28th Sep 2007 07:00
Crescent Hydropolis Resorts PLC27 September 2007 For Immediate Release27 September 2007 Crescent Hydropolis Resorts plc ('the Company') Interim Results Crescent Hydropolis Resorts PLC, the world's leading developer of ultra-luxuryunderwater resort hotels under the Hydropolis design concept, announces itsinterim results for the six month period ended 30 June 2007. The main items ofexpenditure are development costs associated with furthering the Company'sHydropolis project at Qingdao, China, including legal, engineering, technicalfeasibility and travel costs. As reported in the 2006 Annual Report, projectdevelopment costs for Qingdao are largely complete. The Company's local project subsidiary, Crescent Hydropolis Qingdao Limited(CHQ), maintains its operating license from the governmental authorities of theLaoshan District in Qingdao City, China, which license was issued on 23 August2006. The Company's chairman, Mr Joachim Hauser, has led several delegations toChina since 30 June 2007 to meet with Chinese authorities, including visitswhere a major Chinese construction group jointly presented plans with Mr Hauserfor construction of the Hydropolis HydroTower to officials there. The Companyhas entered into discussions with the Chinese construction group to finance theHydroTower's development and the Company's Directors expect to be able to make acomprehensive announcement regarding the terms and conditions of the proposedjoint venture and financing at a future date once agreement is reached. Securing financing for the China project remains the primary focus of theCompany's directors, and we believe a joint venture with a major constructionpartner, such as that envisioned by our cooperation in China, is in the bestinterests of our shareholders. The Company plans to undertake management changes in the coming monthssubsequent to closing the Qingdao project's financing which will serve tostrengthen the Company's capability to manage the Qingdao project whileexpanding new business opportunities. The Company remains committed to obtaining development sites in the Middle East.The Company is currently looking at land sites in three different Middle Eastcountries with the assistance of Sheikh Fawaz Abdullah al Khalifa, who ishelping to secure the land and suitable sources of project finance. The Company had €288,089 in cash as at 30 June 2007. Efforts to raise new equityfor working capital purposes prior to year end continue. 2006 was a challenging year, and the first half of 2007 has continued to be so.With the new developments in China, however, the Directors are confident thatthe Qingdao project will proceed, albeit on a later timetable than thatoriginally envisaged when the project was first proposed. Enquiries: Crescent Hydropolis Resorts PLCMansoor Ijaz 00 44 7717 333 137Deputy Chairman of the BoardMansoor.ijaz@crescent-hydropolis.com Nominated Adviser - Nabarro Wells & Co. LimitedJohn Wilkes INCOME STATEMENT FOR THE PERIOD ENDED 30 JUNE 2007 Audited Note Period Ended Period Ended Year Ended 30 June 30 June 31 December 2007 2006 2006 • • • Management and Project Development Costs 9 1,082,368 125,103 1,263,985Administrative Expenses 159,492 157,731 470,518 _________ _________ _________ Loss on ordinary activities before interest (1,241,860) (282,834) (1,734,503) Interest receivable 5 10,158 30,056 59,118 _________ _________ _________Taxation - - - _________ _________ _________ RETAINED LOSS FOR THE PERIOD (1,231,702) (252,778) (1,675,385) _________ _________ _________ Loss per share Basic and diluted 2 1.5c 0.3c 2.1c ===== ===== ===== All of the above amounts relate to continuing activities. There were no recognised gains and losses other than the results shown above. UNAUDITED BALANCE SHEET AS AT 30 JUNE 2007 Audited 30 June 30 June 31 December 2007 2006 2006 Note • • •ASSETS Non-current assetsIntangible assets 6 40,750,000 40,750,000 40,750,000 _________ _________ _________ Current assetsTrade and other receivables 18,940 2,600 4,912Cash and cash equivalents 288,089 2,395,998 1,609,617 _________ _________ _________ TOTAL ASSETS 41,057,029 43,148,598 42,364,529 ========= ========= =========Equity and Liabilities Shareholders' equityShare capital 3 823,836 810,286 823,836Capital reserves 35,058,130 34,368,282 35,058,130Accumulated losses (5,598,937) (2,944,628) (4,367,235) _________ _________ _________ 30,283,029 32,233,940 31,514,731Non-current liabilitiesLong-term liabilities 7 10,750,000 10,750,000 10,750,000 _________ _________ _________Total non-current liabilities 10,750,000 10,750,000 10,750,000 _________ _________ _________Current liabilities Trade and other payables 24,000 164,658 99,798 _________ _________ _________ Total current liabilities 24,000 164,658 99,798 Total liabilities 10,774,000 10,914,658 10,849,798 _________ _________ _________ TOTAL EQUITY & LIABILITIES 41,057,029 43,148,598 42,364,529 ========= ========= ========= STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 JUNE 2007 Share Capital Accumulated capital reserves losses Total • • • • Balance at 1 January 2006 810,286 34,368,282 (2,691,850) 32,486,718 Loss for the period - - (252,778) (252,778) _________ _________ _________ _________ Balance at 30 June 2006 810,286 34,368,282 (2,944,628) 32,233,940 Issue of share capital 13,550 689,848 - 703,398Loss for period - - (1,422,607) (1,422,607) ________ _________ _________ _________ Balance at 31 December 2006 823,836 35,058,130 (4,367,235) 31,514,731 Loss for period - - (1,231,702) (1,231,702) _________ _________ _________ _________ Balance at 30 June 2007 823,836 35,058,130 (5,598,937) 30,283,029 ========= ========= ========= ======== UNAUDITED CASH FLOW STATEMENT FOR THE PERIOD ENDED 30 JUNE 2007 Audited Period Ended Period Ended Year Ended 30 June 30 June 31 December 2007 2006 2006 • • • Cash Flows from Operating ActivitiesLoss from Operations (1,241,860) (282,834) (1,734,503) _________ _________ _________ Operating Cash Flows before movement in Working Capital (1,241,860) (282,834) (1,734,503) Increase in trade receivables (14,029) (889) (3,201)(Increase)/decrease in trade payables (75,797) 10,109 (54,751) Returns on investments and servicing of financeInterest received 10,158 30,056 59,118 _________ _________ _________ Net cash inflow from returns on investments and servicing of finance 10,158 30,056 59,118 _________ _________ _________ Cash flows from financing activitiesShare capital issued (net of costs) - - 703,398 _________ _________ _________ Net Cash Flows from Financing Activities - - 703,398 _________ _________ _________ Decrease in cash (1,321,528) (243,558) (1,029,939) Cash and cash equivalents brought forward 1,609,617 2,639,556 2,639,556 _________ _________ _________ Cash and cash equivalents carried forward 288,089 2,395,998 1,609,617 ======== ======== ======== NOTES TO INTERIM REPORT FOR THE PERIOD ENDED 30 JUNE 2007 1. Basis of Preparation The Interim Accounts have been prepared in accordance with International Financial Reporting Standards (IFRSs).The financial information in the statement does not constitute statutory accounts within the meaning of theIsle of Man Companies Act 1982. The interim report has been prepared on the going concern and historical cost basis, except for any revaluationof listed investments. There have been no changes in the company's accounting policies and methods of computation from those disclosedin the audited accounts to 31 December 2006. The interim financial information for the period to 30 June 2007 was approved by the directors on 27 September2007. The interim report is unaudited. Figures for the year ended 31 December 2006 are abridged from the fullfinancial statements which carry an unqualified auditor's report and which have been filed with the Registrar ofCompanies 2. Loss per Share Period Ended Period Ended Year Ended 30 June 30 June 31 December 2007 2006 2006 • • • Loss for the period from continuing operations (1,231,702) (252,778) (1,675,385) ========= ========= ========= Weighted average number of ordinary shares in issue during the period 82,383,631 81,028,631 80,253,112 ========= ========= ========= Loss per share Basic 1.5c 0.3c 2.1c ========= ========= ========= There are no dilutive instruments over the period. 3. Share Capital 30 June 30 June 31 December 2007 2006 2006 • Authorised: 1,000,000,298 ordinary shares of €0.01 each 10,000,000 10,000,000 10,000,000 ========= ========= ========= Called up, allotted and fully paid: Ordinary shares of €0.01 each 823,836 810,286 823,836 ========= ========= ========= 4 Directors' emoluments Directors' were paid no remuneration during the period. (2006 - €26,526) 5. Interest receivable Period Ended Period Ended Year Ended 30 June 30 June 31 December 2007 2006 2006 • • • Bank interest 10,158 30,056 59,118 ========= ========= ========= 6 Intangible fixed assets Cost 30 June 2007 • At 30 June 2007, 30 June 2006 and 31 December 2006 40,750,000 ========= 7. Non-current liabilities 30 June 30 June 31 December 2007 2006 2006 • • • Deferred consideration 10,750,000 10,750,000 10,750,000 ========= ========= ========= On 15 June 2005, CHR acquired the Hydropolis Project concept and all the associated know how from Crescent Hydropolis Holdings LLC for a consideration of 60,000,000 ordinary shares issued as fully paid at €0.50 per share (such shares being issued on 17 June 2005) and payment of €10,750,000 in cash in instalments with the final payment due as set forth in the payment schedule below. The payments fall due as follows: €2,750,000 to be paid upon completion of financing for the first Hydropolis Project ("the First Payment".) €2,000,000 to be paid 60 days following publication of the annual accounts for the period to 31 December during the first full fiscal year following the First Payment. ("the Second Payment") €2,000,000 to be paid 60 days following publication of the annual accounts for the period to 31 December during the first full fiscal year following the Second Payment. ("the Third Payment") €2,000,000 to be paid 60 days following publication of the annual accounts for the period to 31 December during the first full fiscal year following the Third Payment. ("the Fouth Payment") €2,000,000 to be paid 60 days following publication of the annual accounts for the period to 31 December during the first full fiscal year following the Fourth Payment. ("the Final Payment") In the event that on any instalment payment date CHR has insufficient working capital then the instalment is accrued until the following year without interest. Any unpaid consideration following the publication of the annual accounts for the period to 31 December 2009 will become due 60 days following publication of the annual accounts for each successive year until CHR is able to make payment and does so in full. 8. Related party transactions There were no related party transactions during the period. (June 2006 - None, December 2006 - None) 9 Management & project development Costs Period to Period to Year to June 2007 June 2006 Dec 2006 • • • Engineering Costs 480,310 - 425,000 Project Development costs 244,972 100,000 265,135 Operating Costs 357,086 25,103 573,850 ________ _________ _________ 1,082,368 125,103 1,263,985 ======== ======== ======== Summary of review report to Interim Results The Company's auditors have reviewed but not audited the financial informationincluded in the Interim Report in accordance with the instructions of theCompany's Directors. Their review report which is included within the publishedInterim Results to be sent to shareholders describes the review work performed,the responsibility of the Company's Directors and includes the followingemphasis of matter to which the reader's attention is drawn. "Emphasis of matter - Going concern We draw attention to the Deputy Chairman's Statement which indicates that theCompany needs to procure additional finance facilities in order to develop itsHydropolis Qingdao project and fund its working capital requirements (includingfund raising costs) prior to completing that funding. This requirementindicates the existence of a material uncertainty. The financial statements donot include the adjustments that would result if the company was unable tocontinue as a going concern. In view of the significance of this uncertainty,we consider that this should be drawn to your attention." This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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