Interim Results

RNS Number : 7900X

Minoan Group PLC

30 June 2008

Interim Financial Statements

Minoan Group Plc ('Minoan or 'the Company'), the AIM-quoted leisure resort developer, presents its unaudited interim financial statements for the 12 months ended 31 March 2008

Chairman's Statement

Cavo Sidero (the 'Project')

At the beginning of May Minoan was advised that the hearing of the appeal lodged against the Greek Government's approval of its Environmental Impact Assessment ('EIA') in respect of the Project had been postponed. The new date for the hearing before a Plenary Session of the Greek Council of State is 7 November 2008.

The postponements of the hearing of the appeal have been disappointing for directors and shareholders alike. However, the directors consider the recent approval of the National Land Plan by the Greek Parliament to be extremely positive both for the Greek national economy and major investment in tourism. The importance of investment in sustainable integrated tourism developments to Greece has been well documented and the National Land Plan seeks to encourage such investment. The Board remains firmly of the opinion that the Project fulfils all the requirements of such developments and looks forward to bringing this unique resort to fruition.

Work on the Project has continued during the appeal period and, in December 2007, the Company was pleased to announce the joint winners of the international architectural competition for the design of Grandes Bay, Cavo Sidero's first tourism village.

Shareholder Loyalty Scheme

In November 2007 the Company announced significant enhancements to its Shareholder Loyalty Scheme. Discounts on residential units at Cavo Sidero are now available to holders of as few as 5,000 shares and are dependent on the length of time the shares are held.

Change of accounting reference date

The Board believes that changing the Company's accounting reference date to 30 September 2008, as announced, is appropriate bearing in mind the current stage of the development of the Project.

As a result of this change, the Company is presenting its unaudited interim financial statements for the 12 months ended 31 March 2008 in order to provide shareholders with current information.

Results

The unaudited interim results for the 12 months ended 31 March 2008, which include the costs associated with the Company's move to AIM on 2 May 2007, are set out below and are in line with the Board's expectations.

This is the first period in which the International Financial Reporting Standards ('IFRS'), as adopted by the EU, have been applied. As a consequence, comparatives have been restated from UK GAAP to IFRS. The only adjustment to previously reported numbers relates to the requirement under IFRS not to amortise goodwill but instead to test it annually for impairment. All other changes arising from the transition to IFRS are presentational only (see Note 2).

Chairman's Statement (continued)

Results (continued)

The Consolidated Unaudited Income Statement includes a charge in respect of share based payments as required under IFRS 2. This charge, which arises from the Company's recently adopted Long Term Incentive Plan, does not involve any cash payment (see Note 3).

Christopher W Egleton

Chairman

30 June 2008

Unaudited Consolidated Income Statement

12 months ended 31 March 2008

	6 months ended 31 March 2008 £	12 months ended 31 March 2008 £	Financial year ended 31 March 2007 £
Revenue	-	-	-
Cost of sales	-	-	-
Gross profit	-	-	-

Operating expenses	(341,660)	(1,103,863)	(867,826)
(Charge)/credit in respect of share based payments	(400,975)	(735,120)	45,837
Operating loss	(742,635)	(1,838,983)	(821,989)

Finance income	31,814	97,638	19,018
Finance costs	-	-	(341)
Loss before taxation	(710,821)	(1,741,345)	(803,312)
Taxation expense	-	-	-
Loss for the period attributable to equity holders of the Company	(710,821)	(1,741,345)	(803,312)

Loss per share attributable to equity holders of
the Company	(1.44)p	(3.55)p	(2.11)p

The notes on pages 7 and 8 form an integral part of this unaudited financial information.

Unaudited Statement of Changes in Equity

12 months ended 31 March 2008

	Share Capital £	Merger reserve £	Retained earnings £	Total equity £
Balance at 1 April 2007	29,732,557	9,348,724	(6,497,059)	32,584,222
Loss for the 12 months	-	-	(1,741,345)	(1,741,345)
Total recognised income for the 12 months ended 31 March 2008	29,732,557	9,348,724	(8,238,404)	30,842,877
Proceeds from shares issued	1,553,602	-	-	1,553,602
Charge in respect of share based payments	-	-	735,120	735,120
Balance at 31 March 2008	31,286,159	9,348,724	(7,503,284)	33,131,599

Financial year ended 31 March 2007

	Share Capital £	Merger reserve £	Retained earnings £	Total equity £
Balance at 1 April 2006	21,392,852	9,348,724	(5,315,556)	25,426,020
Loss for the financial year	-	-	(803,312)	(803,312)
Total recognised income for the financial year ended 31 March 2007	21,392,852	9,348,724	(6,118,868)	24,622,708
Proceeds from shares issued	8,339,705	-	-	8,339,705
Charge in respect of share based payments	-	-	(378,191)	(378,191)
Balance at 31 March 2007	29,732,557	9,348,724	(6,497,059)	32,584,222

Unaudited Consolidated Balance Sheet as at 31 March 2008

	2008 £	2007 £
Assets
Non-current assets
Intangible assets	3,572,776	3,572,776
Property, plant and equipment	182,127	151,291
Total non-current assets	3,754,903	3,724,067
Current assets
Inventories	30,680,835	27,807,246
Receivables	34,214	319,876
Cash and cash equivalents	682,314	3,811,117
Total current assets	31,397,363	31,938,239

Total assets	35,152,266	35,662,306

Equity
Capital and reserves attributable to equity holders of the Company
Share capital	12,333,011	11,937,653
Share premium account	18,953,148	17,794,904
Merger reserve account	9,348,724	9,348,724
Retained earnings	(7,503,284)	(6,497,059)
Total equity	33,131,599	32,584,222

Liabilities
Current liabilities
Trade and other payables	542,058	191,392
Social security and other taxes	51,087	54,563
Provisions for other liabilities and charges	1,427,522	2,832,129
Total liabilities	2,020,667	3,078,084

Total equity and liabilities	35,152,266	35,662,306

Unaudited Consolidated Cash Flow Statement

12 months ended 31 March 2008

	2008 £	2007 £

Cash flows from operating activities
Net cash used in continuing operations	(3,207,813)	(3,890,938)
Net cash used in operating activities	(3,207,813)	(3,890,938)

Cash flows from investing activities
Purchase of property, plant and equipment	(25,191)	(18,141)
Net cash used in investing activities	(25,191)	(18,141)

Cash flows from financing activities
Finance income	97,638	19,018
Finance costs	-	(341)
Proceeds from the issue of ordinary shares	6,563	7,532,020
Net cash generated from financing activities	104,201	7,550,697

Net (decrease)/increase in cash and cash equivalents	(3,128,803)	3,641,618

Cash and cash equivalents at beginning of period	3,811,117	169,499
Cash and cash equivalents at end of period	682,314	3,811,117

Notes to the unaudited interim results

12 months ended 31 March 2008

1. General information

The Company is a public limited company incorporated in the UK and quoted on the Alternative Investment Market of the London Stock Exchange. The company's principal activity is the design, creation, development and management of its luxury resort development at Cavo Sidero in North East Crete.

2. Basis of preparation

The interim financial statements for the 12 months ended 31 March 2008 comprise a Consolidated Income Statement, Consolidated Statement of Changes in Equity, Consolidated Balance Sheet and Consolidated Cash Flow statement plus relevant notes.

The interim financial statements are unaudited and do not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. A copy of the audited Report and Financial Statements for the financial year ended 31 March 2007 has been delivered to the Registrar of Companies. The Report and Financial Statements for the financial year ended 31 March 2007 were approved by the Board on 10 July 2007.

The interim financial statements have been prepared in accordance with the accounting policies that will be applied when the Group prepares its first set of audited financial statements, for the period ending 30 September 2008, in accordance with International Financial Reporting Standards ('IFRS') as adopted by the EU.

This is the first period in which IFRS have been applied and comparatives have been restated from UK GAAP to comply with IFRS. The only adjustment to previously reported numbers relates to the requirement under IFRS not to amortise goodwill but instead to test it annually for impairment. All other changes arising from the transition to IFRS are presentational only.

	IFRS	UK GAAP
	£	£
12 months ended 31 March 2008
Loss for the period	(1,741,345)	(2,006,345)
Total assets	35,152,266	34,622,226

6 months ended 31 March 2008
Loss for the period	(710,821)	(843,321)

Financial year ended 31 March 2007
Loss for the financial year	(803,312)	(1,068,312)
Total assets	35,662,306	35,397,306

Notes to the unaudited interim results (continued)

12 months ended 31 March 2008

3. Charge in respect of share based payments

During the period the Group implemented a Long Term Incentive Plan ('LTIP') in which any director or employee selected by the remuneration committee may participate. Awards under the LTIP have been granted on the basis that certain performance conditions are met.

A charge has been made for the value of the LTIP using the Black-Scholes or Monte Carlo pricing models as appropriate. This charge, shown as a charge in respect of share based payments in the Unaudited Consolidated Income Statement, does not involve any cash payment.

4. Loss per share attributable to the equity holders of the Company

Earnings per share are calculated by dividing the earnings attributable to equity holders by the weighted average number of ordinary shares in issue during the period. Diluted earnings per share are calculated by adjusting basic earnings per share to assume the conversion of all dilutive potential ordinary shares. In the case of losses however, these shares are antidilutive and as such they are ignored in calculating diluted loss per share. Therefore the basic loss per share and diluted loss per share are the same. The weighted average number of shares used in calculating basic and diluted loss per share for the 12 months ended 31 March 2008 was 49,048,576 and for the 6 months ended 31 March 2008 was 49,332,042 (Financial year ended 31 March 2007: 38,093,737).

Minoan Group Plc's unaudited interim financial statements for the 12 months ended 31 March 2008 can be viewed on the Company's website, www.minoangroup.com, with effect from 1 July 2008.