Final Results
Braemar Group PLC
13 June 2006
Braemar Group plc
Audited Results for the
Six Months to 31 March 2006
Braemar Group plc, the manager of tax efficient residential property funds,
announces its first set of audited results since completion of the reverse
takeover of The Braemar Group Limited by Metrocapital plc. The Directors are
pleased to report that good progress has been made in line with the stated
strategy at the time of the reverse takeover.
Key Points
Audited Audited
6 months ended 12 months ended
March 2006 September 2005
Turnover £269,277 Nil
Net assets £2,408,615 £69,389
Loss before tax £300,980 £163,321
Net cash outflow from operating activities £(290,219) £(149,766)
Cash at bank and in hand £557,524 £89,189
Loss per share (basic) 0.42p 0.85p
• Financial performance in line with our expectations and reflects the costs
involved with the reverse takeover by Metrocapital plc.
• Coronation III completed the purchase of a property in Tunbridge Wells as
part of a £3.5m development to create 17 apartments during 2006.
• The Coronation III fund is on track to providing investors with 40% of
their investment returned in the form of capital allowances within 18 months
of investment.
• Coronation I and II continue to perform in line with management's
expectations and occupancy is currently almost 100%.
• Funds currently under review include a further tax driven residential
property fund, Coronation IV, and other vehicles to invest in residential
property schemes.
• A number of possible acquisitions have been identified and it is hoped to
conclude at least one transaction in 2006/07.
• Recurring fee income has increased to an annualised level of £240,000.
For further information please contact:
Martin Robinson - Chairman Tel: 0161 929 4969
Marc Duschenes - Managing Director Tel: 0161 929 4969
Alex Clarkson - Zeus Capital Limited Tel: 0161 831 1512
Charles Ryland - Buchanan Communications Tel: 0207 466 5000
Financial Results
The audited results for the six months to 31 March 2006 report a loss before
taxation of £300,980; the comparative loss for the 12 months to 30 September
2005 was £163,321.
The net assets of the Group stood at £2,408,617 against £69,389 at 30 September
2005. Cash balances at the balance sheet date were £557,524.
The financial performance as reported is in line with our expectations and
reflects the costs and senior management time involved in the reverse takeover
of The Braemar Group Limited by Metrocapital plc (now renamed 'Braemar Group plc
') on 9 December 2005. Following the reverse takeover, the accounting reference
date of the Company was changed to 31 March, in line with the accounting
reference date of The Braemar Group Limited and its subsidiaries. Consequently,
the results now announced comprise a consolidation of the results for the six
months to 31 March 2006 for Metrocapital plc and approximately four months post
acquisition for The Braemar Group Limited, together with a consolidated balance
sheet at 31 March 2006.
It is the Company's policy not to pay any dividends during the initial
development and growth of the business. This policy is subject to ongoing
review.
Key Achievements
• Recurring fee income has increased to an annualised level of £240,000.
• Coronation III completed the purchase of a property in Tunbridge Wells as
part of a £3.5 million development to create 17 apartments in a prime town
centre location; generating a one-off fee of £178,000.
• Group remains on track to launch several major new residential property
funds later in 2006/7.
New residential property funds to be launched
The directors are preparing for the launch of multiple residential funds that
will be suitable for SIPP investment. The directors intend to commemorate the
fifth anniversary of the establishment of the Group with the launch of up to
five new Braemar branded residential property funds later in the year. The
intention is that these will provide investors with a breadth of investment
opportunities to aid in investor diversification. The funds currently under
review include a further tax driven residential property fund, Coronation IV,
and other vehicles to invest in residential property schemes, such as off plan
apartments and ground rents. These plans are at an early stage of development
and further announcements will be made once the details are finalised.
We continue to monitor the developments in the Real Estate Investment Trust
(REIT) legislation so that once the rules have been finalised we can decide what
opportunities exist for Braemar.
Current trading highlights
The fund raising for the third tax efficient residential property fund managed
by the Group, ('Coronation III Limited Partnership') was closed on 31 March
2006. Coronation III has completed the purchase of a property in Tunbridge
Wells. Braemar will manage this £3.5 million project to create 17 apartments
during 2006, the largest single transaction by a Coronation fund to date
providing the Group with significant one-off fee income of £178,000 and
estimated recurring fee income of some £50,000, together with existing recurring
fee income of some £190,000. The fund is on track to providing investors with
40% of their investment returned in the form of capital allowances within 18
months of investment.
The first two funds continue to perform in line with management's expectations
and occupancy is currently almost 100%. Both of these funds will have provided
investors with the value of 40% of their investment in the form of capital
allowances to offset against their other income. In addition Coronation I was
able to return to investors 20% of their investment by way of loan capital
repayment within three years of the fund closing.
The available capital allowances provide our investors in the Coronation funds
with a high level of tax efficiency, which compares very favourably with the
reduced rate now on offer from other tax schemes. Investors also benefit from
the backing of the value of residential developments.
Strategic Acquisitions update
At the time of the reverse takeover, the directors stated their intention to
seek acquisitions in the property investment management and property services
sectors, and to develop or acquire a corporate finance business to act as
sponsors to its own fund launches and to provide advice to growing companies.
The directors continue to pursue this strategy and have identified a number of
possible acquisitions. Discussions with the vendors of these businesses are at
an early stage, but the directors hope to conclude at least one transaction in
2006/7.
Key Shareholders
Wheddon Limited holds a 21.09% stake in the Company. Wheddon Limited is
ultimately owned by Investec Trust (Guernsey) Limited as trustees for the
Tchenguiz Family Trust. The directors of Braemar meet on a regular basis with
other property related businesses in which Wheddon and Vincent Tchenguiz holds
stakes. The directors believe that this will create growth and
cross-fertilisation opportunities for Braemar's services amongst those
businesses.
Resignation of a director
David Gordon Maclean has decided to leave the Group with immediate effect
enabling him to pursue his other business and personal interests. The Board
wishes to thank Mr Maclean, particularly for facilitating the reverse takeover
of The Braemar Group Limited last year.
Outlook
We believe the prospects for the sector remain strong with the recently
announced changes to the rules allowing collective residential assets to be held
within pension schemes. We expect demand for these types of investment schemes
to be significant and believe we are well positioned to take advantage of these
opportunities and remain optimistic of the future prospects for your company.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
SIX MONTHS ENDED 31 MARCH 2006
6 months 12 months
ended ended
31 March 30 September
2006 2005
Notes £ £ £
TURNOVER 2
Continuing operations -
Acquisitions 269,277
269,277 -
Cost of sales (113,431) -
Gross profit 155,846 -
Administration expenses (453,708) (167,510)
Operating LOSS 3
Continuing operations (265,916)
Acquisitions (31,946)
(297,862) (167,510)
Interest receivable 6 11,128 4,189
Interest payable and similar 7 (14,246) -
charges
LOSS ON ORDINARY ACTIVITIES (300,980) (163,321)
BEFORE TAXATION
TAXATION 8 - -
LOSS FOR THE FINANCIAL PERIOD (300,980) (163,321)
Loss per share - basic 9 0.42p 0.85p
The Group has no recognised gains or losses other than the results for the
period as set out above.
CONSOLIDATED BALANCE SHEET
31 MARCH 2006
31 March 30 September
2006 2005
Notes £ £ £ £
FIXED ASSETS
Intangible assets 11 2,244,174 -
Tangible assets 12 30,452 -
Investments 13 2,000 -
2,276,626 -
CURRENT ASSETS
Stock 14 124,700 -
Debtors 15 547,792 6,581
Cash at bank and in hand 557,524 89,189
1,230,016 95,770
CREDITORS
Amounts falling due within one
year 16 (1,098,025) (26,381)
NET CURRENT ASSETS 131,991 69,389
TOTAL ASSETS LESS CURRENT
LIABILITIES 2,408,617 69,389
NET ASSETS 2,408,617 69,389
CAPITAL AND RESERVES
Called up equity share capital 17 1,137,950 191,666
Share premium account 18 1,958,445 264,521
Profit and loss account 18 (687,778) (386,798)
SHAREHOLDERS' FUNDS 19 2,408,617 69,389
The financial statements were approved and authorised for issue by the board and
were signed on its behalf on
Director
COMPANY BALANCE SHEET
31 MARCH 2006
31 March 30 September
2006 2005
Notes £ £ £ £
FIXED ASSETS
Tangible assets 12 2,824 -
Investments 13 2,589,546 -
2,592,370 -
CURRENT ASSETS
Debtors 15 414,057 6,581
Cash at bank and in hand 512,520 89,189
926,577 95,770
CREDITORS
Amounts falling due within one
year 16 (1,040,298) (26,381)
NET CURRENT (LIABILITIES)/ASSETS (113,721) 69,389
TOTAL ASSETS LESS CURRENT
LIABILITIES 2,478,649 69,389
NET ASSETS 2,478,649 69,389
CAPITAL AND RESERVES
Called up share capital 17 1,137,950 191,666
Share premium account 18 1,958,445 264,521
Profit and loss account 18 (617,746) (386,798)
SHAREHOLDERS' FUNDS 19 2,478,649 68,389
The financial statements were approved and authorised for issue by the board and
were signed on its behalf on
Director
CONSOLIDATED CASH FLOW STATEMENT
SIX MONTHS ENDED 31 MARCH 2006
6 months 12 months
ended ended
31 March 30 September
Notes 2006 2005
Reconciliation of operating profit to net cash £ £
outflow from operating activities
Operating loss (297,862) (167,510)
Loss on sale of fixed assets - 13,597
Amortisation of intangible assets 34,967 -
Depreciation of tangible fixed assets 3,770 -
Increase in debtors (132,264) (3,483)
Increase in creditors 101,170 7,630
Net cash outflow from operating activities (290,219) (149,766)
CASH FLOW STATEMENT
Net cash outflow from operating activities (290,219) (149,766)
Returns on investments and servicing of finance
Interest paid (3,875) -
Interest received 11,128 4,189
Net cash inflow from returns on investments and
servicing of finance 7,253 4,189
Taxation paid (68,251) -
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (12,260) -
Acquisition of The Braemar Group Limited 13 (592,821) -
Receipts from sales of investments - 36,418
Net cash (outflow)/inflow from capital expenditure
and financial investment (605,081) 36,418
Net cash outflow before financing (956,298) (109,159)
Financing
Issue of sahre capital
Issue of share capital 1,623,275 -
Share issue costs (198,642) -
Net cash inflow from financing 1,424,633 -
INCREASE/(DECREASE) IN CASH 20 468,335 (109,159)
NOTES TO THE FINANCIAL STATEMENTS
SIX MONTHS ENDED 31 MARCH 2006
1. ACCOUNTING POLICIES
The principal accounting policies adopted by the Group are as follows.
(a) Convention
The financial statements have been prepared under the historical cost convention
and in accordance with applicable United Kingdom Accounting Standards.
(b) Basis of consolidation
The consolidated profit and loss account and balance sheet includes the
financial statements of the Company and its subsidiary undertakings made up to
31 March 2006. The results of subsidiaries sold or acquired are included in the
profit and loss account up to, or from, the date control passes. Intra-group
sales and profits are eliminated fully on consolidation.
A separate profit and loss account for the parent company has not been prepared
as permitted by Section 230(2) of the Companies Act 1985.
(c) Turnover
Turnover comprises the invoiced value of goods and services supplied by the
Group net of VAT and trade discounts.
(d) Deferred taxation
Deferred tax is provided in full in respect of taxation deferred by timing
differences between the treatment of certain items for taxation and accounting
purposes. Deferred tax assets are recognised to the extent that it is regarded
as more likely than not that they will be recovered. The Group has not adopted a
policy of discounting deferred tax assets and liabilities.
(e) Goodwill
For acquisitions of a business, purchased goodwill is capitalised in the year in
which it arises and amortised over its estimated useful economic life up to a
maximum of twenty years.
(f) Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost, net of depreciation and any provision
for impairment. Depreciation is calculated to write down the cost of assets to
their estimated residual values over their estimated useful economic life over a
period of 4 years on a straight line basis.
(g) Stock
Properties held for development and resale are stated at the lower of cost and
net realisable value. Cost comprises purchase price, acquisition and development
costs but excludes interest, which is written off to the profit and loss account
as incurred.
(h) Investments
Investments are stated at the lower of cost and net realisable value.
(i) Leasing and hire purchase
Assets obtained under hire purchase contracts and finance leases are capitalised
as tangible fixed assets. Assets acquired by finance lease are depreciated over
the shorter of the lease term and their useful lives. Assets acquired by hire
purchase are depreciated over their useful lives. Finance leases are those where
substantially all of the benefits and risks of ownership are assumed by the
Company. Obligations under such agreements are included in creditors net of the
finance charge allocated to future periods. The finance element of the rental
payment is charged to the profit and loss account so as to produce a constant
periodic rate of charge on the net obligation outstanding in each period.
(j) Operating leases
Rentals under operating leases are charged on a straight line basis over the
lease term.
Benefits received and receivable as an incentive to sign an operating lease are
recognised on a straight line basis over the period until the date the rent is
expected to be adjusted to the prevailing market rate.
2 TURNOVER
The total turnover of the Group for the period has been derived from its
principal activity wholly undertaken in the United Kingdom net of value added
tax.
3 OPERATING LOSS
The operating loss is stated after charging:
6 months 12 months
ended ended
31 March 30 September
2006 2005
£ £
Amortisation of goodwill 34,967 -
Depreciation of fixed assets 3,770 -
Auditors' remuneration 12,000 3,525
Auditors' remuneration for non-audit work 3,000 2,350
Auditor's remuneration for non-audit work of £30,000 has been paid in the period
and not reflected in the operating loss above, but in the cost of acquisition
and share issue costs.
4 STAFF COSTS
(a) Staff costs comprise: 6 months 12 months
ended ended
31 March 30 September
2006 2005
£ £
Wages and salaries 219,363 17,678
Social security 16,526 -
(b) Employees
Number Number
The average number of employees including
directors, during the period was: 8 2
5 DIRECTORS' EMOLUMENTS
6 months 12 months
ended ended
31 March 30 September
2006 2005
£ £
Directors' emoluments 185,796 73,434
No directors were members of a company pension scheme.
6 INTEREST RECEIVABLE
6 months 12 months
ended ended
31 March 30 September
2006 2005
£ £
Interest receivable and similar income 11,128 4,189
7 INTEREST PAYABLE
6 months 12 months
ended ended
31 March 30 September
2006 2005
£ £
Bank interest 211 -
Interest on other loans 14,035 -
Total interest payable 14,246 -
8 TAXATION
6 months 12 months
ended ended
31 March 30 September
2006 2005
£ £
Tax on ordinary activities - -
The differences between the total current tax shown above and the amount
calculated by applying the standard rate of UK corporation tax of 30% (2005: 30%)
to the profit and loss is as follows:
2006 2005
£ £
Loss on ordinary activities before tax (300,980) (163,321)
Loss on ordinary activities multiplied by standard
rate of corporation tax in the UK of 30% (90,294) (48,996)
Effects of:
Expenses not deductible for tax purposes 15,945 9,870
Capital allowances in excess of depreciation (305) -
Movement in tax losses 72,580 39,126
Other short term timing differences 2,074 -
- -
No adjustment has been made to the financial statements to reflect a potential
deferred tax asset that would arise from future utilisation of the Group's
available losses for tax purposes, due to the uncertainty over the timing of
such utilisation. The potential deferred tax asset that would arise on full
utilisation would amount to approximately £141,056.
9 LOSS PER SHARE
6 months 12 months
ended ended
31 March 30 September
2006 2005
£ £
Loss for the period 300,980 163,321
Weighted average number of 72,454,432 19,166,666
shares
Loss per share - basic 0.42p 0.85p
Loss per share before goodwill amortisation would be 0.37p.
10 LOSS FOR THE FINANCIAL PERIOD
As permitted by section 230 of the Companies Act 1985, the holding company's
profit and loss account has not been included in these financial statements. The
loss for the period is made up as follows:
6 months 12 months
ended ended
31 March 30 September
2006 2005
£ £
Holding company's loss for the 230,948 163,321
period
11 INTANGIBLE FIXED ASSETS - GOODWILL
Group 2006
Cost
At 1 October 2005 -
Additions (see note 13) 2,279,141
At 31 March 2006 2,279,141
Amortisation
At 1 October 2005 -
Charge for the period 34,967
At 31 March 2006 (34,967)
Net book value
At 31 October 2005 -
At 31 March 2006 2,244,174
12 TANGIBLE FIXED ASSETS
Group Group Group Company Company
Motor Fixtures, Total Fixtures, Total
vehicles fittings fittings
and office and office
equipment equipment
Cost £ £ £ £ £
At 1 October 2005 - - - - -
Additions:
- acquired (note 13) 15,315 8,647 23,962 - -
- post acquisition 5,432 4,828 10,260 3,120 3,120
At 31 March 2006 20,747 13,475 34,222 3,120 3,120
Depreciation
At 1 October 2005 - - - - -
Charge for the period 3,291 479 3,770 296 296
At 31 March 2006 3,291 479 3,770 296 296
Net Book Value
At 1 October 2005 - - - - -
At 31 March 2006 17,456 12,996 30,452 2,824 2,824
13 FIXED ASSET INVESTMENTS
Group
£
Cost - unlisted investments
At 1 October 2005 -
Additions 2,000
At 31 March 2006 2,000
Company
£
Cost
At 1 October 2005 -
Additions (see below) 2,589,546
At 31 March 2006 2,589,546
The Group has investments in the following subsidiary undertakings, which are
all incorporated in England and Wales and are owned 100%:
Subsidiaries Principal activity
Braemar Investment Management Property and investment managers and
Limited investors
Braemar Securities Limited Intermediate holding company
Coronation General Partner Limited Fund manager
Coronation Carried Interest Limited Dormant
Coronation Nominee Limited Dormant
Coronation General Partner II Fund manager
Limited
Coronation Carried Interest II Dormant
Limited
Coronation Nominee II Limited Dormant
Coronation General Partner III Fund manager
Limited
Coronation Carried Interest III Dormant
Limited
Coronation Nominee III Limited Dormant
Acquisition of subsidiary undertaking
On 9 December 2005 the Company acquired 100% of The Braemar Group Limited
(renamed Braemar Securities Limited) for consideration comprising the issue of
29,628,334 Ordinary Shares at 3p per share (£888,850), £709,000 cash, £262,150
of Loan Notes and £625,000 cash on deferred terms. The fair value of the total
consideration was £2,485,000.
Acquisition accounting has been used to account for the new subsidiary. Goodwill
of £2,279,141 arose on the acquisition.
The following table sets out the book values and fair values to the Group of the
identifiable assets and liabilities acquired as at 9 December 2005:
Total
£
Fixed assets
Tangible 23,962
Current assets
Stocks 124,700
Debtors 75,832
Cash 220,725
Total assets 445,219
Creditors
Trade creditors (47,374)
Accruals (10,660)
Other creditors (76,780)
Total liabilities (134,814)
Net assets acquired 310,405
Goodwill arising 2,279,141
2,589,546
Satisfied by
Shares issued 888,850
Cash 709,000
Loan Notes 262,150
Deferred consideration 625,000
Directly attributable acquisition 104,546
costs
2,589,546
£
Net cash outflows in respect of the acquisition
comprised:
Cash consideration 709,000
Cash at bank and in hand acquired (220,725)
Directly attributable acquisition costs 104,546
Net cash outflow (592,821)
Braemar Securities Limited recorded a loss after taxation of £132,188 in the
year ended 31 March 2006, of which £97,123 arose in the period from 31 March
2005 to 9 December 2005.
14 STOCK
Group Company
2006 2005 2006 2005
£ £ £ £
Property held for resale 124,700 - - -
15 DEBTORS
Group Company
2006 2005 2006 2005
£ £ £ £
Trade debtors 78,045 - - -
Amounts due from group
undertakings - - 67,067 -
Corporation tax 15,000 - - -
recoverable
VAT receivable 17,255 - 8,015 -
Other debtors 337,685 - 326,725 -
Prepayments and accrued
income 99,807 6,581 12,250 6,581
547,792 6,581 414,057 6,581
Other debtors of group and company include £326,725 due for shares placed, which
was received after the year end.
16 CREDITORS - amounts falling due within one year
Group Company
2006 2005 2006 2005
£ £ £ £
Trade creditors 70,908 16,906 45,671 16,906
Convertible loan notes 637,150 - 637,150 -
Deferred consideration 250,000 - 250,000 -
Other taxes and social 34,105 - 28,281 -
security
Other creditors 8,115 - 278 -
Accruals and deferred 97,747 9,475 97,747 9,475
income 1,098,025 26,381 1,040,298 26,381
Deferred consideration is payable to Marc Duschenes (Managing Director) and his
wife Jennie Duschenes on the achievement of certain performance targets as laid
out in the share purchase agreement dated 9 November 2005, which was signed as
part of the acquisition of The Braemar Group Limited by Braemar Group plc.
Convertible loan notes are redeemable on the earlier of the date on which the
Group has sufficient working capital to enable payment and 5 years from the date
of issue, subject to the approval of the holders of the loan notes. The loan
notes accrue interest at 2% above bank base rate, payable upon redemption or
conversion of the loan notes. The loan notes are convertible into ordinary
shares at 3p per share at any time or before the 5th anniversary of issue
provided the holders of the loan notes and their concert parties do not hold
more than 29.99% of the entire issued share capital of the Company. The option
to convert to ordinary shares is at the discretion of the holders of the loan
notes.
17 SHARE CAPITAL
2006 2005
Authorised £ £
200,000,000 (2005: 1,000,000) Ordinary shares of 1p 2,000,000 1,000,000
each
Allotted, called up and fully paid
113,795,000 (2005: 19,166,666) Ordinary shares of 1p 1,137,950 191,666
each
The following issues of ordinary shares of 1p took place in the year:
No. of Placement
shares price
7 December 2005 (cash issue) 50,000,000 3p
7 December 2005 (consideration re: acquisition
note 13)) 29,628,334 3p
1 February 2006 (cash issue) 15,000,000 3p
As at 31 March 2006 there were no options granted by the Company. Beaumont
Cornish Limited holds a warrant dated 17 May 2004 entitling the holder to
subscribe for 333,333 ordinary shares at 3p within the third anniversary of the
date of admission on AIM.
18 STATEMENT OF MOVEMENTS ON RESERVES
Share premium Profit and
account loss
account
£ £
Group
1 October 2005 264,521 (386,798)
Loss for the period - (300,980)
Shares issued during the year 1,892,567 -
Share issue costs (198,642) -
At 31 March 2006 1,958,445 (687,778)
Company
1 October 2005 264,521 (386,798)
Loss for the period - (230,948)
Shares issued during the year 1,892,567 -
Share issue costs (198,642) -
At 31 March 2006 1,958,445 (617,746)
19 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
2006 2005
Group £ £
Opening shareholders funds 69,389 232,710
Loss for the financial period (300,980) (163,321)
Proceeds from the issues of shares 2,640,208 -
Closing shareholders funds 2,408,617 69,389
2006 2005
Company £ £
Opening shareholders funds 69,389 232,710
Loss for the financial period (230,948) (163,321)
Proceeds from the issues of shares 2,640,208 -
Closing shareholders funds 2,478,649 69,389
20 ANALYSIS OF NET DEBT
At 1 Cash Non-cash At 31
October flows changes March
2005 2006
Cash £ £ £ £
Cash at bank and
in hand 89,189 468,335 - 557,524
Debt
Convertible loan
notes - - (647,521) (647,521)
Deferred
consideration - - (250,000) (250,000)
Net Cash/(Debt) 89,189 468,335 (897,521) (339,997)
21 RECONCILIATION OF NET CASH FLOW TO MOVEMENT OF NET DEBT
2006 2005
£ £
Increase/ (Decrease) in cash 468,335 (109,159)
Non cash movement in net debt (897,521) -
Movement in net (debt)/ funds
during the period (429,186) (109,159)
Opening net funds 89,189 198,348
Closing net (debt) /funds (339,997) 89,189
22 FINANCIAL COMMITMENTS
The Group had no material operating lease commitments at 31 March 2006 (2005 -
£Nil).
23 CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
The Group had no material capital commitments or contingent liabilities at 31
March 2006 (2005 - Nil).
24 RELATED PARTY TRANSACTIONS
The Group during the period received the provision of accommodation and
professional services from Minlay Limited, a company controlled by D G Maclean.
The amount paid during the period amounted to £20,477 (2005: £67,090). This
service agreement was terminated on 7 December 2005. In addition an underwriting
agreement between Minlay Limited in relation to the raising of shareholders
funds resulted in a payment of £9,500 to Minlay Limited during the year. As at
31 March 2006 £1,375 was due to Minlay Limited.
During the period Coronation General Partner III Limited paid £10,000 to Lloyd
Street Private Equity Limited, a company in which W M Robinson holds an
interest.
25 FINANCIAL INSTRUMENTS
The Group's financial instruments comprise borrowings, cash at bank and various
items such as debtors and creditors that arise directly from its operations. The
main purpose of these investments is to raise finance for operations. The Group
has not entered into any derivative transactions and does not trade in financial
instruments as a matter of policy.
The main future risk relates to interest rate risk as the Group currently
benefits from significant surplus cash available for short-term investment.
There is no currency risk as the Group trades in Sterling.
Operations to date have been financed through a placing of shares and
borrowings.
The Group has taken advantage of the exemption in Financial Reporting Standard
13 in respect of short-term debtors and creditors.
Notes
1. Copies of the Audited Accounts for the Six Months to 31 March 2006 and a
notice of the AGM will be posted to shareholders in June 2006.
END
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