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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 |
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TIDMMMAT
RNS Number : 5085J
Marwyn Materials Limited
31 March 2010
31 March 2010
Marwyn Materials Limited (the 'Company')
Publication of Annual Report, Notice of Annual General Meeting and Results
The Directors of Marwyn Materials Limited are pleased to announce that the
Annual Report and Accounts for the period ended 31 December 2009 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 Monday, 26 April 2010 at 2 p.m. Details of the
results of Marwyn Materials Limited for the period from incorporation to 31
December 2009 are given below.
Acquisition strategy
Marwyn Materials Limited was established in June 2008 to acquire controlling
interests in building materials businesses, both listed and unquoted, in the UK,
Europe and US, with a view to creating shareholder value through market
consolidation. This continued to be the Group's strategy throughout the period
under review.
During the course of the year the economic situation continued to deteriorate
and the demand for building materials reflected this, with most companies
reporting sharply lower earnings. A number of potential opportunities in the UK
and in continental Europe have been examined, but the Board concluded that none
were available on satisfactory terms and consequently, as at the year-end, no
transactions had been concluded. The Board believes that vendor expectations
are becoming increasingly realistic and a number of interesting opportunities
continue to remain available; however, only transactions where substantial value
can be created for shareholders will be pursued.
The rules require that where an AIM-listed company is an investing company,
shareholder approval for its investment strategy must be sought on an annual
basis. The Board therefore proposes to seek approval for the Group to continue
its current acquisition strategy at the forthcoming annual general meeting on 26
April 2010. The Board unanimously recommends that shareholders approve the
appropriate resolution.
Results
The Group's loss after taxation for the year to 31 December 2009 was GBP829,056
(2008: GBP742,495) and was in line with our planned level of expenditure.
Costs incurred to date include GBP94,650 (2008: GBP0.49m) in relation to due
diligence carried out on acquisition targets by the Group's professional
advisers. We continue to monitor and control costs carefully, with as much
initial work as possible carried out by the management team, and we remain
rigorous in our approach to ensure that no unnecessary costs are incurred.
As at 31 December 2009, the Group had net cash balances totalling GBP11.9m
(2008: GBP12.8m).
Dividends
It is the Board's policy 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 Group will be on delivering capital growth for shareholders.
Outlook
The Group continues to pursue its stated acquisition strategy. We anticipate
that 2010 will present numerous further acquisition opportunities in our target
sector. Certain of these are already under review.
We believe that Marwyn Materials, with its strong and experienced management
team, is well placed to exploit attractive opportunities in the year ahead.
Enquiries:
Marwyn Materials Limited
Peter Tom 020 7389
6800
Simon Vivian 020 7389
6800
Cenkos Securities plc
Nicholas Wells 020 7397
8900
MARWYN MATERIALS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2009
+------------------------------------------------+------+-------------+----------+------------+
| | Note | 2009 | | 2008 |
+------------------------------------------------+------+-------------+----------+------------+
| | | GBP | | GBP |
+------------------------------------------------+------+-------------+----------+------------+
| | | | | |
| Assets | | | | |
+------------------------------------------------+------+-------------+----------+------------+
| Current assets | | | | |
+------------------------------------------------+------+-------------+----------+------------+
| Trade and other receivables | | 11,106 | | 14,195 |
+------------------------------------------------+------+-------------+----------+------------+
| Cash and cash equivalents | 14 | 11,865,789 | | 12,806,100 |
+------------------------------------------------+------+-------------+----------+------------+
| Total current assets | | 11,876,895 | | 12,820,295 |
+------------------------------------------------+------+-------------+----------+------------+
| Total assets | | 11,876,895 | | 12,820,295 |
+------------------------------------------------+------+-------------+----------+------------+
| | | | | |
+------------------------------------------------+------+-------------+----------+------------+
| Equity and liabilities | | | | |
+------------------------------------------------+------+-------------+----------+------------+
| Capital and reserves | | | | |
+------------------------------------------------+------+-------------+----------+------------+
| Stated capital | 16 | 13,262,480 | | 13,262,480 |
+------------------------------------------------+------+-------------+----------+------------+
| Equity-settled employee benefits reserve | 16 | 1,848 | | 680 |
+------------------------------------------------+------+-------------+----------+------------+
| Accumulated losses | 16 | (1,571,551) | | (742,495) |
+------------------------------------------------+------+-------------+----------+------------+
| Equity attributable to owners of the Company | | 11,692,777 | | 12,520,665 |
+------------------------------------------------+------+-------------+----------+------------+
| Total equity | | 11,692,777 | | 12,520,665 |
+------------------------------------------------+------+-------------+----------+------------+
| | | | | |
+------------------------------------------------+------+-------------+----------+------------+
| Non-current liabilities | | | | |
+------------------------------------------------+------+-------------+----------+------------+
| Taxation | 11 | 3,909 | | 1,913 |
+------------------------------------------------+------+-------------+----------+------------+
| Total non-current liabilities | | 3,909 | | 1,913 |
+------------------------------------------------+------+-------------+----------+------------+
| | | | | |
+------------------------------------------------+------+-------------+----------+------------+
| Current liabilities | | | | |
+------------------------------------------------+------+-------------+----------+------------+
| Trade and other payables | 15 | 180,209 | | 297,717 |
+------------------------------------------------+------+-------------+----------+------------+
| Total current liabilities | | 180,209 | | 297,717 |
+------------------------------------------------+------+-------------+----------+------------+
| Total liabilities | | 184,118 | | 299,630 |
+------------------------------------------------+------+-------------+----------+------------+
| Total equity and liabilities | | 11,876,895 | | 12,820,295 |
+------------------------------------------------+------+-------------+----------+------------+
The Group and the Company financial statements on pages 9 to 32 were approved
and authorised for issue by the Board of Directors on 22 March 2010 and signed
on its behalf by:
Peter Tom CBE
Simon Vivian
Chairman
Chief Executive
MARWYN MATERIALS LIMITED
STATEMENT OF FINANCIAL POSITION
As at 31 December 2009
+-----------------------------------+----------+-----+-------------+----------+------------+
| | Note | | 2009 | | 2008 |
+-----------------------------------+----------+-----+-------------+----------+------------+
| | | | GBP | | GBP |
+-----------------------------------+----------+-----+-------------+----------+------------+
| | | | | | |
| Assets | | | | | |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Non-current assets | | | | | |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Investment in subsidiaries | 12 | | - | | - |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Loan to Group company | 13 | | - | | 100,000 |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Total non-current assets | | | 100,000 | | 100,000 |
+-----------------------------------+----------+-----+-------------+----------+------------+
| | | | | | |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Current assets | | | | | |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Loan to Group company | 13 | | 100,000 | | - |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Trade and other receivables | | | 5,090 | | 10,697 |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Cash and cash equivalents | 14 | | 11,796,210 | | 12,759,709 |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Total current assets | | | 11,801,300 | | 12,770,406 |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Total assets | | | 11,901,300 | | 12,870,406 |
+-----------------------------------+----------+-----+-------------+----------+------------+
| | | | | | |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Equity and liabilities | | | | | |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Capital and reserves | | | | | |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Stated capital | 16 | | 13,262,480 | | 13,262,480 |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Equity-settled employee benefits | 16 | | 1,848 | | 680 |
| reserve | | | | | |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Accumulated losses | 16 | | (1,597,871) | | (753,181) |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Equity attributable to owners of | | | 11,666,457 | | 12,509,979 |
| the Company | | | | | |
+-----------------------------------+----------+-----+-------------+----------+------------+
| | | | | | |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Current liabilities | | | | | |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Trade and other payables | 15 | | 234,843 | | 360,427 |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Total current liabilities | | | 234,843 | | 360,427 |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Total liabilities | | | 234,843 | | 360,427 |
+-----------------------------------+----------+-----+-------------+----------+------------+
| Total equity and liabilities | | | 11,901,300 | | 12,870,406 |
+-----------------------------------+----------+-----+-------------+----------+------------+
MARWYN MATERIALS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year from 1 January to 31 December 2009
+---------------------------+-------------+------+------------+----------+------------+
| | | | 1 January | | 15 August |
| | | | 2009 | | 2007 to 31 |
| | | | to 31 | | December |
| | | | December | | 2008 |
| | | | 2009 | | |
+---------------------------+-------------+------+------------+----------+------------+
| | Note | | GBP | | GBP |
+---------------------------+-------------+------+------------+----------+------------+
| Interest income | 10 | | | | |
| | | | 101,767 | | 249,716 |
+---------------------------+-------------+------+------------+----------+------------+
| | | | | | |
+---------------------------+-------------+------+------------+----------+------------+
| Employee expenses | 7 | | (256,086) | | (116,764) |
+---------------------------+-------------+------+------------+----------+------------+
| Professional and | 8 | | (508,927) | | (761,317) |
| consultancy expenses | | | | | |
+---------------------------+-------------+------+------------+----------+------------+
| Other expenses | 9 | | (161,901) | | (112,217) |
+---------------------------+-------------+------+------------+----------+------------+
| | | | (926,914) | | (990,298) |
+---------------------------+-------------+------+------------+----------+------------+
| | | | | | |
+---------------------------+-------------+------+------------+----------+------------+
| Results from operating | | | (825,147) | | (740,582) |
| activities | | | | | |
+---------------------------+-------------+------+------------+----------+------------+
| | | | | | |
+---------------------------+-------------+------+------------+----------+------------+
| Loss before income tax | | | (825,147) | | (740,582) |
+---------------------------+-------------+------+------------+----------+------------+
| | | | | | |
+---------------------------+-------------+------+------------+----------+------------+
| Income tax expense | 11 | | (3,909) | | (1,913) |
+---------------------------+-------------+------+------------+----------+------------+
| Loss for the year/ period | | | (829,056) | | (742,495) |
+---------------------------+-------------+------+------------+----------+------------+
| | | | | | |
+---------------------------+-------------+------+------------+----------+------------+
| Other comprehensive | | | - | | - |
| income | | | | | |
+---------------------------+-------------+------+------------+----------+------------+
| Total comprehensive | | | (829,056) | | (742,495) |
| income | | | | | |
+---------------------------+-------------+------+------------+----------+------------+
| | | | | | |
+---------------------------+-------------+------+------------+----------+------------+
| Attributable to: | | | | | |
+---------------------------+-------------+------+------------+----------+------------+
| Owners of the Company | 16 | | (829,056) | | (742,495) |
+---------------------------+-------------+------+------------+----------+------------+
| | | | | | |
+---------------------------+-------------+------+------------+----------+------------+
| Earnings per share | | | | | |
+---------------------------+-------------+------+------------+----------+------------+
| Basic and diluted loss | 18 | | (0.6p) | | (1.4p) |
| per share | | | | | |
+---------------------------+-------------+------+------------+----------+------------+
All the Group's activities derive from continuing operations.
MARWYN MATERIALS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
For the year from 1 January to 31 December 2009
+------------------------------+------+------------+------------+----------+-------------+
| | | | 1 January | | 15 August |
| | | | 2009 to 31 | | 2007 to 31 |
| | | | December | | December |
| | | | 2009 | | 2008 |
+------------------------------+------+------------+------------+----------+-------------+
| | Note | | GBP | | GBP |
+------------------------------+------+------------+------------+----------+-------------+
| Interest income | 10 | | 107,358 | | 250,182 |
+------------------------------+------+------------+------------+----------+-------------+
| | | | | | |
+------------------------------+------+------------+------------+----------+-------------+
| Employee expenses | 7 | | (31,926) | | (23,342) |
+------------------------------+------+------------+------------+----------+-------------+
| Professional and consultancy | 8 | | (848,779) | | (904,587) |
| expenses | | | | | |
+------------------------------+------+------------+------------+----------+-------------+
| Other expenses | 9 | | (71,343) | | (75,434) |
+------------------------------+------+------------+------------+----------+-------------+
| | | | (952,048) | | (1,003,363) |
+------------------------------+------+------------+------------+----------+-------------+
| | | | | | |
+------------------------------+------+------------+------------+----------+-------------+
| Results from operating | | | (844,690) | | (753,181) |
| activities | | | | | |
+------------------------------+------+------------+------------+----------+-------------+
| | | | | | |
+------------------------------+------+------------+------------+----------+-------------+
| Loss before income tax | | | (844,690) | | (753,181) |
+------------------------------+------+------------+------------+----------+-------------+
| | | | | | |
+------------------------------+------+------------+------------+----------+-------------+
| Income tax expense | 11 | | - | | - |
+------------------------------+------+------------+------------+----------+-------------+
| Loss for the year/ period | | | (844,690) | | (753,181) |
+------------------------------+------+------------+------------+----------+-------------+
| | | | | | |
+------------------------------+------+------------+------------+----------+-------------+
| Other comprehensive income | | | - | | - |
+------------------------------+------+------------+------------+----------+-------------+
| Total comprehensive income | | | (844,690) | | (753,181) |
+------------------------------+------+------------+------------+----------+-------------+
| | | | | | |
+------------------------------+------+------------+------------+----------+-------------+
| Attributable to: | | | | | |
+------------------------------+------+------------+------------+----------+-------------+
| Owners of the Company | 16 | | (844,690) | | (753,181) |
+------------------------------+------+------------+------------+----------+-------------+
| | | | | | |
+------------------------------+------+------------+------------+----------+-------------+
| Earnings per share | | | | | |
+------------------------------+------+------------+------------+----------+-------------+
| Basic and diluted loss per | 18 | | (0.6p) | | (1.4p) |
| share | | | | | |
+------------------------------+------+------------+------------+----------+-------------+
All the Company's activities derive from continuing operations.
MARWYN MATERIALS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
+--------------------------------+------------+----------------+-------------+------------+
| | | | | |
+--------------------------------+------------+----------------+-------------+------------+
| | | | | |
+--------------------------------+------------+----------------+-------------+------------+
| | Stated | Equity-settled | Accumulated | Total |
| | capital | employee | losses | |
| | | benefits | | |
| | | reserve | | |
+--------------------------------+------------+----------------+-------------+------------+
| | GBP | GBP | GBP | GBP |
+--------------------------------+------------+----------------+-------------+------------+
| | | | | |
+--------------------------------+------------+----------------+-------------+------------+
| Balance at 15 August 2007 | - | - | - | - |
+--------------------------------+------------+----------------+-------------+------------+
| Total comprehensive income for | | | | |
| the period: | | | | |
+--------------------------------+------------+----------------+-------------+------------+
| Loss for the period | - | - | (742,495) | (742,495) |
+--------------------------------+------------+----------------+-------------+------------+
| Transactions with owners | | | | |
| recorded directly in equity: | | | | |
+--------------------------------+------------+----------------+-------------+------------+
| Recognition of share-based | - | 680 | - | 680 |
| payments | | | | |
+--------------------------------+------------+----------------+-------------+------------+
| Issue of ordinary shares | 13,600,000 | - | - | 13,600,000 |
+--------------------------------+------------+----------------+-------------+------------+
| Costs directly related to the | (337,520) | - | - | (337,520) |
| issue of capital | | | | |
+--------------------------------+------------+----------------+-------------+------------+
| Total transactions with owners | 13,262,480 | 680 | - | 13,263,160 |
+--------------------------------+------------+----------------+-------------+------------+
| Balance at 1 January 2009 | 13,262,480 | 680 | (742,495) | 12,520,665 |
+--------------------------------+------------+----------------+-------------+------------+
| Total comprehensive income for | | | | |
| the year: | | | | |
+--------------------------------+------------+----------------+-------------+------------+
| Loss for the year | - | - | (829,056) | (829,056) |
+--------------------------------+------------+----------------+-------------+------------+
| Transactions with owners | | | | |
| recorded directly in equity: | | | | |
+--------------------------------+------------+----------------+-------------+------------+
| Recognition of share-based | - | 1,168 | - | 1,168 |
| payments | | | | |
+--------------------------------+------------+----------------+-------------+------------+
| Issue of ordinary shares | - | - | - | - |
+--------------------------------+------------+----------------+-------------+------------+
| Costs directly related to the | - | - | - | - |
| issue of capital | | | | |
+--------------------------------+------------+----------------+-------------+------------+
| Total transactions with owners | - | 1,168 | - | 1,168 |
+--------------------------------+------------+----------------+-------------+------------+
| Balance at 31 December 2009 | 13,262,480 | 1,848 | (1,571,551) | 11,692,777 |
+--------------------------------+------------+----------------+-------------+------------+
For more detail of the Group's reserves, see Note 16.
All the Group's activities derive from continuing operations.
MARWYN MATERIALS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year from 1 January to 31 December 2009
+----------------------------------+----------+--------------+----------+-------------+
| | | 1 January | | 15 August |
| | | 2009 to 31 | | 2007 to 31 |
| | | December | | December |
| | | 2009 | | 2008 |
+----------------------------------+----------+--------------+----------+-------------+
| | Note | GBP | | GBP |
+----------------------------------+----------+--------------+----------+-------------+
| | | | | |
+----------------------------------+----------+--------------+----------+-------------+
| Cash flows from operating | | | | |
| activities: | | | | |
+----------------------------------+----------+--------------+----------+-------------+
| Interest received | | 111,355 | | 239,019 |
+----------------------------------+----------+--------------+----------+-------------+
| Tax paid | | (1,913) | | - |
+----------------------------------+----------+--------------+----------+-------------+
| Payments to suppliers and | | (1,049,753) | | (695,399) |
| employees | | | | |
+----------------------------------+----------+--------------+----------+-------------+
| Net cash generated by operating | | (940,311) | | (456,380) |
| activities | | | | |
+----------------------------------+----------+--------------+----------+-------------+
| | | | | |
+----------------------------------+----------+--------------+----------+-------------+
| Cash flows from financing | | | | |
| activities: | | | | |
+----------------------------------+----------+--------------+----------+-------------+
| Proceeds from issue of stated | | - | | 13,600,000 |
| capital | | | | |
+----------------------------------+----------+--------------+----------+-------------+
| Payment for share issue costs | | - | | (337,520) |
+----------------------------------+----------+--------------+----------+-------------+
| Net cash from financing | | - | | 13,262,480 |
| activities | | | | |
+----------------------------------+----------+--------------+----------+-------------+
| | | | | |
+----------------------------------+----------+--------------+----------+-------------+
| Net increase in cash and cash | | (940,311) | | 12,806,100 |
| equivalents | | | | |
+----------------------------------+----------+--------------+----------+-------------+
| Cash and cash equivalents on 1 | | 12,806,100 | | - |
| January 2009 | | | | |
+----------------------------------+----------+--------------+----------+-------------+
| Cash and cash equivalents at 31 | 14 | 11,865,789 | | 12,806,100 |
| December 2009 | | | | |
+----------------------------------+----------+--------------+----------+-------------+
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.
The financial statements of the Company as at and for the year ended 31 December
2009 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
The financial statements were authorised for issue by the Board of Directors on
22 March 2010.
These consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards. The consolidated financial
statements have been prepared under the historical cost convention.
(a) Segment reporting
An operating segment is a component of the Group that engages in business
activities from which it may earn revenues and incur expenses. The Directors
perform regular reviews of the operating results of the Group as a whole and
make decisions using financial information at the entity level. Accordingly, the
Board believes that the Group has only one operating segment.
(b) Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
(c) Critical accounting estimates and assumptions
The Group and Company makes estimates and assumptions concerning the future. The
resulting accounting estimates will, by definition, seldom equal the related
actual results.
(d) Functional and presentation currency
The Group and Company considers Sterling the currency that most faithfully
represents the economic effect of the underlying transactions, events and
conditions. Sterling is the currency in which the Group and Company measures its
performance and reports its results, as well as the currency in which it issues
shares to its investors.
2. Segment information
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. Both in
2009 and 2008, Marwyn Materials Limited generated all of the Group's revenue.
3. Employee expenses
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | Company | | Group | | Company | | Group |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | GBP | | GBP | | GBP | | GBP |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Wages and salaries | - | | 190,663 | | - | | 79,663 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Equity-settled share-based | 1,168 | | 1,168 | | 680 | | 680 |
| payments | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Compulsory social security | - | | 33,497 | | - | | 13,759 |
| contributions | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Non-executive Directors' fees | 30,758 | | 30,758 | | 22,662 | | 22,662 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | 31,926 | | 256,086 | | 23,342 | | 116,764 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
For details of equity-settled share based payments see note 19.
4. Professional and consultancy expenses
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | Company | | Group | | Company | | Group |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | GBP | | GBP | | GBP | | GBP |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Professional fees | 281,134 | | 287,150 | | 293,796 | | 295,018 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Consultancy fees | 221,776 | | 221,777 | | 466,299 | | 466,299 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Consultancy fees paid to Marwyn | 345,869 | | - | | 144,492 | | - |
| Materials UK Limited | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | 848,779 | | 508,927 | | 904,587 | | 761,317 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
5. Other expenses
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | Company | | Group | | Company | | Group |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | GBP | | GBP | | GBP | | GBP |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Rent | - | | 55,750 | | 8,000 | | 37,250 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Legal fees | 34,416 | | 34,416 | | 26,550 | | 26,550 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Sundry expenses | 36,927 | | 71,735 | | 40,884 | | 48,417 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | 71,343 | | 161,901 | | 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 GBP55,750 during the year (2008:GBP29,250).
Non-cancellable operating lease rentals are as follows:
+-----------------------------------+---------+----------+--------+----------+---------+----------+---------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+-----------------------------------+---------+----------+--------+----------+---------+----------+---------+
| | Company | | Group | | Company | | Group |
+-----------------------------------+---------+----------+--------+----------+---------+----------+---------+
| | GBP | | GBP | | GBP | | GBP |
+-----------------------------------+---------+----------+--------+----------+---------+----------+---------+
| Less than one year | - | | 60,000 | | - | | 60,000 |
+-----------------------------------+---------+----------+--------+----------+---------+----------+---------+
| Between one and five year | - | | 30,000 | | - | | 85,000 |
+-----------------------------------+---------+----------+--------+----------+---------+----------+---------+
| More than five years | - | | - | | - | | - |
+-----------------------------------+---------+----------+--------+----------+---------+----------+---------+
| | - | | 90,000 | | - | | 145,000 |
+-----------------------------------+---------+----------+--------+----------+---------+----------+---------+
6. Interest income
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | Company | | Group | | Company | | Group |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | GBP | | GBP | | GBP | | GBP |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Interest income on bank deposits | 101,767 | | 101,767 | | 249,716 | | 249,716 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Interest on loan to Marwyn | 5,591 | | - | | 466 | | - |
| Materials UK Limited | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | 107,358 | | 101,767 | | 250,182 | | 249,716 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
7. Income tax expense
+-----------------------------------+---------+----------+-------+----------+---------+----------+-------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+-----------------------------------+---------+----------+-------+----------+---------+----------+-------+
| | Company | | Group | | Company | | Group |
+-----------------------------------+---------+----------+-------+----------+---------+----------+-------+
| | GBP | | GBP | | GBP | | GBP |
+-----------------------------------+---------+----------+-------+----------+---------+----------+-------+
| Current period tax expense | - | | 3,909 | | - | | 1,913 |
+-----------------------------------+---------+----------+-------+----------+---------+----------+-------+
| | | | | | | | |
+-----------------------------------+---------+----------+-------+----------+---------+----------+-------+
| Income tax expense from | - | | 3,909 | | - | | 1,913 |
| continuing operations | | | | | | | |
+-----------------------------------+---------+----------+-------+----------+---------+----------+-------+
Reconciliation of effective tax rate:
+-----------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+-----------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | Company | | Group | | Company | | Group |
+-----------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | GBP | | GBP | | GBP | | GBP |
+-----------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Loss for the year/ period | (844,690) | | (825,147) | | (753,181) | | (740,582) |
+-----------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Income tax at the Company's | - | | - | | - | | - |
| domestic rate of 0% | | | | | | | |
+-----------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Effect of tax rates in foreign | - | | 3,909 | | - | | 1,913 |
| jurisdictions* | | | | | | | |
+-----------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Income tax expense recognised | - | | 3,909 | | - | | 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 GBP19,756 (2008: GBP9,566) in the year.
8. Investment in subsidiaries
Company:
+-----------------------------+--------------+---------------+-----------+---------+
| | Principal | Country | Voting | Cost |
| | activity | of | and | |
| | | incorporation | ownership | |
| | | | interest | |
+-----------------------------+--------------+---------------+-----------+---------+
| Marwyn Materials UK | Acquisition | UK | 100% | GBP1.00 |
| Limited* | sourcing | | | |
+-----------------------------+--------------+---------------+-----------+---------+
| Marwyn Materials | Issue of | Jersey | 100% | GBP0.02 |
| Investments Limited | incentive | | | |
| | shares | | | |
+-----------------------------+--------------+---------------+-----------+---------+
*Marwyn Materials UK Limited is indirectly held by the Company via Marwyn
Materials Investments Limited.
9. Loan to Group company
Company:
+-----------------------------------------------------+----------+----------+----------+
| | 2009 | | 2008 |
+-----------------------------------------------------+----------+----------+----------+
| | GBP | | GBP |
+-----------------------------------------------------+----------+----------+----------+
| Marwyn Materials UK Limited | 100,000 | | 100,000 |
+-----------------------------------------------------+----------+----------+----------+
| | 100,000 | | 100,000 |
+-----------------------------------------------------+----------+----------+----------+
The loan is unsecured, pays interest at 12m LIBOR plus 150bps and is repayable
on 1 December 2010.
10. Cash and cash equivalents
+-------------------------------+------------+----------+------------+----------+------------+----------+------------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+-------------------------------+------------+----------+------------+----------+------------+----------+------------+
| | Company | | Group | | Company | | Group |
+-------------------------------+------------+----------+------------+----------+------------+----------+------------+
| | GBP | | GBP | | GBP | | GBP |
+-------------------------------+------------+----------+------------+----------+------------+----------+------------+
| Bank balances | 11,796,210 | | 11,865,789 | | 12,759,709 | | 12,806,100 |
+-------------------------------+------------+----------+------------+----------+------------+----------+------------+
| Cash and cash equivalents in | 11,796,210 | | 11,865,789 | | 12,759,709 | | 12,806,100 |
| the statement of cash flows | | | | | | | |
+-------------------------------+------------+----------+------------+----------+------------+----------+------------+
The exposure to interest rate risk and a sensitivity analysis for financial
assets and liabilities are disclosed in note 20.
11. Trade and other payables
+-------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+-------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | Company | | Group | | Company | | Group |
+-------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | GBP | | GBP | | GBP | | GBP |
+-------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Amount due to Marwyn | 80,725 | | - | | 68,459 | | - |
| Materials UK Limited | | | | | | | |
+-------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Liability for Participation | 3,500 | | 3,500 | | 3,500 | | 3,500 |
| Shares | | | | | | | |
+-------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Other creditors | 150,618 | | 176,709 | | 288,468 | | 294,217 |
+-------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | 234,843 | | 180,209 | | 360,427 | | 297,717 |
+-------------------------------+---------+----------+---------+----------+---------+----------+---------+
12. Capital and reserves
Reconciliation of movement in capital and reserves
+----------------------+-------------+----------------+-------------+-------------+
| Company: | Stated | Equity-settled | Accumulated | Total |
| | capital | employee | losses | equity |
| | | benefits | | |
| | | reserve | | |
+----------------------+-------------+----------------+-------------+-------------+
| | GBP | GBP | GBP | GBP |
+----------------------+-------------+----------------+-------------+-------------+
| Opening balance | 13,262,480 | 680 | (753,181) | 12,509,979 |
+----------------------+-------------+----------------+-------------+-------------+
| Loss for the year | - | - | (844,690) | (844,690) |
+----------------------+-------------+----------------+-------------+-------------+
| Recognition of | - | 1,168 | - | 1,168 |
| share-based payments | | | | |
+----------------------+-------------+----------------+-------------+-------------+
| Balance at 31 | 13,262,480 | 1,848 | (1,597,871) | 11,666,457 |
| December 2009 | | | | |
+----------------------+-------------+----------------+-------------+-------------+
+-----------------------+------------+----------------+-------------+-------------+
| Group: | Stated | Equity-settled | Accumulated | Total |
| | capital | employee | losses | equity |
| | | benefits | | |
| | | reserve | | |
+-----------------------+------------+----------------+-------------+-------------+
| | GBP | GBP | GBP | GBP |
+-----------------------+------------+----------------+-------------+-------------+
| Opening balance | 13,262,480 | 680 | (742,495) | 12,520,665 |
+-----------------------+------------+----------------+-------------+-------------+
| Loss for the year | - | - | (829,056) | (829,056) |
+-----------------------+------------+----------------+-------------+-------------+
| Recognition of | - | 1,168 | - | 1,168 |
| share-based payments | | | | |
+-----------------------+------------+----------------+-------------+-------------+
| Balance at 31 | 13,262,480 | 1,848 | (1,571,551) | 11,692,777 |
| December 2009 | | | | |
+-----------------------+------------+----------------+-------------+-------------+
13. Stated capital
Company and Group:
+---------------------------------------------+-------------+----------+-------------+
| | Ordinary | | Ordinary |
| | shares | | shares |
+---------------------------------------------+-------------+----------+-------------+
| | 2009 | | 2008 |
+---------------------------------------------+-------------+----------+-------------+
| Issued ordinary shares brought forward | 136,000,000 | | 2 |
+---------------------------------------------+-------------+----------+-------------+
| Issue of ordinary shares on admission to | - | | 135,999,998 |
| AIM | | | |
+---------------------------------------------+-------------+----------+-------------+
| On issue at 31 December | 136,000,000 | | 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.
14. Earnings per share
Group:
Basic earnings per share
The calculation of basic earnings per share of 0.6p loss at 31 December 2009
(2008: 1.4p loss) was based on the loss attributable to ordinary shareholders of
GBP829,056 (2008: GBP742,495) and a weighted average number of ordinary shares
outstanding of 136m (2008: 54.6m).
Diluted earnings per share
The calculation of diluted earnings per share of 0.6p loss at 31 December 2009
(2008: 1.4p loss) was based on the loss attributable to ordinary shareholders of
GBP829,056 (2008: GBP742,495) and the weighted average outstanding ordinary
shares of 136m (2008: 54.6m). The Participation Shares in issuance during the
year 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 of 0.6p loss at 31 December 2009
(2008: 1.4p loss) was based on the loss attributable to ordinary shareholders of
GBP844,690 (2008: GBP753,181) and a weighted average number of ordinary shares
outstanding of 136m (2008: 54.6m).
Diluted earnings per share
The calculation of diluted earnings per share of 0.6p loss at 31 December 2009
(2008: 1.4p loss) was based on the loss attributable to ordinary shareholders of
GBP844,690 (2008: GBP753,181) and the weighted average outstanding ordinary
shares of 136m (2008: 54.6m). The Participation Shares in issuance during the
year 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.
15. 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 year
end are shown below. None of the Participation Shares were forfeited, exercised
or expired during the year.
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 | Issue | Number | Nominal |
| | in increase | price | of | value of |
| | in | | Participation | Participation |
| | "Shareholder | | shares | shares |
| | Value" | | | |
+--------------------------+---------------+---------+---------------+---------------+
| 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 | Issue | Number | Nominal |
| | in increase | price | of | value of |
| | in | | Participation | Participation |
| | "Shareholder | | shares | shares |
| | Value" | | | |
+---------------------------+---------------+---------+---------------+---------------+
| Marwyn Management | 10% | GBP0.10 | 10,000 | GBP1,000 |
| Partners LLP | | | | |
+---------------------------+---------------+---------+---------------+---------------+
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 year, GBP1,168 (2008: GBP680) has been recognised in total as an
expense in the Statement of Comprehensive Income in respect of Participation
Shares.
16. 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 2.5 to the
financial statements.
Categories of financial instruments
Carrying amount of financial assets:
+----------------------------+------------+----------+------------+-+------------+----------+------------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+----------------------------+------------+----------+------------+-+------------+----------+------------+
| | GBP | | GBP | | GBP | | GBP |
+----------------------------+------------+----------+------------+-+------------+----------+------------+
| | Company | | Group | | Company | | Group |
+----------------------------+------------+----------+------------+-+------------+----------+------------+
| Loan and receivables | 11,901,300 | | 11,876,895 | | 12,870,406 | | 12,820,295 |
| (including cash and cash | | | | | | | |
| equivalents) | | | | | | | |
+----------------------------+------------+----------+------------+-+------------+----------+------------+
| | 11,901,300 | | 11,876,895 | | 12,870,406 | | 12,820,295 |
+----------------------------+------------+----------+------------+-+------------+----------+------------+
Carrying amount of financial liabilities:
+-----------------------------+---------+----------+---------+----------+----------+----------+----------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+-----------------------------+---------+----------+---------+----------+----------+----------+----------+
| | Company | | Group | | Company | | Group |
+-----------------------------+---------+----------+---------+----------+----------+----------+----------+
| | GBP | | GBP | | GBP | | GBP |
+-----------------------------+---------+----------+---------+----------+----------+----------+----------+
| Amortised cost | 234,843 | | 184,118 | | 360,427 | | 299,630 |
+-----------------------------+---------+----------+---------+----------+----------+----------+----------+
| | 234,843 | | 184,118 | | 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:
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| | Company | | Group | | Company | | Group |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| | GBP | | GBP | | GBP | | GBP |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| Cash and cash equivalents | 11,796,210 | | 11,865,789 | | 12,759,709 | | 12,806,100 |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| Loans and receivables | 105,090 | | 11,106 | | 110,697 | | 14,195 |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| | 11,901,300 | | 11,876,895 | | 12,870,406 | | 12,820,295 |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
Impairment losses
There was no impairment on receivables during the year and there are no overdue
or impaired receivables at the year end.
Liquidity risk
The following are the contractual maturities of financial liabilities and
excluding the impact of netting agreements:
2009
Company:
+--------------------------+-----------+-------------+-----------+-----------+
| | Carrying | Contractual | 6 months | |
+--------------------------+-----------+-------------+-----------+-----------+
| | amount | cash flows | or less | 2-5 years |
+--------------------------+-----------+-------------+-----------+-----------+
| Accruals | 234,843 | 234,843 | 234,843 | - |
+--------------------------+-----------+-------------+-----------+-----------+
| | 234,843 | 234,843 | 234,843 | - |
+--------------------------+-----------+-------------+-----------+-----------+
Group:
+--------------------------+-----------+-------------+-----------+-----------+
| | Carrying | Contractual | 6 months | |
+--------------------------+-----------+-------------+-----------+-----------+
| | amount | cash flows | or less | 2-5 years |
+--------------------------+-----------+-------------+-----------+-----------+
| Accruals | 184,118 | 184,118 | 180,209 | 3,909 |
+--------------------------+-----------+-------------+-----------+-----------+
| | 184,118 | 184,118 | 180,209 | 3,909 |
+--------------------------+-----------+-------------+-----------+-----------+
2008
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:
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| | 2009 | | 2009 | | 2008 | | 2008 |
| | Carrying | | Carrying | | Carrying | | Carrying |
| | amount | | amount | | amount | | amount |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| | Company | | Group | | Company | | Group |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| | GBP | | GBP | | GBP | | GBP |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| Fixed rate instruments | | | | | | | |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| Financial assets (time | 11,562,000 | | 11,562,000 | | 12,677,207 | | 12,677,207 |
| deposits) | | | | | | | |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| | 11,562,000 | | 11,562,000 | | 12,677,207 | | 12,677,207 |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| | | | | | | | |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| Variable rate instruments | | | | | | | |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| Financial assets | 234,210 | | 303,789 | | 82,502 | | 128,893 |
+----------------------------+------------+----------+------------+----------+------------+----------+------------+
| | 234,210 | | 303,789 | | 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.
+---------------------------+-----------+------------+-----------+-----------+
| 2009 | Profit or loss and | Profit or loss and |
| | equity | equity |
+---------------------------+------------------------+-----------------------+
| | Company | Company | Group | Group |
+---------------------------+-----------+------------+-----------+-----------+
| | 100 bp | 100 bp | 100 bp | 100 bp |
| | increase | decrease | increase | decrease |
+---------------------------+-----------+------------+-----------+-----------+
| | GBP | GBP | GBP | GBP |
+---------------------------+-----------+------------+-----------+-----------+
| Time deposits | 117,962 | (117,962) | 118,658 | (118,658) |
+---------------------------+-----------+------------+-----------+-----------+
+---------------------------+-----------+------------+-----------+-----------+
| 2008 | Profit or loss and | Profit or loss and |
| | equity | 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 Statement of Financial Position, are as follows:
+--------------------------+------------+------------+------------+------------+
| 2009 | Carrying | Fair | Carrying | Fair |
| | amount | value | amount | value |
+--------------------------+------------+------------+------------+------------+
| | Company | Company | Group | Group |
+--------------------------+------------+------------+------------+------------+
| | GBP | GBP | GBP | GBP |
+--------------------------+------------+------------+------------+------------+
| Loans and receivables | 105,090 | 98,330 | 11,106 | 11,106 |
+--------------------------+------------+------------+------------+------------+
| Cash and cash | 11,796,210 | 11,796,210 | 11,865,789 | 11,865,789 |
| equivalents | | | | |
+--------------------------+------------+------------+------------+------------+
| Payables | (231,343) | (231,343) | (180,618) | (180,618) |
+--------------------------+------------+------------+------------+------------+
| | 11,669,957 | 11,663,197 | 11,696,277 | 11,696,277 |
+--------------------------+------------+------------+------------+------------+
+--------------------------+------------+------------+------------+------------+
| 2008 | 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 | 12,759,709 | 12,759,709 | 12,806,100 | 12,806,100 |
| equivalents | | | | |
+--------------------------+------------+------------+------------+------------+
| 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 1 year 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 | | 4.25% | 3% | 7.25% |
| Limited | | | | |
+--------------------------------+-----+------------+-----------+-----------+
17. 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 Marwyn Value
Investors LP which has a significant shareholding in the Company. James
Corsellis is a partner in Marwyn Investment Management LLP and a director of
various Marwyn Group companies. David Williams is a partner in Marwyn
Investment Management LLP. The following Marwyn companies are therefore deemed
to be related parties of the Group:
Marwyn Partners Limited was paid GBPGBP60,000 (2008:GBP25,000) (excluding VAT)
in respect of office accommodation and Marwyn Capital LLP was paid GBPGBP180,000
(2008:GBP100,000) in respect of corporate finance and administrative services.
At the Statement of Financial Position date Marwyn Partners Limited and Marwyn
Capital LLP were owed an amount of GBP10,000 (2008:GBP20,000) and GBP30,000
(2008:GBPNIL) respectively in respect of services supplied during the year.
At the Statement of Financial Position date Marwyn Value Investors 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 the Management Participation Share disclosed in note 19, the Group
also made the following payments to Directors or companies connected with
Directors:
+----------------------+------------+----------+----------+----------+------------+----------+----------+
| | Payments | | Amounts | | Payments | | Amounts |
| | for | | owed at | | for | | owed at |
| | services | | year end | | services | | period |
| | during the | | | | during the | | end |
| | year | | | | period | | |
+----------------------+------------+----------+----------+----------+------------+----------+----------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+----------------------+------------+----------+----------+----------+------------+----------+----------+
| | GBP | | GBP | | GBP | | GBP |
+----------------------+------------+----------+----------+----------+------------+----------+----------+
| Consultancy fees | 315,360 | | 30,000 | | 97,531 | | - |
+----------------------+------------+----------+----------+----------+------------+----------+----------+
| Director salary | 120,000 | | - | | 50,000 | | 10,000 |
| payments | | | | | | | |
+----------------------+------------+----------+----------+----------+------------+----------+----------+
| Non-executive fees | 30,758 | | 3,888 | | 22,662 | | 4,166 |
+----------------------+------------+----------+----------+----------+------------+----------+----------+
| | 466,118 | | 33,888 | | 170,193 | | 14,166 |
+----------------------+------------+----------+----------+----------+------------+----------+----------+
Directors' shareholdings
The following Directors held the indicated number of shares in the Company as at
the year end:
+---------------------------------------------------+------------+----------+------------+
| Director: | Shares | | Shares |
| | held at 31 | | held at 31 |
| | December | | December |
| | 2009 | | 2008 |
+---------------------------------------------------+------------+----------+------------+
| | | | |
+---------------------------------------------------+------------+----------+------------+
| Peter Tom CBE | 22,350,000 | | 22,350,000 |
+---------------------------------------------------+------------+----------+------------+
| Simon Vivian | 2,500,000 | | 2,500,000 |
+---------------------------------------------------+------------+----------+------------+
| David Williams | 11,000,000 | | 11,000,000 |
+---------------------------------------------------+------------+----------+------------+
| James Corsellis | 5,500,000 | | 5,500,000 |
+---------------------------------------------------+------------+----------+------------+
| David Warr | 2,500,000 | | 2,500,000 |
+---------------------------------------------------+------------+----------+------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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