We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Jarlway | LSE:JWY | London | Ordinary Share | GB00B09JC675 | ORD 0.25P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.375 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:8489D Jarlway Holdings plc 14 September 2007 Jarlway Holdings plc 14 September 2007 Jarlway Holdings plc Interim Results and Chairman's Statement for the 6 months ended 30 June 2007 Chairman Statement I am pleased to report the results of the Company for the 6 months ended 30 June 2007. During the period, we continued our strategic development in strengthening management and raising production efficiency to solidify the foundation of developments put in place during 2006. The construction machinery market in China remains very vibrant. As I pointed out in the 2006 report, the main reason is the huge demand by large-scale national infrastructure projects and the booming property market. Unfortunately, shortage of supply of a major component used in the Company's trailer pumps has hindered our ability to exploit this opportunity fully in the first 6 months of 2007. The Company has for some time been seeking alternative suppliers for this component, but we have not been satisfied with the quality of available alternatives, either in China or elsewhere. We have been in discussion with our supplier with a view to them resuming the supply level we require, and we now believe this is getting back on track. To mitigate the effect of this supply shortage, we have accelerated the diversification of our product range, as well as increased our efforts to sell into new markets. We have, for example, already started our export sales of tower cranes to customers as far afield as Argentina and Dubai, as well as South East Asia. We believe that this overseas expansion, alongside an increase in our domestic customer base, reflects both growing recognition of the Jarlway brand and our dedication to product quality. We continue to strengthen our management in credit control and the recovery of accounts receivable. During the first 6 months of the year, 66.17% of sales in the period were converted to cash and we have recovered RMB5,930,000 from accounts receivable due before 31 December 2005. With the support of our three bankers, the Company has been granted aggregate banking facilities of RMB34,000,000. These banking facilities are mainly used to finance the research and development, and manufacture, of tower cranes and our new placing booms. The Company's new subsidiary, Jarlway-Lishitong Machinery Inc, formed in March 2007, has already commenced operations in new product design and trial production. The production of placing booms has already commenced at the factory, and the subsidiary is also acting as a subcontractor for the Group for the production of machine parts. Our objective at Lishitong is to use the site's extensive facilities to manufacture products such as the tower cranes which it would be difficult to do at our main factory. We are confident that this company will play a significant role in the development of the Jarlway group, helping to develop and expand our product range and production capacity. Financial Results Sales and profit after taxation of the Company for the 6 months ended 30 June 2007 amounted to #2,937,000 (6 months ended 30 June 2006: #3,637,000) and # 102,000 (6 months ended 30 June 2006: #344,000), respectively. The reasons for the decrease in both sales and profit after taxation are: 1. The number of concrete pumps sold during the period under review decreased to 138 from 161 compared with the same period last year. The decrease was due to us being unable to satisfy existing orders as a result of the supply shortage discussed above; 2. Despite an increase in the cost of raw materials (such as steel), a drop in orders from higher margin customers (railway contractors), and the fact that the Company offered discounts for early payment by customers, the gross margin of the Company has been maintained above 30%, decreasing to 31.3% in the 6 months ended 30 June 2007 from 37.6% in the same period last year; 3. We have made a significant investment in research and development of new products and facilities, including in Jarlway-Lishitong. The sales of those new products have only just commenced, but we are confident that these sales will be significant and will over time justify the level of investment. Administrative expenses for the 6 months ended 30 June 2007 amounted to # 470,000, a decrease of #39,000 from the same period last year. Distribution costs for the 6 months ended 30 June 2007 amounted to #290,000, a decrease of # 145,000 from the same period last year. We continue to work hard to reduce both administrative expenses and distribution costs without compromising efficiency. Inventories as of 30 June 2007 were #2,200,000, an increase of #1,330,000 from 30 June 2006. The increase is mainly due to the increase of inventories of raw materials and finished goods of tower cranes and placing pumps, which is a direct consequence of our increased order book for our new products. Prospects The prospects for the construction machinery industry in China continue to be good, not only due to the booming domestic construction sector, but also due to the huge international demand for construction machinery. This industry is one that the Chinese government supports by providing incentives in areas such as export customs duties, banking facilities and grants of land for plant construction, etc. With this support, the Company has now completed the development of its tower cranes and placing pumps, and expects increasing orders from overseas markets. I strongly believe that export sales will greatly enhance the Company's cash flows and lower the dependence on the local market. This will contribute significantly to the Company's profit and scale of operations. The management and staff of the Company have put a significant effort into tackling the many challenges we have faced in order to build the scale of operation we have today. However, the board remains open to the possibility of additional funding as this would allow us to push ahead with further development. Bank borrowings granted to the Company in China are mostly short-term and such borrowings are not suitable for capital investment. Lack of capital investment in plant and machinery holds us back from implementing large scale production across our product range, which would lower the average costs of production. Bank borrowings also increase the costs of financing of the Company which has a direct negative impact on the interests of shareholders in the Company. If we can resolve these financing challenges, I believe we will maintain and increase the competitive advantage we have now achieved. I wish to thank my fellow directors and all our staff for the continued loyalty and support. Their hard work and dedication are the basis of the Company's success to date and its development in the future, and we are looking forward to a return to improved performance during the second half. WU Zhi Jia Chairman 14 September 2007 Consolidated Income Statement For the six months ended 30 June 2007 Six months ended 30 June Year ended 31 December 2007 2006 2006 (unaudited) (unaudited) (audited) Notes #'000 #'000 #'000 ------- ------- Revenue 4 2,937 3,637 7,164 Cost of sales (2,018) (2,270) (4,352) ---------- ---------- --------- Gross profit 919 1,367 2,812 Other revenue 12 12 13 Distribution costs (290) (435) (986) Administrative expenses (470) (509) (1,044) ---------- ---------- --------- Operating profit 171 435 795 Finance costs (43) - (52) ---------- ---------- --------- Profit before taxation 128 435 743 Taxation 5 (26) (91) (111) ---------- ---------- --------- Profit for the period 102 344 632 ---------- ---------- --------- Attributable to: Equity holders of the 107 344 632 Company Minority interest (5) - - ---------- ---------- --------- 102 344 632 ---------- ---------- --------- Earnings per share Basic and diluted 6 0.44p 1.41p 2.59p ---------- ---------- --------- Consolidated Statement of Changes in Equity For the six months ended 30 June 2007 Issued Employee Share Exchange Merger Retained Total Minority Total share share-based premium ranslation reserve profits interests equity capital compensation reserve reserve #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 Balance at 1 61 6 228 337 (49) 3,240 3,823 - 3,823 January 2006 Exchange translation difference - - - (170) - - (170) - (170) Profit for the - - - - - 344 344 - 344 period Total recognised income and expenses 61 6 228 167 (49) 3,584 3,997 - 3,997 Employee share - 3 - - - - 3 - 3 option benefit At 30 June 2006 61 9 228 167 (49) 3,584 4,000 - 4,000 - Balance at 1 61 20 228 (8) (49) 3,872 4,124 - 4,124 January 2007 Exchange translation difference - - - (3) - (3) - (3) Profit (Loss) - - - - - 107 107 (5) 102 for the period Total recognised income and expenses 61 20 228 (11) (49) 3,979 4,228 (5) 4,223 Acquisition of - - - - - - - 30 30 a subsidiary At 30 June 2007 61 20 228 (11) (49) 3,979 4,228 25 4,253 Consolidated Balance Sheet For the six months ended 30 June 2007 As at As at As at 30 June 30 June 31 December 2007 2006 2006 (unaudited) (unaudited) (audited) Notes #'000 #'000 #'000 Non-current assets Property, plant and equipment 413 286 330 Intangible assets 10 36 - 46 Trade receivables 11 - 74 11 Restricted bank balances 9 - 146 78 Deferred tax assets 39 81 63 ---------- ---------- ---------- 488 587 528 ---------- ---------- ---------- Current assets Assets held for sale 8 707 316 312 Inventories 2,200 870 1,478 Trade and other receivables 11 5,026 5,143 4,670 Financial assets at fair value through profit or loss 5 5 5 Restricted bank balances 9 205 134 265 Cash and cash equivalents 691 516 374 ---------- ---------- ---------- 8,834 6,984 7,104 ---------- ---------- ---------- Total Asset 9,322 7,571 7,632 ---------- ---------- ---------- Equity and liabilities Capital and reserves Share capital 14 61 61 61 Equity attributable to equity holders of 15 4,167 3,939 4,063 the company Minority interest 15 25 - - Total equity 4,253 4,000 4,124 ---------- ---------- ---------- Non-current liabilities Non-current portion of bank borrowings 12 - 57 11 ---------- ---------- ---------- Current liabilities Trade and other payables 13 3,138 3,165 2,763 Short-term bank borrowings 1,793 - 519 Current portion of bank borrowings 12 55 190 100 Income tax payable 83 159 115 ---------- ---------- ---------- 5,069 3,514 3,497 ---------- ---------- ---------- Total liabilities 5,069 3,571 3,508 ---------- ---------- ---------- Total equity and liabilities 9,322 7,571 7,632 ---------- ---------- ---------- Consolidated Cash Flow Statement For the six months ended 30 June 2007 ------------------ --------- Six months ended 30 June Year ended 31 December ------------------ --------- 2007 2006 2006 (unaudited) (unaudited) (audited) #'000 #'000 #'000 Cash (used in)/ generated from operations before taxation (927) 715 450 Tax paid (34) (41) (85) --------- --------- --------- Net cash (used in)/ generated from operating activities (961) 674 365 Net cash (used in)/ generated from investing activities (108) 6 (151) Net cash generated from/ (used in) financing activities 1,354 (450) (57) --------- --------- --------- Net increase in cash and cash equivalents 285 230 157 Cash and cash equivalents at 1 January 374 298 298 Effect of exchange rate differences 32 (12) (81) --------- --------- --------- Cash and cash equivalents at 30 June 691 516 374 --------- --------- --------- Operating activities: Profit for the period 128 435 743 Adjustment for: Provision for doubtful debts - 109 230 Write-off of bad debts - - 48 Depreciation of property, plant and equipment 25 20 44 Amortisation of intangible assets 10 14 Employee share based compensation - 3 14 Interest income (3) (2) (5) Interest expense 43 16 52 --------- --------- --------- Operating cash flows before movements in working capital 203 581 1,140 Changes in assets held for sale (395) - (10) Changes in inventories (724) (95) (706) Changes in trade and other receivables (354) 61 134 Changes in trade and other payables 383 182 (113) --------- --------- --------- (887) 729 445 Interest received 3 2 5 Interest paid (43) (16) - --------- --------- --------- Cash (used in) from operations before taxation (927) 715 450 --------- --------- --------- Notes to the interim financial statement For the six months ended 30 June 2007 1. General information The interim results for the period ended 30 June 2007 are unaudited and do not constitute statutory accounts within the meaning of s.240 of the Companies Act 1985. They have been prepared in accordance with accounting policies expected to apply for year ending 31 December, 2007. 2. Basis of preparation The Directors are responsible for the preparation of the Group's unaudited interim financial statements. These unaudited interim financial statements have been prepared in accordance with International Financial Reporting Standards No.34 "Interim Financial Reporting". These interim financial statements should be read in conjunction with the 2006 annual financial statements. The accounting policies adopted in preparing the unaudited interim financial statements for the six months ended 30 June 2007 are consistent with those in the preparation of the Group's annual financial statements for the year ended 31 December 2006 and are summarised as below. 3. Principal accounting policies Consolidation The Group comprises: Jarlway Holdings plc, the ultimate holding company; Jarlway International Limited, an intermediate holding company; Jarlway Machinery Inc, Jarlway Xinxin Machinery Inc and Jarlway Lishitong Machinery Inc. The Group income statement for the six months ended 30 June 2007 comprises the results of all of the above companies for the six months ended 30 June 2007. Subsidiaries Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or convertible are taken into account. Property, plant and equipment Property, plant and equipment other than construction in progress are stated at cost less accumulated depreciation and impairment losses. The cost of an item of property, plant and equipment comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Improvements are capitalised only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Expenditures incurred in restoring assets to their normal working condition and other repairs and maintenance costs are charged to the income statement. Depreciation is charged to the income statement on a straight-line basis over the estimated useful life of each component of an item of property, plant and equipment. The estimated useful lives are as follows: Machinery 5-10 years Motor vehicles 10 years Furniture, fittings and equipment 5-10 years 3. Principal accounting policies (Continued) Property, plant and equipment (Continued) No depreciation is provided in respect of construction in progress until it is completed and is put into commercial operation. Gains or losses arising from the retirement or disposal of property, plant and equipment are determined as the difference between the net sale proceeds and the carrying amount of the asset and are recognised as income or expense in the income statement. Intangible assets The initial cost of acquiring technology know-how intangible assets is capitalised. Technology know-how with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is provided on the straight-line basis over their estimated useful lives. Intangible assets that are not yet in use or having an indefinite useful live are reviewed for impairment annually or more frequently when indicator of impairment arises during the reporting year indicating that the carrying value may not be recoverable. Revenue recognition Revenue is recognised when it is probable that the economic benefits will flow to the Group and when the revenue and costs, if applicable, can be measured reliably and on the following bases. Sales of goods are recognised on the transfer of the risks and rewards of ownership, which generally coincides with the time when goods are delivered to customers and title has passed. Interest income is recognised by applying the effective interest method to the net carrying amount of the financial assets. Foreign currency Renminbi ("RMB") is the currency of the primary economic environment in which the entity operates ("The functional currency"). Pounds sterling is the currency in which the interim results are presented ("The presentational currency"). For the purposes of the interim results, the financial information has been translated from RMB to # at the exchange rate ruling at 30 June 2007. The results of the foreign subsidiaries have been translated at the average rate ruling during the six-month period. The presentational currency does not reflect the economic substance of the underlying events and circumstances of the enterprise. Impairment of assets At each balance sheet date, the Group reviews internal and external sources of information to determine whether the carrying amounts of its property, plant and equipment, investment in subsidiaries, have suffered an impairment loss or if an impairment loss previously recognised no longer exists or may be reduced. If any such indication exists, any impairment loss is determined and recognised as follows: 3. Principal accounting policies (Continued) Impairment of assets (Continued) At each balance sheet date, the Group reviews internal and external sources of information to determine whether the carrying amounts of its property, plant and equipment, investment in subsidiaries, have suffered an impairment loss or if an impairment loss previously recognised no longer exists or may be reduced. If any such indication exists, any impairment loss is determined and recognised as follows: The recoverable amount of the asset is estimated, based on the higher of its fair value less costs to sell and value in use. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the smallest group of assets that generates cash flows independently (i.e. cash-generating unit). If the recoverable amount of an asset or a cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. Impairment losses are recognised as expense immediately. A reversal of impairment loss is limited to the carrying amount of the asset or cash-generating unit that would have been determined had no impairment loss been recognised in prior years. Reversal of impairment losses in respect of other assets is recognised as income immediately. Financial instruments Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instruments and on the trade date basis. Financial asset and financial liabilities are measured as follows: Financial assets at fair value through profit or loss Financial instruments classified as financial assets at fair value through profit or loss include financial assets held for trading, and those designated at fair value through profit or loss at inception. These items are measured at fair value, with gains or losses recognised in the income statement. At the balance sheet date, the financial assets are measured at fair value by reference to the price quotation for equivalent instruments in an active market provided by financial institutions. Any changes in fair value are recognised in the income statements. Trade and other receivables Trade and other receivables are initially recognised at fair value and thereafter stated at amortised cost less provision for impairment. Loans and receivables without fixed or determinable repayment terms are stated at cost less any accumulated impairment loss. A provision for impairment of receivables is established when there is objective evidence that the Group will not be able to collect all the amounts due according to the original terms of receivables. The amount of the provision is the difference between the assets' carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of provision is recognised in the income statements. Trade and other payables Trade and other payables are initially recognised at fair value and thereafter stated at amortised cost. The derecognition of a financial asset takes place when the Group's contractual rights to future cash flows from the financial asset expire or the Group transfers the contractual rights to future cash flows to a third party. The Group derecognises a financial liability when, and only when the liability is extinguished. 4. Revenue The principal activity of the company is investment holding. Details of the principal activities of the subsidiaries are as follows: Subsidiaries Principal activities -------------- ---------------------- Jarlway International Investment holding Limited Jarlway Machinery Inc. Developing, manufacturing and sale of large scale construction machinery Jarlway Xinxin Machinery Developing, manufacturing and sale of large scale Inc. construction machinery Jarlway Lishitong Inactive Machinery Inc. Revenue represented sales of concrete pumps and tower cranes. No segmental reporting is presented as the Company's sales were primarily made of concrete pumps in the People's Republc of China (the "PRC) with some overseas and tower cranes sales just before the period end.. 5. Taxation Six months ended 30 June Year ended 31 December 2007 2006 2006 (unaudited) (unaudited) (audited) #'000 #'000 #'000 PRC Enterprise income tax on income for the period - 91 111 Deferred taxation 26 ---------- --------- --------- 26 91 111 ---------- --------- --------- No provision for Hong Kong Profits tax has been made in the Group as the Group's Hong Kong subsidiary has no estimated taxable profit for the period. The subsidiaries operating in the PRC are subject to state and local income taxes in the PRC at their respective tax rates based on the taxable income reported in their statutory financial statements in accordance with applicable state and local income tax laws. Jarlway Machinery is subject to state and local income taxes in the PRC at standard rates of 12% and 3% respectively in accordance with the PRC foreign enterprise income tax law, applicable to wholly owned foreign enterprises. The effective foreign enterprise income tax rate for Jarlway Machinery was 15% for the six months ended 30 June 2007 (2006: 12%). Jarlway Xinxin is subject to state and local income taxes in the PRC at standard rates of 12% and 3% respectively in accordance with the PRC foreign enterprise income tax law, applicable to wholly owned foreign enterprises. The tax losses brought forward can set off part of the estimated assessable profit. As a result, the effective foreign enterprise income tax rate for Jarlway Xinxin was 3% for the six months ended 30 June 2007 (2006: Nil). 5. Taxation (con't) Pursuant to the Income Tax Law and the Detailed Rules for the Implementation of the Income Tax Law of the PRC for Foreign Investment Enterprises and Foreign Enterprises, Jarlway Lishitong Machinery Inc. ("Jarlway Lishitong") and Jarlway Xinxin Machinery Inc. ("Jarlway Xinxin") are entitled to a two-year exemption from the PRC foreign enterprise income tax starting from its first profit making year and followed by a 50% reduction from the PRC foreign enterprise income tax for the subsequent three years. Jarlway Lishitong suffered a loss for this period. No provision for income tax is provided for these subsidiaries as all of them incurred a loss for taxation purposes during the period. 6. Earnings per share The calculation of basic earnings per share is based on the profit for the period attributable to shareholders of the Company of #107,000 and the weighted average number of 24,413,333 shares in issue during the period. Diluted earnings per share for the six months ended 30 June 2007 are equal to the basic earnings per shares as the exercise price of the share options granted by the Company was higher than the average market price for shares during the period. For the six months ended 30 June 2007, there were no dilutive potential ordinary shares in issue. 7. Dividend The directors do not propose an interim dividend for the six months ended 30 June 2007 (June and December 2006: nil). 8. Assets held for sale Assets held for sale represent properties received from trade debtors in lieu of settlement which are carried at the lower of cost and net realisable value. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing and selling. 9. Restricted bank balances As at As at As at 30 June 30 June 31 December 2007 2006 2006 (unaudited) (unaudited) (audited) #'000 #'000 #'000 Current 205 134 265 Non-current - 146 78 --------- --------- ---------- 205 280 343 --------- --------- ---------- Restricted bank balances were pledged to secure bank borrowings granted to Jarlway Machinery Inc to finance certain trade receivables. Amounts that will be released back to Jarlway Machinery Inc. within one year have been classified as current. 10. Intangible assets As at As at As at 30 June 30 June 31 December 2007 2006 2006 (unaudited) (unaudited) (audited) #'000 #'000 #'000 At cost 62 - 62 Amortisation (24) - (14) Exchange rate movement (2) - (2) --------- --------- ---------- 36 - 46 --------- --------- ---------- Intangible assets represent technology know-how for the manufacture of placing booms and improving the manufacture of concrete pumps 11. Trade and other receivables As at As at As at 30 June 30 June 31 December 2007 2006 2006 (unaudited) (unaudited) (audited) Trade receivables #'000 #'000 #'000 From third parties 3,522 4,554 3,746 Less : Non-current portion - (74) (11) --------- --------- ---------- Current portion 3,522 4,480 3,735 Other receivables Deposits, prepayment and other debtors 1,504 663 935 --------- --------- ---------- 5,026 5,143 4,670 --------- --------- ---------- Trade receivables are shown net of accumulated provision for doubtful debt amounting to #738,000 (June 2006: #652,000; December 2006: #687,000). Included in trade receivables are amounts relating to bank financing arrangements. These are comprised of a current element amounting to #55,000 (June 2006: #190,000; December 2006: #100,000) and a non-current element amounting to #Nil (June 2006: #57,000; December 2006: #11,000). The fair value of trade and other receivables approximate the carrying value. 12. Bank borrowings As at As at As at 30 June 2007 30 June 2006 31 December 2006 Bank loan: (unaudited) (unaudited) (audited) #'000 #'000 #'000 Current portion 55 190 100 Non-current portion - 57 11 --------- --------- --------- 55 247 111 --------- --------- --------- 12. Bank borrowings (Continued) The bank borrowings are secured by certain trade receivables as well as restricted bank balances (note 10). Interest is calculated at 6% to 7% per annum and is borne by the customers concerned. During the period, one of the subsidiaries has entered into an agreement relating to a loan facility of up to RMB8 million (approximately GBP520,000) for two years commencing from June, 2007. The interest rate of it is prime rate plus 10% per annum and is secured by the personal guarantee of a director. The bank loan is repayable by 18 instalments commenced from January, 2008. 13. Trade and other payables As at As at As at 30 June 2007 30 June 2006 31 December 2006 (unaudited) (unaudited) (audited) #'000 #'000 #'000 Trade payables To third parties 1,655 1,482 1,505 Other payables Accrued charges and other creditors 1,483 1,683 1,258 --------- --------- --------- 3,138 3,165 2,763 --------- --------- --------- Included in other payables is an amount due to a director of #409,000 (June 2006: #518,000; December 2006: #441,000). The amount due is unsecured, has no fixed term of repayment and interest is charged at 6% per annum. The fair value of trade and other payables approximate the carrying value. 14. Share capital Ordinary shares of #0.0025 each ----------------- --- -------- No. of shares #'000 Authorised: At 30 June 2006, 31 December 2006 and 30 June 2007 (unaudited) 50,000,000 125 --------- -------- Issued and fully paid: At 30 June 2006, 31 December 2006 and 30 June 2007 (unaudited) 24,413,333 61 --------- -------- 15. Reserves Employee Share Exchange Merger Minority Retained Total share-based premium translation reserve interests profits compensation reserve (Note 1) (Note 2) reserve #'000 #'000 #'000 #'000 #'000 #'000 #'000 At 30 June 2006 9 228 167 (49) - 3,584 3,939 Exchange translation difference - - (175) - - - (175) Employee share 11 - - - - - 11 option benefit Profit for the - - - - - 288 288 period At 31 December 20 228 (8) (49) - 3,872 4,063 2006 Exchange translation difference - - (3) - - - (3) Acquisition of - - - - 30 - 30 subsidiary Profit for the - - - - (5) 107 102 period At 30 June 2007 20 228 (11) (49) 25 3,979 4,192 Note: 1. The merger reserve represents the difference between the nominal value of shares of the subsidiary company acquired, and the nominal value of the Company's shares issued in 2005. 2. The Group's accumulated profits included an amount of approximately #138,000 (June 2006:#172,000, December 2006: #138,000) reserved by the subsidiary in the PRC in accordance with the relevant PRC regulations. This reserve is only distributable in the event of liquidation of this PRC subsidiary. No options were exercised during the six months ended 30 June 2007 or in 2006. 16. Commitments Capital expenditure commitments As at As at As at 30 June 2007 30 June 2006 31 December 2006 (unaudited) (unaudited) (audited) #'000 #'000 #'000 Contracted but not provided in the financial statements 160 15 - --------- --------- --------- Capital expenditure commitments relates to the capital investment of subsidiary of Jarlway-Lishitong Machinery Inc. 16. Commitments (Continued( Commitments under operating leases The company leases a number of properties under operating leases, which typically run for an initial period of 2 - 5 years, with an option to renew the lease when all terms are renegotiated. None of the leases include contingent rentals. At the balance sheet date, the Company had total future minimum lease payments under non-cancellable operating leases, which are payable as follows: As at As at As at 30 June 2007 30 June 2006 31 December 2006 (unaudited) (unaudited) (audited) #'000 #'000 #'000 Within one year 101 42 83 In the second to fifth years inclusively 282 17 284 Within five years 1 - - --------- --------- --------- 384 59 367 --------- --------- --------- 17. Acquisition of subsidiary During the period, the Group formed a subsidiary, Jarlway-Lishitong Machinery Inc (Jarlway-Lishitong"), with Guangdong Lishitong Machinery Co. Ltd., a predominantly state-owned Chinese manufacturer of engineering machinery. The purpose of setting up Jarlway-Lishitong is to expand the Group's production capacity and develop a market for line construction machinery products. The registered capital of Jarlway-Lishitong is RMB5 million (approximately GBP330,000) and the Group contributes RMB3.5 million (approximately GBP230,000) in return for a 70% interest. This information is provided by RNS The company news service from the London Stock Exchange END IR VXLFFDKBFBBK
1 Year Jarlway Chart |
1 Month Jarlway Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions