Coburg Group PLC : Half Yearly Report

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COBURG GROUPPLC

UNAUDITEDINTERIM RESULTS FOR THE SIX MONTHSENDED

31 OCTOBER2013

CHAIRMAN'S REPORT

Results for the six months to 31 October 2013 show revenue of £4000 and a loss of £40,000. This loss largely relates to the on-going costs of maintaining the company's listing on the AIM Market as an investing company. We continue our efforts to keep these costs as low as possible.

On 31 October 2013 the total net assets of the Company stood at £280,000 compared to £62,000 on 30th April 2013. The main reason for this increase was the performance of the investment made by the Company since April in African Eagle Resources (AE). As I reported in the Financial Statements for the y/e 30 April 2013, we announced on 23 July our purchase of 78,009,570 AE shares for a consideration of £117,014. On 16 September we made a further purchase of 28,500,000 shares in AE for a consideration of £50,000. These purchases together with our earlier holding of 500,000 AE shares brought  our total holding in AE up to 107,009,570 ordinary shares, or 12.3% of the enlarged capital. At the middle market price on 31 October of 0.40p per share, our total holding of AE shares was valued at £429,000 compared to a purchase consideration of £171,000 and the difference of £258,000 is shown in the Consolidated Statement of Comprehensive Income as Other Comprehensive Income.

At the AGM on 27 September, shareholders authorised the issue of an additional tranche of convertible unsecured loan notes to the value of £90,000 which was subscribed for by Bruce Rowan and Konrad Legg. This has provided useful working capital for the Company following the investments made in African Eagle and will enable the Group to maintain its search for other suitable investment opportunities.

On 1 November the directors announced that Mr. Chris Ells had been appointed as a Non - Executive Director of the Company with immediate effect. Mr Ells is a qualified Chartered Accountant and he has valuable experience in the natural resources sector. He currently sits on the board of South East African Mining, an exploration company focused on gold and base metal projects in Africa.

Jeremy Maynard
Chairman

ENQUIRES:

Jeremy Maynard	Coburg Group PLC		[phone]
Colin Aaronson	Grant Thornton Corporate Finance		[phone]
Nick Emerson	SI Capital LTD		[phone]

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

			Six months to 31 October 2013		Six months to 31 October 2012		Year to 30 April 2013
			(unaudited)		(unaudited)		(audited)
			£'000		£'000		£'000
Revenue			4		-		1
Cost of sales			-		-		-
Gross profit			4		-		1
Distribution costs			-		-		-
Administrative expenses			(39)		(36)		(88)
Group operating profit/(loss)			(35)		(36)		(87)
Interest payable and similar charges			(5)		-		(1)
Profit before tax			(40)		(36)		(88)
Income tax expense			-		-		-
Profit/(loss) for the financial period			(40)		(36)		(88)
Other comprehensive income			258		-		(14)
Total comprehensive income for the period			218		(36)		(102)
Basic EPS (pence)			(3.31)		(2.98)		(21.17)
Diluted EPS (pence)			(3.31)		(2.98)		(20.95)

CONSOLIDATEDSTATEMENT OF FINANCIAL POSITION

			Six months to 31 October 2013		Six months to 31 October 2012		Year to 30 April 2013
	Notes		(unaudited)		(unaudited)		(audited)
			£'000		£'000		£'000
ASSETS
Non-current assets
Investments	4		495		19		90
			495		19		90

CONSOLIDATEDSTATEMENT OF CASH FLOWS

			Six months to 31 October 2013		Six months to 31 October 2012		Year to 30 April 2013
			(unaudited)		(unaudited)		(audited)
			£'000		£'000		£'000
Cash flow from operating activities
Operating profit and loss			(40)		(36)		(88)
Adjustments for:
-Depreciation			-		-		-
-Profit/(loss) on sale of PPE			-		-		13
-Finance costs			5		-		1
-(Increase)/decrease in trade and other receivables			5		15		82
-Increase/decrease in trade and other payables			(18)		-		(11)
Cash generated from operating activities			(48)		(21)		(3)
Tax paid			-		-		-
Interest paid			(5)		-		-
Net cash from operating activities			(53)		(21)		(3)
Cash from investment activities
Purchase of investments			(173)		-		(90)
Sales of fixed asset investments			26		-		(8)
Net cash used in investing activities			(147)		-		(98)
Cash from financing activities
New loans			90		-		185
Net cash generated from financing activities			90		-		185
Net increase/(decrease) in cash and equivalents			(110)		(21)		84
Cash and cash equivalents at beginning of period			170		86		86
Cash and cash equivalents at end of period			60		65		170

CONSOLIDATEDSTATEMENT OF CHANGES IN EQUITY

		Share capital		Share premium		Other reserves		Retained earnings		Total Equity
		£'000		£'000		£'000		£'000		£'000

NOTES TO INTERIM FINANCIAL STATEMENTS

1. BASIS OFACCOUNTING

Theseinterimfinancial statementsfor the period ended31 October 2013have been prepared in accordance with International Financial Reporting Standards (IFRS).

The information presentedwithin these financialstatementsis in compliancewith IA S34'Interim Financial Reporting'. This requires the use of certainaccounting estimates and requires that managementexercisejudgement in the processof applyingthe Company'saccountingpolicies. The areas involving a high degree if judgement or complexity, or areas where the assumptions and estimates are significant to the interim statementsare disclosedbelow.

The financial information contained in the report,which has notbeen audited,does notconstitute statutory accounts as defined by Section 434of the CompaniesAct 2006and hasbeen prepared on the samebasis and usingthe sameaccountingpolicies as used in the financial statementsfor theyear ended30 April 2013. The interim financial statements have not been audited.

The Company'sstatutoryfinancial statementsfor theyear ended 30 April 2013, prepared under IFRS have been filed with theRegistrarof Companies. The auditors'report for the 2013 financialstatements is unqualified.

2. CRITICALACCOUNTING ESTIMATES

In order toprepare theseconsolidated financialstatementsin accordancewith the accounting policies set out in note 1, management has used estimates and judgments to established theamountsat which certain items are recorded. Criticalaccounting estimateare those that have the greatest impact on the financial statements and requirethemost difficult, subjectiveand complexjudgementsabout matters that are inherentlyuncertain. Estimatesare based on factors including historical experience and expectations of future eventsthat management believe to be reasonable. However,given the judgemental nature of such estimates,actual resultscould be different from theassumptionsused. The critical accounting policies are set out below:

Going concern

In assessing going concern the directors have prepared forecasts. The forecastsarebased on factors including historical experience and expectations of future events which directors believe to be reasonable. However, given the judgemental natureof such estimates,actual resultscould bedifferent from the forecasts used.

3. Earningsper share

Basic earningsper share iscalculated bydividingtheearnings attributable to shareholders bythe weighted average number of ordinary shares outstanding in the period.

Diluted earningsper shareis calculated using theweighted averagenumber of shares adjustedto assume the conversion of all dilutive potential ordinaryshares.

	Six months to Oct 2013				Six months to Oct 2012
	Earnings	WANS	EPS		Earnings	WANS	EPS
	£'000		pence		£'000		pence
Basic earnings per share	(40)	1,207,000	(3.31)		(36)	1,207,000	(2.98)
Dilutive effect of options	-	-	-		-	-	-
Diluted earnings per share	(40)	1,207,000	(3.31)		(36)	1,207,000	(2.98)

Potential dilutive ordinaryshares arise from share options. For these,a calculation is performed to determine the number of sharesthat could havebeen acquired atfair value (determined as the average annual marketshareprice of the Company's shares)based on the monetaryvalue of the exercise price attached totheoutstandingshare options. Thus, the dilutiveweighted averagenumber of shares considers the number of shares that would have been issued assuming the exercise price of the share options. If these are proved tobeanti-dilutive(increasethe potentialearnings per share) they are omitted from the calculation. As the Group has made a loss in the current period the options are deemed to be anti-dilutive and therefore not provided for in thecurrent year.

4. Investments

During the period the Companyincreased its investment holdings by £144,000. The most significant investment being the acquisition of 11.3%of total voting rights in African Eagle ResourcesPLC for the consideration of £171,000. Further details of this investment can be found in the Company'sannual statementsfor the year ended 30April 2013.

5. Financialinstruments - Borrowings

In light of theinvestments detailed in note 4, the Companyraised£90,000through the issueof convertible loan notes. The loan notes carry interest at arateof 6%, areconvertibleat 65 penceper shareand become repayableon 31 October 2015. Duringthe period loan noteswereissuedto the following membersof key management:

B Rowan £75,000

KLegg* £15,000

* Convertible loan notes were issued in the name of Tudeley Holdings an entity controlled byKLegg.

This information is provided by RNS

The company news service from the London Stock Exchange

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