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AquaSource (AAGP)

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Thursday 31 May, 2012

AquaSource

Final Results

Final Results

AquaSource Algae Group

AquaSource Algae Group plc
Preliminary Announcement for the Year Ended 31 December 2011

CHAIRMAN’S STATEMENT

Despite the ongoing difficult economic climate across Europe, I am delighted to report to shareholders on another successful year that ended on the 31st December 2011 for the Group, with its overall financial performance showing a significant improvement and thus the balance sheet being much stronger.

Sales increased by 9% to €4.13 million in 2011 (2010 - €3.79 million) with the Group’s gross margin improving by 0.5 percentage points to 83.9%. Overhead cost increases were held to 5.4% resulting in the Profit on ordinary activities before tax increasing by 39.9% to €575K (2010 - €411K). Shareholder Funds on the Balance Sheet now stand at €1.76 million having increased from €1.33 million in 2010, a 31.9% increase over the year, with the Groups cash reserves as at 31st December 2011 exceeding €1.5 million (2010 - €1.1 million).

As reported in February of this year, the Group’s cash position was further enhanced by the sale, by our UK subsidiary Specialbalance Ltd, of its remaining holding of 5,897,059 ordinary shares of €0.0025 each in the Company’s shares that raised over €105,000 net of expenses. I am pleased to report that the offer to shareholders to acquire these shares was oversubscribed and thus was evenly distributed amongst those that applied.

The Group operates across several, mostly Eastern European markets, and due to the ongoing economic pressure in this region, particularly in Greece where that country’s political, economic and financial problems are well-known, we have experienced a more difficult trading position thus far in 2012. We therefore expect overall trading performance for 2012 to show little or no growth over 2011.

We continue to develop and launch successful new products and support their promotion with marketing initiatives, helped by the continued commitment of our Distributors. Despite the tough trading conditions, our Distributor base continues to grow in key markets, both in numbers and in productivity.

The Board are actively pursuing revenue enhancing opportunities, which we should see later this year, and continue to evaluate new markets and identify partners for those markets. The re-launch of our website with enhanced functionality for online product ordering should also assist sales and add support functions for Distributors.

We note the recent announcements from PLUS regarding their future. Since the news that PLUS was being wound down we have been monitoring the situation and reviewing our options. We will continue to do this despite the news that PLUS-SX may be acquired by ICAP, as forewarned is forearmed.

As always, the enthusiasm from the Group’s Distributors, Country Management Teams and Senior Managers has been constant and their passion for, and belief in, the business and products is admirable. The Board is grateful and would like to thank them for their continued commitment.

Ratan Daryani
Chairman
30 May 2012

AquaSource Algae Group plc
Audited Consolidated Profit and Loss Account
for the Year Ended 31 December 2011

     
Notes 31.12.11 31.12.10
 
 

TURNOVER

Continuing operations 4,131,227 3,787,337
Cost of sales (662,739) (627,904)
 

GROSS PROFIT

3,468,488 3,159,433
 

Administrative expenses

(2,935,248) (2,784,774)
Other operating income 15,533 28,744
 

Operating profit

548,773 403,403
 
Interest receivable 36,712 18,207
Interest payable (10,097) (10,223)
 

PROFIT ON ORDINARY ACTIVITIES

BEFORE TAXATION

575,388 411,387
 
Tax on profit on ordinary
activities 2 (113,427) (103,153)
 

PROFIT FOR THE FINANCIAL YEAR

AFTER TAXATION

461,961 308,234
 

Profit per share (€cents)

4

0.78

0.52


AquaSource Algae Group plc
Audited Consolidated Balance Sheet
31 December 2011

     

31.12.11

31.12.10
   
Notes
 

FIXED ASSETS:

Intangible assets 15,121 16,200
Tangible assets 550,078 546,169
Investments 39,108 43,115
 
604,307 605,484

CURRENT ASSETS:

Stocks 471,546 324,941
Debtors 262,547 168,253
Cash at bank 1,538,647 1,070,496
 
2,272,740 1,563,690

CREDITORS: Amounts falling

due within one year (1,016,407) (730,564)
 

NET CURRENT ASSETS:

1,256,333 833,126
 

TOTAL ASSETS LESS CURRENT

LIABILITIES:

1,860,640 1,438,610

CREDITORS: Amounts falling

due after one year (103,826) (106,395)
 
€1,756,814 €1,332,215
 

CAPITAL AND RESERVES:

Called up share capital 147,427 147,427
Share premium 4,403,766 4,403,766
Other reserves (91,218) (53,856)
Share based payments reserve 45,770 45,770
Profit and loss account (2,748,931) (3,210,892)
 

SHAREHOLDERS' FUNDS (All equity):

€1,756,814 €1,332,215


AquaSource Algae Group plc
Audited Consolidated Cash Flow Statement
for the Year Ended 31 December 2011

     
31.12.11 31.12.10
 
Notes
 

Net cash inflow

from operating activities

5 481,967 565,037
 

Returns on investments and

servicing of finance

26,615 7,984
 

Net cash outflow from capital

expenditure

(40,431) (163,286)
 

Finance

- (121,729)
 

Increase in cash in the year

6

€468,151

€288,006


AquaSource Algae Group plc
Notes to the Preliminary Announcement

1. BASIS OF PREPARATION

The preliminary announcement has been prepared in accordance with applicable accounting standards under the historical cost convention, and in accordance with the accounting policies set out in the annual report and financial statements for the year ended 31 December 2011.

The preliminary announcement has been approved by the Board of Directors on 30 May 2012 and has been agreed by the auditors. The preliminary announcement as set out does not constitute statutory accounts for the year ended 31 December 2011. The audit report for the year ended 31 December 2011 will be unqualified.

2. TAXATION

Analysis of the Group tax charge

The tax charge on the profit on ordinary activities for the year was as follows:

  31.12.11   31.12.10
 
 
Current tax:
Corporation tax 35,478 15,024
Foreign tax 77,949 88,129
 
Tax on profit on ordinary activities 113,427 103,153

3. DIVIDENDS

No dividends have been distributed to shareholders during the period.

4. PROFIT PER SHARE

The calculation of the basic and fully diluted profit per share is based on the profit attributable to ordinary shareholders of €461,961 (2010: €308,234) divided by the weighted average number of shares in issue during the period of 58,970,591 (2010: 58,970,591).

There is no dilutive effect of share options on the basic profit per share.

5. NET CASH INFLOW FROM OPERATING ACTIVITIES

  31.12.11   31.12.10
 
 
Operating profit 548,773 403,403
Depreciation and amortisation charges 37,601 39,827
Decrease/(increase) in stock (146,605) 69,137
Decrease/(increase) in debtors (94,294) 119,019

Increase/(decrease) in creditors

283,274

(91,544)

Translation differences (34,677) 135,265
Taxation paid (112,105) (110,070)
 

Net cash inflow

from operating activities

481,967 565,037

6. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

  31.12.11   31.12.10
 
 
Increase in cash in the year 468,151 288,006
Funds at beginning of year 1,070,496 782,490
 

Funds at end of year

1,538,647

1,070,496


The Directors of AquaSource Algae Group plc accept responsibility for this announcement.

ENDS


Enquiries:

Sian Lewis

 

AquaSource

 

+385 911 324270

Oliver Spurling

AquaSource

07769 647617

Stephen Foale

Fletcher Foale Ltd

07769 937708


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