29th Sep 2008 10:49
For Immediate Release 29 September 2008
Biofutures International plc
Interim Results for the six months ended 30 June 2008
Biofutures International plc, the AIM listed investing company which seeks to establish, invest in, or acquire assets, partnerships, joint ventures, businesses or companies in Europe, Asia and the Middle East in the energy and utility sectors and their related infrastructures today announces its results for the six months ended 30 June 2008.
CHAIRMAN'S STATEMENT
I am pleased to present our interim results for the six months ended 30 June 2008.
The loss for the 6 month period ended 30 June 2008 was £(145,000) compared to £(449,000) for the same period in 2007. The Directors have focussed on the conservation of shareholder value through a reduction in administrative expenses to £356,000 for the 6 month period ended 30 June 2008 from £682,000 for the same period in 2007, while actively pursuing the Group's investing strategy. Cash at 30 June 2008 was £8,095,000 compared to £8,650,000 at 30 June 2007.
On 16 May 2008, we announced that we had terminated our contract to purchase the 50 acres of land at Lahad Datu, Sabah, Malaysia and agreed, in its place, to purchase 14 acres of land at the same location ("Lahad Datu land"). This agreement leaves us with sufficient acreage to build a palm oil refinery plant (and to add the additional modules to convert it to a 200,000 metric tonnes biodiesel plant should it become economically viable to do so in the future) and has allowed us to save approximately £2.90 million which would otherwise have been spent on acquiring the 50 acre plot of land.
We also subsequently announced the findings of our review of our Zurex project and concluded that the biodiesel plant as originally conceived was currently not economically viable. The management has been actively pursuing alternative options for the Company. We have continued our discussions with Lurgi and are carrying out due diligence on the feasibility of re-engineering the project so that a palm oil refinery plant can be built, utilising the Lahad Datu land and some of the equipment already constructed or procured from Lurgi. This refinery, through the addition of a trans-esterification module or an esterification module and associated ancillary equipment, could be expanded to produce palm oil biodiesel should it become economically viable to do so. We have applied for the necessary licence to produce refined palm oil and are awaiting a decision from the appropriate department in Malaysia. In the meantime we are finalising our due diligence on this refinery project.
Board Changes
We welcomed to the Board David Long as a Non Executive Director with effect from 5 February 2008. David has many years' experience in business operational management and business accounting processes within the paint and chemical industry.
Group Strategy
At the Extraordinary General Meeting (EGM) 6 June 2008, the Company became an Investing Company. The Group's strategy is to continue to review the biodiesel plant project to be carried out by Zurex including potentially re-engineering it into a palm oil refinery. In addition, the Group's strategy is to invest in or acquire projects, assets, partnerships, joint ventures, businesses or companies (public or private) in Europe, Asia and the Middle East in the energy and utility sectors and their related infrastructures.
As an Investing Company, Biofutures will therefore have to make an acquisition or acquisitions which constitute a reverse takeover under the AIM Rules for Companies or otherwise implement its Investing Strategy to the satisfaction of the London Stock Exchange by 6 June 2009. If this does not occur, trading in the Company's ordinary shares will be suspended. Such an investment could be an investment in the palm oil refinery project.
Outlook
The broader investment strategy adopted at the June EGM provides the Company with the flexibility to utilise its current cash resources for the benefit of shareholders. The palm oil refinery project is being actively pursued as a potential project. The Company is also seeking other investments which should add to shareholder value.
David Yeoh
Executive Chairman
29 September 2008
Enquiries:
Julie Pomeroy, Group Finance Director,
Biofutures International plc
Tel: 0117 920 0092
Emily Morgan,
Blomfield Corporate Finance
Tel: 01275 871717
Paul Vann
Winningtons Financial
Tel: 0117 920 0092
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2008
|
|
Notes |
Six months to 30 June 2008 |
Six months to 30 June 2007 |
Year ended 31 December 2007 |
|
£'000s |
£'000s |
£'000s |
||
|
Continuing operations |
||||
|
Revenue |
- |
- |
- |
|
|
Administrative expenses |
(356) |
(682) |
(891) |
|
|
Impairment |
-
|
- |
(2,400) |
|
|
Operating loss |
(356) |
(682) |
(3,291) |
|
|
Interest expense |
- |
- |
(76) |
|
|
Interest income |
211 |
233 |
484 |
|
|
Loss before income tax |
(145) |
(449) |
(2,883) |
|
|
Income tax expense |
3 |
- |
- |
- |
|
Loss for the period |
(145) |
(449) |
(2,883) |
|
|
Loss per share |
||||
|
- Basic and diluted |
4 |
(0.10) p |
(0.30)p |
(1.94)p |
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
Six months to 30 June 2008 |
Six months to 30 June 2007 |
Year ended 31 December 2007 |
||
|
|
£'000s |
£'000s |
£'000s |
|
|
Loss for the period |
(145) |
(449) |
(2,883) |
|
|
Net exchange adjustments |
22 |
(40) |
39 |
|
|
Total recognised income and expenses for the period |
(123) |
(489) |
(2844) |
|
|
Share-based compensation |
4 |
196 |
(56) |
|
|
Shares issued |
- |
- |
33 |
|
|
Transactions with equity holders |
4 |
196 |
(23) |
|
|
Total movement in equity |
(119) |
(293) |
(2,867) |
|
|
Opening shareholders' funds |
26,568 |
29,435 |
29,435 |
|
|
Closing shareholders' funds |
26,449 |
29,142 |
26,568 |
UNAUDITED CONSOLIDATED BALANCE SHEET
|
As at 30 June 2008 |
As at 30 June 2007 |
As at 31 Dec 2007 |
||
|
Assets |
£'000s |
£'000s |
£'000s |
|
|
Non-current assets |
||||
|
Property, plant and equipment |
1,971 |
3,771 |
1,938 |
|
|
Goodwill |
6,078 |
6,078 |
6,078 |
|
|
Intangible assets |
10,850 |
10,850 |
10,850 |
|
|
18,899 |
20,699 |
18,866 |
||
|
Current assets |
||||
|
Trade and other receivables |
43 |
59 |
68 |
|
|
Cash and cash equivalents |
8,095 |
8,650 |
8,329 |
|
|
8,138 |
8,709 |
8,397 |
||
|
Total assets |
27,037 |
29,408 |
27,263 |
|
|
Equity and liabilities |
||||
|
Equity |
||||
|
Share capital |
1,510 |
1,477 |
1,510 |
|
|
Share premium account |
11,293 |
11,293 |
11,293 |
|
|
Merger reserve |
16,001 |
16,001 |
16,001 |
|
|
Translation reserve |
58 |
(42) |
37 |
|
|
Share based scheme reserve |
1,037 |
1,285 |
1,033 |
|
|
Retained earnings |
(3,451) |
(872) |
(3,306) |
|
|
Total equity |
26,448 |
29,142 |
26,568 |
|
|
Current liabilities |
||||
|
Trade and other payables |
589 |
266 |
695 |
|
|
Total liabilities |
589 |
266 |
695 |
|
|
Total equity and liabilities |
27,037 |
29,408 |
27,263 |
|
UNAUDITED CASH FLOW STATEMENT
|
Notes |
Six months to 30 June 2008 |
Six months to 30 June 2007 |
Year ended 31 December 2007 |
|
|
£000s |
£000s |
£000s |
||
|
Cash flow from operating activities |
||||
|
Cash generated from operations |
5 |
(435) |
(729) |
(891) |
|
Net cash generated for operating activities |
(435) |
(729) |
(891) |
|
|
Cash flow from investing activities |
||||
|
Costs relating to acquisition of subsidiary |
- |
- |
(275) |
|
|
Purchases of property, plant and equipment |
(5) |
(2,068) |
(2,359) |
|
|
Interest received |
211 |
233 |
484 |
|
|
Net cash used in investing activities |
206 |
(1,835) |
(2,150) |
|
|
Cash flow from financing activities |
||||
|
Proceeds from issue of share capital |
- |
2,441 |
2,474 |
|
|
Net cash inflow from financing activities |
- |
2,441 |
2,474 |
|
|
Effects of exchange rate changes |
(5) |
(40) |
83 |
|
|
Net increase in cash and cash equivalents |
(234) |
(163) |
(484) |
|
|
Cash at beginning of period |
8,329 |
8,813 |
8,813 |
|
|
Cash and cash equivalents as at end of period |
8,095 |
8,650 |
8,329 |
UNAUDITED NOTES TO THE INTERIM STATEMENTS FOR THE SIX MONTHS TO 30 JUNE 2008
1 Basis of preparation
The financial information contained in these financial statements comprises the Group balance sheets as at 30 June 2008, 30 June 2007 and 31 December 2007, the Group statement of income, the Group statement of cashflows and the Group statement of changes in equity for the half year ended 30 June 2008 and 30 June 2007 and the year ended 31 December 2007.
The financial information set out on pages 2, 3 and 4 is unaudited and does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The comparative numbers for the year ended 31 December 2007 have been extracted from the audited accounts which have been filed at Companies House and which carried an unqualified audit report with no statement under s237(2) or (3) of the Companies Act 1985.
These condensed consolidated interim financial statements (the interim financial statements) have been prepared in accordance with the accounting policies as set out in the Group's annual financial statements for the year ended 31 December 2007 on pages 17 to 21 which are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) and are effective at 30 June 2008 or are expected to be adopted and effective at 31 December 2008 our annual reporting date which will use IFRS accounting standards adopted by the EU.
The Interim Report has been drawn up on the basis that the refinery plant discussed above will be built. However if the refinery plant is not built, a significant write-off is likely to be required as the intangible assets may have limited value in the current market conditions and a further write-off of tangible assets may be required.
2 Segmental Information
Primary reporting format - business segment:
|
|
Six months to 30 June 2008 |
Six months to 30 June 2007 |
Year ended 31 December 2007 |
|
£'000s |
£'000s |
£'000s |
|
|
Operating loss |
|||
|
Operational |
(121) |
(108) |
(2,591) |
|
Head Office |
(235) |
(574) |
(700) |
|
Operating loss |
(356) |
(682) |
(3,291) |
|
Loss before income tax |
|||
|
Operational |
(121) |
(108) |
(2,667) |
|
Head Office |
(24) |
(341) |
(216) |
|
Loss for period |
(145) |
(449) |
(2,883) |
|
Loss for period |
|||
|
Operational |
(121) |
(108) |
(2,667) |
|
Head Office |
(24) |
(341) |
(216) |
|
Loss for period |
(145) |
(449) |
(2,883) |
3 Income tax expenses
There is no tax charge due to the losses arising in the period.
4 Loss per share
|
Six months to June 30 2008 |
Six months to June 30 2007 |
Year ended 31 December 2007 |
|
|
Loss attributable to equity shareholders of the Company |
£(145,000) |
£(449,000) |
£(2,883,000) |
|
Weighted average number of ordinary shares in issue |
151,060,000 |
147,730,000 |
148,979,891 |
|
Basic earnings per share in pence |
(0.10)p |
(0.30)p |
(1.94)p |
The impact of options and warrants on the loss per share is anti-dilutive and therefore no diluted earnings per share figure have been included.
5 Cash generated from operations
|
Six months to June 30 2008 |
Six months to June 30 2007 |
Year ended 31 December 2007 |
|
|
£'000s |
£'000s |
£'000s |
|
|
Loss before tax |
(356) |
(682) |
(3,291) |
|
Adjustments for: |
|||
|
Depreciation |
4 |
- |
7 |
|
Impairment |
- |
- |
2,400 |
|
Share based payments |
4 |
196 |
(56) |
|
Changes in working capital |
|||
|
Trade and other receivables |
25 |
45 |
36 |
|
Trade and other payables |
(112) |
(288) |
13 |
|
Cash (outflow) from operations |
(435) |
(729) |
(891) |
6 Dividend
The directors do not recommend the payment of a dividend.
7 Availability of interim report
The Company's Interim Report will be available in hard copy for one month from the Company's registered office at One, St Paul's Churchyard, London EC4M 8SH. The Company's Interim Report will also be available in soft copy from the investors section of the Company's website; www.biofuturesplc.com, at least until the publication of the next annual report pursuant to Rule 26 of the AIM Rules for Companies.
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