21st Dec 2006 15:16
Tejoori Limited21 December 2006 21 December 2006 Tejoori Limited plc ("Tejoori") Year End Financial Results Tejoori Limited ("the Company" or "Tejoori"), the London (AIM) listed, Dubaiheadquartered investment company today announced its year end financial resultsfor the period from its incorporation on 22 September 2005 to 30 June 2006 ("thePeriod"). Operational highlights to date Raising of US$41.56 million (before expenses) in October 2005 and successful AIMlisting in March 2006: • Equity investment of US$21.8 million and entry into a Musharaka agreement with Omniyat, a leading property developer in the Middle East; • Joint venture with a German inventor with a capital commitment of EUR 1.5 million (US$1.995) million to develop a vehicular safety system, marking its first Socially Responsible Investment; and • Major sponsor of the International Islamic Finance Forum in Zurich, one of the most prestigious events in the Islamic finance calendar. Several key appointments in the period include: • Steffen Schubert, Managing Director, formerly CEO of Dubai International Financial Exchange; • Rashad Barajakly as Finance and Operations Director;* • Emad Abourahme as Communications and Investor Relations Director;* and • Mario Camara as General Counsel.* *Non-board member Financial Highlights • Loss before tax for the period US$4.462 million; • Basic loss per share US$0.16 for the period; • Cash and cash equivalents as at 30 June 2006 of US$31.024 million; and • Net asset value at 30 June 2006 US$37.101 million representing US$1.34 per share. Commenting, Sheikh Fawaz Bashraheel, Chairman of Tejoori Limited, said: "As the first company focusing on Shari'a investment to list on AIM we areideally positioned to benefit from the increased interest around the world inboth Shari'a compliant and socially responsible investments. 2006 was the establishment phase in the evolution of Tejoori from a worthyconcept to a commercial reality. With our AIM listing, with our firstinvestments completed and our outstanding management team in place, Tejoori isfully operational and in an ideal position to enter 2007 ready and able toachieve our goals and objectives. Following our first investments, the Musharaka agreement with Omniyat and thejoint venture with Martin Hage, we have a number of deals in the pipelinecurrently undergoing due diligence and we expect to announce furthertransactions in the near future. Our new management and senior hires are already making a palpable difference toour business. Each brings considerable experience and expertise to Tejoori andwe are confident that our approach will continue to lead to our involvement inmore such deals as those already concluded." Chairman's Statement Background Tejoori was incorporated in The British Virgin Islands in September 2005 andlisted on AIM in March 2006 having raised US$41.56 million (before expenses)through a placing of ordinary shares at US$1.50 per share. These results reflectthe period from incorporation to 30 June 2006. In the period ending 30 June 2006, Tejoori recorded a net loss of US$4.462million or US$0.16 per share. The net asset value at the end of the period wasUS$37.101 million or US$1.34 per share and cash stood at US$31.024 million orUS$1.12 per share. During our first quarter for the period ending September 30, 2006, TejooriLimited recorded a net loss of US$0.658 million or US$0.02 per share(unaudited). The net asset value at the end of the period was US$36.443 millionor US$1.32 per share (unaudited). People and place of incorporation Tejoori has invested significantly in its people. Steffen Schubert was appointedManaging Director in July 2006. Steffen is a highly experienced executive whowas most recently Chief Executive Officer of the Dubai International FinancialExchange (DIFX), the world's newest international stock market. At the DIFX,Steffen grew the exchange from concept to reality, building on the experience hegained as CEO of EASDAQ and prior to that, Managing Director of Munich'sBavarian Stock Exchange. In addition, Tejoori has built a senior executive team including RashadBarajakly (Finance and Operations Director), Emad Abourahme (Communications andInvestor Relations Director) and, most recently, Mario Camara (General Counsel).The executive management is supported by a seasoned team. Tejoori will continueto hire high quality personnel in order to build and manage its investmentportfolio. Given the investment profile of the business and the additional costs anddistraction that would be incurred, the Board has decided not to apply to theGuernsey Financial Services Authority and the Royal Courts of Guernsey tomigrate its domicile to Guernsey. The company will remain incorporated anddomiciled in the British Virgin Islands. In addition, Tejoori will bringin-house the functions of Administrator and Secretary, currently undertaken byInvestec Administration Services Limited in Guernsey. Strategy and investments Tejoori is the world's first investment company dealing with Shari'a compliantinvestments to be admitted to AIM. With a commitment to value-based investments Tejoori will actively considerdeals that contribute positively to society. Tejoori is not limited by aspecific geographical region or sector. In other words, Tejoori will investpurely based on the quality of the investment potential. Following Tejoori's first investment, the Musharaka agreement with Omniyat, wehave signed a joint venture agreement to develop a high tech, innovative systemthat will significantly improve vehicular safety. We are currently carrying outdue diligence on a number of deals in the industrial and environmentaltechnologies sectors. Investment in Omniyat Properties Eleven Limited Tejoori announced that it has invested to date US$21.8 million and entered intoa 'Musharaka' agreement with Omniyat Properties Eleven Limited to developseveral real estate projects across Dubai. 'Musharaka' means 'partnership'. Such an arrangement is based on a profit andloss system where two or more persons combine either labour or capital and sharein the profits or losses of the venture. On 17 December 2006, the Musharaka agreement closed with Tejoori taking a 25%equity stake in Omniyat Properties Eleven Limited representing 30,484,485 shareswith a par value of US$1 per share. The agreement provides Tejoori with anequity stake in land deals and total projects in excess of $281 million inBusiness Bay and Lagoons. Omniyat Properties Eleven Limited is part of Omniyat Properties, the real estatedevelopment arm of Omniyat Holdings responsible for developments such as OneBusiness Bay, Bayswater, The Binary and the Gemini in Business Bay as well asresidential project the Square with a total current estimated value of 2.7billion under development. Dubai-based Omniyat Properties specialises increating the most technologically advanced properties in the Middle East region. Joint venture with German inventor Martin Hage Tejoori recently announced that it has signed a joint venture (JV) agreementwith Martin Hage, a German inventor. This socially responsible investment marksTejoori's first venture capital deal. Tejoori will invest an initial capital ofEUR 1.5 million (US$1.995m) for an initial shareholding of 85% in the jointventure and will be entitled to nominate two thirds of the Board of the JV.Martin Hage will own the remaining 15%. The JV vehicle will conduct research and development into a new, high-tech,innovative safety system for motor vehicles, which is designed to improvevehicular safety standards significantly. Several relevant patents have beenfiled and will be assigned to the JV. The JV will aim to develop a functional prototype by July 2007 followed byserial production of the system by the beginning of 2009, at which time the JVexpects to begin generating revenues. Upon successful completion of theprototype it is currently anticipated that a plant worth in excess of Dhs 488million (US$133m) will be constructed, subject to the appropriate financingbeing secured. This financing could be achieved through an Islamic product suchas a Sukuk. The venture will target clients that include leading carmanufacturers and automotive industry suppliers. Future opportunities Tejoori will continue to seek direct investment opportunities. Tejoori is alsolooking to develop several special purpose investment vehicles (SPVs). TheseSPVs may include, but will not be restricted to the Healthcare, EnvironmentalTechnologies and Real Estate Sectors. We will take advantage of our experiencein structuring of Shari'a complaint investments to develop such vehicles. Wewill update the market shortly on this progress. Outlook Demand for Shari'a compliant investments are growing in parallel with increaseddemand for socially responsible opportunities for wealth creation. Tejoori willcontinue to develop its business and its portfolio for the benefit of thecompany and our shareholders. Having built a strong, committed senior management team, Tejoori is now firmlyentering its operational phase. We have closed our first deals, with more tocome. These are and will be substantial investments in traditional as well asinnovative technologies. We are seeing a healthy pipeline of deal flow and arecontinuing to work diligently to filter these investment opportunities to eitherinvest in directly or through alternative investment products. Our next results will detail further opportunities in diverse and interestingsectors. We look forward to update the market on our progress. Sheikh Fawaz Bashraheel, Chairman of the Board Tejoori Limited Enquiries: Tejoori LimitedEmad Abourahme, Dubai +971 (0)4 329 2426 Financial DynamicsAndrew Waterworth, London +44 207 831 3113John Hobday, Dubai +971 (0)50 4 648 706 TEJOORI LIMITED BALANCE SHEETas at 30 June 2006 US$ ASSETS Current assets Trade and other receivables 37,756Other financial assets at fair value through profit or loss 6,811,618Other financial assets held to maturity 5,010,924Cash and cash equivalents 31,024,732 Total Assets 42,885,030 ---------- EQUITY Capital and reserves attributable toequity holders of the Company Share capital 41,563,296Retained loss (4,462,220) Total Equity 37,101,076 ---------- LIABILITIES Current liabilities Financial liabilities 5,291,277Trade and other payables 492,677 Total liabilities 5,783,954 --------- Total equity and liabilities 42,885,030 ----------- TEJOORI LIMITED INCOME STATEMENTfor the period 22 September 2005 to 30 June 2006 US$ Revenue Net gains on financial assets held to maturity 206,854Other income 67,398Administrative expenses (1,055,737)Other expenses (3,680,735) Operating loss (4,462,220) ----------- Loss for the period (4,462,220) ----------- Attributable to:Equity holders of the Company (4,462,220) ----------- Loss per share for loss attributable to the equity holdersof the Company during the year (expressed in US$ per share) - Basic (0.16) TEJOORI LIMITED STATEMENT OF CHANGES IN EQUITYfor the period 22 September 2005 to 30 June 2006 Share Share Retained capital premium loss Total US$ US$ US$ US$ Issue of share capital at a premium 277,089 41,286,207 - 41,563,296 Loss for the period - - (4,462,220) (4,462,220) ----- ----- ----- ----- Balance at 30 June 2006 277,089 41,286,207 (4,462,220) 37,101,076 ----- ----- ----- ----- TEJOORI LIMITED CASH FLOW STATEMENTfor the period 22 September 2005 to 30 June 2006 US$ Cash flows utilised in operating activitiesCash utilised in operations (3,794,344) Cash flows utilised in investing activitiesCash utilised to acquire investment (6,811,618) Cash flows from financing activitiesProceeds from issuance of ordinary shares 41,563,296 30,957,334 ---------- Exchange gains on cash at bank 67,398 Increase in cash and cash equivalents 31,024,732 ---------- Please be advised that the pages herewith provided from the financial statementsare just an extract. Full sets are available upon request. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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