Half-year Report

18 September 2018

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR")

WALCOM GROUP LIMITED
(“Walcom” or “the Company”)

Half-yearly results for the six months ended 30 June 2018

Walcom is pleased to announce its interim results for the six months ended 30 June 2018. These results are also available from the Company’s website at www.walcomgroup.com.

Further enquiries:

Walcom Group Limited Francis Chi (Chief Executive Officer) Albert Wong (Chief Financial Officer)	[phone]
Allenby Capital Limited Virginia Bull	[phone]

CHAIRMAN’S STATEMENT

On behalf of the board of directors (the “Board”), I am pleased to present the Company’s half-yearly results for the six months ended 30 June 2018.

Introduction

During the first six months of the year the economy in China remained slow and the overall performance of the pig farming industry had not improved due to low pig farmgate prices. The Group’s revenue decreased by 2 per cent compared with the same period last year.  Due to the provision for a bad debt of HK$7.9 million and the continuing increase in production costs and operating expenses, the Group incurred a loss per share for the period of HK Cents 15.21 compared with a loss per share of HK Cents 5.03 in the same period last year.

Results for the Period

The Group generated revenues of HK$19.2 million during the period (June 2017: HK$19.6 million) and gross profits of HK$10.5 million (June 2017: HK$11.0 million), representing a decrease of 2 per cent and 5 per cent respectively compared with the same period last year.  The gross profit margin decreased by approximately 1.8 per cent to 54.6 per cent (June 2017: 56.4 per cent) due to the increase in the production costs which were incurred in Renminbi and the monthly average exchange rate of Renminbi against Hong Kong Dollar which appreciated by 7.6 per cent during the period under review compared with the same period last year. During the period under review, the Group made a provision for bad debt of HK$7.9 million on a trade receivable from its largest customer in China (June 2017: nil).  This was the primary contributor to the Group’s net loss increasing by 201 per cent to HK$10.12 million (June 2017: HK$3.36 million), without this, the Group had an improved loss of HK$1.72 million at the EBITDA level, a decrease of 41 per cent over the same period last year (June 2017: HK$2.92 million).

Review of Activities and Market

Compared to the same period last year, the monthly average exchange rate of Renminbi strengthened against the Hong Kong Dollar by 7.6 per cent during the period under review. While reporting in Hong Kong Dollar, this currency advantage in sales was set off by the decrease of 10 per cent in the quantity of sales in China, which resulted in the sales turnover in the PRC decreasing by 6 per cent to HK$10.2 million compared with the same period last year (June 2017: HK$10.8 million). Overseas sales remained relatively stable, increasing slightly by 2 per cent to HK$8.9 million compared with same period last year (June 2017: HK$8.7 million).

The Group’s largest customer in China, which is a sizable listed company, experienced a number of problems which, combined with adverse developments in the capital market during the first half year of 2018, resulted in trading in its shares being suspended on the Chinese stock exchange. After repeated unsuccessful attempts to demand payment of the overdue debt, the Group started legal proceedings against the customer to recover the debt and the Group has made a full provision of the trade receivable (HK$7.9 million) for prudence. Following the commencement of legal proceedings, there has been positive progress with the customer paying a small sum towards the outstanding debt and engaging in negotiations for a payment plan with the Company. The Board is, therefore, hopeful that the trade receivable might be recoverable.

The pig farmgate price in China continued to drop during the first five months of 2018 and, as a result, the pig numbers had not increased to its previous level. This being the case, the demand for feedstuff remained weak.  Belatedly, the pig farmgate price has started to rise, although slowly, since June this year. Since August 2018, an epidemic African swine fever on pigs has happened in some provinces in northern China. Emergency measures have been taken which restricted the trafficking of pigs among different provinces in the country. As a result, the pig farmgate price in the unaffected provinces, which are the principal regions where the Group operates, has risen significantly. If the rise in the pig price continues in the remaining months of this year, it is forecasted that the pig numbers in those regions which are not affected by the swine fever will increase during the second half of 2018. This will have a positive impact on the animal feed market which in turn will likely benefit the operating results of the Group.

The Group’s major sales effort remained focused on increasing sales penetration into the Group’s existing larger customers which have low usage and also those integrated meat producing companies whose businesses include feed milling, pig farming, pig slaughtering and pork product production. Initial positive results were achieved in the first half of 2018, although this effort was undermined by the weakening pig farming industry as mentioned above. With the prospect of an improvement in the industry in the second half of the year, the Board is hopeful for an increase in the Group’s sales.

The Group’s overall overseas sales improved by 2 per cent compared with last year. 

Sales in Thailand remained the main contributor, which presented 91 per cent of the Group’s overseas sales (June 2018: HK$8.1 million; June 2017: HK$7.9 million).

The Korean market remained weak during the period under review and sales decreased by 9 per cent to HK$0.70 million (June 2017: HK$0.77 million).

Outlook

While the structural transformation of the Chinese economy continues, which has resulted in slower growth over the past few years, the recent China-US trade war has added further uncertainty to the Chinese economy.  Although the Chinese economy has recently shown some recovery in sectors like the service industry, the expected interest rate hike in the United States and the recent devaluation of Renminbi are expected to have an adverse impact on its growth. This will affect the domestic consumer market and the negative impact could be passed on to the Group’s sales in the PRC market.

Frankie Y. L. Wong

Chairman

18 September 2018

UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE SIX MONTHS ENDED 30 JUNE 2018

	Note		Unaudited six months ended 30 June 2018		Unaudited six months ended 30 June 2017		Audited year ended 31 December 2017
			HK$		HK$		HK$
Revenue	3		19,163,440		19,560,955		44,488,372
Cost of sales			(8,697,989)		(8,534,341)		(20,177,334)
Gross profit			10,465,451		11,026,614		24,311,038
Other income	4		100,719		15,842		215,041
Research and development expenses			(881,279)		(328,530)		(1,482,466)
Selling and distribution expenses			(5,849,284)		(5,435,032)		(12,743,778)
General and administrative expenses			(13,630,612)		(8,474,239)		(15,096,244)
Loss from operations	5		(9,795,005)		(3,195,345)		(4,796,409)
Net finance expenses	6		(122,389)		(56,290)		(123,687)
Loss before income tax			(9,917,394)		(3,251,635)		(4,920,096)
Income tax expense	7		(205,131)		(112,609)		979,861
Loss for the period / year			(10,122,525)		(3,364,244)		(3,940,235)
(Loss) / profit attributable to:
Owners of the Company			(10,469,044)		(3,458,992)		(4,341,039)
Non-controlling interests			346,519		94,748		400,804
Loss for the period / year			(10,122,525)		(3,364,244)		(3,940,235)
Loss per share – basic, HK cents			(15.21)		(5.03)		(6.31)
– diluted, HK cents			(15.21)		(5.03)		(6.31)

UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2018

		Unaudited six months ended 30 June 2018		Unaudited six months ended 30 June 2017		Audited year ended 31 December 2017
		HK$		HK$		HK$
Loss for the period / year		(10,122,525)		(3,364,244)		(3,940,235)
Other comprehensive income
Exchange difference on translation of financial
statements of overseas subsidiaries		(443,061)		1,571,508		3,429,000
Total comprehensive loss
for the period / year		(10,565,586)		(1,792,736)		(511,235)
Total comprehensive loss
attributable to:
Owners of the Company		(10,874,678)		(2,027,469)		(1,151,641)
Non-controlling interests		309,092		234,733		640,406
Total comprehensive loss
for the period / year		(10,585,586)		(1,792,736)		(511,235)

UNAUDITED CONSOLIDATED BALANCE SHEET AT 30 JUNE 2018

	Note		Unaudited 30 June 2018		Unaudited 30 June 2017		Audited 31 December 2017
			HK$		HK$		HK$
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment			5,876,007		5,821,135		6,001,662
Patents			405,836		1,681,327		468,463
Goodwill			-		-		-
Deferred tax assets			1,072,500		-		1,072,500
			7,354,343		7,502,462		7,542,625
CURRENT ASSETS
Inventories			3,083,831		2,890,996		2,907,267
Trade and other receivables	10		3,968,541		9,279,392		12,090,127
Tax recoverable			464,357		-		134,027
Cash and cash equivalents	11		3,395,045		4,397,076		3,594,050
Restricted cash	11		-		111,768		111,377
			10,911,774		16,679,232		18,841,848
TOTAL ASSETS			18,266,117		24,181,694		26,384,473
EQUITY AND LIABILITIES
EQUITY
Share capital	12		688,344		688,344		688,344
Reserves			3,156,840		13,155,690		14,031,518
TOTAL EQUITY ATTRIBUTABLE TO   OWNERS OF THE COMPANY			3,845,184		13,844,034		14,719,862
Non-controlling interests			3,213,527		2,498,762		2,904,435
TOTAL EQUITY			7,058,711		16,342,796		17,624,297
CURRENT LIABILITIES
Trade and other payables	13		5,781,740		5,133,569		5,571,861
Tax payables			207,303		400,916		317,638
Loans from non-controlling interests			473,967		-		478,046
Bank borrowings	14		4,744,396		2,304,413		2,392,631
			11,207,406		7,838,898		8,760,176
TOTAL LIABILITIES			11,207,406		7,838,898		8,760,176
TOTAL EQUITY AND LIABILITIES			18,266,117		24,181,694		26,384,473
NET CURRENT (LIABILITIES) / ASSETS			(295,632)		8,840,334		10,081,672
TOTAL ASSETS   LESS CURRENT LIABILITIES			7,058,711		16,342,796		17,624,297

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2018

							Share-based										Non-
	Share		Share		Merger		compensation		Exchange		Surplus		Accumulated				controlling		Total
	capital		premium		reserve		reserve		reserve		reserve		losses		Total		interests		equity
	HK$		HK$		HK$		HK$		HK$		HK$		HK$		HK$		HK$		HK$
At 1 January 2017	688,344		95,298,644		23,852,469		1,568,769		(2,394,755)		3,602,327		(106,744,295)		15,871,503		2,264,029		18,135,532
Comprehensive loss
Loss for the period	-		-		-		-		-		-		(3,458,992)		(3,458,992)		94,748		(3,364,244)
Other comprehensive income
Exchange difference on translation of
financial statements of overseas subsidiaries	-		-		-		-		1,431,523		-		-		1,431,523		139,985		1,571,508
Total comprehensive loss for the period	-		-		-		-		1,431,523		-		(3,458,992)		(2,027,469)		234,733		(1,792,736)
Lapse of share option	-		-		-		(684,771)		-		-		684,771		-		-		-
At 30 June 2017	688,344		95,298,644		23,852,469		883,998		(963,232)		3,602,327		(109,518,516)		13,844,034		2,498,762		16,342,796
At 1 January 2018	688,344		95,298,644		23,852,469		883,998		794,643		3,773,101		(110,571,337)		14,719,862		2,904,435		17,624,297
Comprehensive loss
Loss for the period	-		-		-		-		-		-		(10,469,044)		(10,469,044)		346,519		(10,122,525)
Other comprehensive income
Exchange difference on translation of
financial statements of overseas subsidiaries	-		-		-		-		(405,634)		-		-		(405,634)		(37,427)		(443,061)
Total comprehensive loss for the period	-		-		-		-		(405,634)		-		(10,469,044)		(10,874,678)		309,092		(10,565,586)
Lapse of share option	-		-		-		(68,477)		-		-		68,477		-		-		-
At 30 June 2018	688,344		95,298,644		23,852,469		815,521		389,009		3,773,101		(120,971,904)		3,845,184		3,213,527		7,058,711

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2018

	Note		Unaudited six months ended 30 June 2018		Unaudited six months ended 30 June 2017		Audited year ended  31 December 2017
			HK$		HK$		HK$
Cash flow from operating activities
Loss before income tax			(9,917,394)		(3,251,635)		(4,920,096)
Amortisation of patents			47,030		132,769		265,538
Depreciation			109,684		144,293		285,927
Foreign exchange (gain) / loss, net			(325,103)		968,688		2,260,760
Interest received			(5,157)		(8,861)		(14,220)
Interest paid			127,547		65,151		137,907
Impairment of trade receivables			7,899,419		-		-
Impairment loss of patents			-		-		766,073
Patents written off			15,597		-		314,022
(Gain) / loss on disposal of property, plant and equipment					(23)		2,286
Operating loss before
working capital changes			(2,048,377)		(1,949,618)		(901,803)
Increase in inventories			(176,564)		(1,510,268)		(1,526,539)
Increase in trade and other receivables			(108,163)		(251,236)		(3,104,139)
Increase in trade and other payables			209,879		389,456		827,748
Net cash used in operations			(2,123,225)		(3,321,666)		(4,704,733)
Corporate income tax paid			(315,466)		(769,329)		(924,496)
Interest paid			(127,547)		(65,151)		(137,907)
Net cash used in operating activities			(2,566,238)		(4,156,146)		(5,767,136)
Cash flow from investing activities
Purchase of property, plant and equipment			(39,701)		(816,090)		(920,725)
Proceeds from disposal of fixed assets			-		23		23
Interest received			5,157		8,861		14,220
Net cash used in investing activities			(34,544)		(807,206)		(906,482)
Cash flow from financing activities
Repayment of bank borrowings			-		-		(2,392,631)
Proceeds from new bank borrowings			2,375,015		-		2,392,631
Proceeds from loans from non-controlling interests			-		-		478,046
Increase in restricted bank balance			116,377		(4,974)		(424)
Net cash generated from / (used in) financing activities			2,491,392		(4,974)		477,622
Net decrease in cash and cash equivalents			(109,390)		(4,968,326)		(6,195,996)
Cash and cash equivalents at the beginning of the period / year			3,594,050		9,012,203		9,012,203
Exchange (gain) / loss on cash and cash equivalents			(89,615)		353,199		777,843
Cash and cash equivalents at the end of the period / year	11		3,395,045		4,397,076		3,594,050

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2018

(1)     BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

The unaudited consolidated financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting.

The unaudited consolidated financial statements have been prepared under the historical cost convention. The same accounting policies, presentation and methods of computation are followed in these unaudited consolidated financial statements as were applied in the preparation of the group’s financial statements for the year ended 31 December 2017 except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 January 2018, and will be adopted in the 2018 annual financial statements.

The following new standards and interpretations became effective on 1 January 2018 and have been adopted by the group:

-	IFRS 9	Financial Instruments
-	IFRS 15	Revenue from Contracts with Customers

On 1 January 2018, the Group has performed an assessment on the impact of the adoption of IFRS 9 and IFRS 15 respectively and concluded that no material financial impact exists, and therefore no adjustment to the opening balance of equity at 1 January 2018 was recognised.

For the six months ended 30 June 2018, impairment based on the expected credit loss model on the group’s trade receivables of HK$7,899,419 have been made.

(2)     SEGMENT REPORTING

(a)          Primary reporting format - Geographical Segment

The group’s operations are mainly located in Hong Kong, PRC, Thailand. The group’s sales revenue by geographical location of customers are analysed as follows:

	Unaudited six months ended 30 June 2018		Unaudited six months ended 30 June 2017		Audited year ended 31 December 2017
	HK$		HK$		HK$
PRC	10,216,380		10,821,546		25,759,215
Thailand	8,102,788		7,894,388		16,854,536
Korea	702,000		-		1,799,741
Others	142,272		845,021		74,880
	19,163,440		19,560,955		44,488,372

(b)          Secondary reporting format - Business Segment

The Group is principally engaged in the manufacture, distribution and sale of chemical feed and additive products. All of the group’s products are of a similar nature and subject to similar risk and returns. Accordingly, the group’s activities are attributable to a single business segment and no business segment analysis is presented.

(c)   Segment assets by geographical location of assets

	Unaudited six months ended 30 June 2018		Unaudited six months ended 30 June 2017		Audited year ended 31 December 2017
	HK$		HK$		HK$
PRC	6,687,472		13,854,608		13,943,939
Thailand	8,962,265		8,039,316		9,613,986
Hong Kong	2,210,544		606,442		2,449,543
Others	405,836		1,681,328		377,005
	18,266,117		24,181,694		26,384,473

(3)     REVENUE

Revenue represents the sales value of goods supplied to the customers less returns, discounts, value added tax and sales taxes.

(4)     OTHER INCOME

	Unaudited six months ended 30 June 2018		Unaudited six months ended 30 June 2017		Audited year ended 31 December 2017
	HK$		HK$		HK$
Government subsidy	-		-		177,946
Gain on disposal of property, plant and
equipment	-		23		-
Sundry income	100,719		15,819		37,095
	100,719		15,842		215,041

(5)     OPERATING (LOSS) / PROFIT

Operating (loss) / profit is stated after charging the following items:-

	Unaudited six months ended 30 June 2018		Unaudited six months ended 30 June 2017		Audited year ended 31 December 2017
	HK$		HK$		HK$
Amortisation of patents	47,030		132,769		265,538
Auditor’s remuneration	183,808		182,040		335,977
Cost of inventories	8,349,076		8,139,119		19,190,422
Depreciation	75,736		96,012		189,086
Exchange (gains) /losses, net (a)	(325,103)		968,688		2,260,760
Impairment loss of trade receivables	7,899,419		-		-
Impairment loss of patents	-		-		766,073
Loss on disposal of property, plant and equipment					2,286
Patents written off	15,597		-		314,022
Rental charges under operating leases  in respect of land and buildings	486,701		410,733		841,008
Staff costs  (including directors’ emoluments)
- wages and salaries	4,853,038		5,549,091		10,186,056
- contributions to retirement benefits	452,386		419,466		877,054
- other staff benefits	1,380,641		1,527,712		3,042,257

1. The net exchange (gains)/losses were mainly attributable to the elimination of intragroup balances.

(6)     NET FINANCE (EXPENSES)/ INCOME

	Unaudited six months ended  30 June 2018		Unaudited six months ended 30 June 2017		Audited year ended 31 December 2017
	HK$		HK$		HK$
Bank interest income	5,157		8,861		14,220
Interest expense on loans
from non-controlling interest	(35,592)		-		(4,780)
Interest expense on bank loans	(91,954)		(65,151)		(133,127)
	(122,389)		(56,290)		(123,687)

(7)     INCOME TAX EXPENSE

No provision for Hong Kong Profits Tax has been made (June 2017: HK$nil; 2017: HK$nil) as the group’s assessable profit subject to Hong Kong profits tax for the period is fully set-off by tax loss brought forward from last year.

Taxation on overseas profits has been calculated on the estimated assessable profit for the period/year at the rate of taxation prevailing in the countries in which the group companies operate. The overseas income tax provided for the six months ended 30 June 2018 is HK$205,131 (June 2017: HK$112,609; 2017: HK$92,639).

(8)     LOSS PER SHARE

The calculation of the basic loss per share for the six months ended 30 June 2018, is based on the loss attributable to ordinary equity shareholders of the company of HK$10,469,044 (June 2017: HK$3,458,992; 2017: HK$4,341,039) during the period and the weighted average number of 68,834,388 ordinary shares (June 2017: 68,834,388; 2017: 68,834,388) in issue during the period/year. No diluted loss per share is to be reported for the period/year.

(9)     DIVIDENDS

No payment of dividend was recommended for the first six months of 2018 (June 2017: HK$ nil; 2017: HK$nil).

(10)   TRADE AND OTHER RECEIVABLES

	Unaudited  30 June 2018		Unaudited  30 June 2017		Audited 31 December 2017
	HK$		HK$		HK$
Trade receivables	10,628,698		8,275,752		11,501,231
Less: provision for impairment loss	(7,899,419)		(508,758)		(508,758)
	2,729,279		7,766,994		10,992,473
Other receivables	221,943		524,206		77,896
Prepayments and deposits	1,017,319		988,192		1,019,758
	3,968,541		9,279,392		12,090,127

(a)          All trade and other receivables are expected to be recovered within one year.

(b)          Impairment of trade receivables

The movement in the provision of impairment for doubtful debts during the period/year, including both specific and collective loss components, is as follows:

	Unaudited  six months ended 30 June 2018		Unaudited  six months ended 30 June 2017		Audited  year ended 31 December 2017
	HK$		HK$		HK$
At 1 January	508,758		508,758		508,758
Impairment loss recognised	7,899,419		-		-
Written off	(508,758)		-		-
At 30 June/31 December	7,899,419		508,758		508,758

At 30 June 2018, the Group’s trade receivables of HK$7,899,419 (June 2017: HK$508,758, 2017: HK$508,758) have been outstanding for a certain period of time. The management assessed that only a portion of the receivables is expected to be recoverable.  Consequently, specific allowance for doubtful debts was recognised for the individually impaired receivables. 

The Group does not hold any collateral over these balances.

(11)   CASH AND CASH EQUIVALENTS

	Unaudited  30 June 2018			Unaudited  30 June 2017					Audited 31 December 2017
	HK$			HK$					HK$
Cash at bank and on hand	3,395,045				4,508,844			3,710,427
Less: Cash at bank - restricted	-				(111,768)			(116,377)
Cash and cash equivalents in the cash flow statement	3,395,045				4,397,076			3,594,050

(12)   SHARE CAPITAL

	Unaudited  30 June 2018		Unaudited  30 June 2017		Audited  31 December 2017
	HK$		HK$		HK$
Authorised
150,000,000 (June 2017: 150,000,000 and Dec 2017: 150,000,000) ordinary shares of HK$0.01 each	1,500,000		1,500,000		1,500,000
Issued and fully paid
68,834,388 (June 2017: 68,834,388 and       Dec 2017: 68,834,388) ordinary       shares of HK$0.01 each	688,344		688,344		688,344

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.  All ordinary shares rank equally with regard to the Company’s residual assets.

(13)   TRADE AND OTHER PAYABLES

	Unaudited  30 June 2018		Unaudited  30 June 2017		Audited 31 December 2017
	HK$		HK$		HK$
Trade payables	1,384,916		1,478,806		1,238,690
Other payables and accrued expenses	4,396,824		3,654,763		4,333,171
	5,781,740		5,133,569		5,571,861

All of the trade and other payables are expected to be settled within one year.

(14)  BANK BORROWINGS

		Unaudited  30 June 2018		Unaudited  30 June 2017		Audited  31 December 2017
		HK$		HK$		HK$
Current
Bank borrowings, unsecured	(a)	4,744,396		2,304,413		2,392,631

1. The effective interest rate per annum for bank borrowings at balance sheet date is at 5.7% (June 2017: 5.7%, 2017: 5.7%) per annum.

(15)     RECONCILIATION OF LOSS BEFORE INCOME TAX TO EBITDA

	Unaudited six months ended 30 June 2018		Unaudited six months ended 30 June 2017		Audited year ended 31 December 2017
	HK$		HK$		HK$
Loss before income tax	(9,917,394)		(3,251,635)		(4,920,096)
Depreciation	109,684		144,293		285,927
Amortisation of patents	47,030		132,769		265,538
Interest income	(5,157)		(8,861)		(14,220)
Interest expenses	127,546		65,151		137,907
Patents written off	15,597		-		314,022
Impairment loss of patents	-		-		776,073
Impairment loss of trade receivables	7,899,419		-		-
(Gain) / loss on disposal of property, plant and equipment			(23)		2,286
EBITDA	(1,723,275)		(2,918,306)		(3,162,563)

EBITDA is defined herein as earnings before depreciation, amortization, interest and tax, plus specific charges which are considered non-recurring in nature. Specific charges include impairment loss in value and gain/loss in disposal of non-current assets, and amortization of fair value of share-based compensation. EBITDA is not a recognised term under generally accepted accounting principles and does not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Because not all companies use identical calculations, this presentation may not be comparable to other similarly titled measures of other companies.

(16)      COPIES OF THE HALF YEARLY REPORT

Copies of the half-yearly report will be available shortly from the Company’s website www.walcomgroup.com .