Final Results

RNS Number:1988A
Dimension Resources Ld
29 June 2004


DIMENSION RESOURCES LIMITED


Preliminary statement
31 December 2003


Dimension Resources Ltd is the parent company for a group quarrying and
processing decorative stone in the Republic of South Africa.  Its products are
primarily intended to be exported worldwide, although a substantial client base
has been built in South Africa.


Financial Results


The results for the year are viewed by the directors as extremely disappointing.
I had expected that the Group would be profitable at an operating level in
South Africa during 2003, but this expectation was not met due to a number of
factors.  In the long term perhaps the most important of these is the continuing
decline in the rate of exchange between the US dollar, in which sales are
priced, and the South African Rand, which applies to most costs.  So far as the
year under review is concerned, however, machinery breakdowns were the major
depressing factor, giving rise to both reduced production and substantially
increased costs.  While the trend remains an improvement in trading the
directors are fully aware that, to achieve profitability, they need to improve
the performance of production machinery to enable orders to be fulfilled.


Finally, recognition in the current year of unpaid remuneration for the managing
director increased the loss by #37,190.  This remuneration remains unpaid, and
both Geoffrey Hoodless and I waived our remuneration entitlement for 2003.


Sales demand, for the granite and bowenite quarries, remains strong, and the
limiting factor on growth is production capacity rather than orders.  For this
reason, the directors are seeking ways of obtaining finance for new equipment in
order to increase production levels.  The company will open the African Rainbow
quarry in the latter part of 2004, (once its mining licence under the new mining
code has been granted), and the indications are that this quarry will  provide
the volume increases needed for the Group's success.


The Group remains virtually debt free, having a small overdraft facility and a
finance lease on a front-end loader.  So far as assets are concerned, the Group
has both a freehold processing plant in Vredendal and a freehold office in
Somerset West, both in South Africa, in addition to its quarries and equipment.


Stone Quarries


Bowenite


The Group supplies bowenite blocks under an exclusive contract with Antolini
Luigi & Cie, one of the leading Italian stone companies.  Antolini has accepted
all blocks produced by the Group to date.  The quarry has been developed to
enable blocks of a more consistent quality to be produced despite the fractured
nature of the deposit.  This development is now bearing fruit in increasing
levels of production.  In addition to the block sales the company has reached an
agreement with the Antolini group, whereby the company will supply two
containers of bowenite tiles, initially.  The directors expect these volumes to
grow once bowenite, in tile form, is introduced into the market.


Coloured granites


The Group's properties in the Pofadder area of Namaqualand have deposits of a
number of coloured granites.  Quarries have been established for grey/blue
("Atlantic Blue"), brown ("Cape Autumn"), red ("Cape Red") and multicoloured
("African Rainbow") granites.  Production remains concentrated on Cape Autumn.
Cape Autumn is selling well in the South African market in particular, and the
company has seen a steady increase in sales volumes.  Although the company has
not managed to create an export market for this material in block form, as a
result of the exchange rate, the material is being exported in slab form by
South African clients.  On the basis of known demand, the directors expect a
substantial increase in sales for 2004.


African Rainbow is still in the quarry development stage, but test blocks have
been well received both locally in South Africa and abroad.  This is one
material where increased prices will offset the dollar devaluation.  Firm orders
have been received for the material, but the new mining laws, which require a
revised plan in order to renew the mining licence, have hampered production.
The mining licence is expected to be issued towards the third quarter of 2004.
Projections indicate that the opening of this quarry will provide the extra
sales required for the success of the Group.


Marble


Due to the currency changes outlined above, the directors decided not to proceed
with the proposal to open a new black marble quarry near Vredendal.  The
directors continue to seek a supply of marble for processing at the Vredendal
plant, and the Group has entered into negotiations to acquire rights over a
large area, which has marble and granite deposits on it, in Namibia.


Processed stone


Vredendal plant


The processing plant comprises a freehold factory and offices of some 1,800
square metres on a site of over 18,000 square metres.  The factory is fully
equipped for marble tile production, with an automated marble tile cutting line
and facilities for handling and cutting marble blocks.  The plant does not
enable granite to be processed.


The factory remains under-utilised, although export orders for bowenite tiles
have been received.  Further increases in products for the factory remain a
priority for the future.


Sales Showroom and Distribution Warehouse


The Group's warehouse and showroom in Somerset West continues to supply the
local market with product from the processing plant.  Sales through this outlet
continue to increase with the Group's own products being supplemented by
distributorship agreements.  The Group has recently commenced selling and
installing special products for bathrooms and kitchens.


Annual General Meeting


The company's annual general meeting will be held on 25 August 2004, and a
notice is being despatched to shareholders with the annual report and accounts
on 30 June 2004.


Future prospects


While the Board believes that the prospects for the Group are constantly
improving , the requirement remains to increase production to enable the Group
to reach profitability.  The Board is planning to achieve this in part through
increased production, in particular the African Rainbow quarry.  The Board also
intends to seek a corporate deal to add bulk to its present activities.


Finally I would like to thank all members of staff for their efforts through a
difficult period.


Brian Moritz (Chairman)


DIMENSION RESOURCES LIMITED

Consolidated income statement
for the year ended 31 December 2003


                                                       Group                             Company

                                                2003            2002            2003                2002
                                                 GBP            GBP              GBP                 GBP


Turnover                                    245,647         234,259                -                   -                
                                                    

Cost of sales                               136,993         120,790                -                   -
                                            

Gross profit                                108,655         113,469                -                   -
                                            
Administrative expenses                     (636,606)       (401,192)       (66,989)            (44,553)
                                            

Operating loss                              (527,952)       (287,723)       (66,989)            (44,553)
                                            
Interest receivable and similar income          4,304           2,407            440               1,103
                                            
Interest payable and similar charges          (2,717)         (8,367)              -                   -
                                            

Net loss before taxation                    (526,365)       (293,683)       (66,548)            (43,450)
                                            
Taxation                                            -              -               -                   -
                                                        

Net loss for the year                       (526,365)       (293,683)       (66,548)            (43,450)
                                            

Earnings per share (pence)                     (0.41)          (0.28)
                                            

Weighted average number of shares in 
  issue                                   128,905,511     104,042,498



DIMENSION RESOURCES LIMITED

Consolidated balance sheet for the year ended 31 December 2003

                                                                Group                         Company
                                                          2003           2002           2003           2002
                                                           GBP            GBP            GBP            GBP
ASSETS

Non-current assets                                  17,694,475     15,696,061     17,950,380      17,743,100

Tangible assets                                      1,419,723      1,360,850              -               -
                                                                                           
Stone deposits                                      14,306,101     14,306,101              -               -
                                                                                           
Pre-production costs                                    29,053         29,110              -               -
                                                                                           
Foreign currency translation reserve                 1,939,598              -              -               -
                                                                            
Investments                                                  -              -     17,950,380      17,743,100
                                                             

Current assets                                         490,689        311,424        182,139          16,252

Inventories                                            203,531        243,053              -               -
                                                                                           
Trade and other receivables                             91,727         53,831          3,450           6,699
                                                                                       
Cash at bank and on hand                               195,431         14,540        178,689           9,553

Total assets                                        18,185,164     16,007,485     18,132,518      17,759,352


EQUITY AND LIABILITIES

Shareholders' funds                                 17,936,872     15,769,817     18,103,866      17,722,815

Called up share capital                              6,799,000      6,706,000      6,799,000       6,706,000

Share premium account                               11,932,457     11,577,856     11,932,457      11,577,857

Profit and loss account                               -794,585     -2,514,039       -627,591        -561,042

Long-term liabilities                                  132,734         48,597              -          10,000
                                                                                           
                                                                       
Foreign currency translation reserve                         -         41,597              -               -          
                                                             
Creditors: amounts falling due within
one year                                               115,558        147,473         28,652          26,537

Trade and other payables                                88,117        125,383         28,652          26,537

Provisions                                              27,441         22,090              -               -
                                                                                           

Total equity and liabilities                        18,185,164     16,007,485     18,132,518      17,759,352


DIMENSION RESOURCES LIMITED

Consolidated cash flow statement
for the year ended 31 December 2003

                                                     Group                          Company
  
                                               2003            2002           2003          2002
                                                GBP             GBP            GBP           GBP

CASH FLOWS FROM OPERATING ACTIVITIES      (262,956)       (137,532)       (61,185)      (74,749)
                                          

Cash absorbed by operations               (264,543)       (131,572)       (61,625)      (75,852)
                                          
Interest received                             4,304           2,407            440         1,103
                                          
Interest paid                               (2,717)         (8,367)              -             -
                                          

CASH FLOWS FROM INVESTING ACTIVITIES        (3,753)        (56,824)      (207,280)      (96,008)
                                          

Payments to acquire tangible assets         (3,753)        (56,824)              -             -
                                          
Loans to subsidiary companies                     -               -      (207,280)      (96,008)
                                                     

CASH FLOWS FROM FINANCING ACTIVITIES        447,601          22,400        437,600        10,000

Repayment of long term borrowings                 -          16,151       (10,000)        10,000
                                                     
Investments                                       -           6,249              -             -
                                                     
Issue of ordinary share capital and share
premium                                     447,601               -        447,600             -

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS                            180,891       (171,956)        169,135     (160,758)
                                          

Cash and cash equivalents at the
beginning of the year                        14,540         186,496          9,553       170,311
                                          

Cash and cash equivalents at the
end of the year                             195,431          14,540        178,688         9,553
                                          


Notes


1.             Financial information


The financial information set out above does not constitute the Company's
statutory financial statements for the year ended 31 December 2003, but is
derived from those statements.  The auditors have reported on the financial
statements to 31 December 2003 and their report was unqualified.


2.             Availability of annual report


Copies of the annual report for the year ended 31 December 2003 will be
available from the Company Secretary at 22 Melton Street, London NW1 2BW.

                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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