Interim Results

Date : 09/26/2007 @ 8:04AM
Source : UK Regulatory (RNS & others)
Stock : Newfound (NFND)
Quote : 0.85  0.0 (0.00%) @ 1:00AM
Newfound share price Chart

Interim Results

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

IR PUUGWBUPMPGA

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