4th Dec 2007 14:00
Leed Petroleum PLC04 December 2007 LEED PETROLEUM PLC ("Leed" or the "Company") Interim Results For the six months ended 30 September 2007 Leed Petroleum PLC (AIM: LDP), the oil and gas exploration and productioncompany focused on the Gulf of Mexico, is pleased to announce its interimresults for the six months ended 30 September 2007. Through its subsidiaries Leed holds operating interests in Eugene Island Block183 and the southern half of Eugene Island Block 184, the Grand Isle assets, theSouth Marsh Island assets, the Sorrento Field asset and the Ship Shoal asset aswell as non-operating interests in the East Cameron assets, the Main Pass assetsand Eugene Island Block 172 and the northern half of Eugene Island Block 184.The Eugene Island assets (other than Block 172), the East Cameron assets and theMain Pass assets are producing fields located off the coast of the state ofLouisiana in the Gulf of Mexico. Operational Highlights • Production attributable to the net revenue interest held by the Company in all of its producing properties for the six months ended 30 September 2007 was 582 million cubic feet equivalent(1). • Secured rig for drilling operations on Eugene Island blocks 183 and 184. • Spudded the Eugene Island 183 A-6 development well, the first as a public company. • Designated as Operator by the US Minerals Management Service ("MMS") in the Eugene Island 183 block, the southern half of the Eugene Island 184 block, the South Marsh Island blocks 5 and 6 and the Ship Shoal 205 blocks. Corporate Highlights • Raised 48.9 million (gross) and was admitted to trading on the AIM market of the London Stock Exchange. • Completed the acquisition of the onshore Sorrento Dome property in April 2007. • Completed the acquisition of South Marsh Island 5 and 6 and Ship Shoal 205 exploration blocks in May 2007. Assignment of ownership has subsequently been approved by the MMS. • Completed the acquisition of certain interests in the US outer continental shelf Eugene Island 172, 183 and 184 blocks in July 2007. Financial Highlights • Revenue of $5.5 million. • $1.3 million loss before interest, taxes, depreciation, depletion, amortisation and exploration expenses (excluding IPO costs). • Operating loss $4.1 million. Post Balance Sheet Events • Confirmed highest bidder on two leases (Ship Shoal Block 201 and Main Pass Block 115) at October 2007 MMS Lease Sale 205. The Company is awaiting final award of leases. Howard Wilson, President and Chief Executive of Leed, commented: "The last six months have been a period of tremendous growth for the Company.Following the flotation on AIM, Leed is in a strong financial position and iswell placed operationally with a balanced portfolio of assets containingproducing, near term development and high impact exploration acreage. Withongoing programmes across Leed's portfolio, the upcoming period is set to be anexciting time for the Company." (1) Using a conversion factor of 6 thousand cubic feet of gas to one barrel ofoil Enquiries: For further information: Leed Petroleum PLCHoward Wilson, President and Chief Executive +1 337 278 9120James Slatten, Chief Operating Officer +1 337 257 5796 Matrix Corporate Capital LLPAlastair Stratton +44 20 7925 3300Tim Graham +44 20 7925 7852 Pelham Public RelationsAlisdair Haythornthwaite +44 20 7743 6676Evgeniy Chuikov +44 20 3008 5506 Chairman's Review The first half of 2007 has been a period of growth for Leed, in terms of boththe asset portfolio and financial resources. The flotation was a great successwith £48.9 million (gross) of new money being raised during a difficulttime in the financial markets. The successful capital raising under suchconditions illustrates, I believe, the depth and experience of our managementteam and the quality of our asset portfolio. The Company is now wellcapitalised allowing us to aggressively pursue our growth plans. The acquisition of the Eugene Island properties brought production andadditional cash flow to the Company, in addition to high quality explorationprospects with major upside. The Eugene Island 183 A-6 well, which was spuddedon 16 September, is the first step in unlocking that potential. If successful,the well is expected to significantly grow the Company's production andprofitability and will be the first of several wells in the field. As at today'sdate, the well has not yet reached a depth sufficient to test the targetedhorizons, drilling continues and an announcement will be made in due course. The acquisitions in April and May brought a mixture of low risk development andappraisal projects together with high upside exploration potential. Theseadditions have diversified our asset base which now spans onshore SouthLouisiana and across the shallow waters of the central Gulf of Mexico. Theportfolio as a whole now contains an impressive and diversified prospectinventory, which will allow the Company to grow through the drill bit for yearsto come. The coming months will be a very exciting time as the company's drilling programprogresses. We will also look to make appropriate add-on asset acquisitions tofurther grow the asset portfolio. Robert AdairChairman4 December 2007 Financial Review Income statement Increased revenues of $5.5 million for the six month period ended 30 September2007 (as compared to $4.3 million for half-year ended 30 September 2006 and $7.6million for year-ended 31 March 2007) were driven by slightly higher productionvolumes (582 million cubic feet equivalent and 569 million cubic feet equivalentfor the six month interim accounts ended 30 September 2007 and 2006respectively; 1 billion cubic feet equivalent for the year ended 31 March 2007)and higher prices ($9.40 per thousand cubic feet equivalent ("mcfe") and $7.54per mcfe for the six month interim periods ended 30 September 2007 and 2006respectively; $7.55 per mcfe for the year ended 31 March 2007). Leed and itssubsidiaries (together the "Group") has had higher than historical production onits operated asset; however, volumes from the non-operated properties declined,particularly the East Cameron assets. Moreover, only three and a half months ofrevenue attributable to the Eugene Island assets are contained in the revenuesfor the period. Lease operating expenses increased more than expected on the Group'snon-operated properties. Depletion and amortisation of the non-operatedproperties also increased with the completion of the East Cameron 318 platform.This was offset somewhat by depletion and amortisation due to the acquisition ofthe Eugene Island operated properties at a lower cost basis per unit of reservesthan the East Cameron and Main Pass assets. The increase in seismic data expense in the period is due to data purchased foracquisitions made during this period as well as data purchased by the Group toevaluate acreage available at the MMS lease sale held in October 2007. This costis geological and geophysical in nature and is expensed as incurred inaccordance with the successful efforts method of accounting for its oil and gasassets which has been adopted by the Group. Higher insurance costs resulted from higher premium rates incurred after twomajor hurricanes hit the northern Gulf of Mexico in 2005 as well as theadditional assets now being insured, especially the Eugene Island 184 platform. Administrative expenses for the period are higher due to new employee hiring inanticipation of becoming operator at Eugene Island 184. Additionally, the Groupincurred significant marketing, legal and accounting fees relative to theincorporation of the PLC in the UK, amendments to its bank credit facility andconversion of its accounting books and records to International FinancialReporting Standards from US generally accepted accounting principles. Other gains and losses reflect realised and unrealised gains and losses on gashedging contracts and interest rate swaps which were required under the Group'sbank credit facility. A summary of the derivative financial instruments ispresented below at note 4. No new contracts were entered into during the periodunder review. As discussed below at note 3, financing costs include $1.32 million of expensedarrangement and commitment fees for the Group's credit facility. Balance sheet Intangible assets of $1.9 million at 30 September 2007 are primarily the cost ofthe South Marsh Island blocks 5 and 6 and the Ship Shoal block 205 assetsacquired in May 2007. Changes in the costs of property, plant and equipment account from $54.3 millionat 31 March 2006 to $87.1 million at 30 September 2007 (see note 5 below) resultprimarily from the June 2006 acquisition of the Grand Isle assets ($2.2million), the April 2007 acquisition of the Sorrento Dome assets ($245,000), theJune 2007 acquisition of the Eugene Island assets ($13.1 million) and capitalprojects at the East Cameron and Main Pass assets, including addition of theEast Cameron 318 platform and the drilling of several wells ($16.7 million). Current assets are higher for the period under review when compared to otherperiod presented due primarily to excess cash raised in the Group's August 2007flotation and higher trade receivables due to increased revenues from theaddition of the Eugene Island assets. Equity infusions for the year ended 31 March 2007 included $18 million inFebruary 2007 from a private source; $10 million of this amount was used to paydown borrowings. On 15 August 2007, the Company raised $91.6 million (net) from its flotation onthe AIM market of the London Stock Exchange and associated exercise of warrants;nearly $80 million of those funds were used to pay down borrowings to almost nilas at 30 September 2007. Cash flow statement Net cash used in operations of $5.3 million includes $2.0 million of directflotation costs and marketing, $1.4 million of seismic costs and $360,000 ofprofessional fees incurred as a result of amendments to the credit facility,debt issuance and the change from US generally accepted accounting principles toInternational Financial Reporting Standards. The downturn in production fromthe non-operated fields, combined with increased operating expenses on thoseassets also contributed to the net use of cash. Outlook The drilling results of the Eugene Island 183 A-6 well are expected in the nearfuture. If this well is successful, it is expected that the Company willexperience significant reserve growth and production will increase bothsubstantially and in the near term. Facilities are already in place to handleany production. Assuming a successful first well and dependent on test results,Leed will likely perform additional drilling at Eugene Island to further definethe extent of reservoirs, to accelerate production or to evaluate otherprospects. The Company was the highest bidder at the October 2007 MMS lease sale on MainPass block 115 and Ship Shoal 201, and it is expected that the MMS will awardthese leases to the Company. Technical studies being performed on these leaseblocks may result in the drilling of these prospects ahead of other projects inthe Company's inventory. The Company continues to seek suitable acquisitions that fit its Gulf of Mexicostrategy. It also intends to evaluate opportunities that may present themselvesin the March 2008 MMS lease sale. If any acquisition were made, the Companywould prioritise its projects accordingly. Leed Petroleum PLC Consolidated Income Statement For the six months ended 30 September 2007 6 months ended 6 months ended 12 months ended 30 Sept 2007 30 Sept 2006 31 March 2007 $000 $000 $000 Note Unaudited Unaudited Audited Continuing operations 5,471 4,290 7,631Revenue Cost of salesProduction costs (1,902) (1,298) (2,201)Depletion and amortization (2,248) (1,883) (3,736)Gross Profit 1,321 1,109 1,694 Seismic data (1,383) (63) (63)Insurance (1,256) (195) (791)Administration (2,754) (1,334) (4,276)Operating loss (4,072) (483) (3,436) Other gains and losses 488 1,642 982Finance income 118 223 538Finance costs 3 (4,038) (2,501) (5,358)IPO costs (1,786) - -Loss before taxation (9,290) (1,119) (7,274) Taxation 2,362 402 2,416Loss for the period (6,928) (717) (4,858) Loss per share basic and diluted (cents) 2 (4.54) (0.69) (4.55) Leed Petroleum PLC Consolidated Balance Sheet 30 September 2007 30 Sept 30 Sept 31 March 2007 2006 2007 $000 $000 $000 Note Unaudited Unaudited AuditedAssetsNon-Current AssetsGoodwill 29,005 29,005 29,005Intangible exploration and evaluation assets 1,937 - 208Derivative financial instruments 4 8 104 65Trade and other receivables 3 639 - -Property, plant and equipment 5 79,862 60,067 66,162 111,451 89,176 95,440 Current AssetsTrade and other receivables 5,759 4,070 2,898Derivative financial instruments 4 258 1,054 97Cash and cash equivalents 11,624 682 6,123 17,641 5,806 9,118 LiabilitiesCurrent liabilitiesTrade and other payables 3,614 3,950 3,230Current income tax liabilities 148 - -Finance lease obligations 3 9 8 8Derivative financial instruments 4 183 20 155Short-term Borrowings 3 - 5,743 - 3,954 9,721 3,393 Net current assets 13,687 (3,915) 5,725 Non-current liabilitiesLong-term Borrowings 3 3 59,474 62,835Derivative financial instruments 4 853 521 957Decommissioning obligation 5,311 3,191 3,225Deferred tax 7,923 12,447 10,433 14,090 75,633 77,450 Net assets 111,048 9,628 23,715 Shareholders' equityOrdinary Class A share capital 23,636 10,200 11,778Ordinary Class B share capital - - -Share premium 98,176 - 16,400Translation reserve - - (29)Retained deficit (10,764) (572) (4,434)Total shareholders' equity 111,048 9,628 23,715 Leed Petroleum PLC Consolidated Cash Flow Statement For the six months ended 30 September 2007 6 months 6 months 12 months ended ended ended 30 Sept 2007 30 Sept 2006 31 March 2007 $000 $000 $000Continuing Operations Unaudited Unaudited Audited(Loss) before taxation (9,290) (1,119) (7,274)Adjustments for:Depreciation and amortization 2,312 1,923 3,837Finance income (118) (223) (538)Finance expense 3,746 2,501 5,358Share based payments 598 - -Fair value changes on gas hedges and (180) (473) 1,076interest swapsChanges in working capital:(Increase)/decrease in trade and other (56) 1,081 59receivables(Increase)/decrease in prepaid expenses (2,764) 126 881Increase/(decrease) in payables 366 (3,270) 382Cash (used in) generated from continuing (5,386) 546 3,781operationsCorporate taxation paid - - -Net cash (used in) from continuing (5,386) 546 3,781operations Cash flows from investing activitiesPurchase of intangible assets (1,937) - (1,990)Purchase of property plant and equipment (12,434) (6,689) (16,169)Interest received and realized foreign 76 89 105currency gainsNet cash used in investing activities (14,295) (6,600) (18,054) Cash flows from financing activitiesNet proceeds from issue of ordinary shares 93,634 - 17,978Interest and other financing costs paid (3,691) (2,357) (4,455)Capital element of finance lease repayment (4) (3) (6)Borrowings raised 14,600 18,907 23,407Borrowings repaid (79,357) (10,000) (16,717)Net cash from financing activities 25,182 6,547 20,207 Net increase in cash and cash equivalents 5,501 493 5,934 Cash and cash equivalents at beginning of 6,123 189 189periodCash and cash equivalents at end of period 11,624 682 6,123 Leed Petroleum PLC Consolidated Statement of Changes in Equity For the six months ended 30 September 2007 Share Share Translation Retained Capital Premium Reserve Earnings Total $000 $000 $000 $000 $000 At 1 April 2006 10,200 - - (134) 10,066Loss attributable to shareholders - - - (717) (717)Share-based payment credit - - - 279 279At 30 September 2006 10,200 - - (572) 9,628Loss attributable to shareholders (4,141) (4,141)Share capital issued 1,578 16,422 - - 18,000Share issue costs - (22) - - (22)Share-based payment credit - - - 279 279Exchange differences on Translation of foreign operations - - (29) - (29)At 31 March 2007 11,778 16,400 (29) (4,434) 23,715Loss attributable to shareholders - - - (6,928) (6,928)Share capital issued (see note 6) 11,858 87,494 - - 99,352Share issue costs - (5,718) - - (5,718)Share-based payment credit - - - 598 598Exchange differences on Translation of foreign operations - - 29 - 29At 30 September 2007 23,636 98,176 - (10,764) 111,048 Notes to the interim accounts 1. General information and basis of presentation Leed Petroleum PLC (formerly Darcy Energy Holdings UK, Ltd) (the "Company") wasregistered in the United Kingdom in December 2006 and wholly owns a singlesubsidiary, Leed Petroleum Inc. ("LPI"), a US (Delaware) corporation. Thisconsolidated presentation of the Group includes prior periods where LPI was thetop-tiered entity. The financial statements were approved by the directors and authorised for issueon 4 December 2007. The statements have been prepared in accordance withInternational Accounting Standard 34, Interim Financial Reporting, as adopted bythe EU. The policies and presentation in these interim accounts are consistentwith those followed in the last annual audit of the Group's accounts. The comparative figures for the year ended 31 March 2007 do not constitutestatutory accounts as defined in section 240 of the Companies Act 1985. Thestatutory accounts for that year have been delivered to the Registrar ofCompanies. The auditors' report that accompanied those accounts was unqualifiedand did not contain statements under section 237(2) or (3) of the Companies Act1985. 2. Loss per share The calculation of basic and diluted loss per share is based upon the following: 6 months ended 6 months ended 12 months ended 30 September 2007 30 September 2006 31 March 2007 unaudited unaudited audited $ $ $ Loss for the period (basic and diluted) (6,928,454) (716,899) (4,857,729) Weighted average number of ordinary shares at the 152,677,767 104,615,385 106,655,718end of the period for (basic and diluted) (Loss) per share basic and diluted (cents)(see (4.54) (0.69) (4.55)note 6) 3. Borrowings and finance costs In addition to the interest expense on the borrowings noted below, finance costsin the 6 months to 30 September 2007 include the expensing of $1.32 million ofarrangement and commitment fees on the repayment of loans in this period. At 30September 2007 the Group still has $639,000 of prepaid arrangement andcommitment fees, classified with non-current assets, in relation to the Group'songoing credit facility. The Group's borrowings and interest-bearing loans were: Current 30 September 30 September 31 March 2007 2006 2007 $000 $000 $000 Loans from significant shareholder - 5,743 -Finance lease obligations 9 8 8 9 5,751 8Non-currentLoans from significant shareholder - 17,530 6,286Bank loans - 41,933 56,541Finance lease obligations 3 11 8 3 59,474 62,835 The weighted average effective interest rates on the Group's borrowings were asfollows: 30 September 30 September 31 March 2007 2006 2007 % % % Loans from significant shareholder - fixed rates - 2.3 2.5 Bank borrowings - floating rates - 7.7 7.6Finance leases - fixed rates 9.3 9.3 9.3 The maturity profile of the Group's non-current bank loans was as follows: 30 September 30 September 31 March 2007 2006 2007 $000 $000 $000 Between one and two years 3 - 4Between two and five years - 11 22,104More than five years - 59,463 40,727 3 59,474 62,835 4. Derivative financial instruments 30 September 30 September 31 March 2007 2006 2007 $000 $000 $000 Assets Forward commodity contracts 266 1,054 162Interest rate swaps - 104 -Derivative financial instruments assets 266 1,158 162 Current portion 258 1,054 97Non current portion 8 104 65 LiabilitiesForward commodity contracts (753) (301) (851)Interest rate swaps (283) (240) (261)Derivative financial instruments liabilities (1,036) (541) (1,112) Current portion (183) (20) (155)Non current portion (853) (521) (957) 5. Property, plant and equipment Oil and natural Leasehold Other fixed gas assets improvements assets Total $000 $000 $000 $000CostAt 31 March 2006 53,946 62 360 54,368Additions 6,473 - 15 6,488Transfers from evaluation 2,179 - - 2,179At 30 September 2006 62,598 62 375 63,035Additions 7,988 21 8,009Transfers from evaluation - - - -At 31 March 2007 70,586 62 396 71,044Additions 15,760 - 44 15,804Transfers from evaluation 208 - - 208At 30 September 2007 86,554 62 440 87,056 Accumulated depreciationAt 31 March 2006 1,009 4 32 1,045Charge for the period 1,876 6 41 1,923At 30 September 2006 2,885 10 73 2,968Charge for the period 1,860 6 48 1,914At 31 March 2007 4,745 16 121 4,882Charge for the period 2,248 7 57 2,312At 30 September 2007 6,993 23 178 7,194 Net book amountAt 31 March 2006 52,937 58 328 53,323At 30 September 2006 59,713 52 302 60,067At 31 March 2007 65,841 46 275 66,162At 30 September 2007 79,561 39 262 79,862 6. Issues of equity On 31 July 2007, 16,576,307 ordinary A shares of 1 pence each ("Ordinary AShares") were issued to Coniston International Capital Limited pursuant to theexercise of options and 45,000,000 Ordinary A Shares were issued to GlobalStructured Finance, Inc. pursuant to the exercise of warrants. On 3 August 2007, as part of the management incentive arrangements entered intoby the Company prior to its admission to AIM (the "Management IncentiveArrangements") a total of 805 ordinary B shares of 1 pence each ("Ordinary BShares") were issued to employees of the Company bringing the total Ordinary BShares in issue and outstanding pursuant to the Management IncentiveArrangements to 5,000. The rights attached to these Ordinary B Shares providedthat in the event that the stock of any company in the group became publiclytraded the Ordinary B Shares were convertible into approximately 7 - 10% of theoutstanding Ordinary A Shares. On 3 August 2007, a resolution of the board ofdirectors was passed to convert the 5,000 Ordinary B Shares to 54,056,810Ordinary A Shares. The Company has been advised that the conversion of the 5,000 Ordinary B Shares into Ordinary A Shares with agreater total nominal value pursuant to these rights was ineffective.Accordingly, the 5,000 Ordinary B Shares actually converted into 5,000 OrdinaryA Shares. Subsequently on 3 August 2007, pursuant to ordinary and special resolutions ofthe shareholders, the Company altered its share capital by the consolidation ofthe issued, and authorised but unissued, Ordinary A Shares into ordinary sharesof 5 pence each ("Ordinary Shares"). On 6 August 2007, Bayerische Hypo- Und Vereinsbank AG exercised a portion of itscall option agreement with the Company and was issued 2,998,575 Ordinary Shares. On 15 August 2007, the Company was admitted to the AIM market of the LondonStock Exchange (the "Admission") and an additional 104,090,588 Ordinary Shareswere issued as part of the placing connected with Admission. In order to complete delivery of the Ordinary Shares to which the managementteam are entitled under the Management Incentive Arrangements, the Company'slegal advisers have recommended that the B share conversion be effected by wayof a capitalisation issue of an additional 10,810,362 Ordinary Shares, with thenominal value of such shares being paid up by the capitalisation of a smallproportion of the sum currently standing to the credit of the Company's sharepremium account. The resolution approving the capitalisation issue will be putto the shareholders of the Company at the Company's first annual general meetingand, subject to the approval of the shareholders, the 10,810,362 Ordinary Shareswill be allotted and distributed, credited as fully paid, to and amongst themanagement team, bringing the total number of outstanding shares of the Companyup to the 251,020,767 Ordinary Shares disclosed in the Admission Documentrelating to Admission. If these 10,810,362 Ordinary Shares had been validly issued on 3 August 2007,the loss per Ordinary Share would be 3.66 cents, or 0.08 cents per share lessthan the 3.74 cents shown at note 2. Also, additions to share capital and sharepremium of $11,858,000 and $87,494,000 as reflected in note 5 would be$12,683,000 and $86,386,000 respectively. A recap of movement in issued shares follows: Ordinary Ordinary A shares B shares in issue in issue At 1 April 2006 (1p) 523,076,924 -Additional shares issued (1p) - -At 30 September 2006 (1p) 523,076,924 -Additional shares issued (1p) 80,947,985 4,195At 31 March 2007 (1p) 604,024,909 4,195Additional shares issued (1p) 61,576,307 805Conversion of B shares (1p) to A shares (1p) 5,000 (5,000)Subtotal of 1 p shares prior to conversion to 5p 665,606,216 -3 Aug 2007 conversion of Ordinary 1p into 5p shares 133,121,243 -Additional shares issued (5p) 107,089,162 -At 30 September 2007 (5p) 240,210,405 - INDEPENDENT REVIEW REPORT TO LEED PETROLEUM PLC Introduction We have been engaged by the company to review the condensed set of financialstatements in the half-yearly financial report for the six months ended 30September 2007 which comprises Group income statement, Statement of changes inEquity, Group balance sheet, Group cash flow statement and the related notes. Wehave read the other information contained in the half-yearly financial reportand considered whether it contains any apparent misstatements or materialinconsistencies with the information in the condensed set of financialstatements. This report is made solely to the company in accordance with guidance containedin APB Statements of Standards for Reporting Accountants "International Standardon Review Engagements (UK and Ireland) 2410". Our review work has beenundertaken so that we might state to the company those matters we are requiredto state to them in a review report and for no other purpose. To the fullestextent permitted by law, we do not accept or assume responsibility to anyoneother than the company for our review work, for this report, or for theconclusion we have formed. Directors' Responsibilities The half-yearly financial report is the responsibility of, and has been approvedby, the directors. The directors are responsible for preparing the half-yearlyfinancial report in accordance with the AIM Rules. As disclosed in note 1, the annual financial statements of the group areprepared in accordance with IFRSs as adopted by the European Union. Thecondensed set of financial statements included in this half-yearly financialreport has been prepared in accordance with International Accounting Standard34, ''Interim Financial Reporting,'' as adopted by the European Union. Our Responsibility Our responsibility is to express to the Company a conclusion on the condensedset of financial statements in the half-yearly financial report based on ourreview. Scope of Review We conducted our review in accordance with International Standard on ReviewEngagements (UK and Ireland) 2410, ''Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity'' issued by the AuditingPractices Board for use in the United Kingdom. A review of interim financialinformation consists of making enquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing (UK and Ireland) andconsequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly, wedo not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believethat the condensed set of financial statements in the half-yearly financialreport for the six months ended 30 September 2007 is not prepared, in allmaterial respects, in accordance with International Accounting Standard 34 asadopted by the European Union and the AIM rules. Grant Thornton UK LLPChartered accountantsHemel Hempstead4 December 2007 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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