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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Kurawood | LSE:KURA | London | Ordinary Share | GB00B246X642 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.35 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMKURA
RNS Number : 6156U
Kurawood PLC
29 June 2009
KURAWOOD PLC (the "Company" or "Kurawood") AND SUBSIDIARIES
UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE 6 MONTHS ENDED 31 MARCH 2009
CHAIRMAN'S AND CHIEF EXECUTIVE'S REPORT
I present the interim results for the six months to 31 March 2009, which has
been a period of restructuring and refocusing within the Group.
The Company has not generated revenues from product sales since Admission and
the Directors believe that, due to the likelihood of a protracted global
recession and continued unwillingness of customers to enter into forward
contracts to purchase products, this position is unlikely to change in the
foreseeable future. Therefore, as announced on 24 December 2008, the Directors
resolved during the period to move from a product manufacturing business to a
technology licensing business.
With Kurawood owning a UK national patent and with further international patent
applications in process to protect both its wood modification technologies, the
Directors believe that this business model should allow Kurawood to better
exploit its wood modification technologies. The Directors place an increasing
reliance on Kurawood's growing portfolio of IPR assets as a source of
competitive advantage for the businesses and use Harrison Goddard Foote
(www.hgfip.com) to ensure its intellectual property is sufficiently protected
since ownership of registered intellectual property rights ('IPR') provides a
certain degree of exclusivity and, thereby, a higher market share as and when
the Company's products prove successful among licensees and consumers.
Pursuant to this new business model, PG Industries Limited, the Company's New
Zealand subsidiary, has ceased trading and the Directors are exploring
opportunities to licence its facility to a third party where it will continue to
act as a showcase facility for future licensees.
The Company will concentrate its working capital on technology and brand
development, while licensees and/or manufacturing partners will provide capital
for manufacturing and product penetration. For a potential licensee, the capital
expenditure requirements are significantly lower than current competitive wood
modification offerings as are our manufacturing license fees and ongoing
production royalties. The Directors are confident that the economics and
efficiencies of our processes are such that potential licensee's are afforded a
market beating Return on Capital Employed.
The license-based business model will initially be aimed at major timber
processors with direct access to competitively priced timber resources capable
of being modified with the Company's wood modification technology, with
additional sales efforts being aimed at timber-based product manufacturers and
coatings suppliers in order to gain market acceptance of the Company's
technology.
Change of Director
Following the change in overall Group strategy, Peter McArthur resigned as a
Director of the Company.
Extended Funding Arrangements
On 2 April 2009, shareholders approved a subscription by Fox Capital Limited
('Fox Capital') to raise GBP200,000 net of expenses by the issue of 10,000,000
new Ordinary Shares at 2p per share, the conversion of a GBP100,000 convertible
loan into 5,000,000 new Ordinary Shares at 2p per share and the grant of
warrants to Fox Capital over 4,000,000 new ordinary shares exercisable at a
price of 2p per share.
Outlook
The ongoing costs of the Company have been significantly reduced. The aggregate
net proceeds of the subscription and conversion have provided the Company with
sufficient funds to implement its revised business strategy and support the
funding requirements until February 2010. I would however, like to draw your
attention to the "emphasis of matter - going concern" paragraph contained in the
auditors review.
The Company's licensing revenues, once secured, will be driven directly by the
size and timing of new licence agreements, which may lead to early volatility in
income. Once established, licence and royalty fees should provide considerable
forward visibility.
The last six months has been a difficult period but the Directors would like to
thank all shareholders for their patience.
Roy Tilleard
Chairman
26 June 2009
Enquiries:
Justin Martin, Kurawood plc; Tel: 01624 820 040
Ross Andrews, Zeus Capital Limited; Tel: 0161 831 1512
Tom Rowley, Zeus Capital Limited; Tel: 0161 831 1512
Ruari McGirr, St Helen's Capital plc; Tel: 020 7628 5582
Mark Anwyl, St Helen's Capital plc; Tel: 020 7628 5582
INDEPENDENT REVIEW REPORT TO THE BOARD OF DIRECTORS ON THE UNAUDITED INTERIM
FINANCIAL STATEMENTS OF KURAWOOD PLC
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31st
March 2009 which comprises the Consolidated Income Statement, Consolidated
Balance Sheet, Statement of Changes in Equity and the Consolidated Cash Flow
Statement and the Related Notes. We have read the other information contained in
the half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed
set of financial statements.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority. As disclosed in note 1, the
annual financial statements of the group are prepared in accordance with IFRSs
as adopted by the European Union. The condensed set of financial statements
included in this half-yearly financial report has been prepared in accordance
with International Accounting Standard 34, "Interim Financial Reporting," as
adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent
Auditor of the Entity" issued by the Auditing Practices Board for use in the
United Kingdom. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 31st March 2009 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by
the European Union and the Disclosure and Transparency Rules of the United
Kingdom's Financial Services Authority.
Emphasis of matter - Going Concern
In forming our conclusion on the interim statements, which is not qualified, we
have considered the Going Concern basis for the preparation of these accounts.
We note that the company raised finance of GBP200,000 by way of equity in April
2009, which was deemed essential in the September 2008 audit to support the
funding requirements of the company for the period until February 2010. The
company's results and position presented in this report is consistent with the
projections given in support of the audit. However we point out that there are
still uncertainties in the company's future cash flows arising from the
cessation of the subsidiary, as disclosed in note 5. These uncertainties could
significantly affect the applicability of the going concern concept.
Greystone LLC
26 June 2009
Douglas, Isle of Man
KURAWOOD PLC AND SUBSIDIARIES
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 MARCH 2009
+----------------------------------+--------+------+--------------+-------------+--------------+
| | | | | | |
+----------------------------------+--------+------+--------------+-------------+--------------+
| | Notes | | 6 | 6 months | Year ended |
| | | | months ended | ended | 30 |
| | | | 31 March | 31 March | September |
| | | | 2009 | 2008 | 2008 |
+----------------------------------+--------+------+--------------+-------------+--------------+
| | | | GBP | GBP | GBP |
| | | | | | |
+----------------------------------+--------+------+--------------+-------------+--------------+
| Revenue | | | - | - | - |
+----------------------------------+--------+------+--------------+-------------+--------------+
| Cost of sales | | | (6,096) | (93,834) | - |
+----------------------------------+--------+------+--------------+-------------+--------------+
| | | | ------- | ------- | ------- |
+----------------------------------+--------+------+--------------+-------------+--------------+
| GROSS PROFIT | | | (6,096) | (93,834) | |
| | | | | | |
+----------------------------------+--------+------+--------------+-------------+--------------+
| Administrative expenses - | | | (237,232) | (724,672) | (1,431,528) |
| recurring | | | | | |
+----------------------------------+--------+------+--------------+-------------+--------------+
| Administrative expenses - | | | - | - | (5,105,193) |
| impairment of subsidiary | | | | | |
+----------------------------------+--------+------+--------------+-------------+--------------+
| Administrative expenses - | | | - | - | - |
| exceptional costs on Admission | | | | | |
+----------------------------------+--------+------+--------------+-------------+--------------+
| | | | ------- | ------- | ------- |
+----------------------------------+--------+------+--------------+-------------+--------------+
| Total administrative expenses | | | (237,232) | (724,672) | (6,536,721) |
+----------------------------------+--------+------+--------------+-------------+--------------+
| | | | ------- | ------- | ------- |
+----------------------------------+--------+------+--------------+-------------+--------------+
| OPERATING LOSS | 2 | | (243,328) | (818,506) | (6, 536,721) |
+----------------------------------+--------+------+--------------+-------------+--------------+
| | | | | | |
+----------------------------------+--------+------+--------------+-------------+--------------+
| Financial income | | | - | 79,174 | 123,978 |
+----------------------------------+--------+------+--------------+-------------+--------------+
| Financial expenses | | | (26) | (82,408) | (187,520) |
+----------------------------------+--------+------+--------------+-------------+--------------+
| | | | ------- | ------- | ------- |
+----------------------------------+--------+------+--------------+-------------+--------------+
| LOSS ON ORDINARY ACTIVITIES | | | (243,354) | (821,740) | (6,600,263) |
| BEFORE TAXATION | | | | | |
+----------------------------------+--------+------+--------------+-------------+--------------+
| Tax on loss on ordinary | | | - | - | - |
| activities | | | | | |
+----------------------------------+--------+------+--------------+-------------+--------------+
| | | | ------- | ------- | ------- |
+----------------------------------+--------+------+--------------+-------------+--------------+
| LOSS ON ORDINARY ACTIVITIES | | | (243,354) | (821,740) | (6,600,263) |
| AFTER TAXATION | | | | | |
+----------------------------------+--------+------+--------------+-------------+--------------+
| | | | ------ | ------ | ------ |
+----------------------------------+--------+------+--------------+-------------+--------------+
All amounts relate to continuing operations. The profit and loss account has
been prepared on the basis that all operations are continuing operations. There
were no recognised gains and losses for 2008 other than those reported in the
profit and loss account.
+----------------------------------+--------------+--------------+---------------+-------------+
| BASIC AND DILUTED LOSS PER SHARE | | 6 | 6 months | Year ended |
| | | months ended | ended | |
| | | 31 March | 31 March | 30 |
| | | 2009 | 2008 | September |
| | | | | 2008 |
+----------------------------------+--------------+--------------+---------------+-------------+
| Basic loss per share (GBP) | | GBP(0.013) | GBP(0.05) | GBP(0.39) |
+----------------------------------+--------------+--------------+---------------+-------------+
| | | ------ | ------ | ------ |
+----------------------------------+--------------+--------------+---------------+-------------+
| Loss attributable to ordinary | | 243,354 | 821,740 | 6,600,263 |
| shareholders (GBP) | | | | |
+----------------------------------+--------------+--------------+---------------+-------------+
| | | ------ | ------ | ------ |
+----------------------------------+--------------+--------------+---------------+-------------+
| Weighted average of ordinary | | 18,438,356 | 17,000,000 | 17,000,000 |
| shares in issue in year | | | | |
+----------------------------------+--------------+--------------+---------------+-------------+
| | | ------ | ------ | ------ |
+----------------------------------+--------------+--------------+---------------+-------------+
| Diluted loss per share (GBP) | | GBP(0.012) | GBP(0.05) | GBP(0.39) |
+----------------------------------+--------------+--------------+---------------+-------------+
| | | ------ | ------ | ------ |
+----------------------------------+--------------+--------------+---------------+-------------+
| | | 19,953,918 | 18,132,000 | 17,000,000 |
+----------------------------------+--------------+--------------+---------------+-------------+
UNAUDITED CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2009
+------------------------------------+--------+----+--------------+-------------+-------------+
| | Notes | | 6 | 6 months | Year ended |
| | | | months ended | ended | 30 |
| | | | 31 March | 31 March | September |
| | | | 2009 | 2008 | 2008 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | GBP | GBP | GBP |
+------------------------------------+--------+----+--------------+-------------+-------------+
| NON-CURRENT ASSETS | | | | | |
| | | | | | |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Investments in subsidiaries | | | - | - | - |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Goodwill | | | - | 4,979,371 | - |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Other intangible assets | | | 1,767,246 | 1,957,076 | 1,767,246 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Property, plant and equipment | | | 1,666 | 200,489 | 1,666 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | 1,768,912 | 7,136,936 | 1,768,912 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| CURRENT ASSETS | | | | | |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | | | |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Inventories | | | - | 50,955 | - |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Trade and other receivables | 4 | | 289,862 | 202,776 | 92,859 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Cash deposits used as security for | | | - | 2,000,000 | - |
| loan notes | | | | | |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Cash and cash equivalents | | | 18,681 | 785,875 | 94,471 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | 308,543 | 3,039,606 | 187,330 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+-------------+
| TOTAL ASSETS | | | 2,077,455 | 10,176,542 | 1,956,242 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | ------ | ------ | ------ |
+------------------------------------+--------+----+--------------+-------------+-------------+
| EQUITY | | | | | |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | | | |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Share capital | 7 | | 363,362 | 213,362 | 213,362 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Share premium | 7 | | 9,336,106 | 9,186,106 | 9,186,106 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Treasury reserve | | | - | - | - |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Foreign exchange reserve | | | - | 790,078 | - |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Retained earnings | | | (9,232,842) | (3,277,304) | (8,989,488) |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+-------------+
| TOTAL EQUITY | | | 466,626 | 6,912,242 | 409,980 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | | | |
+------------------------------------+--------+----+--------------+-------------+-------------+
| CURRENT LIABILITIES | | | | | |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Trade and other payables | | | 352,549 | 130,612 | 287,982 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Provisions | 5 | | 130,818 | - | 130,818 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | 483,367 | 130,612 | 418,800 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| NON-CURRENT LIABILITIES | | | | | |
| | | | | | |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Deferred income tax liability | | | 594,986 | 594,986 | 594,986 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| Long term borrowings | 6 | | 532,476 | 2,538,702 | 532,476 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | 1,127,462 | 3,133,688 | 1,127,462 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+-------------+
| TOTAL LIABILITIES | | | 1,610,829 | 3,264,300 | 1,546,262 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+------------------------------------+--------+----+--------------+-------------+-------------+
| TOTAL EQUITY AND LIABILITIES | | | 2,077,455 | 10,176,542 | 1,956,242 |
+------------------------------------+--------+----+--------------+-------------+-------------+
| | | | ------ | ------ | ------ |
+------------------------------------+--------+----+--------------+-------------+-------------+
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTHS ENDED 31 MARCH 2009
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | | Share | Share | Foreign | Treasury | Retained | Total |
| | | Capital | Premium | Exchange | Reserve | Earnings | Equity |
| | | | | Reserve | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Six months ended 31 March | GBP | GBP | GBP | GBP | GBP | GBP |
| | 2009 | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Total equity at 1 October | 213,362 | 9,186,106 | - | - | (8,989,488) | 409,980 |
| | 2008 | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Loss for the 6 months | - | - | - | - | (243,354) | (243,354) |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Issue of share capital | 150,000 | 150,000 | | | - | 300,000 |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Equity dividends | - | - | - | - | - | - |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | | ---- | ------ | ----- | ---- | ------ | ---- |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Total equity at 31 March | 363,362 | 9,336,106 | - | - | (9,232,842) | 466,626 |
| | 2009 | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | | ---- | ----- | ----- | ---- | ----- | ---- |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Six months ended 31 March | | | | | | |
| | 2008 | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Total equity at 1 October | 213,362 | 9,186,106 | - | 3,688 | (2,215,318) | 7,187,838 |
| | 2007 | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Transfer to translation | - | - | 240,246 | - | (240,246) | - |
| | reserve | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | | ---- | ------ | ----- | ---- | ------ | ---- |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Restated total equity at | 213,362 | 9,186,106 | 240,246 | 3,688 | (2,455,564) | 7,187,838 |
| | 1 October 2007 | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Loss for the 6 months | - | - | - | - | (821,740) | (821,740) |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Equity dividends | - | - | - | - | - | - |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Employee share options | - | - | - | 56,250 | - | 56,250 |
| | charge for the period | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Net currency difference | - | - | 31,394 | - | - | 31,394 |
| | on translation of foreign | | | | | | |
| | operations | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Transfer of translation | - | - | 458,500 | - | - | 458,500 |
| | differences to income | | | | | | |
| | statement on impairment | | | | | | |
| | of subsidiary | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | | ---- | ------ | ----- | ---- | ------ | ---- |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Total equity at 31 March | 213,362 | 9,186,106 | 730,140 | 59,938 | (3,277,304) | 6,912,242 |
| | 2008 | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | | ---- | ----- | ----- | ---- | ----- | ---- |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Year ended 30 September | | | | | | |
| | 2008 | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Total equity at 1 October | 213,362 | 9,186,106 | - | 3,688 | (2,215,318) | 7,187,838 |
| | 2007 | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Transfer to translation | - | - | 240,246 | - | (240,246) | - |
| | reserve | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Revaluation of long-term | - | - | - | - | 62,651 | 62,651 |
| | loan to amortised cost | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | | ---- | ------ | ----- | ---- | ------ | ---- |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Restated total equity at | 213,362 | 9,186,106 | 240,246 | 3,688 | (2,392,913) | 7,250,489 |
| | 1 October 2007 | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Loss for the year | - | - | - | - | (6,600,263) | (6,600,263) |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Equity dividends | - | - | - | - | - | - |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Employee share options | - | - | - | (3,688) | 3,688 | - |
| | charge for the period | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Net currency difference | - | - | 75,037 | - | - | 75,037 |
| | on translation of foreign | | | | | | |
| | operations | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Transfer of translation | - | - | (315,283) | - | - | (315,283) |
| | differences to income | | | | | | |
| | statement on impairment | | | | | | |
| | of subsidiary | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | | ---- | ------ | ----- | ---- | ------ | ---- |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | Total equity at 30 | 213,362 | 9,186,106 | - | - | (8,989,488) | 409,980 |
| | September 2008 | | | | | | |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
| | | ---- | ----- | ----- | ---- | ----- | ---- |
+-+---------------------------+---------+-----------+-----------+----------+-------------+--------------+
UNAUDITED CONSOLIDATED CASHFLOW STATEMENT
FOR THE 6 MONTHS ENDED 31 MARCH 2009
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | 6 months | 6 months | Year ended |
| | | | ended | ended | 30 |
| | | | 31 March | 31 March | September |
| | | | | 2008 | 2008 |
| | | | 2009 | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | GBP | GBP | GBP |
+----------------------------------+--------+------+------------+-------------+-------------+
| Loss on ordinary activities | | | (243,354) | (821,740) | (6,600,263) |
| before tax | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| Depreciation of property, plant | | | - | 5,150 | 7,006 |
| and equipment | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| Finance income | | | 26 | (79,174) | (123,978) |
+----------------------------------+--------+------+------------+-------------+-------------+
| Finance charge | | | - | 82,408 | 187,520 |
+----------------------------------+--------+------+------------+-------------+-------------+
| Share option charge | | | - | 56,250 | - |
+----------------------------------+--------+------+------------+-------------+-------------+
| Loss on impairment of subsidiary | | | - | - | 294,184 |
+----------------------------------+--------+------+------------+-------------+-------------+
| Impairment of goodwill | | | - | - | 4,660,675 |
+----------------------------------+--------+------+------------+-------------+-------------+
| Loss on disposal of tangible | | | - | - | 737 |
| assets | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| Amortisation of intangible | | | - | 65,246 | 130,464 |
| assets | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| Exchange difference and other | | | - | (1,772) | 38,316 |
| non-cash items | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| (Increase) / decrease in | | | - | 5,531 | 8,217 |
| inventories | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| (Increase) / decrease in | | | 2,997 | (8,894) | 83,254 |
| receivables | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| Increase / (decrease) in | | | 64,567 | (1,288,355) | (1,021,078) |
| payables | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| Increase / (decrease) in | | | - | - | - |
| provisions | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+----------------------------------+--------+------+------------+-------------+-------------+
| Cash used in operations | | | (175,764) | (1,985,350) | (2,334,946) |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| Interest paid | | | (26) | (81,777) | (131,095) |
+----------------------------------+--------+------+------------+-------------+-------------+
| Interest received | | | - | 80,904 | 123,978 |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+----------------------------------+--------+------+------------+-------------+-------------+
| Net cash used in operating | | | (175,790) | (1,986,223) | (2,342,063) |
| activities | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+----------------------------------+--------+------+------------+-------------+-------------+
| Cash flows from investing | | | | | |
| activities | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| Impairment of subsidiary, net of | | | - | - | (8,605) |
| cash | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| Purchases of property, plant and | | | - | (189,673) | (507,770) |
| equipment | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+----------------------------------+--------+------+------------+-------------+-------------+
| Net cash used in investing | | | - | (189,673) | (516,375) |
| activities | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+----------------------------------+--------+------+------------+-------------+-------------+
| Cash flows from financing | | | | | |
| activities | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| Repayment of borrowings | | | - | - | (2,000,000) |
+----------------------------------+--------+------+------------+-------------+-------------+
| Proceeds from issue of ordinary | 7 | | 100,000 | - | - |
| shares | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+----------------------------------+--------+------+------------+-------------+-------------+
| Net cash (repaid) / raised by | | | 100,000 | - | (2,000,000) |
| financing activities | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+----------------------------------+--------+------+------------+-------------+-------------+
| Net (decrease)/increase in cash | | | (75,790) | (2,175,896) | (4,858,438) |
| and cash equivalents | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| Cash and cash equivalents at | | | 94,471 | 4,953,040 | 4,953,040 |
| beginning of period | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| Exchange losses on cash and cash | | | - | 8,731 | (131) |
| equivalents | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | ------- | ------- | ------- |
+----------------------------------+--------+------+------------+-------------+-------------+
| Cash and cash equivalents and | | | 18,681 | 2,785,875 | 94,471 |
| cash deposits at end of the | | | | | |
| period | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | ------ | ------ | ------ |
+----------------------------------+--------+------+------------+-------------+-------------+
| | | | | | |
+----------------------------------+--------+------+------------+-------------+-------------+
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTHS ENDED 31 MARCH 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 Kurawood Plc to 30 September |
| | 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. |
| | Statutory accounts for the year ended 30th September 2008 have been delivered |
| | to the Registrar of Companies, they were audited. The audit report was not |
| | qualified but did contain an Emphasis of Matter paragraph regarding Going |
| | Concern. |
| | 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 constraints of finance raised by the issue of |
| | additional share capital in April 2009 (note 7). |
| | |
+-----+--------------------------------------------------------------------------------+
2. OPERATING LOSS
The operating loss is stated after charging:
+--+--+--------------------------------------------+-------------+------------+------------+
| | | | 6 months | 6 months | Year ended |
| | | | ended | ended | 30 |
| | | | 31 March | 31 March | September |
| | | | 2009 | 2008 | 2008 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | | GBP | GBP | GBP |
| | | | | | |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Net foreign exchange gains | 2,656 | 13,349 | 13,235 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Depreciation of tangible fixed assets: | - | 5,150 | 7,006 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Amortisation of intangible assets | - | - | 130,464 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Marketing expenses | 1,868 | 157,367 | 215,801 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Technical and legal expenses | 138,691 | 140,943 | 293,910 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Travel and accommodation expenses | 9,322 | 63,707 | 99,853 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | Exceptional items: | - | - | 5,105,193 |
+--+--+--------------------------------------------+-------------+------------+------------+
| | | | ------ | ------ | ------ |
+--+--+--------------------------------------------+-------------+------------+------------+
Exceptional items of GBP5,105,193 in the full year to 30 September 2008 relate
entirely to the impairment of the assets of PG Industries Limited related
goodwill and GBP130,818 for provisions on loans made by the Company to PG
Industries Limited after the year end.
3.SEGMENTAL REPORTING
The Group's primary reporting format for reporting segment information is
business segments and the segments are defined as UK and New Zealand as this
split coincides with a geographical origin split of activities No secondary
segment exists.
Following the decision to cease operations at the subsidiary, the Company had
operating activity to 24 December 2008 with subsequent activities arising only
in the British Isles. The Company's business is not cyclical or seasonal in
nature, thus there is no cyclical or seasonal distortion in these interim
statements
KURAWOOD PLC AND SUBSIDIARIES
NOTES TO THE FINANCAIL STATEMENTS (CONTINUED)
FOR SIX MONTHS ENDED 31 MARCH 2009
3 SEGMENTAL REPORTING (Continued)
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | 6 months ended 31 March 2009 | 6 months ended 31 March 2008 | Year ended 30 September 2008 |
+------------------------------+----------------------------------+------------------------------------+-----------------------------------------+
| | UK | New | Total | UK | New | Total | UK | New | Total |
| | | Zealand | | | Zealand | | | Zealand | |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Turnover | - | - | - | - | - | - | - | - | - |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Cost of sales | - | (6,096) | (6,096) | - | (93,834) | (93,834) | - | - | - |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | ------ | ----- | ------ | ------- | ----- | ------- | ------ | ----- | ------ |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Gross margin | - | (6,096) | (6,096) | - | (93,834) | (93,834) | - | - | - |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | | | | | | | | | |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Administrative expenses | | | | | | | | | |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Recurring | (153,788) | (83,444) | (237,232) | (549,349) | (175,323) | (724,672) | (962,348) | (469,180) | (1,431,528) |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Exceptional | - | - | - | - | - | - | (130,821) | (4,974,372) | (5,105,193) |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | ------ | ----- | ------ | ------- | ----- | ------- | ------ | ----- | ------ |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Total administrative | (153,788) | (83,444) | (237,232) | (549,349) | (175,323) | (724,672) | (1,093,169) | (5,443,552) | (6,536,721) |
| expenses | | | | | | | | | |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | ------ | ----- | ------ | ------- | ----- | ------- | ------ | ----- | ------ |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Operating loss | (153,788) | (89,540) | (243,328) | (549,349) | (269,157) | (818,506) | (1,093,169) | (5,443,552) | (6,536,721) |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | ----- | ------ | | ----- | ------ | | ------ | ------ | |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Unallocated | | | | | | | | | |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Net finance expense | | | (26) | | | (3,234) | | | (63,542) |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | | | ------ | | | ------- | | | ------ |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Loss on ordinary activities | | | (243,354) | | | (821,740) | | | (6,600,263) |
| before tax | | | | | | | | | |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Taxation | | | - | | | - | | | - |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | | | ------ | | | ------- | | | ------ |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Loss on ordinary activities | | | (243,354) | | | (821,740) | | | (6,600,263) |
| after taxation | | | | | | | | | |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | | | ------ | | | ------ | | | ------ |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Depreciation and | - | - | - | - | - | - | 640 | 136,830 | 137,470 |
| amortisation | | | | | | | | | |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | ----- | ------ | ------ | ----- | ------ | ------ | ------ | ------ | ------ |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | | | | | | | | | |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Capital expenditure | - | - | - | - | 189,673 | 189,673 | - | 570,770 | 570,770 |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | ----- | ------ | ------ | ----- | ------ | ------ | ------ | ------ | ------ |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | | | | | | | | | |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Total Assets | 2,077,455 | - | 2,077,455 | 8,049,279 | 2,127,263 | 10,176,542 | 1,956,242 | - | 1,956,242 |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | ----- | ------ | ------ | ----- | ------ | ------ | ------ | ------ | ------ |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | | | | | | | | | |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| Total liabilities | 1,572,564 | 38,265 | 1,610,829 | 2,639,893 | 624,407 | 3,264,300 | 1,455,283 | 90,979 | 1,546,262 |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
| | ----- | ------ | ------ | ----- | ------ | ------ | ------ | ------ | ------ |
+------------------------------+-----------+----------+-----------+-----------+-----------+------------+-------------+-------------+-------------+
4.TRADE AND OTHER RECEIVABLES
Within trade and other receivables is included GBP200,000 receivable from Fox
Capital Limited in respect of the share subscription agreed on 23 February 2009
and received on 6 April 2009.
5.PROVISIONS
+------------------------------------------------+------------+------------+------------+------------+
| | | 6 months | 6 months | Year ended |
| | | ended | ended | 30 |
| | | 31 March | 31 March | September |
| | | 2009 | 2008 | 2008 |
+------------------------------------------------+------------+------------+------------+------------+
| | | GBP | GBP | GBP |
| | | | | |
+------------------------------------------------+------------+------------+------------+------------+
| Provisions | | 130,818 | - | 130,818 |
+------------------------------------------------+------------+------------+------------+------------+
| | | ------ | ------ | ------ |
+------------------------------------------------+------------+------------+------------+------------+
Provisions were made in respect of loans made by the Company to PG Industries
Limited (PGI) after the year end 30 September 2008. On 24 December 2008 the
company announced its intention to cease trading at PGI and to seek the most
pragmatic way to put it into liquidation. These investigations are continuing.
6.LONG TERM BORROWINGS
+---+---+----------------+----------+------------+--+-----+------------+------------+------------+
| | | | | | | | 6 months | 6 months | Year |
| | | | | | | | ended | ended | ended |
| | | | | | | | 31 March | 31 March | 30 |
| | | | | | | | 2009 | 2008 | September |
| | | | | | | | | | 2008 |
+---+---+----------------+----------+------------+--+-----+------------+------------+------------+
| | | | | | | | GBP | GBP | GBP |
| | | | | | | | | | |
+---+---+----------------+----------+------------+--+-----+------------+------------+------------+
| | | Bank | | | | | - | 2,000,000 | - |
| | | loans | | | | | | | |
+---+---+----------------+----------+------------+--+-----+------------+------------+------------+
| | | Other | | | | | 532,476 | 538,702 | 532,476 |
| | | loans | | | | | | | |
+---+---+----------------+----------+------------+--+-----+------------+------------+------------+
| | | | | | | | ------ | ------ | ------ |
+---+---+----------------+----------+------------+--+-----+------------+------------+------------+
| | | | | | | | 532,476 | 2,538,702 | 532,476 |
+---+---+----------------+----------+------------+--+-----+------------+------------+------------+
| | | | | | | | ------ | ------ | ------ |
+---+---+----------------+----------+------------+--+-----+------------+------------+------------+
On 22 September 2008, the Company agreed an unsecured loan facility of
GBP100,000 ("the Loan") with Fox Capital Limited ("Fox"), a company controlled
by a director of the Company, Roy Tilleard. The Loan carried an interest rate of
6% above the Bank of England Base Rate, and was available to be drawn down as
required by the Company. Following share holder approval at the EGM of 2 April
2009, and subject to fulfilment of certain conditions, the Loan was converted
into ordinary shares in the Company at a price of 2p per share (note 7).
Other loans in the current period represent monies owed to General Capital under
the terms of a Settlement Agreement that General Capital entered into with the
Company on or before 12 September 2007 to extinguish previously issued warrants
over the share capital of PGI.
Under the terms of the Settlement Agreement, the Company purchased the warrants
from General Capital for GBP600,000 that was satisfied by the issue of a loan
note by the Company to General Capital. The loan note is repayable on 12
September 2011 or at the Company's option on one month's notice. Interest is
payable on the loan note from the second anniversary of its issue at the rate of
6% per annum and the loan is unsecured.
7.SHARE CAPITAL AND RESERVES
+--+--+--------------------------------------------+------------+------------+------------+
| | | | 6 months | 6 months | Year |
| | | | ended | ended | ended |
| | | | 31 March | 31 March | 30 |
| | | | 2009 | 2008 | September |
| | | | | | 2008 |
+--+--+--------------------------------------------+------------+------------+------------+
| | | Share capital | GBP | | GBP |
+--+--+--------------------------------------------+------------+------------+------------+
| | | | | | |
+--+--+--------------------------------------------+------------+------------+------------+
| | | Authorised | | | |
+--+--+--------------------------------------------+------------+------------+------------+
| | | 41,136,880 ordinary shares of GBP0.01 each | 411,369 | 261,369 | 261,369 |
+--+--+--------------------------------------------+------------+------------+------------+
| | | 4,336,175 deferred shares of | 43,362 | 43,362 | 43,362 |
| | | GBP0.01 each | | | |
+--+--+--------------------------------------------+------------+------------+------------+
| | | | ------ | ------ | ------ |
+--+--+--------------------------------------------+------------+------------+------------+
| | | | 454,731 | 304,731 | 304,731 |
+--+--+--------------------------------------------+------------+------------+------------+
| | | | ------ | ------ | ------ |
+--+--+--------------------------------------------+------------+------------+------------+
| | | Allotted, called up and fully paid | | | |
+--+--+--------------------------------------------+------------+------------+------------+
| | | 32,000,000 ordinary shares of GBP0.01 each | 320,000 | 170,000 | 170,000 |
| | | | | | |
+--+--+--------------------------------------------+------------+------------+------------+
| | | 4,336,175 deferred shares of | 43,362 | 43,362 | 43,362 |
| | | GBP0.01 each | | | |
+--+--+--------------------------------------------+------------+------------+------------+
| | | | ------ | ------ | ------ |
+--+--+--------------------------------------------+------------+------------+------------+
| | | | 363,362 | 213,362 | 213,362 |
+--+--+--------------------------------------------+------------+------------+------------+
| | | | ------ | ------ | ------ |
+--+--+--------------------------------------------+------------+------------+------------+
Fully paid ordinary carry one vote per share and carry a right to
dividends. Deferred shares do not entitle the holder to any voting rights or a
right to any dividend. On the distribution of the assets of the Company upon
liquidation a deferred share shall only be entitled to share in the assets of
the Company after GBP1 million per share has been paid on each ordinary share.
Issue of shares
On 23 February 2009, the Company entered into a subscription with Fox Capital
Limited ('Fox Capital') to raise GBP200,000 net of expenses by the issue of
10,000,000 new Ordinary Shares at 2p per share. On the same date it entered into
an agreement with Fox Capital to convert a GBP100,000 convertible loan into
5,000,000 new Ordinary Shares at 2p per share and a warrant agreement under
which Fox Capital have been granted warrants over 4,000,000 new ordinary shares
exercisable at a price of 2p per share.
The Conversion of the Loan, the Subscription and the grant of the Fox Capital
Warrants were conditional on Shareholders' approval and the Waiver which were
passed on a poll by the Independent Shareholders at the General Meeting The
shares were paid for on 6 April 2009, but are reported within the period to 31
March to reflect the position of the Company following the agreement with Fox
Capital.
Share premium
The existing share premium arose on admission to AIM on 18 September 2007:
* new investors subscribed for 4,500,000 ordinary shares at GBP1 each resulting in
the creation of share premium of GBP4,455,000;
* 4,767,000 ordinary shares at GBP1 each were issued as consideration for the
Company's purchase of PGI resulting in the creation of share premium of
GBP4,719,330;
* holders of subordinated loans subscribed for 2,584,000 ordinary shares in
exchange for cancellation of subordinated loans totalling GBP660,000 resulting
in the creation of share premium of GBP634,160;
Directly attributable costs of GBP622,384 related to the Admission and finance
raising were charged to the share premium account resulting in a balance on the
account of GBP9,186,106 at 31 March 2008. A further GBP150,000 was added to the
share premium on 23 February 2009 when the Company entered into a subscription
agreement with Fox Capital.
Share warrants
Existing share warrants were issued on Admission to AIM to St Helen's Capital
Plc (the "St Helen's warrants") for work that was done during the flotation of
the Company in 2007 and the value attributed to these warrants was not
material.
The St Helen's warrants granted give the holders the right to subscribe for
340,000 ordinary shares exercisable for a period of 3 years following Admission
at a price of GBP1 per ordinary share. Management consider the fair value of the
warrants to be immaterial given the current Company share price.
Share warrants
Fox Warrants
Under the subscription agreement with Fox Capital, the Company entered into a
warrant agreement under which Fox Capital was granted warrants over 4,000,000
new ordinary shares exercisable at a price of 2p per share.
Other reserves
Other reserves include the foreign exchange reserve and the treasury reserve for
own shares in respect of share options granted. The foreign exchange reserve was
nil (30 September 2008: nil) The treasury reserve for own shares was nil (30
September 2008: nil).
8. RELATED PARTY TRANSACTIONS AND POST BALANCE SHEET EVENTS
The Loan, conversion of the loan and the subscription for shares and grant of
warrants to Fox Capital Limited set out above (in note 6), constitute, under AIM
Rule 13, a Related Party Transaction as Fox is a related party as defined in the
AIM Rules for Companies because two of its directors, Roy Tilleard and Justin
Martin, are directors of the Company. The remaining directors of the Company,
Peter McArthur and Peter Hammonds, who were deemed to be independent directors
for these purposes, considered, having consulted with the Company's nominated
adviser, that the terms of the Loan conversion and other arrangements were fair
and reasonable insofar as the Company's shareholders are concerned.
Following completion of the Conversion and the Subscription, Fox Capital holds
19,787,000 Ordinary Shares, representing 61.83 per cent. of the Enlarged Share
Capital. If, subsequently, Fox Capital were to exercise the Fox Capital Warrants
in full, assuming no further new Ordinary Shares were issued by the Company, it
would hold a maximum of 66.08 per cent. of the issued Share Capital of the
Company.
Since the Conversion and the Subscription will result in Fox Capital being
interested in 61.83 per cent. of the issued share capital (and up to a maximum
of 66.08 per cent. of the issued share capital on full exercise of the Fox
Capital Warrants), Fox Capital would, in the absence of a waiver from the
provisions of Rule 9 of the Takeover Code being granted by the Panel, be obliged
to make a general offer to all remaining shareholders of the Company.
The Panel has agreed, however, subject to approval on a poll by the Independent
Shareholders at the General Meeting, to waive this obligation. This approval was
received from the shareholders on 2 April 2009.
9.INTERIM REPORT
Copies of the Interim Report will be available from the Company's administrative
offices at Lorne House, Castletown, Isle of Man, IM9 1AZ and on the Company'
website at www.kurawood.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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