RNS Number : 0368C
Amberley Group PLC
26 August 2008
Amberley Group PLC
Interim financial statements for the six months ended 30 June 2008
The Group's principal asset is its investment in Fortress (GB) Limited ("Fortress"), a market-leading provider of secure,
multi-application smartcard-based solutions for a variety of markets.
I recently reported to you on the progress that Fortress has made during 2008. In February 2008, as previously reported, Amberley invested
£1.2 million in new shares of Fortress in order to increase its stake to 23.9%. Fortress is now deploying that capital to increase its
investment in R&D, fund its geographic expansion, and for general working capital purposes.
Amberley currently has a loan facility of £150,000 which is fully drawn. The loan is provided by Starlight Investments Limited
("Starlight"). Starlight has been put into administrative receivership, so the board of Amberley has decided that this funding should be
replaced, although it should be noted that the facility has not been withdrawn. I expect to provide an update to shareholders in the near
future with respect to the replacement of this loan.
I remain confident in Fortress's future prospects and look forward to reporting again on its progress.
Guy Naggar
26 August 2008
For further information please contact
Amberley Group PLC
Robert Goldsmith Tel: 020 7834 8060
Strand Partners Limited
Simon Raggett / Angela Peace Tel: 020 7409 3494
Consolidated income statement for the six months ended 30 June 2008
Six months ended
Six months ended 30 June Year
30 June 2007 ended
2008 Unaudited 31 December
Unaudited (As restated) 2007
£'000 £'000 Audited
£'000
Administrative expenses (52) (57) (124)
Operating loss (52) (124)
Finance income - 1 -
Finance expenses (5) (3) (3)
Share of losses of associated (46) (22) (73)
company
Loss before taxation (103) (81) (200)
Taxation - - -
Loss for the year attributable
to equity holders of the
parent company (103) (81) (200)
Basic and diluted loss per
share
attributable to equity holders
of the parent company (0.2p) (0.1p) (0.4p)
Consolidated statement of changes in equity for the six months ended 30 June 2008 (unaudited)
Share premium Capital redemption
Share capital reserve reserve Other reserve Retained earnings
£'000 £'000 £'000 £'000 £'000
Total
£'000
Balance at
1 January 2007 1,152 1,035 898 638 (704) 3,019
Loss for the period and total
recognised income and expense
- - - - (81) (81)
Balance at
30 June 2007
1,152 1,035 898 638 (785) 2,938
Loss for the period and total
recognised income and expense
- - - - (119) (119)
Balance at
31 December 2007 1,152 1,035 898 638 (904) 2,819
Loss for the period and total
recognised income and expense
- - - - (103) (103)
Issue of share capital 375 825 - - - 1,200
Balance at
30 June 2008
1,527 1,860 898 638 (1,007) 3,916
Consolidated Balance Sheet at 30 June 2008
30 June
30 June 2007 31 December 2007
2008 Unaudited Audited
Unaudited (As restated) £'000
£'000 £'000
Assets
Non-current assets
Investments in equity
accounted associates 4,063 2,787 2,736
Total non-current assets 4,063 2,787 2,736
Current assets
Trade and other receivables 9 8 6
Derivative financial assets - 173 173
Cash and cash equivalents 53 18 43
Total current assets 62 199 222
Total assets 4,125 2,986 2,958
Liabilities
Current liabilities
Trade and other payables (209) (48) (139)
Total liabilities (209) (48) (139)
TOTAL NET ASSETS 3,916 2,938 2,819
Capital and reserves
attributable toequity holders
of the Company
Called up share capital 1,527 1,152 1,152
Share premium reserve 1,860 1,035 1,035
Capital redemption reserve 898 898 898
Other reserve 638 638 638
Retained earnings (1,007) (785) (904)
TOTAL EQUITY 3,916 2,938 2,819
Consolidated cash flow statement for the six months ended 30 June 2008
Six months ended
Six months ended 30 June Year
30 June 2007 ended
2008 Unaudited 31 December
Unaudited (As restated) 2007
£'000 £'000 Audited
£'000
Cash flows from operating
activities
Loss before taxation (103) (81) (200)
Adjustments for:
Share of losses of associated 46 22 73
company - (1) -
Finance income 5 3 3
Finance expenses
Operating loss before changes
in
working capital and provisions (52) (57) (124)
Increase in trade and other (3) (2) -
receivables
Increase/(decrease) in trade
and other payables 70 (5) 86
Cash generated from operations 15 (64) (38)
Investing activities
Interest paid (5) (3) (3)
Interest received - 1 -
Investment in associated (1,200) - -
company
Net cash from operating (1,190) (66) (41)
activities
Financing activities
Issue of share capital 1,200 - -
Increase/(decrease) in cash
and cash equivalents
10 (66) (41)
Cash and cash equivalents at
the beginning of the period
43 84 84
Cash and cash equivalents at
the endof the period
53 18 43
Notes to the interim financial statements
1 Accounting policies
Basis of preparation
The interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) using the same
accounting policies as used in the last published statutory financial statements for the year ended 31 December 2007. The comparative
figures for the six months ended 30 June 2007 have been restated to correctly record the derivative financial asset and to treat the Group's
investment in Fortress (GB) Limited ("Fortress") as an associated company. This treatment is consistent with that adopted in the audited
statutory accounts for the year ended 31 December 2007, the first period for which audited financial statements were prepared on an IFRS
basis. This interim financial statement has neither been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board.
The comparative figures for the year ended 31 December 2007 are not the Company's statutory accounts for that financial year. Those
accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was
unqualified, did not include references to any matter to which the auditors drew attention by way of emphasis without qualifying their
report, and did not contain statements under section 237(2) or (3) of the Companies Act 1985. The financial information in this document
does not constitute statutory financial statements within the meaning of section 240 of the Companies Act 1985.
2 Tax losses
The Group has tax losses carried forward of approximately £15.1m of which £12.9m are capital losses. No deferred tax has been recognised
as the Group does not expect to utilise the losses in the foreseeable future.
3 Dividends
The directors do not recommend an interim dividend.
4 Loss per share
The weighted average number of shares in issue during the six months ended 30 June 2008 was 56,040,021 (Six months ended 30 June 2007
and year ended 31 December 2007: 47,067,494).
5 Investments in equity accounted associates
As at 30 June 2008, the Group had an investment in 23.9% of the issued share capital of Fortress. This investment has been equity
accounted in the consolidated financial statements.
On 1 February 2008, the Company entered into an agreement to subscribe £1,200,000 for 480,000 ordinary shares of 1p each in Fortress.
The agreement utilised the extended option that had previously been recorded as a derivative financial asset in the Group balance sheet. The
subscription was made in two equal tranches of £600,000 on 7 February 2008 and 10 April 2008. The investment increased the Group's
investment in Fortress from 17.6% at 31 December 2007 to the current 23.9%.
6 Issue of share capital
On 31 January 2008 the Company placed 7,500,000 new ordinary shares of 2.5p each in the Company at a placing price of 8p per share and
on 1 April 2008 the Company placed a further 7,500,000 new ordinary shares of 2.5p each in the Company at a placing price of 8p per share.
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