Final Results

RNS Number:5788T
MG Capital PLC
22 December 2003

                                 MG CAPITAL PLC



              PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2003



CHAIRMAN'S STATEMENT



The year to 30 June 2003 was one of mixed fortunes for the Company. As
previously reported, during the first half of the year we were involved in the
establishment of New Opportunities Investment Trust Plc, a self-administered UK
small companies investment trust, which was launched on 25 September 2002.  It
was launched in the teeth of a bear market in UK and indeed global equities
which reached its climax in the fierce market sell-off  that preceded the
invasion of Iraq.  Fees relating to work done on the launch of the trust were
significant for our subsidiary MoneyGuru Limited. Furthermore a new group
subsidiary, N.O.I.T. Services Limited ("NSL"), was appointed by the trust to
provide it with certain management services including personnel, administration,
accounting and company secretarial services subject to the overall control of
the board of the trust, for a fee of 1.5 per cent per annum of the net asset
value of the trust, plus in certain circumstances a fee related to the trust's
performance.



With the benefit of hindsight the selling climax that accompanied the outbreak
of the Iraq War will most likely be seen as having marked the end of the three
year bear market in equities, and as having provided an excellent opportunity to
buy shares cheaply.  At the time, however, investors were in the grip of anxiety
and fear.  While shunning all equity markets, they showed particular aversion to
shares in small companies and to small investment trusts. This not only resulted
in a fall in the asset value of the New Opportunities share portfolio, but also
a sudden and substantial widening of the discount to net asset value at which
the trust's own shares were trading.  This was the trigger for a takeover bid
for the trust which, although in the end it received little actual support from
shareholders, led to further corporate activity relating to the trust including
another attempted bid.  By the end of June the markets and the trust's net asset
value had begun a strong recovery, but with uncertainty over the trust's future
continuing the trust's share price lagged behind.  The board of the trust has
now addressed the trust's future by putting forward proposals to the trust's
shareholders to convert the trust into a realisation fund and to appoint a new
manager specialising in realisations in place of NSL. While this is of course
disappointing for us, if as expected these proposals are approved by the trust's
shareholders at their meeting on 23 December 2003, NSL will receive material
compensation broadly amounting to 24 times the average monthly fee received to
date.



The Elite MoneyGuru Income with Growth Trust, to which MoneyGuru Limited is
portfolio adviser, has continued to perform strongly.  It has been by a
considerable margin the top performer among all UK Equity Income unit trusts
since its launch in February 2002.  The uncertaintly over the future of New
Opportunities, however, caused us to defer plans for new products based upon
this track record in the UK market, and that has meant that the additional
revenue streams that we had hoped to begin generating in the second half of the
year were not achieved, with a consequent impact upon our profit and loss
account.



We have nevertheless been working on other new products, with an emphasis on the
renewed potential of selected emerging markets.  This is an area where our
considerable background and experience will, we hope, prove to be of
considerable relevance.



It is our intention to raise further equity in the near future to support the
future strategy of the group.



Our Annual General Meeting of Shareholders will be held on 12th February 2004 at
10:30am at Ocean House, 10/12 Little Trinity Lane, London EC4V 2DH.



Charles Fowler

Chairman







Consolidated Profit and Loss Account

For the year ended 30 June 2003

                                                                                              2003                 2002
                                                                                                 #                    #
Turnover
Continuing operations                                                                      709,635              436,440
Discontinued operations                                                                          -              359,961
                                                                                           709,635              796,401
Administrative expenses                                                                (1,117,304)          (2,590,537)
Other operating income                                                                     174,526               27,221

Operating loss
Continuing operations                                                                    (233,143)          (1,753,403)
Discontinued operations                                                                          -             (13,512)
                                                                                         (233,143)          (1,766,915)
Interest payable and similar charges                                                     (175,200)             (85,871)
Interest receivable                                                                            591                2,004

Loss on ordinary activities before taxation                                              (407,752)          (1,850,782)

Tax on loss on ordinary activities                                                               -                    -

Loss on ordinary activities after taxation                                               (407,752)          (1,850,782)

Equity minority interest                                                                   (2,160)                    -

Non-equity dividends payable                                                              (91,318)             (91,819)

Loss attributable to the members of the parent company                                   (501,230)          (1,942,601)
Basic and diluted earnings per share                                                       (0.16p)              (0.81p)







Consolidated Balance Sheet

As at 30 June 2003


                                                                                           2003                    2002
                                                                                              #                       #
Fixed assets
Intangible assets                                                                             -                   3,137
Tangible assets                                                                         109,707                 172,371
                                                                                        109,707                 175,508
Current assets
Debtors                                                                                 177,756                  98,230
Cash at bank and in hand                                                                    300                   2,667
                                                                                       ________                ________
                                                                                        178,056                 100,897

Creditors: amounts falling due within one year                                        (869,319)               (789,039)
                                                                                       ________                ________
Net current liabilities                                                               (691,263)               (688,142)
                                                                                       ________                ________
Total assets less current liabilities                                                 (581,556)               (512,634)

Creditors:
amounts falling due after more than one year                                            952,530                 952,530

Capital and reserves
Called up share capital                                                               2,468,498               2,407,859
Share premium account                                                                 2,521,180               2,243,489
Profit and loss account                                                             (6,759,098)             (6,257,868)
Preference dividend reserve                                                             232,674                 141,356
                                                                                       ________                ________
Shareholders' funds
(including non-equity interests)                                                    (1,536,746)             (1,465,164)

Total capital employed                                                                (584,216)               (512,634)
Minority interest - equity                                                                2,660                       -
                                                                                      (581,556)               (512,634)
                                                                                       ________                ________







Consolidated Cashflow Statement

for the year ended 30 June 2003

                                                                                                2003               2002
                                                                                                   #                  #

Net cash outflow from operating activities                                                 (131,784)        (1,453,204)

Returns on investments and servicing of finance
Interest paid                                                                              (229,102)           (14,206)
Interest received                                                                                591              2,004
                                                                                             _______            _______
Net cash outflow from returns on investments and servicing of finance
                                                                                           (228,511)           (12,202)

Taxation                                                                                           -              (710)

Capital expenditure and financial investment
Proceeds from sale of tangible fixed assets                                                        -              6,353
                                                                                              ______             ______
Net cash inflow from capital expenditure and
financial investment                                                                               -              6,353

Cash outflow before financing                                                              (360,295)        (1,459,763)

Financing
Issue of share capital                                                                       338,330          1,124,411
Conversion/Issue of debt                                                                           -           (30,000)
                                                                                              ______            _______
Net cash inflow from financing                                                               338,830          1,094,411
                                                                                              ______            _______

(Decrease) in cash                                                                          (21,965)          (365,352)




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