Interim Results

RNS Number : 1674J

Viridas PLC

28 November 2008

 

VIRIDAS PLC ('Viridas', 'the Group' or 'the Company')

INTERIM RESULTS

Half Year Ended 31st August 2008

Highlights:

• Turnover for the half year ended 31st August 2008: £2,275,660 (2007:£2,502,725)

• Pre-tax loss before exceptional items £157,314 (£283,969)

• Final closure of all legacy businesses in October

• On going development of company's industrial scale Jatropha Agri-business in Brazil

Chairman, Stanley Wootliff, commenting on the half year said:

'In the half year ended August 31st 2008 we completed the process of withdrawing from our legacy businesses, and continued the further ongoing development of our industrial scale Jatropha business in Brazil. 

Subsequent to the signing of our exclusive strategic partnership agreement with INEOS Enterprises, part of INEOS, the worlds third largest chemical company, to develop a sustainable supply of crude jatropha oil (CJO) to the biodiesel market, we are now moving to the next phase of the project, the establishment of a 'Base Plantation' in Salvadore together with an appropriate commercial administration. This will be followed over the next few years by the establishment of cluster plantations around the 'Base Plantation' to support a future roll out strategy for the production of commercial quantities of Crude Jatropha Oil.

Much hard work has gone into the repositioning of the group over the past half year. We now look forward to the exciting prospect of developing a leading world class jatropha business. 

Great enthusiasm for the jatropha project is shared by all your directors and employees and we look forward to reporting further progress.'

For Further information:

Viridas PLC                        Tel: [phone]

Stanley Wootliff, Executive Chairmen      [e-mail]

Graham Haselden, Finance Director      [e-mail]

FinnCap         Tel: [phone]

Matthew Robinson, Corporate Finance Director      [e-mail]

  Chairman's Statement

For the half year ended 31st August 2008

Our Future - Jatropha Sustainable Biofuel Feedstock - Owners and Managers of Plantations in Brazil.

It has been a busy year for the company, completing the withdrawal from its legacy businesses, continued research and development of its new future as a dedicated owner and manager of jatropha plantations in Brazil. We believe that such plantations will achieve full acceptance as the preferred, most sustainable, biofuel feedstock by esterifiers and will secure our future position as the leading player within the biodiesel supply chain.

OPERATIONAL REVIEW

Group operating losses for the half year ended 31st August 2008, before exceptional items of £99,547 which primarily related to residual closure costs, a bad debt from a major textile customer, and compensation for loss of office, amounted to £157,314.

Also included in the operating losses were ongoing costs, for both here in the UK and in Brazil, associated with the jatropha project, of £143,566.

A retained loss of £282,661(£304,269) has been transferred to reserves. Net assets at the half year end stood at £709,176 (£1,470,971).

At the end of October we finally ceased all our legacy activities and the group is now solely focused on its jatropha project.

THE JATROPHA BUSINESS

In 2006, Viridas started researching Jatropha and at the end of 2007 established a trial plantation in Minas Gerias in Brazil to further improve its knowledge relating to agronomy techniques for the growing of Jatropha on an industrial scale for the production of sustainable Crude Jatropha Oil.

Building on this experience Viridas aims to develop industrial scale jatropha plantations with the agronomy and all aspects of production fully managed and controlled by Viridas on land which it owns or holds on long lease.

STRATEGIC PARTNER 

In April Viridas announced an exclusive strategic partnership with INEOS Enterprises to develop significant growth in sustainable output of jatropha, a perennial, non-food oil seed used in alternative fuels production.  Following on from that strategic partnership we are now moving to the next phase of the project, the establishment of a 'Base Plantation' in Salvador together with an appropriate commercial administration to support a future roll out strategy for the production of commercial quantities of Crude Jatropha Oil.

PROSPECTS

Viridas has already established a leading reputation in the biodiesel industry.  The partnership, with INEOS Enterprises enables us to pursue a common vision to develop a world class jatropha business within the biodiesel supply chain, whilst at the same time providing a new and sustainable crop and creating a non-food feed stock for alternative fuel production.

Second generation feed stocks are the key to the company's future, and jatropha is an ideal, sustainable, non-food 'Green' energy crop for an energy hungry world. 

Much hard work has gone into the repositioning of the group over the past few years. We now look forward to the exciting prospect of developing the leading world class jatropha business together with INEOS, our world class partner.

Great enthusiasm for the jatropha project is shared by all your directors and employees and we look forward to reporting further progress.

S.J.Wootliff

Chairman

28th November 2008

VIRIDAS P.L.C. CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 AUGUST 2008
	Unaudited 6 months ended 31 August  2008	Unaudited 6 months ended 31 August 2007	Audited Year ended 29 February 2008
	£	£	£
Revenue - continuing operations	2,275,660	2,502,725	5,303,954
Operating loss - continuing operations	(252,498)	(257,391)	(903,228)
Finance income	7,048	4,861	8,470
Finance expense	(11,411)	(31,439)	(69,211)
Loss before taxation	(256,861)	(283,969)	(963,969)
Taxation	(25,800)	(20,300)	32,951
Loss for the period	(282,661)	(304,269)	(931,018)
Loss per share
Basic	(1.16p)	(1.47p)	(4.13p)
Diluted	(1.16p)	(1.47p)	(4.13p)
Dividend per share	-	-	-

VIRIDAS P.L.C. CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2008
	Unaudited 6 months ended 31 August  2008	Unaudited 6 months ended 31 August 2007	Audited Year ended 29 February 2008
	£	£	£
ASSETS
Non-current assets
Intangible assets	-	165,866	-
Property, plant and equipment	44,832	544,173	29,317
Total non-current assets	44,832	710,039	29,317
Current assets
Inventories	570,962	838,269	968,524
Trade and other receivables	768,184	1,112,646	687,772
Cash and cash equivalents	857,596	1,285,637	1,456,970
Total current assets	2,196,742	3,236,552	3,113,266
Total assets	2,241,574	3,946,591	3,142,583
LIABILITIES
Current liabilities
Trade and other payables	792,507	619,247	911,781
Current tax payable	20,700	32,094	36,290
Obligations under finance leases	5,368	6,443	6,443
Bank loans	2,528	31,645	5,644
Bank overdraft	711,295	1,469,500	1,233,295
Total current liabilities	1,532,398	2,158,929	2,193,453
Non-current liabilities
Obligations under finance leases	-	5,368	2,147
Bank Loans	-	278,283	-
Deferred tax liability	-	33,040	-
Total non-current liabilities	-	316,691	2,147
Total liabilities	1,532,398	2,475,620	2,195,600
Net assets	709,176	1,470,971	946,983
EQUITY
Share capital	2,435,796	2,435,796	2,435,796
Share premium account	2,007,339	2,005,379	2,007,339
Capital redemption reserve	27,000	27,000	27,000
Revaluation reserve		84,960
Translation reserve	132,947	-	88,093
Retained deficit	(3,893,906)	(3,082,164)	(3,611,245)
Total equity	709,176	1,470,971	946,983
VIRIDAS P.L.C. CONSOLIDATED CASHFLOW STATEMENT FOR THE SIX MONTHS ENDED 31 AUGUST 2008
		Unaudited 6 months ended 31 August  2008	Unaudited 6 months ended 31 August 2007	Audited Year ended 29 February 2008
		£	£	£
Cash flows from operating activities
Loss before tax		(256,861)	(283,969)	(963,969)
Depreciation of property, plant and equipment		5,384	22,790	43,867
Impairment of property, plant and equipment		-	-	57,919
Profit on disposal of property, plant and equipment		-	-	(55,924)
Amortisation of intangible assets		-	11,755	178,506
Interest receivable		(7,048)	(4,861)	(8,470)
Interest payable		11,411	31,439	69,211
Decrease in inventories		397,562	170,147	39,892
Increase in trade and other receivables		(80,412)	(635,558)	(210,684)
(Decrease)/increase in trade and other payables		(119,274)	167,130	459,684
Foreign exchange movement		44,854	-	98,875
		(4,384)	(521,127)	(291,093)
Interest paid		(11,411)	(31,439)	(69,211)
Tax paid		(41,390)	(65,078)	(40,671)
Net cash from operating activities		(57,185)	(617,644)	(400,975)
Cash flows from investing activities
Interest received		7,048	4,861	8,470
Purchase of intangible assets		-	-	-
Purchase of property, plant and equipment		(20,899)	(6,964)	(20,856)
Sale of property, plant and equipment		-	-	506,717
Net cash (used in)/generated from investing activities		(13,851)	(2,103)	494,331
Cash flows from financing activities
Issue of shares		-	543,750	545,710
Repayment of loans		(3,116)	(12,638)	(313,700)
Repayment of finance leases		(3,222)	-	(6,443)
Net cash (used in)/generated from financing activities		(6,338)	531,112	225,567
(Decrease)/increase in cash in the period		(77,374)	(88,635)	318,923
Cash and cash equivalents at beginning of period		223,675	(95,248)	(95,248)
Cash and cash equivalents at end of period		146,301	(183,883)	223,675

VIRIDAS P.L.C. CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE  FOR THE SIX MONTHS ENDED 31 AUGUST 2008
	Unaudited 6 months ended 31 August  2008	Unaudited 6 months ended 31 August 2007	Audited Year ended 29 February 2008
	£	£	£
Loss for the period	(282,661)	(304,269)	(931,018)
Total recognised income and expense for the period	(282,661)	(304,269)	(931,018)

VIRIDAS P.L.C.
NOTES TO THE INTERIM REPORT

• The financial information set out in this interim report does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The group's statutory financial statements for the year ended 29 February 2008, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 237 (2) of the Companies Act 1985.

• The calculation of basic and diluted earnings per shared is based on the loss for the period of £282,661 (2007: loss £304,269) and a weighted average number of ordinary shares of 24,357,956 (2007: 20,652,956).

• No interim dividend will be paid.

• Copies of these interim results are being despatched to shareholders. Further copies can be obtained from: The Company Secretary, Viridas P.L.C., 647, Roundhay Road, Leeds LS8 4BA and are available to view and download from the Company's website: www.viridasplc.com

 

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