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Crescent Tech Vent. (CTC)

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Thursday 29 June, 2006

Crescent Tech Vent.

Final Results

Crescent Technology Ventures PLC
29 June 2006


                        CRESCENT TECHNOLOGY VENTURES PLC


                                                CRESCENT TECHNOLOGY VENTURES PLC
                                                                   ANNUAL REPORT
                                                                31 December 2005


CRESCENT TECHNOLOGY VENTURES PLC
FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2005


Contents                                                                  Pages

Directors, Officers and Advisers                                              2

Chairman's Report                                                             3

Directors' Report                                                             4

Independent Auditors' Report                                                  7

Profit and Loss Account                                                       9

Balance Sheet                                                                10

Cash Flow Statement                                                          11

Notes to the Financial Statements                                            12



CRESCENT TECHNOLOGY VENTURES PLC
COMPANY AND INVESTOR INFORMATION


Directors                        Lt Gen Thomas G Mclnerney (USAF Ret)         Non-Executive Chairman
                                 Mr Musawer Mansoor Ijaz                      Chief Executive
                                 Lt Gen James A Abrahamson (USAF Ret)         Non-Executive Director
                                 Mr James W Fuller                            Non-Executive Director
                                 Mr Richard J Armstrong                       Non-Executive Director

Company Number                   05275308

Registered Office                1 Knightsbridge
                                 4th Floor
                                 London SW1X 7LX

Nominated Adviser and Broker     Nabarro Wells & Co. Limited
                                 Saddlers House
                                 Gutter Lane
                                 London EC2V 6HS

Auditors                         Chantrey Vellacott DFK LLP
                                 Russell Square House
                                 10-12 Russell Square
                                 London WC1B 5LF


Bankers                          HSBC Bank PLC
                                 70 Pall Mall
                                 London SW1Y 5EZ


Solicitors                       McClure Naismith
                                 Pountney Hill House
                                 6 Laurence Pountney Hill
                                 London EC4R 0BL

Registrars                       Neville Registrars
                                 18 Laurel Lane
                                 Halesowen
                                 West Midlands BD6 3DA



CRESCENT TECHNOLOGY VENTURES PLC

                                 ANNUAL REPORT
                               CHAIRMAN'S REPORT


I am pleased to present Crescent Technology Ventures Plc's ('CTV' or the '
Company') first Annual Report and Accounts. CTV was created with the intention
of making investments in companies focusing on the development of leading edge
homeland security technologies. The main items of expenditure in the annual
accounts relate to CTV's first investment in an Internet security business, the
costs of admission to AIM and reimbursement of certain expenses incurred prior
to admission. Since admission, additional funds have been raised through private
placings and have been used to fund investment and ongoing operations of the
Company.

Terrorist attacks struck London and New Delhi recently, while civil unrest in
France had the hallmarks of terrorist planning and coordination. Insurgencies in
Iraq and Afghanistan continued and Iran challenged world consensus opposing its
decision to move ahead with uranium enrichment plans and the presumed
development of nuclear armaments. These terrorist attacks continue to be clarion
calls for action in developing technologies and methods that can counter
terrorism's global infrastructure. Your Company remains committed to the
commercialization of security technologies with widespread applicability and
use.

In March 2006, your Company entered into heads of terms with Senetas Corporation
Limited, a publicly traded company on the Australian Stock Exchange focused on
high-speed encryption technologies, to purchase the whole of the issued share
capital of eCryp, Inc, Senetas' biometric security system business. The Company
also agreed to purchase a worldwide license of CTAM technology, enabling CTV to
vend and integrate Senetas' proprietary high-speed encryption hardware into
certain of the other existing technology projects to which CTV has proprietary
development access, such as the stratospheric airships. This acquisition is
subject to a number of conditions including, inter alia, consent by shareholders
at a general meeting.

Your directors requested a suspension of trading in your Company's shares
pending completion of this transaction since it will represent a reverse
takeover under the AIM Rules.  Due diligence is currently being finalized and in
due course a Re-Admission Document will be issued and the Company will apply for
the Ordinary Shares to be re-admitted to trading on AIM.

The Board determined in August 2005, after months of good faith negotiations to
resolve matters, that it was in the best interests of CTV shareholders to
terminate the financing relationship with GEM Global Yield Fund Limited (GEM).
In April 2006, shortly after the Company announced the eCryp transaction, GEM
began court proceedings that ended in litigation on May 31, 2006. CTV does not
accept the legitimacy of the GEM claim, but in the interests of shareholders and
without prejudice, the Board is endeavouring to negotiate a settlement. This
litigation may effect the eCryp transaction, and will undoubtedly delay
re-admission.  Shareholders will be kept informed of developments as they occur.

..............................................................................


Lt Gen Thomas G. McInerney (USAF Ret), Chairman
28 June 2006



CRESCENT TECHNOLOGY VENTURES PLC
DIRECTORS' REPORT FOR THE PERIOD ENDED 31 DECEMBER 2005


The Directors are pleased to present their report on the principal activities of
the Company, a review of business and future developments together with the
audited financial statements for the period.

The Company was incorporated on 2 November 2004.

The Directors focused much of their attention this year on two principal
activities: first, the identification, due diligence reporting and technology
assessments of an array of homeland security projects that would make suitable
investment candidates for the Company's shareholders; and second, after the
decision to terminate funding arrangements with GEM, to locate appropriate other
sources of financing for the projects determined as appropriate investments by
the Board.

The Directors identified three suitable technology investments during the year
in the fields of Internet security, surveillance and telecommunications
technologies based on high-altitude stratospheric airships and neutron
pulse-based scanning technologies for non-invasive interrogation of air and sea
cargo containers in order to prevent the transport of illicit materials across
borders.

Your Company made an exploratory investment in an Internet security project that
proposes to alter the paradigm by which computer Internet Protocol (IP)
addresses are protected from cyber-attacks and hacking by making the IP address
invisible to external intrusion attempts vs. the traditional firewall protection
methods available in the marketplace today.  The Internet security project is
proceeding to achieve its objectives.

Your Company's investment activities have now ended as a result of changes in
AIM regulations promulgated last year and implemented on 3 April 2006 requiring
investment companies to become operating businesses. As a result, your Company
entered, as stated in the Chairman's report, into heads of terms with eCryp,
Inc., a company developing a novel biometric security system and whose parent,
Senetas Corporation Limited (ASX: SEN), is a leading developer of high-speed
encryption hardware.  The GEM litigation, which the Directors are now attempting
to resolve entirely without prejudice through settlement, will no doubt hamper
the completion of the Senetas transaction.

In assessing the risk of failure of the Senetas transaction, the Directors have
now formulated an alternative plan for the evaluation and execution of a
different transaction involving one of the existing projects researched by the
Company during the year to qualify it as a 'reverse' for the purposes of
satisfying the AIM Rules for the readmission of your Company's shares to
trading. This opportunity will be pursued in due course pending resolution of
the GEM matter and a decision by Senetas on whether to proceed or not with the
eCryp sale.

The Company's results are presented in the pages following and reflect the
start-up nature of your Company. CTV lost 6.6p per share, fully diluted, during
the period ended 31 December 2005.



CRESCENT TECHNOLOGY VENTURES PLC
DIRECTORS' REPORT FOR THE PERIOD ENDED 31 DECEMBER 2005


Directors who served during the year, all of whom were appointed on 15 December
2004, and their interests in the share capital of the Company were:

                                                          Note                                31 December 2005
                                                                       Ordinary shares          Founder Shares

Lt Gen Thomas G Mclnerney (USAF Ret), Chairman            (1)                        -                       -
Mr Musawer Mansoor Ijaz, Chief Executive                  (1)                        -               2,500,000
Lt Gen James A Abrahamson (USAF Ret)                      (1)                        -                 250,000
Mr James W Fuller                                         (1)                        -                       -
Mr Richard J Armstrong                                                               -                 187,500



Note

(1)   Since the year-end these directors have purchased an additional 100,000
ordinary shares of £0.01p each.


Substantial Shareholdings

The Company has been notified, as at 23 June 2006, of the following interests of
3% or more in its issued share capital:

                                           Number of Founder  Number of Ordinary     Percentage of total Issued
                                                      Shares              Shares                  Share Capital

M Weiss                                              500,000           5,000,000                          45.64
M Ijaz                                             2,500,000             100,000                          18.37
M Van Mechelen                                             -           1,150,000                           8.13
Brewin Nominees (Channel Islands) Limited

                                                           -             500,000                           3.53


Going Concern

After making enquiries, the Directors consider that the Company has adequate
resources to continue in operational existence for the foreseeable future and
are satisfied that the Company is a going concern.  For this reason they
continue to adopt the going concern basis in preparing the financial statements.


CRESCENT TECHNOLOGY VENTURES PLC

DIRECTORS' REPORT FOR THE PERIOD ENDED 31 DECEMBER 2005


Directors' Responsibilities

Company law requires the directors to prepare financial statements for each
financial year which give a true and fair view of the state of affairs of the
Company as at the end of the financial year and of the profit or loss of the
Company for that year.  In preparing these financial statements, the directors
are required to:

•    select suitable accounting policies and apply them consistently;

•    make judgements and estimates that are reasonable and prudent;
     
•    state whether applicable accounting standards have been followed; and

The directors are responsible for keeping proper accounting records which
disclose with reasonable accuracy at any time the financial position of the
Company and to 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.


Auditors

A resolution for the re-appointment of Chantrey Vellacott DFK LLP as auditors to
the company is to be proposed at the forthcoming Annual General Meeting.


Approved by the Board of Directors
and signed on its behalf by

Musawer Mansoor Ijaz, Chief Executive


CRESCENT TECHNOLOGY VENTURES PLC
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
CRESCENT TECHNOLOGY VENTURES PLC


We have audited the financial statements of Crescent Technology Ventures Plc for
the period ended 31 December 2005, comprising the profit and loss account, the
balance sheet, the cash flow statement and related notes.  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

The directors' responsibilities for preparing the annual report and the
financial statements in accordance with applicable law and United Kingdom
Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are
set out in the statement of directors' responsibilities.

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 whether the financial
statements have been 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 information specified by law regarding directors' remuneration and other
transactions 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 report.  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.


CRESCENT TECHNOLOGY VENTURES PLC
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
CRESCENT TECHNOLOGY VENTURES PLC


Opinion

In our opinion:
     
•    the financial statements give a true and fair view, in accordance with 
     United Kingdom Generally Accepted Accounting Practice, of the state of the
     Company's affairs as at 31 December, and of its results for the period then
     ended; and

•    the financial statements have been properly prepared in accordance with the 
     Companies Act 1985.


CHANTREY VELLACOTT DFK LLP
Chartered Accountants
London


CRESCENT TECHNOLOGY VENTURES PLC
PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED 31 DECEMBER 2005

                                                   Note                                            Period Ended
                                                                                                    31 December
                                                                                                           2005
                                                                                                              £

Management fees                                                                                         500,000
Administrative fees                                                                                     160,414

Loss on ordinary activities before interest        2                                                    660,414

Interest receivable                                5                                                      6,682

Loss on ordinary activities before taxation                                                             653,732

Taxation                                           6                                                          -

RETAINED LOSS                                      12                                                   653,732

Loss per share                                     7
Basic and diluted                                                                                          6.6p

All of the above amounts relate to continuing activities.

     There were no recognised gains and losses other than the results shown 
     above.

     The notes on pages 12 to 16 form part of these financial statements.


CRESCENT TECHNOLOGY VENTURES PLC
BALANCE SHEET AS AT 31 DECEMBER 2005
                                                                                                     31 December
                                                                                                            2005
                                                                              Notes                            £
Assets

Fixed assets
Investments                                                                     8                        112,518
Current assets
Debtors                                                                         9                          1,378
Cash at bank                                                                                               8,163

                                                                                                           9,541

Creditors: amounts falling due within one year                                  10                        76,810

Net current liabilities                                                                                   67,269

Net assets                                                                                                45,249

Capital and reserves
Called up share capital                                                         11                       120,500
Share premium account                                                           12                       578,481
Accumulated losses                                                              12                     (653,732)

Total shareholder's funds                                                       13                        45,249


Approved by the Board of Directors on 28 June 2006


Signed on behalf of the Board of Directors:

..............................................................................


Lt Gen Thomas G. McInerney (USAF Ret)
Non-Executive Chairman


The notes on pages 12 to 16 form part of these financial statements



CRESCENT TECHNOLOGY VENTURES PLC
CASH FLOW STATEMENT FOR THE PERIOD ENDED 31 DECEMBER 2005
                                                                                                   Period ended
                                                                                                    31 December
                                                                                                           2005
                                                                          Note                                £

Net cash outflow from operating activities                                14                          (584,983)

Returns on investments and servicing of finances
Interest received                                                                                         6,682

Net cash inflow from returns on investments and servicing of finance                                      6,682

Capital expenditure and financial investment
Investment acquired                                                                                   (112,518)

Net cash outflow from investment activities                                                           (112,518)

Financing activities
Share capital issued (net of costs)                                                                     698,981

Net cash inflow from financing activities                                                               698,891

Increase in cash                                                          15,16                           8,162


The notes on pages 12 to 16 form part of these financial statements



CRESCENT TECHNOLOGY VENTURES PLC
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2005
     
1.   Accounting Policies

The following accounting policies have been applied consistently in dealing with
items which are considered material in relation to the Company's financial
statements.
          
(a)  Basis of preparation

The financial statements have been prepared in accordance with applicable
accounting standards and under the historical cost accounting rules.
          
(b)  Foreign currencies

     Assets and liabilities in foreign currencies are translated into
sterling at rates of exchange ruling at the balance sheet date.  Transactions
during the period are translated at the rate of exchange ruling at the date of
the transaction.  Differences arising on exchange are dealt with through the
profit and loss account.

(c)  Investments

Fixed asset investments are stated at cost or market value, if lower, where it
is considered there has been a permanent diminution in value.
     
(d)  Going concern

As at 31 December 2005, the Company had net current liabilities of £67,269 and
net assets of £45,249.  The Company does not have any immediate source of income
from operations.

On 10 March 2006, the Company announced that it had placed 2,100,000 shares at
14p per share to raise £210,000 in cash to provide working capital for the
Company, with the remaining £84,000 having satisfied liabilities of the Company
with respect to Directors and Advisers compensation after the period closed.

Also, as mentioned in the Chairman's statement in March 2006, the Company has
entered into heads of terms agreements with Senetas Corporation Limited, a
publicly traded company on the Australian Stock Exchange, to purchase the whole
of the issued share capital of eCryp Inc, Senetas' biometric security system
business.

This acquisition is subject to a number of conditions including consent by
shareholders at a general meeting.

The Company intends to raise new equity capital in order to finance its current
obligations and fund future transactions.

The financial statements have been prepared on the going concern basis assuming
the Company is to continue as a going concern and therefore realise their assets
and extinguish their liabilities in the normal course of business at the amounts
stated in the financial statements.

The Directors believe that at the date of signing the financial statements,
there are reasonable grounds to believe the Company will achieve the matters set
out above and therefore have prepared the financial statements on the going
concern basis.

(e)  Financial Instruments

The company does not hold or issue derivative financial instruments for trading 
purposes.

Short-term debtors and creditors are not treated as financial instruments.

2      Loss on ordinary activites                                                                     2005

       Loss on ordinary activities is stated after the following:
       Auditors' remuneration     -  audit services                                                 10,000
                                  -  non-audit services                                             17,980
       Staff costs                                                                                   4,512
       Exchange gains                                                                                1,678


CRESCENT TECHNOLOGY VENTURES PLC
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2005


3.   Employees

The weekly average number of employees during the period, including executive
directors, was two.

     
4.   Directors' emoluments

No directors' were paid remuneration during the period.

     
5.   Interest receivable
                                                                                                  2005
                                                                                                     £

            Bank interest                                                                        6,682

     
6.   Taxation

No provision has been made for taxation as no taxable profits have been
generated in the period.

     
7.   Earnings per share

The calculation of basic and diluted earnings per share are based on the 
following data:
                                                                                                           2005
                                                                                                              £

         Loss for the purpose of basic earnings per share                                               653,732

                There were no dilutive instruments over the period.

                Number of shares

         Weighted average number of ordinary shares in issue during the year                        9,867,591

     
8.   Investments
                                                                                                          2005
Cost
Additions                                                                                                112,518
At 31 December 2005                                                                                      112,518

On 9 August 2005 the Company purchased 400,000 common shares at $0.50 per share
in Invicta Networks Inc, a US incorporated internet security systems company.

This represents a holding of 0.3% of the issued shares of that company.

     
9.   Debtors
                                                                                                            2005
                                                                                                               £

Other debtors                                                                                              1,378


CRESCENT TECHNOLOGY VENTURES PLC
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2005

     
10.  Creditors:amounts falling due within one year
                                                                                                           2005
                                                                                                              £

      Accruals                                                                                           76,810

     
11.  Share capital
                                                                                                         2005
                                                                                                            £
Authorised
1,000,000,000 ordinary shares of £0.01p each                                                       10,000,000
5,000,000 founder shares of £0.01p each                                                                50,000

Allotted, called up and fully paid
7,050,000 ordinary shares of £0.01p each                                                               70,500
5,000,000 founder shares of £0.01p each                                                                50,000

                                                                                                      120,000


On incorporation 2 ordinary shares of £1 each were allotted at par.

On 14 December 2004 all of the issued and unissued ordinary shares of £1 each
were sub-divided into 100 ordinary shares of £0.01p each.

On 14 December 2004 each of the existing authorised and issued ordinary shares
of £0.01p each were reclassified as one founder share of £0.01p each.

On 15 December 2004 4,999,800 founder shares of £0.01p each were allotted at
par.

On 7 January 2005, 5,500,000 ordinary shares of £0.01p each were allotted for
cash at 10p per share, fully paid.

On 13 January 2005, 150,000 ordinary shares of £0.01p each were allotted for
cash at 10p per share, fully paid.

On 13 January 2005, 250,000 ordinary shares of £0.01p each were allotted for
cash at 11.25p per share, fully paid.

On 6 August 2005, 1,150,000 ordinary shares of £0.01p each were allotted for
cash at 15p per share, fully paid.

The founder shares rank pari passu to the ordinary shares except that they have
no rights to dividends and may be converted to ordinary shares at any time up to
5 years following admission.

     
12.  Reserves
                                                                         Profit and loss             Share
                                                                                 account           premium
                                                                                                   account
                                                                                       £                 £

At incorporation                                                                       -                 -
Retained loss for the period                                                   (653,732)                 -
Premium on shares issued in the period                                                 -           578,481

At 31 December 2005                                                            (653,732)           578,481


CRESCENT TECHNOLOGY VENTURES PLC
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2005

          
13.  Reconciliation of movements in shareholders' funds
                                                                                                          2005
                                                                                                             £

       Loss for the period                                                                           (653,732)
       Issue of shares                                                                                 698,981

       Net addition to shareholders' funds                                                              45,249
       Opening shareholders' funds                                                                           -

       Closing shareholders' funds                                                                      45,249


    
14.  Reconciliation of operating loss to net cash outflow from operating
     activities

        Operating loss                                                                             (660,415)
        Change in debtors                                                                            (1,378)
        Change in creditors                                                                           76,810

        Net cash outflow from operating activities                                                 (584,983)

     
15.  Reconciliation of net cash flow to movement in net funds
                                                                                                         2005
                                                                                                          £..
            Net funds at incorporation                                                                      -
            Net cash outflow                                                                            8,162

            Net funds at 31 December 2005                                                               8,162



16.          Analysis of changes in net debt
                                                           At incorporation  Cash flows             31 December
                                                                          £           £                    2005
                                                                                                              £

            Cash in bank and in hand                                      -       8,162                   8,162

     
17.  Related party transactions

During the year the Company paid £500,000 to Crescent Investment Management LLC
(CIM), a company of which Mr Musawer Mansoor ljaz is Chairman, Chief Investment
Officer and shareholder, for the costs associated with preparing Crescent
Technology Venture Plc's initial financing arrangements, costs associated with
establishing the infrastructure that the Board requires to carry out its
intended business plans and providing financial support to certain companies
identified by the Board as being potential investee companies.



CRESCENT TECHNOLOGY VENTURES PLC
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2005

     
18.  Post balance sheet events

On 10 March 2006, the Company issued 2,100,000 ordinary shares of £0.01p fully
paid for cash at 14p per share.  Of these issued shares, 600,000 ordinary shares
were allotted to Directors and Advisers of the Company to remunerate for
services rendered on behalf of the Company during the period.

Also, in March 2006 the Company entered into heads of terms agreements with
Senetas Corporation Limited, a publicly traded company on the Australian Stock
Exchange focused on high-speed encryption technologies, to purchase the whole of
the issued share capital of eCryp Inc, Senetas' biometric security system
business.

This acquisition is subject to shareholders approval at a general meeting.

          
19.  Contingent liabilities

On 31 May 2006 a writ was issued in the High Court of Justice in England & Wales
on behalf of GEM Global Yield Fund Limited (GEM) and GEM Investment Advisers
Inc. (GEMIA) alleging that CTV had failed to honour certain agreements entered
into by either its investment adviser at admission, Crescent Investment
Management LLC (CIM), and/or CTV.

On 23 August 2004, CIM entered into a Subscription Agreement (the Subscription)
with GEM and GEMIA whereby GEM agreed to subscribe up to £175 million for shares
in a technology company. On the same date CIM and GEM entered into an advance
loan agreement (as amended on 6 December 2004) whereby GEM agreed to provide a
loan of up to £12.5 million to a technology company (the Loan).

On 15 December 2004, CTV entered into a Deed whereby, inter alia, CTV agreed to
be bound by the conditions of the loan agreement.  In order to facilitate the
drawdown of the Loan, on 27 January 2005, CTV entered into a deed of adherence
in respect of the Subscription with GEM, GEMIA and CIM.  CTV attempted to draw
down part of the Loan (in an amount of £1.3 million) by notice dated 31 January
2005.  However, GEM refused to make any funds available.  Following several
months of negotiation to resolve the matter, the Directors determined that it
was in the best interests of CTV shareholders for CTV to regard its relationship
with GEM as terminated.

The purported claims by GEM and GEMIA relate to a fee of £1.75 million allegedly
payable by the Company in terms of the Subscription (representing 1% of the
facility amount) and an alleged right to warrants representing 10% of the issued
Ordinary Shares in the capital of the Company on the date of admission, being 13
January 2005.

The Directors do not accept the legitimacy of the claims made. However, in the
interests of CTV shareholders, and entirely without prejudice to the Company's
rights, the Directors seek to dispose of the action by agreement to avoid
prolonged litigation.

     
20.  Financial Instruments

(a)  Interest rate risk

     The Company holds no fixed rate financial assets or liabilities.

     Cash balances attract a floating rate of interest.


(b)  Liquidity risk

     The Company's policy has been to finance its operations through the issue 
     of equity share capital.
     
(c)  Currency risk

     All material monetary assets and liabilities are denominated in the 
     functional currency of the Company.


21.  Publication of the accounts

A copy of the report and accounts has been sent to shareholders and can be
obtained free of charge from the offices of Nabarro Wells & Co Limited, Saddlers
House, Gutter Lane London EC2V 6HS.



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