27 March 2008
The Niche Group plc
("the Company")
Interim results for the six months ended 31 December 2007
Chairman's Statement
I am pleased to present the interim results of the Company for the six months
ended 31 December 2007.
During the period, the Company made a loss of £72,000. This loss was entirely
attributable to operating costs and was an improvement over the corresponding
six months of the previous year when the operating costs were £107,000.
As is common knowledge, the financial markets have been in turmoil over recent
months and consequently there have been fewer IPOs. These market conditions
contributed significantly towards the Board turning down the few pre-IPO
opportunities that were presented to it. As a result, no investments were made
in the period. However, such market conditions can produce attractive
opportunities, although fewer in number, and your Board will continue to seek
out such opportunities.
As at the period end, the Company's portfolio comprised investments in five
quoted companies and four private companies. It is the intention of the
Directors to realise these investments depending on liquidity in the market.
At 31 December 2007, the Company had cash at bank of £282,000, unquoted
investments at book value of £138,000 and its quoted investments were valued at
£80,000.
Looking forward, w hilst your B oard will continue to identify pre-IPO
opportunities, the Board is acutely conscious that the next 18 months could
prove a quiet period and therefore will be keeping an open mind as to the most
appropriate investment s trategy to take so as to return maximum value to
shareholders.
C Stainforth
Chairman
27 March 2008
Further information:
Rakesh Patel (The Niche Group) tel: 020 8371 3071
John East/Simon Clements (John East & Partners Limited) tel: 020 7628 2200
Toby Hall/Jade Mamarbachi (gth media relations) tel: 020 7153 8035
Income Statement
for the six months ended 31 December 2007
6 months 6 months Year ended
ended 31 ended 31 30 June 2007
December 200 December 200
7 6 (audited)
(unaudited) (unaudited) £'000
£'000 £'000
Revenue - - -
Administrative expenses (72) (107) (202)
Operating loss (72) (107) (202)
Amounts written off investments - - (68)
Other income - 235 253
(Loss)/Profit on ordinary activities (72) 128 (17)
before taxation
Tax on profit/(loss) on ordinary - - -
activities
(Loss)/Profit on ordinary activities (72) 128 (17)
after taxation
Retained (loss)/profit for the period (72) 128 (17)
(Loss)/Profit per ordinary share (pence) (0.07) 0.12 (0.02)
The income statement has been prepared on the basis that all operations are
continuing operations. All recognised gains or losses are dealt with through
the income statement.
Statement of recognised income and expenses
for the six months ended 31 December 2007
6 months 6 months Year ended
ended 31 ended 31 30 June 2007
December December
2007 2006 (audited)
(unaudited) (unaudited) £'000
£'000 £'000
Fair value gains/(losses) net of tax: - - -
- Available for sale financial assets (39) 52 (54)
Net income/(loss) recognised directly in (39) 52 (54)
equity
(Loss)/profit for the period (72) 128 (17)
Total recognised income/(loss) for the (111) 180 (71)
year
Balance Sheet
as at 31 December 2007
31 December Restated 31 Restated 30
2007 December June 2007
2006
(unaudited) (audited)
(unaudited)
£'000 £'000
£'000
Non- current assets
Available for sale financial assets 218 351 257
218 351 257
Current assets
Trade and other receivables 13 25 16
Cash at bank and in hand 282 414 385
295 439 401
Creditors: amounts falling due within one (21) (54) (55)
year
Net current assets 274 385 346
Total assets less current liabilities 492 736 603
Net assets 492 736 603
Capital and reserves
Called up share capital 1,029 1,029 1,029
Share premium 110 110 110
Other reserves (8) 18 31
Profit and loss account (639) (421) (567)
Equity shareholders' funds 492 736 603
Cash Flow Statement
for the six months ended 31 December 2007
6 months ended 6 months ended Year ended 30
June 2007
31 December 2007 31 December 2006 (audited)
(unaudited) (unaudited)
£'000 £'000 £'000
Cash flows from operating (72) (76) (161)
activities
Cash used in operations
Cash flows from investing
activities
Interest received - - -
Payments to acquire investments - (39) (75)
Receipts from sales of - 333 424
investments
Net cash generated from - 294 349
investing activities
(Decrease)/increase in cash (72) 218 188
Notes to the Interim Results
1. The company has historically prepared its audited financial statements on
the basis of UK Generally Accepted Accounting Practice ("UK GAAP"). In the
current year the company has adopted International Financial Reporting
Standards ("IFRS") for the first time as the company is required to present
its annual financial statements in accordance with accounting standards
adopted for use in the European Union. As a result these interim accounts,
which are unaudited, have been prepared on the basis of the accounting
policies which apply for the financial year to 30 June 2008. These
standards remain subject to ongoing amendment and/or interpretation and are
therefore still subject to change. Accordingly, information contained in
these interim financial statements may need updating for subsequent
amendments to IFRS required for first time adoption or for new standards
issued post the balance sheet date. This document includes reconciliations
of the company's equity to IFRS at the comparative balance sheet dates of
31 December 2006 and 30 June 2007 and on the date of transition to IFRS, 1
July 2006.
The comparative information for the six months ended 31 December 2006 and the
year ended 30 July 2007 have been restated on the basis of IFRS.
Reconciliations between the financial statements previously reported under UK
GAAP and on the basis of IFRS are set out in note 5 to this interim statement.
The interim financial statements are unaudited and were approved by the board
of directors on 15 March 2008. The financial information contained in this
interim report does not constitute statutory accounts as defined in section 240
of the Companies Act 1985. The financial information for the year ended 30 June
2007 has been extracted from the statutory accounts for that year and adjusted
for the conversion to IFRS. The statutory accounts for the year ended 30 June
2007, which were prepared under UK GAAP, received an unqualified audit report
and did not contain a statement made under section 237 (2) of the Companies Act
1985, and have been filed with the Registrar of Companies.
Following the implementation of IFRS, the company's accounting policies have
been consistently applied to all the periods presented unless otherwise stated.
2. Loss per share
The loss per share for the six months ended 31 December 2007 has been
calculated on the basis of the loss after taxation for the period of £72,000
(2006: £128,000 profit) and the weighted average number of shares in issue
during the period of 103,339,000 (2006: 103,339,000).
3. Copies of the interim results will be available at the registered office of
the Company, One Great Cumberland Place London W1H 7AL and on the Company's
website www.nichegroupplc.co.uk.
4. The directors do not propose to pay a dividend for the period.
5. Reconciliation of UK GAAP to IFRS
Reconciliation of equity at 1 July 2006
UK GAAP at 1 Effect of IFRS at 1
July 2006 transition July 2006
to IFRS
£'000 £'000
£'000
Non- current assets
Available for sale financial assets 391 202 593
391 202 593
Current assets
Trade and other receivables 26 - 26
Cash at bank and in hand 196 - 196
222 - 222
Creditors: amounts falling due within one (23) - (23)
year
Net current assets 199 - 199
Total assets less current liabilities 590 202 792
Net assets 590 202 792
Capital and reserves
Called up Share Capital 1,029 - 1,029
Share Premium 110 - 110
Other reserves - 202 202
Profit and loss account (549) - (549)
Equity shareholders' funds 590 202 792
Reconciliation of equity as at 31 December 2006 and 30 June 2007
31 December 2006 30 June 2007
Reported Effect of Reported Reported Effect of 30 June
under UK transition under IFRS under UK transition 2007
GAAP to IFRS GAAP to IFRS
(unaudited) (audited)
(unaudited) £'000 (audited) £'000
£'000 £'000
£'000 £'000
Non- current
assets
Available for 333 18 351 226 31 257
sale financial
assets
333 18 351 226 31 257
Current assets
Trade and other 25 25 16 16
receivables
Cash at bank and 414 414 385 385
in hand
439 439 401 401
Creditors: (54) (54) (55) (55)
amounts falling
due within one
year
Net current 385 385 346 346
assets
Total assets less 718 18 736 572 31 603
current
liabilities
Net assets 718 18 736 572 31 603
Capital and
reserves
Called up Share 1,029 1,029 1,029 1,029
Capital
Share Premium 110 110 110 110
Other reserves - 18 18 - 31 31
Profit and loss (421) (421) (567) (567)
account
Equity 718 18 736 572 31 603
shareholders'
funds
The transition to IFRS had no effect on the income statement for the periods
ended 31 December 2006 and 30 June 2007.
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