Half-yearly report
Embargoed for release at 7.00 a.m. on 11 September 2007 PROPERTY RECYCLING GROUP PLC Interim results Property Recycling Group plc (the "Company") (AIM: PROP), which
acquires and prepares brownfield sites for development, announces
interim results for the six months ended 30 June 2007. These are the
first figures prepared under International Financial Reporting
Standards and the comparative amounts have been restated on that
basis.
Financials
Ø Profit before tax of £46,658 on a turnover of £406,190 (2006
figures of £277,489 and £984,251 respectively, reflect a property
sale of £400,000 and some one off sales of aggregates). Ø Interim dividend of 0.5p (2006: 0.5p) per share.
Portfolio
Ø The Group currently owns six freehold sites totalling 207.9
hectares, all of which have planning approval for either industrial,
commercial or leisure use. Ø Acquisition of an 8.09 hectare site at Colsterworth, Lincs,
which has current rental income of £410,000 per annum and
considerable potential. Ø Grant of option at Brigg over five hectares for biomass power
station
Ø Stanton has the benefit of a valuable planning permission. Following advice that IKEA does not intend to exercise its option
over the site, we are reassessing strategy to include marketing
existing and alternative planning potential.
Paul Rackham, the chairman of Property Recycling Group plc, said: "We
have made good progress in improving the portfolio this year and
continue to seek further properties where we can see opportunities to
create value." -Ends-
For further information please contact:
Paul Rackham, Chairman
Property Recycling Group plc
01953 717176 www.propertyrecycling.co.uk Noelle Greenaway / Peter Ward
Insinger de Beaufort (Nominated Adviser)
020 7190 7000 www.insinger.com John Webb
Marshall Securities Limited (Broker)
020 7490 3788 Rachel Drysdale / Jeremy Carey
Tavistock Communications
0207 920 3150 PROPERTY RECYCLING GROUP PLC EXECUTIVE CHAIRMAN'S REPORT Introduction I am pleased to present Property Recycling Group plc's interim
results for the six months ended 30 June 2007.
Background Our objective is to create shareholder value through recycling
brownfield sites, which represent an attractive alternative source of
development land.
Government policy is to increase significantly the proportion of
development land sourced from brownfield sites. It was re-emphasised
in the recent Housing Green Paper that using recycled land in any new
development is a priority.
Property portfolio The Group currently owns six freehold sites totalling 207.9 hectares,
all of which have planning approval for either industrial,
commercial, residential or leisure use. It is our intention to
progress further the value of these sites by remediation and new and
improved planning permissions.
We have completed the purchase of an 8.09 hectare site at
Colsterworth in Lincolnshire for £4.75 million. The site already
provides rental income of £410,000 per annum from short term tenants. There is scope to increase the letting income in the short term with
the potential to increase the number of buildings or completely
redevelop the site.
We continue to enhance value at our Brigg site, increasing short term
rental income by £60,000 per annum. On 31 August 2007 we announced
the grant of an option to ECO2 North Lincs Limited over 5 hectares on
the 50 hectare site. Under the terms of the option agreement ECO2 has
paid an upfront fee of £30,000 for an option for 36 months to
purchase the land for development of a biomass power station. The
purchase price under the agreement is £2 million. ECO2 is responsible
for preparing and submitting the planning application.
We have been advised that IKEA does not intend to exercise its option
over the site at Stanton because of a change in its needs. The site
has the benefit of a valuable planning permission granted in 2006. We
are currently re-assessing our strategy which will include marketing
existing and alternative planning potential.
Financial results These are the first results of the Group to be stated under
International Financial Reporting Standards (IFRS) and the
comparatives have been restated on this basis. The principal impact
of IFRS on the results has been in relation to the recognition of
deferred
tax on a gain that would arise if the revalued property on the
balance sheet was sold without any rollover relief being obtained. The effect of these adjustments on the results, income statement,
balance sheet and equity of the Group are set out in note 9.
In the period the Group achieved turnover of £406,190, compared to
£984,251 in the same period last year which included £400,000 from
realisations and some one off income from the sale of aggregates. There were no realisations in the first half of 2007. The operating
loss was £87,340 (2006: profit £206,985) and profit before tax was
£75,405 (2006: £379,439). Earnings per share were 0.13p (2006: 0.77p)
all of which is attributable to continuing operations. The results
of future periods will be affected by the timing of significant
realisations.
At 30 June 2007 the Group had net funds of £5.4m (2006: £6.4m) with
cash and short term bank deposits of £6.7m (2006: £7.8m). Since the
period end £4.75m consideration for Colsterworth has been paid.
Dividend The Board is recommending an interim dividend of 0.5p per share
(2006: 0.5p) payable on 24 October 2007 to shareholders on the
register at the close of business on 21 September 2007. Dividends for
the full year will be considered in the light of achieved profits
which will be significantly affected by the timing of realisations.
Prospects We see continued demand for land for industrial, commercial and
residential development especially in the South East and Eastern
England. The recent Green Paper on Housing reiterates the
Government's policy for further land to be made available for
residential development, in particular affordable housing.
Within the portfolio we have improved the level of rental income and
made progress with local planning authorities to achieve planning
improvements on two of our larger sites which we believe offer mixed
use potential.
We continue to investigate properties available for acquisition and
are flexible in our approach. We would consider joint ventures and
company acquisitions to secure the right profile. The Group's bankers
have agreed in principle to provide facilities of up to £30 million
to fund suitable future acquisitions..
I hope to report progress in the development of the Group over the
coming months.
Paul Rackham Executive chairman
11 September 2007
PROPERTY RECYCLING GROUP PLC
Unaudited Consolidated Income Statement
for the six months ended 30 June 2007
Six months Year ended 31
Notes Six months ended 30 December 2006
ended 30 June June 2006 Restated*
2007 Restated* £
£ £Turnover 3 406,190 984,251 1,158,132
Cost of sales - (188,119) (188,119)
Gross profit 406,190 796,132 970,013
Share based payments to
directors & employees (33,308) (31,284) (65,146)
Other administrative (460,222) (557,863) (969,696)
expenses
Administrative expenses (493,530) (589,147) (1,034,842)
Operating (loss)/profit (87,340) 206,985 (64,829) Net interest receivable 162,745 172,454 308,217
Profit on ordinary
activities before 75,405 379,439 243,388
taxation
Tax on profit on
ordinary activities 4 (28,747) (16,936)
(101,950)
Retained profit for the
financial period 46,658 277,489 226,452Earnings per share - 5
(pence)
Basic 0.13 0.77
0.63
Diluted 0.13 0.77 0.63The results for the period are derived from continuing activities. *Restated to reflect the adoption of IFRS as per note 9.
There was no recognised income or expenditure other than the profit
for the period/year. Accordingly, no Statement of Recognised Income
and Expenditure has been prepared.
PROPERTY RECYCLING GROUP PLC Unaudited Consolidated Balance Sheet as at 30 June 2007 As at As at
Notes As at 30 June 31 December
30 June 2006 2006
2007 Restated* Restated*
£ £ £
Fixed assets
Tangible assets 2,962,531 2,964,027 2,963,761
2,962,531 2,964,027 2,963,761Current assets
Stocks 7,605,823 2,549,441 2,558,797
Debtors
- due within one 773,335 600,866 1,012,668
year
- due after more
than one year 96,468 1,108,918 498,176
Investments - short term
bank deposits 6,658,735 7,658,121 6,725,330
Cash at bank and in hand 21,278 135,681 85,795
15,155,639 12,053,027 10,880,766Creditors: amounts
falling due within one (5,325,930) (1,771,937) (817,948)
year Net current assets 9,829,709 10,281,090 10,062,818 Total assets less current
liabilities 12,792,240 13,245,117 13,026,579 Creditors: amounts
falling due after more (1,125,780) (1,236,183) (1,191,145)
than one year
Deferred taxation 4 (526,541) (546,010) (561,787) Net assets 11,139,919 11,462,924 11,273,647
Capital and reserves
Called up share capital 1,810,000 1,810,000 1,810,000
Share premium account 6,428,529 6,428,529 6,428,529
Equity reserve 98,454 31,284 65,146
Merger reserve 821,833 821,833 821,833
Revaluation reserve 1,684,961 1,636,357 1,645,255
Profit & loss account 296,142 734,921
502,884Equity shareholders' 7 11,139,919 11,462,924 11,273,647
funds
* Restated to reflect the adoption of IFRS as per note 9. PROPERTY RECYCLING GROUP PLC Unaudited Consolidated Cash Flow Statement
for the six months ended 30 June 2007
Notes Six months Six months Year ended
ended 30 ended 30 31 December
June 2007 June 2006 2006
£ £ £
Net cash inflow/(outflow)
from operating activities 8 26,982 (263,238) (545,155)Returns on investments and
servicing of finance
Interest paid (43,191) (52,287) (131,016)
Interest received 205,936 224,741 439,233 Net cash inflow from returns
on investment and servicing 162,745 172,454 308,217
of finance Taxation - - (606,669) Equity dividends paid (253,400) (362,000) (543,000)
Net cash outflow before
management of liquid (63,673) (452,784) (1,386,607)
resources and financing Management of liquid
resources
Movement in current asset 66,595 348,662 1,281,453
investments Net cash inflow/(outflow)
after 2,922 (104,122) (105,154)
management of liquid
resources Financing
Repayment of loans (67,439) (88,183) (137,037) Net cash outflow from (67,439) (88,183) (137,037)
financing
Decrease in cash (64,517) (192,305) (242,191) PROPERTY RECYCLING GROUP PLC NOTES TO THE FINANCIAL INFORMATION 1. Basis of preparation
The Group's previous financial statements have been prepared under UK
Generally Accepted Accounting Principles (UK GAAP). For the
financial year ending 31 December 2007, the Group has decided to
prepare its annual consolidated financial statements in accordance
with IFRS as adopted by the European Union (EU) and implemented in
the UK.
The Group's date of transition to IFRS was 1 January 2006 at which
date the Group prepared its opening IFRS balance sheet. The
financial information for the six months ended 30 June 2007 is
unaudited and has been prepared in accordance with the Group's
accounting policies, based on IFRS standards that are expected to
apply for the financial year 2007. The financial information for the
six months ended 30 June 2006 is also unaudited and has been restated
under IFRS.
The presentation of financial information under IFRS is governed by
IFRS 1. In some cases this will require the presentation of an item
in a different position, or the use of a different description in the
IFRS income statement or balance sheet to that adopted in the UK GAAP
profit and loss account or balance sheet. These reclassifications
have been described in the explanatory notes.
An explanation of how the transition from UK GAAP to IFRS has
affected the Group's results and income statements for the period
ended 30 June 2006 and the year ended 31 December 2006 and the equity
and balance sheets as at 1 January 2006 (the date of transition), 30
June 2006 and 31 December 2006 is set out in note 9.
The interim financial information has not been audited and does not
constitute statutory accounts within the meaning of Section 240 of
the Companies Act 1985. The Company's statutory accounts for the
year ended 31 December 2006, prepared under UK GAAP, have been
delivered to the Registrar of Companies; the report of the auditors
on these accounts was unqualified and did not contain a statement
under Section 237 (2) or (3) of the Companies Act 1985. 2. Accounting policies
The principal accounting policies adopted in the preparation of these
interim financial statements are set out below. These policies have
been consistently applied to all periods presented, unless otherwise
stated.
Property Recycling's principal activity is to recycle brownfield
sites realising value through property sales and property rentals. The Directors believe that the Group has sufficient funds for the
foreseeable future and therefore the interim financial statements
have been prepared on the going concern basis.
Accounting convention
The financial statements are prepared under the historical cost
convention, as modified by the revaluations of investment
properties.
Revenue recognition
Turnover is recognised on the sale of properties held at the date of
unconditional exchange of the contract, other income including rental
income and option fees are recognised in the period to which they
relate.
Financial instruments
Financial assets and financial liabilities are recognised in the
Group's balance sheet when the Group becomes a party to the
contractual provisions of the instrument.
Trade receivables
Trade receivables are measured at initial recognition at fair value. Appropriate allowances for estimated irrecoverable amounts are
recognised in the profit and loss account when there is objective
evidence that the asset is impaired.
Cash and short term bank deposits
Cash and short term bank deposits comprise cash on hand and demand
deposits, and other short-term highly liquid investments that are
readily convertible to a known amount of cash and are subject to an
insignificant risk of changes in value.
Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the
proceeds received, net of direct issue costs. Finance charges,
including premiums payable on settlement or redemption and direct
issue costs, are accounted for on an accruals basis in the profit and
loss account using the effective interest rate method and are added
to the carrying amount of the instrument to the extent that they are
not settled in the period in which they arise.
Trade payables
Trade payables are initially measured at fair value.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds
received, net of direct issue costs.
Provisions
Provisions are recognised when the Group has a present obligation as
a result of a past event, and it is probable that the Group will be
required to settle the obligation. Provisions are measured at the
directors' best estimate of the expenditure required to settle the
obligation at the balance sheet date, and are discounted to present
value where the effect is material.
Tangible fixed assets
Tangible fixed assets other than investment properties are stated at
cost less depreciation. Depreciation is provided on cost in equal
annual instalments over the estimated useful lives of the assets. The rates of depreciation are as follows:
Plant and machinery 20 per cent. per annum
Computing equipment 20 per cent. per annum
Motor vehicles 25 per cent. per annum
Investments
Fixed asset investments are stated at cost less provision for
impairment.
Current asset investments are stated at the lower of cost and net
realisable value.
Stocks
Stocks include properties that are not presently intended to be
retained in the Group's investment portfolio. Stock properties are
stated at the lower of cost and net realisable value. Cost includes
the cost of acquisition, professional and planning fees and
construction and infrastructure costs but excludes overheads. Revenue arising on the sale of properties is recognised on exchange
of contracts or, if exchange is conditional, on the date all material
conditions have been satisfied. Rental income is recognised on the
basis of amounts invoiced.
In the event that it is decided that a stock property will be
retained as an investment, it is transferred to the Group's
investment property portfolio at the lower of cost and net realisable
value at the date of transfer.
Other stocks are stated at the lower of cost and net realisable value
after making due allowance for obsolete and slow moving stocks.
Share based payments
The Group issues equity-settled share based payments to certain
employees. Equity-settled share based payments are measured at fair
value at the date of grant. The fair value determined at the grant
date of the equity-settled share based payments is expensed on a
straight line basis over the vesting period, based on the Group's
estimate of the number of shares that will eventually vest. There
are both non-market and market based performance conditions attached
to the vesting and exercising of equity instruments. Fair value is
measured by use of the Monte Carlo Simulation. The expected life
used in the model has been adjusted, based on management's best
estimate, for the effects of non-transferability, exercise
restrictions and behavioural considerations.
Charges made to the profit and loss account in respect of share-based
payments are credited to retained earnings.
Deferred taxation
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the
computation of taxable profit, and is accounted for using the balance
sheet liability method. Deferred tax liabilities are generally
recognised for all taxable temporary differences and deferred tax
assets are recognised to the extent that it is probable that taxable
profits will be available against which deductible temporary
differences can be utilised. Such assets and liabilities are not
recognised if the temporary differences arise from the initial
recognition of goodwill or from the initial recognition (other than
in a business combination) of other assets and liabilities in a
transaction that affects neither the tax profit nor the accounting
profit.
Deferred tax liabilities are recognised for taxable temporary
differences arising on investments in subsidiaries and associates,
and interests in joint ventures, except where the Group is able to
control the reversal of the temporary differences and it is probable
that the temporary differences will not reverse in the foreseeable
future.
Current taxation
Current tax is provided at amounts expected to be paid (or recovered)
using the tax rates and laws that have been enacted or substantively
enacted by the balance sheet date.
3. Turnover
Turnover comprises the invoiced value of property sales, property
rentals and other goods and services which fall within the Group's
ordinary activities after deduction of trade discounts and value
added tax. The turnover and operating (loss)/profit for the period,
all of which arises in the United Kingdom, are attributable to the
Group's principal activity.
4. Taxation
(i). Analysis of tax charge/credit on ordinary activities. Six months Six months Year ended 31
ended 30 June ended 30 June December 2006
2007 2006 £
£ £
Current tax:
Corporation tax 24,287 101,950 64,408
Prior year adjustment - - (76,606)Total current tax 24,287 101,950 (12,198)
Deferred tax:
Deferred tax charge 4,460 - 29,134 Total tax on profit on
ordinary activities 28,747 101,950 16,936
(ii). Deferred taxation liability/(asset)
The amounts included in the accounts and the amounts not recognised
are as follows:
Six months ended Six months Year ended 31
30 June 2007 ended 30 June December 2006
£ 2006 £
£
Included:
Investment property 419,457 468,061 459,163
Accelerated capital
allowances 107,084 77,949 102,624
526,541 546,010 561,787
Not recognised:
Trading losses (110,291) (114,795) (111,193)
(iii). Factors that may affect the future tax charge. No deferred tax asset has been recognised in respect of timing
differences relating primarily to tax losses as there is insufficient
evidence that the asset would be recoverable. The asset will be
recoverable if the Group generates suitable taxable profits.
5. Earnings per share
Basic
Basic earnings per ordinary share is calculated by dividing the
profit after taxation for the periods by the weighted average number
of ordinary shares in issue as shown in the table.
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2007 2006 2006Profit for period £46,658 £277,489 £226,452 Weighted average number of 36,200,000 36,200,000 36,200,000
shares Earnings per ordinary share
(pence)
- Continuing operations 0.13 0.77 0.63
Diluted
Diluted earnings per ordinary share is calculated by adjusting the
weighted average number of ordinary shares to assume conversion of
share options as shown in the table. Six months Six months Year ended
ended 30 June ended 30 June 31 December
2007 2006 2006Profit for period £46,658 £277,489 £226,452 Weighted average number of 36,200,000 36,200,000 36,200,000
shares
Adjustments for share options - 59,997 -
Weighted average number of
shares for diluted earnings 36,200,000 36,259,997 36,200,000
per share Earnings per ordinary share
(pence)
- Continuing operations 0.13 0.77 0.63
The Company had ordinary shares in issue of 36,200,000 as at 30 June
2007.
6. Dividend Six months Six months Year ended 31
ended 30 June ended 30 December 2006
2007 June pence
pence 2006
Ordinary Dividend: penceFinal paid in respect of
year ended 31 December 2005
(£362,000) - 1.00 1.00
Interim paid in respect of
year ended 31 December 2006
(£181,000) - - 0.50
Final paid in respect of
year ended 31 December 2006
(£253,400) 0.70 - - 0.70 1.00 1.50
On 11 September 2007 the Board declared an interim dividend for the
year ended 31 December 2007 of 0.5p per share (2006 - 0.5p) which
totals £181,000. In accordance with IAS 10, as this was announced
after the balance sheet date, it does not represent a present
obligation at that date, and as such, is not included in the
financial statements presented herein. The dividend is payable on 24
October 2007 to shareholders on the register at the close of business
on 21 September 2007.
7. Reconciliation of movements in equity shareholders' funds
Six months ended Six months Year ended 31
30 June 2007 ended 30 June December 2006
£ 2006 £
£
Profit for the 46,658 277,489 226,452
financial period
Dividends paid (note (253,400) (362,000) (543,000)
6)
Revaluation reserve
adjustment 39,706 10,805 19,703
Equity reserve 33,308 31,284 65,146
adjustmentNet (decrease) in
shareholders' funds (133,728) (42,422) (231,699) Opening shareholders' 11,273,647 11,505,346 11,505,346
funds Closing shareholders' 11,139,919 11,462,924 11,273,647
funds 8. Reconciliation of operating (loss)/profit to operating
cash inflow/(outflow)
Six months Six months Year ended
ended 30 June ended 30 31 December
2007 June 2006
£ 2006 £
£Operating (loss)/profit (87,340) 206,985 (64,829)
Depreciation charge 1,230 266 532
Share based payments to
directors & employees 33,308 31,284 65,146
Increase in stocks (5,047,026) (33,256) (42,612)
Decrease/(increase) in 641,041 (682,465) (483,525)
debtors
Increase/(decrease) in
creditors 4,485,769 213,948 (19,867)
Net cash inflow/(outflow)
from operating activities 26,982 (263,238) (545,155) 9. Explanation of the transition to IFRS
For all periods up to and including the year ended 31 December 2006,
the Group prepared its financial statements in accordance with United
Kingdom Generally Accepted Accounting Practice (UK GAAP).
In preparing these interim financial statements, the Group has
started from an opening balance sheet as at 1 January 2006 the
Group's date of transition to IFRS, and made these
changes in accounting policies and other restatements required by
IFRS1, for the first time adoption of IFRS.
The principal impact of IFRS on these interim financial statements
has been in relation to the following: a. The scope of IAS12 "Income Taxes" is wider than
the corresponding UK GAAP standards, and requires deferred tax to be
provided on all temporary differences rather than just timing
differences under UK GAAP. In particular this has resulted in
deferred tax assets and liabilities being set up in respect of
differences between the accounts balance sheet value and tax base
cost of assets. It is the Group's intention to retain the revalued
property held for the foreseeable future. Deferred tax has been
recognised on gains that would arise if the property was sold without
any rollover relief being obtained.
The reconciliation between UK GAAP and IFRS for the Group's profit
and income statements for the period ended 30 June 2006 and the year
ended 31 December 2006 and
the total equity and balance sheets as at 1 January 2006 (the date of
transition), 30 June 2006 and 31 December 2006 are presented below: Reconciliation of profit for the period ended 30 June 2006
and the year ended 31 December 2006
Unaudited Unaudited Year
six months ended
ended 31 December
30 June 2006
2006 £
£Profit after tax under UK GAAP 277,489 226,452
Deferred tax liability - investment - -
property a.
Profit after tax under IFRS 277,489 226,452
Reconciliation of income statement for the six months ended
30 June 2006
UK IFRS
GAAP effect IFRS
£ £ £Turnover 984,251 - 984,251
Cost of sales (188,119) - (188,119) Gross profit 796,132 - 796,132 Administration expenses (589,147) - (589,147) Operating profit 206,985 - 206,985 Net interest receivable 172,454 - 172,454 Profit before tax 379,439 - 379,439
Taxation (101,950) - (101,950)
a.
Profit after tax 277,489 - 277,489
Reconciliation of income statement for the year ended
31 December 2006
UK IFRS
GAAP effect IFRS
£ £ £Turnover 1,158,132 - 1,158,132
Cost of sales (188,119) - (188,119) Gross profit 970,013 - 970,013 Administration expenses (1,034,842) - (1,034,842) Operating loss (64,829) - (64,829)
Net interest receivable 308,217 - 308,217 Profit before tax 243,388 - 243,388
Taxation (16,936) - (16,936)
a.
Profit after tax 226,452 - 226,452 Reconciliation of equity as at 1 January 2006 (date of transition),
30 June 2006 and 31 December 2006
Unaudited Unaudited Unaudited
1 January 30 June 31 December
2006 2006 2006
£ £ £Total equity under UK GAAP 11,984,212 11,930,985 11,732,810
Deferred tax liability - investment
property (478,866) (468,061) (459,163)
a.
Total equity under IFRS 11,505,346 11,462,924 11,273,647 Reconciliation of balance sheet presentation at 1 January 2006
(Date of transition to IFRS)
UK IFRS
GAAP effect IFRS
£ £ £
Fixed assets
Tangible assets 2,964,293 - 2,964,293
2,964,293 - 2,964,293Current assets
Stocks 2,516,185 - 2,516,185
Debtors
- due within one 276,100 - 276,100
year
- due after more
than one year 751,219 - 751,219
Investments - short
term bank deposits 8,006,783 - 8,006,783
Cash at bank and in 327,986 - 327,986
hand
11,878,273 - 11,878,273Creditors: amounts
falling due within one (1,453,600) - (1,453,600)
year Net current assets 10,424,673 - 10,424,673 Total assets less
current liabilities 13,388,966 - 13,388,966 Creditors: amounts
falling due after more (1,331,264) - (1,331,264)
than one year
Deferred (73,490) (478,866) (552,356)
taxation
a.
Net assets 11,984,212 (478,866) 11,505,346
Capital and reserves
Called up share capital 1,810,000 - 1,810,000
Share premium account 6,428,529 - 6,428,529
Equity reserve - - -
Merger reserve 821,833 - 821,833
Revaluation 2,104,418 (478,866)
reserve a. 1,625,552
Profit & loss 819,432 819,432
account - Equity shareholders' 11,984,212 (478,866) 11,505,346
funds
Reconciliation of balance sheet presentation at 30 June 2006
UK IFRS
GAAP effect IFRS
£ £ £
Fixed assets
Tangible assets 2,964,027 - 2,964,027
2,964,027 - 2,964,027Current assets
Stocks 2,549,441 - 2,549,441
Debtors
- due within one 600,866 - 600,866
year
- due after more
than one year 1,108,918 - 1,108,918
Investments - short term
bank deposits 7,658,121 - 7,658,121
Cash at bank and in hand 135,681 - 135,681
12,053,027 - 12,053,027Creditors: amounts
falling due within one (1,771,937) - (1,771,937)
year Net current assets 10,281,090 - 10,281,090 Total assets less current
liabilities 13,245,117 - 13,245,117 Creditors: amounts
falling due after more (1,236,183) - (1,236,183)
than one year
Deferred (77,949) (468,061) (546,010)
taxation
a.
Net assets 11,930,985 (468,061) 11,462,924
Capital and reserves
Called up share capital 1,810,000 - 1,810,000
Share premium account 6,428,529 - 6,428,529
Equity reserve 31,284 - 31,284
Merger reserve 821,833 - 821,833
Revaluation 2,104,418 (468,061) 1,636,357
reserve a. Profit & loss 734,921 734,921
account - Equity shareholders' 11,930,985 (468,061) 11,462,924
funds
Reconciliation of balance sheet presentation at 31 December 2006
UK IFRS
GAAP effect IFRS
£ £ £
Fixed assets
Tangible assets 2,963,761 - 2,963,761
2,963,761 - 2,963,761Current assets
Stocks 2,558,797 - 2,558,797
Debtors
- due within one 1,012,668 - 1,012,668
year
- due after more
than one year 498,176 - 498,176
Investments - short term
bank deposits 6,725,330 - 6,725,330
Cash at bank and in hand 85,795 - 85,795
10,880,766 - 10,880,766Creditors: amounts
falling due within one (817,948) - (817,948)
year Net current assets 10,062,818 - 10,062,818 Total assets less current
liabilities 13,026,579 - 13,026,579 Creditors: amounts
falling due after more (1,191,145) - (1,191,145)
than one year
Deferred (102,624) (459,163) (561,787)
taxation
a.
Net assets 11,732,810 (459,163) 11,273,647
Capital and reserves
Called up share capital 1,810,000 - 1,810,000
Share premium account 6,428,529 - 6,428,529
Equity reserve 65,146 - 65,146
Merger reserve 821,833 - 821,833
Revaluation 2,104,418 (459,163) 1,645,255
reserve a. Profit & loss 502,884 502,884
account - Equity shareholders' 11,732,810 (459,163) 11,273,647
funds 10. The Interim Statement will be posted to shareholders and
will be available from the Company's Registered Office at Manor Farm,
Bridgham, Norwich, NR16 2RX and from the Company's website:
www.propertyrecycling.co.uk.
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