AquaSource

Half-yearly Report

Half-yearly Report

AquaSource Algae Group

AQUASOURCE ALGAE GROUP PLC

INTERIM RESULTS TO 30TH JUNE 2009

CHAIRMAN'S STATEMENT

I am delighted to be able to report that the revised strategy implemented by the Board some three years ago is showing signs of being able to deliver continuous and sustainable growth. This reaction is particularly pleasing given the current poor economic climate in the countries in which our subsidiaries operate. The Directors are encouraged by the continuous improvement in the Group’s operating results and are actively looking at expansion into new countries, whilst minimising the impact of any poorer performing markets.

The Group’s financial performance continues to improve with sales increasing by 5.7% to EUR 1.83 million for the first six months of 2009 from EUR 1.74 million for the first six months of 2008. Profit on ordinary activities before tax of EUR 205,894, have increased by 37% over the EUR 150,225 achieved in the same period in 2008. This improved performance has been delivered despite the generally poor economic climate and some very difficult trading conditions in a couple of our key markets.

The Russian market is experiencing poor sales and currency devaluation issues, both of which have impacted on overall financial performance and specific attention is being given to the market.

We continue to develop plans and promotions that focus on increasing our distributor base and improving the financial earnings of our independent distributors in all markets.

As mentioned above, the strategy in place for driving growth and improving financial performance is proving sustainable, particularly in Bulgaria and we continue to roll out business development initiatives from Bulgaria into Croatia and other markets.

We remain cautiously optimistic for the remainder of the year, and continue to monitor and react to the impact of the world recession on our key trading markets.

I would like, once again, to give my personal thanks to all our Country Managers, Distributors and the Executive Management team, for their commitment, without whose hard work the continuing improvement in the performance of the Group would not be possible.

Ratan Daryani
ChairmanChairman
29th September 200929th September 2009

AQUASOURCE ALGAE GROUP PLC
CONSOLIDATED SUMMARISED PROFIT AND LOSS ACCOUNT CONSOLIDATED SUMMARISED PROFIT AND LOSS ACCOUNT

     

6 MONTHS TO

           

6 MONTHS TO

             

12 MONTHS TO

   

30 JUNE

30 JUNE 31 DEC.
2009 2008 2008
UNAUDITED UNAUDITED AUDITED
 
NOTE EUROS EUROS EUROS
TURNOVER 1,833,294 1,734,524 3,509,047
 
Cost of sales (323,058) (300,388) (623,183)
 
GROSS PROFIT 1,510,236 1,434,136 2,885,864
 
ADMINISTRATIVE EXPENSES: (1,315,262) (1,283,537) (2,659,779)
 
Other operating income 8,518 7,390 27,286
 
OPERATING PROFIT: 203,492 157,989 253,371
Continuing operations-
before exceptional and
non-recurring items
 
Interest receivable and 9,959 253 5,713
similar income
 
Interest payable and (7,557) (8,017) (21,748)
similar charges
 
PROFIT ON ORDINARY ACTIVITIES 205,894 150,225 237,336
BEFORE TAXATION
 
Tax on profit on ordinary 1 (63,102) (56,916) (136,080)
activities
 
 
PROFIT FOR THE FINANCIAL 142,792 93,309 101,256
PERIOD
 
BASIC PROFIT PER
SHARE (EURCENT) 2 0.24 0.16 0.17

All operations are continuing. There were no recognised gains or losses other than the results above.

AQUASOURCE ALGAE GROUP PLC
CONSOLIDATED SUMMARISED BALANCE SHEETCONSOLIDATED SUMMARISED BALANCE SHEET

      30 JUNE         30 JUNE      

31 DEC.

   
2009 2008 2008
UNAUDITED UNAUDITED AUDITED
 
NOTE EUROS EUROS EUROS
FIXED ASSETS
Intangible assets 16,359 6,794 10,166
Tangible assets 436,949 474,147 438,937
Investments 63,355 40,432 62,563
516,663 521,373 511,666
CURRENT ASSETS
Stocks 336,597 305,951 382,611
Debtors 213,802 206,020 191,909
Cash at bank and in hand 607,670 522,740 502,487
1,158,069 1,034,711 1,077,007
 
CREDITORS: AMOUNTS FALLING DUE WITHIN
ONE YEAR 634,940 680,581 682,031
 
Net current assets 523,129 354,130 394,976
 
TOTAL ASSETS LESS CURRENT LIABILITIES 1,039,792 875,503 906,642
 
CREDITORS: Amounts falling due after
one year 264,362 287,386 263,846
 
775,430 588,117 642,796
 
CAPITAL AND RESERVES
Called up share capital 147,427 147,427 147,427
Share premium account 4,403,766 4,403,766 4,403,766
Other reserves (167,221) (203,815) (157,063)
Share based payment reserve 45,770 45,770 45,770
Profit and loss account (3,654,312) (3,805,031) (3,797,104)
SHAREHOLDERS' FUNDS 775,430 588,117 642,796

NOTES TO THE INTERIM REPORT

1 TAXATION Tax on the profits for the period has been accrued for at the varying rates applicable to the respective country in which the profits arose.

2 PROFIT/(LOSS) PER SHARE The calculation of basic profit per share is based on the profit attributable to ordinary shareholders divided by 58,970,591 being the weighted average number of shares in issue during the period (June 2008 - 58,899,824). There was no dilutive effect in respect of the granting of share options.

3 INTERIM REPORT This interim report was approved by the Board on 29th September 2009. It has been prepared using accounting policies that are consistent with those adopted in the statutory accounts for the year ended 31 December 2008.

4 PUBLICATION OF NON-STATUTORY ACCOUNTS The financial information set out above does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The figures for the period ended 31 December 2008 have been extracted from the statutory financial statements, which have been filed with the Registrar of Companies. The auditors' report on those financial statements was unqualified.

THE DIRECTORS OF AQUASOURCE ACCEPT RESPONSIBILITY FOR THIS ANNOUNCEMENT.

ENQUIRIES:

SIAN LEWIS       AQUASOURCE       ++385-911-324270
OLIVER SPURLING AQUASOURCE 07769 647617
STEPHEN FOALE FLETCHER FOALE 07769 937708