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PLG Playgolf

0.275
0.00 (0.00%)
10 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Playgolf LSE:PLG London Ordinary Share GB00B01GB928 ORD 0.2P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.275 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Final Results

30/06/2008 7:04am

UK Regulatory


    RNS Number : 8066X
  Playgolf (Holdings) PLC
  30 June 2008
   


    30 June 2008


    Playgolf (Holdings) Plc
    ("Playgolf" or "the Company")

    Final Results for the Year Ended 31 December 2007

    Playgolf (Holdings) Plc the operator and developer of advanced multi-sport facilities in the UK, today announces audited results for the
year ended 31 December 2007.

    Highlights

    *     90 acre development at East Kilbride to open Spring 2009
    *     Heads of Terms agreed with tenants for the majority of commercial units
    *     Negotiations continuing with a number of other local authorities for similar schemes
    *     Proposed name change to PlaySport Holdings Plc to reflect core business as operator of public access multi-sports facilities


    Commenting on the results, Mike Mealey, Chairman said:

    "The Government has launched a number of financial initiatives to improve access to sports facilities for all. It is this renewed focus
on sport for the community and the requirement of local authorities to provide sports facilities that will assist us in securing both the
sites and the planning permission necessary to enable us to roll out our East Kilbride model across the United Kingdom."

    Copies of the accounts have been posted to shareholders and available for download from the Company website www. playgolfworld.com  

    Contacts:

    David Piggins/Mike Mealey
    Playgolf (Holdings) Plc                                    01926 422 320

    Paul Shackleton/Tessa Smith
    Daniel Stewart & Company plc                       020 7776 6550

    Trevor Phillips/Mark Longson
    Square1 Consulting Limited                             020 7929 5599





    PLAYGOLF (HOLDINGS) PLC

    EXECUTIVE CHAIRMAN'S REVIEW

    FOR THE YEAR ENDED 31 DECEMBER 2007


    Playgolf (Holdings Plc) - Developing Britain's Sporting Future

    I announce the results for the period to 31 December 2007. Turnover for the year was £2,384,000 (2006: £2,939,000) and gross profits
£1,378,000 (2006: £1,543,000). The loss for the year was £2,468,000 (2006: £2,127,000). Net assets per share declined from 18p per share to
9p per share. 

    2007 was a significant year in the evolution of the business. Since my appointment as Executive Chairman in May 2007 to date, as
previously announced, the composition of the Board has totally changed to bring the experience and skills required to develop the Group into
the primary developer and operator of public access sports facilities in the UK. David Piggins, Chief Executive since the flotation, has now
transferred his full time attention to the development of PowerPlay Golf which is 25% owned by Playgolf. He remains on our Board and we
thank him for his vision and contribution to the formation and development of the business to date.

    The Board has refined its strategy for the future development of the business which we believe will eliminate the recurring trading
losses and focus upon new developments similar in size to our East Kilbride project. Kilmartin Property Group, as well as being our joint
venture partner in the East Kilbride project, bought an additional 10,173,261 new Ordinary Shares of 0.2p each through a placing at 9.75
pence per share in December 2007 to take their shareholding to 20.17%.  

    Throughout the year, considerable operational progress was made with our 3 existing sites to reduce operating losses:


    Northwick Park

    We have completed works to extend Northwick Park from a 6-hole course to a 9-hole course and have replaced the original tenants of the
restaurant, gymnasium and retail unit. The loss-making joint venture we had for the restaurant was terminated and a new local tenant signed
on a 15 year lease. They completed a wholesale refit of the premises and opened for business in May 2008. We are confident that the new
operator will provide an improved offering to customers and provide a positive contribution to the Group. The retail unit has been re-let on
a 15 year lease to American Golf from November 2007 and they are already trading at far higher levels than the previous tenant. The operator
of the gymnasium exercised a break clause in their lease and we are currently running the gym although we are in negotiations with potential
operators to take this over. 

    These changes have improved the customer experience at Northwick Park which is resulting in increased turnover and profit for the
business.


    Metro Driving Range

    The Board determined that this facility was not a core asset to the Group and consequently with effect from 1 January 2008 a 10 year
lease was signed to hand over control of the site to the existing management team.


    Trafford Park, Manchester

    Following an upgrade to the facilities trading improved during the period under review. American Golf continued to improve trading and
their increased turnover triggered an up-lift in their rent in accordance with the terms of their lease.

    Whilst Metro, Trafford Centre and Northwick Park all contribute operating profit they are not sufficiently large to generate meaningful
revenues to the Group and the Board will look to dispose of these facilities in the short to medium term. 


    Future Focus

    East Kilbride

    Our joint venture with Kilmartin Property Group to develop the East Kilbride site commenced in July 2007 with a budget of £20 million.
This 90 acre site will comprise 220,000 sq. ft. of buildings, a 9-hole golf course, a driving range plus various other indoor and outdoor
sports and is substantially bigger than our other facilities. The facility will be officially opened in Spring 2009 and we will operate the
driving range and golf course. Heads of Terms are agreed with tenants for the majority of the space which we believe, when complete, will be
considered the best sporting facility in Scotland if not the UK. This development provides the template for the future growth of the
business and the size is typical for projects that we wish to roll out across the UK.

    The East Kilbride development is, as we have stated, the model for the future growth of the company. The scale of the development,
coupled with long-term commercial leases to the various operators and tenants, will provide the recurring revenues necessary to create value
for shareholders. 


    PowerPlay Golf

    PowerPlay Golf is an innovative development of the traditional game which has been hailed as golf's answer to Cricket's Twenty/20. The
Company is a substantial shareholder in PowerPlay with 25%. PowerPlay Golf is currently seeking equity funding to support its development
plan to globalise. Whilst we are confident of its future potential, as it is at an early stage in its development, we have taken the prudent
approach of continuing to hold this stake at nil value on the balance sheet.


    On going Negotiations

    Our business strategy has been designed to use the East Kilbride site as a template for future development and as such we expect to
undertake additional joint ventures projects with the Kilmartin Property Group. We believe there are substantial development opportunities
across the UK and we are already in negotiations with a number of local authorities to bring our unique multi-sport concept to local
communities.


    Rebranding

    We intend changing the name of the company from Playgolf (Holdings) Plc to PlaySport Holdings Plc to reflect the strategy of the
business to become the premier developer and operator of public access multi-sports facilities on the scale of East Kilbride. A resolution
to change the name will be proposed to shareholders at the AGM.

    The British Government recognises the important benefit of sport on the nations' health. As part of the 2012 Olympic effect the
Government has launched a number of financial initiatives to improve access to sports facilities for all. It is this renewed focus on sport
for the community and the requirement of local authorities to provide sports facilities that will assist us in securing both the sites and
the planning permission necessary to enable us to roll out our model across the United Kingdom.




    M.C. Mealey
    Executive Chairman

    27 June 2008





    PLAYGOLF (HOLDINGS) PLC

    DIRECTORS' REPORT

    FOR THE YEAR ENDED 31 DECEMBER 2007


    The directors present their report and the financial statements of the Group for the year ended 31 December 2007.

    ACCOUNTS PRODUCTION
    The financial statements for the year ended 31 December 2007 have been prepared in accordance with International Financial Reporting
Standards for the first time. Details of the policies, the effect on the results and on the comparatives are explained in Note 1.

    PRINCIPAL ACTIVITIES
    The principal activity of the Group is golf course and driving range management.

    The subsidiary undertakings principally affecting the profits and net assets of the Group in the year are listed in note 10 to the
financial statements.

    BUSINESS REVIEW
    Details of the Group`s performance during the year and expected future developments are contained in the Executive Chairman's Review.

    FINANCIAL INSTRUMENTS
    The major financial risk faced by the Group relates to funding. The policies agreed for managing these financial risks have remained the
same since the beginning of the year under review. The company finances its operations using bank balances, overdrafts and bank loans, plus
debtors and creditors. The cash flow is regularly monitored by the directors. The company does not undertake any trading in financial
instruments.

    RESULTS AND DIVIDENDS
    The audited financial statements for the year ended 31 December 2007 are set out on pages 8 to 25. The Group's loss for the year, after
taxation, was £2,468,000 (2006: £2,127,000).

    The directors recommend that no final dividend be paid (2006: £Nil).

    DIRECTORS
    The directors of the company who served during the year and their beneficial interest in the shares of the Group are shown below:-

                                         Ordinary shares of  Ordinary shares of 
                                                £0.002 each         £0.002 each 
                                           31 December 2007     31 December 2006
                                              Number      %        Number      %

             D.A.C. Piggins               12,308,845   15.8    12,041,068   20.8
  H.L.W. Fox        (resigned 24 April             -      -   10,796,586    18.6
                 2007)
               W. Frewen                   7,763,615    9.9     7,763,615   13.4
  P.A. McEvoy        (resigned 1 April             -      -             -      -
                 2007)
  N.S. McGuinness        (appointed 15             -      -             -      -
               May 2007)
              M.C. Mealey                    815,554    1.0             -      -
   J Wallace        (appointed 25 May         55,555    0.1             -      -
                 2007)
  A.L. Montgomery    (appointed 1 July             -      -             -      -
                 2007)
  D.A.T. Postins        (appointed 20              -      -             -      -
               June 2007)


    SUBSTANTIAL SHAREHOLDINGS
    In addition to the directors' shareholdings, the directors are aware of the following substantial shareholdings in the company:
                               Ordinary shares of  Ordinary shares of
                                      £0.002 each         £0.002 each
                                 31 December 2007    31 December 2006
                                    Number      %      Number       %

 Capita Trust Company Limited    3,600,000    4.6   3,600,000     6.2
 HSBC Global Custody Nominees   17,986,963   23.1   7,526,683    13.0
  J M Finn Nominees Limited      7,586,779    9.7   5,155,525     8.9
  Kilmartin Property Group      15,728,816   20.2           -       -
     MGL Nominees Limited                -      -   2,700,000     4.7
  Worldwide Nominees Limited     3,431,551    4.4           -       -


    SUPPLIER PAYMENT POLICY
    The company's policy, which is also applied to the Group, is in the absence of dispute to settle with suppliers as expeditiously as
possible within their terms of payment. Trade creditors of the Group at 31 December 2007 represent approximately 55 days purchases (2006: 90
days).

    DIRECTORS' INTERESTS IN CONTRACTS
    No director was, or is, materially interested in any contract subsisting during, or at the end of the financial year which was
significant in relation to the business of the Group except as documented in Note 19.

    COMPLIANCE
    As an AIM listed company, the Combined Code is not mandatory and the company has therefore not produced a separate Corporate Governance
or Directors' Remuneration Report.

    STATEMENT OF DIRECTORS' RESPONSIBILITIES
    The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and
International Financial Reporting Standards (IFRSs) as adopted by the European Union.

    Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state
of affairs of the company and of the profit or loss of the company for that period. In preparing those financial statements, the directors
are required to;

    *     select suitable accounting policies and then apply them consistently;
    *     make judgements and estimates that are reasonable and prudent;
    *     prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue
in business.

    The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial
position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They are also
responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and
other irregularities. 

    So far as each of the directors is aware at the time the report is approved:

    *     there is no relevant audit information of which the company's auditors are unaware; and
    *     the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to
establish that the auditors are aware of that information.


    CREST
    The company's ordinary shares are eligible for settlement through CREST, the system for securities to be held and transferred in
electronic form rather than in paper. Shareholders are not obliged to use CREST and can continue to hold and transfer shares in paper
without loss of rights.

    AUDITORS
    A resolution reappointing haysmacintyre will be proposed at the AGM in accordance with S385(2) of the Companies Act 1985.

    BY ORDER OF THE BOARD



    E.J. Wainman
    Secretary

    27 June 2008





    INDEPENDENT AUDITORS' REPORT TO THE MEMBERS

    OF PLAYGOLF (HOLDINGS) PLC

    We have audited the group and parent company financial statements of Playgolf (Holdings) plc for the year ended 31 December 2007 which
comprise the Group Income Statement, Consolidated Statement of Income and Expense, the Group and Company Balance Sheets, the Group and
Parent Company Cash Flow Statements, the Group and Parent Company Statement of Changes in Shareholders' Equity and the related notes. These
financial statements have been prepared under the accounting policies set out therein.

    This report is made solely to the company's members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work
has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company
and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

    Respective responsibilities of directors and auditors
    The directors' responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and
International Financial Reporting Standards (IFRSs) as adopted for use in the European Union are set out in the Statement of Directors
Responsibilities.

    Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International
Standards on Auditing (UK and Ireland).

    We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements have
been properly prepared in accordance with the Companies Act 1985 and Article 4 of the IAS Regulation. We also report to you if, in our
opinion, the Directors' Report is not consistent with the financial statements, if the company has not kept proper accounting records, if we
have not received all the information and explanations we require for our audit, or if information specified by law regarding directors'
remuneration and other transactions is not disclosed.

    We read other information contained in the Annual Report, and consider whether it is consistent with the audited financial statements.
This other information comprises only the Directors' Report and the Executive Chairman's Review. We consider the implications for our report
if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not
extend to any other information.

    Basis of audit opinion
    We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board.
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial. It also includes an
assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether
the accounting policies are appropriate to the group's and company's circumstances, consistently applied and adequately disclosed.  

    We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to
provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether
caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of
information in the financial statements. 

    Going Concern
    Without qualifying our opinion, we have considered the adequacy of and draw your attention to the disclosures made in note 1 to the
financial statements concerning the group's ability to continue as a going concern. The directors consider the reliance on future financing,
improvements in trading and the plans for disposal of the unprofitable subsidiaries will be sufficient to meet the working capital
requirements of the group for the next twelve months.

    Opinion
    In our opinion:

    *     the group financial statements give a true and fair view, in accordance with IFRSs as adopted for use in the European Union, of
the state of the group's affairs as at 31 December 2007 and of its loss for the year then ended; 
    *     the group financial statements have been properly prepared in accordance with the Companies Act 1985 and Article 4 of the IAS
Regulations; 
    *     the parent company financial statements give a true and fair view, in accordance with IFRSs as adopted for use in the European
Union as applied in accordance with the provisions of the Companies Act 1985, of the state of the parent company's affairs as at 31 December
2007; and 
    *     the information given in the Directors' Report is consistent with the financial statements.


    
 haysmacintyreChartered               FairfaxHouse15 Fulwood PlaceLondonWC1V 6AY
 AccountantsRegistered Auditors27
 June 2008




    PLAYGOLF (HOLDINGS) PLC

    CONSOLIDATED INCOME STATEMENT

    FOR THE YEAR ENDED 31 DECEMBER 2007

                                                          2007              2006
                                         Note            £'000             £'000

                REVENUE                   1
    Group and share of joint venture
         - continuing operations                         2,384             2,867
        - discontinued operations                            -                72
                                                 -------------      ------------
                                                         2,384             2,939
 Less: Share of joint venture's revenue                      -                 -
                                                --------------    --------------
             Group revenue                               2,384             2,939

             Cost of sales                             (1,006)           (1,396)
                                                 -------------      ------------
              GROSS PROFIT                               1,378             1,543

        Administrative expenses                        (2,998)           (2,909)
                                                --------------  ----------------
          GROUP OPERATING LOSS                         (1,620)           (1,366)

    Share of operating loss in joint                      (12)                 -
                venture

          Continuing operations                        (1,632)           (1,354)
         Discontinued operations                             -              (12)
                                                 -------------      ------------
 Operating loss of the group and joint    2            (1,632)           (1,366)
                venture

    Loss on disposal of investments                          -              (43)

        Net Finance expenditure           3              (836)             (768)

              Other income                                   -                50
                                               ---------------   ---------------
            LOSS ON ORDINARY
       ACTIVITIES BEFORE TAXATION                      (2,468)           (2,127)

       Tax on ordinary activities         6                  -                 -
                                                 -------------    --------------
            LOSS ON ORDINARY
       ACTIVITIES AFTER TAXATION                       (2,468)           (2,127)
                                                 -------------     -------------
      LOSS FOR THE FINANCIAL YEAR                      (2,468)           (2,127)
                                                        ======            ======
         Loss per share - basic
                                          8             (3.8)p            (3.7)p
                                                       =======            ======




    PLAYGOLF (HOLDINGS) PLC

    CONSOLIDATED STATEMENT OF INCOME AND EXPENSE

    FOR THE YEAR ENDED 31 DECEMBER 2007

                                              31 December 2007  31 December 2006
                                                         £'000             £'000

         LOSS FOR THE FINANCIAL YEAR                   (2,468)           (2,127)

    Unrealised surplus on revaluation of                     -               152
           leasehold properties  
      Impairment of leasehold property                 (1,000)                 -
    Reclassification of JV's property as               (2,000)                 -
                 inventories
                                                    ----------        ----------
    Total recognised expense for the year              (5,468)           (1,975)
                                                        ======            ======




    PLAYGOLF (HOLDINGS) PLC

    CONSOLIDATED BALANCE SHEET 

    AT 31 DECEMBER 2007

                                                              2007          2006
                                               Note          £'000         £'000

                    ASSETS

              Non-current assets
        Property, plant and equipment            9          15,888        21,843
    Provision for joint venture investment
           Share of gross assets                             1,347             -
           Share of gross liabilities                      (1,387)
                                                      ------------  ------------
            Share of net liabilities                          (40)             -
             Loan to joint venture                             444             -
                                                      ------------  ------------
                                                               404             -
                                                      ------------  ------------
                                                            16,292        21,843
                                                      ------------  ------------
                Current assets
                 Inventories                    11               -            15
         Trade and other receivables            12             422           394
          Cash and cash equivalents             13           1,246            83
                                                      ------------  ------------
                                                             1,668           492
                                                      ------------  ------------
                 TOTAL ASSETS                               17,960        22,335
                                                           =======       =======
                    EQUITY
   Capital and reserves attributable to the
        Company's equity shareholders
           Called up share capital              14             156           116
            Share premium account                            4,919         3,132
                Merger reserve                                 467           467
             Revaluation reserve                             4,284         9,421
                Other reserves                                 400           400
              Retained earnings                            (3,510)       (3,179)
                                                      ------------  ------------
                 TOTAL EQUITY                                6,716        10,357
                                                      ------------  ------------
                 LIABILITIES
           Non current liabilities
                  Borrowings                    15          10,532        10,950

             Current liabilities
                  Borrowings                   13,15            41            43
           Trade and other payables             16             671           985
                                                      ------------  ------------
                                                               712         1,028
                                                      ------------  ------------
              TOTAL LIABILITIES                             11,244        11,978
                                                      ------------  ------------
         TOTAL EQUITY AND LIABILITIES                       17,960        22,335
                                                           =======       =======

    The financial statements were approved by the Board of Directors on 27 June 2008 and signed on its behalf by:

    
 D.A .C. PigginsDirector  D.A.T.PostinsDirector




    PLAYGOLF (HOLDINGS) PLC

    COMPANY BALANCE SHEET 

    AT 31 DECEMBER 2007

                                                           2007             2006
                                         Note             £'000            £'000

                 ASSETS

           Non-current assets
     Property, plant and equipment         9                  -                3
              Investments                 10                 20               20
                                                ---------------  ---------------
                                                             20               23
                                                ---------------  ---------------
             Current assets
      Trade and other receivables         12              5,201            3,059
       Cash and cash equivalents          13              1,164               20
                                                ---------------  ---------------
                                                          6,365            3,079
                                                ---------------  ---------------
              TOTAL ASSETS                                6,385            3,102
                                                      =========        =========
                 EQUITY
  Capital and reserves attributable to
   the Company's equity shareholders
        Called up share capital           14                156              116
         Share premium account                            4,919            3,132
           Retained earnings                                112          (1,070)
                                                ---------------  ---------------
              TOTAL EQUITY                                5,187            2,178
                                                ---------------  ---------------
              LIABILITIES
        Non current liabilities
               Borrowings                 15                645              592

          Current liabilities
               Borrowings                13,15               10                -
        Trade and other payables          16                543              332
                                                ---------------  ---------------
                                                            553              332
                                                ---------------  ---------------
           TOTAL LIABILITIES                              1,198              924
                                                ---------------  ---------------
      TOTAL EQUITY AND LIABILITIES                        6,385            3,102
                                                        =======          =======

    The financial statements were approved by the Board of Directors on 27 June 2008 and signed on its behalf by:



 D.A.C. Piggins  D.A.T Postins
    Director       Director




    PLAYGOLF (HOLDINGS) PLC

    CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

    FOR THE YEAR ENDED 31 DECEMBER 2007

                                             Share Premium
                                      Share                  Revaluation       Other      Merger    Retained
                                    Capital        Account       Reserve    Reserves     Reserve    Earnings       Total
                                      £'000          £'000         £'000       £'000       £'000       £'000       £'000

   Balance at 1 January 2006            106          2,475         9,753         400         467     (1,536)      11,665
       Loss for the year                  -              -             -           -           -     (2,127)     (2,127)
  Share issues (net of costs)            10            657             -           -           -           -         667
   Unrealised surplus on the
    revaluation of leasehold
            premises
                                          -              -           152           -           -           -         152
            Transfer                      -              -         (137)           -           -         137           -
      Sale of subsidiary                  -              -         (347)           -           -         347           -
                                 ----------   ------------  ------------  ----------  ----------  ----------  ----------
      At 31 December 2006               116          3,132         9,421         400         467     (3,179)      10,357
       Loss for the year                  -              -             -           -           -     (2,468)     (2,468)
  Share issues (net of costs)            40          1,787             -           -           -           -       1,827
            Transfer                      -              -         (137)           -           -         137           -
    Impairment of leasehold               -              -       (1,000)           -           -           -     (1,000)
            property
 Realisation of revaluation on            -              -       (2,000)           -           -       2,000           -
     disposal of subsidiary
    Reclassification of JV's              -              -       (2,000)           -           -           -     (2,000)
    property held for resale
                                 ----------   ------------  ------------  ----------  ----------  ----------  ----------
      At 31 December 2007               156          4,919         4,284         400         467     (3,510)       6,716
                                     ======        =======       =======      ======      ======      ======      ======




    PARENT COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

                                           Share Premium
                                    Share                  Revaluation         Other        Merger    Retained
                                  Capital        Account       Reserve      Reserves       Reserve    Earnings       Total
                                    £'000          £'000         £'000         £'000         £'000       £'000       £'000

  Balance at 1 January 2006           106          2,475             -             -             -       (529)       2,052
      Loss for the year                 -              -             -             -             -       (541)       (541)
 Share issues (net of costs)           10            657             -             -             -           -         667
                              -----------   ------------  ------------  ------------  ------------  ----------  ----------
     At 31 December 2006              116          3,132             -             -             -     (1,070)       2,178
     Profit for the year                -              -             -             -             -       1,182       1,182
 Share issues (net of costs)           40          1,787             -             -             -           -       1,827
                              -----------   ------------  ------------  ------------  ------------  ----------   ---------
     At 31 December 2007              156          4,919             -             -             -         112       5,187
                                  =======        =======       =======       =======       =======      ======      ======




    PLAYGOLF (HOLDINGS) PLC

    CONSOLIDATED CASH FLOW STATEMENT

    FOR THE YEAR ENDED 31 DECEMBER 2007

    
                                                                                               2007            2006
                                                                               Note           £*000           £*000
 Cash flows from operating activities                                                                              
 Loss for the year                                                                          (2,468)         (2,127)
 Adjustments for:                                                                                                  
 Net finance expenditure                                                                        808             768
 Loss on disposal of investments                                                                  -              43
 Other income                                                                                     -            (50)
 Depreciation and amortisation                                                                  544             505
 Other income                                                                                     -              50
 Decrease in inventories                                                                         15              20
 (Increase)/decrease in debtors                                                                (42)              88
 Increase/(decrease) in creditors                                                               366            (35)
 Share of joint venture loss                                                                     40               -
                                                                                     --------------  --------------
 Net cash used in operating activities                                                        (737)           (738)
                                                                                     --------------  --------------
                                                                                                                   
 Cash flows from investing activities                                                                              
 Net finance expenditure                                                                      (808)           (768)
 Purchase of tangible fixed assets                                                            (253)           (880)
 Saleof subsidiary undertaking                                                                2,000             426
 Net cash transferred with subsidiary undertaking                                               (2)            (14)
 Loan to joint venture                                                                        (444)               -
                                                                                     --------------  --------------
 Net cash generated from/(used in) investing activities                                         493         (1,236)
                                                                                     --------------  --------------
                                                                                                                   
 Cash flows from financing activities                                                                              
 Issue of ordinary share capital (net of issue costs)                                         1,827             667
 Long term loans received                                                                         -             911
 Long term loan repayments                                                                    (418)               -
                                                                                     --------------  --------------
 Net cash generated from financing activities                                                 1,409           1,578
                                                                                     --------------  --------------
                                                                                                                   
 Net increase/(decrease) in cash, cash equivalents and bank overdrafts           13           1,165           (396)
 Cash, cash equivalents and bank overdrafts at beginning of the year                             40             436
                                                                                     --------------  --------------
 Cash, cash equivalents and bank overdrafts at end of the year                   13           1,205              40
                                                                                           ========        ========




    PLAYGOLF (HOLDINGS) PLC

    PARENT COMPANY CASH FLOW STATEMENT

    FOR THE YEAR ENDED 31 DECEMBER 2007

                                                                                       2007          2006       
                                                                              Note    £*000         £*000       
 Cash flows from operating activities                                                                           
 Profit/(loss) for the year                                                                  1,182         (541)
 Adjustments for:                                                                                               
 Net finance expenditure                                                                      (36)           (4)
 Depreciation and amortisation                                                                   3             3
 Increase in debtors                                                                       (1,698)       (1,245)
 Increase in creditors                                                                         211           220
                                                                                    --------------  ------------
 Net cash used in operating activities                                                       (338)       (1,567)
                                                                                                                
 Cash flows from investing activities                                                                           
 Net finance expenditure                                                                        36             4
 Loan to joint venture                                                                       (444)             -
                                                                                    --------------  ------------
 Net cash generated (used in)/from investing activities                                      (408)             4
                                                                                    --------------  ------------
                                                                                                                
 Cash flows from financing activities                                                                           
 Issue of ordinary share capital (net of issue costs)                                        1,827           667
 Long term loans received                                                                       53           592
                                                                                    --------------  ------------
 Net cash generated from financing activities                                                1,880         1,259
                                                                                    --------------  ------------
                                                                                                                
 Net increase/(decrease) in cash, cash equivalents and bank overdraft                        1,134         (304)
 Cash, cash equivalents and bank overdraft at beginning of the year             13              20           324
                                                                                    --------------  ------------
 Cash, cash equivalents and bank overdraft at end of the year                   13           1,154            20
                                                                                          ========       =======




    PLAYGOLF (HOLDINGS) PLC

    NOTES TO THE FINANCIAL STATEMENTS

    FOR THE YEAR ENDED 31 DECEMBER 2007


    1.    ACCOUNTING POLICIES

    Basis of preparation
    The financial statements are prepared on the historical cost basis, modified by the revaluation of leasehold property, in accordance
with the applicable accounting standards. It comprises the consolidated financial information of Playgolf (Holdings) Plc and its
subsidiaries.

    These financial statements have been prepared in accordance with IFRS 1, First-time Adoption of IFRS. These financial statements have
been prepared in accordance with those IFRS standards and IFRIC interpretations issued and effective or issued and early adopted as at the
time of preparing these statements (June 2008). The policies set out below have been consistently applied to all the periods presented.  

    Playgolf (Holdings) Plc financial statements were prepared in accordance with UK Generally Accepted Accounting Principles (UK GAAP)
until 31 December 2006. UK GAAP differs in some areas from IFRS. In preparing the financial statements, the directors have amended certain
accounting methods applied in the UK GAAP financial statements to comply with IFRS.  

    There are no reconciling differences in the numbers previously reported for the comparative period, ended 31 December 2006, after the
adoption of IFRS.

    The Company's transition date is 1 January 2006 and it prepared its opening IFRS balance sheet at that date. The Company's IFRS adoption
date is 1 January 2007.

    Going concern
    The directors have obtained confirmation that repayment of a proportion or all of the Groups' bank loans will not be required in the
next twelve months if results are in line with the business plan.  

    This, together with improvements in trading and the plans for disposal of the unprofitable subsidiaries will be sufficient to meet the
Group's working capital requirements for the next twelve months.

    The directors are therefore of the opinion that the financial statements should be prepared on a going concern basis.

    Basis of consolidation
    The Group financial statements consolidate the financial statements of Playgolf (Holdings) Plc and its subsidiary undertakings drawn up
to 31 December each year.

    The results of subsidiaries acquired are accounted for from the effective date of acquisition, using the acquisition method. 

    At 31 December 2007, Playgolf (Holdings) Plc owned 50% of the issued share capital of Playgolf Kilmartin Limited, a company incorporated
in England and Wales. The joint venture is accounted for using the equity method.

    Property, plant and equipment
    Leasehold land and buildings are stated at valuation, net of depreciation and any provision for impairment. The Group has a policy of
revaluing all leasehold property, by an external valuer, upon acquisition and on completion of construction. Thereafter, the valuation will
be performed annually by the directors and externally at least every eight years.

    Other tangible fixed assets are stated at cost, net of depreciation and any provision for impairment. Depreciation is provided on all
tangible fixed assets, once completed, at rates calculated to write off the cost, less estimated residual value, of each asset on a
straight-line basis over its expected useful life, as follows:

    
 Leasehold land and                  over the shorter of the lease term and 50 years20 -33% straight
 buildingsOther assets                                                                          line


    Investments
    Except as stated below, fixed asset investments are shown at cost less provision for impairment.

    In the Company balance sheet, the investment in Golf Learning Centres Limited and Work For Fun Limited is measured by reference to the
nominal value of the shares issued as consideration. These shares qualified for merger relief and therefore the premium is ignored.

    Inventories
    Inventories represent goods for resale and are stated at the lower of cost and net realisable value.

    Cash and Cash Equivalents
    Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities on the balance sheets.

    Deferred Taxation
    Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where
transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at
the balance sheet date. Timing differences between the Group's taxable profits and its results as stated in the financial statements that
arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the
financial statements.

    Revenue Recognition
    Turnover represents amounts receivable for goods and services net of VAT.

    Leases
    Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged
to the profit and loss account as incurred.

    Segmental Information
    The group has one geographical segment, which is the United Kingdom and the Republic of Ireland. The group has one business segment
which is golf course and driving range management.

    Warrants
    IFRS2 requires the Group to recognise a cost of raising funds in respect of granting warrants to third parties. This expense, which is
calculated by reference to the fair value of the warrants granted, is recognised on a straight line basis over the vesting period based on
the Group's estimate that the warrants will eventually vest. The Directors have adopted the Black Scholes model to estimate the value of
warrants granted.


 2.                     OPERATING LOSS                      2007   2006
                                                           £'000  £'000
           Operating loss is stated after charging:

                         Depreciation                        544    505
           Loss on sale of fixed asset investments             -     43
       Operating lease rentals    - land and buildings       434    388
                                 - other                       2      8
          Auditors' remuneration    - audit services          24     21
                 - other services pursuant to legislation      9      8
                  - other services relating to taxation        6      6
                                                           =====  =====


 3.          FINANCE EXPENDITURE/(INCOME)                2007       2006
                                                        £'000      £'000

     Interest payable on bank loans and overdrafts        877        776
                  Interest receivable                    (41)        (8)
                                                    ---------  ---------
                                                          836        768
                                                        =====      =====


 4.  EMPLOYEE BENEFIT EXPENSE (including directors)        2007    2006
                                                            No.     No.
        The average monthly number of employees 
          (including Executive Directors) was:               68          80
                                                         ======      ======
        Their aggregate remuneration comprised:
                   Wages and salaries                     1,243       1,329
                 Social security costs                      111         136
                     Pension costs                            7           -
                                                     ----------  ----------
                                                          1,361       1,465
                                                         ======      ======


 5.                 DIRECTORS' REMUNERATION                      2007       2006
                                                                £'000      £'000
      The total amounts for Directors' emoluments were as
                            follows:
                            Salaries                              367        229
                        Directors' fees                            65         35
                Compensation for loss of office                   138          -
                         Pension costs                              7          -
                                                             --------  ---------
                                                                  577        264
                                                                =====      =====
                     Highest paid director:
                           Emoluments                             173         96
                                                                =====      =====

   Directors' emoluments include £53,958 (2006 - £nil) which is included in the
                       joint venture's financial statements.


  6.     TAX ON PROFIT ON                    2007                  2006
       ORDINARY ACTIVITIES
                                            £'000                 £'000
 (a).   Analysis of charge
           in the year

        Current tax charge
        UK corporation tax                      -                     -
           (Note 6(b))
                                            =====                 =====
 (b).   Factors affecting
        the tax charge for
             the year

         The differences between the total current tax shown above, and
              the amount calculated by applying the standard rate of UK
                  corporation tax to the loss before tax is as follows:


                                                                2007        2006
                                                               £'000       £'000
 
          Loss on ordinary activities before tax             (2,468)     (2,127)
 
   Loss on ordinary activities before tax multiplied by
   the standard UK rate of corporation tax of 30% (2006:       (740)       (638)
                           30%)
                        Effects of:
         Expenses not deductible for tax purposes                 18           6
              Loss on disposal of investments                      -          13
         Capital allowances less than depreciation               158          58
                 Other timing differences                       (22)           -
             Unutilised losses carried forward                   586         561
                                                          ----------  ----------
          Current tax charge for year (Note 6(a))                  -           -
                                                              ======      ======

      The Group is carrying forward losses of £2,547,899 (2006: £2,790,572),
        including £64,097 relating to the joint venture and non-trade loan
                relationships deficit of £654,091 (2006: £451,959).


 7.                        PROFIT FOR THE FINANCIAL YEAR 

     The Parent company has taken advantage of section 230 of the Companies Act
         1985 and has not included its own profit and loss account in these
      financial statements. The Group loss for the year includes a profit after
       taxation of £1,182,000 (2006: Loss £541,000) which is dealt with in the
                        financial statements of the company.


 8.                  EARNINGS PER SHARE                         2007        2006
                                                               £'000       £'000
      The calculations for earnings per share are based
                   on the following losses
                    and numbers of shares:

                 Loss for the financial year                 (2,468)     (2,127)
                                                              ======      ======
              Weighted average number of shares               Number      Number

                For basic earnings per share              64,786,952  57,305,256
                                                            ========   =========


 9.  PROPERTY, PLANT AND              Leasehold
          EQUIPMENT
                                       Land and                 Other
                                      Buildings                Assets                 Total
            GROUP                         £'000                 £'000                 £'000

      Cost or valuation
      At 1 January 2006                  21,719                   877                22,596
          Additions                         794                    86                   880
         Revaluations                       152                     -                   152
        Disposed with                     (400)                 (101)                 (501)
          subsidiary
                                    -----------            ----------          ------------
      At 1 January 2007                  22,265                   862                23,127
          Additions                          64                   189                   253
     Removed on disposal                (5,664)                     -               (5,664)
        of subsidiary
                                    -----------            ----------          ------------
     At 31 December 2007                 16,665                 1,051                17,716
                                    -----------            ----------          ------------
         Depreciation
      At 1 January 2006                     463                   472                   935
     Charge for the year                    369                   136                   505
        Disposed with                      (60)                  (96)                 (156)
          subsidiary
                                     ----------            ----------          ------------
      At 1 January 2007                     772                   512                 1,284
          Impairment                    (1,000)                     -               (1,000)
         Reversal of                      1,000                     -                 1,000
     impairment as asset
        disposed with
          subsidiary
     Charge for the year                    362                   182                   544
                                     ----------            ----------          ------------
     At 31 December 2007                  1,134                   694                 1,828
                                     ----------            ----------          ------------
        Net book value
     At 31 December 2007                 15,531                   357                15,888
                                         ======                ======               =======
     At 31 December 2006                 21,493                   350                21,843
                                         ======                ======               =======
           COMPANY

             Cost
     At 1 January 2006, 1
     January 2007 and 31                                           11                    11
        December 2007
                                                          -----------           -----------
         Depreciation
      At 1 January 2006                                             5                     5
     Charge for the year                                            3                     3
                                                          -----------           -----------
      At 1 January 2007                                             8                     8
     Charge for the year                                            3                     3
                                                          -----------            ----------
     At 31 December 2007                                           11                    11

        Net book value
     At 31 December 2007                                            -                     -
                                                               ======                 =====
     At 31 December 2006                                            3                     3
                                                               ======                 =====

      The leasehold premises of the trading subsidiaries were revalued, in accordance with
                     the Group's accounting policy, on the following dates:


        Subsidiary               Date                Valuer                     Valuation
                                                                                    £'000
 
      Golf Learning          January 2005        Humberts Leisure                   2,650
     Centres Limited
    Playgolf (Trafford        July 2000          Strutt & Parker                    1,600
     Centre) Limited
   Playgolf (Northwick        June 2006          Humberts Leisure                  10,500
      Park) Limited 
 
 
      In the directors' opinion, the carrying value of the Group's leasehold land and
             buildings equates to the open market value as at 31 December 2007.
 
 
     The historical cost of leasehold land and buildings shown at the valuations above
    together with subsequent expenditure is £9,909,000. The Net Book Value based on the
       original cost would be £9,176,000 and the excess depreciation relating to the
             revaluation is transferred annually from the revaluation reserve.


 10.  FIXED ASSETS INVESTMENTS

              COMPANY

      Subsidiary undertakings

                                            £'000
                    Cost
   At 1 January 2007 and 31 December 2007      20
                                           ======
               Net book value                  20
                                           ======
        Principal group investments

    The Company had investments in the following subsidiary undertakings at the
   year-end, all of which are incorporated and registered in England and Wales.

        Subsidiary undertakings           Principal activity      Holding
 
     Golf Learning Centres Limited     Driving range management      100%
   Playgolf (Barnet Copthall) Limited       Holding company          100%
   Playgolf (Northwick Park) Limited   Golf / Leisure management     100%
   Playgolf (Trafford Centre) Limited  Driving range management      100%
            Playgolf Limited                Holding company          100%
          Work For Fun Limited              Holding company          100%
        Mix Bars Leisure Limited         Restaurant management       100%
 
                 GROUP

       The group has a joint venture investment, with a 50% holding, in the
    following company which is incorporated and registered in England and Wales
                                    (Note 17):

   Playgolf Kilmartin Limited  Golf / Leisure management  


 11.    INVENTORIES                    Group      Company
                            2007        2006    2007     2006
                           £'000       £'000   £'000    £'000

      Goods for resale               -         15       -       -
                                ======     ======  ======  ======


 12.    TRADE AND OTHER                               Group           Company
          RECEIVABLES
                                    2007          2006        2007          2006
                                   £'000         £'000       £'000         £'000

       Trade receivables              97           124           3             -
        Receivables from               -             -       4,646         2,985
       group undertakings
        Receivables from               -             -         444             -
         joint venture
       Other receivables             111           124          80            71
        Prepayments and              214           146          28             3
         accrued income
                              ----------    ----------  ----------  ------------
                                     422           394       5,201         3,059
                                  ======        ======      ======       =======

    Included in other debtors in the previous year, for both the Company and
   the Group, was £25,000 due after more than one year (Note 19). In addition,
   for the Company, amounts owed by group undertakings are due after one year.

 13.     CASH AND CASH                       Group                                    Company
          EQUIVALENTS
                                          2007                 2006                  2007                  2006
                                         £'000                £'000                 £'000                 £'000

      Cash at bank and in                1,246                   83                 1,164                    20
              hand
                                        ======               ======                ======               =======

          Cash, cash equivalents and bank overdrafts include the following for the purpose of the cash flow
                                                     statement:

         Cash and cash                   1,246                   83                 1,164                    20
          equivalents
      Overdrafts (Note 15)                (41)                 (43)                  (10)                     -
                                    ----------           ----------            ----------          ------------
                                         1,205                   40                 1,154                    20
                                        ======               ======                ======               =======


 14.    CALLED UP SHARE                     2007                  2006
            CAPITAL
                                           £'000                 £'000
           Authorised
      500,000,000 ordinary                 1,000                 1,000
        shares of £0.002
              each
                                      ----------          ------------
                                           1,000                 1,000
                                          ======               =======
      Allotted, called-up
         and fully paid
      77,995,002 ordinary
        shares of £0.002                     156                   116
              each
       (2006: 57,990,188
       ordinary shares of
          £0.002 each)
                                      ----------          ------------
                                             156                   116
                                          ======               =======

        On 4 May 2007, 8,111,108 ordinary shares of £0.002 each were
       issued for cash consideration of £730,000. In addition, on 10
        May 2007, a further 1,720,445 ordinary shares of £0.002 each
         were issued for cash consideration of £154,840, and on 21
        December 2007 10,173,261 ordinary shares of £0.002 each were
                issued for cash consideration of £991,893. 


        During the year ended 31 December 2004, the company issued a
         total of 1,199,685 warrants. All of the warrants are fully
          vested. The period of exercise expires on 14 June 2009.


 15.       BORROWINGS                         Group                                      Company
                                            2007                  2006                  2007                  2006
                                           £'000                 £'000                 £'000                 £'000
      Amounts falling due
         after one year

           Bank loans                     10,532                10,950                   645                   592
                                      ----------            ----------            ----------          ------------
                                          10,532                10,950                   645                   592
                                          ======                ======                ======               =======
         Bank loans are
          repayable as
            follows:
      Between one and two                 10,532                10,950                   645                   592
             years
      Between two and five                     -                     -                     -                     -
             years
        After five years                       -                     -                     -                     -
                                      ----------            ----------            ----------          ------------
                                          10,532                10,950                   645                   592
                                          ======                ======                ======               =======

          The terms of the bank loans are currently being renegotiated. The bank loans are secured against the
                          properties of the operating companies and other assets of the Group.

                                             Group          Company
                                          2007    2006    2007     2006
   Amounts falling due within one year   £'000   £'000   £'000    £'000
 
             Bank overdrafts                41      43      10        -
                                        ======  ======  ======  =======


 16.  TRADE AND OTHER PAYABLES           Group                  Company
                                       2007        2006        2007       2006
         Amounts falling due          £'000       £'000       £'000      £'000
           within one year

           Trade payables               228         564          18         37
        Amounts due to group              -           -         272        270
            undertakings
        Amounts due to joint            225           -         225          -
           venture partner
       Other taxes and social            42          48          17         12
              security
           Other payables                64         125           -          -
        Accrued expenses and            112         248          11         13
           deferred income
                                 ----------  ----------  ----------  ---------
                                        671         985         543        332
                                     ======      ======      ======      =====


 17.                       SALE OF SUBSIDIARY UNDERTAKING

        On 12 January 2007 the group disposed 50% of its holding in Playgolf
       Kilmartin Limited to a joint venture partner for net consideration of
                                    £2,000,100. 


          Prior to this disposal, the leasehold property held by Playgolf
         Kilmartin Limited was impaired by £1m. In addition, the leasehold
       property was then reclassified as inventories, resulting in a release
                     from the Group revaluation reserve of £2m.

                     Net assets disposed of                                                                                                 
                          £'000
 
                          Fixed assets                                                                                                      
                          2,332
                             Debtors                                                                                                        
                              6
                              Cash                                                                                                          
                              1
                            Creditors                                                                                                       
                          (339)
                                                                                                                                            
                     ----------
                                                                                                                                            
                          2,000
                                                                                                                                            
                         ======
 
                          Satisfied by
                              Cash                                                                                                          
                          2,000
                                                                                                                                            
                         ======
 
   On a return of capital on liquidation or capital reduction or otherwise, the joint venture partner Kilmartin Holdings Limited, is
entitled to the first £2,000,000 of any
                                                                 surplus assets of Playgolf Kilmartin Limited.


 18.                                          OPERATING LEASE COMMITMENTS

      The operating lease expenditure charged to the income statement during the year is disclosed in note 2. The
             future aggregate minimum lease payments under non-cancellable operating leases are as follows:

                                                                  2007                                        2006
                                        Land and                                    Land and
                                       Buildings                 Other             Buildings                 Other
                                           £'000                 £'000                 £'000                 £'000
             Group
          Expiry date
          Within one year                      -                     2                     -                     3
          Between two and                      -                     -                     -                     -
           five years
          After five years                18,535                     -                18,923                     -
                                      ----------            ----------            ----------            ----------
      At 31 December 2007                 18,535                     2                18,923                     3
                                          ======                ======                ======                ======


 19.  RELATED PARTY TRANSACTIONS

    Included in other debtors at 31 December 2007 is an amount due from D.A.C. Piggins, Director of £25,000. This has been repaid since the
year end.

    Also included in other debtors at 31 December 2007 is a loan of £35,000 to PowerPlay Golf Limited. D.A.C. Piggins, N.S. McGuinness and
M.C. Mealey are directors of the company's holding company. Subsequent to the year end PowerPlay Golf Limited also became an associate
company of Playgolf Holdings Plc.


 20.  FINANCIAL RISK MANAGEMENT

    (a)    Financial risk management

    The Group's activities give rise to a number of financial risks: market risk, credit risk and liquidity risk. Market risk includes cash
flow and fair value interest rate risk. The Group has in place risk management policies that seek to limit the adverse effects on the
financial performance.  

    (i)    Market risk

    The Group activities expose it primarily to the financial risks of changes in interest rates.  There has been no significant change to
the Group's exposure to market risks or the manner in which it manages and measures the risk.

    Interest rate
    As the Group has no significant interest-bearing assets, the Group's revenues and operating cash flows are substantially independent of
changes in market interest rates.

    The Group's interest rate risk arises from its long term borrowings. As the borrowings are bound to the LIBOR, the Group is exposed to
changes in the LIBOR throughout the financial year.

    At 31 December 2007, if the LIBOR had been 0.5% higher, with all other variables held constant, the post-tax loss for the year would
have been £50,000 higher.

    (ii)    Credit risk

    As the Group's business mainly consists of cash sales, trade receivables are limited. However, ongoing credit evaluation is performed on
the financial condition of all accounts receivable.

    The credit risk on liquid funds is limited because counterparties are banks with credit-ratings assigned by international credit-rating
agencies.

    (iii)    Liquidity risk

    Ultimate responsibility for liquidity risk management rests with the Board of directors, which has built an appropriate liquidity risk
management framework for the management of the Group's short, medium and long-term funding and liquidity management requirements. The Group
manages liquidity risk by maintaining adequate reserves, banking facilities and borrowing facilities by continuously monitoring forecast and
actual cash flows.

    (b)    Capital risk management

    The capital structure of the Group consists of debt, cash and cash equivalents and equity attributable to shareholders of the Group,
comprising issued capital, reserves and retained earnings.

    The Group's objectives when managing capital are to safeguard the group's ability to continue as a going concern in order to provide
returns to shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

    The Group manages capital and for the purpose of proper capital structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The policies and processes have not been
changed during the period ending 31 December 2007 nor for the period ending 31 December 2006.

    (c)    Financial instruments

    The Group does not use derivative financial instruments.

    (d)    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 1 to the financial statements.

    The Group applied the following methods and assumptions during the estimation of fair value of financial instruments:
    Receivables and deposits at banks
    All such assets mature within 3 months and therefore the carrying value is similar to fair value due to shortness of these instruments. 

    Loan liabilities
    Fair value of short term liabilities is similar to its carrying value due to shortness of these instruments. For long term liabilities,
contracted interest rates do not significantly defer from current market interest rates, and due to that their fair value is similar to its
carrying value.
    Other financial instruments
    Financial instruments of the Group which are not valuated at fair value are trade accounts receivable, other receivables, trade accounts
payable and other payables. Historic carrying value of assets and liabilities, including the provisions, which are in accordance with the
usual business conditions, is similar to its fair value.

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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