Chairman's Statement
Introduction
I am pleased to present the
preliminary audited financial results of the Company for the year
ended 31 March 2009. The Annual Report in respect of this same period, which
will include notice of the Company's Annual General Meeting, will
be despatched to shareholders in due course and, at that time, a
downloadable PDF copy of this will be posted on the www.plusmarketsgroup.com website
in accordance with the requirements of PLUS.
Review
The financial year 2008/9
was one of continuing industry validation and accreditation
for our portfolio of "cleaner, greener and safer" chemical
processes for a variety of industrial applications, developed by green
chemicals. The bulk of the after-tax loss of £820,000, or
10.24 pence per share, during the year under review was accounted for by
expenditure on further industrial trials and other elements of this
validation and accreditation process.
Ongoing research has also uncovered at
least one further application of our technology, which the Directors
believe may have significant commercial potential within the health
and beauty segment of the consumer goods' sector. This is presently being
evaluated in conjunction with a major health and beauty products
company.
Last year, as
previously, we continued to strengthen our patent
portfolio to underpin the programmes described
above; and to seek key partners with whom to realise the
full commercial potential of the Company's technology.
Expenditure during the year has resulted
in a loss on ordinary activities before taxation of
£853,563 (2007/8: £809,399). Shareholders' funds at the year-end
stood at £2,059,626.
Board Changes
There have been several changes to the
Board of Directors during the course of 2008/9. Mr. Martin Penny
joined the Board as a non-executive Director and Dr. Andrew Bailiff
left the Company for a non-competitive career in
industry. Mr. David Norwood resigned from the Board, and
from his other commercial appointments, to pursue interests outside
business. I then assumed Mr. Norwood's position as Chairman, having
been a Director of green chemicals since the completion of the
acquisition of Perachem Limited early in 2007.
Post- Balance Sheet Events
On 1st June 2009, the Company
received additional funding of £250,000 in the form of unsecured loan finance
from certain existing shareholders and other parties, including IP2IPO
Limited, an associate company of your Company's largest shareholder, Techtran
Limited; and Mr. Stephen Winston, the Chief Executive
Officer. These additional working capital loans have been
granted on terms analogous with those announced on 19th February
2008 in relation to existing unsecured loan finance; they provide funding
for the continuing
regulatory approvals and commercialisation programmes.
Current Trading and Future Prospects
The current financial year should
see the achievement of commercial milestones on at least one of
the three major technology applications currently being pursued
through the Company's 100% owned subsidiary, Perachem Limited.
Alison M. Fielding, Ph. D.,
Chairman,
18 June 2009
|
Stephen Winston |
Simon Hudson |
Daniel Briggs |
|
|
green chemicals plc |
Tavistock Communications |
Relig‹re Hichens, Harrison |
|
|
Tel: +44 20 7873 2190 |
Tel: |
+44 20 7920 3150 or |
Tel: +44 20 7382 4450 |
|
|
+44 7966 477256 |
||
green chemicals plc
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2009
|
|
|
2009 |
2008 |
|
|
Notes |
£ |
£ |
|
|
|
|
|
|
Turnover |
1 |
- |
600 |
|
|
|
|
|
|
Administrative expenses |
|
(830,475) |
(824,624) |
|
Other operating income |
|
100 |
3,000 |
|
|
|
─────── |
─────── |
|
Operating loss |
2 |
(830,375) |
(821,024) |
|
|
|
|
|
|
Other interest receivable and similar
income |
3 |
10,914 |
13,687 |
|
Interest payable and similar charges |
4 |
(34,102) |
(2,062) |
|
|
|
─────── |
─────── |
|
Loss on ordinary activities before
taxation |
|
(853,563) |
(809,399) |
|
|
|
|
|
|
Tax on loss on ordinary activities |
6 |
33,657 |
34,263 |
|
|
|
─────── |
─────── |
|
Loss on ordinary activities after
taxation |
|
(819,906) |
(775,136) |
|
|
|
═══════ |
═══════ |
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
Basic |
5 |
(10.2385)p |
(9.7357)p |
|
|
|
═══════ |
═══════ |
|
Diluted |
5 |
(10.2385)p |
(9.7357)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
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2009
|
|
|
Group |
|
|
|
|
2009 |
2008 |
|
|
Notes |
£ |
£ |
|
|
|
|
|
|
Fixed assets |
|
|
|
|
Intangible assets |
7 |
2,388,871 |
2,697,112 |
|
Tangible assets |
8 |
12,050 |
1,185 |
|
|
|
─────── |
─────── |
|
|
|
2,400,921 |
2,698,297 |
|
|
|
─────── |
─────── |
|
Current assets |
|
|
|
|
Debtors |
9 |
15,003 |
46,112 |
|
Cash at bank and in hand |
|
241,180 |
216,753 |
|
|
|
─────── |
─────── |
|
|
|
256,183 |
262,865 |
|
Creditors: amounts falling due within
one year |
10 |
(597,478) |
(331,630) |
|
|
|
─────── |
─────── |
|
Net current liabilities |
|
(341,295) |
(68,765) |
|
|
|
─────── |
─────── |
|
Total assets less current liabilities |
|
2,059,626 |
2,629,532 |
|
|
|
═══════ |
═══════ |
|
|
|
|
|
|
Capital and reserves |
|
|
|
|
Called up share capital |
12 |
401,338 |
398,091 |
|
Share premium account |
13 |
3,247,662 |
3,000,909 |
|
Profit and loss account |
13 |
(1,589,374) |
(769,468) |
|
|
|
─────── |
─────── |
|
Shareholders' funds |
14 |
2,059,626 |
2,629,532 |
|
|
|
═══════ |
═══════ |
green chemicals plc
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2009
|
|
2009 |
2008 |
|||
|
|
£ |
£ |
£ |
£ |
|
|
|
|
|
|
|
|
|
Net cash outflow from operating
activities |
|
(507,675) |
|
(529,641) |
|
|
|
|
|
|
|
|
|
Returns on investments and servicing of
finance |
|
|
|
|
|
|
Interest received |
10,914 |
|
13,687 |
|
|
|
|
─────── |
|
─────── |
|
|
|
Net cash inflow for returns on
investments and servicing of finance |
|
10,914 |
|
13,687 |
|
|
|
|
|
|
|
|
|
Taxation |
|
33,657 |
|
60,711 |
|
|
|
|
|
|
|
|
|
Capital expenditure |
|
|
|
|
|
|
Payments to acquire tangible assets |
(12,469) |
|
(1,150) |
|
|
|
|
─────── |
|
─────── |
|
|
|
Net cash outflow for capital
expenditure |
|
(12,469) |
|
(1,150) |
|
|
|
|
|
|
|
|
|
|
|
─────── |
|
────── |
|
|
Net cash outflow before management of
liquid resources and financing |
|
(475,573) |
|
(456,393) |
|
|
|
|
|
|
|
|
|
Financing |
|
|
|
|
|
|
Issue of ordinary share capital |
250,000 |
|
- |
|
|
|
Other new short term loans |
250,000 |
|
250,000 |
|
|
|
|
─────── |
|
─────── |
|
|
|
Net cash inflow from financing |
|
500,000 |
|
250,000 |
|
|
|
|
─────── |
|
─────── |
|
|
Increase/(decrease) in cash in the year |
|
24,427 |
|
(206,393) |
|
|
|
|
═══════ |
|
══════ |
|
green chemicals plc
NOTES TO THE CONSOLIDATED CASH
FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2009
1. Reconciliation of operating loss
to net cash outflow from operating activities
|
|
2009 |
2008 |
|
|
£ |
£ |
|
Operating loss |
(830,375) |
(821,024) |
|
Depreciation of tangible assets |
1,604 |
730 |
|
Amortisation of intangible assets |
308,241 |
308,241 |
|
Decrease/(increase) in debtors |
31,109 |
(21,646) |
|
(Decrease)/Increase in creditors within
one year |
(18,254) |
4,058 |
|
|
─────── |
─────── |
|
Net cash outflow from operating
activities |
(507,675) |
(529,641) |
|
|
═══════ |
═══════ |
2. Analysis of net debt
|
|
1 April 2008 |
Cash flow |
Other non-cash changes |
31 March 2009 |
|
|
£ |
£ |
£ |
£ |
|
Net cash: |
|
|
|
|
|
Cash at bank and in hand |
216,753 |
24,427 |
- |
241,180 |
|
|
─────── |
─────── |
─────── |
─────── |
|
Debts falling due within one year |
(250,000) |
(250,000) |
- |
(500,000) |
|
|
─────── |
─────── |
─────── |
─────── |
|
Net debt |
(33,247) |
(225,573) |
- |
(258,820) |
|
|
═══════ |
═══════ |
═══════ |
═══════ |
3. Reconciliation of net cash flow
to movement in net debt
|
|
2009 |
2008 |
|
|
£ |
£ |
|
Increase/(decrease) in cash in the year |
24,427 |
(206,393) |
|
Cash inflow from increase in debt |
(250,000) |
(250,000) |
|
|
─────── |
─────── |
|
Movement in net debt in the year |
(225,573) |
(456,393) |
|
Opening net (debt)/funds |
(33,247) |
423,146 |
|
|
─────── |
─────── |
|
Closing net debt |
(258,820) |
(33,247) |
|
|
═══════ |
═══════ |
NOTES
1. Turnover
The total turnover of the group for the
year has been derived from its principal activity wholly undertaken in
the United Kingdom.
2. Operating loss
|
|
2009 |
2008 |
|
|
£ |
£ |
|
Operating loss is stated after
charging: |
|
|
|
Amortisation of intangible assets |
308,241 |
308,241 |
|
Depreciation of tangible assets |
1,604 |
730 |
|
Auditors' remuneration (company £2,400;
2008: £1,750) |
4,930 |
3,500 |
|
Remuneration of auditors for non-audit
work |
2,182 |
5,216 |
|
and after crediting: |
|
|
|
Grants received |
- |
3,000 |
|
|
═══════ |
═══════ |
3. Investment income
|
|
2009 |
2008 |
|
|
£ |
£ |
|
Bank interest |
10,914 |
12,590 |
|
Other interest |
- |
1,097 |
|
|
─────── |
|
|
|
10,914 |
13,687 |
|
|
═══════ |
═══════ |
4. Interest payable
|
|
2009 |
2008 |
|
|
£ |
£ |
|
On other loans |
34,102 |
2,062 |
|
|
═══════ |
═══════ |
5. Earnings per ordinary share
Basic and diluted earnings per share are
calculated by dividing the loss attributable to ordinary shareholders of
£819,906 (2008 : £775,136) using a weighted average of 8,008,072 (2008 :
7,961,817) ordinary shares in issue during the year.
6. Taxation
|
|
2009 |
2008 |
|
|
£ |
£ |
|
Domestic current year tax |
|
|
|
Adjustment for prior years |
(33,657) |
(34,263) |
|
|
─────── |
─────── |
|
Current tax charge |
(33,657) |
(34,263) |
|
|
═══════ |
═══════ |
|
|
|
|
|
Factors affecting the tax charge for
the year |
|
|
|
Loss on ordinary activities before
taxation |
(853,563) |
(809,399) |
|
|
═══════ |
═══════ |
|
|
|
|
|
Loss on ordinary activities before
taxation multiplied by standard rate of UK corporation tax of
21.00% (2008 - 20.00%) |
(179,248) |
(161,880) |
|
|
─────── |
─────── |
|
Effects of: |
|
|
|
Non deductible expenses |
210 |
1,552 |
|
Amortisation and depreciation |
65,068 |
61,794 |
|
Capital allowances |
(2,643) |
(115) |
|
Tax losses utilised |
116,634 |
98,649 |
|
Adjustments to previous periods |
(33,657) |
(34,263) |
|
Other tax adjustments |
(21) |
- |
|
|
─────── |
─────── |
|
|
145,591 |
127,617 |
|
|
─────── |
─────── |
|
Current tax charge |
(33,657) |
(34,263) |
|
|
═══════ |
═══════ |
At 31 March 2009 a deferred tax asset
amounting to £220,336 (2008: £143,058) has not been recognised in line with
FRS19 guidelines.
7. Intangible fixed assets
|
|
Goodwill |
|
|
£ |
|
Cost |
|
|
At 1 April 2008 & at 31 March 2009 |
3,082,413 |
|
|
─────── |
|
Amortisation |
|
|
At 1 April 2008 |
385,301 |
|
Charge for the year |
308,241 |
|
|
─────── |
|
At 31 March 2009 |
693,542 |
|
|
─────── |
|
Net book value |
|
|
At 31 March 2009 |
2,388,871 |
|
|
═══════ |
|
At 31 March 2008 |
2,697,112 |
|
|
═══════ |
8. Tangible fixed assets
|
|
Plant and machinery |
|
|
£ |
|
Cost |
|
|
At 1 April 2008 |
2,381 |
|
Additions |
12,469 |
|
|
─────── |
|
At 31 March 2009 |
14,850 |
|
|
─────── |
|
Depreciation |
|
|
At 1 April 2008 |
1,196 |
|
Charge for the year |
1,604 |
|
|
─────── |
|
At 31 March 2009 |
2,800 |
|
|
─────── |
|
Net book value |
|
|
At 31 March 2009 |
12,050 |
|
|
═══════ |
|
At 31 March 2008 |
1,185 |
|
|
═══════ |
9. Debtors
|
|
|
|
2009 |
2008 |
|
|
|
|
£ |
£ |
|
Other debtors |
5,898 |
13,517 |
||
|
Prepayments and accrued income |
9,105 |
32,595 |
||
|
|
|
|
─────── |
─────── |
|
|
|
|
15,003 |
46,112 |
|
|
|
|
═══════ |
═══════ |
10. Creditors : amounts falling due
within one year
|
|
|
|
2009 |
2008 |
|
|
|
|
£ |
£ |
|
|
|
|
|
|
|
Trade creditors |
13,281 |
38,556 |
||
|
Taxes and social security costs |
3,863 |
8,428 |
||
|
Other creditors |
536,164 |
252,062 |
||
|
Accruals and deferred income |
44,170 |
32,584 |
||
|
|
|
|
─────── |
─────── |
|
|
|
|
597,478 |
331,630 |
|
|
|
|
═══════ |
═══════ |
Included in creditors are unsecured loans
of £375,000 from IP2IP0 Limited and £125,000 from R Farleigh. These loans are
repayable at any time either at the request of the lender or at the option of
the company. Interest is charged at 7% per annum for the first six months and
at 9% per annum thereafter on all loans.
11. Financial instruments
The Group's financial instruments
comprise cash arising from its development activities and loans from a related
party and shareholder. During the current year, the principal financial risk to
which the group is exposed is interest rate risk. The Board reviews and agrees
policies for managing risk and they are summarised below.
Interest rate risk
The Group is financed through loans,
retained profit, share capital and share premium. In order to optimise the
income received on money market deposits, the Group reviews the terms of these
deposits to take advantage of the best market rates.
The group's interest rate risk is
primarily in relation to its loans from a related party and shareholder.
Interest on this loan is fixed.
Interest rate profile
Floating rate financial assets comprise
sterling cash deposits in bank accounts at short term or immediate maturity.
Interest accrues at market rates.
Fair values
The fair values of the financial assets
and liabilities at 31 March 2009 and 31 March 2008 are not materially different
from their book values.
12. Share capital
|
|
2009 |
2008 |
|
|
£ |
£ |
|
Authorised |
||
|
100,000,000 Ordinary Shares of 5p each |
5,000,000 |
5,000,000 |
|
|
═══════ |
═══════ |
|
Allotted, called up and fully paid |
||
|
8,026,752 (2008: 7,961,817) Ordinary
Shares of 5p each |
401,338 |
398,091 |
|
|
═══════ |
═══════ |
In July 2008, 64,935 ordinary shares of 5p
each, having a nominal value or £3,247, were issued for a total consideration
of £250,000. This resulted in a share premium of £246,753.
13. Statement of movements on
reserves
|
|
Share premium account |
Profit and loss account |
|
|
£ |
£ |
|
Balance at 1 April 2008 |
3,000,909 |
(769,468) |
|
Loss for the year |
- |
(819,906) |
|
Premium on shares issued during the
year |
246,753 |
- |
|
|
─────── |
─────── |
|
Balance at 31 March 2009 |
3,247,662 |
(1,589,374) |
|
|
═══════ |
═══════ |
14. Reconciliation of movements in
shareholders' funds
|
|
2009 |
2008 |
|
|
£ |
£ |
|
Loss for the financial year |
(819,906) |
(775,136) |
|
Proceeds from issue of shares |
250,000 |
- |
|
|
─────── |
─────── |
|
Net depletion in shareholders' funds |
(569,906) |
(775,136) |
|
Opening shareholders' funds |
2,629,532 |
3,404,668 |
|
|
─────── |
─────── |
|
Closing shareholders' funds |
2,059,626 |
2,629,532 |
|
|
═══════ |
═══════ |
15. Related party transactions
Included in other creditors are two
unsecured loans of £250,000 and £125,000 (2008: £250,000) from IP2IPO Limited,
a subsidiary of IP Group plc. IP Group plc is also the parent of Techtran Group
Limited and Top Technology Ventures Limited, manager of the IP Venture Fund.
Techtran Group Limited and the IP Venture Fund collectively control
approximately 29.96% of the issued share capital of the company. Interest of
£27,349 (2008: £2,062) has been charged for the year.
Also included in other creditors is a
loan of £125,000 (2008: £nil) from R Farleigh who holds 12.58% of the company's
share capital. Interest of £6,753 (2008: £nil) has been charged for the year.
During the year, the group incurred costs
amounting to £45,004 (2008 : £39,144) from The University of Leeds, a
shareholder of the company, in respect of laboratory research facilities, staff
costs and other consumables. The group benefits from its relationship with The
University of Leeds and the above transactions took place at a reduced rate
equating to approximately 50% of normal market value. At the year end, £795
(2008: £30,170) was due to The University.
During the year, payments amounting to
£11,100 (2008: £12,699) were made to Techtran Group Limited, a shareholder of
the group, in respect of staff secondment costs recharged to the company. These
transactions took place on an arm's length market value basis.
----------------
This information is provided by RNS
The company news service from the London
Stock Exchange
END