Coburg Group PLC : Unaudited Interim Results

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31 January 2013

COBURG GROUPPLC

("Coburg" or "the Company")

UNAUDITEDINTERIM RESULTS FOR THE SIX MONTHSENDED

31 OCTOBER2012

CHAIRMAN'S REPORT

Results for the six months to 31 October 2012 show no revenue and a loss of £36,000. This loss largely relates to the on-going costs of maintaining the company's listing on the AIM Market and reflects the fact that the Company became an investing company under the AIM Rules following the sale of its coffee roasting business on 3 February 2012. At the end of October 2012 the total net tangible assets of the company stood at £129,000. 

FINAL COMPLETION OF DISPOSALOF THE FORMER COFFEE ROASTING BUSINESS

The company has now received the balance of the deferred consideration in respect of the sale of the coffee roasting business and, in accordance with the investing policy approved by Shareholders on 3 February 2012, the Directors have built a portfolio of mining and natural resource stocks, while keeping the on-going cost of running the Company as low as possible. Our portfolio stands at a value of approximately £110,000.

The Company has now implemented its investing policy to the satisfaction of the London Stock Exchange and intends to continue to trade as an investing company, subject to the matters described below.

FUTURESTRATEGY

In order to help develop the Company as a natural resource investment company, Mark Parker, an experienced mining exploration entrepreneur has, subject to the results of a general meeting that is described below, agreed to join the board as a Non-Executive Director to provide natural resources sector expertise and access to potential value-enhancing deals. Mark spent some 14 years as CEO of African Eagle Resources plc building a successful mining exploration business listed on AIM. Mark recently left that business to become the main shareholder and Managing Director of Equator Gold, an unlisted exploration company focused on exploring for gold in the new state of Southern Sudan.

The Company's current investing policy specifies investment in quoted natural resource companies including agribusiness. Following representations from Shareholders, a general meeting will be called to extend the policy to include unquoted businesses and investment in projects but to narrow the focus to mineral exploration, mining and extraction. In view of the foregoing, the Company does not intend to make any further investments in the agribusiness sector. Shareholders will also be asked to give Directors authorities to issue shares to enable the Company to raise funds through the placing of shares and the issue of loan notes. Following the general meeting, the Company has agreed in principle to raise approximately £105,000 through a placing of shares at 60p and a further £80,000 through the issue of convertible loan notes to Konrad Legg and to other investors including Bruce Rowan, a substantial Shareholder in the Company who has indicated his intention to vote in favour of the resolutions to be put to Shareholders at the forthcoming general meeting. Further details of these proposals will be included in the circular that will shortly be sent to Shareholders. 

If Shareholders do not pass the resolutions at the general meeting, the Directors will review the available options so as to maximise the return for Shareholders, including reviewing the position of Coburg as an AIM listed investing company.

In the meantime, I have accepted the position as Chairman of Coburg whilst Konrad Legg remains a Non-Executive Director of the Company. 

JeremyMaynard

Chairman                                29th January 2013

COBURG GROUPPLC

UNAUDITEDINTERIM RESULTS FOR THE SIX MONTHSENDED

31 OCTOBER2012

ENQUIRES:
Konrad Legg	Coburg Group PLC	[phone]
Colin Aaronson	Grant Thornton Corporate Finance	[phone]
Nick Emerson	Simple Investments	[phone]

COBURG GROUPPLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		restated
	Six monthsto	Six monthsto	Year to
	31October	31October	30April
	2012	2011	2012
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Revenue	-	-	-
Cost of Sales	-	-	-
Gross profit	-	-	-
Distribution costs	-	-	-
Administrative expenses	(36)	(68)	(118)
Group operating profit/(loss)	(36)	(68)	(118)
Interestpayable and similar charges	-	-	-
Profit before tax	(36)	(68)	(118)
Income tax expense	-	-	-
Profit/(loss)for the financialperiod	(36)	(68)	(118)
Exceptional items:sale of subsidiary	-	-	(38)
Profit/loss after exceptional items	(36)	(68)	(156)
Other comprehensive income	-	-	-
Total comprehensiveincome for the period	(36)	(68)	(156)
Basic EPS (pence)	(2.98)	(16.47)	(42.04)
DilutedEPS (pence)	(2.98)	(16.47)	(42.04)

COBURG GROUPPLC

UNAUDITEDINTERIM RESULTS FOR THE SIX MONTHSENDED

31 OCTOBER2012

CONSOLIDATEDSTATEMENT OF FINANCIALPOSITION

		restated
	Six monthsto	Six monthsto	Year to
	31October	31October	30April
	2012	2011	2012
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
ASSETS
Non-current assets
Goodwill	-	98	-
Investments	19	79	19
	19	177	19
Current assets
Trade andother receivables	72	111	88
Cash andcash equivalents	65	-	86
	137	111	174

COBURG GROUPPLC

UNAUDITEDINTERIM RESULTS FOR THE SIX MONTHSENDED

31 OCTOBER2012

CONSOLIDATEDSTATEMENT OF CASH FLOWS

		restated
	Six monthsto	Six monthsto	Year to
	31October	31October	30April
	2012	2011	2012
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Cash flowfrom operatingactivities
Operating profit and loss	(36)	(68)	(118)
Adjustments for:
- Depreciation	-	-	4
-Profit or lossonthe sale ofPPE	-	-	38
-(Increase)/decrease in trade and other receivables	15	164	56
-Increase/(decrease) in trade and other payables	-	3	(65)
-(Increase)/decrease in inventories	-	-	-
Cash generated fromoperating activities	(21)	99	(85)
Interestpaid	-	-	-
Net cash from operating activities	(21)	99	(85)
Cash from investingactivities
Purchase on investments	-	(79)	(4)
Net cash used in investingactivities	-	(79)	(4)
Cash from financingactivities
Repayment of loans	-	(60)	-
Proceeds fromsale of subsidiaries	-	-	135
Net cash generated from financing activities	-	(60)	135
Net increase/(decrease) in cash and equivalents	(21)	(40)	46
Cash andcashequivalents at beginningof period	86

COBURG GROUPPLC

UNAUDITEDINTERIM RESULTS FOR THE SIX MONTHSENDED

31 OCTOBER2012

CONSOLIDATEDSTATEMENT OF CHANGES IN EQUITY

	Share	Share	Other	Retained	Total
	capital	premium	reserves	earnings	Equity
	£'000	£'000	£'000	£'000	£'000
Balance at as 1November2010	1,190

COBURG GROUPPLC

UNAUDITEDINTERIM RESULTS FOR THE SIX MONTHSENDED

31 OCTOBER2012

NOTES TO INTERIM FINANCIALSTATEMENTS

1. BASIS OF ACCOUNTING

Theseinterimfinancial statementsfor the period ended 31 October 2012havebeen prepared in accordance with International Financial Reporting Standards (IFRS).

The information presented within these financial statementsis in compliancewith IA S34'Interim Financial Reporting'. Thisrequires the use of certain accounting estimates and requires that managementexercisejudgementin the processof applying the Company'saccounting policies. The areas involving a high degreeof judgement or complexity, or areas where the assumptions and estimates are significant to the interim statements aredisclosedbelow.

The financial information contained in the report, which has notbeen audited, does notconstitute statutory accounts as defined bySection 434of the CompaniesAct 2006and has been prepared on the same basis and using the sameaccounting policies as used in the financial statementsfor theyear ended 30 April 2012. The interim financial statements have not been audited.

The Company'sstatutoryfinancial statementsfor theyear ended 30 April 2012, prepared under IFRS have been filed with theRegistrarof Companies. The auditors'report for the 2012 financial statements.

2. CRITICAL ACCOUNTING ESTIMATES

In order to prepare these consolidated financial statements in accordance with the accounting policies set out in note 1; management has used estimates and judgements to establish the amounts at which certain items are recorded. Critical accounting estimate are those that have the greatest impact on the financial statements and require the most difficult, subjective and complex judgements about matters that are inherently uncertain. Estimates are based on factors including historical experience and expectations of future events that management believe to be reasonable. However, given the judgemental nature of such estimates, actual results could be different from the assumptions used. The critical accounting policies are set out below: 

Going concern

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

3. Earnings per share

Basic earnings per shareiscalculated bydividing the earningsattributable toshareholdersbythe weighted average number of ordinary shares outstanding in the period.

Diluted earnings per share is calculated using the weighted averagenumber of sharesadjusted to assume the conversion of all dilutive potential ordinary shares.

				restated
	Six monthsto Oct 2012			Six months toOct2011
	Earnings	WANS	EPS	Earnings	WANS	EPS
	£'000		pence	£'000		pence
Basicearnings pershare	(36)	1,207,000	-2.98	(68)	412,909	-16.47
Dilutive effect ofoptions	-	-	-	-	-	-
Diluted earningspershare	(36)	1,207,000	-2.98	(68)	412,909	(16.47)

Potential dilutive ordinary shares arise from share options. For these, a calculation is performed to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the exercise price attached to the outstanding share options. Thus, the dilutive weighted average number of shares considers the number of shares that would have been issued assuming the exercise price of the share options. If these are proved to be anti-dilutive (increase the potential earningsper 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 the current year.