07/08/2008
Green Chemicals plc –

Final Results

 
green chemicals plc
("green chemicals plc" or the "Company")
 
Preliminary Announcement of Audited Results for the Year Ended 
31 March 2008
 
Chairman's Statement
 
Introduction
 
I have pleasure in presenting the Annual Report including the audited
financial results of your Company for the year ended 31 March 2008
and giving notice of your Company's forthcoming annual general meeting 
to be held on 10 September 2008. 
 
Overview
 
2007/8 was a year of significant developments in your Company's
portfolio of "cleaner, greener and safer" chemical processes for 
a variety of industrial applications. Whilst no significant sales 
have yet been booked, the Directors are optimistic that 
continuing industry validation and the programme of accreditation 
for its developments will lay a solid foundation for acceptance 
of the processes and products, to which your Company has the rights.
 
Business Review 
 
Your Company has made strong progress on the three major programmes 
in its present portfolio of "cleaner, greener and safer" products 
for industry. These include flame retardant compounds for textiles; 
wool pre-treatments; and products for permanent colouring and 
the decolouring of human hair. In keeping with your Company's 
strategy, these sectors are all areas where significant concerns 
already exist over the health, safety and environmental impacts of 
the established, mainstream technologies.
 
In the flame retardant segment, performance of your Company's 
flame retardant on curtain and drape fabrics has been externally 
certified and the product is now moving towards commercial sales.
 
Wool pre-treatments, which are the prelude to subsequent dyeing 
processes, are undergoing large-scale, industrial trials, have 
already demonstrated a package of benefits including reduced 
working temperatures, leading to significant potential energy 
savings.
 
 
Excellent progress on new technology for the bleaching and 
colouration of hair has been achieved in the laboratory, with 
clear benefits established in terms of the colour range, colour 
permanence and treatment times. The time taken to produce 
commercial sales from this activity will vary according to the 
degree of regulation in different territories or regions relating 
to the inclusion of new ingredients or formulations in cosmetics 
and similar consumer products.
 
Your Company continues to strengthen its patent portfolio to underpin 
the programmes described and to seek key partners, to realise the 
full commercial opportunities, which its technology represents. 
As announced during the period under review, a letter of intent was 
signed with Jemella Group, trading as GHD, to commercialise your 
Company's hair treatment technology in the UK.
 
 
 
 
Financial Review
 
Continued research expenditure during the year has resulted in a 
loss on ordinary activities before taxation of £809,399 
(2007: £233,403). Your Company had a healthy cash position as at the 
year-end, with cash at bank of £216,753 (2007: £423,146).
 
 
Post- Balance Sheet Events
 
On 30 June 2008, your Company agreed to allot 64,935 ordinary 
shares of 5p each for a total consideration of £250,000 to a new 
investor, Martin Penny. Your Company received additional funding 
of £250,000 in the form of unsecured loan finance from certain 
existing shareholders. This additional working capital provides 
funding for its ongoing product development, regulatory approval 
and commercialisation programmes.
 
In addition to the financing described above, these have been 
several changes to the Board of Directors subsequent to the 
end of financial 2007/8. On 3 July last, I announced that Stephen 
Winston, FCA, your Company's Financial Director, would be assuming 
the former responsibilities of Dr. Andrew Bayliff as Chief Executive 
and that I would be stepping up my role from non-executive to 
executive Chairman. Dr. Bayliff's departure was to a senior, 
non-competitive position in industry; my colleagues and I thank him 
for his contribution to your Company since the beginning of 2007. 
There have been two further changes, announced within the past week, 
to the Board of your Company: Dr. Rodney Adams is stepping down 
as a non-executive Director and Martin Penny has joined 
green chemicals plc's Board in a similar capacity. Mr. Penny is the 
founder of Jemella Group, mentioned above. My colleagues and I 
have pleasure in welcoming Mr. Penny to the Board and as a shareholder;
we believe that his experience in the health and beauty and 
consumer products' sectors will prove invaluable in formulating 
your Company's strategy for commercialising its permanent hair 
colorant technology. 
 
Current Trading and Future Prospects
 
The current financial year should see significant further 
progress on the three major projects currently being pursued 
through your Company's 100% owned subsidiary, Perachem Limited.
 
Looking to the next twelve months, these promise to be exciting 
times for your Company and I anticipate in the near future 
reporting commercial milestones, which should enhance shareholder 
value.
 
D Norwood
Executive Chairman
green chemicals plc
 
Consolidated Profit and Loss Account
For the year ended 31 March 2008
 

2008 2007

£ £ £ £

Turnover

Continuing operations 600 -

600 -

Administrative expenses (824,624) (272,055)

Other operating income 3,000 17,250

Operating loss

Continuing operations (821,024) (211,868)

Acquisitions - (42,937)

(821,024) (254,805)

Other interest receivable and 13,687 21,402

similar income

Interest payable and similar (2,062) -

charges

(809,399) (233,403)

Loss on ordinary activities

before taxation

Tax on loss on ordinary 34,263 26,448

activities

Loss on ordinary activities after (775,136) (206,955)

taxation

Earnings per ordinary share:

Basic (9.7357)p (7.9385)p

Diluted (9.7357)p (7.9385)p

The profit and loss account has been prepared on the basis that all operations

are continuing operations.

There are no recognised gains and losses other than those passing through the

profit and loss account.

green chemicals plc

Balance Sheets

As at 31 March 2008

Group Company

2008 2007 2008 2007

£ £ £ £

Fixed assets

Intangible assets 2,697,112 3,005,353 - -

Tangible assets 1,185 765 - -

Investments - - 3,065,126 3,065,125

2,698,297 3,006,118 3,065,126 3,065,125

Current assets

Debtors 46,112 50,914 377,896 69,078

Cash at bank and in hand 216,753 423,146 191,279 397,602

262,865 474,060 569,175 466,680

Creditors: amounts falling due (331,630) (75,510) (262,525) (7,591)

within one year

Net current (68,765) 398,550 306,650 459,089

(liabilities)/assets

Total assets less current 2,629,532 3,404,668 3,371,776 3,524,214

liabilities

Capital and reserves

Called up share capital 398,091 398,091 398,091 398,091

Share premium account 3,000,909 3,000,909 3,000,909 3,000,909

Profit and loss account (769,468) 5,668 (27,224) 125,214

Shareholders' funds 2,629,532 3,404,668 3,371,776 3,524,214

Approved by the Board and authorised for issue on 7 August 2008

S M Winston

Director

Dr. A M Fielding

Director

green chemicals plc

Consolidated Cash Flow Statement

For the year ended 31 March 2008

2008 2007

£ £ £ £

Net cash outflow from operating (529,641) (134,031)

activities

Returns on investments and servicing

of finance

Interest received 13,687 21,402

Net cash inflow for returns on 13,687 21,402

investments and servicing of finance

Taxation 60,711 (55,820)

Capital expenditure

Payments to acquire tangible assets (1,150) -

Net cash outflow for capital (1,150) -

expenditure

Acquisitions and disposals

Purchase of subsidiary undertakings - (141,335)

Net cash acquired with subsidiaries - 50,210

Net cash outflow for acquisitions - (91,125)

and disposals

Net cash outflow before management (456,393) (259,574)

of liquid resources and financing

Financing

Issue of ordinary share capital - 300,000

Other new short term loans 250,000 -

Increase in debt/financing 250,000 300,000

Net cash inflow from financing 250,000 300,000

(Decrease)/increase in cash in the (206,393) 40,426

year

green chemicals plc

Notes to the Financial Statements

For the year ended 31 March 2008

1.

Reconciliation of operating loss to net cash outflow from 2008 2007

operating activities

£ £

Operating loss (821,024) (254,805)

Depreciation of tangible assets 730 86

Amortisation of intangible assets 308,241 77,060

Increase in debtors (21,646) (23,720)

Increase in creditors within one year 4,058 67,348

Net cash outflow from operating activities (529,641) (134,031)

2.

Analysis of net (debt)/funds 1 April 2007 Cash flow Other non-cash 31 March

changes 2008

£ £ £ £

Net cash:

Cash at bank and in hand 423,146 (206,393) - 216,753

Debts falling due within one - (250,000) - (250,000)

year

Net funds/(debt) 423,146 (456,393) - (33,247)

3.

Reconciliation of net cash flow to movement in net debt 2008 2007

£ £

(Decrease)/increase in cash in the year (206,393) 40,426

Other non-cash charges - (18,139)

Cash inflow from increase in debt (250,000) -

Movement in net (debt)/funds in the year (456,393) 22,287

Opening net funds 423,146 400,859

Closing net (debt)/funds (33,247) 423,146

 
 
- Ends -
 
For further information please visit www.greenchemicalsplc.com or contact:
 
David Norwood Clemmie Carr Graham Atthill-Beck
Stephen Winston Simon Hudson Hichens, Harrison & Co. plc
green chemicals plc Tavistock Communications Tel: +971 4 343 1330 or

Tel: +44 113 3432924 Tel: +44 20 7920 3150 +971 50 856 9408

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