Milestone Group PLC Milestone Group Plc: Final Results

 
TIDMMSG 
 
   MILESTONE GROUP PLC 
 
   ("Milestone" or the "Company") 
 
   Final Results 
 
   Milestone, the AIM quoted (AIM: MSG) provider of digital media and 
technology solutions announces its final results for the year ended 30 
September 2014. 
 
   Highlights 
 
 
   -- Engagement of 2,000 young people within the Passion Project 
 
   -- Fee paying corporate members and sponsors of the Passion Project post 
      year-end 
 
   -- Resilience and emotional intelligence training delivered to Poplar HARCA 
      vulnerable young adults 
 
   -- Acquisition of Disorder UK Magazine 
 
   -- Appointment to the management team of Frank Sweeney as Passion Project 
      Programme Director and Anthony Webb as Disorder Magazine Commercial 
      Director 
 
 
   Deborah White, CEO and Interim Chairman, commented: 
 
   "We are pleased with the developments during the period and particularly 
since the period end. Each of the separate business offerings has shown 
the beginnings of their revenue potential with growing interest being 
shown from an ever-expanding customer base and further new revenues 
visible in the near future. 
 
   "The coming together of the elements necessary for the continued 
development and expansion of the Passion Project have clearly been 
demonstrated. Much of the Project's preparatory groundwork is now 
complete and early indications have helped to highlight not only the 
number of new possible revenue lines, but also the scale of their 
potential. 
 
   "The Passion Project platform offers the Group a unique opportunity to 
set itself apart in the digital community as a provider of innovative 
products and solutions. Through its continually developing eco-system, 
it offers the Company an expanding marketplace through which to promote 
its products and services whilst reinforcing its vision of creating a 
media brand synonymous with the creation and delivery of market leading 
products that deliver both financial and social value." 
 
   For further information: 
 
 
 
 
Milestone Group PLC 
Deborah White, Chief Executive                   Tel: [phone] 
 
Cairn Financial Advisers LLP, Nominated Adviser 
Liam Murray / Avi Robinson                       Tel: [phone] 
 
Hybridan LLP, Broker 
Claire Louise Noyce                              Tel: [phone] 
 
 
   CHAIRMAN'S STATEMENT 
 
   Foreword 
 
   It is a pleasure to deliver this report on behalf of the Board and 
management team. During the year, and since the year end, Milestone has 
continued to develop its product offerings to the point of delivering 
revenue from across the Group. A lot of team effort and resources have 
gone into the development of each of these revenue streams and it is 
exciting to see the results starting to take shape in the form of 
innovative market leading products and services that are set to deliver 
real financial and social value. 
 
   Developments 
 
   Passion Project 
 
   The Passion Project is a large-scale aggregator that promotes 
cross-sector collaboration between organisations responsible for the 
engagement and transition of young people into the world of work. 
Through its design, the Passion Project partnerships support and 
encourage the development of the young person, whilst actively 
cross-promoting and matching its network of partner organisations. This 
process creates a self-sustaining "marketplace" that underpins the 
delivery of commercial and socially motivated outcomes. 
 
   The Passion Project process utilises and actively promotes all of the 
Group's products and services. It is expected that as the Passion 
Project grows it will provide a constant stream of new business 
relationships and revenue opportunities to all the Group's individual 
business units. 
 
   Whilst each department within the Group is capable of operating on a 
stand-alone basis, direct to external clients, they are also actively 
involved in providing support in the delivery and expansion of the 
Passion Project. 
 
   The Passion Project uses a combination of human interaction, supported 
by a digital platform and mobile applications offering the audience 
access to engaging social media content, educational materials and 
training services. These are designed to provide a holistic and secure 
approach to delivering both the needs of the participants and of any 
relevant support organisation. 
 
   Through the network of existing partners, it is anticipated that the 
Passion Project will have access to a social media audience reach of 
over 40m by the end of Q2 2015. This offers an exciting opportunity for 
anyone interested in audience activation, youth engagement, sponsorship, 
advertising, product placement, training or distribution opportunities. 
 
   The first stage of the Passion Project involves the engagement of young 
people and, during the period, Milestone successfully held the first 
engagement event for the Passion Project. This was the 'Be United' 
football competition, which was hosted in conjunction with ten of 
London's Professional Football Clubs' community trust schemes and 
culminated in the finals at the London Soccerdome in February 2014. This 
competition resulted in the large-scale engagement of 2,000 young people 
from across the London Boroughs. 
 
   All participants now have the opportunity to engage further with the 
Passion Project and to be matched to employers, sector skills academies 
and supply chain consortiums for interviews, work placements and 
employment. All those young people participating in the employment 
route-way will also be offered the opportunity to participate in the 
Company's emotional intelligence training and other employment related 
training programmes (see below). 
 
   The formal launch of the Passion Project happened post year-end on 10 
December 2014. The event was held at the Cass Business School with over 
200 guests, the Project's Ambassadors and over 50 Founding Partners, 
including Big Invest, Ambition UK, NCVO, Be The Best 21(st) Century 
Legacy and Each One Teach One ("EOTO"). In the run up to the event, and 
since, the Passion Project has generated significant interest and 
exposure and is continuing to gather momentum. 
 
   The Project has started to attract fee paying Corporate Members to its 
network. As part of the programme, members have access to Milestone's 
range of products and services to help support and deliver their 
Corporate Social Responsibility ("CSR") activities. The activities 
include staff engagement initiatives, recruitment targeted marketing 
campaigns, PR, advertising, product distribution, digital consultancy 
and business solutions. Corporate Members of the Passion Project can 
participate in a range of networking events offered by the partnership 
and will have the option to provide employment opportunities to the 
young people engaged in the programme. For example, it is anticipated 
that the Rank Group plc will be providing in the region of 1,500 
employment opportunities during 2015. 
 
   Also, as announced on 7 January 2015, the Company signed an agreement 
with CWM FX to sponsor the Passion Project 'Game' for 12 months. The 
'Game' is the career profiling tool of the Passion Project - matching a 
young person's skills and talents with career options. This is the first 
of a series of sponsorship opportunities that will be coming available 
during the coming months and attracted an initial upfront sponsorship 
fee of GBP130,000. 
 
   The signing up of fee paying corporate members as well as the first 
sponsor demonstrates the immediate commercial viability of the Project, 
which complements the social benefit of the initiative and we are 
looking forward to further developments expected in early 2015. 
 
   Milestone Foundation 
 
   The Milestone Foundation was established in July 2013 for the specific 
purpose of underpinning the Passion Project. The Foundation's activities 
and areas of focus target youth unemployment, assist with the provision 
of safe spaces for young people and promote the use of emotional 
intelligence. 
 
   The Foundation's role in the delivery of the Passion Project is at 
present limited to the creation of engagement initiations, the 
establishment of appropriate service level agreements for the Passion 
Project partners, along with the capturing and monetisation of the 
associated outcomes. 
 
   It was important to ensure that all proposed "for-profit" and 
"not-for-profit" activities of the Passion Project were clearly defined 
and allocated appropriately between Milestone Group and the Milestone 
Foundation at the outset. Whilst the operational framework may seem 
complex, it is, in reality, quite simple and is based on a common set of 
objectives, key principles and rules of engagement. 
 
   The proposed operational framework for the Passion Project was reviewed 
and incorporated into the Foundation's Articles by Stephen Lloyd, who, 
at the time, was Senior Partner from Bates, Wells and Braithwaite. 
Stephen was a recognised legal expert in Charity Law, specialising in 
innovation in the charitable and voluntary sector. 
 
   This independent relationship between Milestone and the Foundation 
enables both entities to focus on their area of expertise. The 
Foundation uses the Passion Project under licence from Milestone to 
generate and deliver positive outcomes for young people and 
commercialise these outcomes. At the same time, Milestone commercialises 
the digital platform, mobile applications and training opportunities 
amongst other media related activities through the surrounding partner 
relationships. Milestone does not look to monetise the young people the 
Passion Project has been established to support. 
 
   In July 2014, the Foundation appointed Lord Patel of Bradford OBE, Lord 
Kennedy of Southwark, Commodore Christopher Waite and Richard Evans as 
Independent Trustees to the Foundation Board, Kevin Everett as Executive 
Chairman and David Williams as Company Secretary. These independent 
trustees join the existing board of Deborah White, Malcolm Pickles and 
Paul Elliott CBE. 
 
   Education and Training 
 
   The education and training department of Milestone has also seen some 
exciting developments in the last year. 
 
   Winning in the Game of Life ("WITGOL") is a programme which addresses 
the aspects of Spiritual, Moral, Social and Cultural curriculum learning 
needs of pupils as per the Department of Education's expectations and 
Ofsted's requirements. The programme, which promotes the use of 
emotional intelligence to teach values and build resilience, was 
successfully piloted in over 30 Primary Schools across the UK in 2013. 
In February 2014, Milestone obtained an extension to its existing 
licence agreement expanding the age range of the audience and variety of 
the materials that could be offered under the agreement. 
 
   The expanded licence allowed Milestone to develop materials for the 
youth marketplace, and where appropriate, will see these integrated into 
the bedrock of the Passion Project, as well as making them available to 
the Passion Project partners as a commercial stand alone training 
opportunity. 
 
   In response to delays experienced with our proposed distribution 
partners, the Company has now started its own marketing campaign to 
promote the WITGOL product's roll out to all 22,000 of the UK primary 
schools. The Company is presenting at exhibitions and working with the 
original pilot group, using applications for grant funding to accelerate 
the take up process. 
 
   During the year we have delivered emotional intelligence focused 
training to a sample of youth groups. Initially these were delivered to 
vulnerable groups of young adults as part of the London-wide "Talent 
Match" initiative in association with Poplar Housing and Regeneration 
Community Association achieving very positive results. 
 
   The training was commissioned to help support these vulnerable young 
adults to become navigators of their own lives and in doing so help 
integrate them back into the community, society and employment. 
Following the success of these initial courses, the Company has since 
agreed to the delivery of a further five training events, one of which 
is in collaboration with the Peer Outreach group at the Greater London 
Authority. These training events include the training of youth workers, 
which will help facilitate the expansion of the training. 
 
   Mobile Business Solutions 
 
   The Company's Mobile Business Solutions products offer businesses and 
organisations a modular approach to the creation and provision of remote 
working force, asset tracking or logistics workflow management tools. 
 
   This modular approach allows businesses to achieve the effectiveness 
offered by bespoke solutions without the usual software development cost 
overheads. The modules incorporate all aspects of the management, 
business process and auditing requirements enabling the provision of 
comprehensive, flexible and cost-effective solutions. Additional modules, 
where requested, can be developed to meet requirements of specific use 
cases. 
 
   In October 2013, Milestone signed an agreement with STM Security Ltd for 
a paid trial of the OnGuard software, which is designed for the 
management of mobile workforces, in this case in the security sector. In 
April 2014, the pilot was expanded to include Viper Cleaning Services. 
 
   In September 2014, Intervictus, a specialist in the supply of Energy 
Management Systems, agreed to licence an adapted version of the OnGuard 
offering, which has been configured as a new audit and assessment 
application. This is currently being run as a pilot with a London 
Housing Association and it is anticipated that on completion there will 
be up to 250 auditors using the application, which, if sustained, would 
generate a GBP60,000 per annum revenue as the service carries a monthly 
user cost of GBP20 per person. 
 
   This modular approach has also been used to create the mobile 
applications required to monitor the training and delivery of the 
engagement activities involved in the Passion Project and measure the 
associated social impact. This mobile service is already included in 30+ 
construction industry bids via current Passion Project partners offering 
significant user uptake and revenue potential to the Group. 
 
   Creative Solutions 
 
   In the last period, Milestone's wholly owned subsidiary, Oil Productions 
Ltd, underwent a reorganisation and rebranding with Darren Groucutt 
taking over as Creative Director leading a young and talented team. The 
rebranded company, now trading as "Relative", has been recognised in a 
number of notable ways during the year, including at the South by 
Southwest Interactive Festival in Austin, Texas, USA as part of Hackney 
Council's trade mission, Hackney House. 
 
   During the period, the team developed a strong relationship with Sudler 
& Hennessey, part of the WPP Group, resulting in a number of exciting 
projects. One of these was to produce a micro-site for the Peace by 
Piece campaign for the Animals Asia Foundation, which went on to be 
nominated for the Cannes Lion Award. 
 
   In April 2014, Relative was commissioned by Hotel Creative Ltd to work 
on the Nike launch for the England Football team's new kit for the 2014 
FIFA World Cup in Brazil. Relative developed an app that allowed fans of 
England and Nike to join in and express their support of the team by 
creating their own "Supporter Selfie" to be added to the video wall in 
Nike stores. 
 
   Post year-end, Relative also contributed to an interesting project for 
the Financial Services Income Protection task force ("IPTF"), who 
commissioned the production of an innovative way of communicating the 
financial consequences and the practical impact on daily life of not 
being able to work due to long-term illness or disability. The team 
delivered a winning pitch to support the "7 Families" initiative, which 
has seen the IPTF winning the Health Insurance and Protection Industry 
"Cover" magazine award for outstanding achievement and has been featured 
in the Mail on Sunday, Sunday Express, Money Marketing and the 
Independent. In December 2014, Relative continued their relationship 
with Hackney Council by being invited to use their digital expertise in 
the creation of an interactive piece for Hackney Town Hall's annual 
light display. 
 
   As well as working for external clients, the Relative team has been 
continuing to support internal projects within the Group including a new 
website for Milestone Group, the development of the Passion Project, 
WITGOL collateral and the development of Disorder Magazine's print and 
digital presence. 
 
   Disorder UK Magazine 
 
   In April 2014, Milestone acquired all rights and title to the 
publication, Disorder UK Magazine and its associated TV channel. The 
magazine was re-launched with a 10,000-issue print-run to an ever 
increasing and targeted circulation. The most recent edition (issue 2), 
was produced post-period end and included the highly anticipated 
Graduate Fashion Week content that will be delivered in digital format 
to a number of newly engaged London and UK Fashion colleges. In keeping 
with the magazines history of unveiling up and coming artists this 
issue's front cover featured the new UK band "Catfish and the Bottlemen" 
who then went on to be featured on the David Letterman Show, and win an 
"Introducing Award" at the first BBC awards event in December 2014. 
 
   As well as promoting new fashion and music, the magazine has a strong 
history of training young people across a range of creative industries, 
including photography, design and journalism. In the coming months, the 
team will start to leverage the in-house relationships across the group 
and will work in collaboration with Job Centre Plus and various colleges, 
to access grant funding, using Relative's digital services and its own 
access to industry talent and unique content. This activity will help 
drive its business development and marketing opportunities. Disorder UK 
is already in the process of expanding the online Disorder UK offering 
to increase its reach and relevance to young people. 
 
   The combination of industry connections and in-house capabilities will 
allow the team to deliver quality industry-focused training as part of 
producing the magazine, giving young people important experience and 
skills to help them find employment in the industry whilst also 
generating new revenues for the Group. 
 
   As well as working with young talent, Disorder UK will become a key 
physical and digital promotional vehicle for the Passion Project and its 
activities through the generation of original content, creation of 
events and competitions supported by influential guest editors and 
contributors. 
 
   Management Changes 
 
   In March 2014, Frank Sweeney was appointed to the management team as 
Programme Director of the Passion Project. Frank brought with him a 
number of youth initiatives, contacts and network, which he is 
integrating into the Passion Project to assist with the Project's 
expansion and engagement with young people. One of the relationships 
Frank brought to the Passion Project this year is one with the Greater 
London Authority ("GLA"), who included the Passion Project in the 
development of a series of knowledge exchange workshops, branded 
Creative Exchange. Going forward these workshops will enable pan-London, 
cross sector, youth-arts partnerships with public, not-for-profit, 
commercial and academic organisations to work together to deliver the 
common goal of creating better and increased opportunities for young 
people perfectly matching the ethos and vision of the Passion Project. 
 
 
   In April 2014, Anthony Webb also joined the team. Anthony came on board 
to assist with the commercialisation of Disorder UK Magazine and its 
brand. He is well versed in the marketing, brand development and digital 
marketplace and is credited with being part of the team that helped 
build Rio Ferdinand's No 5 magazine into one of the world's most 
successful multi-platform publications as well as representing a number 
of brands, talents and government organisations in this space. 
 
   Financial Summary 
 
   During the year, the Group's net loss was GBP1,071,383  (2013: 
GBP980,570), which includes a realised gain on the sale of investments 
of GBP409,453  (2013: GBP440,605). Revenues were GBP157,377 (2013: 
GBP152,373) and net liabilities at the period end were GBP1,162,250 
(2013: GBP1,017,950). 
 
   These results are presented under European Union Adopted International 
Financial Reporting Standards ("EU Adopted IFRS"). 
 
   Funding 
 
   During the year, the Company issued 136,782,779 new ordinary shares for 
a total consideration of GBP1,351,828 of which GBP1,276,779 was received 
in cash, GBP27,049 was in exchange for goods or services received and 
the remainder was the final part of the purchase of Oil Productions Ltd. 
 
 
   Since the year-end, the Company has issued 16,175,000 new ordinary 
shares, raising GBP130,000 in cash and exchanging GBP31,750 worth for 
services. The Company continues to carefully manage its working capital 
position and will need to raise further monies through subscriptions for 
new shares in the short term to continue to support its business 
activities until they are fully revenue generating. 
 
   The Company is firmly focused on generating revenue through all of its 
activities, as well as developing further opportunities. Protecting the 
interest of the Company's shareholders is a priority and the Board's 
strategy is to seek to raise funds on a basis that is fair to all. 
 
   Outlook 
 
   The Board is pleased with the developments during the period and 
particularly since the period end. Each of the separate business 
offerings has shown the beginnings of their revenue potential with 
growing interest being shown from an ever-expanding customer base and 
further new revenues visible in the near future. 
 
   The coming together of the elements necessary for the continued 
development and expansion of the Passion Project have clearly been 
demonstrated. Much of the Project's preparatory groundwork is now 
complete and early indications have helped to highlight not only the 
number of new possible revenue lines, but also the scale of their 
potential. 
 
   The Passion Project platform offers the Group a unique opportunity to 
set itself apart in the digital community as a provider of innovative 
products and solutions. Through its continually developing eco-system, 
it offers the Company an expanding marketplace through which to promote 
its products and services whilst reinforcing its vision of creating a 
media brand synonymous with the creation and delivery of market leading 
products that deliver both financial and social value. 
 
   Deborah White 
 
   Chief Executive Officer and Interim Chairman 
 
   25 February 2015 
 
   Consolidated statement of comprehensive income for the year ended 30 
September 2014 
 
 
 
 
                                                               2014         2013 
                                                                GBP          GBP 
 
Revenue                                                         157,377      152,373 
 
Cost of sales                                                 (247,087)    (119,924) 
 
Gross (loss) / profit                                          (89,710)       32,449 
 
Other operating income                                            1,500      287,500 
Realised gain on disposal                                       409,453      440,605 
Administrative expenses                                     (1,428,018)  (1,632,909) 
 
                                                            (1,017,065)    (904,804) 
 
Loss from operations                                        (1,106,775)    (872,355) 
 
 
Net finance income / (expense)                                   35,392    (108,215) 
 
Loss before taxation                                        (1,071,383)    (980,570) 
 
Taxation charge                                                       -            - 
 
Net loss for the year                                       (1,071,383)    (980,570) 
 
Items which may be reclassified subsequently to profit 
 or loss 
Adjustment in carrying value of held for sale investments      (14,080)     (23,160) 
 
  Items reclassified to profit or loss 
Recycling of realised gain on sale of held for sale 
 investments                                                  (335,304)    (440,605) 
 
Total comprehensive loss for the year                       (1,420,767)  (1,444,334) 
 
Attributable to owners of the parent                        (1,420,767)  (1,444,334) 
 
Basic and diluted loss per share (pence)                         (0.23)       (0.24) 
 
 
   Consolidated statement of financial position at 30 September 2014 
Company No: 04689130 
 
 
 
 
                                             2014          2013 
                                             GBP           GBP 
 
Non-current assets 
Intangible assets                              56,728       189,488 
Held for sale investments                           -       454,763 
                                               56,728       644,251 
Current assets 
Trade and other receivables                   114,983        50,728 
Cash and cash equivalents                      75,855        17,025 
                                              190,838        67,753 
 
Current liabilities 
Trade and other payables                  (1,336,289)   (1,259,017) 
Interest bearing loans                       (73,527)     (470,937) 
                                          (1,409,816)   (1,729,954) 
 
 
Net liabilities                           (1,162,250)   (1,017,950) 
 
Capital and reserves attributable to 
 owners of the Company 
Share capital                                 553,961       417,178 
Share premium account                      13,056,175    11,847,178 
Shares to be issued                            40,000       109,313 
Merger reserve                             11,119,585    11,119,585 
Capital redemption reserve                  2,732,904     2,732,904 
Retained losses                          (28,664,875)  (27,244,108) 
Total Equity                              (1,162,250)   (1,017,950) 
 
 
   Consolidated statement of cash flows for the year ended 30 September 
2014 
 
 
 
 
Cash flow from operating activities                      2014         2013 
                                                          GBP          GBP 
 
Loss for the year                                     (1,071,383)    (980,570) 
Adjustments for: 
Amortisation of intangible assets                          37,814       37,814 
Impairment of investments                                  61,713            - 
Realised gain on disposal of held for sale 
 investments                                            (409,453)    (440,605) 
Impairment of goodwill                                     94,947      313,040 
Net bank and other interest charges                      (35,392)      108,215 
Services settled by the issue of shares                    27,049       16,768 
Adjustment to deferred consideration payable                    -    (280,000) 
 
Net cash before changes in working capital            (1,294,705)  (1,225,338) 
 
(Increase) / decrease in trade and other receivables     (64,255)       36,468 
Increase in trade and other payables                      119,754      275,219 
 
Cash outflow from operations                          (1,239,206)    (913,651) 
 
Interest received                                              56           17 
Interest paid                                             (5,866)      (2,248) 
 
Net cash flows from operating activities              (1,245,016)    (915,882) 
 
Investing activities 
Purchase of available for sale investments              (232,937)            - 
Proceeds from sale of held for sale investments           350,057      447,135 
Acquisition of intangible assets                              (1)            - 
 
Net cash flows used in investing activities               117,119      447,135 
 
Financing activities 
Issue of ordinary share capital                         1,207,467      407,500 
Repayment of loan                                        (23,740)     (93,137) 
New loans raised                                            3,000      131,000 
 
Net cash flows from financing activities                1,186,727      445,363 
 
 
Net increase / (decrease) in cash                          58,830     (23,384) 
Cash and cash equivalents at beginning of year             17,025       40,409 
 
Cash and cash equivalents at end of year                   75,855       17,025 
 
 
   Consolidated statement of changes in equity for the year ended 30 
September 2014 
 
 
 
 
                  Share      Share     Shares to     Other       Retained       Total 
                  Capital    Premium    be issued   Reserves     Earnings       Equity 
                   GBP        GBP         GBP         GBP          GBP           GBP 
 
Balance at 
 30 Sept 2012     372,977  11,395,961      70,000  13,852,489  (25,799,773)    (108,346) 
 
Loss for the 
 year                   -           -           -           -     (980,570)    (980,570) 
Other 
 comprehensive 
 income                 -           -           -           -     (463,765)    (463,765) 
Cash received 
 in advance of 
 share issue            -           -      69,313           -             -       69,313 
Shares issued      44,201     451,217    (30,000)           -             -      465,418 
 
Balance at 
 30 Sept 2013     417,178  11,847,178     109,313  13,852,489  (27,244,108)  (1,017,950) 
 
Loss for the 
 year                   -           -           -           -   (1,071,383)  (1,071,383) 
Other 
 comprehensive 
 income                 -           -           -           -     (349,384)    (349,384) 
Shares issued     136,783   1,208,997    (69,313)           -             -    1,276,467 
 
Balance at 
 30 Sept 2014     553,961  13,056,175      40,000  13,852,489  (28,664,875)  (1,162,250) 
 
 
   Notes to the financial statements 
 
   1.             Basis of preparation 
 
   Milestone Group PLC is a company registered and resident in England and 
Wales. 
 
   The financial information set out in this announcement does not 
constitute the Group's statutory accounts, as defined in Section 435 of 
the Companies Act 2006, for the years ended 30 September 2014 or 30 
September 2013, but is derived from the 2014 Annual Report. Statutory 
accounts for 2013 have been delivered to the Registrar of Companies and 
those of 2014 will be delivered in due course. 
 
   The consolidated statement of comprehensive income, consolidated 
statement of financial position, consolidated cash flow, consolidated 
statement of changes in equity (above) and associated notes are extracts 
from the financial statements and do not constitute the Group's 
statutory accounts. 
 
   Statutory accounts for the year to 30 September 2013 and 30 September 
2014 have been reported on by the Independent Auditors. 
 
   The Group financial statements have been prepared and approved by the 
Directors in accordance with International Financial Reporting Standards 
as adopted by the EU ("EU Adopted IFRSs"). 
 
   The Independent Auditor's Report on the Annual Report and Financial 
Statements for 2013 was unqualified, but did draw attention to matters 
by way of emphasis relating to the basis of preparation. This emphasis 
drew attention to the Company's requirement to manage the timing of 
settlement of its liabilities and raise funds in the immediate to short 
term and the profitability of key projects thereafter to satisfy 
liabilities associated with its activities. It noted that a material 
uncertainty remains which may cast significant doubt about the Company's 
ability to continue as a going concern. 
 
   The Independent Auditor's Report on the Annual Report and Financial 
Statements for 2014 was unqualified, but did draw attention to matters 
by way of emphasis relating to the basis of preparation, which is 
reproduced below. This emphasis drew attention to the Company's 
requirement to manage the timing of settlement of its liabilities and 
raise funds in the immediate to short term and the profitability of key 
projects thereafter to satisfy liabilities associated with its 
activities. It noted that a material uncertainty remains which may cast 
significant doubt about the Company's ability to continue as a going 
concern. 
 
   The basis of preparation is reproduced below. 
 
   Going Concern 
 
   The Group's business activities, together with the factors likely to 
affect its future development, performance and position are set out in 
the Chairman's statement. The financial position of the Group, its cash 
flows, liquidity position and borrowing facilities are described in the 
Strategic report and the Director's report. In addition note 17 to the 
financial statements includes the Group's objectives, policies and 
processes for managing its capital; its financial risk management 
objectives; details of its financial instruments and exposures to credit 
risk and liquidity risk. 
 
   The net liability balance sheet position as at 30 September 2014, being 
the Group's financial year-end, was GBP1,162,250 (2013: GBP1,017,950). 
Subsequent to the balance sheet date, the Board has been able to agree 
funding in the form of further share issues raising GBP130,000 in cash 
and exchanged GBP31,750 worth of shares for services received. 
 
   The Company is reliant upon its continuing ability to manage the timing 
of settlement both of its current liabilities, many of which are overdue, 
and future liabilities as they arise. Future fundraising will be 
required in the immediate to short term thereafter. As such, the 
Directors intend to strengthen the Company's financial position through 
a combination of further fundraises in the immediate to short term and 
from trading activities. 
 
   The future business model is based around generating revenue through its 
subsidiary, Oil Productions, trading as Relative, as well as through its 
projects. The Group is already producing revenues and new contracts post 
year end have been positive. As a result, the Board has prepared 
forecasts to reflect this and the agreements that have or are expected 
to be entered into.  These forecasts show the business being profitable 
and cash generative in the future.  However, achieving these forecasts 
will be dependent upon achieving sales and obtaining sufficient funding 
to settle existing and future obligations. Should any of these factors 
not deliver the funding envisaged by the Directors, then alternative 
sources of funds would be needed, any discussions for which have not 
been initiated. 
 
   The Directors have concluded that the need to generate future funds from 
further fundraising and from trading activities to satisfy the 
settlement of its ongoing and future liabilities represents a material 
uncertainty, which may cast significant doubt upon the Group's and the 
Company's ability to continue as a going concern. Nevertheless after 
making enquiries and considering this uncertainty and the measures that 
can be taken to mitigate the uncertainty, the Directors have a 
reasonable expectation that the Group and the Company will have adequate 
resources to continue in existence for the foreseeable future. For these 
reasons they continue to adopt the going concern basis in preparing the 
annual report and accounts. The financial statements do not include any 
adjustments that would result if the Group and Company was unable to 
continue as a going concern. 
 
   2.             Loss per share 
 
   The calculation of the basic loss per share is based on the loss 
attributable to ordinary shareholders divided by the weighted average 
number of shares in issue during the year. The calculation of diluted 
loss per share is based on the basic loss per share, adjusted to allow 
for the issue of shares and the post tax effect of dividends and 
interest, on the assumed conversion of all other dilutive options and 
other potential ordinary shares. 
 
   There were 19,085,000 share options outstanding at the year-end (2013: 
29,179,650). However, the figures for 2014 and 2013 have not been 
adjusted to reflect conversion of these share options as the effects 
would be anti-dilutive. 
 
 
 
 
                                                              2014                            2013 
                                                 Weighted                        Weighted 
                                                              Per                             Per 
                                                  average    share                average    share 
                                      Loss       number of   Amount    Loss      number of   amount 
                                       GBP        shares     Pence      GBP       shares     Pence 
Basic and diluted loss per share 
 attributable to shareholders      (1,071,383)  471,318,047  (0.23)  (980,570)  402,324,052  (0.24) 
 
 
 
   3.             Posting of Accounts 
 
   The Report and Accounts of Milestone Group PLC, including the Notice of 
Annual General Meeting will be posted to shareholders shortly. A further 
announcement will be made by the Company at such time. 
 
   This announcement is distributed by NASDAQ OMX Corporate Solutions on 
behalf of NASDAQ OMX Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Milestone Group PLC via Globenewswire 
 
   HUG#1897386 
 
 
  http://www.milestonegroup.co.uk/