Greenfield Construction::::::or Demolition?

Website (poor): http://www.greenfieldconstruction.co.uk/

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March - June 2004
(Hightower Construction - Cash Shell)
4,999,998 ordinary 1p shares issued at par
Shares bought by:
HD Kanabar – 1,000,000, S Lakhani – 900,000, AG Wright – 266,666
Total spent by Kanabar, Lakhini and Wright is just over £13,500.

GFC floated on AIM, 10.0m ordinary 1p shares issued at 5p per share.

Intentions of Hightower: "to acquire specialist companies supplying services to the
housebuilding sector and in particular to invest in and acquire businesses that are
well managed, profitable and cash generative."

December 2004
Reverse takeover of Greenfield Construction Limited (GCL) and change of name - epic
GFC.– consideration = cash £725k and 8.88m ordinary 1p shares (issued at 9p per
share), shares issued to co-founders of GCL (David Garner and Ian Taylor)..

Garner, Lakhani and Taylor appointed executive directors.

August 2005

Results for the year ended 31 March 2005 (why the delay?) – pre-tax profits of £76k
on a turnover of £2.7m, the results only incorporate trading of GCL from 7 December
2004. For the full year, GCL had a turnover of £8.7m and pre-tax profits of £421k
(2004: turnover of £6.3m, pre-tax profits £301k).

About GCL:
“GCL was established in 2000 by Ian Taylor and David Garner. It specialises in
providing outsourcing services to the house building sector and in particular ground
works, which includes removal of topsoil from the site, excavation and construction
of the building foundations, laying of the footings, connection to sewers and the
construction of driveways, pavements, all roads and adaptable sewer-works. This area
tends to lend itself to the outsourcing approach because of the specialist skills
involved.

GCL has grown quite considerably over the past few years and the success has been
built on strong management control of sites, coupled with the retention of good
quality employees within the business, which has allowed GCL to win work and
establish a reputation for dependability and quality. GCL generally aims to secure
contracts which are within a reasonable proximity to its offices, thus maintaining a
geographical focus to its activities. This is important as it enables its management
team to keep a close control of individual sites, it facilitates the sharing of
resources, including employment between different sites when the opportunity arises
and it maintains local knowledge of ground conditions which allows for more accurate
costings. The customer base of the Group is made up of national and regional house
builders. Our customers include Bellway Homes, Barratt Homes, Morris Homes Limited,
Rippon Homes and George Wimpey Homes.”

The stated strategy was now to build through acquisitions and acquisition
opportunities were being evaluated.

22 December 2005
Results for the six months to 30 September 2005 – pre-tax loss of £25k on a turnover
of £4.7m.
Commentary:

“The six month period from March has been a very interesting period in the development of the Company with turnover continuing to grow. We have made further investments in the Company in the light of the increasing turnover by moving to larger premises and recruiting senior managers within the Finance, Quantity surveying and Contracts management. We believe these investments are necessary in a growing Company and will stand us in good stead in the future.”

Considerable progress has been made in growing the Company and our order book going into the second half is quite healthy. We expect to make further progress in the
second half of the financial year.”


In both sets of published results to date, the Chairman's statements (Kanabar's) are of poor quality, with little or no operational content; mind, he's no construction man.

GCL achieved pre-tax profits of £301k in 2003/4, £421k in 2004/5.

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Significant holdings (at 31 March 2005) 31,666,665 shares in total:

D B Garner (D) .......... 4,444,444 .. 14.0%
I A Taylor (D) .......... 4,444,444 .. 14.0%
N Y Nominees Ltd ........ 3,827,778 .. 12.1%
Hoodless-Brennan ........ 2,800,000 ... 8.8% (28/09/05 - awaiting RNS to say no longer..
Barclayshare Nominees ... 1,458,164 ... 4.6%
BBHSL Nominees .......... 1,315,000 ... 4.2%
H D Kanabar (ex-D) ...... 1,000,000 ... 3.8%
S Lakhani (D) ............. 900,000 ... 2.8%
A G Wright (D) ............ 266,666 ... 0.8%