 30,000 Hectares of idle land jatropha plantations in Brazil to produce EU compliant sustainable jatropha as a dedicated energy crop for the production of biodiesel and biomass is pleased to announce its preliminary results for the 10 months ended 31st December 2008.
Stanley Wootliff, Chairman of Viridas PLC commented:
"There is a significant opportunity in establishing a business which addresses the growing EU demand for compliant sustainable biodiesel and biomass. We have made great progress in 2008 in establishing our jatropha business and now look forward to securing future funding to take the project to the next stage."
For further information please contact:
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Viridas plc: |
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Stanley Wootliff, Executive Chairman |
0113 2350632 |
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FinnCap: |
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Matthew Robinson |
0207 600 1658 |
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Pelham Public Relations: |
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Chelsea Hayes |
020 7743 6675 |
CHAIRMAN'S STATEMENT 2009
It has been a busy year for the Group, as it successfully completed its withdrawal from its legacy textile trading activities and continued to invest in developing its jatropha business to become owners and managers of mechanised commercial jatropha plantations in Brazil. We believe that jatropha will achieve full acceptance as the preferred dedicated energy crop in the European Union and that our business model which has sustainability at its core, will be able to meet the sustainability standard required for biofuel as set out in the EU Renewable Directive.
Change of Year End
During the period the Group's year end was moved to 31st December so as to be co-terminus with that of the Brazilian subsidiary. In Brazil it is a statutory requirement to have a 31st December year end. Consequently, this report covers a 10 month period to 31st December 2008.
Operational Review
In the period under review we successfully completed the planned winding down of all the Group's textile trading activities.
Group operating losses for the period ended 31st December 2008, before exceptional items of £127,404 (Year to 29th February 2008: £436,924) which related to stock write offs and compensation for loss of office, amounted to £410,858 (2008: £466,304)
Also included in operating losses was the ongoing costs of £266,923 associated with the Group's jatropha project in Brazil.
A retained loss of £622,117 (Year to 29th February 2008 £931,018) has been transferred to reserves. Net assets at the period end stood at £405,973 (February 2008: £946,983)
Jatropha and Brazil - the opportunity
Jatropha is a perennial non-food vegetable plant providing oil used in the production of bio-diesel for the transport industry, and biomass for the power generating industry. It has the potential to become the world's key dedicated energy crop. Brazil is the ideal country to grow jatropha due to its climatic conditions, long tradition of industrial agriculture and large tracts of available idle land, that isn't currently suitable for agricultural purposes. Viridas intend to take advantage of this opportunity to build an eco-friendly, financially successful business that also fulfils our commitment to the principle of socially responsible investment.
During the period Viridas continued its research into jatropha, and completed its business plan for a fully mechanised industrial scale jatropha growing business, producing biofuel in both a sustainable and cost effective way. In April it signed an exclusive strategic partnership agreement with INEOS Enterprises, a subsidiary of the world's third largest chemical company. Following eight months of further development work with INEOS, in December 2008 this agreement was superseded by a 10 year jatropha oil supply and development agreement, in which INEOS has undertaken to purchase Viridas's total planned output based on market prices.
On 23rd February 2009 we announced the signing of an agronomy development and farm management contract with Cazenave Y Asociados S.A., a leading South American Agribusiness management and consulting company. Cazenave has been working with Viridas for over a year to develop a jatropha oil which meets the EU sustainability and Greenhouse Gas emission requirements for biofuels and biomass for the power generating industry. The contract covers the future development of the planned plantation in Bahia, Brazil and general consultancy support.
Subject to the raising of further funds later in 2009, Viridas will embark on the third stage of their strategic plan with the purchasing and planting out of 250 Hectares to establish a base farm as a platform from which to launch the fourth stage of the project, the acquiring and planting out with jatropha trees of 30,000 hectares of idle land (120 Sq. Mls), to produce 60,000 tonnes of crude jatropha oil annually pre-sold to Ineos Enterprises, together with 240,000 tonnes of biomass for the power generating industry.
Future Funding
The Company is currently in discussions with a number of potential investors regarding the provision of funding to progress the jatropha project. In order to enable the Company to achieve such funding it is necessary to obtain the approval of shareholders to our investment strategy, to increase the authorised share capital and to give the Directors the necessary authority to allot and issue new Ordinary Shares.
For this purpose a General Meeting will be held immediately after the Annual General Meeting at which the appropriate resolutions will be put to shareholders. You will find enclosed with the Report and Accounts a separate letter which incorporates the Notice for such General Meeting.
Prospects
Driven by Geopolitical, Environmental and Peak Oil concerns in December 2008 the European Parliament ratified legislation that will lead to a five fold increase in the use of biofuels in transportation by 2020. In April 2009 the UK Energy Department imposed a new regime that awards generous subsidies to companies that produce power using biomass instead of coal or gas that is likely to lead to a rush of proposed new biomass plants across the country.
We believe Viridas has already established a good reputation in the renewable energy industry as a knowledgable and important potential grower of jatropha as a leading dedicated energy crop. The signing of the 10 year jatropha oil supply and development agreement with INEOS Enterprises enables us to pursue a common goal to develop leading positions within the biodiesel supply chain, whilst at the same time producing biomass for the power industry.
Jatropha is the seed to the Company's future and an exciting, sustainable, non-food 'Green' energy crop for an energy hungry world. We are now putting in place the foundations for a highly credible and successful business which has the potential to generate substantial rewards for shareholders well into the 21st century.
Great enthusiasm for the project is shared by all your Directors and we look forward to reporting further progress.
S J Wootliff
CHAIRMAN
Consolidated income statement
For the period ended 31 December 2008
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Note |
Period ended 31 December 2008 |
Year ended 29 February 2008 |
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£ |
£ |
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Revenue |
- |
5,303,954 |
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---------- |
---------- |
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Operating loss |
(439,857) |
(903,228) |
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Finance income |
5,972 |
8,470 |
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Finance expense |
(18,000) |
(69,211) |
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---------- |
---------- |
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Loss before taxation |
(451,885) |
(963,969) |
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Taxation |
- |
32,951 |
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---------- |
---------- |
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Loss for the period from continuing operations |
2 |
(451,885) |
(931,018) |
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Loss for the period from discontinued operations Loss for the period |
2 |
(170,232) --------------- (622,117) --------------- |
- --------------- (931,018) -------------- |
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Loss per share |
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- Basic and diluted continuing operations
- Basic and diluted discontinued operations |
3
3 |
(1.86p) (0.69p) |
(4.13p) - |
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-Total basic and diluted |
3 |
(2.55p) |
(4.13p) |
Consolidated statement of changes in shareholders' equity
For the period ended 31 December 2008
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Share Capital |
Share Premium |
Capital Redemption Reserve |
Translation Reserve |
Revaluation Reserve |
Retained Earnings |
Total Equity |
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Balance at 1 March 2007 |
1,991,196 |
1,906,229 |
27,000 |
(12,708) |
84,960 |
(2,765,187) |
1,231,490 |
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Shares issued |
444,600 |
111,150 |
- |
- |
- |
- |
555,750 |
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Cost of shares issued |
- |
(10,040) |
- |
- |
- |
- |
(10,040) |
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Foreign exchange differences |
- |
- |
- |
100,801 |
- |
- |
100,801 |
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Realisation of revaluation reserve |
- |
- |
- |
- |
(84,960) |
84,960 |
- |
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Total recognised loss for the year |
- |
- |
- |
- |
- |
(931,018) |
(931,018) |
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Balance at 29 February 2008 |
2,435,796 |
2,007,339 |
27,000 |
88,093 |
- |
(3,611,245) |
946,983 |
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Foreign exchange differences |
- |
- |
- |
81,107 |
- |
- |
81,107 |
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Total recognised loss of the year |
- |
- |
- |
- |
- |
(622,117) |
(622,117) |
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------------ |
----- |
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------------ |
----------- |
------------ |
------ |
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Balance at 31 December 2008 |
2,435,796 |
2,007,339 |
27,000 |
169,200 |
- |
(4,233,362) |
405,973 |
Consolidated balance sheet
As at 31 December 2008
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31.12.2008 |
29.02.2008 |
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£ |
£ |
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ASSETS |
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Non-current assets |
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Goodwill |
- |
- |
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Other intangible assets |
- |
- |
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Property, plant and equipment |
3,679 |
29,317 |
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3,679 |
29,317 |
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---------- |
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Current assets |
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Inventories |
- |
968,524 |
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Trade and other receivables |
277,973 |
687,772 |
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Cash and cash equivalents |
1,083,792 |
1,456,970 |
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---------- |
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1,361,765 |
3,113,266 |
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---------- |
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Total Assets |
1,365,444 |
3,142,583 |
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LIABILITIES |
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Non-current liabilities |
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Obligations under finance leases |
- |
2,147 |
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Bank loans |
- |
- |
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Deferred tax liability |
- |
- |
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---------- |
---------- |
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- |
2,147 |
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---------- |
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Current liabilities |
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Trade and other payables |
193,444 |
911,781 |
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Income tax payable |
49,809 |
36,290 |
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Obligations under finance leases |
3,220 |
6,443 |
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Bank loans |
384 |
5,644 |
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Bank overdraft |
712,614 |
1,233,295 |
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959,471 |
2,193,453 |
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Total liabilities |
959,471 |
2,195,600 |
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Net assets |
405,973 |
946,983 |
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====== |
====== |
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EQUITY |
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Share capital |
2,435,796 |
2,435,796 |
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Share premium account |
2,007,339 |
2,007,339 |
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Capital redemption reserve |
27,000 |
27,000 |
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Revaluation reserve |
- |
- |
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Translation reserve |
169,200 |
88,093 |
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Retained deficit |
(4,233,362) |
(3,611,245) |
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---------- |
---------- |
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Total equity |
405,973 |
946,983 |
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Consolidated cash flow statement
For the period ended 31 December 2008
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Note |
31.12.2008 |
29.02.2008 |
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£ |
£ |
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Cash flows from operating activities |
|||
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Loss before tax |
(550,290) |
(963,969) |
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Depreciation of property, plant and equipment |
8,299 |
43,867 |
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Impairment of property, plant and equipment |
- |
57,919 |
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Loss/(profit) on disposal of property, plant and equipment |
5,684 |
(55,924) |
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Amortisation of goodwill and other intangible assets |
- |
178,506 |
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Interest receivable |
(5,972) |
(8,470) |
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Interest payable |
18,000 |
69,211 |
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Decrease in inventories |
968,524 |
39,892 |
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Decrease/(increase) in trade and other receivable |
409,799 |
(210,684) |
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(Decrease)/increase in trade and other payables |
(718,337) |
459,684 |
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Foreign exchange movement |
80,669 |
98,875 |
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---------- |
---------- |
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|
216,376 |
(291,093) |
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Interest paid |
(18,000) |
(69,211) |
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Tax paid |
(58,308) |
(40,671) |
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---------- |
---------- |
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Net cash from operating activities |
140,068 |
(400,975) |
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---------- |
---------- |
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Cash flows from investing activities |
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Interest received |
5,972 |
8,470 |
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Sale of property, plant and equipment |
12,434 |
506,717 |
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Purchase of property, plant and equipment |
(341) |
(20,856) |
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---------- |
---------- |
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Net cash from investing activities |
18,065 |
494,331 |
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---------- |
---------- |
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Cash flows from financing activities |
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Issue of shares |
- |
545,710 |
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Repayment of loans |
(5,260) |
(313,700) |
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Repayment of finance leases |
(5,370) |
(6,443) |
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---------- |
---------- |
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Net cash (used in)/generated from financing activities |
(10,630) |
225,567 |
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Net increase in cash and cash equivalents |
147,503 |
318,923 |
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Cash and cash equivalents at the beginning of the year |
223,675 |
(95,248) |
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---------- |
---------- |
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Cash and cash equivalents at the end of the year |
371,178 |
223,675 |
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---------- |
---------- |
Notes
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1. Basis of preparation
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The financial information set out in this announcement does not constitute the statutory accounts of the Group for the period ended 31 December 2008. The auditors reported on those accounts; their report was unqualified but contained a modified audit opinion relating to the period ended 31 December 2008 and did not contain a statement under section 237 (2) or (3)of the Companies Act 1985. The statutory accounts for the period ended 31 December 2008 will be delivered to the registrar of Companies following the Company’s Annual General Meeting.
Whilst the financial information included in this preliminary announcement has been computed in accordance with International Financial Reporting Standards (IFRS), this announcement in itself does not contain sufficient information to comply with IFRS.
Going Concern
The financial statements have been prepared on a going concern basis under the historical cost convention.
As described in the Chairman’s Statement, during the year, the Group has ceased all of its former trading activities and is now focusing on the research into Jatropha and the development of Jatropha plantations in Brazil.
Ongoing overheads have been significantly reduced and comprise only the remuneration of the remaining Directors, rental costs, certain adviser costs and listing costs.
The Group is currently in discussions with a number of potential investors regarding the provision of funding to progress the Jatropha project. Confirmation of that funding will not be obtained prior to the publication of these financial statements, but the Directors are optimistic, based on discussions to date, that funding will be made available.
In the event that funding is not made available, the forecasts prepared by the Directors indicate that the Group has sufficient cash resources to enable it to satisfy the current overhead base until 30 September 2009. Given all former activities have ceased and the Directors will not commit to any future projects or expenditure not reflected in the cash flow forecast until sufficient funding is secured, the Directors are of the view that they can satisfy all remaining overhead costs, from existing cash resources.
The Directors therefore believe that the going concern basis is appropriate for the preparation of the financial statements as they are in a position to meet all its liabilities as they fall due.
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2. Segmental information |
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During the period to 31 December 2008,the Directors regard the Group as carrying on one class of business, being distribution of both underwear and Ninaclip products. No segmental information has therefore been provided other than geographical as set out below. As noted in the Chairman's statement this business has ceased at the period end and the Directors are now exploring the Bio-Fuel market. The directors consider all trading business to be discontinued, but anticipate that costs will be incurred going forward relating to administrative expenses and finance income or costs. In accordance with IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations" the income and expenditure account has been split between discontinued activities and continuing activities. All continuing costs are included with the United Kingdom segmental information.
Results of continuing and discontinued activities
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3.
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Loss per share
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The loss per share is based on the loss of £ 622,117 (29 February 2008: loss of £931,018) and 24,357,956 (29 February 2008: 22,523,841) ordinary shares of 10p each, being the weighted average number of shares in issue during the period. The weighted average number of ordinary shares for the period ended 31 December 2008 assumes that all shares have been included in the computation based on the weighted average number of days since issuance.
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31.12.2008 |
29.02.2008 |
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£ |
£ |
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Loss attributable to equity holders of the Group |
(622,117) |
(931,018) |
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Weighted average number of ordinary shares in issue |
24,357,956 |
22,523,841 |
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Basic & diluted loss per share (pence) |
(2.55) |
(4.13) |
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The share options in issue are anti-dilutive in respect of the basic loss per share calculation and have therefore not been included. On the same basis as above the loss per share for continuing activities is 1.86 pence and for discontinued activities is 0.69 pence. |
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4.
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Annual Report
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The annual report will be mailed to shareholders on or around 5th June 2009. Copies will be available after that date from:The Secretary, Viridas P.L.C., 647 Roundhay Road, Leeds, West Yorkshire LS8 4BA or to download from the Company’s website: www.viridasplc.com
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5.
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Annual General Meeting
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The Annual General Meeting will be held at 6 New Street Square, New Fetter Lane, London, EC4A 3BF on 30th June 2009 at 10.00 a.m.
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