Enola Resources plc

Final Results

Enola Resources plc
08 June 2006


                              ENOLA RESOURCES PLC


CHANGE OF ACCOUNTING REFERENCE DATE AND AUDITED RESULTS FOR THE PERIOD ENDED 28
                                 FEBRUARY 2006


The Board of Enola Resources Plc has changed the accounting reference date of
the Company from 31 March to 28 February.


The  audited results as extracted from the Company's Annual Report and Accounts
for the period from 17 February 2005 to 28 February are shown below.


CHAIRMAN'S STATEMENT


I am delighted to report on the first audited financial statements for Enola
Resources Plc for the period to 28 February 2006. During the period, the Company
made a post tax loss of £33,215 (0.22 pence loss per share).



Since our admission to the AIM market of the London Stock Exchange on 21st March
2005, we have looked at a number of opportunities to acquire companies in the
natural resources sector of Africa.



We look forward to 2006 with confidence.



Michael Edmund Hammond
Non-Executive Chairman



Enola Resources plc



PROFIT AND LOSS ACCOUNT



PERIOD FROM 17 February 2005 TO 28 FEBRUARY 2006


                                                                          Note                   Period from
                                                                                         17 February 2005 to
                                                                                            28 February 2006
                                                                                                       £'000

Turnover                                                                                                   -

Cost of sales                                                                                              -

Gross profit                                                                                               -

Administrative expenses                                                                                 (48)

Operating loss                                                             2                            (48)

Interest receivable                                                                                       15

Loss on ordinary activities before taxation                                                             (33)

Taxation                                                                   4                               -

Loss on ordinary activities after taxation                                                              (33)

Loss per share - basic and diluted                                         5                         (0.22)p


All amounts relate to continuing activities.


All recognised gains and losses are included in the profit and loss account.


BALANCE SHEET AT 28 FEBRUARY 2006



                                                                     Note                  28 February 2006
                                                                                                      £'000

CURRENT ASSETS:
Debtors                                                               6                                   8
Cash at bank                                                                                            736
                                                                                                        744

Creditors: amounts falling due within one year                        7                                  21

NET CURRENT ASSETS                                                                                      723

CAPITAL AND RESERVES
Called up share capital                                               8                                 155
Share premium account                                                 11                                601
Profit and loss account                                                                                (33)

SHAREHOLDERS' FUNDS                                                   10                                723


CASHFLOW STATEMENT


PERIOD FROM 17 February 2005 TO 28 FEBRUARY 2006


                                                                       Note                        Period from
                                                                                                17 February to
                                                                                              28 February 2006
                                                                                                         £'000

Net cash outflow from operating activities                                   13                           (31)

Returns on investments and servicing of finance:
Interest received                                                                        11

Net cash inflow from returns on investments and servicing of finance                                        11

Financing:
Issue of shares                                                                         875
Share issue costs                                                                     (119)

Net cash inflow from financing                                                                             756

Increase in cash                                                          12,14                            736


Enola Resources plc


NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 28 FEBRUARY 2006


1.                  ACCOUNTING POLICIES

a.         Basis of Preparation


          The financial statements have been prepared in accordance with 
          applicable United Kingdom accounting standards and under the
          historical cost convention. 
          The principal accounting policies of the company are set out below.


b.        Foreign Currencies


          Monetary assets and liabilities denominated in a foreign currency
are translated into sterling at the foreign exchange rates ruling at the balance
sheet date.


          Expenses in foreign currencies are recorded in sterling at the rates
ruling at the date of the  transactions.


          Any gains or losses arising on translation are reported as part of the 
profit or loss.



2.                  OPERATING LOSS


                                                                                                     2006
This is stated after charging:                                                                      £'000

Staff costs (including directors)
Salaries                                                                                               18
Social security costs                                                                                   1
                                                                                                       19


       The average number of employees during the period, including directors, 
was:
                                                                                                     2006
Non-Executive Directors
                                                                                                        2


Services provided by the company's auditor                                                           2006
                                                                                                    £'000
Audit services
- Statutory audit                                                                                       7
- Other services                                                                                        4
                                                                                                       11



            In addition to the above, fees of £8,836 were charged by the
auditors in relation to their role as Reporting Accountants to the company; this
has been offset against the Share Premium Account.



3.                  DIRECTORS' REMUNERATION

                                                                                                       2006
                                                                                                      £'000

Aggregate emoluments                                                                                     18


            The aggregate emoluments and benefits of the highest paid director
totalled £9,000 during the period.


4.                  TAX ON LOSS ON ORDINARY ACTIVITIES


            There is no tax charge for the period due to the loss arising.
Deferred tax assets are only recognised  when it is more likely than not
that they will be recovered.


5.                  LOSS PER SHARE



The calculation of the basic and diluted loss per share is based on the loss for
the period of £33,215 and the weighted average number of shares in issue
during the period of 14,799,735. There is no dilutive effect of the warrants
issued to W.H. Ireland Limited.



6.                  DEBTORS
                                                                                                    2006
                                                                                                   £'000

Other Debtors and Prepayments                                                                          8



7.                  CREDITORS : AMOUNTS FALLING DUE WITHIN ONE YEAR
                                                                                                    2006 
                                                                                                   £'000

Accruals and deferred income                                                                          21
                                                                                                      21


8.                  CALLED UP SHARE CAPITAL
                                                                                                    2006
                                                                                                   £'000
Authorised:


300,000,000 ordinary shares of 1p each                                                             3,000

Allotted, called up and fully paid

15,500,000 ordinary shares of 1p each                                                               155



The Company was incorporated on 17 February with an authorised share capital of
£3,000,000 divided into 300,000,000 ordinary shares of £0.01 each of which
7,500,000 shares were issued at par for cash.



On 11th March, 2005 the Company issued 155,000 warrants to W H Ireland, the
Company's nominated advisor and broker. These warrants gave W H Ireland the
right to subscribe for 155,000 ordinary shares of 1p at a price of 10 pence per
share at any time during the period of three years from 21st March 2005.



On the 21st March 2005, an additional 8,000,000 ordinary shares of 1 pence each
were issued for cash at 10 pence per share.



9.                  FINANCIAL INSTRUMENTS


The Company's financial instruments comprise cash and deposits that arise
directly from its operations.  It is not company policy to trade in financial
instruments.

There is no material difference between book value and the fair value of
financial instruments.


            Liquidity Risk



The company's earnings may be affected by changes in interest rates available on
its cash deposits.  The company aims to maximise returns from funds held on
deposit.



10.              RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS


                                                                                                  2006
                                                                                                 £'000

At beginning of period                                                                               -
Shares issued                                                                                      155
Share Premium (net of share issue costs)                                                           601
Loss for period                                                                                   (33)

Closing shareholders funds at 28 February 2006                                                     723




11.              SHARE PREMIUM ACCOUNT
                                                                                                  2006
                                                                                             
                                                                                                  £'000

At beginning of period                                                                               -
Premium on shares issued during the period                                                         720
Issue costs charged to the share premium account                                                 (119)

At 28 February 2006                                                                                601




12.              ANALYSIS OF CHANGES IN FUNDS


                                                 At Cashflow                                      At
                                beginning of period                                 28 February 2006
                                              £'000                   £'000                    £'000

Cash at bank                                      -                     736                      736




13.              RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM
OPERATING ACTIVITIES
                                                                                                     2006
                                                                                                    £'000

Operating loss                                                                                       (48)
(Increase) in debtors                                                                                 (4)
Increase in creditors                                                                                  21

Net cash outflow from operating activities                                                           (31)



14.              RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET FUNDS
                                                                                                    2006 
                                                                                                   £'000

Net cash at beginning of period                                                                        -

Increase in cash in the period                                                                       736

Net cash at 28 February 2006                                                                         736



15.              RELATED PARTY TRANSACTIONS



During the period up to 28 February 2006, the Company made a payment of £25,000
to City Capital Corporation Limited in respect of the AIM admission.  M Hammond
and S Beattie are directors of both Enola Resources Plc and City Capital
Corporation Limited




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