Final Results

Ethanol Investments PLC 29 June 2007 Ethanol Investments plc ('EI' or 'the Company') Final results for the twelve months ended 31 December 2006 The Board of Ethanol Investments plc ('EI' or the 'Company'), the AIM-quoted bio-fuels investment company, is pleased to announce its final results for the twelve months ended 31 December 2006. Highlights • Change of name for the Company to Ethanol Investments plc • Change of investment strategy to focus on building a broad portfolio of businesses within the ethanol industry, primarily in North America and Europe • First investment made, highlighting ability of the company to source attractive international investment opportunities. • Investment in TMO Renewables Limited ('TMO'), a world leader in novel ethanol fermentation technology for a total consideration of approximately £500,000. The subscription is part of a pre-IPO placing by TMO • Careful cash control resulted in net cash of £695,000 as at 31st December 2006 • Pre- and post-tax loss of £213,000 in the period ending 31st December 2006 Peter Greensmith, Chairman of Ethanol Investments plc comments: 'Your Board is pleased with the progress being made by our first investment, TMO Renewables, towards its stated goal of an Initial Public Offering on AIM. We continue to explore several other similar investment opportunities, and shareholders can expect news on the outcome of these discussions over the next quarter.' Chairman's Statement 2006 has been a busy year for your Company. At the end of the period, following an extensive period of due diligence, your Company agreed to make it's first investment since our change of strategy was announced in June last year, TMO Renewables. I am pleased to report that TMO has made meaningful commercial and financial progress since the announcement of our stake purchase, with further capital being raised by the Company, completing its pre-IPO funding requirements. We are increasingly confident that this investment will deliver a substantial return in the near future. On the wider front, your Board continues to explore several other investment opportunities in the ethanol services market. However, valuations still remain, in your Board's opinion, unrealistically high, and have failed to adjust to reflect the corrections in valuation and outlook which we have seen in the wider ethanol production marketplace, particularly in the United States. Your Board believes that such valuation imbalances may correct themselves over the near-term, particularly if the US ethanol market remains under sustained feedstock pricing pressures. However, we are determined not to stand still and await such developments. Your Board has thus extended its focus, to seek additional investments in the broader cleantech, renewable energy sector. I am pleased to report that we are presently undertaking due diligence in connection with a possible acquisition of a portfolio of assets in the cleantech sector. Should any such investments be made, as well as seeking your approval for any refinement in investment strategy, I can assure shareholders that they will be of the same quality and international standing as that of TMO. Results The profit and loss account shows the loss for the period. During the period under review, and until the completion of the next round of investments, your Board has also ensured that costs within the business remain under strict control, with directors taking no salaries or fees. The directors do not recommend the payment of a dividend for the period. Directors' Report for the year ended 31 December 2006 The Directors present their report and the financial statements for the year ended 31 December 2006. The financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') for the first time. Change of name The Company changed its name from Enition Plc to Ethanol Investments Plc on 1 August 2006. Principal activity The principal activity of the Company is investment. Business review A review of the business and future developments can be found in the Chairman's Statement on page 2. Results for the year and dividends The loss for the year after taxation was £213,000 (2005: £303,000). The Directors do not recommend the payment of a dividend. Post balance sheet events In January 2007, the Company invested £500,000 in TMO Renewables Limited, a company that is a world leader in ethanol fermentation technology. The Company's shareholding represents less than 5% of TMO's total issued share capital. Directors The Directors during the year were: P J Greensmith J H Stirling J A C Teichman (resigned 25 July 2006) E V Myers (resigned 25 July 2006) Directors' interests The Directors who held office at 31 December 2006 had the following interests in the Company's shares: At 31 December 2006 At 31 December 2005 Ordinary shares of 0.0025p Ordinary shares of 0.0025p P J Greensmith 25,144,370 25,144,370 J H Stirling 25,144,370 25,144,370 Supplier payment policy The Company's policy is to agree terms of payment with suppliers when agreeing the terms of each transaction and then to abide by the terms of payment. Trade creditor days at the end of 2006 were 75 days (2005: 43 days). Financial risk management Details of the Company's financial instruments and its policies with regard to financial risk management are given in note 17. Disclosure of information to auditors The Directors who were in office on the date of approval of these financial statements have confirmed that, as far as they are aware, there is no relevant audit information of which the auditors are unaware. Each of the directors have confirmed that they have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditors. Auditors Nexia Smith & Williamson, who were appointed auditors during the year following the resignation of Horwath Clarke Whitehill LLP, have expressed their willingness to continue in office and a resolution to re-appoint them will be proposed at the next Annual General Meeting. Approved by the board of directors and signed on behalf of the board Jonathan Bradley-Hoare Secretary 28 June 2007 Corporate governance statement for the year ended 31 December 2006 The requirements of the Combined Code of corporate governance set out in the listing rules of the Financial Services Authority are not mandatory for companies traded on AIM. However, the Directors have considered and adopted the requirements where they have been considered them appropriate. Board of Directors and Board Committees The Board of Directors is responsible for the Company's system of corporate governance. The role of the non-executive directors is to bring their judgement to Board discussions and decisions. The Board met regularly throughout the year. It has a schedule of matters referred to it for decision, which includes strategy and future developments, allocation of financial resources, investments, annual and interim results, and risk management. The Company has two Board committees, which operate within defined terms of reference. Audit Committee The Audit Committee reviews half year and full year results. In addition, the Audit Committee monitors the framework of internal control. Remuneration Committee The Remuneration Committee reviews the remuneration of the Board and considers the grant of options and payment of performance related bonuses. Internal financial control The Directors are responsible for ensuring that the Company maintains a system of internal financial control to provide them with reasonable assurance regarding the reliability of financial information used within the business and that the assets are safeguarded. There are inherent limitations in any system of internal financial control. On the basis that such a system can only provide reasonable but not absolute assurance against material misstatement or loss and that it relates only to the needs of the business at the time, the system as a whole was found by the directors at the time of approving the accounts to be generally appropriate to the size of the business. Going concern The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and they have therefore adopted a going concern basis in preparing the accounts. Statement of directors' responsibilities. The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable United Kingdom law and the International Financial Reporting Standards (IFRS) as adopted by the European Union. The Directors are required to prepare financial statements for each financial year which present fairly the financial position of the Company and the financial performance and cash flows of the Company for that period. In preparing those financial statements, the Directors are required to: - select suitable accounting policies and then apply them consistently; - present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; - provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and - state that the Company has complied with IFRS, subject to any material departures disclosed and explained in the financial statements. The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors confirm that they have complied with these requirements and, having a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, continue to adopt the going concern basis in preparing the financial statements. Approved by the board of directors and signed on behalf of the board Jonathan Bradley-Hoare Secretary 28 June 2007 Independent auditors' report to the shareholders of Ethanol Investments plc We have audited the financial statements of Ethanol Investments plc for the year ended 31 December 2006 which comprise the Income Statement, the Balance Sheet, the Statement of Changes in Equity, the Cash Flow Statement and the related notes 1 to 18. These financial statements have been prepared under the accounting policies set out therein. This report is made solely to the Company's members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of directors and auditors As described in the Statement of Directors' Responsibilities the company's directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and International Financial Reporting Standards (IFRS) as adopted by the European Union applied in accordance with the provisions of the Companies Act 1985. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985. We report to you whether in our opinion the information given in the Directors' Report is consistent with the financial statements. We also report to you if, in our opinion, the Company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if the information specified by law regarding Directors' remuneration and transactions with the company is not disclosed. We read other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. This other information comprises only the Directors' Report and the Chairman's Statement. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information. Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Company's circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. Opinion In our opinion: •the financial statements give a true and fair view, in accordance with IFRS as adopted by the European Union and applied in accordance with the provisions of the Companies Act 1985, of the state of the Company's affairs as at 31 December 2006 and of the Company's loss for the year then ended; •the financial statements have been properly prepared in accordance with the Companies Act 1985; and •the information given in the Directors' Report is consistent with the financial statements. Nexia Smith & Williamson 25 Moorgate Chartered Accountants London Registered Auditors EC2R 6AY Date Income Statement for the year ended 31 December 2006 2006 Restated 2005 Notes £'000 £'000 Revenue - - Administrative expenses (249) (279) ------ -------- Operating loss 2 (249) (279) Interest receivable 5 36 1 Interest payable 5 - (25) ------ -------- Loss before taxation (213) (303) Taxation 6 - - ------ -------- Loss attributable to equity shareholders (213) (303) ====== ======== Earnings per share Basic and fully diluted loss per share 7 (0.02p) (0.09p) The operating loss in both years arises from the Company's continuing operations. Balance Sheet As at 31 December 2006 2006 Restated 2005 Notes £'000 £'000 Current Assets Trade and other receivables 8 15 3 Cash and cash equivalents 9 695 925 ---------- --------- Total assets 710 928 Current liabilities Trade and other payables 10 (76) (81) ---------- --------- Net Current Assets 634 847 ---------- --------- Net Assets 634 847 ---------- --------- Equity Share capital 11 538 538 Share premium account 12 1,952 1,952 Share based payments reserve 106 106 Accumulated losses 12 (1,962) (1,749) ---------- --------- Total equity 634 847 ---------- --------- The financial statements on pages 9 to 23 were approved by the Board of Directors and authorised for issue on 28 June 2007, and signed on its behalf by: Peter Greensmith Director Statement of changes in equity for the year ended 31 December 2006 Share Capital Share Share Accumulated Total Ordinary Deferred Premium Based Losses Account Reserves £'000 £'000 £'000 £'000 £'000 £'000 Balance at 31 December 2004 508 - 612 - (1,446) (326) ---------- ------ Loss for the - - - - (303) (303) year ---------- ------ ---------- ------ Cost of share based payments - - - 106 - 106 Reclassification (503) 503 - - - - of shares Share issues 30 - 1,340 - - 1,370 -------- -------- -------- -------- ---------- ------ Balance at 31 December 2005 35 503 1,952 106 (1,749) 847 ---------- ------ Loss for the - - - - (213) (213) year ---------- ------ -------- -------- -------- -------- ---------- ------ Balance at 31 December 2006 35 503 1,952 106 (1,962) 634 ======== ======== ======== ======== ========== ====== Cash Flow Statement for the year ended 31 December 2006 2006 2005 Notes £'000 £'000 Net cash used in operating activities 13 (266) (78) Cash flow from investing activities Interest received 36 1 --------- --------- Cash flow from financing activities Issue of ordinary share capital - net proceeds - 926 Loans received - 42 --------- --------- Net cash flow from financing activities - 968 --------- --------- Net (decrease)/increase in cash and cash equivalents (230) 891 Cash and cash equivalents at 1 January 925 34 --------- --------- Cash and cash equivalents at 31 December 695 925 ========= ========= Notes to the financial statements for the year ended 31 December 2006 1. Accounting policies The principal accounting policies are summarised below. They have all been applied consistently throughout the period covered by these financial statements. Basis of preparation The financial information has been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union applied in accordance with the provisions of the Companies Act 1985for the first time. The disclosures required by IFRS 1 concerning the transition from UK GAAP to IFRS are given in note 18. The financial statements have been prepared under the historical cost convention. Critical accounting judgements and key sources of estimation and uncertainty The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgements that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Share based payments In determining the fair value of equity settled share based payments and the related charge to the income statement, the Company makes assumptions about future events and market conditions. In particular, judgement must be made as to the likely number of shares that will vest, and the fair value of each award granted. The fair value is determined using a valuation model which is dependent on further estimates, including the Company's future dividend policy, employee turnover, the timing with which options will be exercised and the future volatility in the price of the Company's shares. Such assumptions are based on publicly available information and reflect market expectations and advice taken from qualified personnel. Different assumptions about these factors from those made by the Company could materially affect the reported value of share based payments. New standards and interpretations At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been applied in these financial statements were in issue but not yet mandatorily effective: Effective for accounting periods beginning on or after: IFRS 7 Financial Instruments : 1 January 2007 Disclosures IFRS 8 Operating Segments 1 January 2009 IAS 1 Amendment - Presentation of 1 January 2007 Financial Statements: Capital Disclosures IFRIC IFRS 2 Group and treasury share 1 March 2007 11 transactions In addition, the International Financial Reporting Interpretations Committee ('IFRIC') have issued the following interpretations that are not applicable to the Company: IFRIC 7 Applying the restatement approach under IAS 29 IFRIC 9 Re-assessment of embedded derivatives IFRIC 12 Service concession arrangements Upon adoption of IFRS 7, the Company will have to disclose additional information about its financial instruments, their significance and the nature and extent of risks to which they give rise. More specifically the Company will need to disclose the fair value of its financial instruments and its risk exposure in greater detail. There will be no effect on reported income or net assets. The Directors do not anticipate that the adoption of the other standards and interpretations listed above will have a material impact on the Company's financial statements in the period of initial application. Taxation The tax expense represents the sum of the tax currently payable and any deferred tax. The tax currently payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for income tax is calculated using tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all chargeable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction which affects neither the tax profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised. Deferred tax is charged or credited in the income statement, except when it relates to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on the net basis. Share-based payments The cost of share-based employee compensation arrangements, whereby employees receive remuneration in the form of shares or share options, is recognised as an employee benefit expense in the income statement. The total expense to be apportioned over the vesting period of the benefit is determined by reference to the fair value (excluding the effect of non market-based vesting conditions) at the date of grant. The assumptions underlying the number of awards expected to vest are subsequently adjusted for the effects of non market-based vesting to reflect the conditions prevailing at the balance sheet date. Fair value is measured by the use of the Black-Scholes model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of the non-transferability, exercise restrictions and behavioural considerations. Financial instruments Financial assets and financial liabilities are recognised on the balance sheet when the Company becomes a party to the contractual provisions of the instrument. Trade and other receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest method. A provision is established when there is objective evidence that the Company will not be able to collect all amounts due. The amount of any provision is recognised in the income statement. Cash and cash equivalents are defined as cash held in bank current accounts and in short term interest bearing deposit accounts with an original maturity of three months or less. Trade and other payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Financial liabilities and equity instruments issued by the Company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. 2. Operating Loss 2006 2005 Loss from operations has been arrived at after charging: £ £ Intellectual property impairment - 17 Auditors' remuneration 7 7 ======== ======== 3. Auditors' fees and expenses The analysis of auditors' remuneration is as follows: 2006 2005 £'000 £'000 Fees payable to the Company's auditors for the audit of the Company's financial statements 7 7 ======== ======== 4. Employees During the year ended 31 December 2006 the company had 1 employee (2005 None). Directors emoluments 2006 2005 £'000 £'000 Wages & Salaries 18 18 Share based payments - 106 Social Security Costs 2 - -------- -------- 20 124 ======== ======== No director was accruing benefits under a pension scheme. 5. Finance costs and investment revenues 2006 2005 £'000 £'000 Interest payable on loan finance - 25 ======== ======== Bank interest receivable 33 1 Other interest receivable 3 - -------- -------- 36 1 ======== ======== 6. Taxation 2006 2005 £'000 £'000 Tax charge for the year Current tax - - Deferred tax - - -------- -------- - - ======== ======== The difference between the total tax expense shown above and the amount calculated by applying the standard UK corporation tax to the loss before tax is as follows: Loss before taxation (213) (303) -------- -------- Tax on loss on ordinary activities at the applicable rate of 30% (64) (91) (2005: 30%) Effects of: Unutilised tax losses 64 91 -------- -------- Total tax expense for the year - - ======== ======== The Company has unutilised tax losses of approximately £510,000 at December 2006 (2005: £300,000). The Company has not recognised a deferred tax asset in respect of these losses as there is insufficient evidence of future taxable profits. 7. Earnings per share 2006 2005 £'000 £'000 Loss for the purpose of basic and diluted loss per share (213) (303) Number of shares: Weighted average number of ordinary shares in issue during the year 1,402,491,371 341,077,882 Basic and fully diluted loss per share (0.02p) (0.09p) 8. Trade and other receivables 2006 2005 £'000 £'000 Other debtors 10 - Prepayments and accrued income 5 3 --------- --------- 15 3 --------- --------- 9. Cash and cash equivalents 2006 2005 £'000 £'000 Cash at bank 80 265 Short-term bank deposits 615 660 -------- -------- 695 925 -------- -------- 10. Trade and other payables 2006 2005 £'000 £'000 Trade creditors 69 19 Accruals and deferred income 7 62 -------- -------- 76 81 -------- -------- 11. Called up share capital Authorised: Number Class Nominal 2006 2005 value £'000 £'000 39,872,727,780 Ordinary 0.0025p 997 997 20,127,272,220 Deferred Ordinary 0.0025p 503 503 -------- -------- 1,500 1,500 -------- -------- Allotted, issued and fully paid 1,402,491,371 Ordinary 0.0025p 35 35 20,127,272,220 Deferred Ordinary 0.0025p 503 503 -------- -------- 538 538 -------- -------- Deferred shares carry no rights to dividends, carry no right to attend or vote at general meetings and are only entitled to receive capital on the winding up or other return of capital after payment to ordinary shareholders of paid up capital, dividends and £10,000,000 in respect of each ordinary share. Share options On 4 September 2003 the Company granted options over a total of 2,500,000 ordinary shares at an exercise price of 1p per share to J M Edelson, E V Myers and I Aspinall. The options are exercisable at any time before 19 August 2013 On 19 January 2004 the Company granted options over a total of 1,364,878 ordinary shares at an exercise price of 5p per share to A Finn and A J Leon. The options are exercisable at any time prior to 18 January 2014 On 21 October 2005 the Company granted options over a total of 117,842,505 ordinary shares at an exercise price of 0.11p per share to P J Greensmith, J H Stirling, J A C Teichman and E V Myers. The options are exercisable at any time before 21 October 2015 whilst the holder is a director or employee of the Company or any of its subsidiaries. During the year 23,568,501 of these options lapsed and 94,274,004 remain exercisable. 12. Reserves Profit and loss Share based payment Share account reserve premium £'000 £'000 £'000 At 1 January 2005 (1,446) - 612 Loss for the year (303) - - Arising on share issues - - 1,340 Cost of share based payments - 106 - --------- --------- --------- At 31 December 2005 (1,749) 106 1,952 At 1 January 2006 (1,749) - 1,952 Loss for the year (213) - - Cost of share based - - - payments --------- --------- --------- At 31 December 2006 (1,962) 106 1,952 ========= ========= ========= 13. Reconciliation of operating profit to net cash flow from operating activities 2006 2005 £000 £000 Operating loss (249) (279) Intellectual property impairment - 17 Expenses satisfied by the issue of shares - 47 Cost of share based payments - 106 Increase in receivables (12) (2) (Decrease)/increase in payables (5) 33 -------- -------- Net cash flow absorbed by operating activities (266) (78) ======== ======== 14. Related party transactions Key management are those persons having authority and responsibility for planning, controlling and directing the activities of the Company. In the opinion of the Board, the Company's key management are the directors of Ethanol Investments plc. Information regarding their compensation is given below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures: 2006 2005 £'000 £'000 Short-term employee benefits 18 18 Share based payments - 106 ---------- --------- 18 124 ========== ========= Libra Natural Resources plc, a company of which Peter Greensmith is a director has sublet office space to the Company at commercial rates. The Company has paid a rent deposit of £10,000, and £5,000 in respect of rent and rates during the year. 15. Post balance sheet events In January 2007 the company invested £500,000 in TMO Renewables Limited, a company that is a world leader in ethanol fermentation technology. Ethanol's shareholding represents less than 5% of TMO's total issued share capital. 16. Share based payments Directors On 21 October 2005 the Company granted options to subscribe for shares to directors as follows: Peter Greensmith 47,137,002 shares John Stirling 23,568,501 shares Jason Teichman 23,568,501 shares Emma Myers 23,568,501 shares The options are exercisable at 0.11p per share whilst the holder remains as a director or employee of the company at any time prior to 21 October 2015. Emma Myers' options lapsed on her resignation as a director in July 2006. The terms for Jason Teichman were changed on his resignation to enable him to exercise his options at any time prior to 24 January 2008. Apart from these changes no options were exercised, forfeited or expired during the year. At 31 December 2006 there were 94,274,004 options outstanding, which were all exercisable at 0.11p per share. In addition there are 2,500,000 options outstanding which are exercisable at 1p per share at any time before 19 August 2013, and 1,364,878 options outstanding which are exercisable at 5p per share at any time before 18 January 2014 The cost of the award of the options outstanding at 31 December 2006 has been measured as the fair value of the award at the date of grant. The fair value has been determined using the Black-Scholes binomial valuation model. The inputs in respect of the options held by Peter Greensmith and John Stirling into the model are as follows: Price at date of grant 0.12p Exercise price 0.11p Expected volatility 85% Option life 21 October 2012 Risk free rate 4.5% Expected dividend yield 0.0% The inputs in respect of the options held by Jason Teichman into the model are as follows: Price at date of grant 0.12p Exercise price 0.11p Expected volatility 85% Option life 24 January 2008 Risk free rate 4.5% Expected dividend yield 0.0% Expected volatility was determined by calculating the historic volatility of the Company's share price over the 2 years to 31 December 2006. The weighted average fair value of the options at the date of grant in respect of Peter Greensmith and John Stirling was 0.09p per share, and in respect of Jason Teichman was 0.06p per share. The company recognised a total cost of share based payments in respect of these options of £Nil in the current period and £106,000 in 2005. 17. Financial instruments The Company's financial instruments comprise cash and cash equivalents and items such as trade payables and trade receivables which arise directly from its operations. The main purpose of these financial instruments is to finance the Company's operations. The Company's operations expose it to a variety of financial risks that include the effects of changes in interest rate risk. Given the size of the Company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department. Interest rate risk The Company's cash and cash equivalents earned interest at a variable rate based on LIBOR during both current and previous year. 18. Transition to IFRS Ethanol Investments plc reported under UK GAAP in its previously published financial statements for the year ended 31 December 2005. The analysis below shows a reconciliation of net assets and profit as reported under UK GAAP as at 31 December 2005 to the revised net assets and profit under IFRS as reported in these financial statements. Reconciliation of equity at 31 Notes Previous Effect of IFRS December 2005 - Group and company GAAP transition to IFRS £'000 £'000 £'000 Issued share capital 538 - 538 Share premium account 1,952 - 1,952 Share based payments reserve (a) - 106 106 Profit and loss account (b) (1,749) ( 106) (1,749) --------- ----------- --------- Total equity 847 - 847 ========= =========== ========= Notes: (a) Share based payment value of options issued during the year: Directors 106,000 106,000 (b) Adjustments to loss for the year: Share based payments in respect of directors (106,000) (106,000) There were no reconciling items in terms of the income statement on transition to IFRS. The Company announces that it has posted the Report and Accounts for the year ended 31 December 2006. Copies of the Report & Accounts are available, free of charge, from City Tower, Level 2 , 40 Basinghall Street, London , EC2V 5DE . - Ends - For further information: Ethanol Investments plc Peter Greensmith, Chairman Tel: +44 (0) 20 7877 5052 Seymour Pierce Jonathan Wright, Corporate Finance Tel: +44 (0) 20 7107 8000 This information is provided by RNS The company news service from the London Stock Exchange

Companies

Entain (ENT)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today