Half-yearly Report
20 December 2007
Eurovestech Plc
("Eurovestech", "the Company" or "the Group")
Interim Results for the six months ended 30 September 2007
Chairman's Statement
I am pleased to report on our results for the six months to 30 September 2007
and outline our prospects at a very exciting time for our portfolio, which has
been augmented with new investments.
You will have noticed that the global financial outlook has become more
challenging in recent weeks. Whilst it seems likely that the credit crunch will
affect business confidence and spending patterns, it is encouraging that our
investee companies continue to make significant progress and are well placed to
withstand broader economic challenges. I can assure you that neither
Eurovestech, nor any of its portfolio companies, has any exposure whatsoever to
sub-prime lending or collateralised debt obligations. The Group has no debt and
at 30 September held net cash of £3.7 million.
Our primary purpose is to concentrate on the development and successful
move-to-market of specialist, growing technologies. We are particularly excited
about the prospects for Mist Technologies SA ("MIST") and its sound separation
technology, which is already generating considerable interest in the music and
film industries.
Our financial results since April 2006 have consolidated subsidiary
undertakings, which in our case are deemed to include ToLuna plc ("ToLuna") and
Knowledge Support Systems Limited ("KSS"). In the annual report for the year
to 31 March 2007, I pointed out that, as the reported results can be affected
by the timing of asset disposals, this might cause some volatility in the
reported figures. This has indeed proved to be the case and the six months to
30 September resulted in a profit before tax and minority interests of £0.3
million, compared to a profit of £3.6 million in the corresponding period,
which included a £2.7 million profit on the disposal of part of our holding in
ToLuna.
If our purpose is to concentrate on the development of companies with exciting
technologies, our focus continues to be on one thing: the building of asset
values of these companies for investors. In this context, the net asset value
of our investments is an important benchmark. This interim report includes the
balance sheet for the Company, as well as the Group. The Company balance sheet
reflects the market value of listed investments and shows shareholders' funds
of £52.2 million, compared to £47.3 million as at 30 September 2006 and £54.0
million as at 31 March 2007. The decline since our year-end reflects a small
fall in ToLuna's share price over the period.
As I stated in September 2007, following the demerger of the retail division of
KSS, it is expected that the directors will, by 31 March 2008, have much better
visibility on the performance and prospects of KSS and this may result in a
change to its valuation. The £52.2 million net asset value on 30 September 2007
includes our 100 per cent. holding in KSS at its September 2003 valuation of £
4.2 million.
Portfolio Review
ToLuna
ToLuna continues to deliver rapid growth and an impressive operating
performance. For the six months to 30 June 2007, its revenue increased 67 per
cent. to £6.0 million. Stripping out currency movements, underlying revenue
growth was 71 per cent. Profit before tax rose 53 per cent. to £1.4 million.
The interim dividend rose 48 per cent. to 0.37p per share.
ToLuna is achieving strong growth as the market research industry sources an
increasing proportion of its services online. Its online panels grew to 1.6
million members in 26 countries. It made significant advances with its
community strategy and is poised to benefit from its most recent significant
investment in technology, which, ToLuna believes, will drive the next stage of
its growth. Eurovestech owns 50.5 per cent. of ToLuna's issued share capital.
Knowledge Support Systems Limited
The demerger of KSS's retail division from its fuels division announced in July
2007 was completed in September 2007. The aim was to free each division to
pursue an independent strategy and generate additional value. In the latter
part of 2007, both divisions achieved very significant milestones. The fuel
division's co-operation agreement with SAP AG ("SAP"), the world's largest
business software company, announced in October 2007, was particularly
important and has the potential to substantially increase sales through the
supply of its RackPrice and PriceNet technologies into SAP's product offering.
Earlier this month, KSS Retail secured its largest contract win to date from
Raley's, a supermarket chain with over 130 stores in California and Nevada.
Eurovestech owns 100 per cent. of both divisions of KSS.
Magenta Corporation Limited ("Magenta")
Magenta is achieving growing recognition for its technology, which enables
customers to automate their scheduling and improve their resource allocation.
I am pleased to report on outstanding recent progress at Magenta. Important new
contracts have been agreed with a leading car rental company and with Enfora
Inc, a leading USA based provider of global positioning systems. In Europe, an
outsourcing contract with a value of £0.5 million has commenced with GIST Plc,
a large supply chain management group, with the first software deliveries now
being completed. Addison Lee, London's largest private taxi company, is now
using Magenta's unique scheduling software to schedule orders to be taken which
would previously not have been possible. Last week, EDS, one of the world's
largest IT service companies, accepted Magenta as a programme partner which
offers it the opportunity of taking part in projects on a worldwide basis.
Magenta's board expects to achieve operating profitability in the 12 months to
June 2008 and is targeting strong sales growth in 2008 with the recent opening
of sales capability in the USA and Germany. Full year revenues in 2007 are up
85 per cent. on 2006 and over five times greater than 2005.
Eurovestech owns 43.7 per cent. of Magenta's fully diluted issued share
capital.
Arkex Limited ("Arkex")
In June 2007, Arkex, which conducts geophysical surveys for oil and mineral
exploration, completed the largest ever multi-client GGI (gravity gradiometry
imaging) survey. In September 2007, Arkex acquired Ark Geophysics to form the
world's only independent service company offering both gravity gradiometry
imaging and conventional gravity magnetics. More recently it won its first
survey contract outside North America.
Eurovestech owns 4.3 per cent. of Arkex's fully diluted issued share capital.
Lognet Information Systems plc ("LogNet")
In July 2007, Eurovestech invested £2 million in LogNet, a specialist in
e-billing systems that allow customers to review and analyse their bills and to
manage accounts online. LogNet, whose customers include Cellcom Inc., Orange
Israel and Bezeq Corp, expanded its sales operations, which are now
headquartered in Paris, with offices in Spain and Germany. I am delighted to
report that LogNet is close to achieving profitability in 2007 and importantly
is forecasting a very significant increase in both sales and operating profits
in 2008.
Eurovestech owns 25.4 per cent. of LogNet's fully diluted issued share capital.
Mist Technologies SA ("MIST")
MIST's innovative sound separation technology allows music to be filtered into
individual tracks for voice and instruments and enables film soundtracks to be
remastered as high definition surround sound.
MIST is currently in discussions with a number of American film studios
regarding the re-mastering of both new and back catalogue films. However, MIST,
has not been limited to supporting professionals in the music industry. In the
coming weeks, MIST will allow its sound-separation technology to be used by
music fans on-line. Using MIST's flash player "SongCooker", users will be able
to create their own mixes, remixes, virtual duets and many other creations from
their favourite songs and artists and then share their creations with friends
via blogs and on the pages of social networking sites. This is a very exciting
development.
Eurovestech holds 41 per cent. of MIST's fully diluted share capital.
Charitable Donations
The Company has today issued a total of 500,000 new ordinary shares divided
equally between the following five charitable organisations: The UK Thailand
Children's Fund, Friends of Humanity Switzerland, Borneo Orangutan Survival UK,
Macmillan Cancer Support and The Alumni of The London School of Economics and
Political Science. Application has been made for these shares to be admitted to
AIM and it is expected that dealings will commence on 2 January 2008. Richard
Bernstein, Chief Executive of the Company, has paid the £5,000 nominal value to
facilitate their issue.
Let me put this in context. Since 2000, we have created and gifted 8.2 million
shares to 73 separate charitable organisations. These have a current stock
market value of £1.6 million. We are immensely proud of what Eurovestech has
been able to do in this area. We hope these policies and actions will encourage
other companies to support charities in this way.
Prospects
We remain focused on building the value of our portfolio. We are pleased to
have made new investments during 2007 which we believe are of high quality and
have significant potential.
We are aware that general economic conditions may become more challenging.
However, we are confident that the quality of our investments and the strength
of our balance sheet will leave us well positioned not only to meet any such
challenges but, as our experiences in the 2003 downturn proved, to allow us to
take advantage of specific potentially distressed opportunities.
Richard Grogan
Chairman
20 December 2007
Condensed consolidated income statement
For the six months ended 30 September 2007
Note Six months Six months Year ended
ended ended 31 March
2007
30 September 30 (audited)
2007
(unaudited) September
2006
(unaudited)
£'000 £'000 £'000
£ £ £
Revenue 9,201 8,119 15,868
Investment income 96 18 74
Gains and losses on financial (30) 2,001 6,372
assets (investments)
Operating expenses (9,003) (6,287) (16,267)
Operating profit 264 3,851 6,047
Finance income 16 85 263
Finance costs (29) (9) (9)
Profit before tax 251 3,927 6,301
Income tax expense (296) (318) (705)
(Loss)/Profit for the period (45) 3,609 5,596
after tax
Allocated as follows:
Minority interests 911 254 656
Equity holders of the parent (956) 3,355 4,940
(Loss)/Profit for the period (45) 3,609 5,596
after tax
(Loss)/earnings per share
Basic (loss)/earnings per share 3 (0.30) 1.07 1.57
(pence per share)
Diluted (loss)/earnings per share 3 (0.30) 1.06 1.55
(pence per share)
Condensed consolidated Balance Sheet
As at 30 September 2007
At 30 At 30 At 31
September September
2007 2006 March
(unaudited) (unaudited)
2007
(audited)
£'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 644 461 536
Goodwill 2,076 2,090 2,076
Intangible assets 2,157 966 1,386
Financial assets 6,818 3,654 4,104
Total non-current assets 11,695 7,171 8,102
Current assets
Trade and other receivables 6,383 5,933 4,957
Deferred tax asset 367 530 339
Other financial assets 2,225 2,067 9,701
Cash and cash equivalents 3,733 3,751 5,117
Total current assets 12,708 12,281 20,114
Liabilities
Trade and other payables 5,385 3,315 9,240
Total current liabilities 5,385 3,315 9,240
Net current assets 7,323 8,966 10,874
Deferred tax liability 94 - -
Total non-current liabilities 94 - -
Net assets 18,924 16,137 18,976
Equity
Issued capital 3,181 3,143 3,156
Share premium 13,885 13,855 13,855
Other reserve 317 155 189
Foreign exchange reserve 14 (242) 218
Retained earnings (2,808) (3,812) (1,852)
Capital and reserves attributable to 14,589 13,099 15,566
the equity holders of the parent
Minority interest 4,335 3,038 3,410
Total equity 18,924 16,137 18,976
Company Balance Sheet
As at 30 September 2007
At 30 At 30 At 31
September September
2007 2006 March
(unaudited) (unaudited)
2007
(audited)
£'000 £'000 £'000
Fixed assets
Tangible assets 8 15 11
Investments 48,700 43,617 47,348
48,708 43,632 47,359
Current assets
Debtors 1,438 1,231 1,394
Investments 2,225 2,067 9,701
Cash at bank and in hand 256 656 1,281
Total current assets 3,919 3,954 12,376
Creditors: amounts falling due within 402 278 5,757
one year
Net current assets 3,517 3,676 6,619
Net assets 52,225 47,308 53,978
Capital and reserves
Called up share capital 3,181 3,143 3,156
Share premium account 13,885 13,855 13,855
Revaluation reserve 38,929 37,008 40,291
Other reserve 173 - 173
Profit and loss reserve (3,943) (6,698) (3,497)
Shareholders' funds 52,225 47,308 53,978
Consolidated Cash Flow Statement
For the six months ended 30 September 2007
Six months Sixmonths Year ended
ended30 ended30 to
September September
31
March
2007 2006 2007
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Cash flows from operating activities
Profit for the period before taxation 251 3,927 6,301
Adjustments for:
Finance charges in the income 13 (76) (254)
statement
Depreciation of property, plant and 250 104 202
equipment
Amortisation of intangible assets 330 295 597
Impairment of financial assets - - 139
Investment income (96) (18) (74)
Share option charge 127 36 409
Profit/(Loss) on disposal of 55 (2,019) (6,511)
financial assets
Increase in trade and other (269) (2,505) (1,856)
receivables
(Decrease) /Increase in trade and (4,787) (3,587) 2,980
other payables
Net cash (used in) / generated from (4,126) (3,843) 1,933
operations
Finance charges (28) (9) (9)
Income tax (paid) / refunded (577) (380) 40
Net cash (used in) / generated by (4,731) (4,232) 1,964
operating activities
Cash flows from investing activities
Interest received 16 85 263
Payments for property plant and (358) (161) (351)
equipment
Payments for intangible assets (1,101) (525) (1,247)
Dividends received 96 18 74
Disposal of financial assets 57,999 10,819 28,287
Acquisition of financial assets (53,268) (6,809) (27,990)
Net cash generated by/(used in) 3,384 3,427 (964)
investing activities
Cash flows from financing activities
Loan drawn down 112 - -
Proceeds from issue of equity shares 74 8 21
Net cash generated by financing 186 8 21
activities
Net (decrease)/increase in cash and (1,161) (797) 1,021
cash equivalents
Foreign exchange differences (223) 469 17
Cash and cash equivalents at the 5,117 4,079 4,079
start of the period
Cash and cash equivalents at the end 3,733 3,751 5,117
of the period
1. Basis of Preparation
These interim condensed consolidated financial statements are for the six month
period ended 30 September 2007. They have been prepared in accordance with IAS
34 `Interim Financial Reporting' and the requirements of IFRS 1 `First time
Adoption of International Financial Reporting Standards' relevant to interim
reports, because they are part of the period covered by the Group's first IFRS
financial statements for the year ended 31 March 2008. They do not include all
the information required for full annual financial statements and should be
read in conjunction with the consolidated financial statements of the Group for
the year ended 31 March 2007, which were prepared under UK GAAP (in full). The
Company balance sheet continues to be prepared under UK GAAP.
The financial statements have been prepared under the historical cost
convention except for revaluation of certain financial instruments.
These condensed consolidated interim financial statements (the interim
financial statements) have been prepared in accordance with the accounting
policies set out below which are based on the recognition and measurement
principles of IFRS in issue as adopted by the European Union (EU) and are
effective at 30 September 2007 or are expected to be adopted and effective at
31 March 2008, our first annual reporting date at which we are required to use
IFRS accounting standards adopted by the EU.
Eurovestech Plc's consolidated financial statements were prepared in accordance
with United Kingdom Accounting Standards (United Kingdom Generally Accepted
Accounting Practice) until 31 March 2007. The date of transition to IFRS was 1
April 2006. The comparative figures in respect of 2006 have been restated to
reflect changes in accounting policies as a result of adoption of IFRS. The
disclosures required by IFRS 1 concerning the transition from UK GAAP to IFRS
are given in the reconciliation schedules presented and explained in note 4.
The accounting policies have been applied consistently throughout the Group for
the purposes of preparation of these condensed consolidated interim financial
statements.
2. Basis of Consolidation
Subsidiaries are all entities over which the Group has the power to govern the
financial and operating policies generally accompanying a shareholding of over
one half of the voting rights. The existence and effect of potential voting
rights that are currently exercisable or convertible are considered when
assessing whether the group controls another entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the group. They
are deconsolidated on the date control ceases.
The Group uses the purchase method of accounting for the acquisition of a
subsidiary. The cost of an acquisition is measured by the fair value of the
assets given, equity instruments issued and liabilities incurred or assumed at
the date of exchange, plus costs directly attributable to the acquisition.
Identifiable assets acquired and liabilities and contingent liabilities assumed
in a business combination are measured initially at their fair values at the
acquisition date irrespective of the extent of any minority interest. The
excess of the cost of acquisition over the fair value of the Group's share of
the identifiable net assets acquired is recorded as goodwill. If the cost of
the acquisition is less than the fair value of the net assets of the subsidiary
acquired the difference is recognised directly in the income statement.
In accordance with IFRS 3 Business Combinations an intangible asset acquired in
a business combination is deemed to have a cost to the Group of its fair value
at the acquisition date. The fair value of the intangible asset reflects market
expectations about the probability that the future economic benefits embodied
in the asset will flow to the Group. Where an intangible asset might be
separable, but only together with a related tangible or intangible asset, the
group of assets is recognised as a single asset separable from goodwill where
the individual fair values of the assets in the Group are not reliably
measurable. Where the individual fair values of the complementary assets are
reliably measurable, the Group recognises them as a single asset provided the
individual assets have similar useful lives.
Inter-company transactions, balances and unrealised gains and losses on
transactions between group companies are eliminated.
3. Loss per share
Six months Six months Year ended to
ended 30 ended 30
September 31
September
March
2007 2006 2007
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
(Loss)/Profit for the period (956) 3,355 4,940
attributable to equity
shareholders
(Loss)/Earnings per share
Basic (loss)/earnings per share (0.30) 1.07 1.57
(pence per share)
Diluted (loss)/earnings per share (0.30)* 1.06 1.55
(pence per share)
Shares Shares Shares
Issued ordinary shares at start 315,622,801 313,522,801 313,522,801
of the period
Ordinary shares issued in the 2,500,000 800,000 2,100,000
period
Issued ordinary shares at end of 318,122,801 314,322,801 315,622,801
the period
Weighted average number of shares 316,633,730 313,868,156 314,210,198
in issue for the period.
Dilutive effect of options in - 1,382,438 4,285,826
issue
Weighted average number of shares - 315,250,594 318,496,024
for the purposes of diluted
earnings per share.
*The diluted loss per share does not differ from the basic loss per share as
the exercise of share options would have the effect of reducing the loss per
share and is therefore not dilutive under the terms of IAS 33.
4. Explanation of transition to IFRS
As stated in the Basis of Preparation these are the Group's first condensed
consolidated interim financial statements for part of the period covered by the
first IFRS annual consolidated financial statements to be prepared in
accordance with IFRS.
IFRS permits Groups adopting IFRS for the first time to take certain exemptions
from the full requirements of IFRS in the transition period. These interim
financial statements have been prepared on the basis of taking the following
exemptions:
IFRS 3 `Business combinations'
Business combinations that occurred before the opening IFRS balance sheet date
are exempt from the application of the standard.
IAS 21 `The effects of changes in foreign exchange rates'
Cumulative translation differences which exist at the time of the transition
can be transferred into the retained earnings and the foreign exchange reserve
therefore shows only differences arising after transition (IFRS 1 `First time
adoption of IFRS').
An explanation of how the transition from UK GAAP to IFRS has affected the
Group's financial position, financial performance and cash flows is set out
below.
IFRS 2 `Share based payments'
Deferred tax is not provided for on the charge for share based payments under
UK GAAP. However, under IFRS the requirement that all temporary differences are
recognised means that a deferred tax asset must be created as long as there is
prospect of profits against which the asset may be offset. The asset is created
here on the share based payments charge.
IFRS 3 `Business combinations'
By claiming the exemption from applying the standard retrospectively the Group
will stop amortising positive goodwill at the transition date and, instead, it
becomes the subject of regular impairment tests. Negative goodwill is not
recognised under IFRS and is credited to the income statement in the period in
which it occurs. Balances of negative goodwill held at the transition date are
credited to retained earnings.
IAS 21 `The effects of changes in foreign exchange rates'
Under UK GAAP the Group reported differences in exchange rates on consolidation
within the profit and loss reserve. Under IFRS the Group has claimed the
exemption from retrospective application of IAS 21 and is now required to show
all post transition differences on consolidation as a separate item within
equity.
IAS 38 `Intangible assets'
Computer software is capitalised as a tangible asset together with the hardware
under UK GAAP, however, under IFRS a judgement is required as to whether the
software is separate from the computer and its immediate operating system. If
so it must be regarded as a stand alone asset and recognised as an intangible
asset.
Reconciliation of equity as at 1 April 2006
UK GAAP IFRS 2 IFRS 3 IAS 38 IFRS
£'000 £'000 £'000 £'000 £'000
Assets
Non-current assets
Property, plant and 485 (81) 404
equipment
Negative goodwill (1,975) 1,975 -
Goodwill 2,090 2,090
Intangible assets 655 81 736
Financial assets 3,767 3,767
Total non-current assets 5,022 1,975 6,997
Current assets
Trade and other receivables 2,997 2,997
Deferred tax asset 487 43 530
Other financial assets 3,529 3,529
Cash and cash equivalents 4,079 4,079
Total current assets 11,092 43 11,135
Liabilities
Current liabilities
Trade and other payables 5,820 5,820
Total current liabilities 5,820 5,820
Net current assets 5,272 43 5,315
Net assets 10,294 43 1,975 12,312
Equity
Issued capital 3,135 3,135
Share premium 13,855 13,855
Other reserve 155 155
Foreign exchange reserve - -
Retained earnings (9,185) 43 1,975 (7,167)
Capital and reserves 7,960 43 1,975 9,978
attributable to the equity
holders of the parent
Minority interest 2,334 2,334
Total equity 10,294 43 1,975 12,312
Reconciliation of equity as at 30 September 2006
UK GAAP UK UK IFRS IFRS IAS IAS 21 IFRS
38
GAAP GAAP 2 3
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
As Adjustment Adjusted
originally
stated
Assets
Non-current
assets
Property, 536 536 (75) 461
plant and
equipment
Negative (1,536) (1,536) 1,536 -
goodwill
Goodwill 2,127 (109) 2,018 72 2,090
Intangible 891 891 75 966
assets
Financial 3,654 3,654 3,654
assets
Total 5,672 (109) 5,563 1,608 7,171
non-current
assets
Current
assets
Trade and 5,933 5,933 5,933
other
receivables
Deferred tax 487 487 43 530
asset
Other 2,067 2,067 2,067
financial
assets
Cash and cash 3,751 3,751 3,751
equivalents
Total current 12,238 12,238 43 12,281
assets
Liabilities
Current
liabilities
Trade and 3,315 3,315 3,315
other
payables
Total current 3,315 3,315 3,315
liabilities
Net current 8,923 8,923 43 8,966
assets
Net assets 14,595 (109) 14,486 43 1,608 16,137
Equity
Issued 3,143 3,143 3,143
capital
Share premium 13,855 13,855 13,855
Other reserve 155 155 155
Foreign - - (242) (242)
exchange
reserve
Retained (5,596) (109) (5,705) 43 1,608 242 (3,812)
earnings
Capital and 11,557 (109) 11,448 43 1,608 - - 13,099
reserves
attributable
to the equity
holders of
the parent
Minority 3,038 3,038 3,038
interest
Total equity 14,595 (109) 14,486 43 1,608 16,137
The adjustment under UK GAAP in the interim accounts for the six months ended
30 September 2006 is the result of a timing difference on the disposal of
goodwill which is corrected during the second half of the year.
Reconciliation of equity as at 31 March 2007
UK GAAP IFRS 2 IFRS 3 IAS 38 IAS 21 IFRS
£'000 £'000 £'000 £'000 £'000 £'000
Assets
Non-current assets
Property, plant and 605 (69) 536
equipment
Negative goodwill (1,097) 1,097 -
Goodwill 1,837 239 2,076
Intangible assets 1,317 69 1,386
Financial assets 4,104 4,104
Total non-current assets 6,766 1,336 8,102
Current assets
Trade and other 4,957 4,957
receivables
Deferred tax asset 286 53 339
Other financial assets 9,701 9,701
Cash and cash 5,117 5,117
equivalents
Total current assets 20,061 53 20,114
Liabilities
Current liabilities
Trade and other payables 9,240 9,240
Total current 9,240 9,240
liabilities
Net current assets 10,821 53 10,874
Net assets 17,587 53 1,336 18,976
Equity
Issued capital 3,156 3,156
Share premium 13,855 13,855
Other reserve 407 (218) 189
Foreign exchange reserve - 218 218
Retained earnings (3,241) 53 1,336 (1,852)
Capital and reserves 14,177 53 1,336 - - 15,566
attributable to the
equity holders of the
parent
Minority interest 3,410 3,410
Total equity 17,587 53 1,336 - - 18,976
Reconciliation of profit for the six months ended 30 September 2006
UK UK GAAP UK GAAP IFRS 3 IFRS
GAAP
£'000 £'000 £'000 £'000 £'000
As Adjustment Adjusted
originally
stated
Revenue 8,119 8,119 8,119
Investment income 18 18 18
Gains and losses on 2,001 2,001 2,001
financial assets
(investments)
Operating expenses (6,548) 737 (5,811) (476) (6,287)
Operating profit 3,590 737 4,327 (476) 3,851
Finance income 85 85 85
Finance costs (9) (9) (9)
Profit for the period 3,666 737 4,403 (476) 3,927
before taxation
Income tax expense (318) (318) (318)
Profit for the period 3,348 737 4,085 (476) 3,609
after tax
Allocated as follows:
Minority interests 254 254 254
Equity holders of the 3,094 737 3,831 (476) 3,355
parent
Profit for the period 3,348 737 4,085 (476) 3,609
after tax
Reconciliation of profit for the year ended 31 March 2007
UK GAAP IFRS 2 IFRS 3 IFRS
£'000 £'000 £'000 £'000
Revenue 15,868 15,868
Investment income 74 74
Gains and losses on financial 6,372 6,372
assets (investments)
Operating expenses (15,628) (639) (16,267)
Operating profit 6,686 (639) 6,047
Finance income 263 263
Finance expense (9) (9)
Profit for the period before 6,940 (639) 6,301
taxation
Income tax expense (715) 10 (705)
Profit for the period after tax 6,225 10 (639) 5,596
Allocated as follows:
Minority interests 656 656
Equity holders of the parent 5,569 10 (639) 4,940
Profit for the period after tax 6,225 10 (639) 5,596
Cash flow statement
As a result of the transition to IFRS the following changes have resulted in
the cash flow statement.
The definition of cash under UK GAAP is narrower than under IAS 7 `Cash flow
statements'. Under IFRS highly liquid investments, readily convertible to a
known amount of cash and with an insignificant risk of a change in value are
regarded as cash equivalents.
Under UK GAAP payments to acquire property, plant and equipment were classified
as part of `Capital expenditure and financial investment' whilst under IFRS
such payments have been reclassified as part of `Investing activities'.
There are no other material differences between the cash flow statement
presented under IFRS and that presented under UK GAAP.
5. Dividends
No dividend is proposed for the six months ended 30 September 2007.
6. Copies of the Interim Financial Statements
Copies of the interim financial statements are available on request from the
Company's registered office at 29 Curzon Street, London W1J 7TL and from the
Company's website www.eurovestech.com.
Further Enquiries
Eurovestech plc Telephone
Richard Bernstein, Chief Executive 020 7491 0770
John East & Partners Limited 020 7628 2200
David Worlidge
Simon Clements
Friday, 22nd November 2024
COMPANIES COVERED:
Latest directors dealings
- 16 hours ago Cerillion
- 18 hours ago Associated British Foods
- 18 hours ago B&M European Value Retail S.A. (DI)
- 18 hours ago B&M European Value Retail S.A. (DI)
- 18 hours ago Haleon