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Tersus Energy Plc (TER)

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Monday 25 September, 2006

Tersus Energy Plc

Interim Results

Tersus Energy Plc
25 September 2006



                               Tersus Energy Plc

                       ('Tersus Energy' or 'the Company')

               Interim results for the period ended 30 June 2006

Tersus Energy Plc (AIM:TER) today announces unaudited interim results for the
six months ended 30 June 2006.

Highlights

Operational

   •Expansion of the bioenergy portfolio with an investment in Enviro-Control
    Ltd (ECL) of £0.75m - Tersus and ECL have established 50:50 ownership of a
    project development company using ECL technology
   •Acquisition of 100% of the shares of EnVinta Corporation Inc. (EnVinta)
    for US$2.1m consolidating interests in the energy efficiency sector
   •Investment of US$2.0m in a leading Chinese wind blade manufacturer via a
    US partnership
   •Project development with Dynamotive Energy Systems Corporation
    (Dynamotive) actively pursued with ten projects identified in Canada, the
    USA and Scotland
   •£0.22m profit booked from the disposal of Dynamotive shares derived from 
    advisory work and a convertible loan, with a further profit of £0.3m 
    realised since the end of the half year
   •Formalisation of the 50% interest in Jasfour Power and the opening of a
    local office to support the progress of wind farm development in India

Financial

   •Revenue of £1.66m for the half year - (2005 half year: £1.26m; full year:
    £2.73m)
   •Pre-tax loss of £0.31m - (2005 half year: £0.31m*; full year: £0.93m*)
   •Net Assets of £5.57m - (2005 half year: £2.14m; full year: £5.48m)

*Restated to reflect the adoption of FRS 20


Commenting on the results, Tersus Energy's Chairman John Devaney said:
'Sentiment remains strongly behind renewable energy and energy management
activities. The continuing strength of emerging markets also provides a
receptive environment. Tersus has created a significant platform of investment
opportunities since our flotation 18 months ago. We have strengthened our
management team and look forward to accelerating progress in all areas of the
business.'


Ends.


For further information, please contact:

Tersus Energy plc

Steven Levine, Chief Executive Officer                          020 7408 5420
David Wilson, Chief Operating Officer and Finance Director      020 7408 5420

M Communications
Patrick d'Ancona 020 7153 1547



Chairman's statement

Introduction

The first six months of 2006 have seen the social, political, and economic
fundamentals that underpin the renewable energy and energy efficiency sectors
become more relevant and supportive than ever before.

Internationally, continuing concerns over security of energy supply and high
oil and gas prices coupled with increasing awareness of the threat posed by
climate change have increased interest in alternative energy solutions and
technologies that limit carbon emissions.

The continuing strength of emerging markets such as China and India has also
provided a receptive environment for the company.

Tersus's strategy for its Asian Renewables and Bioenergy businesses is to
develop projects with or without joint venture partners, to invest in the
projects alongside third party investors and lenders, and subsequently operate
the projects. 

Tersus Energy Controls' strategy is to build an energy controls business of
significant scale primarily in North America through the acquisition of
controlling interests in businesses operating in this fragmented market.

In just over 18 months since listing on London's AIM in February 2005 the
company has raised £7.0m, much of which has been invested in various companies
and joint ventures worldwide. The most significant of these projects are
discussed below. During the first half of 2006 the emphasis has been to build on
the foundation set down last year. The company now has a significant platform of
joint ventures and investments providing potential future opportunities. The
management team has recently been strengthened in order to drive projects
forward over the next few months and to continue to identify investment
opportunities.

Financial results

In the six months to 30 June 2006 the consolidated turnover was £1.66m, an
increase of £0.39m or 31% over the first six months last year. Turnover includes
£0.37m from advisory fees, £1.23m from Navitas as well as £0.06m from EnVinta, a
subsidiary acquired in May 2006.

The consolidated loss before tax for the period was £0.31m of which £0.30m was
due to the activities of the advisory and investment business. Navitas
contributed a profit of £0.03m for the six months; the results also include a
loss of £0.04m for EnVinta for the trading period since acquisition.

Turnover includes £0.16m relating to the disposal of Dynamotive warrants
received for advisory work. The profit from the disposal is shown in Gross
Profit and amounts to £0.10m. Other operating income of £0.12m is the partial
profit on the realisation of the Dynamotive convertible loan. Since the end of
the half year a further profit of £0.30m has been realised. If the remainder of
the investment is realised at current share prices it would result in an
additional profit of £0.18m.

Building for the future

During August and September the team at Tersus has been strengthened in order to
accelerate the completion of the many development opportunities available to the
company. TC Kundi, who has over 15 years' experience in the development of
renewable and green energy projects, has joined as a development senior vice
president. He will initially support the new projects in India, as well as the
50:50 joint ventures which have been set up to develop projects based on ECL
technology. Dave Townley, who has been associated with the company on a
consultancy basis, will join the team next month to further enhance project
development in North America and brings over 25 years' experience with utility,
electric technology and renewable energy developments. Helena Cooke has also
joined as CFO which will enable David Wilson to spend more time on strategy and
development. In July 2006 Heather Killen joined the board as non executive
director bringing over 16 years' experience in investment and international
business development.

In anticipation of active involvement in raising finance for third party
investments into Tersus's project developments, application has been made to
establish Tersus Energy Capital Limited as an FSA-regulated business. This
business is expected to earn fees from its finance raising activities.

Tersus Asian Renewables (TAR)

The 50% interest in Jasfour Power has been formalised creating a vehicle for
wind power development interests in India. A local office for the project has
now been set up in Bangalore and an investment of US$0.1m was made at the
end of August 2006. Negotiations for the financing of the initial project in
India are due to complete later in the year. This 15MW wind energy project is in
Tamil Nadu and is expected to have a capital value of approximately US$15m.
Projects with an expected capital value of US$100m are under consideration
including the evaluation of two new sites.

The 168MW wind project with First Philippines Wind Corporation (FPWC) continues
to move forward with the engagement of an independent firm to perform a wind
resource assessment at the Pagali site, where the first 80MW of wind turbine
generators are to be installed. Negotiations have commenced with a strategic
local partner to assist in the final stages of development and make a
significant investment in the project. Tersus holds a 25.5% interest in the
joint venture with FPWC, subject to dilution associated with the financing of
the project.

Tersus holds a 50% pre-financing interest in the Namwon Solar Project. This is a
10MW photovoltaic project which is to be located in Namwon City in North Jeolla
Province, South Korea. A memorandum of understanding has been executed between
the city of Namwon and Tersus's partner Hahn Renewable Energy (Hahn) for the
development, financing, construction and operation of the project. Discussions
are taking place with the City of Namwon for the acquisition of the project
site. This project has an expected capital cost in excess of US$70.0m.

Tersus and Hahn each have a 50% pre-financing interest in a 500MW wind project
in Incheon Metropolitan City in South Korea. A memorandum of understanding is
currently being negotiated with the city covering the exclusive rights to
develop, finance, construct and operate the project.

In February 2006 US$2.0m was invested in a leading Chinese wind blade
manufacturer ZhongHang (Baoding) Huiteng Wind Power Equipment Co. Ltd (HT Blade)
via Tang Wind Energy (TWE), a US partnership. The combination of higher
production levels at HT Blade along with a healthy order book is expected to
increase profitability significantly in 2006. TWE has now transferred its
interests in HT Blade to a Cayman Island company, with the same effective
ownership, in anticipation of a listing of HT Blade in due course.

Work continues with Tang Group LLP to create opportunities to invest and
co-develop wind and clean coal projects, primarily in China.

 Partner     Description        Relationship               Future          
                                                           Opportunities   

 Jasfour     Developer and      50% shareholder in project >5 projects     
 Power       operator of wind   development company        representing >  
             projects in India.                            US$500m of      
                                                           capital         
                                                           investment      

 First       168MW onshore wind Co-developer under Joint   4 phases @ 42MW 
 Philippines farm in The        Development Agreement.     per phase       
             Philippines        Tersus acts as lead                        
                                developer with 25.5%       >US$200 million 
                                interest                   of capital      
                                                           investment      

 Hahn        On and off shore   50:50 joint venture        3 wind and 2    
             wind and solar     between Tersus and Hahn    solar projects  
             electric in South                                              
             Korea                                         >US$1.5bn of       
                                                           capital          
                                                           investment       
 
 HT Blade    One of China's     3% of HT Blade through     Further        
             largest domestic   investment in Tang Wind    investment in HT
             developers and     Energy                     Blade is        
             manufacturers of                              possible subject
             wind blades                                   to price        
                                                           negotiation and  
                                                           continuing      
                                                           progress towards
                                                           IPO              

 Tang Energy US/China based     US$500k secured            Multiple sites   
             project            convertible debt           under            
             development                                   negotiation      
             company            33.3% shareholder         
                                                          
             Wind and clean            
             coal                         

Most of the arrangements above include the right to invest into future projects
and earn fees through securing equity and debt for projects.

Tersus BioEnergy (TBE)

In May 2006 Tersus invested £0.75m into the biomass waste-to-energy market
through Enviro-Control Limited (ECL), the developer of a patented thermophilic
anaerobic digestion process. Tersus is aiming to develop, invest into and
operate ECL projects. As part of the investment Tersus and ECL established 50:50
ownership of two ECL related companies. The first, ECL Developments, is a
project development company with exclusive rights to develop projects using ECL
technology. The second company, ECL Organics, is a sales and marketing company
with exclusive rights to sell high quality fertiliser and other by-products
generated in the ECL anaerobic digestion process. ECL Developments has over 15
projects in the pipeline representing approximately US$300m in capital value;
development is accelerating and proposals are being finalised for North American
and European opportunities.


The US$0.5m convertible debt investment in Dynamotive, a fast pyrolysis wood
waste to BioOil technology provider has generated nearly US$1.0m of profit to
date (see highlights). The investment terms involve a joint project development
agreement which initially focuses on 10 projects in North America, with
additional potential opportunity for projects in Europe and elsewhere. Tersus
and Dynamotive will be joint owners in these projects, the actual ownership
structure being dependant on the contribution of each partner to the project.
The projects will exclusively use systems developed by Dynamotive with Tersus
providing the commercial development. Capacity of the initial projects range
from 200 to 400 tonnes per day and the projects have been selected based on the
ability economically to support a cogeneration power cycle.  The design of
subsequent projects will consider bio-oil refinery without power cycle.

 Partner      Description   Relationship                     Future            
                                                             Opportunities     

 ECL          Thermophilic  13.6% of ECL, the IP holding     15+ projects in   
 Developments anaerobic     company, option to increase to   US, UK and Asia.  
              digestion.    20%. 50% of project development                    
              Organic waste co. for ECL technology; 50% of   >US$300m of capital 
              to BioGas,    byproduct co. selling and        investment        
              organic       marketing ECL by-product                           
              fertiliser,   
              electricity  
              co-generation

 Dynamotive   Fast          US$0.5m secured convertible debt >10 projects in   
              Pyrolysis.    in OTCBB stock currently         USA and Europe.   
              Wood waste to being realised                       
              BioOil & Char                                  >US$175m of capital 
              and                                            investment        
              electricity   Project development for US and  
              co-generation overseas with right to invest,  
                            and to earn fees through project
                            introductions                   

Tersus Energy Controls (TEC)

In the first six months of 2006 Navitas Technologies Inc (Navitas) has improved
sales by over 20% compared to the first half of last year. However exchange
differences and a change in product mix have reduced the profit impact of this
increase in trade. The management at Navitas has been strengthened by the recent
appointment of a new CEO and a Director of Engineering. The new team are charged
with ensuring that plans for growth are successfully implemented and
profitability continues to improve. A further investment is being made in
Navitas to fund the development of a new product line which will be available at
the end of the year.

EnVinta was acquired on 8 May 2006 for US$2.1m and one month of their trading
results has been included in the Tersus Energy Plc consolidated profit and loss
account. Since acquisition EnVinta has secured three major contracts valued at
US$1.8m over a two year period. These contracts support the design and
implementation of the Sustainable Energy Efficiency Development (SEED) program
for Southern California Edison and the provision of EnVinta software for San
Diego Gas & Electric.

In the first half of 2006 Tersus invested US$0.1m out of its option to invest
US$0.4m in Thor Power Corporation. A joint venture agreement is being finalised
under which Tersus will use Thor technologies to pursue growth in the electric
and hybrid motor vehicle market. In the first half of 2006 Thor had completed
the development of a 5KW motor and controller for the industrial tool and
appliances market and extensive product testing is now in progress.


 Partner       Description              Relationship Future Opportunities  

 Navitas       Designs, manufactures    100% owner   US$500k committed as    
               and markets high                      additional equity to  
               performance electronic                broaden product range 
               control systems for DC              
               motors for wide variety             
               of electric vehicles                

 EnVinta       US-based developer of    100% owner   Expand software       
               energy and environmental              product range and     
               information software.                 expand sales effort   
               Installed base >100      
               utilities and large    
               private, public clients

 Thor Power    Developer of brushless   6.25%        JV agreement to target
               DC ('BLDC') motor and    shareholding electric and hybrid   
               controller technology.   options to   motor vehicle markets 
               More efficient than      increase  
               traditional AC = 200%    holding to
               power for half the size  21%  

Other Activities

Proteus, into which Tersus invested US$0.2m in 2005, is negotiating to acquire
marginal oil fields with the intent of redeveloping and exploiting such fields
with non-conventional technology and is in the process of negotiating terms and
conditions in connection with both corporate and 'field' financings. The
completion of Proteus's financing activities will generate US$0.3m of fee income
for Tersus which will be reinvested. Tersus will then have invested US$0.5m
which will be equivalent to approximately 2.5% ownership in the company. An
option agreement has been executed whereby Tersus has the right to purchase
approximately 3% of the company for US$0.43m.

Tersus continues to offer advisory services where the assignment is relevant to
Tersus's core skills and where significant fees or equity can be raised from
successful completion. Advisory clients include Bens Run and California Wind.

Tersus is in the process of establishing an FSA-regulated business through a new
subsidiary Tersus Energy Capital Ltd, which is expected to generate fee income.

 Partner       Description         Relationship       Future Opportunities 

 Proteus       Acquiror,           US$200k equity     1) Exercise US$300k of 
 Energy        redeveloper and     investment         options in Proteus   
               operator of oil and                    equity, 2) US$22m      
               gas fields.         Financial advisor  fundraising through  
               Optimising oil                         Dubai Islamic Bank,  
               production via                         3) Project           
               superior technology                    opportunities linked 
               and operations                         to DIB fundraise     

 Bens Run      20bcf salt dome     Advisory client    Fees earned on       
               unique salt cavern  (sell-side)        successful sale of   
               gas storage                            site                 
               business                             
               development                          
               opportunity                          

 California    3 mature wind       Advisory client    US$4m development      
 Wind          projects totalling  (buy-side)         capital              
               375MW being                           
               developed in                           >US$400m total capex   
               Southern California

                                       

Conclusion

Sentiment remains strongly behind renewable energy and energy management
activities. The continuing strength of emerging markets also provides a
receptive environment. With a strengthened management team and an exciting
pipeline of opportunities the Company is in a strong position to accelerate the
development of all areas of its business.


John Devaney
Chairman
22 September 2006


Consolidated Profit and Loss Account

                                                       Restated
                                  Note  (Unaudited) (Unaudited)    Restated
                                           6 months    6 months   12 months 
                                           ended 30    ended 30       ended
                                          June 2006   June 2005 31 Dec 2005
                                                  £           £           £

Turnover                         2        1,655,780   1,263,533   2,734,141

Cost of sales                             (936,116)   (950,956) (2,042,874)

Gross profit (i)                            719,664     312,577     691,267

Administrative expenses (iii)           (1,238,917)   (648,661) (1,675,204)

Other operating income (ii)                 117,672           -           -

Operating loss                            (401,581)   (336,084)   (983,937)

Net interest                                 90,180      23,132      53,362

Loss on ordinary activities               
before taxation                           (311,401)   (312,952)   (930,575)

Taxation                                          -    (22,362)           -
Retained loss for the financial           (311,401)   (335,314)   (930,575)
period

Loss per share

Basic                            4           (0.8p)      (1.4p)      (3.6p)
Diluted                                         n/a         n/a         n/a



(i)                   Gross profit includes £104k arising from the disposal of
Dynamotive warrants received for advisory work.

(ii)                  Other operating income is the profit on the partial
realisation of the Dynamotive convertible loan. Since the end of the half year a
further £299k of profit has been realised on disposals of this loan. The
remainder of the investment is expected to be realised during 2006 which would
result in an additional profit of £182k at current share prices.

(iii)                Includes six months of trading for Navitas Technologies
Limited (six months ended 30 June 2005: 11 weeks' trading) and eight weeks of
trade for Envinta which was acquired on 8 May 2006.


Consolidate Balance Sheet
                                                       Restated 
                                        (Unaudited) (Unaudited)                 
                                              As at       As at    Restated   
                                            30 June     30 June       As at
                                               2006        2005 31 Dec 2005               
                                                  £           £           £

 Fixed assets                                                              
 Intangible assets                        1,521,178     259,327     429,463
 Tangible assets                            107,540      42,079      35,802
 Investments                              2,415,362           -     337,625

                                          4,044,080     301,406     802,890
 Current assets                                                            
 Stock                                      421,239     222,937     397,380
 Debtors                                  1,135,062     476,432   1,333,893
 Investments                                319,488           -     319,181
 Cash at bank and in hand                   491,064   1,578,824   3,387,575

                                          2,366,853   2,278,193   5,438,029

 Creditors: amounts falling due           
 within one year                          (841,352)   (442,516)   (761,390)         

 Net current assets                       1,525,501   1,835,677   4,676,639 

 Total assets less current                
 liabilities                              5,569,581   2,137,083   5,479,529 

 Capital and reserves                
 Called up share capital                    190,231     130,751     186,307 
 Share premium account                    6,417,113   2,290,147   6,075,603
 Merger reserve                           1,499,766   1,579,625   1,499,766
 Share option reserve                        95,933       6,318      28,774 
 Profit and loss account                (2,633,462) (1,869,758) (2,310,921) 
 Shareholders' funds                      5,569,581   2,137,083   5,479,529 


Debtors include £239k held in a broker's client account arising from the sale of
Dynamotive shares.


Consolidated Cash Flow Statement

                                                       Restated 
                                         (Unaudited) (Unaudited)   
                                           6 months    6 months 
                                              ended       ended   12 months   
                                            30 June     30 June       ended
                                               2006        2005 31 Dec 2005               
                                     Note         £           £           £


Net cash outflow from operating      
activities                           6      (803,660)   (304,130) (1,021,184)

Returns on investments and servicing
of finance
Interest received                              44,930      23,132      37,764
Interest paid                                   (156)           -       (426)

Net cash inflow from returns on                
investments and servicing of finance           44,774      23,132      37,338

Capital expenditure and financial
investment
Purchase of intangible fixed assets
                                             (45,511)           -    (73,169)
Purchase of tangible fixed assets            (21,671)    (24,930)    (23,866)

Net cash outflow from capital                
expenditure and financial investment         (67,182)    (24,930)    (97,035)

Acquisitions and disposals
Purchases:
EnVinta Corporation Inc., including
associated cost                             (892,843)           -           -
Navitas business, including                         -   (506,425)   (500,981)
associated costs
Fixed asset investments and               
associated costs                          (2,081,855)           -   (336,920)
Net cash outflow from acquisitions        
and disposals                             (2,974,698)   (506,425)   (837,901)

Cash outflow before financing and         
management of liquid resources            (3,800,766)   (812,353) (1,918,782)

Management of liquid resources
Purchase of current asset                    
investments                                  (88,269)           -   (319,181)
Sale of current asset
investments-net proceeds                      324,079           -           -
Sale/(purchase) of short term
deposits                                    2,890,000           - (3,250,000)

Financing
Issue of shares
- on listing                                        -   3,000,000   3,000,000
- on placing in December 2005(a)              665,000           -   3,335,000
- other                                             -      75,001      75,001
Share issues expenses                               -   (754,103)   (913,092)
(Reduction)/increase in bank loan             (1,800)           -      62,743
Net cash inflow from financing                663,200   2,320,898   5,559,652

(Decrease)/increase in cash                  (11,756)   1,508,545      71,689

(a) £665k relates to cash for the December 2005 share issue received in January
2006.


Consolidated statement of total recognised gains and losses

                                                          Restated   
                                            (Unaudited) (Unaudited)  Restated
                                              6 months    6 months  12 months
                                              ended 30    ended 30   ended 31
                                             June 2006   June 2005   Dec 2005
                                                     £           £         £

Loss for the financial period                (311,401)   (335,314) (930,575)
Exchange differences                          (11,140)    (90,208)    63,890
Total recognised gains and losses for the    (322,541)   (425,522) (866,685)
financial period



Notes

1. BASIS OF PREPARATION

These unaudited interim financial statements, which are for six months ended 30
June 2006, do not constitute Statutory Accounts within the meaning of section
240 of the Companies Act 1985. They have been prepared in accordance with
applicable accounting standards and under the historical cost convention using
the principal accounting policies of the Group set out in the Group's 31
December 2005 annual report and financial statements with the exception of the
adoption of FRS 20 (Share-based Payments). The costs relating to share-based
payments have been included in administrative expenses and amount to £67k for
the six months ended 30 June 2006 (£6k for the six months ended 30 June 2005;
£29k for the 12 months ended 31 December 2005). The financial statements at 31
December 2005 and at 30 June 2005 have been restated to reflect this change in
accounting policy. The interim financial statements were approved by the Board
on 22 September 2006.

2. SEGMENTAL INFORMATION
                                          (Unaudited) (Unaudited) 
                                             6 months    6 months  12 months
                                             ended 30    ended 30      ended
                                            June 2006   June 2005     31 Dec
                                                                        2005
                                                    £           £          £

Turnover
Canada - Navitas                            1,226,998     417,108  1,499,242
USA - EnVinta                                  63,488           -          -
USA - advisory services                       234,099     841,425  1,227,597
UK - advisory services                        131,195       5,000      7,302
                                            1,655,780   1,263,533  2,734,141

3. ACQUISITION NOTE

On 8 May 2006 the company acquired 100% of EnVinta Corporation Inc., a company
incorporated in Delaware, USA.

                                                 Book Fair value      Fair
                                                value adjustment     value
                                                    £          £         £
Assets and liabilities acquired:
Fixed assets                                   53,766      1,613    55,379
Debtors                                       128,118          -   128,118
Creditors                                    (24,606)          -  (24,606)
Cash                                            9,794          -     9,794

Net assets acquired                           167,072      1,613   168,685

Shares issued in part consideration                                345,435
Cash                                                               646,556
Loan made to company to settle liabilities                         
on acquisition                                                     194,892 
Capitalised costs associated with
acquisition                                                         51,395
Fair value of consideration paid                                 1,238,278

Provisional goodwill                                             1,069,593


4. EARNINGS PER SHARE
                                                    Restated
                                  (Unaudited)    (Unaudited)        Restated
                               6 months ended 6 months ended 12 months ended  
                                 30 June 2006   30 June 2005     31 Dec 2005                
                                            £              £               £

Loss for the financial period       (311,401)      (335,314)       (930,575)

Weighted average number of             Number         Number          Number
shares                              of shares      Of shares       of shares

For basic earnings per share       37,491,182     24,487,198      25,599,499


The number of shares has increased from the comparative period as a result of
shares issued in December 2005 to raise finance and the issue of share capital
as part of the consideration for the acquisition of EnVinta Corporation Inc. in
May 2006.

5. DIVIDENDS

No dividends have been paid or proposed for the period.

6. NET CASH OUTFLOW FROM OPERATING ACTIVITIES
                                                      Restated
                                       (Unaudited) (Unaudited)     Restated
                                          6 months    6 months    12 months
                                             ended       ended        ended
                                           30 June     30 June  31 Dec 2005
                                              2006        2005
                                                 £           £            £

Operating loss                           (401,581)   (336,084)    (983,937)
Share options                               67,159       6,318       28,774
Depreciation and amortisation                8,784           -        8,498

Net profit on sale of current asset      
investment                               (221,659)           -            -
Exchange differences written off             (322)    (15,335)     (17,049)
Increase in stock                         (27,638)   (105,155)    (308,609)
(Increase)/decrease in debtors           (300,092)     139,569        4,343
Increase in creditors                       71,689       6,557      246,796
Net cash outflow from operating          
activities                               (803,660)   (304,130)  (1,021,184)


7. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                                       (Unaudited) (Unaudited)
                                          6 months    6 months    
                                             ended       ended    12 months    
                                           30 June     30 June        ended
                                              2006        2005  31 Dec 2005
                                                 £           £            £

(Decrease)/increase in cash in the
period                                     (6,511)   1,512,938       71,689
(Decrease)/increase in liquid          
resources                              (2,890,000)           -    3,250,000
Decrease/(increase) in bank loan             2,418           -     (62,743)
                                       (2,894,093)   1,512,938    3,258,946
Net funds at the beginning of the        
period                                   3,324,832      65,886       65,886
Net funds at the end of the period         430,739   1,578,824    3,324,832

8. SHARE CAPITAL

                                                       Restated
                                                     (Unaudited)    
                                        (Unaudited)       As at    Restated   
                                              As at     30 June       As at
                                       30 June 2006        2005 31 Dec 2005
                                                  £           £           £
Authorised
200,000,000 ordinary shares of 0.5p       
each                                      1,000,000   1,000,000   1,000,000

Issued and fully paid
38,046,376 ordinary shares of 0.5p          
each                                        190,231     130,751     186,307

On 8 May 2006 785,079 shares were issued at £0.44 as part consideration for the
acquisition of EnVinta Corporation Inc.

9. DIRECTORS INTERESTS IN ORDINARY SHARES

The interests of the Directors in ordinary shares, all of which are beneficial,
are as follows:

                                    As at 30 June 2006     As at 31 December
                                                                        2005
Directors                                   Percentage            Percentage
                                      No of  of issued      No of  of issued
                                   ordinary      share   ordinary      share
                                     shares    capital     shares    capital

J F Devaney (1)                     133,333       0.35    133,333       0.36
S J Clayton(2)                    1,084,998       2.85  1,084,998       2.91
S P Levine                        1,793,102       4.71  1,793,102       4.81
D T Wilson (1)                      147,271       0.39    147,271       0.40
N N Trulsvik                              -          -          -          -

Note:

(1)     J F Devaney and D T Wilson have been granted options by Moore, Clayton &
Co.,Inc. over 300,000 existing ordinary shares held by Moore,Clayton & Co.,Inc.
which are exercisable for nominal consideration.

(2)     S J Clayton is a controlling shareholder in Moore, Clayton & Co.,Inc.
which holds ordinary shares in the Company, in which she is therefore
interested.

(3)     A R Moore and K I Denos resigned as directors on 20 February 2006.

Options to subscribe for ordinary shares

Certain directors held the following options to subscribe for Ordinary shares:

                                    Ordinary            
                                      shares            Exercise   Exercise   
              Type of      Date of     under Exercise      dates      dates          
              scheme        grant     option    price      From         To 
                                                                  
                                              £
J F Devaney   Stand-alone 01/02/05  400,000   0.500     04/02/05   03/02/10
              New Plan*   31/05/06  200,000   0.500     31/05/06   30/05/16
S P Levine    Rollover    01/05/02  1,114,813 0.134     Vested     30/04/07
              New Plan    15/10/05  400,000   0.500     15/10/05   14/10/15
              New Plan*   31/05/06  300,000   0.500     31/05/06   30/05/16
D T Wilson    Stand-alone 01/02/05  400,000   0.500     04/02/05   03/02/10
              New Plan    15/10/05  800,000   0.500     15/10/05   14/10/15
              New Plan*   31/05/06  300,000   0.500     31/05/06   30/05/16
N N Trulsvik  Stand-alone 01/02/05  200,000   0.500     04/02/05   03/02/10
                                   4,114,813


* Share options were granted on 31 May 2006 exercisable at £0.50. The options
vest in three equal tranches, the first on 31 May 2006 and the remainder on the
same day in each of the following two years. The options are exersable within 10
years.


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