Interim Results

RNS Number : 3987T

Camco International Ltd

28 September 2010

 



Camco International - Interim Results 

Camco International Ltd

28 September 2010

Camco International Limited

Interim Financial Report

Camco International Limited ('Camco', AIM : CAO), a global developer of emission reductions and clean energy projects,is pleased to provide its interim financial report for the six months to 30 June 2010. 

FINANCIAL HIGHLIGHTS as at 30 June 2010

·      Revenue more than doubled to €11.0 million (30 June 2009: €5.0 million) mainly due to increased carbon revenue of €4.0 million

·      Camco achieved profitability in the first half of 2010, showing a continuing profit of €0.6 million (30 June 2009: loss of €18.2 million)

·      Profit for the Advisory business of €0.4 million (30 June 2009: a loss of €1.3 million)

·      Tight control of costs reduced administrative expenses by €1.0 million (10%) to €8.7 million

·      The results from continuing operations include a one off tax credit of €1.0 million

·      Solid balance sheet with net cash of €17.8 million at 30 June 2010 (30 June 2009: €18.3 million)

·      EPS from continuing operations of 0.33 euro cents

OPERATIONAL HIGHLIGHTS as at 30 June 2010

·      Two large Camco projects approved by Russian government as part of its first UN Joint implementation carbon credit tender

·      Teamed up with a US investor to finance an initial project pipeline of €43 million into six agricultural emissions-to-energy projects

·      Carbon project development activities delivered a significant increase in issued Certified Emission Reductions (CERs) with 4.3 million tonnes of CO2e emissions (30 June 2009: 1.0 million tonnes)

·      New advisory contract wins in the period contribute to €4.7 million in revenue (30 June 2009: €3.1million)

POST BALANCE SHEET EVENTS

·      In July, Camco acquired a portfolio of emission reduction projects in the US from Greenhouse Gas Services for €0.5 million

·      In September, Camco signed an agreement withKhazanah Nasional Berhad to establish a developer of emission reduction and clean energy projects in South East Asia with initial capital of €22.4 million.

Scott McGregor, Camco Chief Executive, said "this is an excellent result for the company making tangible progress on all parts of the business and achieving good profitability in the first half of the year. I expect that we will continue this progress through the remainder of the year."

Enquiries:

Camco	[phone]
Scott McGregor, Chief Executive Officer Yariv Cohen, Chief Carbon Officer Andrew Twynam, Finance Director
KBC Peel Hunt Ltd (Nominated Adviser and Broker)	[phone]
Jonathan Marren
David Anderson
M:Communications (Public Relations Advisor)
Charlotte Kirkham	[phone]
Elly Williamson	[phone]
Patrick d'Ancona	[phone]

Financial Review

The improved performance seen in the second half of 2009 has continued into the first half of 2010 with the Company making a net profit after tax from continuing operations for the 6 months to 30 June 2010 of €0.6 million (a net profit of €0.1 million including the loss of €0.5 million on discontinued operations). This compares to a loss of €18.2 million for the six months to 30 June 2009 which included an impairment of €11.7 million relating to the write down of the goodwill associated with the acquisition of ESD Partners. Total revenue were €11.0 million compared with €5.0 million for the same period last year. 

The Carbon business generated revenue of €5.8 million and a segment profit of €1.0 million for the period. This represents a significant increase over the same period last year (€1.8 million revenue and €3.0 million loss) and is due to our continuing success in de-risking of our portfolio in respect of both production and price risk. 

Carbon costs of €3.5 million were €0.4 million (10.1%) lower than the same period in the prior year reflecting cost actions taken during 2009. This was despite the weakening of the Euro against the main currencies of our cost base (Sterling, Chinese RMB and US$) which had an adverse impact on the cost base of approximately 5.2% versus H2 2009 and 2.7% compared to 30 June 2009.

The Advisory business delivered €4.7 million in external revenues and a segment profit of €0.4 million compared to a loss of €1.3 million and €0.3 million for the first and second half of 2009 respectively. Costs were reduced by €1.1 million (31.7%) compared to the same period last year, reflecting actions taken in the second half of 2009 to restructure the business and return it to profitability.  

The Investments business incurred a net loss of €0.2 million whilst still in the early stages of its business cycle. Notwithstanding, the business expanded its activity in the US raising equity for investments in agricultural waste to energy projects Camco has also formed a consortium AgPower Group LLC to build and operate renewable energy project in the agricultural sector. Camco has earned a management fee of €0.2million for running the Ag Power Group LLC projects operationally. Camco continues to develop its investment business in the US, China and South East Asia.

As at 30 June 2010 the Company had a net cash balance of €17.8 million (30 June 2009: €18.3 million) and no significant debt.

The Directors consider the Company to be in a strong financial position from which to continue its growth and market development strategy.

Segment Operational Review as at 30 June 2010 

Carbon Project Development

The period saw Camco's in specie portfolio remain solid. The portfolio has continued to mature with projects progressing through the regulatory pipeline as expected leading to increased revenue as outlined in the Financial Review.  Carbon Project Development activities delivered a significant increase of 4.3 million tonnes in issued CERs, mainly from new projects passing the important milestone of first issuance.

Clean Energy Project Development and Investment

Camco has continued to grow its project development and investment operations in North America.  Camco has teamed up with a US investor to finance an initial project pipeline of €43 million into six agricultural emissions-to-energy projects. Camco has incorporated and is leading a consortium, AgPower Group LLC ('AgPower'), through which Camco will deploy this capital to build and operate emissions-to-energy projects in the agricultural sector.

Energy and Carbon Advisory

Camco's Advisory business had a very successful first half in 2010 with the division moving firmly into profit. There was particularly strong demand for consultancy support in the UK from both public and private sector clients in the run up to the introduction of the Carbon Reduction Commitment Energy Efficiency Scheme and Feed-in Tariffs. In addition, demand for Camco's services in Africa has increased.

In May 2010, the decision was taken to close the operations of the China advisory business. 

Outlook

The overall business continues to trade well with a strong profit performance in Carbon & Advisory and good cost control across the board. Through the remainder of 2010, further Carbon projects are expected to pass important hurdles in the regulatory process further reducing the risk of the portfolio and providing the opportunity for the Company to commercialise part of the portfolio should the right market conditions be met.

The continued profitability of the Carbon business for the year to 31 December 2010 will be driven twofold; as we pass the important hurdles the delivery of our portfolio becomes more certain leading to additional accrued revenue; the certainty and quality of our projects means we can obtain higher prices through structured or other sales leading to more value for the business. The company has made considerable progress preparing portfolio structures and will only execute if the right terms and market conditions are met. 

For the Advisory business, the remainder of 2010 is likely to continue to perform well with continued high utilisation rates and strong cost control. We expect the business to develop and expand into new areas mainly in the UK and Africa.

Consolidated Statement of Financial Position

 at 30 June 2010

		30 June 2010 (unaudited)	30 June 2009 (unaudited)	31 December 2009  (audited)
		€'000	€'000	€'000
Non-current assets
Property, plant and equipment		707	1,090	728
Goodwill on acquisition		1,959	2,459	2,149
Other intangible assets		778	5,043	789
Investments in equity-accounted investees		1,767	-	1,146
Other investments		250	233	225
Deferred tax assets		241	334	216
		5,702	9,159	5,253
Current assets
Work in progress - carbon development contracts		7,794	8,722	7,321
Prepayments and accrued income		37,251	28,339	37,096
Trade and other receivables		5,039	4,589	4,640
Cash and cash equivalents		18,397	18,578	28,463
		68,481	60,228	77,520
Total assets		74,183	69,387	82,773
Current liabilities
Loans and borrowings		(642)	(771)	(236)
Trade and other payables		(23,305)	(24,631)	(31,474)
Tax payable		(40)	(1,388)	(1,123)
Deferred consideration		-	(93)	(27)
		(23,987)	(26,883)	(32,860)
Non-current liabilities
Loans and borrowings		-	-	(5)
Deferred consideration		-	-	(32)
Deferred tax liabilities		(174)	(268)	(221)
		(174)	(268)	(258)
Total liabilities		(24,161)	(27,151)	(33,118)
Net assets		50,022	42,236	49,655

Consolidated Statement of Financial Position (continued)

 at 30 June 2010

		30 June 2010 (unaudited)		30 June 2009 (unaudited)		31 December 2009 (audited)
		€'000		€'000		€'000
Equity attributable to equity holders of the parent
Share capital		1,763		1,730		1,730
Share premium		72,798		72,277		72,277
Share-based payment reserve		1,205		1,886		1,856
Retained earnings		(25,578)		(33,258)		(25,711)
Translation reserve		1		31		(106)
Own shares		(167)		(567)		(391)
Non-controlling interest		-		137		-
Total equity		50,022		42,236		49,655

Consolidated Statement of Comprehensive Income

for the 6 months to 30 June 2010

		6 months to 30 June 2010	6 months to 30 June 2009	12 months to 31 December 2009
Continuing operations	Note	(unaudited) €'000	(unaudited) €'000	(audited) €'000
Revenue		10,959	4,967	27,774
Cost of sales		(3,221)	(1,768)	(7,097)
Gross profit		7,738	3,199	20,677
Other income - net gain on disposal of investment		-	-	310
Other income - negative goodwill arising on acquisition		-	303	303
Administrative expenses		(8,682)	(9,682)	(18,890)
Restructuring charges		(82)	(199)	(432)
Impairment of goodwill on acquisition		-	(11,690)	(11,973)
Results from operating activities		(1,026)	(18,069)	(10,005)
Financial income		1,450	716	1,228
Financial expenses		(820)	(765)	(1,948)
Net financing income/(expense)		630	(49)	(720)
Loss before tax		(396)	(18,118)	(10,725)
Income tax		978	(55)	(130)
Profit/(loss) from continuing operations		582	(18,173)	(10,855)
Discontinued operation
Loss from discontinued operation (net of income tax)	1	(449)	(78)	(60)
Profit/(loss) for the period		133	(18,251)	(10,915)
Other comprehensive income
Exchange differences on translation of foreign operations		107	457	353
Total comprehensive income for the period		240	(17,794)	(10,562)
Profit/(loss) attributable to:
Equity holders of the parent		133	(18,286)	(10,597)
Non-controlling interest		-	35	(318)
Profit/(loss) for the period		133	(18,251)	(10,915)
Total comprehensive income attributable to:
Equity holders of the parent		240	(17,829)	(10,277)
Non-controlling interest		-	35	(285)
Total comprehensive income for the period		240	(17,794)	(10,562)
Basic profit/(loss) per share in € cents
From continuing operations	2	0.33	(10.79)	(6.40)
From continuing and discontinued operations	2	0.08	(10.84)	(6.43)
Diluted profit/(loss) per share in € cents
From continuing operations	2	0.33	(10.79)	(6.34)
From continuing and discontinued operations	2	0.08	(10.84)	(6.38)

Consolidated Statement of Changes in Equity

for the 6 months to 30 June 2010

	Share capital	Share premium	Share-based payment reserve	Retained earnings		Translation reserve		Own shares	Total parent equity	Non-controlling interest		Total equity
	€'000	€'000	€'000	€'000	€'000		€'000		€'000		€'000	€'000
Balance at 1 January 2010	1,730	72,277	1,856	(25,711)	(106)		(391)		49,655		-	49,655
Total comprehensive income for the period
Profit/(loss) for the period	-	-	-	133	-		-		133		-	133
Other comprehensive income
Foreign currency translation differences	-	-	-	-	107		-		107		-	107
Total comprehensive income for the period	-	-	-	133	107		-		240		-	240
Transactions with owners, recorded directly in equity Contributions by and distributions to owners
Share-based payments	-	-	127	-	-		-		127		-	127
Issuance of shares	33	521	-	-	-		(554)		-		-	-
Own shares	-	-	(778)	-	-		778		-		-	-
Total contributions by and distributions to owners	33	521	(651)	-	-		224		127		-	127
Changes in ownership interests in subsidiaries that do not result in a loss of control
Acquisition & settlement  of non-controlling interest	-	-	-	-	-		-		-		-	-
Total changes in ownership interest in subsidiaries	-	-	-	-	-		-		-		-	-
Total transaction with owners	33	521	(651)	-	-		224		127		-	127
Balance at 30 June 2010	1,763	72,798	1,205	(25,578)	1		(167)		50,022		-	50,022

Consolidated Statement of Changes in Equity (continued)

for the 6 months to 30 June 2009

	Share capital	Share premium	Share based payment reserve	Retained earnings	Translation reserve	Own shares	Total parent equity	Non-controlling interest	Total equity
	€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000
Balance at 1 January 2009	1,675	71,619	2,751	(14,972)	(426)	(1,170)	59,477	102	59,579
Total comprehensive income for the period
(Loss)/profit for the period	-	-	-	(18,286)	-	-	(18,286)	35	(18,251)
Other comprehensive income/ expense
Foreign currency translation differences	-	-	-	-	457	-	457	-	457
Total comprehensive income for the period	-	-	-	(18,286)	457	-	(17,829)	35	(17,794)
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Share-based payments	-	-	155	-	-	-	155	-	155
Issuance of shares	55	658	(417)	-	-	-	296	-	296
Own shares	-	-	(603)	-	-	603	-	-	-
Total contributions by and distributions to owners	55	658	(865)	-	-	603	451	-	451
Changes in ownership interests in subsidiaries that do not result in a loss of control
Acquisition& settlement of non-controlling interest	-	-	-	-	-	-	-	-	-
Total changes in ownership interest in subsidiaries	-	-	-	-	-	-	-	-	-
Total transaction with owners	55	658	(865)	-	-	603	451	-	451
Balance at 30 June 2009	1,730	72,277	1,886	(33,258)	31	(567)	42,099	137	42,236

 

Consolidated Statement of Changes in Equity (continued)

for the year ended 31 December 2009

	Share capital	Share premium	Share-based    payment reserve	Retained earnings	Translation reserve	Own shares	Total parent equity	Non-controlling interest	Total equity
	€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000
Balance at 1 January 2009	1,675	71,619	2,751	(14,972)	(426)	(1,170)	59,477	102	59,579
Total comprehensive income for the year
Loss for the year	-	-	-	(10,597)	-	-	(10,597)	(318)	(10,915)
Other comprehensive income
Foreign currency  translation differences	-	-	-	-	320	-	320	33	353
Total comprehensive income for the year	-	-	-	(10,597)	320	-	(10,277)	(285)	(10,562)
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Share-based payments	-	-	296	41	-	-	337	-	337
Issuance of shares	55	658	-	-	-	(412)	301	-	301
Own shares	-	-	(1,191)	-	-	1,191	-	-	-
Total contributions by and distributions to owners	55	658	(895)	41	-	779	638	-	638
Changes in ownership interests in subsidiaries that do not result in a loss of control
Acquisition of non-controlling interest	-	-	-	(183)	-	-	(183)	183	-
Total changes in ownership interest in subsidiaries	-	-	-	(183)	-	-	(183)	183	-
Total transaction with owners	55	658	(895)	(142)	-	779	455	183	638
Balance at 31 December 2009	1,730	72,277	1,856	(25,711)	(106)	(391)	49,655	-	49,655

Consolidated Statement of Cash Flow

for the 6 months to 30 June 2010

Continuing and discontinued operations		6 months to	6 months to	12 months to
		30 June  2010	30 June 2009	31 December 2009
		(unaudited)	(unaudited)	(audited)
		€'000	€'000	€'000
Cash flows from operating activities
Revenue, payments on account & deferred income received		15,125	5,448	26,162
Cash paid to suppliers		(20,463)	(7,304)	(10,750)
Cash paid to employees		(5,875)	(5,640)	(11,861)
Interest received		47	98	126
Interest paid		(10)	(11)	(74)
Income tax paid		(141)	(155)	(657)
Net cash from operating activities		(11,317)	(7,564)	2,946
Cash flows from investing activities
Proceeds from sales of investments		1,303	-	2
Payment for acquisition of joint venture		(578)	-	-
Settlement of deferred consideration		-	(163)	(163)
Acquisition of property, plant & equipment		(176)	(69)	(127)
Net cash from investing activities		549	(232)	(288)
Cash flows from financing activities
Proceeds from the issue of share capital		33	15	55
Proceeds from new loan		-	-	17
Repayment of borrowings		(18)	(10)	(312)
Net borrowing by subsidiaries		-	-	-
Payment of finance lease liabilities		(79)	(130)	(200)
Net cash from financing activities		(64)	(125)	(440)
Net increase/(decrease) in cash and cash equivalents		(10,832)	(7,921)	2,218
Cash and cash equivalents at 1 January		28,324	26,155	26,155
Effect of exchange rate fluctuations on cash held		339	26	(49)
Cash and cash equivalents held		17,831	18,260	28,324

Notes

Significant accounting policies

Camco International Limited (the "Company") is a public company incorporated in Jersey under Companies (Jersey) Law 1991.  The address of its registered office is Channel House, Green Street, St Helier, Jersey JE2 4UH.  The consolidated interim financial report of the Company for the period from 1 January 2010 to 30 June 2010 comprises of the Company and its subsidiaries (together the "Group").

Basis of preparation

The annual financial statements of the Group for the year ended 31 December 2009 have been prepared in accordance with IFRSs as adopted by the EU ("Adopted IFRSs").  The interim set of financial statements included in this half-yearly report has been prepared in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU. The interim set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the company's published consolidated financial statements for the year ended 31 December 2009.  They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2009.

This interim financial information has been prepared on the historical cost basis. The accounting policies applied are consistent with those adopted and disclosed in the annual financial statements for the period ended 31 December 2009.  The accounting policies have been consistently applied across all Group entities for the purpose of producing this interim financial report.

The financial information included in this document does not comprise of statutory accounts within the meaning of Companies (Jersey) Law 1991.  The comparative figures for the financial year ended 31 December 2009 are not the company's statutory accounts for that financial year within the meaning of Companies (Jersey) Law 1991. Those accounts have been reported on by the company's auditors and delivered to the Jersey Financial Services Commission. The report of the auditors was unqualified.

Estimates

The preparation of the interim financial report in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.  The estimates and associated assumptions are based on historical experience and other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.  Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Discontinued Operation

A discontinued operation is a component of the Group's business that represents a separate major line of business or geographical area of operations that has been disposed of or is held for sale, or is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier. When an operation is classified as a discontinued operation, the comparative statement of comprehensive income is re-presented as if the operation had been discontinued from the start of the comparative period.

1   Segmental Reporting

Reporting segments

The Group comprises of the following main reporting segments:

1.    Carbon: The Carbon Project Development business has created one of the largest emission reductions portfolios and has structured groundbreaking and innovative arrangements for the sale and delivery of emission reductions to compliance and voluntary buyers.

2.    Advisory: The Energy and Carbon Advisory teams provide strategic, commercial and technical expertise accrued over two decades to deliver low carbon energy and sustainable development solutions.

3.    Investments: The Clean Energy Project Development and Investment teams collaborate with industry, project developers, equipment providers and investor groups to create emissions-to-energy projects and maximise sustainable energy production across a range of industries; including agricultural methane, industrial energy efficiency, coal mine methane, municipal solid waste, biomass and landfill gas.

Inter segment transactions are carried out at arms length.

	Carbon	Advisory	Investments	Eliminations	Total
	6 months to	6 months to	6 months to	6 months to	6 months to
	30 June 2010	30 June 2010	30 June 2010	30 June 2010	30 June 2010
	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	€'000	€'000	€'000	€'000	€'000
Revenue	5,837	4,730	392	-	10,959
Inter-segment revenue	-	768	-	(768)	-
Total segment revenue	5,837	5,498	392	(768)	10,959
Segment gross profit	4,511	2,866	361	-	7,738
Segment result	1,014	402	(209)	-	1,207
Unallocated expenses					(2,024)
Share-based payments					(127)
Restructuring charges					(82)
Results from operating activities					(1,026)
Net finance income					630
Taxation					978
Profit for the period  from continuing operations					582
Discontinued operation					(449)
Profit for the period					133

	Carbon	Advisory	Investments	Eliminations	Total
	6 months to	6 months to	6 months to	6 months to	6 months to
	30 June  2009	30 June  2009	30 June 2009	30 June 2009	30 June 2009
	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	€'000	€'000	€'000	€'000	€'000
Revenue	1,789	3,116	62	-	4,967
Inter-segment revenue	-	404	-	(404)	-
Total segment revenue	1,789	3,520	62	(404)	4,967
Segment gross profit	888	2,259	52	-	3,199
Segment result	(3,002)	(1,348)	(510)	-	(4,860)
Unallocated expenses					(1,165)
Share-based payments					(155)
Restructuring charges					(199)
Impairment of goodwill on acquisition					(11,690)
Results from operating activities					(18,069)
Net finance expense					(49)
Taxation					(55)
Loss for the period from continuing operations					(18,173)
Discontinued operation					(78)
Loss for the period					(18,251)

	Carbon	Advisory	Investments	Eliminations	Total
	12 months to	12 months to	12 months to	12 months to	12 months to
	31 December 2009	31 December 2009	31 December 2009	31 December 2009	31 December 2009
	(audited)	(audited)	(audited)	(audited)	(audited)
	€'000	€'000	€'000	€'000	€'000
Revenue	21,470	6,093	211	-	27,774
Inter-segment revenue	-	818	-	(818)	-
Total segment revenue	21,470	6,911	211	(818)	27,774
Segment gross profit	15,821	4,670	186	-	20,677
Segment result	8,385	(1,658)	(773)	-	5,954
Unallocated expenses					(3,258)
Share-based payments					(296)
Restructuring charges					(432)
Impairment of goodwill on acquisition					(11,973)
Results from operating activities					(10,005)
Net finance expense					(720)
Taxation					(130)
Loss for the period from continuing operations					(10,855)
Discontinued operation					(60)
Loss for the period					(10,915)

Discontinued operation

In May 2010, the Group made the decision to close the operations of Camco Advisory Services (Beijing) Limited (formerly known as Sinosphere Beijing (WOFE) Ltd). This separate business unit was not classified as a discontinued operation as at 31 December 2009 and the comparative Consolidated Statement of Comprehensive Income has been represented to show the discontinued operation separately from continuing operations. The only material effect is the write down of goodwill associated with the business (€120,000).  The fixed assets of the business are being transferred to the China Carbon business (located in the same office) at net book value.  The working capital of the company is being wound down and any surplus cash will be returned to Group.

	30 June 2010	30 June 2009	31 December  2009
	€'000	€'000	€'000
	(unaudited)	(unaudited)	(audited)
Results of discontinued operation
Revenue	172	382	741
Expenses	(501)	(460)	(801)
Impairment of goodwill	(120)	-	-
Results before and after tax	(449)	(78)	(60)

2   Profit/(loss) per share

Profit/(loss) per share attributable to equity holders of the company is as follows;

	30 June 2010	30 June 2009	31 December 2009
	(unaudited)	(unaudited)	(audited)
	€ cents	€ cents	€ cents
	per share	per share	per share
Basic profit/(loss) per share
From continuing operations	0.33	(10.79)	(6.40)
From continuing and discontinued operation	0.08	(10.84)	(6.43)
Diluted profit/(loss) per share
From continuing operations	0.33	(10.79)	(6.34)
From continuing and discontinued operation	0.08	(10.84)	(6.38)
Profit/(loss) used in calculation of basic and diluted loss per share-no dilutive effects	€'000	€'000	€'000
From continuing operations	582	(18,173)	(10,855)
From continuing and discontinued operation	133	(18,251)	(10,915)
Weighted average number of shares used in calculation
Basic	173,955,140	168,353,359	169,634,966
Diluted	173,955,140	168,353,359	171,204,246

	30 June 2010	30 June 2009	31 December 2009
	(unaudited)	(unaudited)	(audited)
Weighted average number used in calculation-basic:	Number	Number	Number
Number in issue at start of period	173,007,585	167,509,965	167,509,965
Effect of own shares held	(4,141,139)	(3,032,592)	(4,000,619)
Effect of shares issued in the period	2,367,826	3,098,159	4,307,750
Effect of share options exercised	2,720,868	777,827	1,817,870
Weighted average of diluted shares at end of period	173,955,140	168,353,359	169,634,966
Weighted average number used in calculation-diluted:	Number	Number	Number
Number in issue at start of period	173,007,585	167,509,965	167,509,965
Effect of own shares held	(4,141,139)	(3,032,592)	(4,000,619)
Effect of shares issued in the period	2,367,826	3,098,159	4,307,750
Effect of share options exercised	2,720,868	777,827	1,817,870
Dilutive effect of share options granted	-	-	1,569,280
Weighted average of diluted shares at end of period	173,955,140	168,353,359	171,204,246

3   Post Balance Sheet Events

On 27 September 2010, Camco International Limited ("CIL") signed an agreement with Khazanah Nasional Berhad ("Khazanah") to establish a developer of emission reduction and clean energy projects in South East Asia.  Camco South East Asia Limited, a wholly owned subsidiary of the Company, issued 39.9% of the share capital to Khazanah in exchange for €11.0 million of cash. Camco contributed existing carbon contracts within the territories, brand and other intellectual property and cash of €3.8 million.

On the same day, Camco South East Asia Limited issued a convertible bond to Khazanah for €7.6 million, convertible to shares at any period over the next 3 years.  Camco Mauritius Limited ("CML") was issued a warrant over Camco South East Asia Limited shares amounting to €2.8 million, again exercisable at any period over the next 3 years.  If both instruments are fully exercised then the shareholdings would become 51% for CML and 49% for Khazanah.

 

END

 

 

IR LFFIVARIDFII