TIDMAMZ
RNS Number : 9729M
AMZ Holdings plc
09 February 2009
9th February 2009
AMZ HOLDINGS PLC
Interim Results for the six months ended 30 November 2008
AMZ Holdings PLC, the AIM company with 27 acres of resort approved property in
the Penghu Islands, Taiwan, is pleased to announce its Interim Results for the
six months ended 30 November 2008.
Highlights - for the period & post period end
* Gaming Bill passed in Taiwan January 2009: - Completes the statutory process for gaming enablement on the offshore
islands of Taiwan - Penghu formally announces that they will be seeking to develop gaming
resorts
* The Company gained Enterprise Plan Development Approval for the property for an
International Tourism Resort, which is now mandated by the recent Bill as a
requirement for any gaming resort project
* AMZ now the largest and only private landholder on Penghu, with a land size
exceeding the minimum recommendations for a gaming resort made by the advisory
Council of Economic Planning and Development to the Government
* Merrill Lynch appointed on 30 January 2009 to review strategic options
regarding landholding
Michael Treanor, CEO of AMZ said:
"After years of complicated land assembly, zoning and resort design we are
delighted that the property is positioned to take advantage of the anticipated
increase in tourism activity now that Penghu is seeking to embrace the new
gaming legislation."
"Taiwan will be the new destination for Asian gaming tourism development, and
with interest from major international operators in Penghu already since the
Bill was passed, the Company looks forward to maximising the value of the
property for the benefit of our shareholders."
The Company will post the condensed interim financial statements to shareholders
by 16 February 2009 and the full statements will be posted on the company's
website www.amzholdings.com shortly.
For further information please contact:
+--------------------------------+------------------+-------------------------+
| Jonathon Brill/Caroline | Financial PR | Tel: +44(0) 207 831 |
| Stewart, | | 3113 |
| Financial Dynamics | | |
| | | |
+--------------------------------+------------------+-------------------------+
| Stuart Andrews/ | Nominated | Tel: +44(0) 20 7071 |
| Chris Clarke | Adviser | 4300 |
| Evolution Securities Ltd | | |
| | | |
+--------------------------------+------------------+-------------------------+
Website: www.amzholdings.com
Chairman's Statement
I have pleasure in presenting the interim financial statements for AMZ Holdings
PLC ("the Company") (formerly Amazing Holdings PLC) and its subsidiaries
(together referred to as "the group") for the six months ended 30 November 2008.
Recent Developments
On 12 January 2009 the Company reached a major milestone when the Legislative
Yuan in Taiwan approved the Gaming Amendment to the Outer Islands Construction
Act.
The bill, which was signed into law by President Ma Ying-jeou on 27 January
2009, legalises the construction and operation of Las Vegas and Macau-style
casino resorts on the offshore islands. The Directors believe that the group is
the largest private landowner on Penghu, the principal offshore island, and that
Penghu is currently the only island with adequate infrastructure to accommodate
an integrated casino resort.
The economic committee, formed to advise the legislature on regulations to be
promulgated relating to the issuance of licenses and the operation of gaming,
has publicly stated that, among other things, it will recommend a 10 percent
gross gaming tax rate (versus 35 percent in Macau) and a minimum land holding
requirement for successful applicants for a license of 10 hectares (the group
owns slightly less than 11 hectares). A further recommendation was that top-tier
international operators be sought to develop the gaming licences. The group
believes that together with its resort-approved landholding and the recent
indicators from Taiwan, it has strengthened its position.
In light of the recent positive developments, the Company engaged Merrill Lynch
& Co. on 30 January 2009 to assist the Board in evaluating the group's options
in relation to its landholdings in Taiwan. As previously announced, the group
does not intend to build and operate the final casino/resort. It believes that
the way to maximize shareholder value is to enable the construction and
operation of a casino/resort to be handled by an international gaming company.
Financial Review
The group is still at an early stage of development and, as a result, has not
yet generated any trading income. Consequently the group recorded no turnover
during the six months ended 30 November 2008 (2007: GBPnil), and reports an
operating loss after net interest payable of GBP322,019 (2007: GBP27,151) of
GBP780,928 (2007: GBP977,204). The operating loss includes GBP703,672 (2007:
GBP305,101) in connection with share-based payments charge under International
Financial Reporting Standard 2 and a credit of GBP844,837 (2007: charge
GBP88,600) with regard to a gain on currency translation of non-current and
current assets in respect of the group's Taiwan subsidiary. The group continues
to use its working capital to fund the work associated with the development of
the project and other strategic objectives.
The group's net cash at the end of the period was GBP2,510,410 (2007:
GBP474,604) an increase of GBP2,035,806.
The group continues to review financing alternatives for its future working
capital requirements in conjunction with the strategic review being conducted by
Merrill Lynch & Co. and referred to above.
The interim financial statements have been reviewed on the Board's behalf, by
the group's accounting advisers, Scott-Moncrieff CA.
David Mathewson
Chairman
6 February 2009
AMZ HOLDINGS PLC
Condensed consolidated income statement
For the six months ended 30 November 2008
(unaudited)
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| | | Unaudited | Unaudited | Audited |
+------------------------------------+------+----------------+---------------+------------------+
| | | Six months to | Six months | Year to 31 |
| | | 30 November | to 30 | May 2008 |
| | | 2008 | November | |
| | | | 2007 | |
+------------------------------------+------+ + + +
| | Note | | | |
+------------------------------------+------+----------------+---------------+------------------+
| | | | GBP | | GBP | | GBP |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| | | | | | | | |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| | | | | | | | |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| Revenue | | | - | | - | | - |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| | | | | | | | |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| Administrative expenses | | | (458,909) | | (950,053) | | (1,460,367) |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| | | | | | | | |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| Operating loss | | | (458,909) | | (950,053) | | (1,460,367) |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| | | | | | | | |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| Finance revenue | | | 56,361 | | 21,938 | | 42,723 |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| Finance costs | | | (378,380) | | (49,089) | | (163,712) |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| | | | | | | | |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| Loss before taxation | | | (780,928) | | (977,204) | | (1,581,356) |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| | | | | | | | |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| Taxation | | | - | | - | | - |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| | | | | | | | |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| Loss after taxation | | | (780,928) | | (977,204) | | (1,581,356) |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| | | | | | | | |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| Loss for the period attributable | | | (780,928) | | (977,204) | | (1,581,356) |
| to equity holders | | | | | | | |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| | | | | | | | |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| Loss per share: | | | | | | | |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
| Basic and diluted | 2 | | (4.86p) | | (6.08p) | | (9.84p) |
+------------------------------------+------+----+-----------+---+-----------+----+-------------+
All results are from continuing activities.
AMZ HOLDINGS PLC
Condensed consolidated balance sheet
At 30 November 2008
(unaudited)
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | Unaudited | Unaudited | Audited |
+-----------------------------------+------+-------------------+------------------+-------------------+
| | | At 30 | At 30 | At 31 May |
| | | November 2008 | November | 2008 |
| | | | 2007 | |
+-----------------------------------+------+ + + +
| | Note | | | |
+-----------------------------------+------+-------------------+------------------+-------------------+
| | | | GBP | | GBP | | GBP |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| ASSETS | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Property, plant and equipment | 3 | | 6,449,581 | | 5,140,694 | | 5,675,234 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Non-current assets | | | 6,449,581 | | 5,140,694 | | 5,675,234 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Cash and cash equivalents | | | 2,510,410 | | 474,604 | | 3,410,041 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Trade and other receivables | | | 108,249 | | 63,989 | | 103,667 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Current assets | | | 2,618,659 | | 538,593 | | 3,513,708 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Total assets | | | 9,068,240 | | 5,679,287 | | 9,188,942 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| LIABILITIES | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Trade and other payables | | | 247,110 | | 324,841 | | 387,685 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Borrowings | | | - | | 1,000,000 | | - |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Current liabilities | | | 247,110 | | 1,324,841 | | 387,685 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Net current assets | | | 2,371,549 | | (786,248) | | 3,126,023 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Convertible loan notes | | | 4,768,055 | | - | | 4,593,068 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Derivative financial liability | | | 150,283 | | - | | 150,283 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Non current liabilities | | | 4,918,338 | | | | 4,743,351 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Total liabilities | | | 5,165,448 | | 1,324,841 | | 5,131,036 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| NET ASSETS | | | 3,902,792 | | 4,354,446 | | 4,057,906 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Equity attributable to equity | | | | | | | |
| holders of parent | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Share capital | | | 16,077,962 | | 16,077,962 | | 16,077,962 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Share premium | | | 3,758,884 | | 3,758,884 | | 3,758,884 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Capital redemption reserve | | | 150,000 | | 150,000 | | 150,000 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Merger reserve | | | 285,833 | | 285,833 | | 285,833 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Foreign exchange translation | | | (134,826) | | 10,938 | | (56,968) |
| reserve | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| Retained earnings | | | (16,235,061) | | (15,929,171) | | (16,157,805) |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| TOTAL EQUITY | | | 3,902,792 | | 4,354,446 | | 4,057,906 |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
| | | | | | | | |
+-----------------------------------+------+----+--------------+---+--------------+----+--------------+
Signed on behalf of the Board
M. R. Treanor (Director)
D. C. Mathewson(Director)
6 February 2009
AMZ HOLDINGS PLC
Condensed consolidated statement of changes in equity
For the six months ended 30 November 2008
(unaudited)
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| | Share | Share | Capital | Merger | Foreign | Retained | Total |
| | capital | premium | redemption | reserve | exchange | earnings | equity |
| | | | reserve | | translation | | |
| | | | | | exchange | | |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| | | | | | | | |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| At 1 June 2007 | 16,077,962 | 3,758,884 | 150,000 | 285,833 | 17,299 | (15,257,068) | 5,032,910 |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| | | | | | | | |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| Loss for the period | - | - | - | - | - | (977,204) | (977,204) |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| Share-based payments | - | - | - | - | - | 305,101 | 305,101 |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| Foreign exchange loss arising | - | - | - | - | (6,361) | - | (6,361) |
| on consolidation | | | | | | | |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| | | | | | | | |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| At 30 November 2007 | 16,077,962 | 3,758,884 | 150,000 | 285,833 | 10,938 | (15,929,171) | 4,354,446 |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| | | | | | | | |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| Loss for the period | - | - | - | - | - | (604,152) | (604,152) |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| Share-based payments | - | - | - | - | - | 375,518 | 375,518 |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| Foreign exchange loss arising | - | - | - | - | (67,906) | - | (67,906) |
| on consolidation | | | | | | | |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| | | | | | | | |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| At 31 May 2008 | 16,077,962 | 3,758,884 | 150,000 | 285,833 | (56,968) | (16,157,805) | 4,057,906 |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| | | | | | | | |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| Loss for the period | - | - | - | - | - | (780,928) | (780,928) |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| Share-based payments | - | - | - | - | - | 703,672 | 703,672 |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| Foreign exchange loss arising | - | - | - | - | (77,858) | - | (77,858) |
| on consolidation | | | | | | | |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| | | | | | | | |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| At 30 November 2008 | 16,077,962 | 3,758,884 | 150,000 | 285,833 | (134,826) | (16,235,061) | 3,902,792 |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
| | | | | | | | |
+-------------------------------+------------+-----------+------------+---------+-------------+--------------+-----------+
AMZ HOLDINGS PLC
Condensed consolidated cash flow statement
For the six months ended 30 November 2008
(unaudited)
Reconciliation of group operating loss to net cash from operating activities
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| | Unaudited | Unaudited | Audited |
+-----------------------------------------+-----------------------------------------------------+------------------------+------------------------+
| | Six months to 30 | Six months to 30 | Year to 31 May 2008 |
| | November 2008 | November 2007 | |
+-----------------------------------------+ + + +
| | | | |
+-----------------------------------------+-----------------------------------------------------+------------------------+------------------------+
| | | GBP | | GBP | | GBP |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Loss before taxation | | (780,928) | | (977,204) | | (1,581,356) |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Finance costs | | 378,380 | | 49,089 | | 163,712 |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Finance revenue | | (56,361) | | (21,938) | | (42,723) |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Depreciation | | 2,102 | | 1,906 | | 3,975 |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Decrease/(increase) in debtors | | (4,336) | | (29,781) | | (60,420) |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Increase in creditors | | (64,321) | | 27,285 | | 5,868 |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Foreign exchange | | (821,473) | | 57,330 | | (383,236) |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Share based payments | | 703,672 | | 305,101 | | 680,619 |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Net cash from operating activities | | (643,215) | | (588,212) | | (1,213,561) |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Investing activities | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Interest received | | 56,115 | | 21,938 | | 33,685 |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Purchase of property, plant and | | (32,834) | | (792,090) | | (889,314) |
| equipment | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Financing activities | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Interest paid | | (279,697) | | (45,724) | | (124,885) |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Repayment of loan | | - | | - | | (1,000,000) |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Issue of loan stock | | - | | - | | 4,743,351 |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Net (decrease)/increase in cash and | | (899,631) | | (1,404,088) | | 1,549,276 |
| cash | | | | | | |
| equivalents | | | | | | |
+ +-----------------------------------------+-----------+----------+-------------+----------+-------------+
| | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Foreign exchange movements | | - | | 17,927 | | - |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Movement for the period | | (899,631) | | (1,386,161) | | 1,549,276 |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Cash and cash equivalents at beginning | | 3,410,041 | | 1,860,765 | | 1,860,765 |
| of period | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| Cash and cash equivalents at end of | | 2,510,410 | | 474,604 | | 3,410,041 |
| period | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
| | | | | | | |
+-----------------------------------------+-----------------------------------------+-----------+----------+-------------+----------+-------------+
AMZ HOLDINGS PLC
Notes to the condensed consolidated interim financial statements for the six
months ended 30 November 2008
1. Basis of preparation and accounting policies
These financial statements are the unaudited interim consolidated financial
statements of AMZ Holding PLC, a company incorporated in the Isle of Man, and
its subsidiaries (together referred to as the "Group") for the six month period
ended 30 November 2008. They have been prepared in accordance with IAS 34
"Interim Financial Reporting" and should be read in conjunction with the
consolidated financial statements for the year ended 31 May 2008. They were
approved by the Board of Directors on 6 February 2008.
The accounting policies used in the preparation of the interim financial
statements are the same as those applied in the preparation of the financial
statements for the year ended 31 May 2008 which were prepared in accordance with
International Financial Reporting Standards as adopted by the European Union.
The interim financial statements have been prepared under the historical cost
convention, except for the revaluation of financial instruments.
The interim financial statements have been prepared on the going concern basis
on the assumption that additional funding will be available in the near future
to enable the group to continue operating, meet its liabilities as they fall due
and to continue its development programme.
In concluding that it is appropriate to adopt the going concern basis in
preparing the interim financial statements, the directors have prepared cash
flow projections to February 2010. The projections include the assumption that
sufficient further funding will be secured to enable settlement of the 12.9%
Convertible Loan Stock, should the Loan Stock Holders invoke the put option
available to them on 24 October 2009, and to provide additional cash resources
to enable the company to continue to operate and meet its pre-development
obligations in respect of the Taiwan development. In the light of the recent
positive announcements, the Company has engaged Merrill Lynch & Co. as Financial
Advisers to the company, to evaluate a number of strategic and financial options
available to the company, one of which options is the sourcing of additional
working capital. The directors anticipate that any additional funding will be
obtained from certain existing shareholders, in addition to potential new
investors.
These conditions indicate that there is a material uncertainty over the future
funding of the group which would cast significant doubt on the group's ability
to continue as a going concern. However, while recognising this uncertainty, the
directors believe that adequate funding will be obtained to enable the group to
continue operating and meet its liabilities as they fall due for the foreseeable
future and that it is therefore appropriate to prepare the interim financial
statements on a going concern basis. The interim financial statements do not
reflect any adjustments which would have to be made should additional funding
not be available.
These interim financial statements do not constitute statutory financial
statements within the meaning of the Isle of Man Companies Acts 1931 - 2004.
Statutory accounts for the year ended 31 May 2008, on which the auditors gave an
unqualified report, have been filed with the Registrar of Companies..
The results for the six months ended 30 November 2008 have not been audited nor
reviewed by the group's auditors.
2, Loss per share
The calculations of loss per ordinary share are based on the
following losses and weighted
average number of shares in issue during the period:
+---------------------------+----+------------+----+------------+----+-------------+
| | Unaudited | Unaudited | Audited |
+---------------------------+-----------------+-----------------+------------------+
| | Six months to | Six months | Year to 31 |
| | 30 November | to 30 | May 2008 |
| | 2008 | November | |
| | | 2007 | |
+---------------------------+ + + +
| | | | |
+---------------------------+-----------------+-----------------+------------------+
| | | | | | | |
+---------------------------+----+------------+----+------------+----+-------------+
| Loss for the period (GBP) | | (780,928) | | (977,204) | | (1,581,356) |
+---------------------------+----+------------+----+------------+----+-------------+
| | | | | | | |
+---------------------------+----+------------+----+------------+----+-------------+
| Weighted average number | | 16,077,962 | | 16,077,962 | | 16,077,962 |
| of ordinary shares | | | | | | |
+---------------------------+----+------------+----+------------+----+-------------+
| | | | | | | |
+---------------------------+----+------------+----+------------+----+-------------+
| Loss per share | | (4.86p) | | (6.08p) | | (9.84p) |
+---------------------------+----+------------+----+------------+----+-------------+
| | | | | | | |
+---------------------------+----+------------+----+------------+----+-------------+
The exercise of outstanding share options in the periods would have the effect
of reducing the loss per ordinary share, and are therefore not dilutive under
the terms of IAS 33.
3. Property, plant and equipment
During the period, the group spent GBP32,834 on acquiring new fixed assets
principally with regard to expenditure incurred on property, plant and equipment
in the course of construction at the Group's site in the Penghu Islands, Taiwan.
During the period, the group made a foreign exchange gain on the translation of
fixed assets held by its Taiwan subsidiary at 30 November 2008 of GBP743,616.
4. Segmental analysis and seasonality
As defined under IAS 14, the only material business segment the group has is
that of real estate development and management, which is considered to be the
group's primary segment. The geographic segments that the group operates in are
the UK and Taiwan.
The group's activities are neither seasonal nor cyclical.
Finance costs and finance revenue are managed on a group basis and are not
allocated to operating segments.
+---------------------------+----+-------------+----+-----------+----+-------------+
| | Unaudited | Unaudited | Audited |
+---------------------------+------------------+----------------+------------------+
| | Six months to | Six months | Year to 31 |
| | 30 November | to 30 | May 2008 |
| | 2008 | November | |
| | | 2007 | |
+---------------------------+ + + +
| | | | |
+---------------------------+------------------+----------------+------------------+
| | | GBP | | GBP | | GBP |
+---------------------------+----+-------------+----+-----------+----+-------------+
| Revenue | | | | | | |
+---------------------------+----+-------------+----+-----------+----+-------------+
| UK | | Nil | | Nil | | Nil |
+---------------------------+----+-------------+----+-----------+----+-------------+
| Taiwan | | Nil | | Nil | | Nil |
+---------------------------+----+-------------+----+-----------+----+-------------+
| | | Nil | | Nil | | Nil |
+---------------------------+----+-------------+----+-----------+----+-------------+
| Operating results | | | | | | |
+---------------------------+----+-------------+----+-----------+----+-------------+
| UK | | (1,209,816) | | (842,326) | | (1,675,881) |
+---------------------------+----+-------------+----+-----------+----+-------------+
| Taiwan | | 750,907 | | (107,727) | | 215,514 |
+---------------------------+----+-------------+----+-----------+----+-------------+
| | | (458,909) | | (950,053) | | (1,460,367) |
+---------------------------+----+-------------+----+-----------+----+-------------+
| Non current assets | | | | | | |
+---------------------------+----+-------------+----+-----------+----+-------------+
| UK | | 50,902 | | 1,581 | | 49,919 |
+---------------------------+----+-------------+----+-----------+----+-------------+
| Taiwan | | 6,398,678 | | 5,139,113 | | 5,625,315 |
+---------------------------+----+-------------+----+-----------+----+-------------+
| | | 6,449,580 | | 5,140,694 | | 5,675,234 |
+---------------------------+----+-------------+----+-----------+----+-------------+
5. Estimates
Estimates used in calculating the charge for share-based payments in the period
under IFRS 2 have been reviewed and
no adjustments have been made.
6. Contingencies and commitments
There were no changes in contingent liabilities or contingent assets
since the last annual balance sheet date.
7. Events after the balance sheet date
On 12 January 2009 the Legislative Yuan in Taiwan passed legislation that
legalised gaming in Taiwan. The Bill legalised gaming through an amendment to
the Offshore Islands Act, and the Council for Economic Planning and Development
recommended casino resort development for Penghu. On 27 January 2009, the
Taiwanese President formally signed off the Bill into law, completing the final
statutory process required for gaming enablement in the Outer Islands, Taiwan.
8. Related party transactions
The group has transacted business with related parties, as shown below, on
normal commercial terms. All such trading balances are unsecured and interest
free, with the exception of the loan from Bayside Development Corporation
Limited. Period-end balances with such related parties were:
+---------------------------------------+------------------+------------------+
| | November 2008 | November 2007 |
+---------------------------------------+------------------+------------------+
| | GBP | GBP |
+---------------------------------------+------------------+------------------+
| Due to | | |
+---------------------------------------+------------------+------------------+
| | | |
+---------------------------------------+------------------+------------------+
| Group | | |
+---------------------------------------+------------------+------------------+
| Ian Irvin & Co (note a) | 300 | 13,433 |
+---------------------------------------+------------------+------------------+
| The Navegante Group (note b) | - | 38,700 |
+---------------------------------------+------------------+------------------+
| Dalveen Limited (note c) | - | 1,050 |
+---------------------------------------+------------------+------------------+
| Devonshire Corporate Services Limited | 5,079 | 9,383 |
| (note d) | | |
+---------------------------------------+------------------+------------------+
| Bayside Development Corporation | - | 40,842 |
| Limited (note e) | | |
+---------------------------------------+------------------+------------------+
| C. J. Burger (note f) | 17,500 | - |
+---------------------------------------+------------------+------------------+
| A. Hines (note g) | 8,000 | - |
+---------------------------------------+------------------+------------------+
| | ________________ | ________________ |
+---------------------------------------+------------------+------------------+
| | | |
+---------------------------------------+------------------+------------------+
| | 30,879 | 103,408 |
+---------------------------------------+------------------+------------------+
| | ________________ | ________________ |
+---------------------------------------+------------------+------------------+
(a) The group incurred costs of GBP300 (2007 - GBP14,956) for various corporate
services and expenses provided by Ian Irvin & Co, a sole trading business. I.
Irvin is a substantial shareholder in the company and a former director of the
group and the owner of Ian Irvin & Co.
(b) The Navegante Group Inc. is related by virtue of the common directorship
of L. J. Woolf. During the period, The Navegante Group Inc. levied consulting
and other charges upon the group of GBP32,395 (2007 - GBP38,700). On 3 July
2008, the company and The Navegante Group agreed to amend the "Casino Services
Agreement" to reduce the monthly service fee from $25,000 to $10,000 with effect
from 1 May 2008.
(c) Dalveen Limited, a company incorporated in the United Kingdom, is owned by
D. C. Mathewson, a director of the group. During the period the group incurred
charges of GBPnil (2007 - GBP2,100) from Dalveen Limited.
(d) During the period, the group incurred GBP26,185 (2007 - GBP36,187) in
professional fees payable to Devonshire Corporate Services Limited, a company
incorporated in the Isle of Man. The group and Devonshire Corporate Services
Limited are related by virtue of D. C. Litton's position as company secretary, a
former director of the group and his directorship of Devonshire Corporate
Services.
(e) During the period, interest payable under the provisions of a loan
facility of GBP1,000,000 provided by Bayside Development Corporation Limited, a
related party by virtue of D. C. Litton's position as company secretary, a
former director of the group, and his directorship of Bayside Development
Corporation Limited, amounted to GBPnil (2007 - GBP48,669).
8. Related party transactions (continued)
(f)C J Burger is a former director of the group and is related by virtue of the
stock options granted to the key employee. At 30 November 2008, GBP17,500 (2007
- GBP6,000) was due to C. J. Burger in respect of expenses incurred on behalf of
the group.
(g)A. Hines is a former director of the group and is related by virtue of the
stock options granted to the key employee. At 30 November 2008, GBP8,000 (2007 -
GBP8,000) was due to A. Hines.
9. Share based payments
The company issues equity-settled share-based payments to certain employees and
advisers. The share based payments are measured at fair value at the date of
grant. The fair value determined at the grant date of the share-based payments
is expensed on a straight line basis over the vesting period, based on the
company's estimate of shares that will eventually vest and adjusted for the
effect of non market-based conditions.
Fair value is measured by use of the Black-Scholes pricing model. The expected
life used in the model has been adjusted, based on management's best estimate,
for the affects of non-transferability, exercise restriction and behavioural
conditions.
The expense recognised for share-based transactions during the period is:-
+-----------------------------------------------+------------+-------------+
| | November | November |
| | 2008 | 2007 |
+-----------------------------------------------+------------+-------------+
| | GBP | GBP |
+-----------------------------------------------+------------+-------------+
| | | |
+-----------------------------------------------+------------+-------------+
| Expense arising from share-based payment | 703,672 | 305,101 |
| transactions | | |
+-----------------------------------------------+------------+-------------+
| | | |
+-----------------------------------------------+------------+-------------+
During the period ended 30 November 2008, the company granted 900,000 share
options to M. R. Treanor, a director of the company, and 140,000 share options
to C. J. Burger, a key employee of the company. At 30 November 2008 the company
had twenty five share-based payment arrangements in place.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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