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Kanyon PLC (KNYN)

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Thursday 25 October, 2007

Kanyon PLC

Interim Results

Kanyon PLC
25 October 2007



25 October 2007

KANYON PLC



Unaudited Interim Accounts for the six months ended 31 July 2007


CHAIRMAN'S STATEMENT

I am pleased to present the interim report of Kanyon Plc ('Kanyon') for the six
months ended 31 July 2007 together with comparatives for the first audited
accounting period from 13 June 2006 to 31 January 2007.

Kanyon acquired the entire issued share capital of Solar Labs Plc ('Solar Labs')
on 3 May 2007. Solar Labs is currently a start up business with the objective of
becoming a leading developer and provider of technology solutions to the solar
energy industries and may use a combination of research collaborations, organic
development and acquisitions to develop a portfolio of intellectual property
rights within solar energy.

Group profits before tax for the six months were £22,000 compared to a loss of
£2,000 for the period to 31 January 2007. Total equity shareholders funds at the
period end amounted to £7.74 million including cash balances of £3.91million,
compared with shareholders funds of £3.38 million at 31 January 2007.

The total consideration payable for Solar Labs was approximately £3.4 million
satisfied by the issue of new Ordinary Shares with a value of £3.3million and
the cash settlement of related acquisition costs amounting to £0.1million.

On completion of the acquisition, I joined the Board as Non - executive
Chairman, Alan Aubrey joined as a Non-executive Director and Matthew Sutcliffe
changed his role from Non-executive Chairman to that of Non-executive Director.

Following completion of the acquisition of Solar Labs, your Directors intend to
continue to identify opportunities they believe fulfill the Company's original
investing objectives but the focus will now be in the field of technology
solutions to the solar energy industries which are complementary to the
Company's enlarged business. As part of this process, the Company will leverage
your directors' considerable experience in the development of collaborations
with academic research intuitions to commercialise intellectual property.

I remain confident that Kanyon will make considerable further progress in its
development during the remainder of the year.



David Norwood
Non-Executive Chairman




KANYON PLC


CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 31 July 2007

                                               Notes            Six months to                Period to
                                                                 31 July 2007          31 January 2007
                                                                 (Un-audited)                (Audited)
                                                                        £'000                    £'000

Administrative expenses                                                                           (52)
                                                                         (68)

OPERATING LOSS                                                                                    (52)
                                                                         (68)

Interest receivable                                                        98                       50

PROFIT/(LOSS) BERORE TAX                                                   30                      (2)

Taxation                                           4                      (8)                        -

PROFIT/(LOSS) FOR THE PERIOD                                               22                      (2)

EARNINGS PER SHARE                                 3                    0.00p                    0.00p
Basic and Diluted



The profit for the period arises from the Group's continuing operations and
includes contributions from subsidiaries acquired in the period as set out in
note 8 of the financial statements.

Comparative figures comprise the period from incorporation on 13 June 2006 to 31
January 2007.




CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period six months ended 31 July 2007


                                         Share             Share    Revenue Reserve             Total
                                       Capital           Premium              £'000            Equity
                                         £'000             £'000                                £'000

At 13 June 2006                              -                 -                  -                 -
Issue of shares                            450             3,150                  -             3,600
Expenses of issue of shares                  -             (213)                  -             (213)
Loss for the year                            -                 -                (2)               (2)
At 31 January 2007                         450             2,937                (2)             3,385

Issue of shares                            434             3,904                  -             4,338

Profit for the year                          -                 -                 22                22

At 31 July 2007                            884             6,841                 20             7,745





KANYON PLC


CONDENSED CONSOLIDATED BALANCE SHEET
At 31 July 2007

                                                           Notes      31 July 2007        31 Jan 2007
                                                                       (Unaudited)          (Audited)
                                                                             £'000              £'000
ASSETS
Non-current assets
Goodwill                                                       7             3,846                  -

Current assets
Trade and other receivables                                                     23                 21
Cash and cash equivalents                                                    3,908              3,381
Total current assets                                                         3,931              3,402

TOTAL ASSETS                                                                 7,777              3,402

LIABILITIES
Current Liabilities
Trade and other payables                                                      (24)               (17)
Tax liabilities                                                                (8)                  -

TOTAL LIABILITIES                                                             (32)               (17)

NET ASSETS                                                                   7,745              3,385

EQUITY
Issued capital                                                 5               884                450
Share premium                                                  6             6,841              2,937
Revenue reserve                                                                 20                (2)

TOTAL EQUITY SHAREHOLDERS' FUNDS                                             7,745              3,385




Approved by the Board and authorised for issue on   25  October 2007.





D R Norwood                                                 M A Bretherton
Non - Executive Chairman                                    Executive Director





KANYON PLC


CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 July 2007

                                                                    31 July 2007          31 Jan 2007
                                                                     (Unaudited)            (Audited)
                                                                           £'000                £'000
OPERATING ACTIVITIES
Operating loss                                                              (68)                 (52)
(Increase) in trade and other receivables                                      -                  (7)
Increase in trade and other payables                                           7                   17

Net cash outflow from operations                                            (61)                 (42)

INVESTING ACTIVITIES
Acquisition of subsidiaries (see note 8)                                    (95)                    -
Cash and bank in subsidiaries at acquisition (see note 8)                    585                    -

Net cash inflow from investing activities                                    490                    -

FINANCING ACTIVITIES
Proceeds from issue of share capital                                           -                3,600
Expenses of issue of share capital                                             -                (213)
Interest received                                                             98                   36

Net cash inflow from financing activities                                     98                3,423

INCREASE IN CASH AND CASH EQUIVALENTS                                        527                3,381

Cash and cash equivalents at the beginning of period                       3,381                    -

CASH AND CASH EQUIVALENTS                                              
AT THE END OF PERIOD                                                       3,908                3,381


Comparative figures comprise the period from incorporation on 13 June 2006 to 
31 January 2007.




KANYON PLC


NOTES TO THE INTERIM FINANCIAL STATEMENTS



1) BASIS OF PREPARATION

The interim financial statements of Kanyon Plc are unaudited condensed
consolidated financial statements for the six months ended 31 July 2007. These
include audited comparatives for the period from incorporation on 13 June 2006
to 31 January 2007.



2) SIGNIFICANT ACCOUNTING POLICIES

The condensed consolidated financial statements have been prepared under the
historic cost convention and incorporate the financials of Kanyon Plc for the
period and its subsidiary undertaking from the date of acquisition.

The accounting policies adopted are consistent with those followed in the
preparation of the Group's annual financial statements for the period ended 31
January 2007.

The condensed interim consolidated financial statements do not constitute
statutory accounts. The statutory accounts for the period to 31 January 2007
have been reported on by the Company's auditors and have been filed with the
Registrar of Companies. The report of the auditors was unqualified.



3) EARNINGS PER SHARE

Earnings per share is based on the profit after tax for the period of £ 22,000
attributable to equity holders of the parent divided by the weighted average
number of ordinary shares in issue during the period of 614,510,424 (period to
31 January 2007: loss £ 2,000 divided by weighted average of 248,491,380
shares). Fully diluted earnings per share are the same as basic earnings per
share.



4) TAXATION

The accrued tax charge for the six month interim period is based on an estimated
effective tax rate of 26.6% after allowance for partial utilisation of tax
losses brought forward.



KANYON PLC

NOTES TO THE INTERIM FINANCIAL STATEMENTS



5) SHARE CAPITAL                                                               Number           £'000

Authorised ordinary share of 1p:

At 13 June 2006, 31 January 2007 and 31 July 2007                       1,000,000,000           1,000

Allotted, issued and fully paid ordinary shares of 1p:

At 13 June 2006                                                                     -               -
Issue of ordinary shares                                                  450,000,000             450

At 31 January 2007                                                        450,000,000             450

Issue of ordinary shares                                                  433,841,307             434

At 31 July 2007                                                           883,841,307             884



On 28th March 2007 the Company allotted and issued 433,841,307 new ordinary
shares at a price of 1p in connection with the acquisition by the Company of the
entire issued share capital of Solar Labs Plc resulting in a share premium of £
3,904,572.


6) SHARE PREMIUM ACCOUNT                                                                          2007
                                                                                                 £'000

At 13 June 2006                                                                                      -
Premium on issue of shares in the period                                                         3,150
Expenses                                                                                         (213)

At 31st January 2007                                                                             2,937

Premium on issue of shares in the period                                                         3,904

At 31st July 2007                                                                                6,841




KANYON PLC


NOTES TO THE INTERIM FINANCIAL STATEMENTS



7) GOODWILL                                                                                       2007
                                                                                                 £'000

At 13 June 2006 and 31 January 2007                                                                  -

Arising on acquisition of subsidiaries (see note 8)                                              3,846

At 31st July 2007                                                                                3,846



8) PURCHASE OF SUBSIDIARY UNDERTAKINGS

On 3 May 2007 the Company acquired 100% of the issued share capital of Solar
Labs Plc (Solar Labs) by issue of 433,841,307 new ordinary shares at 1 pence per
share for a value of £ 4,338,413 together with the settlement in cash of costs
of £ 95,000. This acquisition has been accounted for by the purchase method of
accounting as summarised below:




Period ended 31 July 2007                                                               Solar Labs
                                                                                             £'000
Net assets acquired (100%)


Cash
                                                                                               585
Trade and other receivables                                                                      8
Trade and other payables
                                                                                               (6)

Net assets acquired                                                                            587
Goodwill on acquisition
                                                                                             3,846
Total Consideration
                                                                                             4,433
Satisfied by:
Issue of shares
                                                                                             4,338
Cash
                                                                                                95
Total
                                                                                             4,433


For the period between the date of acquisition 3 May 2007 and 31 July 2007,
Solar Labs did not contribute any revenues to the consolidated income statement
but the profit before tax contribution amounted to £ 3,000. Solar Labs incurred
a loss before tax of £ 35,000 for the period from its incorporation on 4 October
2006 to the 2 May 2007.



KANYON PLC


NOTES TO THE INTERIM FINANCIAL STATEMENTS


9) RELATED PARTY TRANSACTIONS


During the period group companies entered into the following transactions with
Ora Capital Partners Plc which as at 31 July 2007 holds 42.94% of the issued
share capital of Kanyon Plc.


Period to 31 July 2007                                                                          £'000

Management consultancy fees charged                                                                 7
by Ora Capital Partners Plc in the period




Directors' Interests

Directors' interests in Ora Capital Partners Plc ('Ora'). The directors had
investments in Ora as follows as at 31 July 2007:


Director                                                                 % of issued share capital of
                                                                                             Ora held

David Norwood                                                                                   4.25%
Michael Bretherton                                                                              0.08%
Byron Lloyd                                                                                     0.07%
Matthew Sutcliffe                                                                               0.14%



David Norwood and Michael Bretherton are also Directors of Ora Capital Partners
Plc.



10. INTERIM FINANCIAL REPORT

A copy of this interim report will be distributed to shareholders and is also
available electronically on the Company's website at www.kanyonplc.com



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