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General Industries (GNI)

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Friday 04 June, 2004

General Industries

Final Results

General Industries PLC
04 June 2004


                            General Industries plc
            Preliminary results for the period ending 31 March 2004

Highlights

•     Successful flotation in October 2003
•     Net cash of just under £1m
•     Profit for the period ending 31 March 2004 - £2,400

Richard Wollenberg, Chairman commented:

'Equity markets and business confidence have improved since the beginning of the
year and your board continues to seek a suitable acquisition based on the
strategy outlined in the company's prospectus.'

Chairman's Statement

Dear Shareholder

General Industries was floated on AIM in October 2003 to provide the opportunity
of financing one or more growing unquoted companies wishing to seek capital for
the expansion of their business and a public market for their shares.

A number of potential acquisitions have been examined but to date the companies
and business plans considered have not met your directors' criteria.

Financial
As at 31 March 2004 the company's cash deposits amounting to just under £1m were
placed on bank deposit with interest linked to base rate.

In September 2003 the accounting reference date was changed from 28 February to
31 March. Accordingly, the financial statements cover the 13 month period from 1
March 2003 to 31 March 2004.

Turnover for the period under review was nil and will remain so until an
acquisition is completed. The profit before tax was £2,400 relating entirely to
interest received from cash on deposit less the expenses of running a quoted
company of £14,560 less certain costs relating to the setting up and original
issue of shares. The amount of £47,996 relating to the flotation in October 2003
has been charged to share premium account. Earnings per share were 0.07p. Annual
running costs will continue to remain minimal until such time as an acquisition
is identified. No director received any remuneration during the period.

Dividend
As stated in the company's prospectus the directors do not intend to declare a
dividend in the short term.

Outlook
Equity markets and business confidence have improved since the beginning of the
year and your board continues to seek a suitable acquisition based on the
strategy outlined in the company's prospectus.

J Richard Wollenberg

4 June 2004

For enquiries:
General Industries plc, Richard Wollenberg, Chairman Tel: 01784 437 444
KBC Peel Hunt Ltd, Jonathan Marren Tel : 020 7418 8900

Profit and Loss Account
for the period ended 31 March 2004
                                               Notes 13 months ended   12 months
                                                       31 March 2004       ended
                                                                     28 February
                                                                            2003
                                                                   £           £

Administrative expenses being loss on ordinary              (14,560)           -
activities before interest

Interest receivable and similar income           2            16,960           -

Profit on ordinary activities before taxation   3-4            2,400           -
Tax on profit on ordinary activities             5           (1,023)           -

Profit on ordinary activities after taxation                   1,377           -
being profit for the financial period


Earnings per share                          13 months ended            12 months
                                                                           ended
                                              31 March 2004     28 February 2003
                                                  Pence per            Pence per
                                                      Share                share
                                                      
On profit for the financial period

Basic                                  6               0.07                    -
Diluted                                6               0.07                    -

The above results relate entirely to continuing activities. There were no
acquisitions or disposals of businesses in the period. The profit for the
financial period represents the total gains and losses and the total historical
cost profit recognised for the period.


Balance Sheet
at 31 March 2004
                                                Notes At 31 March At 28 February
                                                             2004           2003
                                                                £              £
Current assets
Debtors                                           8         1,718              -
Cash at bank and in hand                                  978,202              1

                                                          979,920              1
Creditors: amounts falling due within one year    9       (1,540)              -

Net current and net assets                                978,380              1

Capital and reserves
Called up share capital                          10       420,000              1
Share premium account                            11       557,003              -
Profit and loss account                          12         1,377              -

Shareholders' funds - equity                     13       978,380              1

Net assets per share                              7         23.3p         100.0p

These financial statements were approved by the board of directors on 4 June
2004 and were signed on its behalf by:

J Richard Wollenberg
Director


Cash Flow Statement
for the period ended 31 March 2004
                                               Notes 13 months ended   12 months
                                                       31 March 2004       ended
                                                                     28 February
                                                                            2003
                                                                   £           £

Cash outflow from operating activities                      (15,761)           -
Returns on investment and servicing of finance  15            16,960           -

Cash inflow before financing                                   1,199           -
Financing                                       15           977,002           -

Increase in cash in the period                               978,201           -


Reconciliation of Net Cash Flow to Movement in Net Funds
                                                      At 31 March At 28 February
                                                             2004           2003
                                                                £              £

Increase in cash and movement in net funds in the  16     978,201              -
period resulting from cash flows
Net funds at beginning of period                   16           1              1

Net funds at end of period                         16     978,202              1


Reconciliation of Operating Loss to Net Cash Outflow from Operating Activities

                                               13 months ended   12 months ended
                                                 31 March 2004       28 February
                                                                            2003
                                                             £                 £

Operating loss                                        (14,560)                 -
Increase in debtors                                    (1,718)                 -
Increase in creditors                                      517                 -

Net cash outflow from operating activities            (15,761)                 -


Notes
(forming part of the financial statements)

1 Accounting Policies
The following principal accounting policies have been applied consistently in
dealing with items which are considered material in relation to the company's
financial statements. The financial statements have been prepared under the
historical cost convention and in accordance with applicable accounting
standards and with the Companies Act 1985.

Taxation
Provision is made for corporation tax payable at current rates on profits as
adjusted for tax purposes.

Deferred tax is recognised, without discounting, in respect of all timing
differences between the treatment of certain items for taxation and accounting
purposes which have arisen but not reversed by the balance sheet date, except as
otherwise required by FRS 19.


2 Interest Receivable and Similar Income
                                     13 months ended            12 months ended
                                       31 March 2004                28 February
                                                                           2003
                                                   £                          £

On bank deposits                              16,960                          -


3 Staff Numbers and Costs

The average number of persons employed by the company (including executive
directors) during the period was:

                                                             Number of employees
                                  13 months ended                12 months ended
                                    31 March 2004                    28 February
                                                                            2003

Management                                      2                              -

All employees listed are directors, none of whom received any remuneration
during the period (12 months to 28 February 2003: £Nil)

.


4 Profit on Ordinary Activities Before Taxation
                                                 13 months ended 12 months ended
                                                   31 March 2004     28 February
                                                                            2003
                                                               £               £
This is stated after charging the following:

Auditors' remuneration:
Audit fees paid to the company's auditors and                700               -
its associates
Tax compliance and other fees paid to the                  4,000               -
company's auditors and its associates


5 Tax on Profit on Ordinary Activities
                                                 13 months ended 12 months ended
                                                   31 March 2004     28 February
                                                                            2003
                                                               £               £

UK corporation tax at 19% on profits for the               1,023               -
period

Factors affecting the current tax charge for the period

The current tax charge for the period is higher than the small company rate of
corporation tax in the UK of 19% (12 months to 28 February 2003: 19%).

                                                 13 months ended 12 months ended
                                                   31 March 2004     28 February
                                                                            2003
                                                               £               £
Current tax reconciliation
Profit on ordinary activities before tax                   2,400               -

Profit on ordinary activities multiplied by the              456               -
lower rate of corporation tax in the UK of 19 %
(12 months to 28 February 2003: 19%)

Effects of
Expenses not allowed for tax purposes                        567               -

Current tax charge                                         1,023               -


6 Earnings Per Share

Earnings per share has been calculated in accordance with Financial Reporting
Standard 14 - Earnings Per Share using the profit after tax for the financial
period of £1,377 (12 months to 28 February 2003: £Nil) and the weighted average
number of shares in issue during the period as follows:

                                                        Weighted average
                                                        number of shares
                                                 13 months ended 12 months ended
                                                   31 March 2004
                                                                     28 February
                                                                            2003

Basic                                                  1,976,928              10
Adjustment to basic for element of shares to be           18,609               -
issued on
exercise of options

Diluted basis                                          1,995,537              10


7 Net Assets per Share
                                                      At 31 March At 28 February
                                                             2004           2003
                                                        Pence per      Pence per
                                                            share          share

Based on shares in issue at 31 March 2004 of                23.3p         100.0p
4,200,000 (At 28 February 2003:1)


8 Debtors
                                               At 31 March        At 28 February
                                                      2004                  2003
                                                         £                     £

Prepayments and accrued income                       1,718                     -


9 Creditors: amounts falling due within one year
                                              At 31 March         At 28 February
                                                     2004                   2003
                                                        £                      £

Corporation tax                                     1,023                      -
Accruals and deferred income                          517                      -

                                                    1,540                      -


10 Share Capital
                                                      At 31 March At 28 February
                                                             2004           2003
                                                                £              £
Authorised
20,000,000 (2003:Nil) ordinary shares of 10 pence       2,000,000              -
each
Nil (2003: 100) ordinary shares of £1 each                      -            100

Allotted, called up and fully paid
4,200,000 (2003: Nil) ordinary shares of 10 pence         420,000              -
each
Nil (2003:1) ordinary shares of £1 each                         -              1

In September 2003, the authorised share capital of the company was increased
from £100 to £2,000,000 by the conversion of 100 £1 ordinary shares into 1,000
ordinary shares of 10 pence each and the creation of a further 19,999,000 shares
of 10 pence each.

In September 2003, 499,990 of these shares were issued at 20 pence each for
total cash consideration of £99,998 and the resultant share premium of £49,999
was credited to the share premium account.

In October 2003, a further 3,700,000 of these shares were issued at 25 pence
each for total cash consideration of £925,000 and the resultant share premium of
£555,000 was credited to the share premium account.


11 Share Premium Account
                                                                               £

At 1 March 2003                                                                -
On shares issued during the period                                       604,999
Less: Expenses of share issue                                           (47,996)

At 31 March 2004                                                         557,003


12 Profit and Loss Account
                                                                               £

At 1 March 2003                                                                -
Retained profit for the financial period                                   1,377

At 31 March 2004                                                           1,377


13 Reconciliation of Movements in Shareholders' Funds
                                                    At 31 March   At 28 February
                                                           2004             2003
                                                              £                £

At 1 March 2003                                               1                1
Profit for the financial period                           1,377                -
Share premium on shares issued in period (net of        557,003                -
expenses)
Shares issued in period                                 419,999                -

At 31 March 2004                                        978,380                1
14 Commitments

There were no commitments under contract at 31 March 2004 (2003: £Nil).


15 Gross Cash Flows
                                                13 months ended 12 months ended
                                                  31 March 2004     28 February
                                                                           2003
                                                £               £
Returns on investment and servicing of finance
Interest received                                        16,960               -

Financing
Shares issued in the period                           1,024,998               -
Expenses of share issue                                (47,996)               -

                                                        977,002               -


16 Analysis of Net Funds
                           At 1 March 2003        Cash flow          At 31 March
                                                                            2004
                                         £                £                    £

Cash at bank                             1          978,201              978,202




                      This information is provided by RNS
            The company news service from the London Stock Exchange
                                        

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