Final Results

    RNS Number : 1937I
  G.R. Holdings PLC
  14 November 2008
   


    G.R. (HOLDINGS) PLC

    PRELIMINARY ANNOUNCEMENT OF FINAL RESULTS
    FOR THE YEAR ENDED 30 JUNE 2008

    Chairman's Statement

    The pre-tax loss of the group on ordinary activities for the year ended 30 June 2008 was £193,792 (2007: £399,010 loss; previously
stated under UK GAAP: loss £186,625) the loss is stated after charging preference dividends of £92,083 (2007: £162,761). After taxation, the
loss attributable to members of the company is £234,749 against a loss £295,246 for the previous year. This year's turnover was £684,989
compared to £684,039 for the previous year.

    Morlands' turnover was the around same level as the previous year, whilst the profit for the year amounted to £68,746 compared to a loss
the previous year of £77,677.

    In January 2008, the group disposed of a property asset in London for a net consideration of £597,890; this resulted in a profit of
£538,977 against historical costs. This asset had previously been revalued in the accounts at £400,000 and under the new IFRS accounting
rules, only £197,891 has been credited to the consolidated income statement. 

    On 25 January 2008, the company redeemed and cancelled 1,550,108 10½% Second Cumulative Preference Shares of £1 each, amounting to
£1,550,108.

    During the year, Lichfield Land Company Limited, a joint venture company in which Mintbay Limited, a group subsidiary, has a 50%
interest, sold a small parcel of land. This sale resulted in our share of the profit being £20,405.

    We are still involved as limited partners in four partnerships in the United States of America. There were no sales during the year. Of
these remaining four partnerships included in these financial statements at a value of £237,020, one constitutes over 75% of the total
value. This single investment has been held since December 1987, and no serious offers for sale have been received to date. 

    At the year end, our stock increased by £20,769. Debtors have decreased by £30,872 whilst creditors have increased by £3,820. Net cash
at bank and in hand has decreased by £1,394,678 to £1,665,300, principally due to the redemption of the preference shares amounting to
£1,550,108.

    Overall, in view of the current economic climate, I am pessimistic regarding the trading results for the current year.

    Finally, I would like to thank my co-director and all the staff for their support and efforts during the year. 

    A.D. Stalbow
    Chairman

    14 November 2008







    G.R. (Holdings) plc
    Consolidated Income Statement
    for the year ended 30 June 2008

                                                       2008          2007
                                                          £             £
 Continuing operations                                                   
 Revenue                                            684,989       684,039
 Cost of sales                                    (371,904)     (445,456)
 Gross profit                                       313,085       238,583
                                                                         
 Distribution costs                                (36,177)      (29,971)
 Administrative expenses                          (673,753)     (522,266)
 Provision against property investments            (41,623)             -
 Loss on disposal of USA investments                      -      (49,953)
 Profit on disposal of UK investments and assets    218,900           301
                                                  (532,653)     (601,889)
                                                                         
 Loss from continuing activities                  (219,568)     (363,306)
                                                                         
 Financial income                                   119,031       128,123
 Financial costs                                   (93,255)     (163,827)
                                                     25,776      (35,704)
                                                                         
 Loss on before taxation                          (193,792)     (399,010)
 Income tax expenses                               (40,957)       103,764
                                                                         
 Loss for the year                                (234,749)     (295,246)
                                                                         
 Earnings per share from continuing operations       (1.5p)        (3.0p)
                                                                         




    G.R. (Holdings) plc

    Consolidated Balance Sheet
    as at 30 June 2008

    
                                                          2008           2007
                                                 £           £              £
 Assets                                                                      
 Non-current assets                                                          
 Property, plant and equipment                         135,874        537,494
 Investment properties                                 756,794        822,460
 Intangible assets                                           1              1
                                                       892,669      1,359,955
 Current assets                                                              
 Inventories                                96,824                     76,055
 Trade and other receivables               124,532                    155,404
 Cash and cash equivalents               1,665,300                  3,059,978
                                         1,886,656                  3,291,437
 Current liabilities                                                         
 Trade and other payables                  134,481                    126,709
                                                     1,752,175      3,164,728
 Total assets less current liabilities               2,644,844      4,524,683
                                                                             
 Non-current liabilities                                                     
 Obligations under hire purchase leases          -                      3,820
 Preference shares                               -                  1,550,108
 Deferred income tax liabilities            69,476                     25,380
                                                        69,476      1,579,308
                                                     2,575,368      2,945,375
                                                                             
 Shareholders* equity                                                        
 Issued share capital                                  658,405        658,405
 Capital redemption reserve                            425,000        425,000
 Share premium account                                 198,396        198,396
 Retained earnings                                   1,293,567      1,663,574
 Total shareholders* equity                          2,575,368      2,945,375
                                                                             



      G.R. (Holdings) plc



    TRANSITION TO IFRS

    These are the group's first consolidated financial statements prepared in accordance with IFRS.

    IFRS 1 permits companies adopting IFRS for the first time to take certain exemptions from the full requirements of IFRS in the
transition period. These consolidated financial statements have been prepared on the basis of taking the following exemptions:

    *     Business combination that took place prior to the date of transition have not been restated to comply with IFRS 3 "Business
Combinations"
    *     Cumulative translation differences that existed at the date of transition are set to nil
    *     Certain investments held at the opening balance sheet date have been held at cost rather than revalued to market value.

    The following reconciliations show the effect of the transition from UK GAAP to IFRS.

    Reconciliation of net income for the year ended 30 June 2007 

                                   UKGAAP      Effect of transition     Restated underIFRS    
                                                            to IFRS
                                         £                        £                       £   
 Continuing operations                                                                        
 Revenue                           677,044                    6,995                 684,039   
 Cost of sales                   (445,456)                        -               (445,456)   
 Gross profit                      231,588                    6,995                 238,583   
                                                                                              
 Distribution costs               (29,971)                        -                (29,971)   
 Administrative expenses         (512,896)                  (9,370)               (522,266)   
 Loss on disposal of USA           (3,556)                 (46,397)                (49,953)   
 investments
 Profit on disposal of UK          166,289                (165,988)                     301   
 investments and assets
                                 (380,134)                (221,755)               (601,889)   
                                                                                              
 Loss from continuing            (148,546)                (214,760)               (363,306)   
 activities
                                                                                              
 Financial income                  125,748                    2,375                 128,123   
 Financial costs                 (163,827)                        -               (163,827)   
                                  (38,079)                    2,375                (35,704)   
                                                                                              
 Loss on before taxation         (186,625)                (212,385)               (399,010)   
 Taxation                          103,764                        -                 103,764   
                                                                                              
 Loss for the year                (82,861)                (212,385)               (295,246)   






    G.R. (Holdings) plc

    Reconciliation of group equity at 30 June 2007 

                                   UKGAAP        Effect of transition to     Restated under IFRS     
                                                                    IFRS
                                         £                             £                         £   
 Assets                                                                                              
 Non-current assets                                                                                  
 Property, plant and equipment     537,494                             -                   537,494   
 Investment properties             846,912                      (24,452)                   822,460   
 Intangible assets                       1                             -                         1   
                                 1,384,407                      (24,452)                 1,359,955   
                                                                                                     
 Current assets                                                                                      
 Inventories                        76,055                             -                    76,055   
 Trade and other receivables       153,584                         1,820                   155,404   
 Cash and cash equivalents       3,030,554                        29,424                 3,059,978   
                                 3,260,193                        31,244                 3,291,437   
 Current liabilities                                                                                 
 Trade and other payables          119,917                         6,792                   126,709   
 Net current assets              3,140,276                        24,452                 3,164,728   
                                                                                                     
 Total assets less current       4,524,683                             -                 4,524,683   
 liabilities
                                                                                                     
 Non-current liabilities                                                                             
 Long term borrowings                3,820                             -                     3,820   
 Preference shares               1,550,108                             -                 1,550,108   
 Deferred income tax                     -                        25,380                    25,380   
 liabilities
                                 1,553,928                        25,380                 1,579,308   
                                                                                                     
                                 2,970,755                      (25,380)                 2,945,375   
                                                                                                     
 Shareholders equity                                                                                 
 Issued share capital              658,405                             -                   658,405   
 Capital redemption reserve        425,000                             -                   425,000   
 Revaluation reserve               843,141                     (843,141)                         -   
 Share premium account             198,396                             -                   198,396   
 Retained earnings                 845,813                       817,761                 1,663,574   
 Shareholders equity             2,970,755                      (25,380)                 2,945,375   





    G.R. (Holdings) plc

    Explanation of the effect of the transition to IFRS

    The transition to IFRS reporting has resulted in a number of changes in the reported financial statements, notes thereto and accounting
principles compares to those presented in previous years in accordance with UK GAAP.

    The following explanatory notes explain the differences between IFRS/IAS and UK GAAP, as referred to in the reconciliations below,
required in accordance with IFRS 1, "First-time adoption of IFRSs".

              a    Investment properties (IAS 40)
    Under UK GAAP, investment properties must be accounted for in accordance with SSAP 19. The properties are stated at open market value,
with changes taken direct to an investment revaluation reserve.
    IAS 40 offers two options - the "fair value method" and the "cost method". The company has adopted the fair value method. The properties
will be stated in the balance sheet on a similar basis to SSAP 19. However, IAS 40 requires changes in value to be taken to profit or loss.

              b    Deferred tax (IAS 12)
    Under UK GAAP, in accordance with FRS 19, no deferred tax was provided in respect of revaluation surpluses on investment properties. IAS
12, "Income taxes", requires deferred tax to be provided.

              c    Joint venture (IAS 31)
    Under UK GAAP, the joint venture was account for using the equity method of accounting basis. IAS 31, "Financial reporting of interests
in joint venture",  requires that the venturer should recognise in its financial statements the assets that it controls, the liabilities
that it incurs, the expenses that it incurs, and its share of the income from the sale of goods or services by the joint venture the joint
venture. 


    Explanation of adjustments to the cash flow statement

    Under UK GAAP, cash does not include short-term deposits and investments that cannot be withdrawn without notice and without incurring a
penalty. Such items are shown as short-term investments. Under IFRS, deposits with a maturity of three months or less at inception and which
are readily convertible to known amount of cash are included as cash and cash equivalents.  

    Under UK GAAP, cash flows are presented separately for operating activities, returns on investments and servicing of finance, taxation,
capital expenditure, and financial investments, acquisitions and disposals, management of liquid resources and financing activities. IFRS,
however, require only three categories of cash flow activity to be reported: operating, investing, and financing.
      
      

    G.R (Holdings) plc

    Notes:

    * The summary of results for the year ended 30 June 2008 does not constitute full financial statements within the meaning of Section 240
of the Companies Act 1985.
2.  These financial statements have been audited. 

    3.  The board has decided not to declare a final dividend, (2007: 1.0p) for the year 
     ending 30 June 2008 on the ordinary shares of the company..

    4.  The calculation of earnings per share is based on a loss of £193,792 (2007: 
     £399,010 loss) being the profit after taxation and after deducting preference 
     dividends, and on 13,168,100 ordinary shares of 5p each (2007: 13,168,100).

    5.  The Annual General Meeting will be held at 11.30am on 9 December 2008 at 
     Queripel House, 1 Duke of York Square, London SW3 4LY.

    6.  Copies of the 2008 Report and Accounts are being sent to shareholders in due 
     course. Further copies are available from the Company's registered office at 7 
     Queripel House, 1 Duke of York Square, London SW3 4LY and from the company 
     website www.grholdingsplc.co.uk. 

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