Interim Results - six months ended 30 June 2009

 

TIDMMOLE 
 
RNS Number : 7923Z 
Molectra Group Ltd 
29 September 2009 
 

+-------------------------------------+-------------------------------------+ 
| For Immediate Release               |                  29  September 2009 | 
+-------------------------------------+-------------------------------------+ 
 
 
 
 
Molectra Group Limited (the "Company") 
 
 
Unaudited interim results for the six months ended 30 June 2009 
 
 
Molectra Group Limited (AIM:MOLE) today reports its interim results for the six 
months ended 30 June 2009. 
 
 
Financial results 
 
 
+--------------------+--------------------------+----------------------------+ 
| Net assets:        | GBP3,443,763             | 2008: GBP12,833,702        | 
+--------------------+--------------------------+----------------------------+ 
| Loss for the       | GBP856,684               | 2008: GBP1,465,372         | 
| period:            |                          |                            | 
+--------------------+--------------------------+----------------------------+ 
 
 
 
 
Paul Gazzard, Chief Executive Officer commented: "Commercial development in 2009 
has been as difficult as last year, with only minor revenues generated. These 
difficulties have continued post the period end, and to minimise costs, the size 
of the workforce in the Brisbane plant has regrettably been reduced. 
 
 
A wide ranging and thorough strategic review of the Company's options for the 
future is being conducted by management and the Company's advisers. The results 
of this review will be announced as soon as practicable." 
 
 
 
 
For further information please contact: 
 
 
+-------------------------------------+-------------------------------------+ 
| Molectra Group Ltd                  |                                     | 
+-------------------------------------+-------------------------------------+ 
| Paul Gazzard                        |                      01725 510 383  | 
+-------------------------------------+-------------------------------------+ 
| Rodger Sargent                      |                       020 7355 7660 | 
|                                     |                                     | 
+-------------------------------------+-------------------------------------+ 
| Arbuthnot Securities Limited        |                                     | 
+-------------------------------------+-------------------------------------+ 
| Antonio Bossi                       |                       020 7012 2000 | 
+-------------------------------------+-------------------------------------+ 
 
 
 
 
CHIEF EXECUTIVE'S STATEMENT 
 
 
These unaudited interim accounts for Molectra Group Limited ("Molectra") cover 
the six months to 30 June 2009. 
 
 
 
 
Financial performance 
 
 
As at 30 June 2009, the Company had net assets of GBP3,443,763 (2008: 
GBP12,833,702). The loss for the period was GBP856,684 (2008: GBP1,465,372). The 
reduced loss was due to lower corporate activity compared to the previous period 
and therefore lower legal and due diligence costs. 
 
 
Corporate activity & operations 
 
 
As announced on 19 May 2009, Molectra's two active VAP contracts are now 
non-performing. They generated minimal revenue, but incurred significant 
operating and capital costs. As a result, a number of other VAP opportunities 
have been vigorously pursued in the period, all of which followed a similar 
pattern. Potential clients have shown great interest in the technology and its 
green pedigree, but so far it has not been possible to finalise any deals, due 
to external commercial pressures faced by potential clients. 
 
 
Similarly, attempts to sell Molectra tyre recycling plants to third party 
licensees have proved extremely difficult. There has been significant interest 
in the technology from many different countries and sources but to date, given 
the global economic climate and the logistics of the industry, finalising deals 
has not proved possible. 
 
 
Board changes 
 
 
As previously announced, John Dobozy left the Board in January 2009 and Roger 
King and Roger Maddock left in July. 
 
 
Cash 
 
 
Retained cash and equivalents was GBP1,685,218 at 30 June (2008: GBP4,505,523). 
 
 
The future 
 
 
Due to the commercial difficulties faced, to minimise costs, the size of the 
workforce in the Brisbane has regrettably been reduced during the period. 
However the remaining workforce continues to work diligently on the still active 
VAP and turnkey plant opportunities. 
 
 
As a result of this, a wide ranging and thorough strategic review of the 
Company's options for the future is being conducted by management and the 
Company's advisers. The results of this review will be announced as soon as 
practicable 
 
 
Paul Gazzard 
Chief Executive 
Molectra Group Limited 
 
 
28 September 2009 
 
 
 
 
+---------+---------+---------+---------+-----------+-----+--------------+--+-------------+ 
| MOLECTRA GROUP LIMITED                |           |                    |  |             | 
+---------------------------------------+-----------+--------------------+--+-------------+ 
|         |         |         |         |           |                    |  |             | 
+---------+---------+---------+---------+-----------+--------------------+--+-------------+ 
| Consolidated Condensed Interim Income Statement (Unaudited)            |  |             | 
+------------------------------------------------------------------------+--+-------------+ 
| For the six months ended 30 June 2009 |                 |              |  |             | 
+---------------------------------------+-----------------+--------------+--+-------------+ 
|         |         |         |         |                 |  (unaudited) |  | (unaudited) | 
+---------+---------+---------+---------+-----------------+--------------+--+-------------+ 
|         |         |         |         |                 |  01 Jan 2009 |  |      01 Jan | 
|         |         |         |         |                 |              |  |        2008 | 
+---------+---------+---------+---------+-----------------+--------------+--+-------------+ 
|         |         |         |         |                 |   to 30 June |  |  to 30 June | 
|         |         |         |         |                 |         2009 |  |        2008 | 
+---------+---------+---------+---------+-----------------+--------------+--+-------------+ 
|         |         |         |         |                 |          GBP |  |         GBP | 
+---------+---------+---------+---------+-----------------+--------------+--+-------------+ 
|         |         |         |         |                 |              |  |             | 
+---------+---------+---------+---------+-----------------+--------------+--+-------------+ 
| Revenue           |         |         |                 |        6,770 |  |           - | 
+-------------------+---------+---------+-----------------+--------------+--+-------------+ 
|                   |         |         |                 |              |  |             | 
+-------------------+---------+---------+-----------------+--------------+--+-------------+ 
| Operating         |         |         |                 |              |  |             | 
| expenses          |         |         |                 |              |  |             | 
+-------------------+---------+---------+-----------------+--------------+--+-------------+ 
| Management fees                       |                 |            - |  |    (97,732) | 
+---------------------------------------+-----------------+--------------+--+-------------+ 
| Other operating expenses              |                 |    (663,201) |  | (1,212,478) | 
+---------------------------------------+-----------------+--------------+--+-------------+ 
| Amortisation of intangible assets     |                 |    (135,785) |  |   (231,438) | 
+---------------------------------------+-----------------+--------------+--+-------------+ 
| Depreciation of property, plant and   |                 |     (44,167) |  |    (35,247) | 
| equipment                             |                 |              |  |             | 
+---------------------------------------+-----------------+--------------+--+-------------+ 
| Share based payments expense          |                 |     (46,022) |  |           - | 
+---------------------------------------+-----------------+--------------+--+-------------+ 
|                                       |                 |              |  |             | 
+---------------------------------------+-----------------+--------------+--+-------------+ 
| Total operating expenses              |                 |    (889,175) |  | (1,576,895) | 
+---------------------------------------+-----------------+--------------+--+-------------+ 
|                                       |                 |              |  |             | 
+---------------------------------------+-----------------+--------------+--+-------------+ 
| Operating loss                        |                 |    (882,405) |  | (1,576,895) | 
+---------------------------------------+-----------------+--------------+--+-------------+ 
| Finance income                                          |              |  |             | 
+---------------------------------------------------------+--------------+--+-------------+ 
| Bank and deposit interest income                        |       18,965 |  |     157,305 | 
+---------------------------------------------------------+--------------+--+-------------+ 
|         |         |         |         |                 |              |  |             | 
+---------+---------+---------+---------+-----------------+--------------+--+-------------+ 
| Loss before taxation                                    |    (863,440) |  | (1,419,590) | 
+---------------------------------------------------------+--------------+--+-------------+ 
|         |         |         |         |                 |              |  |             | 
+---------+---------+---------+---------+-----------------+--------------+--+-------------+ 
| Taxation                                                |        6,756 |  |    (45,782) | 
+---------------------------------------------------------+--------------+--+-------------+ 
|                                                         |              |  |             | 
+---------------------------------------------------------+--------------+--+-------------+ 
| Net loss for the period                                 |    (856,684) |  | (1,465,372) | 
+---------------------------------------------------------+--------------+--+-------------+ 
|                                                         |              |  |             | 
+---------------------------------------------------------+--------------+--+-------------+ 
| Other comprehensive income:                             |              |  |             | 
+---------------------------------------------------------+--------------+--+-------------+ 
| Exchange differences on translating foreign operations  |     (18,138) |  |    (16,728) | 
+---------------------------------------------------------+--------------+--+-------------+ 
|                                                         |              |  |             | 
+---------------------------------------------------------+--------------+--+-------------+ 
| Total comprehensive loss for the period                 |    (874,822) |  | (1,482,100) | 
+---------------------------------------------------------+--------------+--+-------------+ 
|                                                         |              |  |             | 
+---------------------------------------------------------+--------------+--+-------------+ 
| Net loss attributable to:                               |              |  |             | 
+---------------------------------------------------------+--------------+--+-------------+ 
| Equity holders of the company                           |    (856,684) |  | (1,364,397) | 
+---------------------------------------------------------+--------------+--+-------------+ 
| Minority interest                                       |            - |  |   (100,975) | 
+---------------------------------------------------------+--------------+--+-------------+ 
|                                                         |    (856,684) |  | (1,465,372) | 
+---------------------------------------------------------+--------------+--+-------------+ 
| Basic and diluted loss per share (pence)                |       (0.46) |  |      (0.88) | 
+---------------------------------------------------------+--------------+--+-------------+ 
|                                                         |              |  |             | 
+---------------------------------------------------------+--------------+--+-------------+ 
| All transactions arise from continuing operations.      |              |  |             | 
+---------+---------+---------+---------+-----------+-----+--------------+--+-------------+ 
 
 
 
 
+----------+----------+----------+----------+-----------+---+----------+----+-------------+ 
| MOLECTRA GROUP LIMITED                    |               |          |    |             | 
+-------------------------------------------+---------------+----------+----+-------------+ 
|          |          |          |          |               |          |    |             | 
+----------+----------+----------+----------+---------------+----------+----+-------------+ 
| Consolidated Condensed Interim Balance Sheet (Unaudited)             |    |             | 
+----------------------------------------------------------------------+----+-------------+ 
| As at 30 June 2009                        |           |              |    |             | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
|          |          |          |          |           |  (unaudited) |    | (unaudited) | 
+----------+----------+----------+----------+-----------+--------------+----+-------------+ 
|          |          |          |          |           | 30 June 2009 |    |     30 June | 
|          |          |          |          |           |              |    |        2008 | 
+----------+----------+----------+----------+-----------+--------------+----+-------------+ 
|          |          |          |          |           |          GBP |    |         GBP | 
+----------+----------+----------+----------+-----------+--------------+----+-------------+ 
| Non-current assets                        |           |              |    |             | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
| Intangible assets   |          |          |           |    1,401,339 |    |   8,959,928 | 
+---------------------+----------+----------+-----------+--------------+----+-------------+ 
| Property, plant and |          |          |           |      756,098 |    |     723,664 | 
| equipment           |          |          |           |              |    |             | 
+---------------------+----------+----------+-----------+--------------+----+-------------+ 
|                                           |           |    2,157,437 |    |   9,683,592 | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
| Current assets                            |           |              |    |             | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
| Trade and other receivables               |           |       34,175 |    |      57,636 | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
| Cash and cash equivalents                 |           |    1,685,218 |    |   4,505,523 | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
|                                           |           |    1,719,393 |    |   4,563,159 | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
|                                           |           |              |    |             | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
| Total assets                              |           |    3,876,830 |    |  14,246,751 | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
| Current liabilities                       |           |              |    |             | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
| Trade and other payables                  |           |    (316,091) |    |   (198,288) | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
|                                           |           |    (316,091) |    |   (198,288) | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
| Non-current liabilities                   |           |              |    |             | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
| Deferred income tax liabilities           |           |    (116,976) |    | (1,214,761) | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
|                                           |           |              |    |             | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
| Net assets                                |           |    3,443,763 |    |  12,833,702 | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
|          |          |          |          |           |              |    |             | 
+----------+----------+----------+----------+-----------+--------------+----+-------------+ 
| Capital and reserves                                  |              |    |             | 
+-------------------------------------------------------+--------------+----+-------------+ 
| Share capital                             |           |   16,996,977 |    |  14,116,977 | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
| Translation reserve                       |           |     (51,840) |    |       1,509 | 
+-------------------------------------------+-----------+--------------+----+-------------+ 
| Share based payments reserve                          |       46,022 |    |           - | 
+-------------------------------------------------------+--------------+----+-------------+ 
| Retained earnings                                     | (13,547,396) |    | (2,144,052) | 
+-------------------------------------------------------+--------------+----+-------------+ 
|                                                       |    3,443,763 |    |  11,974,434 | 
+-------------------------------------------------------+--------------+----+-------------+ 
| Minority interest                                     |            - |    |     859,268 | 
+-------------------------------------------------------+--------------+----+-------------+ 
| Shareholders' fund                                    |    3,443,763 |    |  12,833,702 | 
+-------------------------------------------------------+--------------+----+-------------+ 
|                                                       |              |    |             | 
+-------------------------------------------------------+--------------+----+-------------+ 
| Net asset value per Ordinary share (pence)            |         1.99 |    |        8.27 | 
+-------------------------------------------------------+--------------+----+-------------+ 
|          |          |          |          |           |              |    |             | 
+----------+----------+----------+----------+-----------+---+----------+----+-------------+ 
 
 
These financial statements were approved by the Board of Directors and signed on 
28th September 2009. 
 
 
 
 
+---------+---------+---------+---------+-----------+---+-------------+----+-------------+ 
| MOLECTRA GROUP LIMITED                |           |                 |    |             | 
+---------------------------------------+-----------+-----------------+----+-------------+ 
|         |         |         |         |           |                 |    |             | 
+---------+---------+---------+---------+-----------+-----------------+----+-------------+ 
| Consolidated Condensed Interim Statement of Cash Flows (Unaudited)  |    |             | 
+---------------------------------------------------------------------+----+-------------+ 
| For the six months ended 30 June 2009 |               |             |    |             | 
+---------------------------------------+---------------+-------------+----+-------------+ 
|         |         |         |         |               | (unaudited) |    | (unaudited) | 
+---------+---------+---------+---------+---------------+-------------+----+-------------+ 
|         |         |         |         |               | 01 Jan 2009 |    | 01 Jan 2008 | 
+---------+---------+---------+---------+---------------+-------------+----+-------------+ 
|         |         |         |         |               |       to 30 |    |  to 30 June | 
|         |         |         |         |               |    June2009 |    |        2008 | 
+---------+---------+---------+---------+---------------+-------------+----+-------------+ 
|         |         |         |         |               |         GBP |    |         GBP | 
+---------+---------+---------+---------+---------------+-------------+----+-------------+ 
| Cash flow from operating activities   |               |             |    |             | 
+---------------------------------------+---------------+-------------+----+-------------+ 
|         |         |         |         |               |             |    |             | 
+---------+---------+---------+---------+---------------+-------------+----+-------------+ 
| Net loss for      |         |         |               |   (856,684) |    | (1,465,372) | 
| period            |         |         |               |             |    |             | 
+-------------------+---------+---------+---------------+-------------+----+-------------+ 
| Non-cash          |         |         |               |             |    |             | 
| movements:        |         |         |               |             |    |             | 
+-------------------+---------+---------+---------------+-------------+----+-------------+ 
| Amortisation      |         |         |               |     134,748 |    |     266,685 | 
+-------------------+---------+---------+---------------+-------------+----+-------------+ 
| Depreciation                          |               |      44,167 |    |           - | 
+---------------------------------------+---------------+-------------+----+-------------+ 
| Fixed asset impairment                |               |       1,038 |    |           - | 
+---------------------------------------+---------------+-------------+----+-------------+ 
| Share based payments expense          |               |      46,022 |    |           - | 
+---------------------------------------+---------------+-------------+----+-------------+ 
| Interest receivable                   |               |    (19,298) |    |           - | 
+---------------------------------------+---------------+-------------+----+-------------+ 
| Provision for legal claim             |               |    (15,000) |    |           - | 
+---------------------------------------+---------------+-------------+----+-------------+ 
| Decrease in deferred tax liability    |               |     (6,756) |    |      45,782 | 
+---------------------------------------+---------------+-------------+----+-------------+ 
| Translation movements                 |               |   (122,052) |    |           - | 
+---------------------------------------+---------------+-------------+----+-------------+ 
| Changes in working capital (excluding |               |             |    |             | 
| the                                   |               |             |    |             | 
+---------------------------------------+---------------+-------------+----+-------------+ 
| effects of acquisition and exchange   |               |             |    |             | 
| differences                           |               |             |    |             | 
+---------------------------------------+---------------+-------------+----+-------------+ 
| on consolidation):                    |               |             |    |             | 
+---------------------------------------+---------------+-------------+----+-------------+ 
| Other receivables                     |               |      20,390 |    |     149,299 | 
+---------------------------------------+---------------+-------------+----+-------------+ 
| Other payables                        |               |   (224,379) |    |   (352,328) | 
+---------------------------------------+---------------+-------------+----+-------------+ 
|         |         |         |         |               |             |    |             | 
+---------+---------+---------+---------+---------------+-------------+----+-------------+ 
| Net cash outflow from operating activities            |   (997,804) |    | (1,355,934) | 
+-------------------------------------------------------+-------------+----+-------------+ 
|         |         |         |         |               |             |    |             | 
+---------+---------+---------+---------+---------------+-------------+----+-------------+ 
| Cash flow from investing activities   |               |             |    |             | 
+---------------------------------------+---------------+-------------+----+-------------+ 
| Interest received                     |               |      24,227 |    |           - | 
+---------------------------------------+---------------+-------------+----+-------------+ 
| Purchase of property, plant and       |               |    (29,691) |    |   (170,513) | 
| equipment                             |               |             |    |             | 
+---------------------------------------+---------------+-------------+----+-------------+ 
|         |         |         |         |               |             |    |             | 
+---------+---------+---------+---------+---------------+-------------+----+-------------+ 
| Net cash outflow from investing activities            |     (5,464) |    |   (170,513) | 
+-------------------------------------------------------+-------------+----+-------------+ 
|         |         |         |         |               |             |    |             | 
+---------+---------+---------+---------+---------------+-------------+----+-------------+ 
| Cash flow from financing activities   |               |             |    |             | 
+---------------------------------------+---------------+-------------+----+-------------+ 
| Redemption of ordinary shares                         |   (300,000) |    |           - | 
+-------------------------------------------------------+-------------+----+-------------+ 
|         |         |         |         |               |             |    |             | 
+---------+---------+---------+---------+---------------+-------------+----+-------------+ 
| Net cash inflow from financing activities             |   (300,000) |    |           - | 
+-------------------------------------------------------+-------------+----+-------------+ 
|                                                       |             |    |             | 
+-------------------------------------------------------+-------------+----+-------------+ 
| Net decrease in cash and cash equivalents             | (1,303,268) |    | (1,526,447) | 
+-------------------------------------------------------+-------------+----+-------------+ 
|         |         |         |         |               |             |    |             | 
+---------+---------+---------+---------+---------------+-------------+----+-------------+ 
| Cash and cash equivalents at 01 January               |   2,988,486 |    |   6,031,970 | 
+-------------------------------------------------------+-------------+----+-------------+ 
|         |         |         |         |               |             |    |             | 
+---------+---------+---------+---------+---------------+-------------+----+-------------+ 
| Cash and cash equivalents at 30 June                  |   1,685,218 |    |   4,505,523 | 
+-------------------------------------------------------+-------------+----+-------------+ 
|         |         |         |         |               |             |    |             | 
+---------+---------+---------+---------+-----------+---+-------------+----+-------------+ 
 
 
MOLECTRA GROUP LIMITED 
 
 
Notes to the Condensed Interim Financial Statements (Unaudited) 
 
 
1.  Basis of preparation 
 
 
The accounting policies have been applied consistently throughout the group for 
the purposes of the preparation of the condensed consolidated interim report. 
These interim condensed consolidated financial statements are for the 6 months 
ended 30 June 2009. The group has elected not to apply IAS34, Interim Financial 
Reporting. The interim condensed consolidated financial statements do not 
include all of the information required for full annual financial statements, 
and should be read in conjunction with the consolidated financial statements of 
the group for the year ended 31 December 2008. The same accounting policies, 
presentation and methods of computation are followed in this interim condensed 
consolidated report as were applied in the group's annual financial statements 
for the year ended 31 December 2008. 
 
 
2.  Earnings per share 
 
 
The earnings per Ordinary share is based on the net loss for the period 
attributable to equity holders of GBP856,684 (30 June 2008: GBP1,364,397) and on 
188,225,000 (30 June 2008: 155,225,000) weighted average Ordinary shares. 
 
 
 
 
 
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