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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Marwyn Mat. | LSE:MMAT | London | Ordinary Share | JE00B2419D89 | ORD NPV |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 13.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMMMAT RNS Number : 9355P Marwyn Materials Limited 01 April 2009 1 April 2009 Marwyn Materials Limited (the 'Company') Publication of Annual Report, Notice of Annual General Meeting and Results since Incorporation The Directors of Marwyn Materials Limited are pleased to announce that the Annual Report and Accounts for the period ended 31 December 2008 and the Notice of the Annual General Meeting have today been posted to all shareholders. Copies of the Annual Report and Accounts will be available, free of charge, for a period of one month at the Company's registered office at Elizabeth House, 9 Castle Street, St Helier, Jersey, JE2 3RT. The Annual General Meeting will be held at Elizabeth House, 9 Castle Street, St Helier, Jersey, JE2 3RT on Tuesday, 28 April 2009 at 2 p.m. Details of the results of Marwyn Materials Limited for the period from incorporation to 31December 2008 are given below. Acquisition strategy Marwyn Materials Limited was incorporated in August 2007 and listed in June 2008 and it is intended that it will acquire and manage companies and businesses in the UK and international building materials industry, as described in the Company's AIM admission document dated 6 June 2008. The Directors' intention is to acquire controlling stakes in one or more quoted or unquoted profitable businesses or companies by way of a reverse takeover and to use these as a platform for further acquisitions. The Company will need to raise additional funds for these purposes. The Company may also acquire minority stakes in UK and international quoted companies with the initial funds raised. It is the Directors' belief that if this strategy is properly executed, shareholder value can be created through market consolidation. The Directors intend to take an active approach to investments made by the Company and to adhere to the following investment guidelines: Geographic focus: The Company intends to invest internationally with its focus being on the UK, European and US building materials markets. Sector focus: The Company intends to focus on the UK and international building materials industries. The Directors believe that opportunities exist to create value for Shareholders through a properly executed, acquisition-led strategy in these industries. Target companies: The Company will target companies which are profitable and which fit into the stated geographic and sector guidelines. Types of investment and control of investments: It is anticipated that the Company will acquire controlling stakes in one or more quoted or unlisted profitable businesses or companies and may also acquire minority stakes in UK and international quoted companies. This has continued to be the Company's strategy throughout the period to 31 December 2008. The existing AIM rules require that where an AIM listed company is an investing company, shareholder approval for its investing strategy must be sought on an annual basis. The Board therefore proposes to seek shareholder approval for the Company to continue its current acquisition strategy at the forthcoming Annual General Meeting on 28 April 2008. The Board unanimously recommends that shareholders approve the resolution. Results The loss before taxation for the period 31 December 2008 was GBP742,495. As at 31 December 2008, Marwyn Materials Limited's net cash balances amounted to GBP12.8 million. Dividends It is the Board's policy, as described in the Company's AIM admission document, that prior to making the first acquisition no dividends will be paid. Following the first acquisition, subject to availability of distributable reserves, dividends will be paid to shareholders when the Directors believe it is appropriate and prudent to do so. However, the main focus of the Company will be delivering capital growth for shareholders. Outlook The Group continues vigorously to pursue its stated acquisition strategy. The deteriorating economic situation has resulted in a significant decline in the market capitalisation of some companies in the building materials sector and the announcement of several disposal programmes. The short term trading outlook for building materials businesses remains difficult and we continue to review a number of opportunities to acquire attractive assets at a cyclical low point for the industry. We anticipate that 2009 will present numerous further acquisition opportunities in our target sector. Certain of these are already under review. Enquiries: Marwyn Materials Limited Peter Tom020 7389 6800 Simon Vivian 020 7389 6800 Cenkos Securities plc Nicholas Wells 020 7397 8920 CONSOLIDATED BALANCE SHEET As at 31 December 2008 +------------------------------------------------------------+--------+----------+------------+ | | Note | | 2008 | +------------------------------------------------------------+--------+----------+------------+ | | | | GBP | +------------------------------------------------------------+--------+----------+------------+ | Assets | | | | +------------------------------------------------------------+--------+----------+------------+ | | | | | +------------------------------------------------------------+--------+----------+------------+ | Receivables | | | 14,195 | +------------------------------------------------------------+--------+----------+------------+ | Cash and cash equivalents | 14 | | 12,806,100 | +------------------------------------------------------------+--------+----------+------------+ | Total current assets | | | 12,820,295 | +------------------------------------------------------------+--------+----------+------------+ | Total assets | | | 12,820,295 | +------------------------------------------------------------+--------+----------+------------+ | | | | | +------------------------------------------------------------+--------+----------+------------+ | Equity | | | | +------------------------------------------------------------+--------+----------+------------+ | Share capital | 16 | | 13,262,480 | +------------------------------------------------------------+--------+----------+------------+ | Equity-settled employee benefits reserve | 16 | | 680 | +------------------------------------------------------------+--------+----------+------------+ | Accumulated losses | 16 | | (742,495) | +------------------------------------------------------------+--------+----------+------------+ | Total equity attributable to the shareholders of the | | | 12,520,665 | | Company | | | | +------------------------------------------------------------+--------+----------+------------+ | Total equity | | | 12,520,665 | +------------------------------------------------------------+--------+----------+------------+ | | | | | +------------------------------------------------------------+--------+----------+------------+ | Non-current liabilities | | | | +------------------------------------------------------------+--------+----------+------------+ | Taxation | 11 | | 1,913 | +------------------------------------------------------------+--------+----------+------------+ | Total non-current liabilities | | | 1,913 | +------------------------------------------------------------+--------+----------+------------+ | | | | | +------------------------------------------------------------+--------+----------+------------+ | Current liabilities | | | | +------------------------------------------------------------+--------+----------+------------+ | Trade and other payables | 15 | | 297,717 | +------------------------------------------------------------+--------+----------+------------+ | Total current liabilities | | | 297,717 | +------------------------------------------------------------+--------+----------+------------+ | Total liabilities | | | 299,630 | +------------------------------------------------------------+--------+----------+------------+ | Total equity and liabilities | | | 12,820,295 | +------------------------------------------------------------+--------+----------+------------+ The Group and the Company financial statements were approved and authorised for issue by the Board of Directors on 31 March 2009 and signed on its behalf by: Peter Tom CBE Simon Vivian Chairman Chief Executive BALANCE SHEET As at 31 December 2008 +------------------------------------------------------------+--------+----------+------------+ | | Note | | 2008 | +------------------------------------------------------------+--------+----------+------------+ | | | | GBP | +------------------------------------------------------------+--------+----------+------------+ | Assets | | | | +------------------------------------------------------------+--------+----------+------------+ | | | | | +------------------------------------------------------------+--------+----------+------------+ | Investment in subsidiaries | 12 | | - | +------------------------------------------------------------+--------+----------+------------+ | Loan to group company | 13 | | 100,000 | +------------------------------------------------------------+--------+----------+------------+ | Total non-current assets | | | 100,000 | +------------------------------------------------------------+--------+----------+------------+ | | | | | +------------------------------------------------------------+--------+----------+------------+ | Receivables | | | 10,697 | +------------------------------------------------------------+--------+----------+------------+ | Cash and cash equivalents | 14 | | 12,759,709 | +------------------------------------------------------------+--------+----------+------------+ | Total current assets | | | 12,770,406 | +------------------------------------------------------------+--------+----------+------------+ | Total assets | | | 12,870,406 | +------------------------------------------------------------+--------+----------+------------+ | | | | | +------------------------------------------------------------+--------+----------+------------+ | Equity | | | | +------------------------------------------------------------+--------+----------+------------+ | Share capital | 16 | | 13,262,480 | +------------------------------------------------------------+--------+----------+------------+ | Equity-settled employee benefits reserve | 16 | | 680 | +------------------------------------------------------------+--------+----------+------------+ | Accumulated losses | 16 | | (753,181) | +------------------------------------------------------------+--------+----------+------------+ | Total equity attributable to the shareholders of the | | | 12,509,979 | | Company | | | | +------------------------------------------------------------+--------+----------+------------+ | | | | | +------------------------------------------------------------+--------+----------+------------+ | Liabilities | | | | +------------------------------------------------------------+--------+----------+------------+ | Trade and other payables | 15 | | 360,427 | +------------------------------------------------------------+--------+----------+------------+ | Total current liabilities | | | 360,427 | +------------------------------------------------------------+--------+----------+------------+ | Total liabilities | | | 360,427 | +------------------------------------------------------------+--------+----------+------------+ | Total equity and liabilities | | | 12,870,406 | +------------------------------------------------------------+--------+----------+------------+ CONSOLIDATED INCOME STATEMENT For the period from 15 August 2007 to 31 December 2008 +-------------------------------------------------------+---------+------------+-------------+ | | | | 2008 | +-------------------------------------------------------+---------+------------+-------------+ | | Note | | GBP | +-------------------------------------------------------+---------+------------+-------------+ | Interest income | 10 | | 249,716 | +-------------------------------------------------------+---------+------------+-------------+ | | | | | +-------------------------------------------------------+---------+------------+-------------+ | Employee expenses | 7 | | (116,764) | +-------------------------------------------------------+---------+------------+-------------+ | Professional and consultancy expenses | 8 | | (761,317) | +-------------------------------------------------------+---------+------------+-------------+ | Other expenses | 9 | | (112,217) | +-------------------------------------------------------+---------+------------+-------------+ | | | | (990,298) | +-------------------------------------------------------+---------+------------+-------------+ | | | | | +-------------------------------------------------------+---------+------------+-------------+ | Results from operating activities | | | (740,582) | +-------------------------------------------------------+---------+------------+-------------+ | | | | | +-------------------------------------------------------+---------+------------+-------------+ | Loss before income tax | | | (740,582) | +-------------------------------------------------------+---------+------------+-------------+ | | | | | +-------------------------------------------------------+---------+------------+-------------+ | Income tax expense | 11 | | (1,913) | +-------------------------------------------------------+---------+------------+-------------+ | Loss for the period | | | (742,495) | +-------------------------------------------------------+---------+------------+-------------+ | | | | | +-------------------------------------------------------+---------+------------+-------------+ | Attributable to: | | | | +-------------------------------------------------------+---------+------------+-------------+ | Equity holders of the Company | 16 | | (742,495) | +-------------------------------------------------------+---------+------------+-------------+ | Loss for the period | | | (742,495) | +-------------------------------------------------------+---------+------------+-------------+ | | | | | +-------------------------------------------------------+---------+------------+-------------+ | Earnings per share | | | | +-------------------------------------------------------+---------+------------+-------------+ | Basic and diluted loss per share | 18 | | (1.4p) | +-------------------------------------------------------+---------+------------+-------------+ All the Group's activities derive from continuing operations. INCOME STATEMENT For the period from 15 August 2007 to 31 December 2008 +-------------------------------------------------------+---------+------------+-------------+ | | | | 2008 | +-------------------------------------------------------+---------+------------+-------------+ | | Note | | GBP | +-------------------------------------------------------+---------+------------+-------------+ | Interest income | 10 | | 250,182 | +-------------------------------------------------------+---------+------------+-------------+ | | | | | +-------------------------------------------------------+---------+------------+-------------+ | Employee expenses | 7 | | (23,342) | +-------------------------------------------------------+---------+------------+-------------+ | Professional and consultancy expenses | 8 | | (912,587) | +-------------------------------------------------------+---------+------------+-------------+ | Other expenses | 9 | | (67,434) | +-------------------------------------------------------+---------+------------+-------------+ | | | | (1,003,363) | +-------------------------------------------------------+---------+------------+-------------+ | | | | | +-------------------------------------------------------+---------+------------+-------------+ | Results from operating activities | | | (753,181) | +-------------------------------------------------------+---------+------------+-------------+ | | | | | +-------------------------------------------------------+---------+------------+-------------+ | Loss before income tax | | | (753,181) | +-------------------------------------------------------+---------+------------+-------------+ | | | | | +-------------------------------------------------------+---------+------------+-------------+ | Income tax expense | 11 | | - | +-------------------------------------------------------+---------+------------+-------------+ | Loss for the period | | | (753,181) | +-------------------------------------------------------+---------+------------+-------------+ | | | | | +-------------------------------------------------------+---------+------------+-------------+ | Attributable to: | | | | +-------------------------------------------------------+---------+------------+-------------+ | Equity holders of the Company | 16 | | (753,181) | +-------------------------------------------------------+---------+------------+-------------+ | Loss for the period | | | (753,181) | +-------------------------------------------------------+---------+------------+-------------+ | | | | | +-------------------------------------------------------+---------+------------+-------------+ | Earnings per share | | | | +-------------------------------------------------------+---------+------------+-------------+ | Basic and diluted loss per share | 18 | | (1.4p) | +-------------------------------------------------------+---------+------------+-------------+ All the Company's activities derive from continuing operations. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the period from 15 August 2007 to 31 December 2008 +--------------------------------------+--------------+----------------+--------------+------------+ | | | | | | +--------------------------------------+--------------+----------------+--------------+------------+ | | | | | | +--------------------------------------+--------------+----------------+--------------+------------+ | | Share | Equity-settled | Accumulated | Total | | | capital | employee | losses | | | | | benefits | | | | | | reserve | | | +--------------------------------------+--------------+----------------+--------------+------------+ | | GBP | GBP | GBP | GBP | +--------------------------------------+--------------+----------------+--------------+------------+ | | | | | | +--------------------------------------+--------------+----------------+--------------+------------+ | Balance at 15 August 2007 | - | - | - | - | +--------------------------------------+--------------+----------------+--------------+------------+ | Loss for the period | - | - | (742,495) | (742,495) | +--------------------------------------+--------------+----------------+--------------+------------+ | Recognition of share-based payments | - | 680 | - | 680 | +--------------------------------------+--------------+----------------+--------------+------------+ | Issue of ordinary shares | 13,600,000 | - | - | 13,600,000 | +--------------------------------------+--------------+----------------+--------------+------------+ | Costs directly related to the issue | (337,520) | - | - | (337,520) | | of capital | | | | | +--------------------------------------+--------------+----------------+--------------+------------+ | Balance at 31 December 2008 | 13,262,480 | 680 | (742,495) | 12,520,665 | +--------------------------------------+--------------+----------------+--------------+------------+ For more detail of the Group's reserves, see Note 16. All the Group's activities derive from continuing operations. CONSOLIDATED STATEMENT OF CASH FLOWS For the period from 15 August 2007 to 31 December 2008 +----------------------------------------------+--------+---------------------+-------------+ | | | | 2008 | +----------------------------------------------+--------+---------------------+-------------+ | | | Note | GBP | +----------------------------------------------+--------+---------------------+-------------+ | | | | | +----------------------------------------------+--------+---------------------+-------------+ | Cash flows from operating activities: | | | | +----------------------------------------------+--------+---------------------+-------------+ | Interest received | | | 239,019 | +----------------------------------------------+--------+---------------------+-------------+ | Payments to suppliers and employees | | | (695,399) | +----------------------------------------------+--------+---------------------+-------------+ | Net cash generated by operating activities | | | (456,380) | +----------------------------------------------+--------+---------------------+-------------+ | | | | | +----------------------------------------------+--------+---------------------+-------------+ | Cash flows from financing activities: | | | | +----------------------------------------------+--------+---------------------+-------------+ | Proceeds from issue of share capital | | | 13,600,000 | +----------------------------------------------+--------+---------------------+-------------+ | Payment for share issue costs | | | (337,520) | +----------------------------------------------+--------+---------------------+-------------+ | Net cash from financing activities | | | 13,262,480 | +----------------------------------------------+--------+---------------------+-------------+ | | | | | +----------------------------------------------+--------+---------------------+-------------+ | Net increase in cash and cash equivalents | | | 12,806,100 | +----------------------------------------------+--------+---------------------+-------------+ | Cash and cash equivalents on 15 August 2007 | | | - | +----------------------------------------------+--------+---------------------+-------------+ | Cash and cash equivalents at 31 December | | 14 | 12,806,100 | | 2008 | | | | +----------------------------------------------+--------+---------------------+-------------+ NOTES TO THE FINANCIAL STATEMENTS For the period from 15 August 2007 to 31 December 2008 1. Reporting entity Marwyn Materials Limited (the "Company") is a company domiciled in Jersey. The address of the Company's registered office is Elizabeth House, 9 Castle Street, St Helier, Jersey, JE2 3RT. The Company was incorporated on 15 August 2007 as Gracechurch Street Capital Limited and changed its name to Marwyn Materials Limited on 4 June 2008. The financial statements of the Company as at and for the period ended 31 December 2008 comprise the Company and its subsidiaries (together referred to as the "Group" and individually as "Group entities"). The Group primarily is involved in the acquisition of a target investment. 2. Basis of preparation (a) Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs). The financial statements were authorised for issue by the Board of Directors on 31 March 2009. (b) Basis of measurement The financial statements have been prepared on the historical cost basis. (c) Functional and presentation currency These financial statements are presented in Sterling (GBP), which is the Company's functional currency. (d) Use of estimates and judgements The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. 3. Segment reporting Business segments The Company raised GBPGBP13.26m net of expenses through an issue of ordinary shares on its admission to AIM on 12 June 2008. Until such time as an acquisition is made, the Group's sole operation will remain the seeking of a suitable target whilst investing shareholders' funds with a focus on investment return balanced by liquidity and market risk. Geographical segments Marwyn Materials Limited is based in Jersey. The Group has established an operating company in the U.K. to help actively seek an acquisition. 4. Employee expenses +----------------------------------------------------+----------------+----+----------------+ | | 2008 | | 2008 | +----------------------------------------------------+----------------+----+----------------+ | | Company | | Group | +----------------------------------------------------+----------------+----+----------------+ | | GBP | | GBP | +----------------------------------------------------+----------------+----+----------------+ | Wages and salaries | - | | 79,663 | +----------------------------------------------------+----------------+----+----------------+ | Equity-settled share-based payments | 680 | | 680 | +----------------------------------------------------+----------------+----+----------------+ | Compulsory social security contributions | - | | 13,759 | +----------------------------------------------------+----------------+----+----------------+ | Non-executive Directors' fees | 22,662 | | 22,662 | +----------------------------------------------------+----------------+----+----------------+ | | 23,342 | | 116,764 | +----------------------------------------------------+----------------+----+----------------+ For details of equity-settled share based payments see Note 19. 5. Professional and consultancy expenses +----------------------------------------------------+----------------+---+----------------+ | | 2008 | | 2008 | +----------------------------------------------------+----------------+---+----------------+ | | Company | | Group | +----------------------------------------------------+----------------+---+----------------+ | | GBP | | GBP | +----------------------------------------------------+----------------+---+----------------+ | Professional fees | 293,796 | | 295,018 | +----------------------------------------------------+----------------+---+----------------+ | Consultancy fees | 466,299 | | 466,299 | +----------------------------------------------------+----------------+---+----------------+ | Consultancy fees paid to Marwyn Materials UK | 144,492 | | - | | Limited | | | | +----------------------------------------------------+----------------+---+----------------+ | | 904,587 | | 761,317 | +----------------------------------------------------+----------------+---+----------------+ 6. Other expenses +----------------------------------------------------+----------------+---+----------------+ | | 2008 | | 2008 | +----------------------------------------------------+----------------+---+----------------+ | | Company | | Group | +----------------------------------------------------+----------------+---+----------------+ | | GBP | | GBP | +----------------------------------------------------+----------------+---+----------------+ | Rent | 8,000 | | 37,250 | +----------------------------------------------------+----------------+---+----------------+ | Legal fees | 26,550 | | 26,550 | +----------------------------------------------------+----------------+---+----------------+ | Sundry expenses | 40,884 | | 48,417 | +----------------------------------------------------+----------------+---+----------------+ | | 75,434 | | 112,217 | +----------------------------------------------------+----------------+---+----------------+ Marwyn Materials UK Limited has in place an operating lease for office accommodation with Marwyn Partners Limited until June 2011. Payments made under operating leases were GBP29,250 during the period. Non-cancellable operating lease rentals are as follows: +----------------------------------------------------+----------------+---+----------------+ | | 2008 | | 2008 | +----------------------------------------------------+----------------+---+----------------+ | | Company | | Group | +----------------------------------------------------+----------------+---+----------------+ | | GBP | | GBP | +----------------------------------------------------+----------------+---+----------------+ | Less than one year | - | | 60,000 | +----------------------------------------------------+----------------+---+----------------+ | Between one and five year | - | | 85,000 | +----------------------------------------------------+----------------+---+----------------+ | More than five years | - | | - | +----------------------------------------------------+----------------+---+----------------+ | | - | | 145,000 | +----------------------------------------------------+----------------+---+----------------+ 7. Interest income +----------------------------------------------------+----------------+---+----------------+ | | 2008 | | 2008 | +----------------------------------------------------+----------------+---+----------------+ | | Company | | Group | +----------------------------------------------------+----------------+---+----------------+ | | GBP | | GBP | +----------------------------------------------------+----------------+---+----------------+ | Interest income on bank deposits | 249,716 | | 249,716 | +----------------------------------------------------+----------------+---+----------------+ | Interest on loan to Marwyn Materials UK Limited | 466 | | - | +----------------------------------------------------+----------------+---+----------------+ | | 250,182 | | 249,716 | +----------------------------------------------------+----------------+---+----------------+ 8. Income tax expense +----------------------------------------------------+----------------+---+----------------+ | | 2008 | | 2008 | +----------------------------------------------------+----------------+---+----------------+ | | Company | | Group | +----------------------------------------------------+----------------+---+----------------+ | | GBP | | GBP | +----------------------------------------------------+----------------+---+----------------+ | Current period tax expense | - | | 1,913 | +----------------------------------------------------+----------------+---+----------------+ | Income tax expense from continuing operations | - | | 1,913 | +----------------------------------------------------+----------------+---+----------------+ Reconciliation of effective tax rate: +--------------------------------------------------------+--------------+----+--------------+ | | 2008 | | 2008 | +--------------------------------------------------------+--------------+----+--------------+ | | Company | | Group | +--------------------------------------------------------+--------------+----+--------------+ | | GBP | | GBP | +--------------------------------------------------------+--------------+----+--------------+ | Loss for the period | (753,181) | | (740,582) | +--------------------------------------------------------+--------------+----+--------------+ | Income tax at the Company's domestic rate of 0% | - | | - | +--------------------------------------------------------+--------------+----+--------------+ | Effect of tax rates in foreign jurisdictions* | - | | 1,913 | +--------------------------------------------------------+--------------+----+--------------+ | Income tax expense recognised | - | | 1,913 | +--------------------------------------------------------+--------------+----+--------------+ *The parent company is resident in Jersey and has a zero percent tax rate. The Group has a subsidiary operation in the U.K. which pays tax at a higher rate of 20% on taxable profits of GBP9,566 in the period. 9. Investment in subsidiaries Company: +----------------------------------+-----------------+---------------+-----------+------------+ | | Principal | Country of | Voting | Cost | | | activity | incorporation | and | | | | | | ownership | | | | | | interest | | +----------------------------------+-----------------+---------------+-----------+------------+ | Marwyn Materials UK Limited* | Acquisition | UK | 100% | GBP1.00 | | | sourcing | | | | +----------------------------------+-----------------+---------------+-----------+------------+ | Marwyn Materials Investments | Issue of | Jersey | 100% | GBP0.02 | | Limited | incentive | | | | | | shares | | | | +----------------------------------+-----------------+---------------+-----------+------------+ *Marwyn Materials UK Limited is indirectly held by the Company via Marwyn Materials Investments Limited. 10. Loan to group company Company: +--------------------------------------------------------+---------------+----------------+ | | | 2008 | +--------------------------------------------------------+---------------+----------------+ | | | GBP | +--------------------------------------------------------+---------------+----------------+ | Marwyn Materials UK Limited | | 100,000 | +--------------------------------------------------------+---------------+----------------+ | | | 100,000 | +--------------------------------------------------------+---------------+----------------+ The loan is unsecured, pays interest at 12m LIBOR plus 150bps and is repayable on 1 December 2010. 11. Cash and cash equivalents +----------------------------------------------------+----------------+---+----------------+ | | 2008 | | 2008 | +----------------------------------------------------+----------------+---+----------------+ | | Company | | Group | +----------------------------------------------------+----------------+---+----------------+ | | GBP | | GBP | +----------------------------------------------------+----------------+---+----------------+ | Bank balances | 12,759,709 | | 12,806,100 | +----------------------------------------------------+----------------+---+----------------+ | Cash and cash equivalents in the statement of cash | 12,759,709 | | 12,806,100 | | flows | | | | +----------------------------------------------------+----------------+---+----------------+ The exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in note 20. 12. Trade and other payables +--------------------------------------------------------+---------------+---+--------------+ | | 2008 | | 2008 | +--------------------------------------------------------+---------------+---+--------------+ | | Company | | Group | +--------------------------------------------------------+---------------+---+--------------+ | | GBP | | GBP | +--------------------------------------------------------+---------------+---+--------------+ | Professional and consultancy fees | 288,468 | | 288,468 | +--------------------------------------------------------+---------------+---+--------------+ | Amount due to Marwyn Materials UK Limited | 68,459 | | - | +--------------------------------------------------------+---------------+---+--------------+ | Liability for Participation Shares | 3,500 | | 3,500 | +--------------------------------------------------------+---------------+---+--------------+ | Other creditors | - | | 5,749 | +--------------------------------------------------------+---------------+---+--------------+ | | 360,427 | | 297,717 | +--------------------------------------------------------+---------------+---+--------------+ 13. Capital and reserves Reconciliation of movement in capital and reserves Company: +---------------------------+----------------+----------------+--------------+----------------+ | | Share capital | Equity-settled | Accumulated | Total equity | | | | employee | losses | | | | | benefits | | | | | | reserve | | | +---------------------------+----------------+----------------+--------------+----------------+ | | GBP | GBP | GBP | GBP | +---------------------------+----------------+----------------+--------------+----------------+ | Loss for the period | - | - | (753,181) | (753,181) | +---------------------------+----------------+----------------+--------------+----------------+ | Issue of ordinary shares | 2 | - | - | 2 | | on incorporation | | | | | +---------------------------+----------------+----------------+--------------+----------------+ | Recognition of | - | 680 | - | 680 | | share-based payments | | | | | +---------------------------+----------------+----------------+--------------+----------------+ | Issue of ordinary shares | 13,599,998 | - | - | 13,599,998 | | during the period | | | | | +---------------------------+----------------+----------------+--------------+----------------+ | Costs directly related to | (337,520) | - | - | (337,520) | | the issue of capital | | | | | +---------------------------+----------------+----------------+--------------+----------------+ | Balance at 31 December | 13,262,480 | 680 | (753,181) | 12,509,979 | | 2008 | | | | | +---------------------------+----------------+----------------+--------------+----------------+ Group: +----------------------------+---------------+----------------+--------------+----------------+ | | Share capital | Equity-settled | Accumulated | Total equity | | | | employee | losses | | | | | benefits | | | | | | reserve | | | +----------------------------+---------------+----------------+--------------+----------------+ | | GBP | GBP | GBP | GBP | +----------------------------+---------------+----------------+--------------+----------------+ | Loss for the period | - | - | (742,495) | (742,495) | +----------------------------+---------------+----------------+--------------+----------------+ | Issue of ordinary shares | 2 | | - | 2 | | on incorporation | | | | | +----------------------------+---------------+----------------+--------------+----------------+ | Recognition of share-based | - | 680 | - | 680 | | payments | | | | | +----------------------------+---------------+----------------+--------------+----------------+ | Issue of ordinary shares | 13,599,998 | - | - | 13,599,998 | | during the period | | | | | +----------------------------+---------------+----------------+--------------+----------------+ | Costs directly related to | (337,520) | - | - | (337,520) | | the issue of capital | | | | | +----------------------------+---------------+----------------+--------------+----------------+ | Balance at 31 December | 13,262,480 | 680 | (742,495) | 12,520,665 | | 2008 | | | | | +----------------------------+---------------+----------------+--------------+----------------+ 14. Share capital Company and Group: +--------------------------------------------------------+---------------+----------------+ | | | Ordinary | | | | shares | +--------------------------------------------------------+---------------+----------------+ | | | 2008 | +--------------------------------------------------------+---------------+----------------+ | Issue of ordinary shares on incorporation | | 2 | +--------------------------------------------------------+---------------+----------------+ | Issue of ordinary shares on admission to AIM | | 135,999,998 | +--------------------------------------------------------+---------------+----------------+ | On issue at 31 December | | 136,000,000 | +--------------------------------------------------------+---------------+----------------+ The Company has no limit to the number of ordinary shares which may be issued. The ordinary shares have no par value. All issued shares are fully paid. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. 15. Earnings per share Group: Basic earnings per share The calculation of basic earnings per share at 31 December 2008 (1.4p loss) was based on the loss attributable to ordinary shareholders of GBP742,495 and a weighted average number of ordinary shares outstanding of 54.6m. Diluted earnings per share The calculation of diluted earnings per share at 31 December 2008 (1.4p loss) was based on the loss attributable to ordinary shareholders of GBP742,495 and the weighted average outstanding ordinary shares of 54.6m. The Participation Shares in issuance during the period are not included in the calculation of weighted average outstanding ordinary shares for the diluted earnings per share calculation as the effect is anti-dilutive. Company: Basic earnings per share The calculation of basic earnings per share at 31 December 2008 (1.4p loss) was based on the loss attributable to ordinary shareholders of GBP753,181 and a weighted average number of ordinary shares outstanding of 54.6m. Diluted earnings per share The calculation of diluted earnings per share at 31 December 2008 (1.4p loss) was based on the loss attributable to ordinary shareholders of GBP753,191 and the weighted average outstanding ordinary shares of 54.6m. The Participation Shares in issuance during the period are not included in the calculation of weighted average outstanding ordinary shares for the diluted earnings per share calculation as the effect is anti-dilutive. 16. Share-based payment arrangements Under share-based payment arrangements established by the Group to incentivise Directors, key employees and others providing similar services, Participation Shares were issued, via the Company's subsidiary, Marwyn Materials Investments Limited, to Directors and key employees ("Management Participation Shares") and Marwyn Management Partners LLP ("Marwyn"), a related party ("Marwyn Participation Shares"); together "the Participation Shares". On being offered, the Company may purchase the Participation Shares either for cash or for the issue of new Ordinary Shares at its discretion. The value of the Participation Shares is discussed below. The Participation Shares may only be sold on this basis if both the Growth and Vesting Conditions have been satisfied. If these conditions have not been satisfied the Participation Shares must be sold to the Company for a nominal amount. Details of the Participation Shares issued during and outstanding at the period end are shown below. None of the Participation Shares were forfeited, exercised or expired during the period. Growth Condition The Growth Condition is that the compound annual growth of the Company's equity value must be at least 12.5% per annum. The Growth Condition takes into account new shares issued, dividends and capital returned to Shareholders. Vesting Condition The Participation Shares are subject to a vesting period ending on 6 June 2011. If however, the Growth Condition is not met on 6 June 2011, it will be extended to 6 June 2013, or if earlier, when the Growth Condition is met. The vesting period will also end on the sale or change of control of the Company. Value Subject to the provisions detailed above, the Management Participation Shares and Marwyn Participation Shares can each be sold to the Company for an aggregate value equivalent to 10% of the increase in "Shareholder Value" in the Company. Shareholder Value is broadly defined as the increase in market capitalisation of all Ordinary Shares of the Company issued up to the date of sale, allowing for any dividends and other capital movements. Management Participation Shares Under a management incentive scheme, 10,000 Management Participation Shares have been created and Directors and key employees have been allotted and purchased a number of those shares, as shown in the table below. The following table shows the Management Participation Shares issued to employees: +--------------------------------+------------------+------------+---------------+---------------+ | Issued to: | Participation in | Issue | Number of | Nominal | | | increase in | price | Participation | value of | | | "Shareholder | | shares | Participation | | | Value" | | | shares | +--------------------------------+------------------+------------+---------------+---------------+ | Peter Tom | 4% | GBP0.50 | 2,000 | GBP1,000 | +--------------------------------+------------------+------------+---------------+---------------+ | Simon Vivian | 4% | GBP0.50 | 2,000 | GBP1,000 | +--------------------------------+------------------+------------+---------------+---------------+ | Ian Peters | 2% | GBP0.50 | 1,000 | GBP500 | +--------------------------------+------------------+------------+---------------+---------------+ | | | | 5,000 | GBP2,500 | +--------------------------------+------------------+------------+---------------+---------------+ Marwyn Participation Shares The Group has entered into a performance participation agreement with Marwyn Management Partners LLP ("Marwyn") under which Marwyn has agreed to assist the Company in meeting its business strategy. In exchange, the Group has issued Participation Shares to Marwyn, a related party, as shown in the table below: +--------------------------------+------------------+----------+---------------+---------------+ | Issued to: | Participation in | Issue | Number of | Nominal | | | increase in | price | Participation | value of | | | "Shareholder | | shares | Participation | | | Value" | | | shares | +--------------------------------+------------------+----------+---------------+---------------+ | Marwyn Management Partners LLP | 10% | GBP0.10 | 10,000 | GBP1,000 | +--------------------------------+------------------+----------+---------------+---------------+ Valuation of Participation Shares When the Participation Shares were issued, the Company was an unlisted shell-company and had not entered into any transactions up to that date other than the issue of 2 Ordinary Shares for GBP2. The fair value estimation placed on the Participation Shares took into account the lack of trading history of the Company and the absence of any deals or transactions to date. The total amount paid for the Participation Shares, being the nominal value of GBP3,500, was considered to be the best estimation of the fair value. In the current period, GBP680 has been recognised in total as an expense in the income statement in respect of Participation Shares. 17. Financial instruments Significant accounting policies Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 3 to the financial statements. Categories of financial instruments Carrying amount of financial assets: +----------------------------------------------------+---+---------------+---+----------------+ | | | 2008 | | 2008 | +----------------------------------------------------+---+---------------+---+----------------+ | | | GBP | | GBP | +----------------------------------------------------+---+---------------+---+----------------+ | | | Company | | Group | +----------------------------------------------------+---+---------------+---+----------------+ | Loan and receivables (including cash and cash | | 12,870,406 | | 12,820,295 | | equivalents) | | | | | +----------------------------------------------------+---+---------------+---+----------------+ | | | 12,870,406 | | 12,820,295 | +----------------------------------------------------+---+---------------+---+----------------+ Carrying amount of financial liabilities: +---------------------------------------------+----------+---------------+---+----------------+ | | | 2008 | | 2008 | +---------------------------------------------+----------+---------------+---+----------------+ | | | Company | | Group | +---------------------------------------------+----------+---------------+---+----------------+ | | | GBP | | GBP | +---------------------------------------------+----------+---------------+---+----------------+ | Amortised cost | | 360,427 | | 299,630 | +---------------------------------------------+----------+---------------+---+----------------+ | | | 360,427 | | 299,630 | +---------------------------------------------+----------+---------------+---+----------------+ Credit risk Exposure to credit risk The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was: +--------------------------------------------+----------+---------------+----+---------------+ | | | 2008 | | 2008 | +--------------------------------------------+----------+---------------+----+---------------+ | | | Company | | Group | +--------------------------------------------+----------+---------------+----+---------------+ | | | GBP | | GBP | +--------------------------------------------+----------+---------------+----+---------------+ | Cash and cash equivalents | | 12,759,709 | | 12,806,100 | +--------------------------------------------+----------+---------------+----+---------------+ | Loans and receivables | | 110,697 | | 14,195 | +--------------------------------------------+----------+---------------+----+---------------+ | | | 12,870,406 | | 12,820,295 | +--------------------------------------------+----------+---------------+----+---------------+ Impairment losses There was no impairment on receivables during the period and there are no overdue or impaired receivables at the period end. Liquidity risk The following are the contractual maturities of financial liabilities and excluding the impact of netting agreements: Company: +--------------------------------+--------------+---------------+--------------+--------------+ | | Carrying | Contractual | 6 months | | +--------------------------------+--------------+---------------+--------------+--------------+ | | amount | cash flows | or less | 2-5 years | +--------------------------------+--------------+---------------+--------------+--------------+ | Accruals | 360,427 | 360,427 | 360,427 | - | +--------------------------------+--------------+---------------+--------------+--------------+ | | 360,427 | 360,427 | 360,427 | - | +--------------------------------+--------------+---------------+--------------+--------------+ Group: +--------------------------------+--------------+---------------+--------------+--------------+ | | Carrying | Contractual | 6 months | | +--------------------------------+--------------+---------------+--------------+--------------+ | | amount | cash flows | or less | 2-5 years | +--------------------------------+--------------+---------------+--------------+--------------+ | Accruals | 299,630 | 299,630 | 297,717 | 1,913 | +--------------------------------+--------------+---------------+--------------+--------------+ | | 299,630 | 299,630 | 297,717 | 1,913 | +--------------------------------+--------------+---------------+--------------+--------------+ Currency risk Exposure to currency risk All of the Group's transactions and balances are in Sterling and therefore the Group has no exposure to currency risk. Interest rate risk Profile At the reporting date the interest rate profile of interest-bearing financial instruments was: +--------------------------------+--------------------------+--------------+----+--------------+ | | | Carrying | | Carrying | | | | amount | | amount | +--------------------------------+--------------------------+--------------+----+--------------+ | | | Company | | Group | +--------------------------------+--------------------------+--------------+----+--------------+ | | | GBP | | GBP | +--------------------------------+--------------------------+--------------+----+--------------+ | Fixed rate instruments | | | | | +--------------------------------+--------------------------+--------------+----+--------------+ | Financial assets (time | | 12,677,207 | | 12,677,207 | | deposits) | | | | | +--------------------------------+--------------------------+--------------+----+--------------+ | | | 12,677,207 | | 12,677,207 | +--------------------------------+--------------------------+--------------+----+--------------+ | | | | | | +--------------------------------+--------------------------+--------------+----+--------------+ | Variable rate instruments | | | | | +--------------------------------+--------------------------+--------------+----+--------------+ | Financial assets | | 82,502 | | 128,893 | +--------------------------------+--------------------------+--------------+----+--------------+ | | | 82,502 | | 128,893 | +--------------------------------+--------------------------+--------------+----+--------------+ All financial assets and liabilities, other than those shown in the table above are non-interest bearing. Fair value sensitivity analysis for fixed rate instruments The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore a change in interest rates at the reporting date would not affect profit or loss. Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss for 12 months on interest-bearing instruments by the amounts shown below. This analysis assumes that all other variables remain constant. +--------------------------------+--------------+---------------+--------------+--------------+ | | Profit or loss and equity | Profit or loss and equity | +--------------------------------+------------------------------+-----------------------------+ | | Company | Company | Group | Group | +--------------------------------+--------------+---------------+--------------+--------------+ | | 100 bp | 100 bp | 100 bp | 100 bp | | | increase | decrease | increase | decrease | +--------------------------------+--------------+---------------+--------------+--------------+ | | GBP | GBP | GBP | GBP | +--------------------------------+--------------+---------------+--------------+--------------+ | Time deposits | 127,597 | (127,597) | 128,061 | (128,061) | +--------------------------------+--------------+---------------+--------------+--------------+ Fair values Fair values versus carrying amounts The fair values of financial assets and liabilities, together with the carrying amounts shown in the balance sheet, are as follows: +--------------------------------+--------------+---------------+--------------+--------------+ | | Carrying | Fair | Carrying | Fair | | | amount | value | amount | value | +--------------------------------+--------------+---------------+--------------+--------------+ | | Company | Company | Group | Group | +--------------------------------+--------------+---------------+--------------+--------------+ | | GBP | GBP | GBP | GBP | +--------------------------------+--------------+---------------+--------------+--------------+ | Loans and receivables | 110,697 | 102,940 | 14,195 | 14,195 | +--------------------------------+--------------+---------------+--------------+--------------+ | Cash and cash equivalents | 12,759,709 | 12,759,709 | 12,806,100 | 12,806,100 | +--------------------------------+--------------+---------------+--------------+--------------+ | Payables | (356,927) | (356,927) | (296,132) | (296,132) | +--------------------------------+--------------+---------------+--------------+--------------+ | | 12,513,479 | 12,505,722 | 12,524,163 | 12,524,163 | +--------------------------------+--------------+---------------+--------------+--------------+ The carrying value of receivables, cash and payables are a reasonable approximation of fair value due to their short-term maturity. For details of the Participation Shares issued, excluded from the above table, see Note 19. Interest rates used for determining fair value The interest rate used to discount the redemption cash flow of the loan to the subsidiary is calculated by adding a credit spread to the yield on a UK government bond maturing at 2 years post the reporting date; being the closest date to the loan repayment date. The subsidiary has received no quotes for commercial loans and therefore has estimated a relevant credit spread based on market knowledge. +--------------------------------------+--------+---------------+--------------+--------------+ | | | Yield on | Credit | Discount | | | | Government | spread | rate | | | | security | | | +--------------------------------------+--------+---------------+--------------+--------------+ | Loan to Marwyn Materials UK Limited | | 1.3% | 3% | 4.3% | +--------------------------------------+--------+---------------+--------------+--------------+ 18. Related parties Parent and ultimate controlling party The Company is listed on AIM and as such there is no controlling party. Marwyn Investment Management LLP is the investment manager to the Marwyn Neptune Fund LP which has a significant shareholding in the Company. James Corsellis and David Williams are partners in Marwyn Investment Management LLP, and are directors of various Marwyn group companies and Marwyn Materials Limited. The following Marwyn companies are therefore deemed to be related parties of the Group. Marwyn Partners Limited was paid GBPGBP25,000 (excluding VAT) in respect of office accommodation and Marwyn Capital LLP was paid GBPGBP100,000 in respect of corporate finance and administrative services. At the balance sheet date Marwyn Partners Limited was owed an amount of GBP20,000 in respect of services supplied during the period. At the balance sheet date the Marwyn Neptune Fund LP held 50,010,000 ordinary shares in Marwyn Materials Limited. Marwyn Management Partners LLP held Marwyn Participation Shares in the Group, details of which are disclosed in Note 19. Transactions with directors As well as Management Participation Share disclosed in Note 19, the Group also made the following payments to Directors or companies connected with Directors: +--------------------------------------------------------+------------------+---------------+ | | Payments for | Amounts owed | | | services during | at period end | | | the period | | +--------------------------------------------------------+------------------+---------------+ | | GBP | GBP | +--------------------------------------------------------+------------------+---------------+ | Consultancy fees | 97,531 | - | +--------------------------------------------------------+------------------+---------------+ | Director salary payments | 50,000 | 10,000 | +--------------------------------------------------------+------------------+---------------+ | Non-executive fees | 22,662 | 4,166 | +--------------------------------------------------------+------------------+---------------+ | | 170,193 | 14,166 | +--------------------------------------------------------+------------------+---------------+ Directors' shareholdings The following Directors held the indicated number of shares in the Company as at the period end: +--------------------------------------------------------------------------+---------------+ | Director: | Shares held | | | at 31 | | | December 2008 | +--------------------------------------------------------------------------+---------------+ | | | +--------------------------------------------------------------------------+---------------+ | Peter Tom CBE | 22,350,000 | +--------------------------------------------------------------------------+---------------+ | Simon Vivian | 2,500,000 | +--------------------------------------------------------------------------+---------------+ | David Williams | 11,000,000 | +--------------------------------------------------------------------------+---------------+ | James Corsellis | 5,500,000 | +--------------------------------------------------------------------------+---------------+ | David Warr | 2,500,000 | +--------------------------------------------------------------------------+---------------+ This information is provided by RNS The company news service from the London Stock Exchange END FR SSMFDFSUSEEL
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