TIDMIPS
RNS Number : 9663V
Ipso Ventures PLC
23 January 2012
23 January 2012
IPSO Ventures plc
Interim Report
For the six months ended 31 October 2011
IPSO Ventures plc (AIM: IPS) ("IPSO", the "Company" or the "Group"), the technology commercialisation business, is pleased to announce its interim results for the year ended 31 October 2011.
For further information, please contact:
IPSO Ventures plc Tel: 0207 462 0093
Craig Rochford, Executive Chairman craig@ipsoventures.com
Nick Rodgers, Chief Executive Officer nick@ipsoventures.com
www.ipsoventures.com
Allenby Capital Limited Tel: 020 3328 5656
(nominated adviser and broker)
Nick Naylor
Nick Athanas
Chairman's letter and Interim Management Statement
Chairman's letter
This being my first letter to shareholders I think it is important that I set out the new strategy that the Board has adopted as well as our view of the business and its prospects.
Strategy update
The current aim of the Board of IPSO is to realise maximum value from its current portfolio through controlled exits over the next 2 to 3 years.
The portfolio of companies covers a number of technology sectors and the establishment of these companies themselves and all the investments selected have merits. Notwithstanding this, the original IPSO business strategy faced a severe headwind in IPSO's ability to build and recognise the value in time to maintain steady cash flow. This headwind was exacerbated by excessive overhead costs and limited access to funding, but in hindsight it is clear that previous management was overly optimistic in its ability to realise the investments in a timescale to maintain adequate cash flow.
Your present Board's response to this was to raise additional capital in July 2011 and significantly reduce those overheads. This has entailed reducing the Board from 5 to 3 and the directors being paid modest salaries by way of new shares in IPSO to conserve cash flow until the Company's finances have been repaired. Finance and administration have been consolidated into one role and one executive has been seconded to underlying businesses, where salaries are covered by them.
You will see by our new office address that IPSO has relocated resulting in a significant cost saving, which has reduced our property cost by 58% to GBP15,000 per annum. This and other cost reductions mean that, excluding any sales of portfolio assets or other unbudgeted income, we have sufficient working capital to take us into the third quarter of this calendar year.
The current situation we find ourselves in is a business with the following assets:
-- An AIM listing which would, conservatively, cost GBP300,000 to set up and establish. The Company has cash in the bank and no debt enabling us to continue operations and give us the opportunity to implement the new Board's strategy.
-- An investment portfolio of eight companies with potential for significant growth. Five of these companies are selling to customers and generating revenues and the other three are based on solid intellectual property which, if realised, could offer significant growth opportunities. The portfolio companies are described in more detail in the interim management statement below.
-- An experienced management team with complementary skills and dedicated to developing the commercial value in IPSO and with compensation more closely aligned with shareholders.
-- Access to additional capital from investors if good investment opportunities present themselves.
The way forward
As a Board we have spent considerable time reviewing options to take the company forward. We first eliminated the things we would not do. Notwithstanding any cash availability from the possible future sale of the present portfolio assets, we will not pursue early stage, high risk investments. Furthermore we will not allow the company's assets to be eroded over a long time period unless there is a high probability of developing a sustainable cash generative business going forward.
We have increased our ongoing involvement in the underlying portfolio companies which has resulted in some reduced costs and increased the revenues that IPSO receives from these companies. We are also working with portfolio company management teams to prepare the companies for potential trade sales.
Where possible, we seek to exploit the Board's skills and contacts for the Company's benefit. One small success in this field is the receipt of fees and a shareholding in Biocroi (see details in the Interim Management Statement below).
An area we find of interest is providing development capital and expertise, given the current tight credit facilities being experienced by SMEs in the UK. We believe there are good opportunities to provide development capital to established companies. We would do this on a very conservative and asset backed basis. Whilst there is always a risk in any investment we are looking at established companies and will avoid early stage businesses which the Board believe will take a long period to develop.
The Board is also looking at a number of opportunities which the Board believe have potential to significantly enhance shareholder value but these all remain at the early stages of investigation.
Whilst we do not want to gloss over the difficulties faced by IPSO in the past or the challenges it currently faces, I wish to assure you that your present board of directors is optimistic, motivated and has a degree of confidence that we can build shareholder value over the coming years.
Craig Rochford
Executive Chairman
23 January 2012
Interim Management Statement
Key Points
-- Additional capital of GBP155,000 (net) raised in July 2011
-- Costs reduced further
-- Biocroi and IPSol Energy both secured additional funding at a higher valuations
Overview
The six months to 31 October 2011 was a period of significant change in the management and the strategy for the business as set out in the Chairman's letter.
Financial review
We are delighted to record our first modest net profit in this period. This was principally as a result of increases in the valuation of two portfolio companies, Biocroi and IPSol Energy, during the period. Both companies raised new funds from third party investors at improved valuations. The Company's net profit for the period under review was GBP27,666 (six months to 31 October 2010: loss after tax of GBP230,128).
Investment activities
Financial constraints prevented us from making any new investments during the period. We recorded an increase of GBP88,338 and GBP110,625 in the fair value of our investments in Biocroi and IPSol Energy respectively. This has increased the fair value of our investment portfolio by GBP198,963 to GBP1.896 million (30 April 2011: GBP1.697 million). We have also been working with our portfolio companies to add value and, where appropriate, position them for exit.
Financing
Following the fundraising in July 2011 and the reductions in costs the Board believe that the Company has sufficient funding to take it into the third quarter of 2012 without assuming any revenues from the sales of any investments.
Operating costs
Corporate operating costs were reduced further during the period compared to the same period last year. In addition all directors' fees are being paid in new ordinary shares in IPSO thereby reducing the cash operating costs of the Company.
Cash
Cash and short term investments at 31 October 2011 totalled GBP40,670.
Portfolio analysis by sector
We continued to provide a variety of support for all the businesses including financial administration, business development advice, recruiting management and staff, hands on management support and funding.
As at 31 October As at 30 April 2011
2011
Fair value Fair value
Sector GBP % GBP %
--------------------------- ------------ ----- -------------- ------
Healthcare 1,079,089 53 990,751 54
New materials 405,000 20 405,000 22
Process and software 100,000 5 100,000 5
Energy and environmental 459,000 22 348,375 19
Total portfolio value 2,043,089 100 1,844,126 100
Consolidation adjustments (147,001) (147,001)
--------------------------- ------------ ----- -------------- ------
Consolidated value 1,896,088 1,697,125
--------------------------- ------------ ----- -------------- ------
Portfolio companies
Axilica
Axilica provides a unique behavioural synthesis tool in the ESL (electronic system level) design automation market. The advanced section of the ESL market has been dominated by small technology vendors and start-ups offering synthesis tools focused on translating programming languages (C, C++) into hardware (FPGA, ASIC).
Axilica has continued to work closely, either directly or through funded European research projects, with leading embedded systems companies including Selex Galileo Ltd, Thales Communications & Security SA and Intracom SA.
Axilica has actively enhanced its product, FalconML, to meet the needs of customers in its selected markets which include military/aerospace and telecoms. These enhancements have been specified by Axilica's customers and represent unique capabilities for the design of complex electronic embedded systems.
In response to customer needs, Axilica is now providing expert services to guide designers in the use of its technology on new embedded platforms. These services include proof of concept designs and customised support for specific embedded platforms.
Axilica is based in Loughborough and other investors include Loughborough University, the Lachesis Fund and the founding academics. IPSO's shareholding is 45%.
Biocroi
Biocroi has designed and developed a range of unique advanced microplates using gel-based buffering systems surrounding the wells which leads to better control of the microplate environment, which in turn improves quality, accuracy and uniformity of results. Biocroi's advanced microplate designs enable users to reduce costs, shorten development times and increase data quality.
Biocroi is working with a variety of partners to develop its products. These include a major pharmaceutical company and a leading supplier of genomics products to the drug discovery and development industry. Prototype products have been developed and volume production is expected to start in 2012.
Biocroi secured significant funding from Kernel Capital and Enterprise Ireland in 2011 and has been able to significantly increase its operations since securing additional funding.
Biocroi is based in Dublin and other investors include Kernel Capital, Enterprise Ireland, certain private investors and the academic founder. IPSO's shareholding is 6%.
Cambridge Meditech
Cambridge Meditech's novel patented wound infection technology gives a visual indication of infection. Wound infection can be detected without unnecessary disruption to a dressing and appropriate intervention can be made immediately. It is anticipated that the products will have multiple applications in various settings.
Our partner, Lantor, is continuing to work on products which incorporate Cambridge Meditech's technology and has had discussions with a number of potential customers.
Cambridge Meditech is based at IPSO's offices and is 100% owned by IPSO.
IPSol Energy
IPSol Energy is a service business providing testing, certification and other services to the solar photovoltaic ("PV") industry.
In 2011 IPSol Energy achieved UKAS accreditation for its solar PV laboratory, making it the first of its kind in the UK. IPSol Energy has carried out work for a range of customers across the UK solar PV industry generating good revenues in its first year of operation. In October 2011 IPSol Energy secured additional funding from investors which has allowed it to expand its testing capability.
2011 saw a huge increase in the UK PV market with the introduction of feed in tariffs for generating solar electricity but the recent changes to these tariffs by the UK Government will change things in the coming year.
IPSol Energy has secured strategic partnerships with a major international testing business and the BSI Group (British Standards Institution) which is anticipated will lead to additional business from outside the UK.
IPSol Energy is based in Nottingham and other shareholders include Loughborough University, certain private investors, management and the academic founder. IPSO's shareholding is 27%.
Medermica
Medermica has so far been unsuccessful in licencing its ph measurement technology to third parties. It has recently taken its patents into the PCT national/regional phase in Europe and US.
Further significant business development is prevented through a lack of funding but the company is endeavouring to identify ways which the business can progress.
Medermica is based at IPSO's offices and is 75% owned by IPSO and 25% by Imperial Innovations plc.
Polyfect Solutions
Polyfect's novel process enables cost savings and quality improvements to a range of plastics through the highly efficient incorporation of functional fillers (which give polymers certain characteristics and properties).
Polyfect is continuing its development work with a major international brewer and has recently commenced a feasibility study with a consumer products multinational. Discussions with other interested parties are also taking place with a view to exploiting Polyfect's technology particularly in the nanotechnology area. Additionally Polyfect has secured Technology Strategy Board funding for a project on improved food packaging.
Additional patent filings are planned in the coming year.
Polyfect is based in Loughborough and other shareholders include Loughborough University, the Lachesis Fund and the academic founders. IPSO's shareholding is 33%.
Therakind
Therakind is a paediatric healthcare company. It takes known adult drugs and creates a version for children which can be protected by EU legislation. The revenue model is to generate royalties on product sales.
Therakind's major success in 2011 was the securing of the first PUMA (Paediatric Use Marketing Authorisation) for its first product, Buccolam. This product has been licenced to Viropharma Inc who have launched the product in the UK to be followed by launches in other European countries. Therakind has received certain upfront payments and will receive royalties on sales of Buccolam.
Therakind is co-developing a pipeline of products with a number of partners. These products are at various stages of development and include one which is in late stage development.
Therakind is based in London and other investors include University College London, private investors, management and the academic founder. IPSO's shareholding is 36%.
Wildknowledge
Wildknowledge creates mobile applications that engage audiences with their heritage (i.e. the environment, wildlife, archaeology and history). Its offering includes data gathering applications; location based content and engaging games.
Wildknowledge has a range of customers including: National Geographic; The British Museum, RSPB, Wildlife Trust and the Heritage Lottery Fund and is in discussions regarding a number of other contracts in this field for 2012. In addition, Wildknowledge has enjoyed success in the e-health market with a range of rapid assessment tools and has also received TSB funding to examine the feasibility of using smartphones to monitor and motivate movement in the elderly at home.
2011 has seen Wildknowledge reduce its reliance on the education market and build revenues through three streams (white labelling existing technology, delivery of native applications/subscriptions and creation of standalone content) in the wider heritage market and new markets.
Wildknowledge is based in Oxford and other investors include Oxford Brookes University, certain private investors and the academic founders. IPSO's shareholding is 9%.
Craig Rochford
Executive Chairman
23 January 2012
Nick Rodgers
Chief Executive
23 January 2012
Condensed consolidated statement of comprehensive income
for the six months ended 31 October 2011
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 October 31 October 30 April
2011 2010 2011
Note GBP GBP GBP
-------------------------------------------- ----- ----------- ----------- -----------
Revenue 60,382 78,000 154,751
Change in fair value of investments 198,964 201,204 (276,750)
Gain on deemed disposal of investments - - 458,336
Administrative expenses
* Corporate (212,560) (283,185) (622,783)
* subsidiary portfolio companies (11,649) (143,957) (93,602)
* exceptional - (45,323) -
Share-based payment (7,471) (36,867) (47,447)
Operating profit / (loss) 27,666 (230,128) (427,495)
Finance income - interest receivable - - 3,740
-------------------------------------------- ----- ----------- ----------- -----------
Profit / (Loss) before tax 27,666 (230,128) (423,755)
Tax - - 76
-------------------------------------------- ----- ----------- ----------- -----------
27,666 (230,128) (423,679)
Profit / (Loss) and total comprehensive
income for the period
Attributable to equity holders of the
parent 28,926 (230,128) (409,182)
Attributable to non-controlling interest (1,260) - (14,497)
-------------------------------------------- ----- ----------- ----------- -----------
Profit / (Loss) per share
Basic and diluted 4 0.10p (1.8)p (2.7)p
-------------------------------------------- ----- ----------- ----------- -----------
All results derive from continuing operations.
Condensed consolidated statement of changes in equity
for the six months ended 31 October 2011
Attributable to equity holders of the Group
Share
Share Own Share option Other Retained Minority Total
capital shares premium reserve reserve losses Total Interest equity
GBP GBP GBP GBP GBP GBP GBP GBP GBP
-------- ---------- ---------- ---------- ---------- ------------ ---------- --------- ----------
At 1 May
2010 (audited) 659,461 (325,295) 5,289,527 271,034 (175,292) (3,867,179) 1,852,256 415 1,852,671
Issue of
share capital 162,500 - 127,500 - - - 290,000 - 290,000
Consolidated
loss for
the period - - - - - (230,128) (230,128) - (230,128)
Disposal
of investment
in subsidiary - - - - - 296,154 296,154 (83) 296,071
Employee
share option
charge - - - 36,867 - - 36,867 - 36,867
-------- ---------- ---------- ---------- ---------- ------------ ---------- --------- ----------
At 31 October
2010
(unaudited) 821,961 (325,295) 5,417,027 307,901 (175,292) (3,801,153) 2,245,149 332 2,245,481
Issue of - - - - - - - - -
share capital
Share options
exercised - 29,888 - (29,888) - - - - -
Consolidated
loss for
the period - - - - - (475,208) (475,208) (14,497) (489,705)
Share options
forfeited - - - (164,181) - 164,181 - - -
Employee
share option
charge - - - 10,580 - - 10,580 - 10,580
-------- ---------- ---------- ---------- ---------- ------------ ---------- --------- ----------
At 30 April
2011 (audited) 821,961 (295,407) 5,417,027 124,412 (175,292) (4,112,180) 1,780,521 (14,165) 1,766,356
Issue of
share capital 21,191 - 169,022 - - - 190,213 - 190,213
Consolidated
profit for
the period - - - - - 28,926 28,926 (1,260) 27,666
Share options
exercised - 49,656 - (49,656) - - - - -
Share options
forfeited - - - (9,030) - 9,030 - - -
Employee
share option
charge - - - 7,471 - - 7,471 - 7,471
-------- ---------- ---------- ---------- ---------- ------------ ---------- --------- ----------
At 31 October
2011(unaudited) 843,152 (245,751) 5,586,049 73,197 (175,292) (4,074,224) 2,007,131 (15,425) 1,991,706
-------- ---------- ---------- ---------- ---------- ------------ ---------- --------- ----------
Condensed consolidated statement of financial position
31 October 2011
Unaudited Unaudited Audited
31 October 31 October 30 April
2011 2010 2011
Note GBP GBP GBP
--------------------------------------- ----- ------------ ------------ ------------
ASSETS
Non-current assets
Intangible assets 73,757 98,864 73,757
Property, plant and equipment 5 3,808 5,625 5,300
Investments 6 1,896,088 1,977,624 1,697,124
Total non-current assets 1,973,653 2,082,113 1,776,181
--------------------------------------- ----- ------------ ------------ ------------
Current assets
Other receivables 7 67,583 173,549 73,713
Cash and cash equivalents 8 40,670 75,430 19,968
--------------------------------------- ----- ------------ ------------ ------------
Total current assets 108,253 248,979 93,681
--------------------------------------- ----- ------------ ------------ ------------
Total assets 2,081,906 2,331,092 1,869,862
--------------------------------------- ----- ------------ ------------ ------------
EQUITY AND LIABILITIES
Share capital 843,152 821,961 821,961
Share premium 5,586,049 5,417,027 5,417,027
Own shares (245,751) (325,295) (295,407)
Share option reserves 73,197 307,901 124,412
Other reserve (175,292) (175,292) (175,292)
Retained losses (4,074,224) (3,801,153) (4,112,180)
--------------------------------------- ----- ------------ ------------ ------------
Equity attributable to equity holders
of the parent 2,007,131 2,245,149 1,780,521
Minority interest (15,425) 332 (14,165)
--------------------------------------- ----- ------------ ------------ ------------
Total equity 1,991,706 2,245,481 1,766,356
--------------------------------------- ----- ------------ ------------ ------------
Current liabilities
Trade and other payables 9 90,019 85,430 103,325
Non-current liabilities
Deferred tax liabilities 181 181 181
--------------------------------------- ----- ------------ ------------ ------------
Total liabilities 90,200 85,611 103,506
--------------------------------------- ----- ------------ ------------ ------------
Total equity and liabilities 2,081,906 2,331,092 1,869,862
--------------------------------------- ----- ------------ ------------ ------------
The financial statements were approved by the Board of Directors and authorised for issue on 23 January 2012. They were signed on its behalf by:
Craig Rochford
Director
23 January 2012
Condensed consolidated statement of cash flows
for the six months ended 31 October 2011
Unaudited Unaudited Audited
six months six months Year
ended ended Ended
31 October 31 October 30 April
2011 2010 2011
GBP GBP GBP
-------------------------------------------------- ----------- ----------- ----------
Operating activities
Profit / (Loss) for the period 27,666 (230,128) (423,679)
Adjusted for:
Fair value movements in investments (198,964) (201,204) 276,750
Depreciation of property, plant and equipment 1,642 1,530 3,134
Amortisation of intangible assets - - 25,107
Income tax credit - - (76)
Disposal of investment in subsidiary - 296,071 -
Portion of gain on deemed disposal retained
as investment - - (458,336)
Share-based payment expense 7,471 36,867 47,447
-------------------------------------------------- ----------- ----------- ----------
Operating cash flows before movements in working
capital (162,185) (96,864) (529,653)
(Increase)/decrease in receivables 6,130 (102,685) (15,931)
(Decrease)/Increase in payables (13,306) (26,202) 105,560
Income taxes received - - 10,649
Net cash used in operating activities (169,361) (225,751) (429,375)
-------------------------------------------------- ----------- ----------- ----------
Investing activities
Purchases of intangible assets - - -
Purchases of property, plant and equipment (150) (839) (2,118)
Payments to acquire investments - - -
Reclassification of investment in subsidiary - (147,171) 2,270
-------------------------------------------------- ----------- ----------- ----------
Net cash used in investing activities (150) (148,010) 152
-------------------------------------------------- ----------- ----------- ----------
Financing activities
Proceeds on issue of shares 190,213 290,000 290,000
Net cash from financing activities 190,213 290,000 290,000
-------------------------------------------------- ----------- ----------- ----------
Net decrease in cash and cash equivalents 20,702 (83,761) (139,223)
Cash and cash equivalents at beginning of period 19,968 159,191 159,191
-------------------------------------------------- ----------- ----------- ----------
Cash and cash equivalents at end of period 40,670 75,430 19,968
-------------------------------------------------- ----------- ----------- ----------
Notes to the condensed set of financial statements
for the six months ended 31 October 2011
1. General information
The financial information for the six months ended 31 October 2011 is unaudited and has been prepared in accordance with the accounting policies set out in the Group's Annual Report for the year ended 30 April 2011. The financial information for the six months ended 31 October 2010 is also unaudited and the results have not been reviewed by the Group's auditors. The financial information relating to the year ended 30 April 2011 has been extracted from the full report for that year. The report of the auditors on the 2011 accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) Companies Act 2006. The statutory accounts for the year ended 30 April 2011 were approved at the Group's Annual General Meeting on 9 September 2011 and have been delivered to the Registrar of Companies.
2. Accounting policies
The annual financial statements of the Group are prepared in accordance with IFRS as adopted by the EU. The condensed set of financial statements included in this Interim Report has been prepared in accordance with International Accounting Standard ('IAS') 34 'Interim Financial Reporting', as adopted by the EU.
Basis of preparation
The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest annual financial statements. No new standards that have become effective during the period have had a material effect on the Group's financial statements.
3. Business segments
In accordance with IFRS 8, the Group is required to define its operating segments based on the internal reports presented to its chief operating decision maker in order to allocate resources and assess performance. The chief operating decision maker is the Chief Executive. The reportable segments are Consultancy & Portfolio Management, Healthcare and Energy & Environmental.
The accounting policies of the reportable segments are the same as the Group's accounting policies. Administrative costs incurred in the Portfolio Management segment are not allocated to the various reportable segments; each segment incurs its own administrative costs.
No geographical information is provided because the Group only operates in the United Kingdom.
Consultancy
Energy
& Portfolio &
Management Healthcare Environmental Consolidated
Six months to 31 October 2011 (unaudited) GBP GBP GBP GBP
------------------------------------------- ------------ ----------- -------------- -------------
Revenue
Total segment revenue 55,382 5,000 - 60,382
Result
Change in fair value of investments 198,964 - - 198,964
Share based payments (7,471) - - (7,471)
Administrative expenses (216,022) (8,187) - (224,209)
Profit / (Loss) before tax 30,853 (3,187) - 27,666
------------------------------------------- ------------ ----------- -------------- -------------
Consultancy
Energy
& Portfolio &
Management Healthcare Environmental Consolidated
Six months to 31 October 2010 (unaudited) GBP GBP GBP GBP
------------------------------------------- ------------ ----------- -------------- -------------
Revenue
Total segment revenue 78,000 - - 78,000
Result
Change in fair value of investments 201,204 - - 201,204
Share-based payments (36,867) - (38,698) (75,565)
Administrative expenses (328,508) (31,948) (73,311) (433,767)
------------------------------------------- ------------ ----------- -------------- -------------
Loss before tax (86,171) (31,948) (112,009) (230,128)
------------------------------------------- ------------ ----------- -------------- -------------
3. Business segments continued
Consultancy
Energy
& Portfolio &
Management Healthcare Environmental Consolidated
Year to 30 April 2011 (audited) GBP GBP GBP GBP
------------------------------------------- ------------ ----------- -------------- -------------
Revenue
Total segment revenue 150,751 4,000 - 154,751
Result
Change in fair value of investments (276,750) - - (276,750)
Gain on deemed disposal of investment 458,336 - - 458,336
Share-based payments (47,447) - - (47,447)
Administrative expenses (562,235) (81,161) (72,989) (716,385)
------------------------------------------- ------------ ----------- -------------- -------------
Operating loss (277,345) (77,161) (72,989) (427,495)
Finance income - interest receivable 3,740 - - 3,740
------------------------------------------- ------------ ----------- -------------- -------------
Loss for the year and total comprehensive
income for the year (273,605) (77,161) (72,989) (423,755)
------------------------------------------- ------------ ----------- -------------- -------------
4. Earnings/Loss per share
The basic earnings/loss per share is calculated by dividing the profit/loss attributable to ordinary shareholders by the weighted average number of ordinary shares of 29,331,037 outstanding during the six months ended 31 October 2011 (2010: 14,581,287).
There were no dividends for the six months ended 31 October 2011 or the six months ended 31 October 2010.
There were no potentially dilutive share options over ordinary shares in the Group outstanding at the period end and therefore the dilutive earnings per share are equal to the basic earnings per share.
5. Property, plant and equipment
Fixtures Computer
and fittings Equipment Total
GBP GBP GBP
----------------------------------------- ------------- ---------- ---------
Cost
At 1 May 2011 4,855 24,247 29,102
Additions - 150 150
----------------------------------------- ------------- ---------- ---------
At 31 October 2011 4,855 24,397 29,252
----------------------------------------- ------------- ---------- ---------
Accumulated depreciation and impairment
At 1 May 2011 (2,695) (21,107) (23,802)
Charge for the period (452) (1,190) (1,642)
----------------------------------------- ------------- ---------- ---------
At 31 October 2011 (3,147) (22,297) (25,444)
----------------------------------------- ------------- ---------- ---------
Net book value
At 31 October 2011 1,708 2,100 3,808
----------------------------------------- ------------- ---------- ---------
At 31 October 2010 2,645 2,980 5,625
----------------------------------------- ------------- ---------- ---------
At 30 April 2011 2,160 3,140 5,300
----------------------------------------- ------------- ---------- ---------
6. Investments
The Group held the following investments in unquoted companies:
Unaudited Unaudited Audited
six months six months Year
ended ended Ended
31 October 31 October 30 April
2011 2010 2011
GBP GBP GBP
------------------------------------------------------ ----------- ----------- ----------
Available-for-sale investments (fair value)
At the beginning of the period 1,697,124 1,629,249 1,629,249
Realisations during the period - - (3,750)
Change in fair value in the period 198,964 201,204 (276,750)
Retained investment on deemed disposal of subsidiary - - 348,375
Reclassifications for the period - 147,171 -
------------------------------------------------------ ----------- ----------- ----------
At the end of the period 1,896,088 1,977,624 1,697,124
------------------------------------------------------ ----------- ----------- ----------
All of the available-for-sale investments, held at fair value through profit and loss, were designated as such upon initial recognition.
7. Other receivables
Unaudited Unaudited Audited
six months six months Year
Ended ended Ended
31 October 31 October 30 April
2011 2010 2011
GBP GBP GBP
------------------------------------- ----------- ----------- ---------
Amounts due from investee companies 28,583 92,310 13,088
Corporation tax receivable 2,612 13,185 2,612
Other receivables 14,854 54,407 28,753
Prepayments and accrued income -21,534 13,647 29,260
67,583 173,549 73,713
------------------------------------- ----------- ----------- ---------
The Directors consider that the carrying amount of trade and other receivables approximates their fair value.
8. Cash and cash equivalents
Unaudited Unaudited Audited
six months six months Year
ended ended Ended
31 October 31 October 30 April
2011 2010 2011
GBP GBP GBP
--------------------------- ----------- ----------- ---------
Cash and cash equivalents 40,670 75,430 19,968
Short-term deposits - - -
--------------------------- ----------- ----------- ---------
40,670 75,430 19,968
--------------------------- ----------- ----------- ---------
Cash and cash equivalents comprise cash held by the Group and short-term bank deposits with an original maturity of three months or less. The carrying amount of these assets approximates their fair value.
9. Trade and other payables
Unaudited Unaudited Audited
six months six months Year
ended ended Ended
31 October 31 October 30 April
2011 2010 2011
GBP GBP GBP
------------------------------ ----------- ----------- ---------
Trade creditors 26,684 39,410 58,749
Other creditors 1,113 20,321 11,673
Accruals and deferred income 62,222 25,699 32,903
------------------------------ ----------- ----------- ---------
90,019 85,430 103,325
------------------------------ ----------- ----------- ---------
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The Directors consider that the carrying amount of trade payables approximates to their fair value.
Responsibility statement
The Directors confirm to the best of their knowledge that:
a) the financial information in the condensed set of financial statements has been prepared in accordance with IAS 34 as adopted by the EU; and
b) the interim management report includes a fair review of the information required by the FSA's Disclosure and Transparency Rules (4.2.7 R and 4.2.8 R).
By order of the Board
Craig Rochford Nick Rodgers
Executive Chairman Chief Executive
23 January 2012 23 January 2012
This information is provided by RNS
The company news service from the London Stock Exchange
END
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