Interim Results -7-

|                                                      |               | 
+------------------------------------------------------+---------------+ 
| Amortisation expense for the period                  |             - | 
+------------------------------------------------------+---------------+ 
| Balance as at 31 December 2009                       |            50 | 
+------------------------------------------------------+---------------+ 
|                                                      |               | 
+------------------------------------------------------+---------------+ 
| Carrying amount                                      |               | 
+------------------------------------------------------+---------------+ 
|                                                      |               | 
+------------------------------------------------------+---------------+ 
| 31 December 2008                                     |             - | 
+------------------------------------------------------+---------------+ 
|                                                      |               | 
+------------------------------------------------------+---------------+ 
| 30 June 2009                                         |             - | 
+------------------------------------------------------+---------------+ 
|                                                      |               | 
+------------------------------------------------------+---------------+ 
| 31 December 2009                                     |             - | 
+------------------------------------------------------+---------------+ 
 
During the six months ended 31 December 2008, the Company impaired in full the 
value of the intangible asset, since there remained uncertainty regarding 
funding, the future of NPL-2008 and the Company. 
 
7.       PROPERTY, PLANT AND EQUIPMENT 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
|                                    | Tooling |    Office | Furniture |   Total |          | 
|                                    | GBP'000 | equipment |       and | GBP'000 |          | 
|                                    |         |   GBP'000 |  fixtures |         |          | 
|                                    |         |           |   GBP'000 |         |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Cost                               |         |           |           |         |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Balance as at 1 July 2008          |     175 |        19 |         6 |     200 |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Additions                          |       - |         5 |         - |       5 |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
|                                    |         |           |           |         |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Balance as at 31 December 2008     |     175 |        24 |         6 |     205 |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Additions                          |       - |         7 |         - |       7 |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
|                                    |         |           |           |         |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Balance as at 30 June 2009         |     175 |        31 |         6 |     212 |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Additions                          |       - |         - |         - |       - |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
|                                    |         |           |           |         |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Balance as at 31 December 2009     |     175 |        31 |         6 |     212 |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
|                                    |         |           |           |         |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Accumulated depreciation and       |         |           |           |         |          | 
| impairment                         |         |           |           |         |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Balance as at 1 July 2008          |       9 |         8 |         2 |      19 |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Depreciation expense for the       |      17 |         3 |         1 |      21 |          | 
| period                             |         |           |           |         |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Impairment loss charged to income  |     149 |         - |         - |     149 |          | 
| statement                          |         |           |           |         |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
|                                    |         |           |           |         |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Balance as at 31 December 2008     |     175 |        11 |         3 |     189 |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Depreciation expense for the       |       - |         6 |         1 |       7 |          | 
| period                             |         |           |           |         |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
|                                    |         |           |           |         |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Balance as at 30 June 2009         |     175 |        17 |         4 |     196 |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Depreciation expense for the       |       - |         4 |         1 |       5 |          | 
| period                             |         |           |           |         |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
|                                    |         |           |           |         |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
| Balance as at 31 December 2009     |     175 |        21 |         5 |     201 |          | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
|                                    |         |           |           |                    | 
+------------------------------------+---------+-----------+-----------+--------------------+ 
| Carrying amount                    |         |           |           |                    | 
+------------------------------------+---------+-----------+-----------+--------------------+ 
|                                    |         |           |           |                    | 
+------------------------------------+---------+-----------+-----------+--------------------+ 
| 31 December 2008                   |       - |        13 |         3 |                 16 | 
+------------------------------------+---------+-----------+-----------+--------------------+ 
|                                    |         |           |           |                    | 
+------------------------------------+---------+-----------+-----------+--------------------+ 
| 30 June 2009                       |       - |        14 |         2 |                 16 | 
+------------------------------------+---------+-----------+-----------+--------------------+ 
|                                    |         |           |           |                    | 
+------------------------------------+---------+-----------+-----------+--------------------+ 
| 31 December 2009                   |       - |        10 |         1 |                 11 | 
+------------------------------------+---------+-----------+-----------+---------+----------+ 
 
During the six months ended 31 December 2008, the Company impaired in full the 
value of the tooling, since there remained uncertainty regarding funding, the 
future of NPL-2008 and the Company. 
 
 
8.       NOTES TO THE CASH FLOW STATEMENT 
+---------------------------------------------+---------+---------+---------+ 
|                                             |     Six |     Six |    Year | 
|                                             |  months |  months |   ended | 
|                                             |   ended |   ended |      30 | 
|                                             |  31 Dec |  31 Dec |    June | 
|                                             |    2009 |    2008 |    2009 | 
|                                             | GBP'000 | GBP'000 | GBP'000 | 
+---------------------------------------------+---------+---------+---------+ 
|                                             |         |         |         | 
+---------------------------------------------+---------+---------+---------+ 
| Operating loss                              | (1,245) | (4,513) | (7,635) | 
+---------------------------------------------+---------+---------+---------+