Interim Results
EcoSecurities Group plc
07 September 2007
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ECOSECURITIES GROUP PLC
Interim Results for the six months ended 30 June 2007
Dublin, Ireland - EcoSecurities Group plc ("EcoSecurities", or the "Company"),
one of the world's leading companies in the business of sourcing, developing and
trading carbon credits from greenhouse gas emission reduction projects, today
announces its interim results for the six months ended 30 June 2007.
Highlights
• Further progress in origination - Clean Development Mechanism ("CDM")
portfolio gross contract volume increased to 178 million CERs at 30 June
2007 a net increase of 22 million CERs or 14% since year end 2006.
• On a net entitlement basis, adjusting for contract type, the CER portfolio
has grown by 29 million tonnes or 23% to 156 million tonnes at 30 June
2007.
• Significant project implementation progress - at 30 June 2007, 164 PDDs
were completed, 164 projects had been submitted to validation, 97 had
completed the validation process and 71 were registered with the CDM
Executive Board. .These results were achieved despite the continuing
challenges and delays related to the CDM project cycle.
• Of the 433 projects in the portfolio, 355 were financed, 127 were under
construction and 149 were operational.
• 34 million CERs had been sold forward at 30 June 2007, representing
expected total forward CER revenue of €410m and net trading margin of €181m
through to 2013.
• During the period, the Group generated first half revenues of €5.6m driven
by sales of CERs and the Group's initial VER sales which, combined,
totalled 90% of revenues.
• Strategic investment by Credit Suisse to underpin development of long term
relationship with Credit Suisse's energy franchise.
Current Trading and Outlook
• CDM portfolio gross contract volume increased to 185 million CERs at 5
September 2007 a net increase of 29 million CERs or 18.6% since year end
2006. In addition, the Group contracted projects expected to generate up to
6.8 million CERs, which have not yet been incorporated into the portfolio
pending completion of a CDM due diligence process.
• On a net entitlement basis, the CER portfolio has grown to 163.3 million
tonnes at 5 September 2007.
• At 5 September 2007, the number of projects submitted for validation had
increased to 215.
• The post-2012 CDM portfolio gross contract volume increased to 109.6
million CERs at 5 September 2007 increased from 86 million CERs reported in
May 2007. The post-2012 CDM portfolio volume relates to potential
production of CERs from the Group's projects after 2012 and is incremental
to the CDM portfolio.
• The Group has built its global VER portfolio at 5 September 2007 to 4.3
million tonnes, further adding to its carbon credit volumes.
• As the Group grows and expands operations into new markets, it is in the
process of adding to its senior management team.
• The Group's cash balance as of 5 September 2007 was approximately €130m,
which reflects proceeds of the Credit Suisse subscription in June and an
institutional placing in July.
Mark Nicholls, Chairman, commented: "EcoSecurities continued to make significant
progress in the first half of 2007, and further strengthened its leadership
position in the carbon markets. The Group continued to make progress in
developing its CDM carbon credit portfolio and initiated new activities to
expand into the voluntary carbon markets, the US market, project investments and
secondary trading of CERs. The Group's achievements during the period were
enhanced by further development of the carbon markets and strengthening prices
for carbon credits."
"The continued development of the carbon market and of the Group's operations to
date in 2007 gives the Board confidence for continued growth this year and
beyond."
Analyst Meeting
The Group is holding a meeting/conference call for analysts today at 0830 BST.
Analysts wishing to participate should contact Ged Brumby at Citigate Dewe
Rogerson on +44 (0)20 7638 9571 (ged.brumby@citigatedr.co.uk) for further
details.
For further information please contact:
EcoSecurities Group plc
Bruce Usher, CEO (07.09.07) +44 (0) 20 7638 9571
Pedro Moura Costa, COO and President (Thereafter) +353 1613 9814
Citigate Dewe Rogerson +44 (0) 20 7638 9571
Kevin Smith / Ged Brumby
Notes to Editors
CDM = Clean Development Mechanism, the provision of the Kyoto Protocol that
governs project level carbon credit transactions between developed and
developing countries
CER = Certified Emission Reduction, carbon credits created by Clean Development
Mechanism projects. One CER corresponds to 1 tonne of CO2e emission reductions
EU ETS = European Union Emissions Trading Scheme, a market based "cap and trade"
system for green house gases adopted by the European Union member states
EcoSecurities is one of the world's leading companies in the business of
originating, developing and trading carbon credits. EcoSecurities structures and
guides greenhouse gas emission reduction projects through the Kyoto Protocol,
working with both project developers and buyers of carbon credits.
EcoSecurities works with companies in developing and industrialising countries
to create carbon credits from projects that reduce emissions of greenhouse
gases. EcoSecurities has experience with projects in the areas of renewable
energy, agriculture and urban waste management, industrial efficiency, and
forestry. With a network of offices and representatives in 36 countries on five
continents, EcoSecurities has amassed one of the industry's largest and most
diversified portfolios of carbon projects.
EcoSecurities also works with companies in the developed world to assist them in
meeting their greenhouse gas emission compliance targets. Utilising its highly
diversified carbon credit portfolio, EcoSecurities is able to structure carbon
credit transactions to fit compliance buyers' needs, and has executed
transactions with both private and public sector buyers in Europe, North America
and Japan.
Working at the forefront of carbon market development, EcoSecurities has been
involved in the development of many of the global carbon market's most important
milestones, including developing the world's first CDM project to be registered
under the Kyoto Protocol. EcoSecurities' consultancy division has been at the
forefront of significant policy and scientific developments in this field.
EcoSecurities has been recognised as the world's leading greenhouse gas advisory
firm over the last five years by reader surveys conducted by Environmental
Finance Magazine.
EcoSecurities Group plc is listed on the London Stock Exchange AIM (ticker ECO).
Additional information is available at www.EcoSecurities.com.
Chairman's Statement
EcoSecurities continued to make significant progress in the first half of 2007,
and further strengthened its leadership position in the carbon markets. The
Group continued to make progress in developing its CDM carbon credit portfolio
and initiated new activities to expand into the voluntary carbon markets, the US
market, project investments and secondary trading of CERs. The Group's
achievements during the period were enhanced by further development of the
carbon markets and strengthening prices for carbon credits.
To expand its core business and develop new markets, EcoSecurities completed a
€100m equity financing with Credit Suisse and institutional investors in Europe
and the United States during June and July. The strategic relationship with
Credit Suisse is expected to provide opportunities for the Company and Credit
Suisse to globally co-operate on a broad range of projects focusing on, but not
limited to, carbon credit and emission reduction origination and trading. We
believe the relationship represents a significant endorsement of the strength of
EcoSecurities' business, strategy and track record.
External developments helped maintain a high profile for the problems of global
warming and underline the opportunities in the carbon markets. Substantially
tighter National Allocation Plans ("NAPS") proposed for Phase II of the EU ETS,
discussions on climate change at the G8 and pending legislation in the US, all
bode well for continued attention to, and growth in, the carbon markets.
Given the continued growth of the Group and its expansion plans both organically
and through acquisition, EcoSecurities intends to add to its senior management
team.
As part of this, announced today, Claire Heeley, formerly Company Secretary of
United Drug plc, assumes the role of Company Secretary based in Dublin with
immediate effect. Ms. Heeley is a Chartered Accountant and had previously served
with United Drug since 2002, and prior to that was with KPMG for several years.
Also, the Group intends to appoint a number of experienced non-executive
directors in due course to support the continued expansion of the business.
The continued development of the carbon market and of the Group's operations to
date in 2007 gives the Board confidence for continued growth this year and
beyond.
Executive Directors' Review for the six months ending 30 June 2007
The first half saw a further period of rapid growth and intensive development
activity in the carbon market. The Group's geographic reach and depth of
expertise enabled it to grow its CER portfolio by 22 million tonnes during the
first half, building on its industry leadership status. The Group's market
share remained significant, with 71 of the 722 projects registered by the CDM
Executive Board ("CDM EB") at 30 June 2007 being implemented by EcoSecurities,
despite the delays and challenges related to the CDM registration process. The
Group continued to commercialise its carbon credit portfolio, selling forward a
further 5 million CERs during the period, which is expected to generate an
additional €28m in net trading margins for the Group. Costs and cash controls
remain a key focus for the Group.
The Group began to expand into related markets, leveraging its strong reputation
and track record. Progress was made in developing business within the US and
international voluntary carbon markets, in building a post-2012 carbon credit
portfolio, in secondary CER trading, and project investments.
Origination
During the period, the Group brought 80 new projects into its CDM portfolio and
by the end of June 2007, there were 433 projects capable of generating 178
million tonnes of CERs through 2012. In line with the Group's policy of
continually assessing the projects within the portfolio for expected CER
generation, this total takes into account volume adjustments. As projects
progress through the CDM implementation cycle and begin operating, an increased
amount of information becomes available to support estimates of project volumes
and individual project performance. The CDM project portfolio remains highly
diversified by geography, technology and CDM methodology. Projects were located
in 36 countries and encompassed 18 different technologies at period end.
On a net basis to EcoSecurities, adjusting for contract type (principal, project
development or agency), the portfolio grew from 127 million tonnes to 156
million tonnes.
Further progress was made in developing new markets during the period,
particularly in the Middle East and Eastern Europe. The Group established a
presence in Kiev, Bern and Tokyo during the first half. After opening an office
in the Middle East in late 2006, the Group entered a strategic partnership with
the Dubai Multi Commodities Centre ("DMCC") to develop CDM projects in the
region. So far this year, the performance of Group offices in China, Africa and
Mexico has been particularly strong.
The strategic relationship with Credit Suisse is expected to bolster origination
efforts through Credit Suisse's extensive network of clients, and provides a
facility for the origination of emission reduction projects of up to €1.0bn,
offering a credit support structure for EcoSecurities to contract projects which
previously were unattainable.
The Group has (i) built upon its post-2012 CDM portfolio, (ii) entered the
voluntary market and began to contract US and international VERs, and (iii)
acquired (1) million CERs in the secondary market, all of which are in addition
to building the core CDM portfolio to 178 million CERs.
Implementation
Despite numerous delays experienced in external validation of projects,
obtaining host country approval and the processing of projects by the CDM EB,
the number of projects registered by the Group increased from 53 to 71 during
the first half of the year, making it the largest portfolio of registered
projects in the world. These registered projects are capable of producing 22
million CERs by 2012 which is up by 6 million CERs since year end.
At period end, 164 projects had completed Project Design Documents ("PDDs"), 97
had been validated and 128 had received Host Nation Approval. A total of 149
projects in EcoSecurities portfolio were operating at 30 June 2007, 127 were in
construction and a total of 355 were financed.
Key highlights of the CDM project implementation process for the Group included
the registration of Al-Shaheen, the first gas flaring capture project in the
Middle East, located offshore of Qatar, and the Company's first project
registrations in Thailand after the Thai government issued its first project
approvals.
Furthermore, VERs from CDM projects yet to be registered were verified during
the first half for sale to voluntary market buyers. This opens a new window of
market opportunity for the Company from its existing CDM portfolio and helps
allay the problem of delays in the CDM registration process.
Commercialisation
The Group continued to make progress in the commercialisation of CERs in the
period. A total of 34 million CERs had been sold forward at 30 June 2007, up
from 29 million at the end of 2006. This represents expected total forward CER
revenues of €410m and net trading margin of €181m through 2013. The Group's
sales of CERs were intentionally restricted earlier in the year due to lower CER
prices, but sales increased along with higher CER prices later in the period.
CER prices strengthened in the second quarter of 2007, after a weak start to the
year. Substantially tighter EU ETS Phase II NAPs were largely completed in the
second quarter, with only seven smaller nations continuing to negotiate with the
EU. These countries are proposing incremental emission allowance allocations
representing 4% of the maximum annual amount of allowances that could be issued
by the EU.
Demand for both CERs and VERs from voluntary buyers has grown both in Europe and
the United States. The Group made its first VER sales during the first half.
Voluntary buyers are also purchasing CERs to offset their carbon footprint,
generating stronger pricing than compliance related purchases in the EU and
Japan.
The UNFCCC's International Transaction Log (ITL), the central hub of the
settlement system which will deliver traded allowances from seller to buyers, is
now expected to be launched in December 2007. When the ITL launches, and as the
volume of issuance of CERs from registered projects increases, the growth of
trading in the secondary market is expected to increase significantly with the
improved transferability of CERs. The Group is well positioned to take
advantage of this with its ability to trade with project operators quickly and
efficiently in most CDM countries.
Investment
The Group's investment activities continued to expand in 2007 with commitments
for up to an additional €3 million being agreed during the first half. The
investments made primarily take the form of secured, advance payments for CERs
which enable the Group to increase its CER production as well as providing an
attractive return on capital. Investments in projects also continued to grow
during the period, with the Group committing to fund further N2O projects
alongside landfill gas and small hydro projects. Additional resources are being
deployed to increase the scope of emission reduction related investment and
business development opportunities generated through the Group's worldwide
market presence.
Consulting
As announced previously, the Group acquired the business of Trexler Climate +
Energy Services ("TC+ES"), an internationally recognised leader in the emerging
field of climate change risk management, which was merged with EcoSecurities'
existing Consulting group to create EcoSecurities Global Consulting Services
division. Simultaneously, the Consulting group is evolving from a business with
a sole emphasis on CDM project documentation and methodology development for
external clients, to one which will in the future focus much more intensively
on: 1) participating in relevant public policy debates; 2) using corporate
strategy consulting to establish key relationships for EcoSecurities going
forward; and 3) serving as an internal intelligence management function. It will
also continue to support the Group's other business units as it has in the past.
Financial
Income statement
Group revenue rose to €5.6m for the first half of 2007, €4.8m was derived by the
sale of 283,200 CERs, acquired via the Group's primary and secondary CER
portfolio, and 37,500 VERs. Consulting revenue during the first half of 2007 was
lower than expected due to the focus on internal CDM project implementation and
the change in focus of the consulting unit. Gross margins on carbon credit
sales were 33% during the period reflecting a mix of costs and pricing for CERs
and VERs in relation to the Group's core CDM, secondary trading and voluntary
market activities.
Administrative expenses during the period grew to €14.7m from €9.1m in 2006 and
were in line with management's expectations, and reflecting the costs and
investments made in continuing to build and operate the Group's worldwide
network. The primary business expense related to staff and associated costs, as
headcount increased 63% to 260 at 30 June 2007 from 160 at 30 June 2006.
Financing income totalled €1.2m, which represented interest earned on short-term
bank deposits. Financing costs totalled €0.7m, which were comprised of interest
on short term debt and unrealised foreign exchange differences on the Group's
financial assets and liabilities. While the Group as a whole operated at a loss,
it incurred a tax charge of €1.1m during the first half due to taxes at the
subsidiary company level. The net loss increased to €13.2m in 2007 from €8.7m
in 2006 which resulted from higher costs of continued growth and higher levels
of activity.
Balance sheet
Intangible assets increased by €1.1m during the year reflecting the Group's
policy of capitalising identifiable costs of CDM project implementation and
project investments. These costs are then amortised based on expected future
CER flows from the projects to which they relate.
229,000 CERs were either verified or verified and issued during the first half
and remained in inventory at the end of the period. Current and non current
trade receivables of €7m reflect amounts relating to sales of CERs in the
current and prior period pending the establishment of the International
Transaction Log to complete settlement of these sales. The balance of trade
receivables pertain to receivables from the consulting business of €0.2m,
advance payment for the purchase of CERs of €0.8m and other receivables related
to business operations of €2.8m..
In total during the first half, 21 CDM project investments were made in China,
Mexico, Indonesia and Tunisia with commitments amounting to €3m which increased
both fixed assets and receivables. Completed investments in project related
equipment totalled €0.7m. A further €1.2m was invested in project related
transactions to secure the rights to CERs. The number of projects and CERs
which the Group has secured without the need for upfront payments has been
greater than anticipated during the period which has conserved capital
resources.
The cash balance at 30 June 2007 was € 79.9m, reflecting the €44m Credit Suisse
subscription which closed at the end of the period. As previously noted, a
further €54m placement was completed in July, shortly after the period end.
Cash flow
The development of the Group's overseas operations resulted in operating cash
outflows of €20.6m during the first half. A portion of CDM project
implementation activities resulted in cash outflows of €0.9m which were
capitalised. The remaining cash outflow from investing activities totalled €1.3m
which consisted of other project related investments, costs due to the expansion
of the Group's infrastructure and the acquisition of TC+ES. In respect of
financing cash flows, the Group raised new equity of €44m from Credit Suisse
during the period, as discussed above.
Current Trading
CDM portfolio gross contract volume had increased to 185 million CERs at 5
September 2007, a net increase of 29 million CERs or 18.6% since year end 2006.
On a net entitlement basis, the CER portfolio has grown by 36 million tonnes or
28% to 163 million tonnes at 5 September 2007. Project origination has been
particularly successful in China, the Middle East and Africa in the renewable
energy and fuel switch sectors over recent months. Also, a contract with PLN,
the national utility company in Indonesia, for geothermal and hydro projects was
announced in August.
Despite increasing competition for larger projects, the Group has maintained its
origination success and continues to build a good origination pipeline.
As at 5 September 2007, 222 PDDs were completed, 215 projects had been submitted
for validation, 102 had completed the validation process and 74 were registered
with the CDM Executive Board. Of the 456 projects in the portfolio, 382 were
financed, 294 were under construction and 145 were operational
The Company's first N2O abatement project in China has commenced carbon credit
generation after the completion of baseline monitoring. This project is one of
EcoSecurities' largest N2O projects and is expected to produce 2.3 million CERs
by the end of 2012. Several other projects are progressing through the baseline
determination process at present.
To date EcoSecurities has pre-sold 35 million CERs, predominantly to large
corporate and government buyers. The expected net trading margin on current
forward CER sales of 35 million tonnes now totals €191m. While pricing has been
strong over the summer at an average of €16 for the Company, volumes have been
seasonally low.
Recently, CER prices have been increasing in relation to European Allowance
prices. Substantially tighter National Allocation Plans proposed for Phase II
of the EU ETS, and the fact that many EU ETS regulated companies are considering
swapping their capacity to utilise CERs for compliance obligations in exchange
for their EUA allocations, have contributed to this positive trend.
The post-2012 CDM portfolio gross contract volume increased to 109.6 million
CERs at 5 September 2007, a net increase of 24 million since May 2007. This
reflects efforts by the Group to contract for post-2012 volumes from both
existing and new projects.
The Group had built its global VER portfolio at 5 September 2007 to 4.3 million
tonnes, further adding to its carbon credit volumes. The portfolio is comprised
of pre-registration CDM projects and US projects, predominantly in the methane
capture and industrial gas abatement sectors. The voluntary market is also
growing due to interest on the part of non-regulated corporate buyers in Europe
and through pre-compliance demand in the US.
In view of growth in the market, and following the financing in June and July,
EcoSecurities has begun to devote additional resources to expansion into new
markets for VERs, secondary CER trading and to expand its investment and
acquisition related activities the result of which will be a small increase in
the cost base for the year.
Outlook
Prospects for the remainder of 2007 are positive, given the Group's leading
position in the carbon market, strong financial resources and strategic
relationships. The Group's core business model - the global origination,
implementation and commercialisation of carbon credits under the CDM - continues
to concentrate on the considerable opportunities available. The Group intends to
continue to grow the volumes of carbon credits contracted and to consider
acquisitions, which would add further scale to its diversified portfolio.
Furthermore, as highlighted at the time of the recent fundraising, EcoSecurities
intends to make further investments in US market expansion, secondary CER
trading, voluntary markets and emission reduction and clean energy project
investments.
CONSOLIDATED INCOME STATEMENT
6 months to 30 6 months to 30 Year to
June June 31 Dec
2007 2006 2006
(Unaudited) (Unaudited) (Audited)
€000 €000 €000
Revenue 5,593 841 3,073
Cost of sales (3,491) (542) (1,374)
Gross profit 2,102 299 1,699
Administrative expenses
General (14,656) (9,359) (22,998)
IPO preparation expenses - 277 277
Total (14,656) (9,082) (22,721)
Loss before financing costs (12,554) (8,783) (21,022)
Financing costs (713) (853) (856)
Finance income 1,238 1,237 2,405
Loss before tax (12,029) (8,399) (19,473)
Income tax expense (1,157) (259) (573)
Loss for the period (13,186) (8,658) (20,046)
Loss all attributable to:
Equity holders of the Company (13,186) (8,658) (20,046)
(13,186) (8,658) (20,046)
Earnings per share
Basic and fully diluted (14.16) (9.40) (21.74)
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND
EXPENSE
6 months to 6 months to Year to
30 June 30 June 31 Dec
2007 2006 2006
(Unaudited) (Unaudited) (Audited)
€'000 €'000 €'000
Loss for the period (13,186) (8,658) (20,046)
Currency translation reserve movement (163) 47 (22)
Total recognised income and expense for the
period (13,349) (8,611) (20,068)
Attributable to:
Equity holders of the Company (13,349) (8,611) (20,068)
(13,349) (8,611) (20,068)
CONSOLIDATED BALANCE SHEET 6 months to 6 months to Year to
30 June 30June 31 Dec
2007 2006 2006
(Unaudited) (Unaudited) (Audited)
Assets €'000 €'000 €'000
Non-current assets
Intangible fixed assets 4,550 450 3,412
Property, plant and equipment 3,450 890 2,463
Trade and other receivables 5,031 1,072 531
Total non-current assets 13,031 2,412 6,406
Current assets
Stock and work in progress 2,670 48 -
Trade and other receivables 5,808 2,300 5,020
Cash and cash equivalents 79,902 70,933 60,452
Total current assets 88,380 73,281 65,472
Total assets 101,411 75,693 71,878
Shareholders' equity
Issued capital 256 231 232
Share premium 118,908 76,410 76,446
Share based payment reserve 1,058 426 663
Currency translation reserve (237) (5) (74)
Other reserves (573) (573) (573)
Retained earnings (38,195) (13,631) (25,009)
Total equity 81,217 62,858 51,685
Liabilities
Non-current liabilities
Interest bearing loans and borrowings - 8,166 -
Trade and other payables 3,409 - 3,040
Deferred tax liabilities 58 4 58
Total non-current liabilities 3,467 8,170 3,098
Current liabilities
Interest bearing loans and borrowings 7,559 - 7,582
Trade and other payables 7,685 4,420 8,885
Current tax creditors 1,483 245 628
Total current liabilities 16,727 4,665 17,095
Total liabilities 20,194 12,835 20,193
Total equity and liabilities 101,411 75,693 71,878
CONSOLIDATED CASH FLOW STATEMENT
6 months to 6 months to Year to
30 June 30 June 31 Dec
2007 2006 2006
(Unaudited) (Unaudited) (Audited)
€'000 €'000 €'000
Loss for the financial period/year (13,186) (8,658) (20,046)
Income tax expense 1,157 259 573
Finance income (1,239) (1,237) (2,405)
Finance costs 713 853 856
Depreciation and amortisation 374 71 252
Project costs transferred to inventory - - 125
Change in stock (2,399) (48) -
Change in trade and other receivables (5,558) (1,157) (3,981)
Change in trade and other payables (923) 2,045 9,626
Profit on disposal of fixed assets - - 140
Share based payment 394 138 385
Foreign exchange differences (244) 59 (294)
Interest paid (404) (209) (428)
Interest received 1,016 1,231 2,170
Tax (paid)/refunded (302) (128) -
Net cash outflow from operating activities (20,601) (6,781) (13,027)
Cash flows from investing activities
Acquisition of businesses (185) - -
Project advances and development expenditure - (895) -
Purchase of property, plant and equipment (1,213) (809) (2,673)
Purchase of intangible fixed assets (798) (370) (3,487)
Net cash outflow from investing activities (2,196) (2,074) (6,160)
Cash flows from financing activities
Gross proceeds from the issue of ordinary share 43,618 48 85
capital
Share sale transaction costs (1,319) - -
Admission costs paid - (2,200) (2,222)
Repayment of borrowings - - (300)
Net restricted cash deposits (8,722) (6,916) (5,824)
Net cash (used)/generated in financing activities 33,577 (9,068) (8,261)
Net change in cash and cash equivalents 10,780 (17,923) (27,448)
Cash and cash equivalents at start of period 54,045 82,565 82,565
Foreign exchange on cash and cash equivalents (52) (1,208) (1,072)
Cash and cash equivalents at end of period 64,773 63,434 54,045
NOTES TO THE FINANCIAL INFORMATION
1. General information
EcoSecurities Group plc and its subsidiaries (together the Group) originate,
trade, develop and invest in emission reduction projects. The Group also offers
consulting and advisory services. It operates through a global network of
subsidiaries, branch offices and representatives.
2. Basis of preparation
The information in this document does not include all of the disclosures
required by International Financial Reporting Standards in full annual statutory
accounts and it should be read in conjunction with the Group's annual financial
statements for the year ended 31 December 2006.
The accounting policies adopted are consistent with those followed in the
preparation of the Group's annual financial statements for the year ended 31
December 2006.
3. Share capital
In the period to 30 June 2007 the number of shares in issue increased by
9,917,082 to 102,574,370, reflecting the purchase of shares by Credit Suisse,
the exercise of employee share options and the issue of shares to the vendors of
Trexler Climate + Energy Services (note 6.).
4. Reserves
Currency Share based Other Retained
translation payment reserves earnings
reserve reserve
€'000 €'000 €'000 €'000
At 1 January 2007 73.9 (663.5) 572.6 25,009.2
Loss for the period - - - 13,185.9
Foreign exchange translation differences 163.2 - - -
Employee share option scheme - value of services
provided - (394.0) - -
At 30 June 2007 237.1 (1,057.5) 572.6 38,195.1
ECOSECURITIES GROUP PLC
NOTES TO THE FINANCIAL INFORMATION
5. Cash and cash equivalents
6 months to 6 months to Year to
30 June 30 June 31 Dec
2007 2006 2006
(Unaudited) (Unaudited) (Audited)
€'000 €'000 €'000
Cash at bank and in hand 9,940 2,210 4,410
Short-term deposits 54,833 61,224 49,635
Cash and cash equivalents for the 64,773 63,434 54,045
purposes of the cash flow statement
Restricted cash 15,129 7,499 6,407
Cash and cash equivalents 79,902 70,933 60,452
6. Acquisition of Trexler Climate + Energy Services
On 27 February 2007, a subsidiary company agreed to acquire the trade and assets
of Trexler Climate + Energy Services Incorporated, a company incorporated in the
United States, for a consideration comprising cash and shares in EcoSecurities
Group plc partially conditional on the future performance of the business.
Assets valued at $625k were acquired for consideration of $250k in cash and the
balance in shares in EcoSecurities plc.
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