27th Sep 2007 07:04
Biofutures International plc27 September 2007 Immediate Release 27 September 2007 Biofutures International plc Interim Results Biofutures International plc, a company established to invest in or acquireassets, businesses or companies in the renewable fuels industry, located in Asiaand Europe announces interim results for the six months ended 30 June 2007. CHAIRMAN'S STATEMENT I am pleased to present our interim results for the six months ended 30 June2007. We announced at the end of July that the effect of vegetable oil prices andspecifically the increased price of crude palm oil, the intended feedstock forthe biodiesel plant, has significantly impacted our business. Since October2006, the price has increased from US$430 per metric tonne to around US$750 pertonne today. In June the price peaked at over US$850 per tonne. The reasons forthis high price include seasonal climate effects and some speculative activityin trading of the commodity. However, the fundamental macroeconomic driver ofincreased prices is rising global food demand. The increased use of corn toproduce ethanol as a biofuel in the United States may also be having an effecton the availability of vegetable oil supplies. These factors have contributed tothe difficulty faced by the Board in raising debt finance for the Group. The high price of crude palm oil has necessitated a review, by the Board, of theviability of the Zurex project. Contracts with suppliers are currently on holdand negotiations are taking place with a view to re-engineering the project.Once this review is complete the Board will make the necessary recommendationsand seek shareholders approval where required. The Board, in the meantime, hassignificantly reduced its cost base to help maintain shareholder value at themaximum level possible. At the recent AGM, Nick Gee, Chris Price and Chris Dennison were not re-elected.The Board thanks them for their support and efforts over the period of theirdirectorships. Dr Joe Wong and I became Executive Directors following the AGM.We also welcome to the Board Dr Patrick Howes as a non executive director witheffect from 31 August 2007. The untimely death of non-executive director PhillipCarter occurred in May 2007. Phil, will be missed by all who knew and workedwith him. David YeohExecutive Chairman27 September 2007 Enquiries: Biofutures International plcJulie Pomeroy 0207 466 5000 Blomfield Street Securities LimitedToby Howell / Emily Morgan 0207 182 1740 Buchanan CommunicationsMark Edwards/Suzanne Brocks 0207 466 5000 UNAUDITED CONSOLIDATED INCOME STATEMENTFOR THE SIX MONTHS TO 30 JUNE 2007 Notes Six months to Period from 17 Period from 17 30 June 2007 Feb 2006 to 30 Feb 2006 to 31 Jun 2006 Dec 2006 £'000s £'000s £'000sContinuing operationsRevenue - - -Administrative expenses (682) (68) (500) -------- -------- --------Operating loss (682) (68) (500)Interest income 233 10 77 -------- -------- --------Loss before income tax (449) (58) (423)Income tax expense 3 - - -------- -------- --------Loss for the period (449) (58) (423) ======== -------- -------- ========Loss per share - Basic 4 (0.30)p (0.32)p (1.27)p ======== ======== ======== UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Six months to Period from 17 Period from 17 30 June 2007 Feb 2006 to 30 Feb 2006 to 31 Jun 2006 Dec 2006 £'000s £'000s £'000s Loss for the period (449) (58) (423)Net exchange adjustments (40) - (2) -------- -------- --------Total recognisedincome andexpenses forthe period (489) (58) (425) -------- -------- --------Share-basedcompensation 196 - 1,089Shares issued - 2,965 28,771 -------- -------- --------Transactionswith equityholders 196 2,965 29,860 -------- -------- --------Total movementin equity (293) 2,907 29,435Openingshareholders'funds 29,435 - - -------- -------- --------Closingshareholders'funds 29,142 2,907 29,435 ======== ======== ======== UNAUDITED CONSOLIDATED BALANCE SHEET As at 30 June As at 30 June As at 31 Dec 2007 2006 2006Assets £'000s £'000s £'000sNon-current assetsProperty, plant and equipment 3,771 - 1,703Goodwill 6,078 - 6,078Intangible assets 10,850 - 10,850 -------- -------- -------- 20,699 - 18,631 -------- -------- -------- Current assetsTrade and other receivables 59 116 2,545Cash and cashequivalents 8,650 2,844 8,813 -------- -------- -------- 8,709 2,960 11,358 -------- -------- -------- -------- -------- --------Total assets 29,408 2,960 29,989 ======== ======== ======== Equity and liabilities EquityShare capital 1,477 369 1,477Share premium account 11,293 2,596 11,293Merger reserve 16,001 16,001Translation reserve (42) (2)Share based scheme reserve 1,285 1,089Retained earnings (872) (58) (423) -------- -------- --------Total equity 29,142 2,907 29,435 -------- -------- -------- Current liabilitiesTrade and other payables 266 53 554 -------- -------- --------Total liabilities 266 53 554 -------- -------- -------- Total equity and liabilities 29,408 2,960 29,989 ======== ======== ======== UNAUDITED CASH FLOW STATEMENT Notes Six months to Period from 17 Period from 17 30 June 2007 Feb 2006 to 30 Feb 2006 to 31 Jun 2006 Dec 2006 £000s £000s £000sCash flow from operatingactivitiesCash flow from operations 5 (729) (130) (760) -------- -------- --------Net cash used for operatingactivities (729) (130) (760) -------- -------- -------- Cash flow from investingactivitiesAcquisition of subsidiary,net of cash acquired - - (259)Purchases of property,plant and equipment (2,068) - (931)Interest received 233 10 77 -------- -------- --------Net cash used in investingactivities (1,835) 10 (1,113) -------- -------- -------- Cash flow from financingactivitiesProceeds from issue of sharecapital 2,441 2,965 10,686 -------- -------- --------Net cash inflow fromfinancing activities 2,441 2,965 10,686 -------- -------- -------- Effects of exchange ratechanges (40) - - -------- -------- --------Net increase in cash andcash equivalents (163) 2,845 8,813 -------- -------- -------- Cash and cash equivalents asat beginning of period 8,813 - - -------- -------- --------Cash and cash equivalents asat end of period 8,650 2,845 8,813 -------- -------- -------- UNAUDITED NOTES TO THE INTERIM STATEMENTS FOR THE SIX MONTHS TO 30 JUNE 2007 1 Basis of preparation The financial information contained in these financial statements comprises theGroup balance sheets as at 30 June 2007, 30 June 2006 and 31 December 2006, theGroup statement of income, the Group statement of cashflows and the Groupstatement of changes in equity for the half year ended 30 June 2007 and for theperiods ended 30 June 2006 and 31 December 2006. The financial information set out on pages 2, 3 and 4 is unaudited and does notconstitute statutory accounts within the meaning of section 240 of the CompaniesAct 1985. The comparative numbers for the period 17 February 2006 to 31 December2006 have been extracted from the audited accounts which have been filed atCompanies House and which carried an unqualified audit report with no statementunder s237(2) or (3) of the Companies Act 1985. In preparing the financial information, management has used the principalaccounting policies as set out in the Group's annual financial statements forthe year ended 31 December 2006 on pages 21 to 23. There have been no newInternational Financial Reporting Standards developments since 1 January 2007that will impact on the 2007 Annual Report, and therefore this interim financialinformation has been prepared on a consistent basis with accounting policiesthat are expected to be applicable for the full reporting year in 2007. Uncertainty of the viability of the Zurex project The Company announced on 31 July 2007 that the high price of crude palm oil hasnecessitated a review of the viability of the Zurex project. Contracts withsuppliers are currently on hold and negotiations are taking place with a view tore-engineering the project. The result of the review may require considerationof the carrying values of goodwill and other intangible assets. No adjustmenthas been made to the carrying values in the interim accounts to 30 June 2007. 2 Segmental Information (a) Primary reporting format - business segment: Six months to Period from 17 Period from 17 30 June 2007 Feb 2006 to 30 Feb 2006 to 31 Jun 2006 Dec 2006 £'000s £'000s £'000sLoss before income taxOperational (108) - (9)Head Office (341) (58) (414) -------- -------- --------Loss before income tax (449) (58) (423) -------- -------- -------- Loss for periodOperational (108) - (9)Head Office (341) (58) (414) -------- -------- --------Loss for period (449) (58) (423) ======== ======== ======== 3 Income tax expenses There is no tax charge due to the losses arising in the period. 4 Loss per share Six months to Period from 17 Period from 17 June 30 2007 Feb 2006 to 30 Feb 2006 to 31 Jun 2006 Dec 2006Loss attributableto equity shareholdersof the Company (£) (449,000) (58,000) (423,000) Weighted average number of ordinaryshares in issue 147,730,000 18,137,836 28,172,762 -------- -------- --------Basic earningsper share in pence (0.30)p (0.32)p (1.27)p ======== ======== ======== The impact of options and warrants on the loss per share is anti-dilutive andtherefore no diluted earnings per share figure has been included. 5 Cash generated from operations Six months to Period from 17 Period from 17 June 30 2007 Feb 2006 to 30 Feb 2006 to 31 Jun 2006 Dec 2006 £'000s £'000s £'000sLoss for the periodLoss for the period (449) (58) (423)Adjustments for:Net interest (233) (10) (77)Share based payments 196 - 65Increase in current assets 45 (115) (104)Increase current liabilities (288) 53 (221) -------- -------- --------Cash (outflow)from operations (729) (130) (760) ======== ======== ======== 6 Dividend The directors do not recommend the payment of a dividend. 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