18 December 2007
The Niche Group plc
("Niche" or "the Company")
Annual Results
for the year ended 30 June 2007
Chairman's Statement
I am pleased to report on the results of the Company for the year ended 30 June
2007.
The Company made a loss for the year of £17,377 which was a significant
improvement on the last financial year when the Company reported a loss of £
197,350.
During the year, the Company invested £20,000 in WebApp Technologies Limited, a
private company which develops and markets on-demand software; £31,000 in
Deuxmil Marine plc and £15,000 in Premier Management Holdings plc, both of
which are listed on AIM.
The Company realised net profits of £253,000 from the disposal of a number of
its investments including Phorm, Inc (formally 121Media, Inc.) which realised a
profit of £212,000 and a return on investment of 425 per cent.; Ely Property
Group plc realising a profit of £23,000 and a return on investment of 49 per
cent.; and OCZ Technology Group, Inc, giving a profit of £36,000 and a return
of 209 per cent. The Company made provisions against the cost of its investment
of £50,000 in the Creative Education Corporation plc, which was placed in
administration during the period, and a further provision of £18,000 against
its investment in Madwaves (UK) Limited.
The Company's portfolio comprises investments in five quoted companies and four
private companies. The portfolio of quoted investments is currently trading at
around the original cost. It is the intention of the directors to realise these
investments depending on liquidity in the market.
At 30 November 2007, the Company had cash at bank of £294,895, unquoted
investments at cost of £138,000 and its quoted investments were valued at £
87,000.
The directors are satisfied that the Company's strategy of investing in pre-IPO
companies with the potential of achieving gains on flotation is being met and
are particularly pleased with the significant gains made on a number of
disposals during the year.
C Stainforth
Chairman
18 December 2007
Further information:
Christopher Stainforth (The Niche Group) tel:0207725 0376
John East/Simon Clements(John East & PartnersLimited) tel:020 7628 2200
Toby Hall/Jade Mamarbachi (gth media relations) tel: 020 7153 8035
Profit and Loss Account
for the year ended 30 June 2007
Notes 2007 2006
£ £
Administrative expenses (202,508) (188,248)
Operating loss (202,508) (188,248)
Other income 2 253,103 75,504
Amounts written off investments 3 (67,972) (84,606)
Loss on ordinary activities before taxation (17,377) (197,350)
Tax on loss on ordinary activities 4 - -
Loss on ordinary activities after taxation (17,377) (197,350)
Accumulated loss brought forward (549,703) (352,353)
Accumulated loss carried forward (567,080) (549,703)
Loss per share (pence)
- Basic 5 (0.017) (0.191)
- Diluted 5 (0.017) (0.191)
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.
Balance Sheet
As at 30 June 2007
Notes 2007 2006
£ £ £ £
Fixed assets
Investments 6 226,434 390,792
Current assets
Debtors 16,028 25,968
Cash at bank and in hand 385,357 196,532
401,385 222,500
Creditors: amounts falling due (55,358) (23,454)
within one year
Net current assets 346,027 199,046
Total assets less current 572,461 589,838
liabilities
Capital and reserves
Called up share capital 1,029,515 1,029,515
Share premium account 110,026 110,026
Profit and loss account (567,080) (549,703)
Shareholders' funds - all equity 572,461 589,838
interests
Cash Flow Statement
for the year ended 30 June 2007
Notes 2007 2006
£ £ £ £
Net cash outflow from operating 7 (160,664) (105,682)
activities
Capital expenditure and
financial investment
Payments to acquire investments (74,552) (164,940)
Receipt from sales of 424,041 123,099
investments
Net cash inflow/(outflow) from 349,489 (41,841)
capital expenditure and
financial investment
Net cash inflow/(outflow) before 188,825 (147,523)
financing
Financing
Purchase of own shares - 5,000
Net cash outflow from financing - (5,000)
Increase/(Decrease) in cash 8 188,825 (152,523)
Notes to the Accounts
1 Accounting policies
1.1 Basis of preparation
The accounts have been prepared under the historical cost convention, and in
accordance with applicable accounting standards.
1.2 Investments
Fixed asset investments are stated at cost less any provision for permanent
diminution in value. Convertible loan stocks are included in investments at
cost.
1.3 Deferred taxation
Deferred tax is provided in full on timing differences which result in an
obligation at the balance sheet date to pay more tax, or a right to pay less
tax, at a future date, at rates expected to apply when they crystallise based
on current tax rates and law. Timing differences arise from the inclusion of
items of income and expenditure in taxation computations in periods different
from those in which they are included in the accounts. Deferred tax is not
provided on timing differences arising from the revaluation of fixed assets
where there is no commitment to sell the assets. Deferred tax assets are
recognised to the extent that it is regarded as more likely than not that they
will be recovered. Deferred tax assets and liabilities are not discounted.
2. Other Income
2007 2006
£ £
Profit on disposal of investments 253,103 75,504
3. Amounts written off investments
2007 2006
£ £
Amounts written off fixed investments:
* permanent diminution in value 67,972 84,606
4. Tax on loss on ordinary activities
2007 2006
£ £ £ £
Current tax
UK corporation tax
Corporation tax on income for - -
period
- -
Factors affecting the tax charge
for the year
Loss on ordinary activities before (17,377) (197,350)
taxation
Loss on ordinary activities before (5,213) (59,205)
taxation multiplied by standard
rate of UK corporation tax of 30.00
per cent. (2006: 30.00 per cent.)
Effects of:
Movement in tax losses (13,496) 39,802
Difference between taxable gain and 74,248 (5,979)
accounts profit on asset disposal
Other tax adjustments (55,539) 25,382
Current tax charge - -
Current tax charge
The company has estimated surplus management expenses of £421,080 (2006: £
466,462) available for carry forward against future profits.
Due to the uncertainty of future profits against which to relieve these
management charges no deferred tax asset has been recognised
5. Loss per share
The calculation of the basic and diluted loss per share is based on the loss
attributable to ordinary shareholders of £17,377 (2006: £197,350), divided by
the weighted average number of shares in issue during the year.
The weighted average number of shares used on the calculations are set out
below:
2007 2006
Number of Number of
shares shares
102,951,500 103,337,938
6. Fixed asset investments
Shares in Shares in Total
unquoted quoted
interests interests
£ £ £
Cost
At 1 July 2006 220,553 254,845 475,398
Additions 20,000 54,552 74,552
Disposals - (170,938) (170,938)
At 30 June 2007 240,553 138,459 379,012
Provisions for diminution in value
At 1 July 2006 84,606 - 84,606
Permanent diminution in value 17,972 50,000 67,972
At 30 June 2007 102,578 50,000 152,578
Net book value
At 30 June 2007 137,975 88,459 226,434
At 30 June 2006 135,947 254,845 390,792
In the opinion of the directors, the aggregate value of the company's
investments is not less than the amount included in the balance sheet date.
The market value of the company's quoted investments as at 30 June 2007 is £
119,723.
7. Net cash outflow from operating activities
2007 2006
£ £
Reconciliation to operating loss:
Operating loss (202,508) (188,248)
Decrease in debtors 9,940 77,894
Increase in creditors 31,904 4,672
(160,664) (105,682)
8. Reconciliation of net cash flow to movement in net cash
2007 2006
£ £
Increase/(Decrease) in cash 188,825 (152,523)
Net cash at 1 July 2006 196,532 349,055
Net cash at 30 June 2007 385,357 196,532
9. Analysis of net cash
At 1 July 200 Cash flow At 30 June 2007
6
£ £ £
Cash at bank and in hand 196,532 188,825 385,357
196,532 188,825 385,357
10. Dividends
No dividends were paid or proposed in respect of the year ended 30 June 2007.
11. A copy of the Annual Report and Accounts will be sent to all shareholders
this week and will be available from the Company's registered office, One Great
Cumberland Place, London W1H 7AL.