Innobox Plc (the "Company" or the "Group")                   

        Preliminary results announcement for the year ended 30 April 2007       

 
Chairman's Statement

I report the Group's results for the year ended 30 April 2007.  The trading
loss for the year, before impairment and amounts written off investments, was �
359,227 (2006: �648,285).  This year we have not needed to make any impairment
provisions against the carrying values of the fixed assets in each of our
subsidiaries, having already made provisions of �500,000 in the previous year. 
The loss for the year after taxation and minority interests is therefore the
same at �359,227 (2006: loss of �1,214,757), which represents a weighted
average loss per share of 0.98p (2006: loss per share of 5.04p).

At the start of the year the Company operated three trading pub and hotel
sites: The Moss Cottage in Ripley, Derbyshire; The Three Tuns in Pettistree,
near Ipswich; and The Royal Oak in Leominster, Herefordshire.  In addition a
development site was owned which was located at Fishmore Hall, Ludlow.  As I
reported last year the Company has continued to experience extremely tough
trading conditions in common with much of the licensed trade sector, and the
directors believe that these market conditions will not improve in the short
term.

As previously announced the Group successfully completed the disposal of the
freehold investment property at Fishmore Hall, Ludlow in April 2007, which was
owned by the subsidiary I F Hotels Limited.  The freehold property was sold at
the asking price of �675,000, but the monies recognised from the sale, after
having repaid the bank mortgage and overdraft, were insufficient to enable all
of the creditors of I F Hotels Limited to be paid in full.  Therefore the
Directors consulted with insolvency practitioners to ascertain the most
favourable course of action that would result in a maximum return to
creditors.  The subsidiary I F Hotels Limited then proposed entering into a
Company Voluntary Arrangement, which was agreed and approved by members and
creditors on 13 July 2007.

Also during the year the Company converted The Three Tuns pub from a managed
house to a tenancy under a three year agreement to private tenants.  The
tenancy agreement provides for an annual rental income of �34,800.  At the time
of entering into the tenancy agreement the Board successfully negotiated with
the bank for a capital repayment holiday in respect of the mortgage on this
site.

The Board recognised the need for the Company to be able to raise finance and
the decision to reorganise the share capital was made and subsequently approved
at an EGM held on 9 October 2006.  Whilst the Directors have the authority to
raise finance, we have been reviewing the strategy of focusing on the licensed
trade sector and have made a decision to try and exit this sector at the
earliest opportunity.  The Directors are currently reviewing the options for
this exit strategy and further announcements will be made in due course.

Finally, I would like to take this opportunity to thank my colleagues and our
employees for their hard work during this year and under continued difficult
trading conditions.

AS Baker
Non-executive Chairman
30 October 2007


Consolidated Profit and Loss Account for the year ended 30 April 2007
 

                                        Note    Year ended      Year ended
                                                  30 April        30 April
                                                      2007            2006
                                                         �               �

Turnover                                           701,352         939,936
                                                                          
Cost of sales                                    (487,697)       (739,035)

                                               -----------     -----------
Gross profit                                       213,655         200,901

Administrative expenses - continuing             (623,132)       (697,748)
                                                                          
Administrative expenses - exceptional              190,897       (500,000)

                                               -----------     -----------
                                                                          
Total administrative expenses                    (432,235)     (1,197,748)
                                                                          
                                               -----------     -----------
                                                                          
Operating loss                                   (218,580)       (996,847)

                                                                          
Loss on sale of investments                              -        (16,929)
                                                                          
Profit on disposal of tangible fixed assets          1,116               -

                                               -----------     -----------

Loss before interest and taxation                (217,464)     (1,013,776)

                                                                          
Interest receivable                                     94           4,079
                                                                          
Interest payable                                 (141,857)       (138,588)
                                                                          
                                               -----------     -----------
                                                                          
Loss on ordinary activities before taxation       (359,227)     (1,148,285)
                                                                
Taxation                                                 -               -
                                                                          
                                               -----------     -----------
                                                                          
Loss for the year                                (359,227)     (1,148,285)

                                                                          
Equity minority interests                                -        (66,472)
                                                                          
                                               -----------     -----------
                                                                          
Retained loss for the year                       (359,227)     (1,214,757)
                                                                          
                                               -----------     -----------

                                                                          
Basic loss per share (pence)             4         (0.98)p         (5.04)p
                                                                          
                                               -----------     -----------      
 

The Group has no recognised gains or losses other than the (loss)/profit for
the year.

 
Consolidated Balance Sheet as at 30 April 2007
 

                                          Note         As at          As at
                                                    30 April       30 April  
                                                        2007           2006  
                                                           �              �  
Fixed assets                                                               
Tangible fixed assets                              1,945,298      2,005,858
                                                                           
Current assets                                                             
Stocks                                                10,598         23,378
Debtors                                               97,142         85,687
Investments                                                -        627,260
Cash at bank and in hand                             172,672         31,317
                                                                           
                                                 -----------    -----------
                                                                           
                                                     280,412        767,642
                                                                           
                                                 -----------    -----------
                                                                           
Creditors:                                                                 
                                                                           
Amounts falling due within one year              (1,165,467)    (1,875,936)
                                                                           
                                                 -----------    -----------
                                                                           
Net current liabilities                            (885,055)    (1,108,294)
                                                                           
                                                 -----------    -----------
                                                                           
                                                                           
                                                                           
Total assets less current liabilities              1,060,243        897,564
                                                                           
                                                                           
                                                                           
Creditors:                                                                 
                                                                           
Amounts falling due after more than one          (1,353,076)      (831,170)
year                                                                       
                                                                           
                                                 -----------    -----------
                                                                           
Net (liabilities)/assets                           (292,833)         66,394
                                                                           
                                                 -----------    -----------
                                                                           
Capital and reserves                                                       
                                                                           
                                                                           
                                                                           
Called up share capital                              730,000        730,000
                                                                           
Share premium                                      1,062,364      1,062,364
                                                                           
Profit and loss account                          (2,085,197)    (1,725,970)
                                                                           
                                                 -----------    -----------
                                                                           
Shareholders' funds                        5       (292,833)         66,394
                                                                           
                                                                           
                                                                           
Minority interest                                          -              -
                                                                           
                                                 -----------    -----------
                                                                           
Total capital employed                             (292,833)         66,394
                                                                           
                                                 -----------   ------------
                                                                           

 


Consolidated Cash Flow Statement for the year ended 30 April 2007

 

                                          Note          Year           Year
                                                       ended          ended
                                                    30 April       30 April
                                                        2007           2006
                                                           �              �
                                                                              
Net cash inflow from operating activities  6          41,460        212,542
                                                                           
                                                                   
Return on investments and servicing of 
finance                                    
                                                                   
Interest received                                         94          4,079
                                                                           
Interest paid                                      (139,915)      (134,987)
                                                                           
Interest element of finance lease rentals            (1,942)        (3,601)
                                                                           
                                                 -----------    -----------
                                                                           
                                                   (141,763)      (134,509)
                                                                           
                                                                           
Capital expenditure and financial investment                                           
                                                                          
Payments to acquire fixed assets                    (55,172)      (394,987)
                                                                           
Proceeds from disposal of investments                628,376        253,471
                                                                           
                                                 -----------    -----------
                                                                           
Net cash inflow/(outflow) from capital               573,204      (141,516)
expenditure and financial investment                                       
                                                                       
                                                                           
                                                 -----------    -----------
                                                                           
Net cash inflow/(outflow) before financing           472,901       (63,483)
                                                   
                                                                           
                                                                           
                                                                           
Financing       
                                                            
Issue of ordinary shares for cash                          -        292,000
                                                                           
Repayment of bank loans in full                    (352,625)              -
                                                                           
Issue of minority interest shares for cash                 -          1,000
                                                           
Repurchase of minority shares for cash                     -        (2,255)
                                                                           
Part disposal of minority interests                        -         24,445
                                                                           
Increase in bank loans                                22,500              -
                                                                           
New finance leases and hire purchase contracts        11,719              -
                                                         
Capital element of bank loan repayments             (16,309)      (271,563)
                                                                           
Capital element of finance lease rentals             (9,542)        (9,183)
                                                                           
                                                 -----------    -----------
                                                                           
Increase/(decrease) in cash for the year   7         128,644       (29,039)
                                                                           
                                                 -----------   ------------
                                                                           
Notes to the Preliminary Results for the year ended 30 April 2006

1 Accounting policies                                                  

The financial statements have been prepared in accordance with applicable 
accounting standards and under the historical cost convention.

At 30 April 2007 the Group*s balance sheet reflects a net current
liability position. The Group meets its day to day working capital 
requirements through overdraft facilities which are repayable on demand.
The Directors have prepared cash flow forecasts for the period following
the year end to 31 October 2008.  The nature of the Group*s business
is such that there can be significant unpredictable variances in cash flows. 
However the Directors confirm that the Company is prepared to provide 
the necessary financial support to meet any shortfall in the Group*s 
cash position that may occur, without any legal obligation to do so. 
The Directors believe that the Company will have the necessary resources
to meet this commitment by raising funds by way of an equity fundraising 
in order to meet any shortfall in the Group*s cash position that may occur
in the period to 31 October 2008 and by the contribution due from the CVA 
dividend of �55,297.64 which was received on 25 October 2007 following the 
sale of one of the Group*s freehold properties. The success of the equity 
fundraising is subject to significant uncertainty. Should it be delayed there 
will be significant doubt as to the ability of the Group to continue as a 
going concern which may result in the Group being unable to realise its 
assets and discharge its liabilities in the normal course of business.

On the basis of the cash flow information, which is dependent on the success
of the equity fundraising, the Directors have formed a judgement that it
is appropriate to prepare the financial statements on the going concern basis.
                                       

2 Publication of non-statutory accounts                                
                                                                       
  The financial information set out in this preliminary announcement   
  does not constitute statutory accounts as defined in Section 240 of  
  the Companies Act 1985.  The summarised consolidated balance sheet at
  30 April 2007 and the summarised consolidated profit and loss        
  account, summarised consolidated cashflow statement and associated   
  notes for the year then ended have been extracted from the Group's   
  2007 statutory financial statements upon which the auditors opinion  
  is unqualified and does not contain any statement under section 237  
  of the Companies Act 1985.                                           
  

3 Dividends                                                        
                                                                        
  No dividend is proposed for the year ended 30 April 2007.             
 

4 Loss per share   
                                                     
  The calculation of the basic loss per share is based on the loss on  
  ordinary activities after tax and minority interests and on the      
  weighted average number of shares in issue during the period.  The   
  impact of share options is anti dilutive.  The loss and weighted     
  average number of shares used in the calculations are set out below: 
 
                                                  Weighted          
                                                   average     Loss Per        
                                    Loss         number of        share       
                                       �            shares      (pence)
  Basic loss per share:                                                
                                                                       
  Year ended 30 April 2007     (359,227)        36,500,000       (0.98)
                                                                       
  Year ended 30 April 2006   (1,214,757)        24,089,041       (5.04)
                                                                       
                            ------------      ------------ ------------
  

5 Reconciliation of movements in equity                                
  shareholders' funds                                                  
                                                                       
                                                      Year         Year
                                                     ended        ended
                                                  30 April     30 April
                                                      2007         2006
                                                         �            �
                                                                       
  Loss for the year                              (359,227)  (1,214,757)
                                                                       
  Share subscription                                     -      300,000
                                                                       
  Share subscription costs                               -      (8,000)
                                                                       
                                              ------------ ------------
                                                                       
  Net reduction in shareholders' funds           (359,227)    (922,757)
                                                                       
                                                                       
  Shareholders' funds brought forward               66,394      989,151
                                                                       
                                              ------------ ------------
                                                                       
  Shareholders' funds at the end of the          (292,833)       66,394
  period                                                               
                                                                       
                                              ------------ ------------


6 Reconciliation of operating loss with net                            
  cash flow from operating activities                                  
                                                                       
                                                      Year         Year
                                                     ended        ended
                                                  30 April     30 April
                                                      2007         2006
                                                         �            �
 
  Operating loss                                 (218,580)    (996,847)
                                                                       
  Depreciation, amortisation and impairment        115,732      621,750
                                                                       
  Decrease in stocks                                12,780        1,819
                                                                       
  (Increase)/decrease in debtors                  (11,455)      497,939
                                                                       
  Increase in creditors                            142,983       87,881
                                                                       
                                              ------------ ------------
                                                                       
  Net cash inflow from operating activities         41,460      212,542
                                                                       
                                              ------------ ------------


7 Reconciliation of net cash flow to                                   
  movement in net funds                                                
                                                                       
                                                      Year         Year
                                                     ended        ended
                                                  30 April     30 April
                                                      2007         2006
                                                         �            �
                                                                       
  Increase/(decrease) in cash for the year         128,644     (29,039)
                                                                       
  Repayments made on bank loans during the                             
  year                                                                 
                                                   368,934      271,563
                                                                       
  Increase in bank loans                          (22,500)            -
                                                                       
  New finance leases and hire purchase                                 
  contracts                                                            
                                                  (11,719)            -
                                                                       
  Repayment of finance lease and hire                9,542        9,183             
  purchase liabilities                                                 
                                                                       
                                              ------------ ------------
                                                                       
  Movement in net borrowings for the year          472,901      251,707
  (note 8)                                                             
                
                                                                       
  Net borrowings at the beginning of the       (2,042,556)  (2,294,263)
  year                                                                 
                                                                       
                                              ------------ ------------
                                                                       
  Net borrowings at the end of the year        (1,569,655)  (2,042,556)
                                                                       
                                              ------------ ------------
                                                                       
8 Analysis of changes                                                     
  in net funds                                                            
                                                                          
                              As at                     Other        As at
                              1 May    Cash Flow      Changes     30 April
                               2006                                   2007
                          (audited)                              (audited)
                                  �            �            �            �
                                                                          
                                                                          
                                                                          
  Cash at bank and in        31,317      141,355            -      172,672
  hand                                                                    
                                                                          
  Bank overdraft          (189,118)     (12,711)            -    (201,829)
                                                                          
                                    ------------                          
                                                                          
                                         128,644                          
                                                                          
                                                                          
                                                                          
  Bank loans            (1,771,862)      346,434            -  (1,425,428)
                                                                          
  Loan notes               (98,000)            -            -     (98,000)
                                                                          
  Finance leases and                                                      
  hire purchase                                                           
  contracts                (14,893)        9,542     (11,719)     (17,070)
                                                                          
                       ------------ ------------ ------------ ------------
                                                                          
                        (2,042,556)      484,620     (11,719)  (1,569,655)
                                                                          
                       ------------ ------------ ------------ ------------


9  Availability of Annual Report                                        
                                                                        
   The Annual Report will be posted to shareholders shortly and copies  
   will be available from the registered office of the Company, Meriden 
   House, 6 Great Cornbow, Halesowen, West Midlands B63 3AB.  The Annual
   Report is also available from today as a download from the Company's 
   website at www.innobox.co.uk.                                       
                                                                      
                                
10 Annual General Meeting          
                                                                        
   The Annual General Meeting of the Company will be held at Meriden    
   House, 6 Great Cornbow, Halesowen, West Midlands, B63 3AB at 9.00am  
   on Monday  3rd December 2007                                         
                                                                        

Enquiries:

Russell Stevens                    07860 562621                          
Chief Executive, Innobox Plc       russell@innobox.co.uk               
                                                                       
                    
Tim Feather / Matthew Johnston     0113 246 2610                       
Hanson Westhouse Limited           
                                                                       

 



END

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