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Warthog PLC (WHOG)

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Friday 30 September, 2005

Warthog PLC

Final Results

Warthog PLC
30 September 2005

                                   Warthog plc
                                        
                              Chairman's Statement

                            Year ended 31 March 2005


Our results

As set out in my last statement on the 29 December 2004 these accounts reflect
the difficult trading in the year up to the sale of all of the subsidiaries to
Tiger Telematics Inc which took place on 1st November 2004. I therefore do not
propose to comment further about them.

The current position is that we have been advised of no claims arising out of
the completion accounts and the warranties and indemnities given to the
purchaser on the disposal of the subsidiaries. We therefore continue to own
478,866 shares in Tiger Telematics Inc, which as at today's date had a value of
$6.2m. These shares together with £150,000 are held in an escrow account under
the control of the lawyers for Tiger Telematics Inc. Both the cash and shares
are due for release to the company on 2nd November 2005. As of today's date we
have £76,777 in cash and ongoing costs of £6,500 per month.

Since 1st November 2004 the value of Tiger Telematics Inc shares has fluctuated
between $11 and $31 per share. Tiger Telematics Inc is still an early stage
company that has not yet achieved any significant turnover and is still heavily
loss making. We cannot, therefore, have any certainty as what these shares could
realise if we were to sell post 2nd November. However up to that point the
478,866 shares remain in escrow.

Under the sale arrangements it was anticipated that Warthog plc would have to
change its name as the name Warthog would be required for use in the Tiger
Telematics Group. This has not taken place as the previous Warthog subsidiaries
have changed their names to Gizmondo adopting the name of their immediate parent
company Gizmondo Europe ltd which is a wholly owned subsidiary of Tiger
Telematics Inc.

The directors are currently reviewing acquisition opportunities.




Ian Templeton
Chairman



                 Notes     Continuing     Discontinued      Total         2004
                         Operations    Operations 2005

                               2005                £         2005            £

                                  £                             £

             
TURNOVER             1            -        1,714,281    1,714,281    5,674,899

Cost of sales                59,187        2,676,184    2,735,371    8,674,367
Exceptional
costs                5      105,218          578,347      683,565    4,424,991

Gross loss                 (164,405)      (1,540,250)  (1,704,655)  (7,424,459)

Other
operating
expenses (net)       2      432,837        1,414,856    1,847,693    1,627,981

OPERATING LOSS             (597,242)      (2,955,106)  (3,552,348)  (9,052,440)

Profit on sale
of
discontinued
operations                        -        3,410,874    3,410,874            -
Profit on sale
of
intellectual
property                          -          202,101      202,101            -

PROFIT/(LOSS)
ON ORDINARY
ACTIVITIES
BEFORE
INTEREST                   (597,242)         657,869       60,627   (9,052,440)

Investment
income               3                                      1,428        2,161

Interest
payable              4                                     66,070      192,394

LOSS ON
ORDINARY
ACTIVITIES
BEFORE
TAXATION                                                   (4,015)  (9,242,673)

Taxation             7                                    214,357     (154,816)
                                  
RETAINED
PROFIT/ (LOSS)
FOR THE YEAR        18                                    210,342   (9,397,489)
                                                            

Earnings per
ordinary share
- basic              9                                       0.06p      (12.85)p
Earnings per
ordinary share
- diluted            9                                       0.06p      (12.85)p
                                  


                                                           2005           2004
                                                              £              £
Profit/ (Loss) for the financial year                   210,342     (9,397,489)

Currency translation gain / (loss) on foreign currency
net investments                                               -        (43,656)

Total recognised gains and losses relating to the year  210,342     (9,441,145)

                                            Notes         2005            2004

                                                             £               £

FIXED ASSETS
Intangible assets                              12            -         751,309
Tangible assets                                10            -       1,959,875
Investments                                    11    3,888,885               -

                                                     3,888,885       2,711,184

CURRENT ASSETS
Stock                                          13            -         435,678
Debtors                                        14      186,059       1,154,631
Cash at bank and in hand                               113,390         360,845

                                                       299,449       1,951,154

CREDITORS: Amounts falling due within one
year                                           15      (32,040)     (1,154,954)

NET CURRENT ASSETS                                     267,409         796,200

TOTAL ASSETS LESS CURRENT LIABILITIES                4,156,294       3,507,384

PROVISIONS FOR LIABILITIES AND CHARGES         16            -         (11,464)

                                                     4,156,294       3,495,920

CAPITAL AND RESERVES
Called up share capital                        17    3,478,821       3,197,847
Contingent share capital                       19            -         143,442
Share premium account                          18    9,555,365       9,190,402
Merger reserve                                 18            -          52,463
Profit and loss account                        18   (8,877,892)     (9,088,234)

SHAREHOLDERS' FUNDS                                  4,156,294       3,495,920

                                  

                                            Notes         2005            2004

                                                             £               £

FIXED ASSETS
Investments                                    11    3,888,885         945,311

CURRENT ASSETS
Debtors                                        14      186,059       6,550,962
Cash at bank and in hand                               113,390         683,561

                                                       299,449       7,234,523

CREDITORS: Amounts falling due within one
year                                           15      (32,040)       (320,106)

NET CURRENT ASSETS                                     267,409       6,914,417

TOTAL ASSETS LESS CURRENT LIABILITIES                4,156,294       7,859,728
                                  
                                                     4,156,294       7,859,728

CAPITAL AND RESERVES
Called up share capital                        17    3,478,821       3,197,847
Contingent share capital                       19            -         143,442
Share premium account                          18    9,555,365       9,190,402
Profit and loss account                        18   (8,877,892)     (4,671,963)
                                  
SHAREHOLDERS' FUNDS                                  4,156,294       7,859,728

                                  

                                              Notes         2005         2004

                                                               £            £

Cash flow from operating activities             20a   (2,594,366)  (3,356,553)

Returns on investments and servicing of
finance                                         20b      (64,642)    (190,233)

Taxation                                                 194,159      168,873

Capital expenditure and servicing of finance    20b    1,602,229     (169,135)
                                  
Acquisitions and disposals of subsidiaries      20b      496,115            -

CASH OUTFLOW BEFORE FINANCING                           (366,505)  (3,547,048)

Financing                                       20b      119,050    3,548,405

INCREASE/(DECREASE) IN CASH IN THE YEAR                 (247,455)       1,357


RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN DEBT

                                                         2005             2004

                                                            £                £

Increase/ (decrease) in cash in the year             (247,455)           1,357

Change in net debt resulting from cash flows                -        1,500,000

MOVEMENT IN NET DEBT IN YEAR                         (247,455)       1,501,357

NET FUNDS/(DEBT) AT 1 APRIL 2004                      360,845       (1,140,512)

NET FUNDS AT 31 MARCH 2005                   20c      113,390          360,845


1 TURNOVER AND PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

The Group's turnover and profit before taxation were all derived from its
principal activity.

Sales originated in the following geographical markets:
                 Continuing         Discontinued         Total            2004
               Operations        Operations 2005

                     2005                    £            2005               £
                        £                                    £

United Kingdom          -              655,114         655,114       3,952,624
USA                     -                1,667           1,667         980,510
EC                      -            1,057,500       1,057,500         741,765

                        -            1,714,281       1,714,281       5,674,899

Loss before tax originated in the following geographical markets:
                                              2005                        2004
                                                 £                           £

United Kingdom                             518,446                  (8,818,923)
USA                                       (553,604)                    269,597
EC                                          31,143                    (693,347)

                                            (4,015)                 (9,242,673)

2   OTHER OPERATING           Continuing    Discontinued     Total        2004
    EXPENSES (NET)          Operations   Operations 2005

                                  2005               £        2005           £
                                     £                           £

    Administration             432,837       1,414,856   1,847,693   1,627,981
    expenses

 3   INVESTMENT INCOME                                    2005            2004
                                                             £               £

     Bank interest receivable                            1,428           2,161

4   INTEREST PAYABLE                                 2005                 2004
                                                        £                    £

    On other loans                                 66,070              192,394



5   LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION                 2005      2004
                                                                   £         £
    Loss on ordinary activities after taxation is stated
    after charging:

    Amortisation of intangible fixed assets                  932,653   214,416
    Depreciation on tangible fixed assets:
    Charge for the year - owned assets                       226,446   477,296
    Auditors' remuneration- audit fees                         7,500    27,986
    Auditors' remuneration- non-audit fees: further           23,190    22,542
    assurance services


Auditor's remuneration for non-audit fees (further assurance services) charged
to the share premium account totalled £Nil (2004: £23,237).
EXCEPTIONAL ITEMS

Exceptional costs of £683,565 (2004: £4,424,991) have been incurred during the
current year. Provisions of £Nil (2004: £4,043,948) have been made in the
current year against the costs incurred in developing certain games. Exceptional
costs of £578,347 (2004: £381,043) relate to the cost of restructuring Group
operations. Exceptional costs of £105,218 relate to legal and professional
charges incurred during the disposal of Group subsidiary's during the year. As
the Group has trade losses to carry forward for tax purposes, there is no effect
of these charges on the Group's tax charge for the year.

6   EMPLOYEES                                                      2005   2004
                                                                    No.    No.
    The average monthly number of persons (including directors)
    employed by the group during the year was:

    Administration                                                    7     15
    Technical and design                                             69    211

                                                                     76    226

                                                              2005        2004
                                                                 £           £
Staff costs for above persons:
Wages and salaries                                       2,442,132   7,248,460
Social security costs                                      292,715     872,823
Other pension costs                                        107,076     294,489

                                                         2,841,923   8,415,772



  6   EMPLOYEES (continued)                                 2005          2004
                                                               £             £
      DIRECTORS' REMUNERATION

      Emoluments                                         178,597       354,343
      Amounts paid to money purchase pension schemes       6,401        16,363
      Compensation for loss of office                          -        47,500

      Total emoluments                                   184,998       418,206

                                                                 2005     2004
                                                               Number   Number
The number of directors to whom relevant benefits                   3        5
are accruing under money purchase pension schemes was:

                                                                      Emoluments
                                                                 disclosed above
                                                                     include the
                                                                       following
                                                                 amounts paid to
                                                                     the highest
                                                                 paid director.
                                                                 2005     2004
                                                                    £        £

Emoluments for qualifying services                             45,655   93,453
Company pension scheme contributions to money purchase schemes  1,011    3,080

7 TAXATION
                                                            2005         2004
                                                               £            £
Current Tax:
UK corporation tax at 30% on loss of the year                  -            -
Foreign tax                                                    -       11,349
Adjustments in respect of previous periods              (197,358)    (191,098)

Total current tax                                       (197,358)    (179,749)

Deferred tax:
Origination of timing differences                        (16,999)     334,565

Tax on loss on ordinary activities                      (214,357)     154,816

7 TAXATION (continued)

TAX RECONCILIATION

Factors affecting tax charge for the year

The tax assessed for the year is higher than the
standard rate of corporation tax in the UK of 30%
(2004: 30%). The differences are explained below:
                                                             2005         2004
                                                                £            £

Loss on ordinary activities before tax                     (4,015)  (9,242,673)

Loss on ordinary activities multiplied by the standard
rate of corporation tax in the UK of 30% (2004: 30%).       1,205   (2,772,802)

Effects of:
Creation of tax losses                                  1,022,054    2,927,550
Permanent timing differences                                    -       27,791
Capital gains not taxed                                (1,023,262)           -
Other timing differences                                        -       64,325
Capital allowances in excess of depreciation                    -      102,519
Short-term timing differences                                   -       (3,469)
Research and development tax credits                     (197,355)    (191,098)

Tax charge/ (credit) for the year                        (197,358)     154,816


8   PROFIT ATTRIBUTABLE TO THE MEMBERS OF THE PARENT COMPANY

As permitted by Section 230 Companies Act 1985, the company has not presented
its own profit and loss account. Of the retained profit for the year, a loss of
£4,205,929 (2004 loss: £4,656,817) is attributable to the activities of the
holding company.

9 EARNINGS PER SHARE

Earnings and the number of shares used in the calculations of earnings per share
are set out below:

                                                        2005              2004
                                                           £                 £
Basic:
Profit/(loss) after tax                              210,342        (9,397,489)
Weighted average number of shares                336,980,765        73,135,755
EPS (pence)                                             0.06p           (12.85)

Basic and fully diluted earnings are the same due to the loss for the year in
2004; at 31 March 2005 the share price was below the option exercise price and
hence diluted earnings per share are the same as basic as it is assumed that the
options would not be exercised..

10   TANGIBLE FIXED ASSETS
     GROUP                   Land and     Computer      Fixtures,        Total
                            buildings    equipment   fittings and            £
                                    £            £      equipment
                                                                £
     Cost or
     valuation
     1 April 2004           1,770,431    1,712,590        153,611    3,636,632
     Additions                      -       50,637              -       50,637
     Disposals             (1,770,431)  (1,763,227)      (153,611)  (3,687,269)
    
     31 March 2005                  -            -              -            -
                                   
                                   
     Depreciation
     1 April 2004             290,781    1,276,901        109,075    1,676,757
     Charged in the            33,913      179,591         12,942      226,446
     year
     Disposals               (324,694)  (1,456,492)      (122,017)  (1,903,203)

     31 March 2005                  -            -              -            -

     Net book value
                       
     31 March 2005                  -            -              -            -
                       

     31 March 2004          1,479,650      435,689         44,536    1,959,875

11   FIXED ASSET INVESTMENTS               Shares in          Listed     Total
                                                       investments
     GROUP                                subsidiary             £           £
                                         undertaking
                                                   £
     Cost
     At 1 April 2004                          20,500             -      20,500
     Disposals                               (20,500)            -     (20,500)
     Additions                                     -     3,888,885   3,888,885

     At 31 March 2005                              -     3,888,885   3,888,885

     Provision for diminution in value
     1 April 2004                             20,500             -      20,500
     Provision written back                  (20,500)            -     (20,500)

     At 31 March 2005                              -             -           -

     Net book value
     31 March 2005                                 -     3,888,885   3,888,885

     31 March 2004                                 -             -           -



11   FIXED ASSET INVESTMENTS
     (continued)
                                               Shares        Listed      Total
                                       insubsidiary   investments
                                       undertakings             £            £
                                                  £
     COMPANY
     Cost
     At 1 April 2004                      1,245,311             -    1,245,311
     Additions                              526,888     3,888,885    4,415,773
     Disposals                           (1,772,199)            -   (1,772,199)
                       
     At 31 March 2005                             -     3,888,885    3,888,885
                                                  _             _            _
                       
     Provision for diminution in
     value             
     At 1 April 2004                       (300,000)            -     (300,000)
     Provision written back on              300,000             -      300,000
     disposal          
     At 31 March 2005                             -             -            -
                                                  _             _            _
                       
     Net book value:
                       
     At 31 March 2005                             -     3,888,885    3,888,885

     At 31 March 2004                       945,311             -      945,311
                       
On 1 November 2004, the Company sold all its subsidiary investments to Tiger
Telematics Inc. As a result of this sale, the company acquired an investment of
£3,888,885 as settlement against outstanding debt at date of acquisition.

The fair value of assets and liabilities disposed of was as follows:

                                                                             £

Debts transferred to Tiger Telematics Inc                            3,355,552
Cash/shares acquired (see below)                                     4,305,552

Proceeds                                                               950,000

Net assets disposed of                                              (2,460,874)

Profit on disposal of investments                                    3,410,874
                                                                             _

Consideration:
Shares in Tiger Telematics Inc                                       3,888,885
Cash                                                                   416,667

                                                                     4,305,552



12   INTANGIBLE FIXED ASSETS              Goodwill   Intellectual        Total
                                                 £       property            £
                                                                £
     GROUP
     Cost
     At 1 April 2004                     1,121,182          6,818    1,128,000
     Additions                             383,445        202,101      585,546
     Disposals                          (1,504,627)      (208,919)  (1,713,546)

     At 31 March 2005                            -              -            -

     Provision for diminution in
     value
     At 1 April 2004                       369,873          6,818      376,691
     Charge in the year                    932,653              -      932,653
     Disposals                          (1,302,526)        (6,818)  (1,309,344)

     At 31 March 2005                            -              -            -

     Net book value
     31 March 2005                               -              -            -

     31 March 2004                         751,309              -      751,309

13   STOCK                       2005          Group       2005        Company
                                    £           2004          £           2004
                                                   £                         £

     Work in progress               -        435,678          -              -
                       

Work in progress in 2004 related to contracts in respect of which development
costs were recoverable against royalties receivable after publication of the
software.

14   DEBTORS                            2005       Group      2005     Company
                                           £        2004         £        2004
                                                       £                     £
     Due within one year:
     Trade debtors                         -      34,797         -           -
     Amount recoverable on long term       -     965,955         -           -
     contracts
     Amounts owed by Group                 -           -         -   6,343,942
     undertakings
     Other debtors                   177,570      57,476   177,570       1,851
     Corporation tax                       -      13,090         -           -
     Other taxation and social             -           -         -     179,084
     security
     Prepayments and accrued           8,489      83,313     8,489      26,085
     income
                       
                                     186,059   1,154,631   186,059   6,550,962

During the year, the Company wrote off £7,760,338 of inter-company debt.
£4,333,000 of this amount had been provided against in 2004.
15   CREDITORS: Amounts falling due        2005       Group     2005   Company
     within one year
                                              £        2004        £      2004
                                                          £                  £

     Trade creditors                          -     310,670        -   178,085
     Other taxation and social                -     304,758        -    16,509
     security
     Other creditors                          -      17,924        -        77
     Accruals and deferred income        32,040     521,602   32,040   125,435
                       
                                         32,040   1,154,954   32,040   320,106
                       


PROVISION FOR LIABILITIES AND CHARGES

Deferred taxation provided in the financial statements and the unprovided
potential asset is as follows:
                                          Unprovided asset     Amount provided
                                           2005         2004     2005     2004
                                              £            £        £        £
GROUP
Accelerated capital allowances and
other                                         -      (44,685)       -        -
timing differences
Tax losses available against future
profits                                 (99,200)  (2,643,882)       -        -
                       
                                        (99,200)  (2,688,567)       -        -
                       

The movement on deferred taxation was as follows:
                                                                             £
Balance at 1 April 2004                                                 11,464
Transfer to profit and loss account                                    (16,999)
                       
Balance at 31 March 2005                                                (5,535)
                                                                             _
                       


SHARE CAPITAL

Movement in share capital
                                               Number            Nominal value
                                                                             £

At 1 April 2004                           319,784,645                3,197,846
Issued during the year                     28,097,478                  280,975
                       
At 31 March 2005                          347,882,123                3,478,821
                       
                       

During the year 28,097,478 ordinary shares were issued as follows:

                              Number       Nominal value       Share premium
                                                       £                   £
Issued at 2p               8,500,000              85,000              85,000
Issued at 40.63p             353,090               3,531             139,911
Issued at 1.9925p         19,244,388             192,444             191,001
                       
                          28,097,478             280,975             415,912
                       
                    

                                                           2005           2004
                                                              £              £

Authorised:
600,000,000 shares of 1p each                         6,000,000      6,000,000
                    

Allotted, issued and fully paid:
347,882,123 ordinary shares of 1p each (2004:
319,784,645)                                          3,478,821      3,197,847
                    

17 SHARE CAPITAL (continued)

SHARE DISCLOSURES

The Group has granted the following options to subscribe for ordinary shares of
1p each, as follows:

Grant date      Subscription         Number of Lapsed in year  Exercise period
                                    shares for
                                  which rights
                               are exercisable

               price per share

Unapproved
share options:

14 November
2000                    32.0p        156,250               -       14 Nov 2004 -
                                                                   14 Nov 2010
17 June 2004            19.0p        191,492        (191,492)     4 Feb 2006 - 4
                                                                      Feb 2013
Approved share
options:
7 December
2000                    20.0p        819,936        (819,936)     7 Dec 2004 - 7
                                                                      Dec 2010
5 November
2001                    44.5p        257,600        (257,600)     5 Nov 2005 - 5
                                                                      Nov 2011
EMI share
options:
7 December
2000                    20.0p      1,174,986      (1,174,986)     7 Dec 2004 - 7
                                                                      Dec 2010
5 November
2001                    44.5p         10,000         (10,000)     5 Nov 2005 - 5
                                                                      Nov 2011
21 December
2001                    44.5p        110,000        (110,000)      21 Dec 2005 -
                                                                   21 Dec 2011
12 June 2004            14.5p         68,000         (68,000)      12 Jun 2006 -
                                                                   12 Jun 2013

All share options, other than 156,250 options under an approved scheme and held
by David Robinson, lapsed on 2 November 2004 following disposal of all
subsidiary investments to Tiger Telematics Inc.

RESERVES                               Merger           Share       Profit and
                                      reserve         premium             Loss
                                            £               £          account
                                                                             £
GROUP
At 1 April 2004                        52,463       9,190,402       (9,088,234)
Retained profit for the year                -               -          210,342
Realised on disposal of investment    (52,463)              -                -
Premium on issue of shares                  -         415,912                -
Share issue costs                           -         (50,949)               -

At 31 March 2005                            -       9,555,365       (8,877,892)

COMPANY
At 1 April 2004                             -       9,190,402       (4,671,963)
Retained loss for the year                  -               -       (4,205,929)
Premium on issue of shares                  -         415,912                -
Share issue costs                           -         (50,949)               -

At 31 March 2005                            -       9,555,365       (8,877,892)




RECONCILIATION OF MOVEMENT
IN SHAREHOLDERS' FUNDS           2005        Group         2005      Company
                                    £         2004            £         2004
                                                 £                         £

Profit / (Loss) for the
financial year                210,342   (9,397,489)  (4,205,929)  (4,656,817)
Currency translation gain
on foreign currency net
investments                         -      (43,656)           -            -
Proceeds from issue of
shares                        645,937    5,251,215      645,937    5,251,215
Contingent share capital     (143,443)    (143,443)    (143,443)    (143,443)
                                                                   -----------
Merger reserve realised on
disposal of investments       (52,463)           -            -            -

Net addition/(reduction)
to shareholders' funds        660,374   (4,333,373)  (3,703,435)     450,955
Opening shareholders'
funds                       3,495,920    7,829,293    7,859,728    7,408,773

Closing shareholders'
funds                       4,156,294    3,495,920    4,156,294    7,859,728


17  CASH FLOWS                                               2005         2004
18                                                              £            £
a                    Reconciliation of operating loss
                     to net cash outflow from
                     operating activities
                     Operating (loss)/ profit on       (2,868,783)  (4,627,449)
                     ordinary activities
                     Exceptional costs                   (683,565)  (4,424,991)

                     Operating loss                    (3,552,348)  (9,052,440)
                     Depreciation and amortisation      1,159,099      691,712
                     Decrease in stocks                   380,123    1,198,356
                     Decrease/ (Increase) in debtors     (262,853)   4,105,788
                     Decrease in creditors               (265,924)    (256,313)
                     Other non cash movements             (52,463)     (43,656)
                                                               
                     Net cash outflow from operating   (2,594,366)  (3,356,553)
                     activities
                                                               



20   CASH FLOWS (continued)                                  2005         2004
                                                                £            £
b    Analysis of cash flows for headings netted in the
     cash flow

     Returns on investments and servicing of finance

     Interest received                                      1,428        2,161
     Interest paid                                        (66,070)    (192,394)
                                                               
     Net cash outflow from returns on investments and     (64,642)    (190,233)
     servicing of finance
                                                               

     Capital expenditure and financial investment

     Purchase of tangible fixed assets                    (50,637)    (171,561)
     Sale of intangible fixed assets                      202,101            -

     Sales of tangible fixed assets                     1,450,765        2,426

                                                               
     Net cash outflow from capital expenditure and      1,602,229     (169,135)
     financial investment



     Acquisitions and disposals

     On sale of subsidiary undertakings                   416,667            -

     Net cash transferred with subsidiary                  79,448            -
     undertakings

                                                               
                                                          496,115            -


     Financing

     Issue of ordinary share capital                      170,000    5,425,661
     Share issue costs                                    (50,949)    (377,256)
     Repayment of other long term loans                         -   (1,500,000)
                                                               
     Net cash inflow from financing                       119,050    3,548,405

                                                              


                                                              

  20   CASH FLOWS (continued)     At1 April      Cash flow       At31 March 2005

c      Analysis of net debt            2004              £                   £
                                          £

       Cash in hand and at bank     360,845       (247,455)            113,390

                                         


21 PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the
scheme are held separately from those of the company in an independently
administered fund. The pension cost charge represents contributions payable by
the company to the fund and amounted to £107,076 (2003: £294,489).


22 FINANCIAL INSTRUMENTS

The Group holds and uses financial instruments to finance its operations and to
manage its interest rate, liquidity and currency risks. The Group does not hedge
directly the translation exposure of the profit and loss account whether by use
of options or other derivatives.

As permitted by FRS 13, short-term debtors and creditors have been excluded from
the disclosures, other than the currency disclosures.

a.       Fair values of financial assets and financial liabilities

The fair value of the Group's financial instruments at 31 March 2005 was:

                                          2005                            2004
                 Book Value       Fair Value      Book Value      Fair Value
                            £                £               £               £

Cash at bank          263,390          263,390         360,845         360,845
and in hand
                =============== ================ =============== ===============

All fair values have been determined using appropriate market rates as at 31
March 2005 and by discounting relevant cash flows at the prevailing rate.

As at 31 March 2005 the group had no borrowings.

22 FINANCIAL INSTRUMENTS (continued)

b. Financial assets

Other than cash at bank and short-term debtors the Group has no other financial
assets as at 31 March 2005. All financial assets were at floating rates.

c. Financial liabilities

Other than short-term creditors the Group has no other financial liabilities as
at 31 March 2005.

d. Currency exposures

The Group's borrowing and net assets by currency at 31 March 2005 were:

                                                         2005             2004
                Net operating  Net borrowing          Total net        Total net
                     assets                            assets           assets
                          £                £                £                £

Sterling            267,409                -                -           18,889
US dollar         3,888,885                -                -          171,577
Swedish                   -                -                -          835,344
Krona
                 
     Total        4,156,294                -                -        1,025,810
             

The amounts shown above for net borrowing and total net assets are after taking
into account forward foreign exchange contracts entered into by the Group.

e. Borrowing facilities

The Group had undrawn committed borrowing facilities at 31 March 2005, in
respect of which all conditions precedent had been met, as follows:

                                                         2005             2004
                                                            £                £
Expiring in one year or less                                -          500,000
Expiring in more than one year but not more
than two                                                    -          850,000
years
Expiring in more than two years                             -          900,000
                                                     
                                                            -        2,250,000
                                               

23 CONTROL

In the opinion of the directors there is no single controlling party.



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