30th Mar 2007 07:02
Wren Homes Group PLC30 March 2007 For release at 7.00am on 30 March 2007 Wren Homes Group Plc Interim Results for Half Year Ended 31 January 2007 "Continued Strong Progress with Maiden Dividend" Wren Homes Group Plc ("Wren" or "the Group"), the AIM Listed retirement homesand specialist developer, which has a strategy of specialising in apartmentdevelopments for the 'active' retirement market, with operations around thesouthern M25 corridor, is pleased to announce record interim results for the sixmonths period to 31st of January 2007. Wren moved to AIM in November 2006,successfully raising some £3.0 million of new money. Financial Highlights • Pre-tax profit: £245,504 (2006: loss £176, 406) • Earnings per share: 0.48p (2006: loss 0.33p) • Maiden interim dividend of 0.25p, payable on 22 June 2007 to shareholders registered on 4 May 2007. • Cash of £1.5m at period end. Operational Highlights Work in Progress • Sales at Wren Court, Warlingham, are progressing well. • A second adjoining site in Warlingham has been secured - an amended and enlarged planning application for approx. 60 assisted living apartments submitted. • Planning achieved for 20 retirement apartments in Carshalton - will complete purchase of land shortly. • Development of non retirement apartments in Kenley should be completed around July this year - are considering several offers to purchase part or all of the properties off plan. Land Bank • Options over a further 12 sites - subject to planning consents has the potential of approx. 300 units, mainly within retirement housing developments. Corporate • Moved to newer rented offices in Epsom more suitable to meet our ambitions • Upgraded and improved the Group's computer systems • Renewed and improved our web-site to shift Wren's focus on retirement housing schemes, which should be launched in April • Appointed Richard Hill, formerly in a senior position with McCarthy & Stone, as Marketing Director designate • Appointed a new Land Buyer to extend site acquisition by replicating Wren's skills of land buying Peter West, Chairman of Wren Homes Group Plc, commented: "Wren has now completed its successful move to AIM and I am pleased that theGroup has been able to accelerate its progress and further improve its capacityto continue to expand over the coming years." "Taking the market as a whole, and with the number of enquiries andopportunities we are seeing, I believe that the fundamentals of our marketremain sound. Taken with the strength of current sales and our continuingplanning consents, I look forward to the future with considerable confidence." EnquiriesWren Homes Group plcPeter West, Chairman Tel: 01372 742 244www.wrenhomesplc.co.uk JM FinnLeslie Kent (Sales) Tel: 0207 628 9688Matthew Robinson/Charles Cunningham(Corporate Finance) Adventis Financial PRTarquin Edwards Tel: 020 7034 4758 / 07879 458 364 WREN HOMES GROUP PLC CHAIRMAN'S STATEMENT HALF YEAR ENDED 31 JANUARY 2007 Trading Results I am pleased to report the results for Wren Homes Group Plc ("Wren" or "theGroup"), the AIM traded Home Counties-based retirement homes and specialistdeveloper, for the 6 months ended 31 January 2007. The Group achieved profit onordinary activities before tax of £245,504 (2006: loss £176,406). The move intoprofit represents a marked improvement on the loss incurred for the same periodlast year. The results reflect a successful six months trading for the Group, which hasseen it make considerable progress in its ambition to consolidate on position inthe premium retirement sector. A number of sites are currently underconstruction or planning and within high quality areas in Surrey and Sussex. Turnover for the period under review of £477,485 (2006: £1,188,995) representsprofit-share at Wren Court, Warlingham, where, having sold on the land inJanuary 2005, Wren acted as developer and contractually retained a substantialinterest in the profit of the apartments. Dividend As a result of their confidence in the future, the Directors are delighted toannounce the payment of a maiden interim dividend of 0.25 pence per sharepayable on 22 June 2007 to shareholders on the register on 4 May 2007. The interim dividend is covered 1.67 times by earnings. The directors expect to pursue a progressive dividend policy in line withearnings growth. Work in Progress Sales at Wren Court, Warlingham, are progressing well. The feed back fromresidents is extremely positive, which will allow us to market all ourdevelopments off the back of Wren Court's success. A second adjoining site in Warlingham has been secured on the same developmentterms as those for the first. This second site has recently been increased insize and as a result, an amended and enlarged planning application forapproximately 60 assisted living apartments has been submitted. We have recently achieved planning for 20 retirement apartments in Carshaltonand will be completing the purchase of the land shortly. Our development of non retirement apartments in Kenley should be completedaround July this year and we are considering several offers to purchase part orall of the properties off plan. Land Bank In addition to the above sites, we also hold options over a further 12 sites,which, subject to planning consents, in the opinion of the directors, has thepotential of providing approximately a further 300 units, mainly withinretirement housing developments. WREN HOMES GROUP PLC CHAIRMAN'S STATEMENT CONTINUED The Retirement Market Over the last few months, your directors have been looking at various otherproducts within the retirement sector that would provide Wren with greaterflexibility to change and adapt its offering to suit prevailing marketconditions. These other products would also allow the Group to optimise thereturns it receives from sites that the Group already controls. Corporate As referred to in my last statement dated 2 February 2007, Wren has nowcompleted its successful move to AIM. I am very pleased to report that as aresult of the interest in Wren, the Group now has a shareholder register whichincludes a number of major investment funds and I would like to welcome them asshareholders. The introduction to the AIM Market has allowed us to accelerate the progressmade over the last few years, in several ways. We have: •Moved to newer rented offices in Epsom more suitable to meet our ambitions; •Upgraded and improved the Group's computer systems; •Renewed and improved our web-site to shift Wren's focus on retirement housing schemes, which should be launched in April; •Appointed Richard Hill, formerly in a senior position with McCarthy & Stone, as Marketing Director designate; •Appointed a new Land Buyer to extend site acquisition by replicating Wren's skills of land buying; Outlook and Future Prospects Our core product has, through research and experience, become more fully definedand our methods of land identification and acquisition have been successfullyrefined. This very pleasing progress is clearly illustrated by the number of oursites under construction, awaiting planning permission or under option. We have a most attractive finished retirement scheme, which provides the Groupwith a "reference site" from which to promote and sell future schemes. We haveincreased our staff and improved our capacity to continue to expand the Groupover the coming years. I would like to take this opportunity to thank my colleagues and Wren's stafffor their support and hard work and all our advisers for the very successfulintroduction onto the AIM Market. Peter WestChairman29 March 2007 WREN HOMES GROUP PLC CONSOLIDATED INCOME STATEMENT For the six months ended 31 Six months Six months YearJanuary 2007 ended ended ended 31 Jan 2007 31 Jan 2006 31 July 2006 (restated) (restated) unaudited unaudited audited Note £ £ £Continuing operationsRevenue 477,485 1,188,995 3,349,995Cost of sales (36,569) (1,109,451) (1,197,774) Gross profit 440,916 79,544 2,152,221Administration expenses (364,990) (243,642) (410,903) Profit/(loss) from operations 75,926 (164,098) 1,741,318Investment income 196,831 15,701 29,727Finance cost (27,253) (28,009) (54,867) Profit/(loss) before tax fromcontinuing operations 245,504 (176,406) 1,716,178Income tax (76,800) 78,574 (503,130) Profit/(loss) for the period fromcontinuing operations after tax 168,704 (97,832) 1,213,048 All attributable to equityholders of the parent Earnings per share The weighted number of shares in 34,942,315 29,850,283 30,782,593issueBasic 3 0.48p (0.33)p 3.94pDiluted 3 0.48p (0.30)p 3.78p WREN HOMES GROUP PLC CONSOLIDATED BALANCE SHEET 31 Jan 2007 31 Jan 2006 31 July 2006 (restated) (restated) unaudited unaudited audited Note £ £ £Non-current assetsGoodwill 4 3,135,203 3,135,203 3,135,203Investment property 240,000 240,000 240,000Property plant & equipment 82,888 368,728 72,230Trade & other receivables 2,150,000 - 2,150,000 Total non-current assets 5,608,091 3,743,931 5,597,433 Current AssetsInventories 1,569,715 1,211,408 1,232,940Trade & other receivables 2,224,140 1,642,524 1,882,472Cash & cash equivalents 1,500,174 695 1,853 Total current assets 5,294,029 2,854,627 3,117,265 Total Assets 10,902,120 6,598,558 8,714,698 Current liabilitiesTrade payables 291,912 181,926 91,052Tax liabilities 679,275 356,471 591,926Obligations under finance leases 11,965 9,104 10,535Other payables 43,915 630,654 539,640Bank overdrafts and loans 1,137,429 1,174,863 1,399,750 Total current liabilities 2,164,496 2,353,018 2,632,903 Non-current liabilitiesObligations under finance leases 47,020 58,986 53,361 Total liabilities 2,211,516 2,412,004 2,686,264 Net assets 8,690,604 4,186,554 6,028,434 EquityIssued share capital 5 4,140,266 3,083,056 3,306,933Share premium account 6 3,764,896 1,781,640 2,104,763Equity reserves - 16,000 -Accumulated profits 6 785,442 (694,142) 616,738 Total equity attributable toequity holders of the parent 8,690,604 4,186,554 6,028,434 WREN HOMES GROUP PLC STATEMENT OF CHANGES IN EQUITY Share Share Equity Retained Total Capital Premium Reserve ReservesSix months ended 31January 2007 £ £ £ £ £Balance at 1 August 2006 3,306,933 2,104,763 - 616,738 6,028,434Net profit for the period - - - 168,704 168,704Share issue 833,333 1,660,133 - - 2,493,466 Balance at 31 January 4,140,266 3,764,896 - 785,442 8,690,6042007 Share Share Equity Retained Total Capital Premium Reserve Reserves £ £ £ £ £Six months ended 31 January 2006 Balance at 1 August 2005 3,083,056 1,781,640 16,000 (596,310) 4,284,386Net loss for the period - - - (97,832) (97,832) Balance at 31 January 3,083,056 1,781,640 16,000 (694,142) 4,186,5542006 Share Share Equity Retained Total Capital Premium Reserve ReservesYear ended 31 July 2006 £ £ £ £ £Balance at 1 August 2005 3,083,056 1,781,640 16,000 (596,310) 4,284,386Net profit for the period - - - 1,213,048 1,213,048Share issue 223,877 323,123 - - 547,000Conversion of convertible - (16,000) (16,000)loan Balance at 31 July 2006 3,306,933 2,104,763 - 616,738 6,028,434 WREN HOMES GROUP PLC CONSOLIDATED CASH FLOW STATEMENT For the 6 months ended 31 January Six months Six months Year2007 ended ended ended 31 Jan 2007 31 Jan 2006 31 July 2006 (restated) (restated) unaudited unaudited audited Note £ £ £Operating Activities Cash (used in)/generated 10 (a) (377,333) 794,136 200,877operationsIncome taxes paid - - (236,560) Cash flows from operating (377,333) 794,136 (35,683)activities Investing activitiesInterest received 196,831 15,701 29,727Interest paid on loans and bank (7,336) (11,786) (22,523)overdraftsInterest paid on development - (71,273) (76,549)loansOther interest paid (19,917) (16,223) (32,344)Purchase of tangible assets (18,420) (6,716) (251,294)Proceeds on disposal of tangible - - 420,000assets Cash flows from investing 151,158 (90,297) 67,017activities Financing activitiesNew loans 140,266 - 39,151Increase in other loans - - 429,384Loans repaid (757,004) (947,934) (933,682)Hire purchase repayments (4,911) (3,479) (7,673)Share issue 2,493,466 - - Cash flows from financing 1,871,817 (951,413) (472,820)activities Net increase/(decrease) in cashand cash equivalents 1,645,642 (247,574) (441,486)Cash and cash equivalents brought (233,001) 208,485 208,485forward Cash and cash equivalents carried 1,412,641 (39,089) (233,001)forward WREN HOMES GROUP PLC NOTES TO THE INTERIM RESULTS For the 6 months ended 31 January 2007 1. Accounting policies The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). Comparative information for the six months ended 31 January 2006 and for the year ended 31 July 2006 have been restated on an IFRS basis. 2. Changes in accounting policy On 1 August 2006, the Company adopted International Accounting and Financial Reporting Standards (jointly "IFRS"), as adopted by the European Union ("EU"). These accounts have been prepared on a consistent basis under applicable IFRS and the effects of this transition reported in accordance with IFRS 1 (First time Adoption of IFRS's). These unaudited interim financial statements do not constitute statutory accounts within the meaning of s240 of the Companies Act 1985. The statutory accounts for the year ended 31 July 2006 (from which comparative figures have been extracted and restated in accordance with IFRS) on which the auditors gave an unqualified audit report, have been filed with the Registrar of Companies. WREN HOMES GROUP PLC NOTES TO THE INTERIM RESULTS 3. Earnings/(loss)per share Basic earnings/(loss) per share The calculation of basic earnings/(loss) per share for the year ended 31 July 2006 and for the six months ended 31 January 2006 and 2007 have been determined as the net profit/(loss) after tax divided by the weighted average number of equity shares in issue in the year. 6 Months 6 Months Year ended ended 31 Jan ended 31 Jan 31 July 2007 2006 2006 £ £ £ Net profit/(loss) attributable to ordinary shareholders 168,704 (97,832) 1,213,048 Number of ordinary shares Issued ordinary shares at the beginning of the period 32,089,054 29,850,283 29,850,283 Issue of shares in the period 8,333,333 - 2,238,771 Issued ordinary shares at the end of 40,422,387 29,850,283 32,089,054 the period Weighted average number of ordinary shares Issued ordinary shares at the beginning of the period 32,089,054 29,850,283 29,850,283 Issue of shares part way through the 2,853,261 - 932,310 period Weighted average number of ordinary shares during the year 34,942,315 29,850,283 30,782,593 Basic earnings/(loss) per share 0.48p (0.33)p 3.94p Diluted earnings/(loss) per share 6 Months 6 Months Year ended ended 31 Jan ended 31 Jan 31 July 2007 2006 2006 Diluted earnings/(loss) per share at 0.48p (0.30)p 3.78p period end Diluted earnings/(loss) per share is calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period adjusted for the effects of all potentially dilutive shares. The only potential dilutive share in issue was the convertible loan note issued on 21 July 2005 and converted on 2 March 2006. The denominators for the purposes of calculation of both basic and diluted earnings/(loss) per share have been adjusted to reflect the capitalisation issue in 2006. Diluted earnings/(loss) per share is equal to basic earnings per share at 31 January 2007 as there was no potentially diluted shares in issue during this period. WREN HOMES GROUP PLC NOTES TO THE INTERIM RESULTS 4. Goodwill The directors are of the opinion that there has been no impairment to the goodwill. 5. Share Capital 31 Jan 2007 31 Jan 2006 31 July 2006 £ £ £ Authorised 99,019,720 Ordinary shares of 10p each 9,901,972 3,901,972 3,901,972 10,892,000 Deferred shares of 0.9p 98,028 98,028 98,028 each 10,000,000 4,000,000 4,000,000 Allotted, issued and fully paid 40,422,387 Ordinary shares of 10p each 4,042,238 2,985,028 3,208,905 10,892,000 Deferred shares of 0.9p 98,028 98,028 98,028 each 4,140,267 3,083,056 3,306,933 During the period 8,333,333 ordinary shares of 10p were issued for cash at a premium of 26p per share. The deferred shares rank pari passu with existing ordinary shares after the holders of ordinary shares shall have received in return or distribution of £1 million for each ordinary share held, as to the right to return or distribution of capital. They also rank pari passu with existing ordinary shares after the holders of ordinary shares shall have received payment of a dividend in each financial year of £1 million for each ordinary share held, as to the right to payment of dividends. 6. Reserves Share premium account Profit and loss account £ £ Balance at 1 August 2006 2,104,763 616,738 Retained profit for the period - 168,704 Premium arising on the issue of 8,333,333 ordinary shares of 36p each less expenses 1,660,133 - 3,764,896 785,442 WREN HOMES GROUP PLC NOTES TO THE INTERIM RESULTS 7. Financial commitments At 31 January 2007 the group had annual commitments under non-cancellable operating leases as follows: Land and Building Other 31 Jan 31 Jan 31 July 31 Jan 31 Jan 31 July 2007 2006 2006 2007 2006 2006 £ £ £ £ £ £ Expiry date: Within one year - - - - - - Between two and five 28,500 - - 1,565 1,565 1,565 years 28,500 - - 1,565 1,565 1,565 8. Transactions with Directors At 31 January 2007 the Group owed P J West £289 (31 July 2006 £133). At 31 January 2006 P J West owed the Group £1,967. No interest is charged on the loan. At 31 January 2007 P A Treadaway owed the Group £2,700 (31 January 2006 £17,659, 31 July 2006 £43,017). The maximum amount outstanding during the period was £43,017 (31 January 2006 £17,659, 31 July 2006 £45,117). No interest is charged on the loan. During the period £10,000 (31 January 2006 £8,000, 31 July 2006 £18,100) was paid to Self & Co (of which P Self is the sole proprietor) for the provision of accountancy services. 9. Availability Copies of the interim results will be sent to all shareholders and will also be available at the registered office of the Company, Suite 4, Oaks House, 12-22 West Street, Epsom, KT18 7RG. WREN HOMES GROUP PLC NOTES TO THE INTERIM RESULTS 10. Cash flow statement (a) Reconciliation of operating profit to operating cash flow 31 Jan 2007 31 Jan 2006 31 July 2006 £ £ £ Profit/(loss) from operations 75,926 (164,098) 1,741,318 Depreciation of tangible assets 7,762 7,975 15,433 Development loan interest included in cost of sales - 71,273 76,549 Profit on disposal of fixed assets - - (126,382) (Increase)/decrease in work in (336,775) 878,400 1,096,868 progress (Increase) in debtors (341,668) (15,183) (2,436,257) Decrease/(increase) in creditors 217,422 15,769 (166,652) Net cash (outflow)/inflow from operating activities (377,333) 794,136 200,877 (b) Reconciliation of net flow movement in net debt Increase/(decrease) in cash in the 1,645,642 (247,574) (441,486) year Cash outflow from increase in debt and lease financing 621,649 951,413 472,820 Other non cash transactions - - 500,000 Change in net debt resulting from 2,267,291 703,839 531,334 cash flows Net debt at 31 July 2006 (1,963,820) (2,495,154) (2,495,154) Net debt at 31 January 2007 303,471 (1,791,315) (1,963,820) (c) Analysis of net cash/(debt) At 31 July Cash flow At 31 Jan 2006 2007 Cash in hand at bank 1,852 1,498,322 1,500,174 Bank overdrafts (234,853) 147,320 (87,533) Loans (1,666,923) 616,738 (1,050,185) Finance leases (63,896) 4,911 (58,985) (1,963,820) 2,267,291 303,471 (d) Non cash transactions The non cash transaction was the capitalisation of a loan. WREN HOMES GROUP PLC TRANSITION TO IFRS Reconciliations of profit and equity have been included below to enable a comparison of the 2006 interim figures with those published in the previous financial year. Reconciliation of Profit Six months to 31 January 2006 +----------------------------------------------------------------------------------------+| | Previously| IFRS| IFRS| IFRS| Effect of| Restated|| | reported| | | | | || | under|Convertible| Revenue|Goodwill|Transition| Under|| | | loan notes| | | | || | UK GAAP| |Recognition| | to| IFRS|| | | | | | | || | £| | | | IFRS| || | | £| | | | || | | | £| £| £| £|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Revenue | 1,188,995| -| -| -| -| 1,188,995|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Cost of sales |(1,109,451)| -| -| -| -|(1,109,451)|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Gross Profit | 79,544| -| -| -| -| 79,544|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Net operating | (329,148)| -| -| 85,506| 85,506| (243,642)||expenses | | | | | | |+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Loss from operations| (249,604)| -| -| 85,506| 85,506| (164,098)|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Net finance cost | (12,308)| (13,000)| 13,000| -| -| (12,308)|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Loss before tax | (261,912)| (13,000)| 13,000| 85,506| 85,506| (176,406)|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Tax | 78,574| 3,900| (3,900)| -| -| 78,574|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Loss after tax | (183,338)| (9,100)| 9,100| 85,506| 85,506| (97,832)|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Earnings per share | | | | | | |+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Basic | (0.61)p| (0.03)p| 0.03p| 0.29p| 0.29p| (0.33)p|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Diluted | (0.57)p| (0.03)p| 0.03p| 0.27p| 0.27p| (0.30)p|+--------------------+-----------+-----------+-----------+--------+----------+-----------+| | | | | | | |+--------------------+-----------+-----------+-----------+--------+----------+-----------+ Reconciliation of Profit Year to 31 July 2006| +--------------------+-----------+-----------+-----------+--------+----------+-----------+| | Previously| IFRS| IFRS 3| IFRS| Effect of| Restated|| | reported| | | | | || | under|Convertible| Revenue|Goodwill|Transition| Under|| | | loan notes| | | | || | UK GAAP| |Recognition| | to| IFRS|| | | | | | | || | £| | | | IFRS| || | | £| | | | || | | | £| £| £| £|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Revenue | 3,349,995| -| -| -| -| 3,349,995|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Cost of sales |(1,197,774)| -| -| -| -|(1,197,774)|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Gross profit | 2,152,221| -| -| -| -| 2,152,221|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Net operating | (581,915)| -| -| 171,012| 171,012| (410,903)||expenses | | | | | | |+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Profit from | 1,570,306| -| -| 171,012| 171,012| 1,741,318||operations | | | | | | |+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Net finance cost | 16,860| (13,000)| (29,000)| -| (42,000)| (25,140)|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Profit before tax | 1,587,166| (13,000)| (29,000)| 171,012| 129,012| 1,716,178|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Tax | (515,580)| 3,900| 8,550| -| 12,450| (503,130)|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Profit after tax | 1,071,586| (9,100)| (20,450)| 171,012| 141,462| 1,213,048|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Earnings per share | | | | | | |+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Basic | 3.48p| (0.03)p| (0.07)p| 0.56p| 0.46p| 3.94p|+--------------------+-----------+-----------+-----------+--------+----------+-----------+|Diluted | 3.34p| (0.03)p| (0.06)p| 0.53p| 0.44p| 3.78p|+--------------------+-----------+-----------+-----------+--------+----------+-----------+ WREN HOMES GROUP PLC TRANSITION TO IFRS CONTINUED Reconciliation of EquityAs at 31 July 2006 Previously Opening IFRS IFRS IFRS Effect of Restated reported under Balance Convertible Revenue Goodwilll Transition Under loan notes UK GAAP Sheet Recognition to IFRS £ Adjustment IFRS £ £ £ £ £ £AssetsNon-current assetsGoodwill 2,622,169 342,023 - - 171,011 513,034 3,135,203Investment 240,000 - - - - - 240,000propertyProperty Plant & 72,230 - - - - - 72,230EquipmentTrade & other 2,150,000 - - - - - 2,150.000receivablesTotal non current 5,084,399 342,023 - - 171,011 513,034 5,597,433assets Current assetsInventories 1,232,940 - - - - - 1,232,940Trade and other 1,935,972 - - (53,500) - (53,500) 1,882,472receivablesCash and cash 1,853 - - - - - 1,853equivalentsTotal current 3,170,765 - - (53,500) - (53,500) 3,117,265assets Total assets 8,255,164 342,023 - (53,500) 171,011 459,534 8,714,698 CurrentliabilitiesTrade payables 91,052 - - - - - 91,052Tax liabilities 622,676 (18,300) (3,900) (8,550) - (30,750) 591,926Obligations underfinance leases 10,535 - - - - - 10,535Other payables 537,140 45,000 (18,000) (24,500) - 2,500 539,640Bank overdraft & 1,399,750 - - - - - 1,399,750loansTotal Current 2,661,153 26,700 (21,900) (33,050) - (28,250) 2,632,903Liabilities Non- currentliabilitiesObligation underfinance leases 53,361 - - - - - 53,361 Total liabilities 2,714,514 26,700 (21,900) (33,050) - (28,250) 2,686,264 Net assets 5,540,650 315,323 21,900 (20,450) 171,011 487,784 6,028,434Shareholders'equityOrdinary sharecapital issued 3,306,933 - - - - - 3,306,933Share Premium 2,057,763 - 47,000 - - 47,000 2,104,763Equity reserve - 16,000 (16,000) - - - -Retained earnings 175,954 299,323 (9,100) (20,450) 171,011 440,784 616,738Total 5,540,650 315,323 21,900 (20,450) 171,011 487,784 6,028,434shareholders'equity WREN HOMES GROUP PLC TRANSITION TO IFRS CONTINUED Reconciliation of EquityAs at 31 January 2006 Previously Opening IFRS IFRS IFRS Effect of Restated reported under Balance Convertible Revenue Goodwilll Transition Under loan notes UK GAAP Sheet Recognition to IFRS £ Adjustment IFRS £ £ £ £ £ £AssetsNon-current assetsGoodwill 2,707,674 342,023 - - 85,506 427,529 3,135,203Investment 240,000 - - - - - 240,000propertyProperty Plant &Equipment 368,728 - - - - - 368,728Trade & other - - - - - - -receivablesTotal non current 3,316,402 342,023 - - 85,506 427,529 3,743,931assets Current assetsInventories 1,211,408 - - - - - 1,211,408Trade and otherreceivables 1,642,524 - - - - - 1,642,524Cash and cash 695 - - - - - 695equivalentsTotal current 2,854,627 - - - - - 2,854,627assets Total assets 6,171,029 342,023 - - 85,506 427,429 6,598,558 CurrentliabilitiesTrade payables 181,926 - - - - - 181,926Tax liabilities 374,771 (18,300) (3,900) 3,900 - (18,300) 356,471Obligations underfinance leases 9,104 - - - - - 9,104Other payables 585,654 45,000 13,000 (13,000) - 45,000 630,654Bank overdraft & 1,174,863 - - - - - 1,174,863loansTotal Current 2,326,318 26,700 9,100 (9,100) - 26,700 2,353,018Liabilities Non- currentliabilitiesObligation underfinance leases 58,986 - - - - - 58,986 Total liabilities 2,385,304 26,700 9,100 (9,100) - 26,700 2,412,004 Net assets 3,785,725 315,323 (9,100) 9,100 85,506 400,829 4,186,554Shareholders'equityOrdinary sharecapital issued 3,083,056 - 3,083,056Share Premium 1,781,640 - 1,781,640Equity reserve - 16,000 16,000 16,000Retained earnings (1,078,971) 299,323 (9,100) 9,100 85,506 384,829 (694,142)Total 3,785,725 315,323 (9,100) 9,100 85,506 400,829 4,186,554shareholders'Equity WREN HOMES GROUP PLC TRANSITION TO IFRS CONTINUED Reconciliation of Equity As at 1 August 2005 +-----------------+----------+-----------+-----------+---------+----------+---------+| |Previously| IFRS| IFRS| IFRS| Effect of| Restated|| | reported| | | | | || | under|Convertible| Revenue|Goodwilll|Transition| Under|| | | loan notes| | | | || | UK GAAP| |Recognition| | to| IFRS|| | | | | | | || | £| | | | IFRS| || | | £| | | | || | | | £| £| £| £|+-----------------+----------+-----------+-----------+---------+----------+---------+|Assets | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Non-current | | | | | | ||assets | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Goodwill | 2,793,180| -| -| 342,023| 342,023|3,135,203|+-----------------+----------+-----------+-----------+---------+----------+---------+|Investment | -| -| -| -| -| -||property | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Property Plant & | 369,987| -| -| -| -| 369,987||Equipment | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Trade & other | 1,600,000| -| -| -| -|1,600,000||receivables | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Total non current| 4,763,167| -| -| 342,023| 342,023|5,105,190||assets | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+| | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Current assets | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Inventories | 2,329,808| -| -| -| -|2,329,808|+-----------------+----------+-----------+-----------+---------+----------+---------+|Trade and other | 7,715| -| -| -| -| 7,715||receivables | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Cash and cash | 208,485| -| -| -| -| 208,485||equivalents | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Total current | 2,546,008| -| -| -| -|2,546,008||assets | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+| | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Total assets | 7,309,175| -| -| 342,023| 342,023|7,651,198|+-----------------+----------+-----------+-----------+---------+----------+---------+| | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Current | | | | | | ||liabilities | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Trade payables | 140,163| -| -| -| -| 140,163|+-----------------+----------+-----------+-----------+---------+----------+---------+|Tax liabilities | 461,912| (10,200)| (8,100)| -| (18,300)| 443,612|+-----------------+----------+-----------+-----------+---------+----------+---------+|Obligations under| | | | | | ||finance leases | | | | | | || | 7,674| -| -| -| -| 7,674|+-----------------+----------+-----------+-----------+---------+----------+---------+|Other payables | 607,040| 18,000| 27,000| -| 45,000| 652,040|+-----------------+----------+-----------+-----------+---------+----------+---------+|Bank overdraft & | 2,059,428| -| -| -| -|2,059,428||loans | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Total Current | 3,276,217| 7,800| 18,900| -| 26,700|3,302,917||Liabilities | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+| | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Non - current | | | | | | ||liabilities | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Obligation under | | | | | | ||finance leases | | | | | | || | 63,895| -| -| -| -| 63,895|+-----------------+----------+-----------+-----------+---------+----------+---------+| | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Total liabilities| 3,340,112| 7,800| 18,900| -| 26,700|3,366,812|+-----------------+----------+-----------+-----------+---------+----------+---------+| | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Net assets | 3,969,063| (7,800)| (18,900)| 342,023| 315,323|4,284,386|+-----------------+----------+-----------+-----------+---------+----------+---------+|Shareholders' | | | | | | ||equity | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+|Ordinary share | | | | | | ||capital issued | | | | | | || | 3,083,056| -| -| -| -|3,083,056|+-----------------+----------+-----------+-----------+---------+----------+---------+|Share Premium | 1,781,640| -| -| -| -|1,781,640|+-----------------+----------+-----------+-----------+---------+----------+---------+|Equity reserve | -| 16,000| -| -| 16,000| 16,000|+-----------------+----------+-----------+-----------+---------+----------+---------+|Retained earnings| (895,633)| (23,800)| (18,900)| 342,023| 299,323|(596,310)|+-----------------+----------+-----------+-----------+---------+----------+---------+|Total | 3,969,063| (7,800)| (18,900)| 342,023| 315,323|4,284,386||shareholders' | | | | | | ||equity | | | | | | |+-----------------+----------+-----------+-----------+---------+----------+---------+ WREN HOMES GROUP PLC INDEPENDENT REVIEW REPORT TO WREN HOMES GROUP PLC Introduction We have been instructed by the company to review the financial information forthe 6 months ended 31 January 2007 which comprise the condensed profit and lossaccount, the condensed balance sheet, the condensed statement of changes inequity, the condensed cash flow and the related notes. We have read the otherinformation contained in the interim report and considered whether it containsany apparent misstatements or material inconsistencies with the financialinformation. This report is made solely to the Company in accordance with Bulletin 1999/4issued by the Auditing Practices Board. Our review work has been undertaken sothat we might state to the Company those matters we are required to state tothem in an independent 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 theconclusions we have formed. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directors areresponsible for preparing the interim report in accordance with the AIM Rules,which requires that the accounting policies and presentation applied to theinterim figures should be consistent with those which will be adopted in theannual accounts, except where any changes, and the reasons for them, aredisclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4'Review of Interim Financial Information' issued by the Auditing Practices Boardfor use in the United Kingdom. A review consists principally of making enquiriesof management and applying analytical procedures to the financial informationand underlying financial data and based thereon, assessing whether theaccounting policies and presentation have been consistently applied unlessotherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance withInternational Standards of Auditing (UK and Ireland) and therefore provides alower level of assurance than an audit. Accordingly we do not express an auditopinion on the financial information. WREN HOMES GROUP PLC INDEPENDENT REVIEW REPORT TO WREN HOMES GROUP PLC Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 31 January 2007. Mazars LLPChartered Accountants and Registered AuditorsTimes HouseThrowley WaySuttonSurreySM1 4JQ 29 March 2007 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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