RNS Number:4970E
Newfound N.V.
26 September 2007
Newfound N.V.
Interim results for the six months ended 30 June 2007
NEWFOUND'S NET ASSETS INDEPENDENTLY VALUED AT 77 PENCE PER SHARE*
Newfound N.V. ("Newfound" or the "Company"), the creator and operator of
international luxury resorts and destinations, today announces its unaudited
interim results for the six months ended 30 June 2007.
Since its announcement of the 2006 full year results, the Company has:
* Had its resorts independently valued giving a calculated net asset value
of 77 pence per share*
* Made good progress in obtaining suitable funding in order to sustain and
enhance the financial position of the company
* Revised the management structure of the Company with new CEO and CFO
appointments
* Increased revenue over the same period in 2006 and commenced plans for
reducing the Company's cost base
* Made further investigations of potential new resorts
For the six months, Newfound had revenue of US$ 17.0 million (2006: US$ 9.6
million) and an operating loss before exceptional items of US$ 7.1 million
(2006: US$ 4.0 million) with the result that the basic and adjusted loss per
share was US 5.9 cents (2006: adjusted loss of US 6.3 cents and basic earnings
of US 2.2 cents). The loss before tax for the six months was US$ 7.4 million
(2006: a profit of US$ 1.8 million). The book net asset value is US 11 cents per
share (2006: US 4 cents per share).
For further information, please contact:
Newfound N.V.
John Theophilus - CEO +44 (0)20 7470 2487
Collins Stewart
Adrian Hadden +44 (0)20 7523 8353
About Newfound:
Newfound is a creator and operator of international luxury resorts and
destinations. Newfound established a proven business model through the success
of Humber Valley Resort in Canada and is developing two further resorts in St.
Kitts and Nevis in the Caribbean.
Humber Valley Resort, with 2,200 acres, currently has over 200 privately owned
properties the majority of which are available for rent. It is an all-season,
luxury resort offering golf, world-class salmon fishing, sailing, skiing and a
luxury spa.
The Group's vision is to create long-term environmental, social, physical,
cultural and economic value in untapped destinations benefiting local
populations, home owners, international visitors and shareholders alike.
Newfound has an integrated business model based on destination master-planning,
which generates revenues from multiple sources, including freehold land sales,
construction and development, services to owners, the provision of leisure
activities and the operation of concessions.
Newfound is building an industry leading, world-class luxury lifestyle brand
offering exceptional holiday experiences in luxurious homes, situated in
locations of outstanding natural beauty.
www.newfoundgroup.com
CHAIRMAN'S STATEMENT
The interim period for this year has been one of consolidation and preparing the
Company for future growth, although it is disappointing to report 2007 half year
results that show a loss before tax of US$ 7.4 million (2006: a profit of US$
1.6 million and before exceptional items a loss of US$ 5.3 million). I am
pleased to be able to report that as at 30 June, Humberts Leisure, the
international leisure business consultants, have valued our resorts in Humber
Valley and Nevis at US$ 227 million which if taken into the accounts would
result in a net asset value per share of US 154 cents (77 pence)*.
Our work to improve the flow of visitors to Humber Valley saw a significant
increase in guest nights at 21,064 up 36% on the same six months in 2006.
However, our plot sales in the first half of the year have been negligible due
to the fact that the early part of the year is not conducive to sales at Humber
Valley and, as mentioned within the 2006 Annual Report, we reorganised the sales
team to target high net worth individuals looking for second homes in private
and luxurious surroundings. These changes are now in place and the Company is
focussed on delivering sales.
The master plan for the 430 acre development in Nevis has made important
progress and it is hoped to start construction later in 2008.
Construction has commenced at Oceans Edge, our resort in St Kitts. Out of 169
apartments and 23 villa plots we have sales and reservations totalling 60. Under
accounting standards we can not take any revenue and profit on the apartments
until each block has been fully constructed resulting in the initial revenue and
profit being recognised in 2008.
We are finalising a loan facility of US$ 21 million for our Humber Valley Resort
to provide working capital for its development and for the Group. We are in the
early stages of negotiating finance for the Nevis Resort to cover the US$ 30
million infrastructure and initial construction costs. Further announcements on
these financing developments will be made in due course.
As part of our management restructuring, John Theophilus, who has extensive
experience in the property sector, has been appointed with immediate effect as
Chief Executive Officer to manage the Group on a day to day basis. Brian Dobbin
becomes President and will concentrate on overall marketing of the Newfound
concept and new business. Simon Longfield has been promoted to take over from
John Theophilus as the Chief Financial Officer. Edwin Richards, SVP Commercial
Developments, has resigned from the Group with immediate effect and I would like
to thank him for his contribution both at Newfound's predecessor company,
Nettec, and in integrating Newfound into Nettec following the IPO last year.
Looking ahead, we are positive about the sales opportunities that exist at both
Humber Valley Nevis and St Kitts, and in addition, the opportunities for
continued increase in operational revenues at Humber Valley. We are encouraged
that an independent valuation of our existing resort developments indicates the
underlying level of asset value for shareholders. Both of our resorts in
Newfoundland and Nevis have enormous long term potential and I look forward to
seeing this profit flow through to the Company in the future.
Jeremy White
Chairman
26 September 2007
CHIEF EXECUTIVE OFFICER'S REPORT
Results
The loss on ordinary activities before taxation was US$ 7.4 million for the six
month period ended 30 June 2007 (2006: a profit of US$ 1.6 million and before
exceptional items a loss of US$ 5.3 million). Revenue for the six month period
increased from US$ 9.6 million in 2006 to US$ 17.0 million this year. The
increase in revenue is primarily due to the increased construction activity in
Humber Valley compared to the same period in 2006. It should be noted, however,
that the main sales period, at present, is in the second half of the year due to
the winter weather conditions in Newfoundland during the first half of the year,
which restricts construction and sale activity.
Stated net assets per share fell from US 14.1 cents at the year end to US 11.2
cents at 30 June 2007 due to the loss during the period, but if the Humberts
Leisure valuation were to be taken into account the figure at 30 June 2007 would
be US 154 cents (77 pence)*. The Company has been negotiating a facility of US$
21 million to Humber Valley Resort Corporation to provide working capital for
its development and for the Group and will be putting in place financing for the
start of our Nevis project.
Operating review
As mentioned in the Chairman's statement, the first half of the year was one of
consolidation, management changes and preparing the Company for the future.
At Nevis we have completed the Resort master plan, marked out the plots for sale
and designed and costing three styles of villas. Our discussions with the
Starwood organisation with regard to the hotel and fractional apartments on site
continue although the letter of intent has now expired and we have chosen not to
extend it. We are also negotiating with other operators with a target to sell
the hotel site early in the new year. Your Board has taken the decision that we
should not be involved in the development and operation of hotels at our resorts
but that we will retain an input into the external design to ensure
compatibility with their overall development.
At Humber Valley, we have started construction on over 20 chalets this year and
have sold 11 plots and chalets. We are hopeful of achieving our target sales of
plots for the year with a further 6.2 acres sold in August to one owner for the
construction of two houses. With regard to the operational vacation business we
have had a satisfactory increase of visitors over last year. Recently, we have
put in place a dedicated team with vacation sales experience to sell vacations
at Humber Valley. The full impact though will not be felt until the 2008 season.
During the summer months, we have organised a number of sales trips from the UK
and USA for potential investors to introduce them to the Newfound experience.
They were encouraged to partake of the facilities available including golf,
angling and water sports. Although early to gauge the outcome, we believe that
these trips will result in a number of plot sales at both Humber Valley and
Nevis.
At Oceans Edge in St Kitts, construction on the first eight blocks of two
apartments each has commenced with completion scheduled in mid 2008. As
previously mentioned, we cannot recognise the revenue and profit from this until
completion of construction and the apartments are handed over to the new owners.
We have also sold five villa plots due for sale completion in the second half of
this year. We are planning to have sold all 169 units by 2009 although
construction will not be complete until late 2009 for the apartments and 2010
for the villas.
The future
As mentioned in the Chairman's statement, John Theophilus will be assuming the
role of CEO whilst I in my new role as President & Founder, will be focusing on
the growth of the Company in new sales projects and fostering the key
partnerships and relationships that will make Newfound a leader in providing
quality luxury resort experiences. Under the new management structure we will be
looking to put the Company on a firm financial footing, reduce the cost base and
increase sales activity together with the enhancement of our net asset value. I
would also like to thank Edwin Richards for the significant contribution he has
made in bringing Newfound to AIM and for his dedication to implementing and
upgrading the financial systems following the IPO.
We will also continue to investigate suitable potential resort sites for the
future.
Brian Dobbin
President and Chief Executive Officer for the interim period
26 September 2007
Note
* This valuation is based on a Balance Sheet valuation which assumes that
properties at a resort are sold and built out over a number of years. In
arriving at the valuation, costs and sales prices are inflated and the resultant
profit adjusted for finance costs and developers profit. This is then
discounted to present day values. Our understanding is that this is a typical
methodology for valuing resorts and hotels.
CONSOLIDATED INCOME STATEMENT
FOR THE HALF YEAR ENDED 30 JUNE 2007
Half year ended 30 June
2007 2006 2006 2006
Before Exceptional
exceptional items
Total items (note 5) Total
Note US$'000 US$'000 US$'000 US$'000
Revenue 4 17,010 9,555 - 9,555
Cost of sales (12,332) (5,608) - (5,608)
Gross profit 4,678 3,947 - 3,947
Administrative expenses (8,994) (5,458) - (5,458)
Sales and marketing expenses (2,818) (2,525) - (2,525)
Other income 5 - - 6,893 6,893
Operating (loss) / profit 4 (7,134) (4,036) 6,893 2,857
Finance income 22 29 - 29
Finance costs (298) (1,245) - (1,245)
(Loss) / profit before tax (7,410) (5,252) 6,893 1,641
Taxation credit 1 125 - 125
(Loss) / profit for the year (7,409) (5,127) 6,893 1,766
Attributable to:
Equity holders of the Company (7,395) (5,090) 6,893 1,803
Minority interests (14) (37) - (37)
(7,409) (5,127) 6,893 1,766
(Loss) / earnings per share from US cents US cents
(loss) / earnings attributable to
equity holders of the Company
- basic and diluted 6 (5.9) 2.2
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2006
Year ended 31 December
2006 2006 2006
Before
exceptional Exceptional
items items Total
US$'000 US$'000 US$'000
Revenue 27,879 - 27,879
Cost of sales (17,872) (2,457) (20,329)
Gross profit 10,007 (2,457) 7,550
Administrative expenses (14,070) (17,210) (31,280)
Sales and marketing expenses (5,945) - (5,945)
Other income 1 6,893 6,894
Operating loss (10,007) (12,774) (22,781)
Finance income 154 - 154
Finance costs (770) (1,143) (1,913)
Loss before tax (10,623) (13,917) (24,540)
Taxation (charge) / credit (554) 887 333
Loss for the year (11,177) (13,030) (24,207)
Attributable to:
Equity holders of the Company (11,091) (10,308) (21,399)
Minority interests (86) (2,722) (2,808)
(11,177) (13,030) (24,207)
Loss per share from loss US cents
attributable to equity holders
of the Company
- basic and diluted (23.1)
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2007
30 June 31 December 30 June
2007 2006 2006
US$'000 US$'000 US$'000
(Restated)
ASSETS
Non-current assets
Property, plant and equipment 33,226 31,226 30,175
Trade and other receivables 10,983 10,518 854
Deferred charges - - 141
Deferred tax assets 1,223 1,118 494
45,432 42,862 31,664
Current assets
Inventories 24,814 23,182 22,023
Trade and other receivables 17,852 24,070 21,205
Current tax assets 1,321 1,207 -
Customer deposits 304 633 247
Cash and cash equivalents 1,599 3,789 2,478
45,890 52,881 45,953
LIABILITIES
Current liabilities
Trade and other payables (26,511) (31,208) (22,261)
Current tax liabilities - - (1,014)
Deferred revenue (17,801) (16,240) (8,560)
Borrowings (10,441) (9,364) (5,473)
Provisions (658) (859) (899)
(55,411) (57,671) (38,207)
Net current (liabilities) / (9,521) (4,790) 7,746
assets
Non-current liabilities
Deferred tax liabilities (1,461) (1,335) (340)
Deferred revenue (9,435) (9,174) (3,036)
Borrowings (8,363) (8,012) (30,005)
Class B and Class C share (2,283) (1,941) (2,882)
liability
(21,542) (20,462) (36,263)
Net assets 14,369 17,610 3,147
EQUITY
Share capital 1,626 1,585 959
Premium on shares issued 25,348 22,371 -
Other reserves 7,211 7,211 7,211
Translation reserve 539 (611) 53
Loss reserve (30,246) (22,851) (4,186)
Group restructuring reserve 9,891 9,891 (953)
Equity attributable to equity 14,369 17,596 3,084
holders of the Company
Minority interests in equity - 14 63
Total equity 14,369 17,610 3,147
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 30 JUNE 2007
Premium on Retained
Share shares Other Translation earnings /
capital issued reserves reserve (loss)
US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 1 January 2006 959 - 317 (182) 1,004
Acquisition - - - - (100)
Transfer - - 6,893 - (6,893)
Foreign exchange translation - - 1 235 -
difference
Profit for the period - - - - 1,803
Balance at 30 June 2006 959 - 7,211 53 (4,186)
Newfound acquisition - - - - -
Issue of capital 626 22,371 - - -
Foreign exchange movement - - - (664) -
Share based payments - - - - 14,488
Loss for the period - - - - (23,202)
Dividends - - - - (9,951)
Balance at 31 December 2006 1,585 22,371 7,211 (611) (22,851)
Issue of capital 41 2,977 - - -
Foreign exchange movement - - - 1,150 -
Loss for the period - - - - (7,395)
Balance at 30 June 2007 1,626 25,348 7,211 539 (30,246)
Group
restructuring Equity Minority Total
reserve holders interests equity
US$'000 US$'000 US$'000 US$'000
Balance at 1 January 2006 (953) 1,145 - 1,145
Acquisition - (100) 100 -
Transfer - - - -
Foreign exchange translation - 236 - 236
difference
Profit / (loss) for the - 1,803 (37) 1,766
period
Balance at 30 June 2006 (953) 3,084 63 3,147
Newfound acquisition 10,844 10,844 - 10,844
Issue of capital - 22,997 - 22,997
Foreign exchange movement - (664) - (664)
Share based payments - 14,488 2,722 17,210
Loss for the period - (23,202) (2,771) (25,973)
Dividends - (9,951) - (9,951)
Balance at 31 December 2006 9,891 17,596 14 17,610
Issue of capital - 3,018 - 3,018
Foreign exchange movement - 1,150 - 1,150
Loss for the period - (7,395) (14) (7,409)
Balance at 30 June 2007 9,891 14,369 - 14,369
CONSOLIDATED CASH FLOW STATEMENT
FOR THE HALF YEAR ENDED 30 JUNE 2007
Six months ended 30 June Full year
2007 2006 2006
US$'000 US$'000 US$'000
Cash flows from operating activities
Cash used in operations (note 7) (3,758) (8,194) (16,936)
Interest received 22 29 154
Interest paid (187) (615) (1,945)
Tax paid - (49) (1,487)
Net cash used in operating activities (3,923) (8,829) (20,214)
Cash flows from investing activities
Acquisition of Nettec plc - - 1,568
Acquisition of joint venture - (500) (500)
Proceeds from other loans repayments 48 48 128
Purchase of property, plant and equipment (2,328) (219) (8,238)
Disposal of property, plant and equipment - 805 1,189
Net cash (used in) / generated from investing activities (2,280) 134 (5,853)
Cash flows from financing activities
Net proceeds from issue of ordinary share capital 3,018 - 26,463
Proceeds from issuance of Class B and Class C preference 176 395 485
shares
Proceeds from overdraft and short term borrowings 1,238 - 920
Proceeds from issuance of borrowings 1,092 11,336 18,178
Repayment of borrowings (916) (41) (13,823)
Finance lease principal payments (661) (1,213) (2,099)
Redemptions of Class B liability (26) - (915)
Payment of subsidiary preference share dividends - - (127)
Net cash generated from financing activities 3,921 10,477 29,082
Net (decrease) / increase in cash and cash equivalents (2,282) 1,782 3,015
Exchange gains / (losses) on cash 92 (27) 51
Cash and cash equivalents at beginning of the year 3,789 723 723
Cash and cash equivalents at end of the year 1,599 2,478 3,789
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1 General information
Newfound N.V. ("the Company") and its subsidiaries (together "the Group") is a
creator and operator of international luxury resorts and destinations. The
Group continues to operate and develop Humber Valley Resort in Canada and is
currently developing a further resort in each of St Kitts and Nevis in the
Caribbean.
The Company is a public limited liability company incorporated in, and
registered under the law of, The Netherlands with registered number N.V.
1386624. The principal legislation under which the Company was formed, and
operates, and under which the shares in the Company have been and will be issued
is the Dutch Civil Code and regulations made under the law of The Netherlands.
The address of its registered office is Parkweg 2, 2585JJ Den Haag, The
Netherlands.
This report and consolidated interim financial statements are unaudited, but
have been reviewed by the auditors and their Interim Report is set out below.
The report and consolidated interim financial statements were authorised for
issue by the Board of Directors on 26 September 2007. Non-statutory accounts
for the year ended 31 December 2006 were approved by the Board of directors on
27 June 2007 and distributed to shareholders. The report of the auditors on
those accounts was unqualified and unmodified.
2 Basis of preparation
This consolidated interim financial information for the half-year ended 30 June
2007 has been prepared in accordance with the AIM rules. The report and
consolidated interim financial report statements should be read in conjunction
with the annual financial statements for the year ended 31 December 2006 which
have been prepared in accordance with IFRSs as adopted by the European Union.
During the six months ended 30 June 2007, the Group made an operating loss of
US$7.1million and had net current liabilities at 30 June 2007 of US$ 9.5
million. Since the start of the year, the Directors have taken a number of
initiatives to improve the profitability and cash flows of the Group. This
includes changing the Group's sales strategy and a reduction of certain of the
Group's costs. In addition to US$ 3.0 million raised in 2007 to date from the
issue of shares, the Directors have also been investigating alternative further
sources of funding. As described in note 8, the Company expects to close a
significant loan in October that will be sufficient for the funding needs of the
Group. On the basis of careful consideration of the future cash flow
requirements of the Group, including realistic expectations of proceeds from
future sales and outflows to creditors, the Directors have concluded that it is
appropriate that the financial statements have been prepared on a going concern
basis.
3 Accounting policies
The accounting policies adopted are consistent with those of the annual
financial statements for the year ended 31 December 2006, as described in those
annual financial statements.
Prior period adjustment
The balance sheet at 31 December 2006 has been restated to show an additional
US$ 10.0 million of land inventory that in error was classified within property,
plant and equipment. This adjustment has no impact on either the equity of the
Group or the income statement.
4 Business and geographical segments
Business segments
For management purposes, the Group is currently organised into 2 segments -
Development and Operations. These segments are the basis on which the Group
reports its primary segment information. The principal activities are as
follows:
Development: land sales and construction and sale of chalets, villas and apartments.
Operations: resort property rental, flight revenue and costs, activities income and sales of food
and beverages.
Information about these business segments is presented below.
Development Operations Other Total
US$'000 US$'000 US$'000 US$'000
Six months ended 30 June 2007
Revenue 14,929 2,081 - 17,010
Operating profit / (loss) 561 (4,012) (3,683) (7,134)
Six months ended 30 June 2006
Revenue 7,955 1,600 - 9,555
Operating loss before exceptional (755) (3,281) - (4,036)
items
Exceptional items 6,893 - - 6,893
Operating profit / (loss) 6,138 (3,281) - 2,857
Year ended 31 December 2006
Revenue 23,159 4,720 - 27,879
Operating loss before exceptional (1,285) (5,945) (2,777) (10,007)
items
Exceptional items 4,436 - (17,210) (12,774)
Operating profit / (loss) 3,151 (5,945) (19,987) (22,781)
5 Exceptional items
The following exceptional items are included in the results for 2006:
* a charge of US$ 2.5 million within cost of sales relating to non-recurring
sub-contract construction losses together with the related deferred tax
credit of US$ 0.9 million;
* a charge of US$ 17.2 million within administrative expenses relating to
the issue of shares to employees and key management prior to the
acquisition of the Newfound group;
* a credit of US$ 6.9 million within other income relating to the loss of
redemption rights on preference shares included within debt; and
* a charge of US$ 1.1 million within finance costs relating to a conversion
premium and interest payable on loans.
The exceptional item in the first six months of 2006 relates to the credit of
US$ 6.9 million described above.
6 (Loss) / earnings per share
Half year ended 30 June Half year ended 30 June
2007 2007 2006 2006
Adjusted Total Adjusted Total
US$'000 US$'000 US$'000 US$'000
(Loss) / earnings attributable to (7,395) (7,395) (5,090) 1,803
equity shareholders
Number Number Number Number
Basic and diluted weighted average 125,973,484 125,973,484 81,092,453 81,092,453
number of shares
US cents US cents US cents US cents
Basic and diluted (loss) / earnings (5.9) (5.9) (6.3) 2.2
per share
Year ended 31 December
2006 2006
Adjusted Total
US$'000 US$'000
Loss attributable to equity (11,091) (21,399)
shareholders
Number Number
Basic and diluted weighted average 92,778,204 92,778,204
number of shares
US cents US cents
Basic and diluted loss per share (12.0) (23.1)
As explained in the 2006 Annual Report, the weighted average number of shares in
2006 has been calculated as if the shares now held by the former shareholders of
the Newfound group of companies had always been in existence prior to the
Newfound acquisition.
The Company's total issued share capital at 30 June 2007 with voting rights and
which is admitted to trading on AIM consists of 73,901,725 ordinary shares of
Euro0.01 each, with one vote per share. In addition, the Company has in issue
54,174,928 Special Voting Shares, which is a separate class of share that is not
admitted to trading on AIM. Each Special Voting Share confers the right to cast
one vote at a general meeting and subsidiaries controlled by the Company have in
issue 54,174,928 related securities that are exchangeable in certain
circumstances for Ordinary Shares ("Exchangeable Securities").
The total number of voting rights in the Company is therefore 128,076,653 and
the above weighted average number of shares has been calculated as if the
Exchangeable Securities had been exchanged into Ordinary Shares.
In calculating the dilutive earnings per share, the weighted average number of
shares would be adjusted for the dilutive effect of the outstanding share
options. The potential exercise of options has an antidilutive effect on the
adjusted and total loss per share for 2007 and 2006 due to the loss for the
periods. The adjusted loss per share is calculated from the loss attributable to
equity shareholders excluding exceptional items.
7 Cash flows from operating activities
Reconciliation of (loss) / profit to cash used in operations
Six months ended 30 June Full year
2007 2006 2006
US$'000 US$'000 US$'000
(Loss) / profit for the year (7,409) 1,766 (24,207)
Adjustments for:
Tax credit (1) (125) (333)
Finance costs 298 1,245 1,913
Finance income (22) (29) (154)
Depreciation 863 952 2,273
Loss / (profit) on disposal of property, plant and - 41 (343)
equipment
Share based payments - - 17,210
Other non-cash movements - (6,866) (6,725)
Changes in working capital:
(Increase) / decrease in customer deposits 329 (247) (633)
(Increase) / decrease in trade and other receivables 7,524 (423) (23,257)
Increase in inventory (869) (6,485) (7,374)
Increase / (decrease) in trade and other payables (5,508) (4,510) 4,160
Increase in deferred revenue 1,301 6,487 20,534
Decrease in provisions (264) - -
Cash used in operations (3,758) (8,194) (16,936)
8 Events occurring after the balance sheet date
The Company has been negotiating with a financing institution for the closing of
a loan of US$ 21 million to Humber Valley Resort Corporation, a wholly owned
subsidiary, to provide working capital for its development and for the Group.
The directors are confident that this loan will be closed shortly.
To the Directors of Newfound N.V. ("the Company") and its subsidiaries (together
with the Company ("the Group"))
Interim Report for the six month period ended 30 June 2007
Introduction
We have been instructed by the Company to review the financial information for
the six months ended 30 June 2007 set out above. We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information.
Our report has been prepared in accordance with the terms of our engagement to
assist the company in meeting the requirements of the AIM Rules of the London
Stock Exchange and for no other purpose. No person is entitled to rely on this
report unless such a person is a person entitled to rely upon this report by
virtue of and for the purpose of our terms of engagement or has been expressly
authorised to do so by our prior written consent. Save as above, we do not
accept responsibility for this report to any other person or for any other
purpose and we hereby expressly disclaim any and all such liability.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
responsible for preparing the interim report in accordance with the rules of the
London Stock Exchange for companies trading securities on the Alternative
Investment Market which require that the half yearly report be presented and
prepared in a form consistent with that which will be adopted in the company's
annual accounts having regard to the accounting standards applicable to such
annual accounts.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of the Group's management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with International Standards on Auditing and therefore
provides a lower level of assurance than an audit. Accordingly we do not express
an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2007.
BDO Stoy Hayward LLP
Chartered Accountants
London
26 September 2007
This information is provided by RNS
The company news service from the London Stock Exchange
END
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From Apr 2023 to Apr 2024
