TIDMIGD
RNS Number : 9454Z
IncaGold Plc
30 September 2009
INCAGOLD PLC AND SUBSIDIARIES
UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
Chairman and Chief Executive's Report
I present the interim results for the six months to 30 June 2009.
Financial overview
Turnover of GBP43,018 (June 2008: GBP115,175) has fallen due to constrained
financing in the business following the decision to dispose of the subsidiary,
IncaGold GmbH. Cost cutting measures continue to be undertaken to reflect this
fall in sales volumes. Nevertheless, the Group has made a loss of GBP88,929
(June 2008: GBP45,583) before tax.
At half year, the Group had net liabilities of GBP77,563 (June 2008: net
liability GBP194). However, the Group retains net cash of GBP14,456 (June 2008:
GBP14,994). On 29 June 2009 the Board resolved to approve the conversion of
loans from Fox Capital Limited into shares (see note 6). The loan, which was
GBP97,386 inclusive of interest and fees as at the 29 June 2009, was fully
repaid by the allotment of 71,830,615 New Ordinary Shares issued to Fox Capital
Limited. The existing loan facility from Fox Capital Limited of GBP100,000
remains in place and available to the Company.
Sale of subsidiary
On 29 June 2009 the board of Directors passed a resolution to transfer the games
business of the Company to the subsidiary, IncaGold GmbH under the terms of the
Business Transfer Agreement dated 1 February 2008, and subsequently to sell the
subsidiary to the director of IncaGold GmbH, subject to shareholder approval,
for total consideration of GBP1 with guarantee from the purchaser for all sums
in relation to the liabilities and indemnifies the Company against any sums
which the vendor may be compelled to pay in connection with the liabilities of
the subsidiary. Accordingly they have reclassified the Company's games business
as a discontinued operation and prepared the accounts on that basis.
From when the sale is completed, the Company will be treated, in accordance with
the AIM Rules for Companies, as a cash shell until such time as another business
focus or transaction is approved by shareholders or, if such approval is not
forthcoming, until a period of 12 months has elapsed, when it will be delisted.
Outlook
On 31 October 2008, the Board sought and received shareholder approval to alter
the sector focus of the activities of the Company to enable it to take advantage
of opportunities arising within the cosmetic surgery insurance industry.
Following this approval from shareholders, the Directors commenced talks with
various U.K. based insurance underwriters operating in the healthcare arena. To
assist in implementation of this strategy, Michael Evans was appointed to the
Board on 14 April 2009. Michael Evans has extensive experience in the insurance
industry spanning over 35 years.
The Directors will tomorrow post notices to Shareholders to convene the Annual
General Meeting for 10am on Tuesday the 1st December 2009. Furthermore and in
furtherance of the approvals previously sought and given to alter the sector
focus, the Directors have entered into certain option agreements, which when
exercised, will require further notices being sent to Shareholders to convene an
Extraordinary General Meeting, which will include inter alia a resolution
seeking approval to dispose of the subsidiary.
Roy Tilleard
Chairman
30 September 2009
Enquiries:
IncaGold Plc
Justin Martin 01624 820 040
Zeus Capital Limited
Ross Andrews 0161 831 1512
Tom Rowley
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2009
+--------------------------------------+--------+------------+-------------+------------+
| | | | | |
+--------------------------------------+--------+------------+-------------+------------+
| | Note | 6 months | 6 months | Year ended |
| | | ended | ended | 31 |
| | | 30 June | 30 June | December |
| | | 2009 | 2008 | 2008 |
+--------------------------------------+--------+------------+-------------+------------+
| Revenue | | | | |
+--------------------------------------+--------+------------+-------------+------------+
| Continuing operations | | - | | - |
+--------------------------------------+--------+------------+-------------+------------+
| Discontinued operations | | 43,018 | 115,175 | 214,310 |
+--------------------------------------+--------+------------+-------------+------------+
| | | ------- | ------- | ------- |
+--------------------------------------+--------+------------+-------------+------------+
| | | 43,018 | 115,175 | 214,310 |
+--------------------------------------+--------+------------+-------------+------------+
| Cost of sales | | | | |
+--------------------------------------+--------+------------+-------------+------------+
| Continuing operations | | - | - | - |
+--------------------------------------+--------+------------+-------------+------------+
| Discontinued | | (19,965) | (66,733) | (91,286) |
| operations | | | | |
+--------------------------------------+--------+------------+-------------+------------+
| | | ------- | ------- | ------- |
+--------------------------------------+--------+------------+-------------+------------+
| | | (19,965) | (66,733) | (91,286) |
+--------------------------------------+--------+------------+-------------+------------+
| GROSS PROFIT | | ------- | ------- | ------- |
| | | 23,053 | 48,442 | 123,024 |
+--------------------------------------+--------+------------+-------------+------------+
| Administrative expenses | | | | |
+--------------------------------------+--------+------------+-------------+------------+
| Continuing operations | | (65,422) | (15,982) | (64,888) |
| - recurring | | | | |
+--------------------------------------+--------+------------+-------------+------------+
| | | | | |
+--------------------------------------+--------+------------+-------------+------------+
| Discontinued | | (46,560) | (78,043) | (182,399) |
| operations - recurring | | | | |
+--------------------------------------+--------+------------+-------------+------------+
| | | ------- | ------- | ------- |
+--------------------------------------+--------+------------+-------------+------------+
| Total administrative expenses | | (111,982) | (94,025) | (247,287) |
+--------------------------------------+--------+------------+-------------+------------+
| | | ------- | ------- | ------- |
+--------------------------------------+--------+------------+-------------+------------+
| LOSS FROM OPERATIONS | | (88,929) | (45,583) | (124,263) |
+--------------------------------------+--------+------------+-------------+------------+
| | | | | |
+--------------------------------------+--------+------------+-------------+------------+
| Financial expenses | | | | |
+--------------------------------------+--------+------------+-------------+------------+
| Continuing operations | | (1,689) | (84) | (5,530) |
+--------------------------------------+--------+------------+-------------+------------+
| Discontinued operations | | - | - | (10) |
+--------------------------------------+--------+------------+-------------+------------+
| | | ------- | ------- | ------- |
+--------------------------------------+--------+------------+-------------+------------+
| | | - | (84) | (5,540) |
+--------------------------------------+--------+------------+-------------+------------+
| | | ------- | ------- | ------- |
+--------------------------------------+--------+------------+-------------+------------+
| LOSS BEFORE TAXATION | | (90,618) | (45,667) | (129,803) |
+--------------------------------------+--------+------------+-------------+------------+
| Income tax on loss on ordinary | | - | - | - |
| activities | | | | |
+--------------------------------------+--------+------------+-------------+------------+
| | | ------- | ------- | ------- |
+--------------------------------------+--------+------------+-------------+------------+
| LOSS AFTER TAXATION - CONTINUING | | (90,618) | (45,667) | (70,418) |
| OPERATIONS | | | | |
+--------------------------------------+--------+------------+-------------+------------+
| LOSS AFTER TAXATION - DISCONTINUED | | - | - | (59,385) |
| OPERATIONS | | | | |
+--------------------------------------+--------+------------+-------------+------------+
| | | ------- | ------- | ------- |
+--------------------------------------+--------+------------+-------------+------------+
| LOSS FOR THE PERIOD | | (90,618) | (45,667) | (129,803) |
+--------------------------------------+--------+------------+-------------+------------+
| | | ------ | ------ | ------ |
+--------------------------------------+--------+------------+-------------+------------+
+--------------------------------------+--------+-------------+-------------+-------------+
| BASIC AND DILUTED EARNINGS PER SHARE | | | | |
| | | | | |
+--------------------------------------+--------+-------------+-------------+-------------+
| | | | | |
+--------------------------------------+--------+-------------+-------------+-------------+
| Loss per share - Basic | | (GBP0.0002) | (GBP0.0001) | (GBP0.0003) |
+--------------------------------------+--------+-------------+-------------+-------------+
| | | ------ | ------ | ------ |
+--------------------------------------+--------+-------------+-------------+-------------+
| | | | | |
+--------------------------------------+--------+-------------+-------------+-------------+
| Loss per share - Diluted | | (GBP0.0002) | (GBP0.0001) | (GBP0.0003) |
+--------------------------------------+--------+-------------+-------------+-------------+
| | | ------ | ------ | ------ |
+--------------------------------------+--------+-------------+-------------+-------------+
UNAUDITED CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2009
+------------------------------------+--------+----+--------------+-------------+--------------+
| | Notes | | 6 | 6 months | Year ended |
| | | | months ended | ended | 31 |
| | | | 30 June | 30 June | December |
| | | | 2009 | 2008 | 2008 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | GBP | GBP | GBP |
+------------------------------------+--------+----+--------------+-------------+--------------+
| NON-CURRENT ASSETS | | | | | |
| | | | | | |
+------------------------------------+--------+----+--------------+-------------+--------------+
| Investment in subsidiary | | | - | - | - |
+------------------------------------+--------+----+--------------+-------------+--------------+
| Intangible assets | | | 1 | 1 | 1 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| Property, plant and equipment | | | 896 | 2,172 | 1,485 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | 897 | 2,173 | 1,486 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| CURRENT ASSETS | | | | | |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | | | |
+------------------------------------+--------+----+--------------+-------------+--------------+
| Inventories | | | 6,552 | 2,995 | 4,377 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| Trade and other receivables | | | 189,555 | 278,125 | 202,169 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| Cash and cash equivalents | | | 14,456 | 14,994 | 5,308 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | 210,563 | 296,114 | 211,854 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+--------------+
| TOTAL ASSETS | | | 211,460 | 298,287 | 213,340 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | ------ | ------ | ------ |
+------------------------------------+--------+----+--------------+-------------+--------------+
| EQUITY | | | | | |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | | | |
+------------------------------------+--------+----+--------------+-------------+--------------+
| Share capital | | | 4,493 | 3,775 | 3,775 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| Share premium | | | 1,682,003 | 1,585,336 | 1,585,336 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| Retained earnings | | | (1,764,059) | (1,589,305) | (1,673,441) |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+--------------+
| TOTAL EQUITY | | | (77,563) | (194) | (84,330) |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | | | |
+------------------------------------+--------+----+--------------+-------------+--------------+
| CURRENT LIABILITIES | | | 289,023 | 298,481 | 271,714 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | | | |
+------------------------------------+--------+----+--------------+-------------+--------------+
| NON-CURRENT LIABILITIES | | | | | |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | | | |
+------------------------------------+--------+----+--------------+-------------+--------------+
| Long term borrowings | | | - | - | 25,956 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | | | |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+--------------+
| TOTAL LIABILITIES | | | 289,023 | 298,481 | 297,670 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | | | |
+------------------------------------+--------+----+--------------+-------------+--------------+
| TOTAL EQUITY AND LIABILITIES | | | 211,460 | 298,287 | 213,340 |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | ------ | ------ | ------ |
+------------------------------------+--------+----+--------------+-------------+--------------+
| | | | | | |
+------------------------------------+--------+----+--------------+-------------+--------------+
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2009
+--------------------------+------+---------+-----------+----------+-------------+------------+
| GROUP | Note | Share | Share | Foreign | Retained | Total |
| | | Capital | Premium | Exchange | Earnings | Equity |
| | | | | Reserve | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| June 2009 | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| Total equity at 1 | | 3,775 | 1,585,336 | - | (1,673,441) | (84,330) |
| January 2008 | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| Loss for the year | | - | - | - | (90,618) | (90,618) |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| Issue of ordinary | | 718 | 96,667 | - | - | 97,385 |
| shares | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| | | ------- | ------- | ------- | ------- | ------- |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| Total equity at 31 | | 4,493 | 1,682,003 | | (1,764,059) | (77,563) |
| December 2008 | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| | | ------ | ------ | ------ | ------- | ------ |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| June 2008 | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| Total equity at 1 | | 3,775 | 1,585,336 | - | (1,543,638) | 45,473 |
| January 2008 | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| Loss for the year | | - | - | - | (45,667) | (45,667) |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| | | ------- | ------- | ------- | ------- | ------- |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| Total equity at 31 | | 3,775 | 1,585,336 | | (1,589,305) | (194) |
| December 2008 | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| | | ------ | ------ | ------ | ------- | ------ |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| December 2008 | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| | | GBP | GBP | GBP | GBP | GBP |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| Total equity at 1 | | 3,775 | 1,585,336 | - | (1,543,638) | 45,473 |
| January 2008 | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| Loss for the year | | - | - | - | (129,803) | (129,803) |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| Issue of ordinary | | - | - | - | - | - |
| shares | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| | | ------- | ------- | ------- | ------- | ------- |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| Total equity at 31 | | 3,775 | 1,585,336 | - | (1,673,441) | (84,330) |
| December 2008 | | | | | | |
+--------------------------+------+---------+-----------+----------+-------------+------------+
| | | ------ | ------ | ------ | ------- | ------ |
+--------------------------+------+---------+-----------+----------+-------------+------------+
UNAUDITED CONSOLIDATED CASHFLOW STATEMENT
FOR THE 6 MONTHS ENDED 30 JUNE 2009
+--------------------------------------+------+--+------------+-------------+------------+
| | | | 6 months | 6 months | Year ended |
| | | | ended | ended | 31 |
| | | | 30 June | 30 June | December |
| | | | 2009 | 2008 | 2008 |
+--------------------------------------+------+--+------------+-------------+------------+
| Operating Activities |Note | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | GBP | GBP | GBP |
+--------------------------------------+------+--+------------+-------------+------------+
| Loss from Operations | | | (88,929) | (45,583) | (124,263) |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| Depreciation of property, plant and | | | 590 | 633 | 1,320 |
| equipment | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| Loss on disposal of tangible assets | | | - | | - |
+--------------------------------------+------+--+------------+-------------+------------+
| Amortisation of intangible assets | | | - | 5,414 | 5,414 |
+--------------------------------------+------+--+------------+-------------+------------+
| Cash received from a guarantee | | | - | - | - |
| agreement | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| Gain on transfer of assets to | | | - | - | - |
| subsidiary | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | ------- | ------- | ------- |
+--------------------------------------+------+--+------------+-------------+------------+
| Cash flows from operating activities | | | (88,339) | (39,536) | (117,529) |
| before changes in working capital | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| (Increase) / decrease in inventories | | | (2,176) | 1,400 | 18 |
+--------------------------------------+------+--+------------+-------------+------------+
| (Increase) / decrease in receivables | | | 12,613 | (28,212) | 47,744 |
+--------------------------------------+------+--+------------+-------------+------------+
| Increase / (decrease) in payables | | | 17,309 | 22,707 | (4,058) |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | ------- | ------- | ------- |
+--------------------------------------+------+--+------------+-------------+------------+
| Cash (absorbed in) / generated from | | | (60,593) | (43,640) | (73,826) |
| operations | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| Interest paid | | | (1,689) | (84) | (84) |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | ------- | ------- | ------- |
+--------------------------------------+------+--+------------+-------------+------------+
| Net cash (absorbed in) /generated | | | (62,282) | (43,723) | (73,909) |
| from operating activities | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | ------- | ------- | ------- |
+--------------------------------------+------+--+------------+-------------+------------+
| Cash flows from investing activities | | | | | |
| | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| Net cash transferred on disposals to | | | - | - | - |
| subsidiary | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| Purchases of property, plant and | | | - | (1,445) | (1,445) |
| equipment | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | ------- | ------- | ------- |
+--------------------------------------+------+--+------------+-------------+------------+
| Net cash absorbed in investing | | | - | (1,445) | (1,445) |
| activities | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | ------- | ------- | ------- |
+--------------------------------------+------+--+------------+-------------+------------+
| Cash flows from financing activities | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| Proceeds of borrowings | | | 71,430 | - | 20,500 |
+--------------------------------------+------+--+------------+-------------+------------+
| Repayment of borrowings | | | - | - | - |
+--------------------------------------+------+--+------------+-------------+------------+
| Proceeds from issue of ordinary | | | - | 50,000 | 50,000 |
| shares | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | ------- | ------- | ------- |
+--------------------------------------+------+--+------------+-------------+------------+
| Net cash raised / (repaid) by | | | 71,430 | 4,832 | 70,500 |
| financing activities | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | ------- | ------- | ------- |
+--------------------------------------+------+--+------------+-------------+------------+
| Net (decrease)/increase in cash and | | | 9,148 | 4,832 | (4,854) |
| cash equivalents | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| Cash and cash equivalents at | | | 5,308 | 10,162 | 10,162 |
| beginning of period | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | ------- | ------- | ------- |
+--------------------------------------+------+--+------------+-------------+------------+
| Cash and cash equivalents at end of | | | 14,456 | 14,994 | 5,308 |
| the period | | | | | |
+--------------------------------------+------+--+------------+-------------+------------+
| | | | ------ | ------ | ------ |
+--------------------------------------+------+--+------------+-------------+------------+
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
1. ACCOUNTING POLICIES AND FUNDAMENTAL CONCEPT
+-----+--------------------------------------------------------------------------------+
| | The principal accounting policies adopted in the preparation of the financial |
| | statements are set out in the Annual Report of IncaGold Plc to 31 December |
| | 2008. The policies have been consistently applied to all the periods presented |
| | and are in accordance with International Financial Reporting Standards. |
| | These statements are not statutory accounts under the Companies Act 2006. |
| | Final audited accounts for the year ended 31st December 2008 have been |
| | published and filed as required. The audit report contained a Disclaimer of |
| | Opinion relating to the |
| | |
| | activities of the subsidiary company. |
| | |
| | The financial statements have been prepared in accordance with International |
| | Financial Reporting Standards ("IFRS") and IFRIC interpretations as adopted by |
| | the European Union and with those parts of the Companies Act, 1985 applicable |
| | to companies reporting under IFRS. The financial statements have been prepared |
| | under the historical cost convention. A summary of the more important Group |
| | accounting policies is set out below. |
| | The preparation of financial statements in conformity with IFRS requires the |
| | use of estimates and assumptions that affect the reported amounts of assets |
| | and liabilities at the date of the financial statements and the reported |
| | amounts of revenues and expenses during the reporting period. Although these |
| | estimates are based on management's best knowledge of the amount, event or |
| | actions, actual results ultimately may differ from those estimates. |
| | The financial statements are prepared on a going concern basis, the validity |
| | of which is dependent on the continuation of loan facilities provided by Fox |
| | Capital Limited (Note 8). |
| | The company's business is not of a cyclical nature. |
| | |
+-----+--------------------------------------------------------------------------------+
2. OPERATING LOSS
The operating loss is stated after charging:
+--+--+--------------------------------------------+-------------+------------+------------+
| | | | 6 months | 6 months | Year ended |
| | | | ended | ended | 31 |
| | | | 30 June | 30 June | December |
| | | | 2009 | 2008 | 2008 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | | GBP | GBP | GBP |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Net foreign exchange (gains) / | 380 | (4,455) | (5,341) |
| | | losses | | | |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Depreciation of tangible fixed | 590 | 633 | 1,320 |
| | | assets: | | | |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Amortisation of intangible assets | - | 5,414 | 5,414 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Developer subcontractors | 34,218 | 36,256 | 87,373 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Professional fees | 61,151 | 27,094 | 61,824 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Travel and accommodation expenses | 95 | 9,431 | 17,203 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Telephone and internet | 2,619 | 5,628 | 10,698 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Auditor's remuneration | - | 8,826 | 10,000 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Directors emoluments and other | 4,500 | 5,500 | 10,000 |
| | | benefits | | | |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Wages and salaries | - | - | - |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Office rents and rates | 3,000 | 4,056 | 7,152 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Bad debts | 77 | (3,885) | 25,593 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | | ------ | ------ | ------ |
+--+--+--------------------------------------------+-------------+------------+------------+
The cost of inventory recognised as an expense was nil (December 2008: nil).
3 SEGMENTAL REPORTING
Historically, the Group's primary reporting format for reporting segment
information is geographic segments and the segments are defined as Europe, Rest
of the World and Head Office as this split coincided with a geographical origin
split of activities. All trading activity arose within the subsidiary IncaGold
GmbH which has been disposed of and as a result, the turnover, assets and
operating expenses are disclosed below only as discontinued and continuing:
+--+--+-------------------+-------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | | 6 months ended 30 June 2009 | 6 months ended 30 June 2008 | Year ended 31 December 2008 |
+--+--+-------------------+---------------------------------------------------------------------------------------+----------------------------------------+----------------------------------------+
| | | | Discontinued | Continuing | Total | Discontinued | Continuing | Total | Discontinued | Continuing | Total |
+--+--+-------------------+-------------------------------------------------------------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | Allocated | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | | | | | | | | | | |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | Turnover | 43,018 | - | 43,018 | 115,175 | - | 115,175 | 214,310 | - | 214,310 |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | Cost of sales | (19,965) | - | (19,965) | (66,733) | - | (66,733) | (91,286) | - | (91,286) |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | Gross margin | 23,053 | - | 23,053 | 48,442 | - | 48,442 | 123,024 | - | 123,024 |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | | | | | | | | | | |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | Administrative expenses | | | | | | | | | |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | Recurring | (46,560) | (65,422) | (111,982) | (78,043) | (15,982) | (94,025) | (182,399) | (64,888) | (247,287) |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | Segmental Operating loss | (23,507) | (65,422) | (88,929) | (36,984) | (15,982) | (45,583) | (59,375) | (64,888) | (124,263) |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | | | | | | | | | | |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | Net finance expense | - | (1,689) | (1,689) | - | (84) | (84) | (10) | (5,530) | (5,540) |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | Loss on ordinary activities before tax | (23,507) | (67,111) | (90,618) | (36,984) | (16,066) | (45,667) | (59,385) | (70,418) | (129,803) |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | | | | | | | | | | |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | Total Assets | 190,282 | 21,178 | 211,460 | 265,641 | 32,646 | 298,287 | 199,278 | 14,062 | 213,340 |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | Total liabilities | (205,617) | (83,406) | (289,023) | 230,619 | 67,862 | 298,481 | (191,104) | (106,566) | (297,670) |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | | _________ | _________ | _________ | _________ | _________ | _________ | _________ | _________ | _________ |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | Net Assets / (Liabilities) | (15,335) | (62,228) | (77,563) | 35,022 | (35,216) | (194) | 8,174 | (92,504) | (84,330) |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | | | | | | | | | | |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | Capital Expenditure | - | - | - | 1,445 | - | 1,445 | 1,445 | - | 1,445 |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | Depreciation & Amortisation | 633 | - | 633 | 633 | - | 633 | 1,320 | - | 1,320 |
+--+--+---------------------------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
| | | | | | | | | | | | |
+--+--+-------------------+-------------------------------------------------+-----------+------------+------------+--------------+------------+------------+--------------+------------+------------+
4.TRADE AND OTHER RECEIVABLES
+--+--+--------------------------------+------------+------------+------------+------------+
| | | Amounts due within one year | | 6 months | 6 months | Year ended |
| | | | | ended | ended | 31 |
| | | | | 30 June | 30 June | December |
| | | | | 2009 | 2008 | 2008 |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | | | GBP | GBP | GBP |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | Trade receivables | | 102,760 | 150,874 | 110,049 |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | Other receivables | | 80,954 | 104,394 | 86,665 |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | Prepayments and accrued | | 5,841 | 22,857 | 5,455 |
| | | income | | | | |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | | | ------- | ------- | ------- |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | | | 189,555 | 278,125 | 202,169 |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | | | ------ | ------ | ------ |
+--+--+--------------------------------+------------+------------+------------+------------+
5. CURRENT LIABILITIES
+--+--+--------------------------------+------------+------------+------------+------------+
| | | | | 6 months | 6 months | Year ended |
| | | | | ended | ended | 31 |
| | | | | 30 June | 30 June | December |
| | | | | 2009 | 2008 | 2008 |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | | | GBP | GBP | GBP |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | Trade payables | | 96,986 | 116,472 | 95,405 |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | Social security and | | - | 88 | 88 |
| | | other taxes | | | | |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | Accruals and deferred | | 192,037 | 181,921 | 176,221 |
| | | income | | | | |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | | | ------- | ------- | ------- |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | Trade and other | | 289,023 | 298,481 | 271,714 |
| | | payables | | | | |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | | | ------ | ------ | ------ |
+--+--+--------------------------------+------------+------------+------------+------------+
6.BORROWINGS
+--+--+--------------------------------+------------+------------+------------+------------+
| | | | | 6 months | 6 months | Year ended |
| | | | | ended | ended | 31 |
| | | | | 30 June | 30 June | December |
| | | | | 2009 | 2008 | 2008 |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | | | GBP | GBP | GBP |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | Loans | | - | - | 25,956 |
+--+--+--------------------------------+------------+------------+------------+------------+
| | | | | ------ | ------ | ------ |
+--+--+--------------------------------+------------+------------+------------+------------+
On 3 June 2009, the Company announced that, further to the secured loan
agreement with Fox Capital Limited ('Fox') announced on 30 May 2008, it has
entered into an Amended Secured Loan Agreement with Fox whereby Fox has extended
the facility made available to the Company to a total working capital facility
of up to GBP100,000 to secure the Company's cash flow position in the near term.
The principal terms are that, in addition to paying interest at a rate of ten
percent above the base rate of Lloyds Bank Offshore Limited, the Company shall
pay a fee to Fox of 25% of the maximum amount drawn down during the Loan Period
which shall be paid to Fox on the Repayment Date. The Repayment Date is defined
as the earlier of seven years from today's date or either when the loan is
repaid in full or one month after a written repayment demand is received by the
Company from Fox.
As announced on 30 May 2008, the Company entered into a debenture agreement
whereby any amounts owed to Fox that are outstanding and unpaid are secured on
the Company's fixed and floating assets.
On the Repayment Date, Fox may elect to subscribe for new ordinary shares in the
Company, converting the total amount of the loan outstanding together with any
accrued interest and the fee described above at a subscription price equivalent
to the mid market price on the close of business on the trading day that
immediately precedes the date on which the funds were drawn down.
Under AIM Rule 13, the Secured Loan Agreement constituted a Related Party
Transaction as Fox is a related party as disclosed in related party disclosures
noted 20.
As at 30 June 2009, the Company had drawn down a total of GBP97,386, including
costs borne by Fox. Under the Amended Secured Loan Agreement this loan was
converted to shares on 30 June 2009 (note 7 share capital).
7.SHARE CAPITAL AND RESERVES
+--+--+--------------------------------------------+------------+-------------+------------+
| | | | 6 months | 6 months | Year ended |
| | | | ended | ended | 31 |
| | | | 30 June | 30 June | December |
| | | | 2009 | 2008 | 2008 |
+--+--+--------------------------------------------+------------+-------------+------------+
| | | Share capital | | GBP | GBP |
+--+--+--------------------------------------------+------------+-------------+------------+
| | | | | | |
+--+--+--------------------------------------------+------------+-------------+------------+
| | | Authorised | | | |
+--+--+--------------------------------------------+------------+-------------+------------+
| | | 750,000,000 ordinary shares of 0.001p each | 7,500 | 7,500 | 7,500 |
+--+--+--------------------------------------------+------------+-------------+------------+
| | | | ------ | ------ | ------ |
+--+--+--------------------------------------------+------------+-------------+------------+
| | | Allotted, called up and fully paid | | | |
+--+--+--------------------------------------------+------------+-------------+------------+
| | | 449,255,460 (2008: 377,424,845) ordinary | 4,493 | 3,775 | 3,775 |
| | | shares of 0.001p each | | | |
+--+--+--------------------------------------------+------------+-------------+------------+
| | | | ------ | ------ | ------ |
+--+--+--------------------------------------------+------------+-------------+------------+
Fully paid ordinary shares carry one vote per share and carry a right to a
dividend.
On 8 July 2009, following the conversion of the Fox loan, the Board announced
that it has today made application for 71,830,615 new ordinary shares of 0.001p
per share to be admitted to AIM. These shares were admitted on 14 July 2009. In
order to reflect the substance of this transaction, the shares were deemed
issued for these interim statements and are shown accordingly on the balance
sheet. The result is an increase in share capital of GBP718 being equivalent to
71,830,615 shares, and increase in the share premium of GBP96,668 to extinguish
the loan at 30 June 2009 of GBP97,386.
In January 2006, the Company entered into a contract by which intellectual
property rights relating to digital distribution technology were acquired. The
total purchase consideration was GBP250,000.
The contract was signed in December 2005 and finalised in January 2006. Under
the terms of the agreement, GBP50,000 was paid in cash and ordinary shares were
issued in January 2006 at an issue price of GBP0.0525 each in respect of a
further GBP50,000. The remaining balance of GBP150,000 is subject to certain
conditions which, if fulfilled, will be satisfied by the issue of further
ordinary shares at the same issue price of GBP0.0525 each.
8. RELATED PARTY TRANSACTIONS AND POST BALANCE SHEET EVENTS
Control
Of the Companies issued share capital at 30 June 2009, 360,319,890 (June 2008 &
December 2008: 288,489,274) shares are held by Fox Capital Limited on 21
December 2007, a company controlled by R W Tilleard representing 80.20% (2007:
76.43%) of the issued ordinary share capital.
Loan agreement
On 9 May 2008 the Company entered into a loan agreement with Fox Capital Limited
("Fox") whereby Fox made available to the Company a working capital facility of
up to GBP30,000. The terms of the Loan are set out in Borrowings - note 6.
On 3 June 2009 the Company announced an amendment to the agreement whereby the
facility was extended to GBP100,000, and on 29 June converted its loan into
shares such that the entire GBP100,000 facility became once again available to
the Company.
Under AIM Rule 13, the Secured Loan Agreement constituted a Related Party
Transaction as Fox is a related party because it is a substantial shareholder,
and two of its directors, Roy Tilleard and Justin Martin, are directors of the
Company. Richard Holmes who was the only independent director for these purposes
at the time of entering into the loan, considered, having consulted with Dowgate
Capital Advisors Limited, the Company's nominated advisor at the time, that the
terms of the of the Secured Loan Agreement are fair and reasonable insofar as
the Company's shareholders are concerned. The loan extension was approved as
fair and reasonable by Jonathan Ely and Michael Evans as independent director
after consultation with Zeus Capital Limited, the Company's current advisers.
Directors remuneration - equity-settled share option scheme
In addition to share option schemes already in existence, options over a further
9,000,000 shares were issued to a director, M Evans, on 14 April 2009. Under the
terms of the Option Agreement, after vesting, the options will be exercisable at
any time until 1 April 2014, and the exercise price shall be 3 pence per
ordinary share which is at a premium to the mid-market price as at the close of
business on 9 April 2009 which was 0.275p.
The options will vest in three tranches as follows:
* 3,000,000 options will vest on the first anniversary of his appointment;
* 3,000,000 options will vest on the second anniversary of his appointment; and
* 3,000,000 options will vest on the third anniversary of his appointment.
9. PUBLICATION AND AVAILABILITY
The Interim unaudited accounts also appear on the Company's website at
www.incagoldplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LMMLTMMAJMBL
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