30th Nov 2007 07:00
Viridas PLC30 November 2007 VIRIDAS PLC Chairman's Statement30 November 2007 Turnover in the half year ended 31 August 2007 was £2,502,725 (2006 £3,264,043)and trading resulted in pre-tax loss of £283,969 (2006 £263,011). This lossincludes costs associated with managing out the Group's existing baby buggyParasol business, reducing the scale of the existing underwear businesses, andinvesting in our trial Crude Jatropha Oil (CJO) plantation in Brazil, and in ournew subsidiary, Viridas Brasil Agronegocios Ltda. Operational Review The half year has been one of ongoing reassessment of the Group's activities andrecognition of the need for strategic change. The decline in the baby buggy parasol market continued as did the negative longterm trend for our underwear distribution businesses. We have carried out a moredetailed evaluation of the international CJO business, and feel that our initialinterest was well placed. The biodiesel market continues to expand rapidly andwe believe that this growth will continue, driven by geo-political concerns andlegislation aimed at protecting the environment. Ninaclip baby buggy parasols The sales of baby buggy parasols in the first half were very poor, due tocombination of bad weather and the continuing decline of the baby buggy parasolmarket. As a result the board took the decision to sell all the remaining stockand discontinue this activity. Underwear Notwithstanding the negative long term trends, the Group's underwear businesseswere again steady cash generators, particularly in the German market, and weexpect this to continue throughout the remainder of the current financial year. Biodiesel project-Brazil In the half year under review, we established our Brazilian subsidiary in SaoPaulo, and entered into negotiations to lease suitable land for our CJO pilotproject. First plantings of Jatropha saplings are scheduled to be in the groundby early Spring 2008. Property Our warehouse premises at Skelmersdale, which were no longer required by theGroup's UK businesses, were sold on 22 October 2007 for £500,000 producing abook profit of £59,568. Change of name On 27 July 2007 the shareholders resolved to change the name of the company toViridas PLC. We feel that the new name more accurately reflects the Group'sincreasing focus on developing its biodiesel business. Resignation As announced on 27 November 2007, Fernando Lunardini has resigned as ChiefExecutive of Viridas PLC and a search for a suitable replacement has begun. Iwill take over management of the Group until a new chief executive is appointedand will update shareholders in due course. Placing On the 27 July and 9 August 2007 the Company successfully raised £555,000,before expenses, to provide additional working capital and in particular toenable the company to finance the ongoing development of its CJO project inBrazil. Trial Plantation The trial planting of Jatropha saplings on our own land is on track withsaplings scheduled to be in the ground by early Spring 2008. This pilot projectwill enable us to verify the requirements for the development of a full scaleCJO business. Outlook The Groups strategy is to proceed with its CJO project in Brazil, whilst at thesame time continuing to rationalise its traditional underwear businesses in UKand Germany. I would like to take this opportunity to thank all of our employees, whose hardwork and dedication is so important to the continued progress of the Group. S J WootliffChairman VIRIDAS PLC CONDENSED CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED31 AUGUST 2007 Unaudited Unaudited Unaudited 6 months 6 months Year ended ended ended 31 August 31 August 28 February 2007 2006 2007 £ £ £ Revenue - continuing operations 2,502,725 3,264,043 6,247,478 Operating loss - continuing operations (257,391) (230,159) (946,115) Finance income 4,861 - -Finance expense (31,439) (32,852) (71,342) ---------- ---------- ----------Loss before taxation (283,969) (263,011) (1,017,457) Taxation (20,300) (17,700) (88,835) ---------- ---------- ----------Loss for the period (304,269) (280,711) (1,106,292) ---------- ---------- ---------- Loss per shareBasic (1.47p) (1.41p) (5.56p)Diluted (1.47p) (1.41p) (5.56p) Dividend per share - - - CONDENSED CONSOLIDATED BALANCE SHEET AS AT31 AUGUST 2007 Unaudited Unaudited Unaudited 6 months 6 months Year ended ended ended 31 August 31 August 28 February 2007 2006 2007 £ £ £ASSETSNon-current assetsIntangible assets 165,866 461,523 178,506Property, plant and equipment 544,173 869,050 559,114 ---------- ---------- ----------Total non-current assets 710,039 1,330,573 737,620 ---------- ---------- ---------- Current assetsInventories 838,269 1,526,851 1,008,416Trade and other receivables 1,112,646 1,082,391 477,088Cash and cash equivalents 1,285,637 869,698 689,118 ---------- ---------- ----------Total current assets 3,236,552 3,478,940 2,174,622 ---------- ---------- ---------- Total assets 3,946,591 4,809,513 2,912,242 ---------- ---------- ---------- LIABILITIESCurrent liabilitiesTrade and other payables 619,247 916,953 452,097Income tax payable 32,094 22,400 76,872Obligations under finance leases 6,443 6,310 6,443Bank loans 31,645 30,533 31,001Bank overdraft 1,469,500 1,429,104 784,366 ---------- ---------- ----------Total current liabilities 2,158,929 2,405,300 1,350,779 ---------- ---------- ---------- Non-current liabilitiesObligations under finance leases 5,368 11,547 8,590Bank loans 278,283 302,591 288,343Deferred tax liability 33,040 33,040 33,040 ---------- ---------- ----------Total non-current liabilities 316,691 347,178 329,973 ---------- ---------- ---------- Total liabilities 2,475,620 2,752,478 1,680,752 ---------- ---------- ---------- Net assets 1,470,971 2,057,035 1,231,490 ---------- ---------- ---------- EQUITYShare capital 2,435,796 1,991,196 1,991,196Share premium account 2,005,379 1,906,229 1,906,229Capital redemption reserve 27,000 27,000 27,000Revaluation reserve 84,960 84,960 84,960Retained earnings (3,082,164) (1,952,350) (2,777,895) ---------- ---------- ----------Total equity 1,470,971 2,057,035 1,231,490 ---------- ---------- ---------- CONDENSED CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED31 AUGUST 2007 Unaudited Unaudited Unaudited 6 months 6 months Year ended ended ended 31 August 31 August 28 February 2007 2006 2007 £ £ £ Cash flows from operating activitiesLoss before tax (283,969) (263,011) (1,017,457)Depreciation of property, plant and equipment 22,790 39,740 343,965Amortisation of intangible assets 11,755 55,242 356,194Interest receivable (4,861) - -Interest payable 31,439 32,852 71,342Decrease in inventories 170,147 27,449 545,884(Increase)/decrease in trade and other receivables (635,558) (451,479) 153,824Increase/(decrease) in trade and other payables 167,130 308,007 (168,636)Foreign exchange movement - (12,744) - ---------- ---------- ---------- (521,127) (263,944) 285,116Interest paid (31,439) (32,852) (71,342)Tax paid (65,078) (30,540) (47,853) ---------- ---------- ----------Net cash from operating activities (617,644) (327,336) 165,921 ---------- ---------- ---------- Cash flows from investing activitiesInterest received 4,861 - -Purchase of intangible assets - (10,009) (15,994)Purchase of property, plant and equipment (6,964) (18,694) (5,855) ---------- ---------- ----------Net cash used in investing activities (2,103) (28,703) (21,849) ---------- ---------- ---------- Cash flows from financing activitiesIssue of shares 543,750 - -Repayment of loans (12,638) (18,341) (34,965)New loan finance - 19,329 - ---------- ---------- ----------Net cash generated from/(used in) Financing activities 531,112 988 (34,965) ---------- ---------- ---------- (Decrease)/increase in cash in the Period (88,635) (355,051) 109,107 Cash and cash equivalents at beginning of period (95,248) (204,355) (204,355) Cash and cash equivalents at end of period (183,883) (559,406) (95,248) ---------- ---------- ---------- CONDENSED CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR THE SIXMONTHS ENDED 31 AUGUST 2007 Unaudited Unaudited Unaudited 6 months 6 months Year ended ended ended 31 August 31 August 28 February 2007 2006 2007 £ £ £ Loss for the period (304,269) (280,711) (1,106,292) ---------- ---------- ---------- Total recognised income and expense for the period (304,269) (280,711) (1,106,292) ---------- ---------- ---------- NOTES TO THE CONDENSED INTERIM REPORT 1. The financial information set out in this condensed interim report does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The group's statutory financial statements for the year ended 28 February 2007, prepared under UK GAAP, have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 237 (2) of the Companies Act 1985. This condensed interim report has been prepared in accordance with the group's accounting policies, which are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) and are effective at 28 February 2008 or are expected to be adopted and effective at 28 February 2008, our first annual reporting date at which we are required to use IFRS accounting standards adopted by the EU. 2. The calculation of basic and diluted earnings per share is based on the loss for the period of £304,269 (2006: loss £280,711) and a weighted average number of ordinary shares of 20,652,956 (2006: 19,911,956). 3. No interim dividend will be paid. 4. Copies of these interim results are being despatched to shareholders. Further copies can be obtained from: The Company Secretary, Viridas P.L.C., 647, Roundhay Road, Leeds LS8 4BA. 5. Reconciliation of net assets and profits under UK GAAP to IFRS: Reconciliation of equity at 1 March 2006 UK GAAP Adjustments IFRS £ £ £ASSETSNon-current assetsIntangible assets 506,756 - 506,756Property, plant and equipment 799,096 - 799,096 ---------- ---------- ----------Total non-current assets 1,305,852 - 1,305,852 ---------- ---------- ----------Current assetsInventories 1,554,300 - 1,554,300Trade and other receivables 630,912 - 630,912Cash and cash equivalents 917,673 - 917,673 ---------- ---------- ----------Total current assets 3,102,885 - 3,102,885 ---------- ---------- ---------- Total assets 4,408,737 - 4,408,737 ---------- ---------- ----------LIABILITIESCurrent liabilitiesTrade and other payables 608,276 - 608,276Current tax payable 35,890 - 35,890Obligations under finance leases 5,556 - 5,556Bank loans 30,414 - 30,414Bank overdraft 1,122,028 - 1,122,028 ---------- ---------- ----------Total current liabilities 1,802,164 - 1,802,164 ---------- ---------- ---------- Non-current liabilitiesObligations under finance leases 314,043 - 314,043Deferred tax liability - (i)7,560 7,560 ---------- ---------- ----------Total non-current liabilities 314,043 7,560 321,603 ---------- ---------- ---------- Total liabilities 2,116,207 7,560 2,123,767 ---------- ---------- ---------- Net assets 2,292,530 (7,560) 2,284,970 ---------- ---------- ---------- EQUITYShare capital 1,991,196 - 1,991,196Share premium account 1,906,229 - 1,906,229Capital redemption reserve 27,000 - 27,000Revaluation reserve 27,000 (7,560) 19,440Retained earnings (1,658,895) - (1,658,895) ---------- ---------- ----------Total equity 2,292,530 (7,560) 2,284,970 ---------- ---------- ---------- NOTES TO THE CONDENSED INTERIM REPORT Reconciliation of net income at 31 August 2006 UK GAAP Adjustments IFRS £ £ £ Revenue 3,264,043 - 3,264,043 Operating loss (236,134) (ii)5,975 (230,159) Finance income - - -Finance expense (32,852) (32,852) ---------- ---------- ---------- Loss before taxation (268,986) 5,975 (263,011) Taxation (17,700) - (17,700) ---------- ---------- ---------- Loss for the period (286,686) 5,975 (280,711) ---------- ---------- ---------- NOTES TO THE CONDENSED INTERIM REPORT Reconciliation of equity at 31 August 2006 UK GAAP Adjustments IFRS £ £ £ASSETSNon-current assetsIntangible assets 455,548 (ii)5,975 461,523Property, plant and equipment 869,050 - 869,050 ---------- ---------- ----------Total non-current assets 1,324,598 5,975 1,330,573 ---------- ---------- ---------- Current assetsInventories 1,526,851 - 1,526,851Trade and other receivables 1,082,391 - 1,082,391Cash and cash equivalents 869,698 - 869,698 ---------- ---------- ----------Total current assets 3,478,940 - 3,478,940 ---------- ---------- ---------- Total assets 4,803,538 5,975 4,809,513 ---------- ---------- ---------- LIABILITIESCurrent liabilitiesTrade and other payables 916,953 - 916,953Current tax payable 22,400 - 22,400Obligations under finance leases 6,310 - 6,310Bank loans 30,533 - 30,533Bank overdraft 1,429,104 - 1,429,104 ---------- ---------- ----------Total current liabilities 2,405,300 - 2,405,300 ---------- ---------- ---------- Non-current liabilitiesObligations under finance leases 11,547 - 11,547Bank loans 302,591 - 302,591Deferred tax liability - (i)33,040 33,040 ---------- ---------- ----------Total non-current liabilities 314,138 33,040 347,178 ---------- ---------- ---------- Total liabilities 2,719,483 33,040 2,752,478 ---------- ---------- ---------- Net assets 2,084,100 (27,065) 2,057,035 ---------- ---------- ---------- EQUITYShare capital 1,991,196 - 1,991,196Share premium account 1,906,229 - 1,906,229Capital redemption reserve 27,000 - 27,000Revaluation reserve 118,000 (i)(33,040) 84,960Retained earnings (1,958,325) (ii)5,975 (1,952,350) ---------- ---------- ----------Total equity 2,084,100 (27,065) 2,057,035 ---------- ---------- ---------- NOTES TO THE CONDENSED INTERIM REPORT Reconciliation of net income at 28 February 2007 UK GAAP Adjustments IFRS £ £ £ Revenue 6,247,478 - 6,247,478 Operating loss (958,065) (ii)11,950 (946,115) Finance income - - -Finance expense (71,342) - (71,342) ---------- ---------- ---------- Loss before taxation (1,029,407) 11,950 (1,017,457) Taxation (88,835) - (88,835) ---------- ---------- ---------- Loss for the period (1,118,242) 11,950 (1,106,292) ---------- ---------- ---------- NOTES TO THE CONDENSED INTERIM REPORT Reconciliation of equity at 28 February 2007 UK GAAP Adjustments IFRS £ £ £ASSETSNon-current assetsIntangible assets 166,556 (ii)11,950 178,506Property, plant and equipment 559,114 - 559,114 ---------- ---------- ----------Total non-current assets 725,670 11,950 737,620 ---------- ---------- ---------- Current assetsInventories 1,008,416 - 1,008,416Trade and other receivables 477,088 - 477,088Cash and cash equivalents 689,118 - 689,118 ---------- ---------- ----------Total current assets 2,174,622 - 2,174,622 ---------- ---------- ---------- Total assets 2,900,292 11,950 2,912,242 ---------- ---------- ---------- LIABILITIESCurrent liabilitiesTrade and other payables 452,097 - 452,097Current tax payable 76,872 - 76,872Obligations under finance leases 6,443 - 6,443Bank loans 31,001 - 31,001Bank overdraft 784,366 - 784,366 ---------- ---------- ----------Total current liabilities 1,350,779 - 1,350,779 ---------- ---------- ---------- Non-current liabilitiesObligations under finance leases 8,590 - 8,590Bank loans 288,343 - 288,343Deferred tax liability - (i)33,040 33,040 ---------- ---------- ----------Total non-current liabilities 296,933 33,040 329,973 ---------- ---------- ---------- Total liabilities 1,647,712 33,040 1,680,752 ---------- ---------- ---------- Net assets 1,252,580 (21,090) 1,231,490 ---------- ---------- ---------- EQUITYShare capital 1,991,196 - 1,991,196Share premium account 1,906,229 - 1,906,229Capital redemption reserve 27,000 - 27,000Revaluation reserve 118,000 (i) (33,040) 84,960Retained earnings (2,789,845) (ii) 11,950 (2,777,895) ---------- ---------- ----------Total equity 1,252,580 (21,090) 1,231,490 ---------- ---------- ---------- Adjustments: (i) Under IAS 12 "Income taxes", deferred tax is applied in respect of all fixed asset revaluations. (ii) IFRS3 "Business Combinations" no longer permits the amortisation of goodwill, instead goodwill is carried at cost and is subject to regular impairment reviews. The adjustment above relates to the reversal of goodwill amortisation charged since the transition date. Cumulative goodwill charges prior to the transition date are netted off against the costs of goodwill and the net figure is carried forward as deemed cost. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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