Half-yearly Report
June 27 2008 - 1:00AM
UK Regulatory
FUNDAMENTAL-E INVESTMENTS PLC (THE "COMPANY")
HALF-YEARLY REPORT FOR THE SIX MONTHS ENDED 31 MARCH 2008
CHAIRMAN'S STATEMENT
The Group's current business activity is to maximise the value of its wholly
owned freehold property site in Kilsyth.
In light of the downturn of the property market the board has decided not to
develop the site at Kilsyth. As such the site has been placed on the market and
we are currently negotiating with potential purchasers.
The board continue to seek opportunities to create shareholder value and
continue to be positive that such value creating opportunities will be found.
FINANCIAL RESULTS
The operating loss before taxation for the six months to 31 March 2008 was �
147,000 (2007 - �20,000). Turnover was �nil (2007 - �90,000). Loss per share is
0.014p (2007 - 0.002p); no interim dividend can be paid.
As at 31 March 2008, the Group had cash resources of �15,000 (as at 31 March
2007 - �156,000). The Group also had bank loans totalling �1,293,000 (2007 - �
681,000). The cash balance at 31 May 2008 was �13,000. The Group continues to
meet its working capital needs from debtor collections and bank loan support.
Stephen Thomson
Chairman
26 June 2008
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 MARCH 2008
Unaudited 6 Unaudited 6 Audited
months ended months ended Year ended
31 March 31 March 30 September
2008 2007 2007
�'000 �'000 �'000
Notes
REVENUE - 90 181
Cost of Sales - - -
GROSS PROFIT - 90 181
Administrative expenses (104) (87) (153)
OPERATING (LOSS)/PROFIT (104) 3 28
Finance costs (43) (23) (51)
LOSS BEFORE TAX (147) (20) (23)
Tax - - -
LOSS FOR THE PERIOD (147) (20) (23)
ATTRIBUTABLE TO EQUITY
HOLDERS OF THE PARENT
LOSS PER SHARE
Basic loss per share 4 (0.014)p (0.002)p (0.002)p
There are no items of recognised income and expense other than those reflected
in the consolidated income statement.
UNAUDITED CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2008
Unaudited Unaudited Audited
As at As at As at
31 March 31 March 30 September
2008 2007 2007
�'000 �'000 �'000
Notes
NON-CURRENT ASSETS
Property - 888 1,312
- 888 1,312
CURRENT ASSETS
Trade and other 86 103 77
receivables
Cash and cash 15 156 114
equivalents
101 259 191
HELD FOR SALE
NON-CURRENT ASSETS
Property 1,472 - -
TOTAL ASSETS 1,573 1,147 1,503
CURRENT LIABILITIES
Trade and other 201 225 291
payables
Bank loan 1,293 681 980
Obligations under 11 23 17
finance leases
TOTAL LIABILITIES 1,505 929 1,288
NET ASSETS 68 218 215
EQUITY
Called up share 5 3,714 3,714 3,714
capital
Share premium account 9,997 9,997 9,997
Merger reserve 750 750 750
Other reserves 46 46 46
Retained earnings 5 (14,439) (14,289) (14,292)
TOTAL EQUITY 68 218 215
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 MARCH 2008
6 months 6 months
ended ended Year ended
31 March 31 March 30 September
2008 2007 2007
�'000 �'000 �'000
Notes (unaudited) (unaudited) (audited)
Net cash flow from 6 (169) (8) (27)
operating
activities
Investing activities
Interest received 1 1 2
Capital expenditure on (231) (224) (542)
property
Net cash used in (230) (223) (540)
investing activities
Financing activities
Net proceeds from 306 215 515
loans advanced
Net repayments on (6) (8) (14)
finance leases
Net cash from 300 207 501
financing activities
Net decrease in cash (99) (24) (66)
and cash equivalents
Cash and cash 114 180 180
equivalents at
beginning of period
Cash and cash 15 156 114
equivalents at end of
period
NOTES TO THE UNAUDITED HALF-YEARLY REPORT
1. GENERAL INFORMATION
FUNDAMENTAL-E INVESTMENTS PLC (the "Company") is a company domiciled in England
whose registered office address is Paston House, 11-13 Princes Street, Norwich
NR3 1AZ. The condensed consolidated interim financial statements of the Company
for the six months ended 31 March 2008 comprise the Company and its subsidiary
(together referred to as "the Group").
The condensed consolidated interim financial statements do not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985.
The financial information for the year ended 30 September 2007 has been
extracted from the statutory accounts (which were prepared under UK GAAP) for
that period and adjusted as shown in note 7 below to restate in accordance with
International Financial Reporting Standards ("IFRS"). This note includes
reconciliations of equity and the loss for comparative periods reported under
UK GAAP to those reported for those periods under IFRS. The auditors' report on
the statutory accounts was unqualified and did not contain a statement under
Section 237 of the Companies Act 1985. A copy of those financial statements has
been filed with the Registrar of Companies.
The Group's date of transition to IFRS was 1 October 2006 and condensed
consolidated interim financial statements have been prepared in accordance with
the first time adoption provisions set out in IFRS 1 First-time Adoption of
International Financial Reporting Standards. The condensed consolidated interim
financial statements do not include all of the information required for full
annual financial statements.
The condensed consolidated interim financial statements were authorised for
issue on 26 June 2008.
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting
The condensed consolidated financial statements are unaudited and have been
prepared in accordance with IFRS adopted by the EU.
The condensed consolidated financial statements have been prepared on the
historical cost basis. The principal accounting policies adopted are set out
below.
Basis of consolidation
The condensed consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company (its
subsidiaries) made up to 31 March 2008. Control is achieved where the Company
has the power to govern the financial and operating policies of an investee
entity so as to obtain benefits from its activities.
The results of subsidiaries acquired during the period are included in the
consolidated income statement from the effective date of acquisition.
Where necessary, adjustments are made to the financial information of
subsidiaries to bring the accounting policies used into line with those used by
the Group.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
Property
Property is included at its historical cost. The property entirely relates to
freehold land and is therefore not depreciated. In the opinion of the
directors, the property meets the criteria of IFRS 5 for classification as a
non-current asset held for sale.
Impairment of property
At each balance sheet date, the Group reviews the carrying amounts of the
property in the balance sheet to determine whether there is any indication that
it has suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent
of the impairment loss (if any). Where the asset does not generate cash flows
that are independent from other assets, the Group estimates the recoverable
amount of the cash generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash generating unit) is estimated to
be less than its carrying amount, the carrying amount of the asset (cash
generating unit) is reduced to its recoverable amount. An impairment loss is
recognised as an expense immediately, unless the relevant asset is carried at a
revalued amount, in which case the impairment loss is treated as a revaluation
decrease.
Where an impairment loss subsequently reverses, the carrying amount of the
asset (cash generating unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been
recognised for the asset (cash generating unit) in prior years. A reversal of
an impairment loss is recognised as income immediately, unless the relevant
asset is carried at a revalued amount, in which case the reversal of the
impairment loss is treated as a revaluation increase.
Income recognition
Turnover represents rentals receivable on the property and is recognised over
the period of the lease. Unbilled turnover is included within receivables.
Interest income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life
of the financial assets to that assets net carrying amount.
Deferred taxation
Deferred tax is provided in full, using the liability method, on temporary
differences arising between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements. However, the
deferred tax is not accounted for if it arises from initial recognition of an
asset or liability in a transaction other than a business combination that at
the time of the transaction affects neither accounting nor taxable profit or
loss. Deferred tax is determined using tax rates (and laws) that have been
enacted or substantially enacted by the balance sheet date and are expected to
apply when the related deferred tax asset is realised or the deferred tax
liability is settled.
Deferred tax assets are recognised to the extent that it is probable that
future taxable profit will be available against which the temporary differences
can be utilised.
Deferred tax is provided on temporary differences arising on investments in
subsidiaries and associates, except where the timing of the reversal of the
temporary difference is controlled by the group and it is probable that the
temporary difference will not reverse in the foreseeable future.
Leases
Leases are classified as finance leases whenever the terms of the lease
transfer substantially all the risks and rewards of ownership to the lessee.
All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets of the Group at their
fair value or, if lower, at the present value of the minimum lease payments,
each determined at the inception of the lease. The corresponding liability to
the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance charges and reduction of the
lease obligation so as to achieve a constant rate of interest on the remaining
balance of the liability. Finance charges are charged directly against income,
unless they are directly attributable to qualifying assets, in which case they
are capitalised in accordance with the Group's general policy on borrowing
costs (see below).
Rentals payable under operating leases are charged to income on a straight line
basis over the term of the relevant lease.
Benefits received and receivable as an incentive to enter into an operating
lease are also spread on a straight line basis over the lease term.
Financial instruments
Financial assets and financial liabilities are recognised in the Group's
balance sheet when the Group becomes a party to the contractual provisions of
the instrument.
Trade and other receivables
Trade and other receivables are measured at initial recognition at fair value.
Appropriate allowances for estimated irrecoverable amounts are recognised in
profit or loss when there is objective evidence that the asset is impaired. The
allowance recognised is measured as the difference between the asset's carrying
amount and the present value of estimated future cash flows discounted at the
effective interest rate computed at initial recognition.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and other
short-term, highly liquid investments that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument is
any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities.
Trade payables
Trade payables are initially measured at fair value, and are subsequently
measured at amortised cost, using the effective interest rate method.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received,
net of direct issue costs.
3. SEGMENTAL ANALYSIS
The Group is currently solely engaged in the development and sale of a
property. In the directors' opinion, there is therefore only one business
segment.
4. LOSS PER SHARE
The calculation of the basic loss per share is based on the following data:
6 months 6 months
ended ended Year ended
31 March 2008 31 March 2007 30 September 2007
(unaudited) (unaudited) (audited)
�'000 �'000 �'000
Loss
Loss on ordinary activities (147) (20) (23)
after tax
Number of shares million million million
Weighted average number of 1,090 1,090 1,090
ordinary shares for the period
5. CHANGES IN EQUITY AND DEBT
Changes in equity
The only movement in Equity during the period related to movements in retained
earnings
Changes in debt
The only movements in Debt are the net proceeds on the bank loan and the net
repayments on finance leases, both of which are shown in the consolidated cash
flow statement.
6. NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
Net cash flow from operating 6 months 6 months
activities ended ended Year ended
31 March 2008 31 March 2007 30 September 2007
(unaudited) (unaudited) (audited)
� � �
Operating (loss)/profit (104) 3 28
(Increase) / decrease in (9) 46 72
receivables
Increase/ (decrease) in (19) (33) (74)
payables
Cash (absorbed by)/generated by (132) 16 26
operations
Interest paid (37) (24) (53)
Tax paid - - -
Net cash flow from operating (169) (8) (27)
activities
7. EXPLANATION OF TRANSITION TO IFRS
As stated in note 1, these are the Group's first condensed consolidated interim
financial statements for part of the period covered by the first annual
consolidated financial statements prepared in accordance with IFRS.
The accounting policies in note 2 have been applied in preparing the
consolidated condensed interim financial statements for the six months ended 31
March 2008, the financial information for the period ended 31 March 2007 and
the year ended 30 September 2007.
In preparing its opening IFRS balance sheet, comparative information for the
six months ended 31 March 2007, and financial statements for the year ended 30
September 2007, the Group has considered the impact of IFRS and whether any
adjustments are required on transition, and concluded that none are required.
8. AIM COMPLIANCE COMMITTEE
In accordance with AIM Rule 31 the Company is required to have in place
sufficient procedures, resources and controls to enable its compliance with the
AIM Rules; seek advice from its nominated adviser ("Nomad") regarding its
compliance with the AIM Rules whenever appropriate and take that advice into
account; provide the Company's Nomad with any information it requests in order
for the Nomad to carry out its responsibilities under the AIM Rules for
Companies and AIM Rules for Nominated Advisers; ensure that each of the
Company's directors accepts full responsibility, collectively and individually,
for compliance with the AIM Rules; and ensure that each director discloses
without delay all information which the Company needs in order to comply with
AIM Rule 17 (Disclosure of Miscellaneous Information) insofar as that
information is known to the director or could with reasonable diligence be
ascertained by the director.
In order to ensure that these obligations are being discharged, the Board has
established a committee of the Board (the "AIM Committee"), chaired by Stephen
Thomson, the non-executive Chairman of the Company.
Having reviewed relevant Board papers, and discussed with the Company's
Executive Board and the Nomad to ensure that such is the case, the AIM
Committee is satisfied that the Company's obligations under AIM Rule 31 have
been satisfied during the period under review.
9. DISTRIBUTION OF THE HALF-YEARLY REPORT
Copies of the Half-yearly Report for the period ended 31 March 2008 can be
obtained from the Registered Office during normal business hours.
Contact details:
Michael Hill, Finance Director Tel: 07736 714577
Fundamental-E Investments plc
Liam Murray, Nominated Adviser Tel: 020 7492 4777
Dowgate Capital Advisers Limited
Neil Badger, Broker Tel: 01293 517 744
Dowgate Capital Stockbrokers Limited
END
Fundamental-e Investments (LSE:FEI)
Historical Stock Chart
From Apr 2024 to May 2024
Fundamental-e Investments (LSE:FEI)
Historical Stock Chart
From May 2023 to May 2024
