Half Yearly Report

QUORAM PLC

INTERIM REPORT

Six months ended 31 December 2014

At December 2014 the Group's net assets were just under 0.29 pence per share, an increase from 0.26 pence in June 2014 and 0.25 pence in December 2013. Cash balances declined from £1.73m to £1.63m during the period.

During the period the Group completed an extended process of rationalization, marked by the closure of the Group's office and its US subsidiaries following expiry of the final Solitaire licenses earlier in 2014. A consequential reclassification of the Group's foreign exchange translation reserve resulted in an accounting gain, which is recognised in the Income Statement under other income.

Administration costs fell by 76% year on year to £68k (2013: £284k). The higher 2013 expenses were somewhat offset by other revenues of £90k relating to the provision of services to third party clients. A disciplined approach to costs will continue, however the potential for further reductions is limited. Ongoing expenses will depend on levels of activity within the investment portfolio: The low level of ongoing committed expenditure positions the Group with an ability to be patient while still retaining the capability to secure investment opportunities when they arise.

The portfolio return benefited from encouraging progress at Plant Health Care, resulting in an unrealised gain of £363k during the period. Further information on Plant Health Care can be found at its website (www.planthealthcare.com).

During the period Wessex Exploration Plc changed its name to Hague and London Oil Plc following the purchase of Hague and London Oil BV for shares. Quoram's shareholding in the enlarged company has been diluted to 3.84%, which was valued at £111k and is reported as an asset held for sale on the balance sheet.

Given the discount at which the Group's shares trade to net asset value, the board has reviewed the potential for share buybacks as a means of providing liquidity and accreting shareholder value. However, given the need to complete a process of share capital reduction it was concluded that the cost of such an exercise was likely to outweigh the potential benefits.

Outlook

While Quoram benefits from a low cost base and simple corporate structure, it retains the capacity to execute further investment opportunities when they arise on appropriate terms. Combined with a strong liquidity position, the Group is in a robust position and will inform investors of future developments when they arise.

Enquiries :

Quoram Plc

James Ede-Golightly, Chairman +44 (0) 1481738723

WH Ireland Limited (Nominated adviser)

John Wakefield, Corporate Finance +44 (0) 117 945 3470

STRATEGIC REPORT

Strategy and business objectives

Quoram's objectives are to identify investment opportunities offering the potential to deliver value creation to shareholders over the medium to long term, as measured by growth in net asset value (NAV) after adjusting for distributions. Depending on specific circumstances, investments may range from minority shareholdings to the acquisition of wholly owned trading subsidiaries, and such investments may be quoted or unquoted. Acquisitions or investments may be funded through the issue of new Ordinary Shares, debt or from the Group's existing cash resources. The Board will have full discretion to focus the Group's investment resource around those opportunities it has identified as offering the best potential for value creation. The full strategy is set out under section 3 of the circular dated 18 March 2013 which was approved by shareholders at a general meeting held on 11 April 2013.

The Board are actively pursuing opportunities to increase shareholder value.

Results

The profit for the six month period to 31 December 2014 was £1,351k (2013: loss of £778k).

Business Review

A review of the Group's performance and future prospects is contained in the Chairman's Statement on page 2.

Development and performance

The Group's Investments performed well in the first half of the year, with a total unrealised investment gain of £307k.

The board is increasingly focused on identifying a small number of strategic investment opportunities. The board continues to review such opportunities and will update shareholders when further investments are made. With a significant proportion of the balance sheet in cash and a low overhead, the Group is well positioned to capitalise on opportunities as they arise.

Position at year end

The Group finished the period with cash and cash equivalent balances of £1.63 million (2013: £1.76 million). Net assets at 31 December 2014 were £2.76 million compared to £2.43 million at 31 December 2013.

Key performance indicators

The key indicators of performance for the business in its current stage are the financial performance of its Portfolio Investments. The Group recognised an unrealised gain of £307k in the six months to 31 December 2014 compared to an unrealised total comprehensive loss of £590k in the six months to 31 December 2013.

The control of overhead spend is also of high importance to ensure the Group is being managed efficiently. Budgets are monitored closely to ensure adequate financial resources are available to meet financial commitments as they arise. Total administrative expenses for the six month period were £68k compared to £284k in the comparative period.

Net assets per share is an important indicator of the Group's financial performance. The net assets per share increased from 0.25p at 31 December 2013 to 0.29p at 31 December 2014, mainly reflecting the increase in the value of Portfolio Investments held during the period.

Principal risks and uncertainties

The Group considers that the principal risks to achieving its business objectives are as follows:

Market risk

The main risk arising from the Group's operations are market price risk associated with its Portfolio Investment assets. The Director's review and agree policies for managing risk at least annually. The directors believe that they have mitigated these risks as far as reasonably practicable - by maintaining a rigorous investment appraisal and asset monitoring procedure and continually reviewing and seeking to improve such controls as well as business processes and procedures.

Funding

The Group has £1.63 million of cash and cash equivalents as at 31 December 2014. The Directors believe that this is sufficient to allow them to execute the Investment Policy flexibly in the coming years. However, were significant un-foreseen expenses to arise, additional finance may be required. The Board try to mitigate this risk by regularly reviewing budgets and analysing future cash requirements.

On behalf of the Board

James Ede-Golightly

18 March 2015

CONDENSED CONSOLIDATED INCOME STATEMENT

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

The financial statements were approved by the Board of Director's on 18 March 2015 and were signed on its behalf by:

James Ede-Golightly

Chairman

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Accounting policies

Basis of preparation

These condensed half yearly financial statements are for the six month period ended 31 December 2014.

The financial information for the six months ended 31 December 2014 and 31 December 2013 is unaudited. The financial information for the six months ended 31 December 2013 has been amended to reflect the share based payment charge which should have been recognized therefore the loss for the period has been adjusted by £11,000.

IFRS is subject to amendment and interpretation by the International Accounting Standards Board ("IASB") and the IFRS Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission.

The financial information has been prepared on the basis of IFRS that the Directors expect to be applicable as at 30 June 2015, with the exception of IAS 34 Interim Financial Reporting.

Financial information contained in this document does not comprise the Group's statutory financial statements as defined in section 434 of the Companies Act 2006.

The statutory financial statements for the year ended 30 June 2014 have been delivered to the Registrar of Companies. The auditors reported on these financial statements: their report was unqualified, did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006, and did not include references to any matters to which the auditor drew attention by way of emphasis.

2. Liquidation of subsidiary companies

During the period the Group completed an extended process of rationalization resulting in the striking-off of the two US incorporated subsidiaries. The net gains on foreign exchange recognized in relation to the US entities have therefore been reclassified to profit or loss in the period. There are no subsidiary companies as at 31 December 2014 but the results of the former subsidiaries to the date of liquidation are included.

3. Loss per share attributable to the equity shareholders of the Company

The losses and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:

The Company has issued options over 14,675,215 ordinary shares which are potentially dilutive. There is however no dilutive effect of these issued options as the average share price for the period is below the exercise price of the options.

4. Share Capital

5. Related Parties

Consultancy fees were invoiced to ORA Capital Partners Limited (a company controlled by a significant shareholder which at 31 December 2014 held 24.12% of the Company's issued share capital) as follows;

The directors, having consulted the Company's nominated adviser, confirm their opinion that these arrangements, which are with related parties, are fair and reasonable insofar as the interests of shareholders are concerned.

6. Copies of the Interim Report

A copy of this Interim Report is now available on the Company's website at www.quoram.co.uk