29th Sep 2009 07:00
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For Immediate Release |
29 September 2009 |
Molectra Group Limited (the "Company")
Unaudited interim results for the six months ended 30 June 2009
Molectra Group Limited (AIM:MOLE) today reports its interim results for the six months ended 30 June 2009.
Financial results
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Net assets: |
£3,443,763 |
2008: £12,833,702 |
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Loss for the period: |
£856,684 |
2008: £1,465,372 |
Paul Gazzard, Chief Executive Officer commented: "Commercial development in 2009 has been as difficult as last year, with only minor revenues generated. These difficulties have continued post the period end, and to minimise costs, the size of the workforce in the Brisbane plant has regrettably been reduced.
A wide ranging and thorough strategic review of the Company's options for the future is being conducted by management and the Company's advisers. The results of this review will be announced as soon as practicable."
For further information please contact:
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Molectra Group Ltd |
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Paul Gazzard |
01725 510 383 |
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Rodger Sargent |
020 7355 7660 |
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Arbuthnot Securities Limited |
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|
Antonio Bossi |
020 7012 2000 |
CHIEF EXECUTIVE'S STATEMENT
These unaudited interim accounts for Molectra Group Limited ("Molectra") cover the six months to 30 June 2009.
Financial performance
As at 30 June 2009, the Company had net assets of £3,443,763 (2008: £12,833,702). The loss for the period was £856,684 (2008: £1,465,372). The reduced loss was due to lower corporate activity compared to the previous period and therefore lower legal and due diligence costs.
Corporate activity & operations
As announced on 19 May 2009, Molectra's two active VAP contracts are now non-performing. They generated minimal revenue, but incurred significant operating and capital costs. As a result, a number of other VAP opportunities have been vigorously pursued in the period, all of which followed a similar pattern. Potential clients have shown great interest in the technology and its green pedigree, but so far it has not been possible to finalise any deals, due to external commercial pressures faced by potential clients.
Similarly, attempts to sell Molectra tyre recycling plants to third party licensees have proved extremely difficult. There has been significant interest in the technology from many different countries and sources but to date, given the global economic climate and the logistics of the industry, finalising deals has not proved possible.
Board changes
As previously announced, John Dobozy left the Board in January 2009 and Roger King and Roger Maddock left in July.
Cash
Retained cash and equivalents was £1,685,218 at 30 June (2008: £4,505,523).
The future
Due to the commercial difficulties faced, to minimise costs, the size of the workforce in the Brisbane has regrettably been reduced during the period. However the remaining workforce continues to work diligently on the still active VAP and turnkey plant opportunities.
As a result of this, a wide ranging and thorough strategic review of the Company's options for the future is being conducted by management and the Company's advisers. The results of this review will be announced as soon as practicable
Paul Gazzard
Chief Executive
Molectra Group Limited
28 September 2009
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MOLECTRA GROUP LIMITED |
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Consolidated Condensed Interim Income Statement (Unaudited) |
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For the six months ended 30 June 2009 |
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(unaudited) |
(unaudited) |
|||||||
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01 Jan 2009 |
01 Jan 2008 |
|||||||
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to 30 June 2009 |
to 30 June 2008 |
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£ |
£ |
|||||||
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Revenue |
6,770 |
- |
||||||
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Operating expenses |
||||||||
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Management fees |
- |
(97,732) |
||||||
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Other operating expenses |
(663,201) |
(1,212,478) |
||||||
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Amortisation of intangible assets |
(135,785) |
(231,438) |
||||||
|
Depreciation of property, plant and equipment |
(44,167) |
(35,247) |
||||||
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Share based payments expense |
(46,022) |
- |
||||||
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Total operating expenses |
(889,175) |
(1,576,895) |
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Operating loss |
(882,405) |
(1,576,895) |
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Finance income |
||||||||
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Bank and deposit interest income |
18,965 |
157,305 |
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Loss before taxation |
(863,440) |
(1,419,590) |
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Taxation |
6,756 |
(45,782) |
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Net loss for the period |
(856,684) |
(1,465,372) |
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Other comprehensive income: |
||||||||
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Exchange differences on translating foreign operations |
(18,138) |
(16,728) |
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Total comprehensive loss for the period |
(874,822) |
(1,482,100) |
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Net loss attributable to: |
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Equity holders of the company |
(856,684) |
(1,364,397) |
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Minority interest |
- |
(100,975) |
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(856,684) |
(1,465,372) |
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Basic and diluted loss per share (pence) |
(0.46) |
(0.88) |
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All transactions arise from continuing operations. |
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MOLECTRA GROUP LIMITED |
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Consolidated Condensed Interim Balance Sheet (Unaudited) |
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As at 30 June 2009 |
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(unaudited) |
(unaudited) |
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30 June 2009 |
30 June 2008 |
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£ |
£ |
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Non-current assets |
||||||||
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Intangible assets |
1,401,339 |
8,959,928 |
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Property, plant and equipment |
756,098 |
723,664 |
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2,157,437 |
9,683,592 |
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Current assets |
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Trade and other receivables |
34,175 |
57,636 |
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Cash and cash equivalents |
1,685,218 |
4,505,523 |
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1,719,393 |
4,563,159 |
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Total assets |
3,876,830 |
14,246,751 |
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Current liabilities |
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Trade and other payables |
(316,091) |
(198,288) |
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(316,091) |
(198,288) |
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Non-current liabilities |
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Deferred income tax liabilities |
(116,976) |
(1,214,761) |
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Net assets |
3,443,763 |
12,833,702 |
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Capital and reserves |
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Share capital |
16,996,977 |
14,116,977 |
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Translation reserve |
(51,840) |
1,509 |
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Share based payments reserve |
46,022 |
- |
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Retained earnings |
(13,547,396) |
(2,144,052) |
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3,443,763 |
11,974,434 |
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Minority interest |
- |
859,268 |
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Shareholders' fund |
3,443,763 |
12,833,702 |
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Net asset value per Ordinary share (pence) |
1.99 |
8.27 |
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These financial statements were approved by the Board of Directors and signed on 28th September 2009.
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MOLECTRA GROUP LIMITED |
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Consolidated Condensed Interim Statement of Cash Flows (Unaudited) |
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For the six months ended 30 June 2009 |
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|
(unaudited) |
(unaudited) |
|||||||
|
01 Jan 2009 |
01 Jan 2008 |
|||||||
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to 30 June2009 |
to 30 June 2008 |
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£ |
£ |
|||||||
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Cash flow from operating activities |
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Net loss for period |
(856,684) |
(1,465,372) |
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Non-cash movements: |
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Amortisation |
134,748 |
266,685 |
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Depreciation |
44,167 |
- |
||||||
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Fixed asset impairment |
1,038 |
- |
||||||
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Share based payments expense |
46,022 |
- |
||||||
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Interest receivable |
(19,298) |
- |
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Provision for legal claim |
(15,000) |
- |
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Decrease in deferred tax liability |
(6,756) |
45,782 |
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Translation movements |
(122,052) |
- |
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Changes in working capital (excluding the |
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effects of acquisition and exchange differences |
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on consolidation): |
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Other receivables |
20,390 |
149,299 |
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Other payables |
(224,379) |
(352,328) |
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Net cash outflow from operating activities |
(997,804) |
(1,355,934) |
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Cash flow from investing activities |
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Interest received |
24,227 |
- |
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Purchase of property, plant and equipment |
(29,691) |
|
(170,513) |
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Net cash outflow from investing activities |
(5,464) |
(170,513) |
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Cash flow from financing activities |
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Redemption of ordinary shares |
(300,000) |
- |
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Net cash inflow from financing activities |
(300,000) |
- |
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Net decrease in cash and cash equivalents |
(1,303,268) |
(1,526,447) |
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Cash and cash equivalents at 01 January |
2,988,486 |
6,031,970 |
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Cash and cash equivalents at 30 June |
1,685,218 |
4,505,523 |
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MOLECTRA GROUP LIMITED
Notes to the Condensed Interim Financial Statements (Unaudited)
1. Basis of preparation
The accounting policies have been applied consistently throughout the group for the purposes of the preparation of the condensed consolidated interim report. These interim condensed consolidated financial statements are for the 6 months ended 30 June 2009. The group has elected not to apply IAS34, Interim Financial Reporting. The interim condensed consolidated financial statements 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 for the year ended 31 December 2008. The same accounting policies, presentation and methods of computation are followed in this interim condensed consolidated report as were applied in the group's annual financial statements for the year ended 31 December 2008.
2. Earnings per share
The earnings per Ordinary share is based on the net loss for the period attributable to equity holders of £856,684 (30 June 2008: £1,364,397) and on 188,225,000 (30 June 2008: 155,225,000) weighted average Ordinary shares.
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