03/12/2007
Green Chemicals plc -
Half Year Interim Results

green chemicals plc

( the “Company”)

HALF YEAR RESULTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007

green chemicals plc, the developer of “cleaner, greener and safer” chemicals with industrial applications initially in textiles, pre-treatment of wool and hair colorant treatment, today announces its half year results, for the six months ended 30 September 2007.

Commenting on the results, David Norwood, Chairman of green chemicals plc said: “I am pleased to report that in the six months to 30 September 2007, the Company made good progress towards the commercialisation of a number of applications of its patented chemistry platform. This progress continues in the second half of the current financial year.”

He added, “green chemicals plc has made good progress to date. Our business model is to develop “cleaner, greener and safer chemicals”, which it will supply through outsourced manufacture before trade selling each vertical market business to fund returns to shareholders and the development of new applications.”

Highlights:

• First full financial period to include the operations of Perachem
• The key industrial applications for green chemicals plc’s chemistry platform have been identified as:
• flame retardant coatings for fabrics;
• the pre-treatment of wool before dyeing and/or printing, and;
• the production of safer and less toxic products for hair treatment.
• A letter of intent has been signed with Good Hair Days for the production of a number of hair colorants and lighteners
• Operating loss of £400,942 includes increased costs from:
• new market research;
• new patents;
• new sales and promotional activities, and;
• amortisation of intangible assets
• New Chairman, David Norwood appointed

For further information please visit www.greenchemicalsplc.com or contact:

Andrew Bayliff /	Clemmie Carr
Stephen Winston	Simon Hudson
green chemicals plc	Tavistock Communications
Tel: +44 (0) 870 8354351	Tel: +44 207 920 3150

Graham Atthill-Beck

Peter Trevelyan-Clark

Hichens Harrison & Co. plc

Tel: +971 50 856 9408 / +44 20 7 588 5171

Chairman’s Statement

This is my first statement to shareholders following my appointment as Chairman in October. I am pleased to report that in the six months to 30 September 2007, the Company made good progress towards the commercialisation of a number of applications of its patented chemistry platform. This progress continues in the second half of the current financial year.

Results

The six months under review is the first full financial period to include the operations of Perachem Limited, which was acquired by the Company (then named Eco Chemical Enterprises plc) in January 2007. For this reason, there are no comparative figures available for the first half of 2006.

Perachem was established in 2004 as a spin-out from the University of Leeds to commercialise patented technology to produce industrial chemicals for a variety of treatment applications that would be “cleaner, greener and safer” – but no less effective or more expensive – than the existing standard market products. The spin-out was initially backed by IP Group plc, which remains the Company's largest external shareholder.

The operating loss at £400,942, which includes £154,121 amortisation of intangible assets, reflects increased research into a number of carefully targeted markets and a significant expansion of promotional and sales activities aimed at the current leading suppliers of chemicals to these markets. The operating loss for the year to 31 March 2007, at £254,805, included only just less than three months of the Company’s ownership and funding of Perachem.

The loss for the period, after interest receivable of £8,229 and a tax credit arising from losses carried forward of £17,356, amounted to £375,357 (year to 31 March 2007: £206,955). This resulted in a cash outflow for the period of £266,096, reducing cash balances to a period end figure of £220,266.

At the current stage of the Company's development, the Directors do not believe it would be appropriate to declare any dividend.

In order to provide the additional funds needed to accelerate the development of green chemicals plc, the Company has provisionally arranged, subject to this announcement, a placing under the Directors’ existing share allotment powers, of new ordinary shares with a number of existing shareholders to raise approximately £500,000 before expenses. A further announcement on this fundraising will be made as soon as the detailed terms have been determined.

Review

The Company’s chemistry platform has the potential to yield commercial applications across a number of industries. As a small company with limited resources, both financial and human, the Directors have chosen to concentrate initially on three applications that the management team believes can be most quickly progressed to revenue generation. These are:

· flame retardant coatings for fabrics;

· the pre-treatment of wool before dyeing and/or printing, and;

· the production of safer and less toxic products for hair treatment.

In flame retardants, the Company’s own laboratory trials have been highly successful in meeting the key requirements of the industry and it has now commenced final stage trials with a leading British-based European fabric coater. In wool, in-house laboratory work has been encouraging and we have developed a product ready for full scale trialling which we are now discussing with potential customers. Finally, in hair treatment, we have signed a letter of intent with Jemella Group, which trades as Good Hair Days (GHD), to develop an exclusive range of user and environmentally friendly lightening and colouring products for hair.

We expect to progress each of these applications during the remainder of this financial year.

Board and Management

Two of the Company’s founder non-executive Directors, Michael Underwood and Richard Farleigh (my predecessor as Chairman), have stood down from the Board as we restructured to take what is now a publicly-quoted company to its next stage of growth. Both Richard and Michael have made significant contributions to the early development of the Company and, on behalf of the Directors and shareholders, I thank them for their help and advice in getting green chemicals plc to its present position .

I was appointed Chairman in October. The largest part of my career has been spent developing technology companies. Nine years ago, I founded a technology advisory boutique, IndexIT Partnership that was later acquired by what is now Evolution Securities. At Evolution, I helped establish the initial technology partnership with the University of Oxford,  which became IP Group. I am currently an executive director with responsibility for special projects at IP Group, which, through its IP Ventures Fund, is a substantial shareholder of green chemicals plc.

There has been one recent, senior appointment: Kevin Byrne has accepted our invitation to head up the commercialisation of our applications for the wool industry. Kevin was most recently involved in research and development at Woolmark; his industry contacts and knowledge will be invaluable as we progress this area of our business.

Outlook

I anticipate the second half will see successful external accreditation of product from the industrial trials for the Company’s flame retardant fabric coatings and the first product shipments to the customer from an outsourced manufacturer. In wool, we hope to have industrial trials agreed, if not running, by the financial year-end and we will also have begun product development of the GHD's hair products.

green chemicals plc has made good progress to date. Our business model is to develop “cleaner, greener and safer chemicals”, which it will supply through outsourced manufacture before trade-selling each vertical market business to fund returns to shareholders and the development of new applications. There is an exciting pipeline of opportunities to pursue in the three initial areas targeted for commercialisation; with the completion of the fundraising, the Company will have the finances to allow it to exploit fully its proprietary technology and knowhow.

I look forward to helping green chemicals plc reach its full potential and to reporting further progress to shareholders as it arises.

David Norwood

Chairman

3rd December 2007

CONSOLIDATED INCOME STATEMENT

For the six months ended 30 Septmeber 2007

	Unaudited 6 months to 30 September 2007	Audited Year to 31 March 2007
	£	£
Turnover	-	-
Administrative expenses	(403,942)	(272,055)
Other operating income	3,000	17,250
Operating loss	(400,942)	(254,805)
Other interest receivable and similar income	8,229	21,402
Loss on ordinary activities before taxation	(392,713)	(233,403)
Tax on loss on ordinary activities	17,356	26,448
Loss for the period	(375,357)	(206,955)
Earnings per ordinary Shares – Basic	(4.7145)p	(7.9385)p
- Diluted	(4.7145)p	(7.9385)p

CONSOLIDATED BALANCE SHEET

For the six months ended 30 September 2007

	Unaudited	Audited
	30 September	31 March
	2007	2007
	£	£
Fixed Assets
Intangible assets	2,851,232	3,005,353
Fixed assets	1,583	765
	2,852,815	3,006,118
Current assets
Debtors	49,114	50,914
Cash at bank and in hand	220,266	423,146
	269,380	474,060
Creditors
Amounts falling due within one year	(92,884)	(75,510)
Net current assets	176,496	398,550
Total assets less current liabilities	3,029,311	3,404,668
Capital and Reserves
Called up share capital	398,091	398,091
Share premium account	3,000,909	3,000,909
Profit and loss account	(369,689)	5,668
Shareholders’ funds	3,029,311	3,404,668

The accounts were approved by the Board on 13^th November 2007 and signed on its behalf by

S. Winston

Director

CONSOLIDATED CASH FLOW STATEMENT

For the six months ended 30 September 2007

	Unaudited	Audited
	Six months to	Year to
	30 September 2007	31 March 2007
	£	£
Net cash (outflow) / inflow fromoperating activities	(290,532)	(134,031)
Returns on investments and servicing of finance
Interest received	8,229	21,402
Net cash inflow for returns on investments and servicing of finance	8,229	21,042
Taxation	17,356	(55,820)
Acquisitions and disposals
Purchase of tangible fixed assets	(1,149)	-
Purchase of subsidiary undertakings	-	(141,335)
Net cash acquired with subsidiaries	-	50,210
Net cash outflow for acquisitions and disposals	(1,149)	(91,125)
Net cash (outflow)/inflow before management of liquid resources and financing	(266,096)	(259,574)
Financing
Issue of ordinary share capital	-	300,000
Net cash inflow from financing	-	300,000
(Decrease)/increase in cash in the year	(266,096)	40,426

NOTES TO THE FINANCIAL STATEMENTS

For the six months ended 30 September 2007

1. Financial information

The interim results for the six months ended 30 September 2007 are unaudited, have not been reviewed by the Company’s auditor and do not constitute accounts within the meaning of section 240 of the Companies Act 1985 (the “Act”). They have been drawn up using accounting policies and presentation consistent with those applied in the audited accounts for the year ended 31 March 2007. A copy of the 2007 accounts has been filed with the Registrar of Companies. The auditors’ opinion on these accounts was unqualified and contained no statement under section 237(2) or (3) of the Act.

2. Earnings per ordinary shares

Basic earnings per share are calculated using the weighted average of 7,961,817 (31/3/2007: 2,606,990) ordinary shares in issue during the period.

3. Responsibility

The Directors of the company accept responsibility for the information contained in this document and to the best of their knowledge and belief (having taken all reasonable care to ensure that such is the case) the information contained is in accordance with the facts and does not omit anything to affect the import of such information.

Copies of this report are available to the public at the registered office at 65 New Cavendish Street, London W1G 7LS.

4. Dividend

No interim dividend is declared on the ordinary shares.

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