Interim Results

30th Jun 2008 15:00



Mission Capital plc

30 June 2008

INTERIM RESULTS For the six months to 31 March 2008

Mission Capital plc ("Mission Capital" or the "Company") announces its unaudited interim results for the six months to 31 March 2008. 

Chairman's Statement

Introduction

The consolidated interim results of the Company and its subsidiaries for the six months ended 31 March 2008 show turnover of £1.7 million (2007: £2.8 million), and a loss on ordinary activities before taxation of £0.6 million (2007: £0.16 million), representing a basic and diluted loss per share of 0.572p (2007: 0.161p). As at 31 March 2008, the Company had consolidated net assets of £4.0 million (2007: £6.3 million). The Company will not be paying an interim dividend.

The last two months of the period were taken up by events following the summary dismissal on 5 February 2008 by the Company of its then executive directors, Mr Neil Sinclair and Ms Emma Sinclair. The Board established that the Company had minimal cash resources, no bank lending facilities, and mounting liabilities. 

The continuing directors took emergency action to consolidate the Company's financial position. They obtained secured bank borrowing to enable the Company to pay its creditors, and took immediate steps to reduce the Company's expenditure by closing its head office and making head office staff redundant.

The Sinclairs then commenced proceedings against the Company and sought various injunctions against it, including their restoration as executives and employees of the Company and to obtain the Court's permission to bring a derivative action (using the Company's money) against certain of the non-executive directors of the Company.

The Sinclairs lost these applications at the High Court on 12 March 2008 when the Court made orders for costs in the Company's favour against them. Despite the Company's solicitors' written requests for payment, these costs have still not been paid by the Sinclairs.

Given the further deterioration in the property market and the costs of the litigation referred to above, these interim results show a trading loss, as had been anticipated by the directors and announced by the Company on 30 April 2008.

The Present Position

Your directors are disappointed by the continuing costs to the Company of and incidental to the litigation with the Sinclairs and the consequential financial loss. The Board believes that the Company has no choice but to defend the claim by the Sinclairs for restoration to office, as such restoration would, in the Board's view, be profoundly contrary to the interests of shareholders.

The Company's investment in Athens is, as previously announced, unlikely to provide any value to shareholders. The component properties are intended to be sold under the supervision of Athens' bankers, with the objective of Athens and its subsidiaries avoiding formal insolvency procedures.

The Company's subsidiary, Karspace Management Limited (KML), continues to trade profitably. The Board is working with its management team to secure the best way forward for its future success.

The Board 

Mr Michael Guthrie retires as a director with effect from today. The Board is grateful for his past service. The Board has been strengthened by the appointments of Mr Chris Phillips in February and Mr Godfrey Thorpe, the non-executive Chairman of KML, in May. The Board has appointed me as Chairman also with effect from today.

Outlook

The turmoil in property and financial markets shows no sign of abatement. We continue to consider options for the Company as they arise.

Philip Goldenberg

Chairman

 

Consolidated interim income statement
For the six months ended 31 March 2008
		Six months 31 March 2008 (unaudited)	Six months31 March 2007 (unaudited)	Year ended30 September 2007 (unaudited)
	Notes	£	£	£
Gross turnover		1,657,208	2,814,920	5,149,776
Less: landlords share of parking receipts		(776,599)	(1,276,553)	(2,624,713)
Net revenue		880,609	1,538,367	2,525,063
Cost of sales		(415,459)	(930,705)	(1,337,513)
Gross profit		465,150	607,662	1,187,550
Distribution costs		(64,497)	(77,870)	(202,854)
Administrative expenses		(976,948)	(672,552)	(1,756,862)
Operating loss		(576,295)	(142,760)	(772,166)
Finance income		15,033	30,603	51,780
Finance expense		(28,656)	(108,186)	(506,758)
Share of profit/(loss) in associated undertaking		-	57,951	(497,944)
Loss for the period before taxation		(589,918)	(162,392)	(1,725,088)
Tax expense, net		-	-	-
Loss for the period		(589,918)	(162,392)	(1,725,088)
Attributable to shareholders of Mission Capital plc
Loss per share (pence)
Basic and diluted	4	0.572p	0.161p	1.701p

Consolidated interim balance sheet
31 March 2008
		31 March 2008 (unaudited)	31 March 2007 (unaudited)	30 Sept 2007 (unaudited)
		£	£	£
Assets
Non-current assets
Goodwill		1,971,477	1,971,477	1,971,477
Plant, property and equipment		35,904	127,043	100,843
Investment in associate		-	1,183,780	-
		2,007,381	3,282,300	2,072,320
Current assets
Inventories		1,000,000	1,200,000	1,100,000
Trade and other receivables		341,612	675,886	453,938
Cash and cash equivalents		602,644	1,154,953	726,828
Total		1,944,256	3,030,839	2,280,766
Total assets		3,951,637	6,313,139	4,353,086
Equity
Share capital		1,030,672	1,013,018	1,030,672
Share premium account		3,654,208	3,549,862	3,654,208
Equity reserve		87,023	87,023	87,023
Retained earnings		(2,588,752)	(436,138)	(1,998,834)
Total Equity		2,183,151	4,213,765	2,773,069
Liabilities
Non-current
Borrowings		758,321	782,743	777,024
Provisions for liabilities		-	100,000	-
		758,321	882,743	777,024
Current
Trade and other payables		958,026	1,107,159	728,984
Borrowings		35,437	68,264	35,457
Current tax liabilities		16,702	29,804	29,790
Obligations under finance lease		-	11,404	8,762
		1,010,165	1,216,631	802,993
Total liabilities		1,768,486	2,099,374	1,580,017
Total equity and liabilities		3,951,637	6,313,139	4,353,086

Consolidated interim statement of changes in equity
31 March 2008
Equity attributable to equity holders of Mission Capital plc:
				Share capital		Share premium account			Equity reserve		Retained earnings	Total equity
				£		£			£		£	£
Balance at 1 October 2006				998,203		3,464,677			87,023		(273,746)	4,276,157
Issue of share capital				14,815		85,185			-		-	100,000
Loss for the six month period and total recognised income and expense for the period				-		-			-		(162,392)	(162,392)
Balance at 31 March 2007				1,013,018		3,549,862			87,023		(436,138)	4,213,765
Issue of share capital				17,654		104,346			-		-	122,000
Loss for the six month period and total recognised income and expense for the period				-		-			-		(1,562,696)	(1,562,696)
Balance at 30 September 2007				1,030,672		3,654,208			87,023		(1,998,834)	2,773,069
Loss for the six month period and total recognised income and expense for the period				-		-			-		(589,918)	(589,918)
Balance at 31 March 2008				1,030,672		3,654,208			87,023		(2,588,752)	2,183,151

Consolidated interim cash flow statement
For the six months ended 31 March 2008
		Six months 31 March 2008 (unaudited)	Six months 31 March 2007 (unaudited)	Year ended 30 Sept 2007 (unaudited)
		£	£	£
Operating activities
Results for the period after tax		(589,918)	(162,392)	(1,725,088)
Depreciation of property, plant and equipment		18,975	28,537	57,702
Impairment of interest in associated undertaking		-	-	261,222
Profit on disposal of property, plant and equipment		40,102	(4,052)	(1,693)
Profit on sale of available for sale financial assets		-	(4,547)	(4,547)
Share of (profit)/loss in associated undertaking		-	(57,951)	497,944
Interest receivable (including share of associate)		(15,033)	(30,603)	(51,780)
Interest payable (including share of associate)		28,656	108,186	506,758
Changes in inventories		100,000	-	100,000
Changes in trade and other receivables		112,326	(58,483)	163,465
Change in trade and other payables		215,954	(19,161)	(197,523)
Tax paid		-	(56,997)	(57,013)
Net cash generated from operating activities		(88,938)	(257,463)	(450,553)
Investing activities
Additions to property, plant and equipment		(569)	(66,291)	(76,315)
Receipts from sales of property, plant and equipment		6,431	-	9,250
Acquisition of interest in associated undertaking		-	(1,206,140)	(1,206,140)
Acquisition of subsidiary undertakings (net of cash acquired)		-	-	(182,360)
Receipts from sale of available for sale financial assets		-	652,713	652,713
Interest received		15,033	28,575	47,788
Net cash used in investing activities		20,895	(591,143)	(755,064)
Financing activities
Interest paid		(28,656)	(25,847)	(55,792)
Repayment of borrowings		(18,723)	(18,954)	(21,216)
Repayment of finance lease obligations		(8,762)	(11,592)	(14,235)
Proceeds from share issues		-	-	-
		(56,141)	(56,393)	(91,243)
Net changes in cash and cash equivalents		(124,184)	(904,999)	(1,296,860)
Cash and cash equivalents, beginning of period		726,828	2,023,688	2,023,688
Cash and cash equivalents, end of period		602,644	1,118,689	726,828

  Selected explanatory notes

1. Nature of operations and general information

The principal activity of Mission Capital plc (the "Company") and its subsidiaries (together, the "Group") is property investment and management. The trading subsidiaries are Karspace Management Limited, a company specialising in the provision of car park and traffic management services to both the public and private sector, Mission Capital (Gloucester) Limited, a property company, and Mission Real Estate Limited, the management company to Athens Investments Holding Group Limited. 

Mission Capital plc, a limited liability company, is the Group's ultimate parent company. It is registered in England and Wales. The address of Mission Capital plc's registered office, which is also its principal place of business, is 29 - 30 Fitzroy Square, London, W1T 6LQ. Mission Capital plc's shares are listed on the London Stock Exchange's Alternative Investment Market (AIM).

These condensed consolidated interim financial statements have been prepared using the recognition and measurement principles of International Financial Reporting Standards ("IFRS") as adopted by the European Union. They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 30 September 2007. These are the first interim financial statements issued by the Company under IFRS. The accounting policies have been applied consistently to all the periods presented in the interim statements.

These consolidated interim financial statements are presented in British pounds (£), which is also the functional currency of the Company. 

2. Accounting policies and changes thereto

Basis of preparation

The financial statements have been prepared under the historical cost convention except in relation to share based payments which are stated at their fair value. The measurement bases and principal accounting policies for the Group are set out below:

Basis of consolidation

The Group financial statements consolidate those of the Company and of its subsidiary undertakings at the balance sheet date. Subsidiary undertakings are entities over which the Group has the power to control the financial and operating policies so as to obtain benefits from their activities. The Group obtains and exercises control through voting rights. 

Profits or losses on intra-Group transactions are eliminated in full. Acquisitions of subsidiaries are dealt with by the purchase method. On acquisition of a subsidiary, all of the subsidiary's assets and liabilities which exist at the date of acquisition are recorded at their fair values reflecting their condition at that date. Goodwill is stated after separating out identifiable intangible assets. Goodwill represents the excess of acquisition cost over the fair value of the group's share of the identifiable net assets of the acquired subsidiary at the date of acquisition.

IFRS 1 exemptions - business combinations completed prior to date of transition to IFRS

The Group has elected not to apply IFRS3 Business Combinations retrospectively to business combinations prior to the date of transition, 1 October 2006. Accordingly the classification of the combination remains unchanged from that used under UK GAAP. Assets and liabilities are recognised at the date of transition as if they would be recognised under IFRS, and are measured using their UK GAAP carrying amount immediately post-acquisition as deemed cost under IFRS, unless IFRS requires fair value measurement. Deferred tax is adjusted for the impact of any consequential adjustments after taking advantage of the transitional provisions. 

Associates

Associates are those entities over which the group has significant influence but which are neither subsidiaries nor interests in joint ventures. Joint ventures are entities whose economic activities are controlled jointly by the group and by other ventures independent of the group. Investments in associates are recognised initially at cost and subsequently accounted for using the equity method. Acquired investments in associates are also subject to purchase method accounting. However, any goodwill or fair value adjustment attributable to the share in the associate is included in the amount recognised as investment in associates.

All subsequent changes to the share of interest in the equity of the associate are recognised in the group's carrying amount of the investment. Changes resulting from the profit or loss generated by the associate are reported in "share of profits of associates" in the consolidated income statement and therefore affect net results of the group. These changes include subsequent depreciation, amortisation or impairment of the fair value adjustments of assets and liabilities.

Items that have been recognised directly in the associate's equity are recognised in the consolidated equity of the group. However, when the group's share of losses in an associate equals or exceeds its interest in the associate, including any unsecured receivables, the group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. If the associate subsequently reports profits, the investor resumes recognising its share of those profits only after its share of the profits equals the share of losses not recognised.

Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group's interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Amounts reported in the financial statements of associates have been adjusted where necessary to ensure consistency with the accounting policies adopted by the group.

Goodwill

Goodwill represents the excess of the cost of acquisition over the fair value of the identifiable net assets acquired and is capitalised. 

Goodwill is subject to annual impairment testing. The recoverable amount is tested annually or when events or changes in circumstances indicate that it may be impaired. The recoverable amount is the higher of the fair value less costs and the value in use in the Group. An impairment loss is recognised to the extent that the carrying value exceeds the recoverable amount. In determining a value in use, estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the goodwill that have not already been included in the estimate of future cash flows.

Goodwill previously written-off under UK GAAP prior to the adoption of IFRS for the restated balance sheet of 1 October 2006 has not been reinstated. Goodwill previously written off to reserves is not written back to profit or loss on subsequent disposal. 

Revenue

Group revenue comprises the following:

(i) receipts from management and operation of car parks. Where the group does not bear the significant risks and rewards of operating a car park, revenue comprises the net management fee receivable by the group. In all other cases, turnover comprises gross receipts from customers. In these cases, also shown on the face of the profit and loss account is "landlords' share of parking receipts", which represents car parking receipts collected on behalf of car park owners. Turnover is exclusive of VAT.

(ii) rental income from properties. 

(iii) management fee receivable for the management of properties.

With all streams of income, when the outcome of a transaction involving the provision of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the balance sheet date. The outcome of the transaction is deemed to be able to be estimated reliably when all the following conditions are satisfied:

- the amount of revenue can be measured reliably - it is probable that the economic benefits associated with the transaction will flow to the entity - the stage of completion of the transaction at the balance sheet date can be measured reliably, and - the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

Interest

Interest is recognised using the effective interest method which calculates the amortised cost of a financial asset and allocates the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying value of the financial asset.

All borrowing costs are expensed as incurred.

Property, Plant and Equipment

Property, plant and equipment are stated at cost, net of depreciation and any provision for impairment, if applicable. Depreciation is calculated to write off the cost of all property, plant and equipment by equal instalments over their expected useful economic lives. The rates generally applicable are:

Land and buildings - leasehold	Term of lease
Fixtures, fittings and equipment	5 years straight line, or contract period if shorter
Motor vehicles	Shorter of period of finance lease and useful economic life on a straight line basis

Material residual value estimates are updated as required, but at least annually, whether or not the asset is revalued. 

Impairment testing of goodwill, and property, plant and equipment

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level. Goodwill is allocated to those cash-generating units that are expected to benefit from synergies of the related business combination and represent the lowest level within the group at which management monitors the related cash flows.

Impairment losses recognised for cash-generating units to which goodwill has been allocated, are credited initially to the carrying amount of goodwill. Any remaining impairment loss is charged pro rata to the other assets in the cash generating unit. With the exception of goodwill, all assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist.

Taxation

Current tax is the tax currently payable based on taxable profit for the period.

Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with shares in subsidiaries is not provided if reversal of these temporary differences can be controlled by the Group and it is probable that reversal will not occur in the foreseeable future. In addition, tax losses available to be carried forward as well as other income tax credits to the Group are assessed for recognition as deferred tax assets. Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the underlying deductible temporary differences will be able to be offset against future taxable income. Current and deferred tax assets and liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the balance sheet date.  Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate to items that are charged or credited directly to equity (such as the revaluation of land) in which case the related deferred tax is also charged or credited directly to equity.Financial AssetsFinancial assets are divided into the following categories: loans and receivables and available-for-sale financial assets. Financial assets are assigned to the different categories by management on initial recognition, depending on the purpose for which they were acquired. The designation of financial assets is re-evaluated at every reporting date at which a choice of classification or accounting treatment is available.All financial assets are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets are recognised at fair value plus transaction costs. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Trade receivables are classified as loans and receivables. Loans and receivables are measured subsequent to initial recognition at amortised cost using the effective interest method, less provision for impairment. Any change in their value through impairment or reversal of impairment is recognised in the income statement.Provision against trade receivables is made when there is objective evidence that the Group will not be able to collect all amounts due to it in accordance with the original terms of those receivables. The amount of the write-down is determined as the difference between the asset's carrying amount and the present value of estimated future cash flows.An assessment for impairment is undertaken at least at each balance sheet date.A financial asset is de-recognised only when the contractual rights to the cash flows from the asset expire or the financial asset is transferred and that transfer qualifies for de-recognition. A financial asset is transferred if the contractual rights to receive the cash flows of the asset have been transferred or the Group retains the contractual rights to receive the cash flows of the asset but assumes a contractual obligation to pay the cash flows to one or more recipients. A financial asset that is transferred qualifies for de-recognition if the Group transfers substantially all the risks and rewards of ownership of the asset, or if the Group neither retains nor transfers substantially all the risks and rewards of ownership but does transfer control of that asset.Financial LiabilitiesFinancial liabilities are obligations to pay cash or other financial assets and are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial liabilities categorised as at fair value through profit or loss are recorded initially at fair value, all transaction costs are recognised immediately in the income statement. All other financial liabilities are recorded initially at fair value, net of direct issue costs. Financial liabilities categorised as at fair value through profit or loss are measured at each reporting date at fair value, with changes in fair value being recognised in the income statement. All other financial liabilities are recorded at amortised cost using the effective interest method, with interest-related charges recognised as an expense in finance cost in the income statement. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are charged to the income statement on an accruals basis using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise. A financial liability is de-recognised only when the obligation is extinguished, that is, when the obligation is discharged or cancelled or expires. ProvisionsA provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation. Employee BenefitsDefined contribution pension scheme: The pension cost charged against operating profits is the contributions payable to the scheme in respect of the accounting period.

Short-term employee benefits, including holiday entitlement are included in current pension and other employee obligations at the undiscounted amount that the Group expects to pay as a result of the unused entitlement. Leased assetsIn accordance with IAS 17, the economic ownership of a leased asset is transferred to the lessee if the lessee bears substantially all the risks and rewards related to the ownership of the leased asset. The related asset is recognised at the time of inception of the lease at the fair value of the leased asset or, if lower, the present value of the minimum lease payments plus incidental payments, if any, to be borne by the lessee. A corresponding amount is recognised as a finance leasing liability. Leases of land and buildings are split into land and buildings elements according to the relative fair values of the leasehold interests at the date the asset is initially recognised. The interest element of leasing payments represents a constant proportion of the capital balance outstanding and is charged to the income statement over the period of the lease. All other leases are regarded as operating leases and the payments made under them are charged to the income statement on a straight line basis over the lease term. Lease incentives are spread over the term of the lease. Inventories Inventories are stated at the lower of cost and net realisable value.

Share optionsDuring 2005, the group issued a number of warrants which were expensed during the vesting period. The fair value was determined at the grant date using the Black-Scholes method, and was expensed on a straight line basis together with a corresponding increase in equity over the vesting period, based on the group's estimate of the number of warrants that would vest. Cash and cash equivalentsCash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.EquityEquity comprises the following: - "Share capital" represents the nominal value of equity shares; - "Share premium account" represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the share issue; - "Equity reserve" represents the reserve in relation to warrants issued but not yet exercised; and  - "Retained earnings" represents retained profits.Changes in accounting policies: IFRS1 First-time Adoption of International Financial Reporting Standards sets out the procedures that the Group must follow when it adopts IFRS for the first time as the basis for preparing its financial statements. The Group is required to establish its IFRS accounting policies as at 30 September 2008 and, in general, apply these retrospectively to determine the IFRS opening balance sheet at its date of transition, 1 October 2006. The principal changes in accounting policies are: IFRS3 Business Combinations requires that goodwill is subject to annual impairment reviews rather than amortisation. Goodwill amortisation charged under UK GAAP of £48,688 in the six month period to 31 March 2007, and £98,638 in the year ended 30 September 2007, has been reversed upon adoption of IFRS. 

The cash flow statement has been amended for the presentational impact of adoption of IFRS. The net effect in the income statements for the period under review may be summarised as follows:

	Six months 31 Mar 2007 (unaudited)	Year ended 30 Sept 2007 (unaudited)
	£	£
Administrative expenses:
Under UK GAAP	721,240	1,855,500
Elimination of amortisation of goodwill	(48,688)	(98,638)
Restated under IFRS	672,552	1,756,862

  

	Six months 31 Mar 2007 (unaudited)	Year ended 30 Sept 2007 (unaudited)
	£	£
Net result for the period:
Under UK GAAP	(211,080)	(1,823,726)
Elimination of amortisation of goodwill	48,688	98,638
Restated under IFRS	(162,392)	(1,725,088)

The net effect on the opening balance sheet as at 1 October 2006 may be summarised as follows:

	Under UK GAAP (audited)	IAS36 Impairment of assets	Restated under IFRS (unaudited)
	£	£	£
Assets
Non-current
Goodwill	2,067,117	-	2,067,117
Plant, property and equipment	89,787	-	89,787
Available for sale financial assets	648,166	-	648,166
	2,805,070	-	2,805,070
Current
Inventories	1,200,000	-	1,200,000
Trade and other receivables	617,403	-	617,403
Cash and cash equivalents	2,047,961	-	2,047,961
	3,865,364	-	3,865,364
Total assets	6,670,434	-	6,670,434
Equity
Share capital	998,203	-	998,203
Share premium account	3,464,677	-	3,464,677
Equity reserve	87,023	-	87,023
Retained earnings	(273,746)	-	(273,746)
Total Equity	4,276,157	-	4,276,157
Liabilities
Non-current
Borrowings	802,330	-	802,330
Obligations under finance leases	11,861	-	11,861
Provisions for liabilities	500,000	-	500,000
	1,314,191	-	1,314,191
Current
Trade and other payables	926,507	-	926,507
Borrowings	55,640	-	55,640
Current tax liabilities	86,803	-	86,803
Obligations under finance leases	11,136	-	11,136
	1,080,086	-	1,080,086
Total liabilities	2,394,277	-	2,394,277
Total equity and liabilities	6,670,434	-	6,670,434

The net effect on the balance sheet as at 31 March 2007 may be summarised as follows:

	Under UK GAAP (audited)	IAS36 Impairment of assets	Restated under IFRS (unaudited)
	£	£	£
Assets
Non-current
Goodwill	1,922,789	48,688	1,971,477
Plant, property and equipment	127,043	-	127,043
Investment in associate	1,183,780	-	1,183,780
	3,233,612	48,688	3,282,300
Current
Inventories	1,200,000	-	1,200,000
Trade and other receivables	675,886	-	675,886
Cash and cash equivalents	1,154,953	-	1,154,953
	3,030,839	-	3,030,839
Total assets	6,264,451	48,688	6,313,139
Equity
Share capital	1,013,018	-	1,013,018
Share premium account	3,549,862	-	3,549,862
Equity reserve	87,023	-	87,023
Retained earnings	(484,826)	48,688	(436,138)
Total Equity	4,165,077	48,688	4,213,765
Liabilities
Non-current
Borrowings	782,743	-	782,743
Provision for liabilities	100,000	-	100,000
	882,743	-	882,743
Current
Trade and other payables	1,107,159	-	1,107,159
Borrowings	68,264	-	68,264
Current tax liabilities	29,804	-	29,804
Obligations under finance leases	11,404	-	11,404
	1,216,631	-	1,216,631
Total liabilities	2,099,374	-	2,099,374
Total equity and liabilities	6,264,451	48,688	6,313,139

  The net effect on the balance sheet as at 30 September 2007 may be summarised as follows:

	Under UK GAAP (audited)	IAS36 Impairment of assets	Restated under IFRS (unaudited)
	£	£	£
Assets
Non-current
Goodwill	1,872,839	98,638	1,971,477
Plant, property and equipment	100,843	-	100,843
Investment in associate	-	-	-
	1,973,682	98,638	2,072,320
Current
Inventories	1,100,000	-	1,100,000
Trade and other receivables	453,938	-	453,938
Cash and cash equivalents	726,828	-	726,828
	2,280,766	-	2,280,766
Total assets	4,254,448	98,638	4,353,086
Equity
Share capital	1,030,672	-	1,030,672
Share premium account	3,654,208	-	3,654,208
Equity reserve	87,023	-	87,023
Retained earnings	(2,097,472)	98,638	(1,998,834)
Total Equity	2,674,431	98,638	2,773,069
Liabilities
Non-current
Borrowings	777,024	-	777,024
	777,024	-	777,024
Current
Trade and other payables	728,984	-	728,984
Borrowings	35,457	-	35,457
Current tax liabilities	29,790	-	29,790
Obligations under finance leases	8,762	-	8,762
	802,993	-	802,993
Total liabilities	1,580,017	-	1,580,017
Total equity and liabilities	4,254,448	98,638	4,353,086

For further information, please refer to Mission Capital plc's Consolidated Financial Statements 2007 (which were prepared under UK GAAP), which have been filed with the Registrar of Companies and are available on the Company's website, www.missioncapitalplc.com. The auditors' report on those financial statements was unqualified and did not contain a statement under Section 237(2) or Section 237(3) of the Companies Act 1985. The financial statements for the six months ended 31 March 2008 and 31 March 2007 are unaudited. 

 

3. Segment analysisThe Group has three streams of income. An analysis of gross turnover is given below: 

	Six months 31 March 2008 (unaudited)	Six months 31 March 2007 (unaudited)	Year ended 30 September 2007 (unaudited)
	£	£	£
Car park management	1,609,083	2,734,037	4,957,595
Property trading	-	46,707	94,832
Property management	48,125	34,176	97,349
	1,657,208	2,814,920	5,149,776

4. Losses per share The calculation of the basic loss per share is based on the losses attributable to the shareholders of Mission Capital plc divided by the weighted average number of shares in issue during the period. All losses per share calculations relate to continuing operations of the Company.

	Losses attributable to shareholders	Weighted average number of shares	Basic loss per share amount in pence
Six months ended 31 March 2008	(589,918)	103,067,126	0.572
Six months ended 31 March 2007	(162,392)	100,984,314	0.161
Year ended 30 September 2007	(1,725,088)	101,404,654	1.701

Fully diluted loss per share is also based upon the above figures as there are no potential dilutive ordinary shares in issue.5. Financial Statements  The financial information included in this report does not constitute statutory accounts for the purposes of section 240 of the Companies Act 1985. This statement will be available on the Company's website www.missioncapitalplc.com.

ENDIR ILFEVREIIVIT

---

Related Shares:

MCAP.L