Alltrue Investments: Final Results | Company Announcements

Tuesday 24 June, 2008

Alltrue Investments

Final Results

RNS Number : 3463X

Alltrue Investments PLC

24 June 2008

FOR IMMEDIATE RELEASE 24 June 2008

ALLTRUE INVESTMENTS PLC ('Alltrue' or 'the Company')

REPORT AND ACCOUNTS

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2007

In the year to 31 December 2007 Group revenue rose to £1,812,000 up from £1,029,000 in 2006. Excluding the contribution from Information Exchange Limited ('IXL') which was sold in October 2007 the comparable figures are £1,416,000 and £407,000 respectively. The current operating subsidiaries, Falcon Securities (UK) Ltd ('Falcon') and Montague Pitman Stockbrokers Ltd ('MPS'), both traded profitably. Overall Group operating profits (excluding exceptional items) was £64,000 (including a contribution of £85,000 from IXL to date of disposal) which compares to an operating loss of £136,000 in 2006. On a Group basis the disposal of IXL realised a loss of £390,000 which has been shown in the Accounts as an exceptional item and is reflected in the Loss before Tax for the Group of £326,000.

As reported Alltrue sold its wholly owned subsidiary IXL back to the original vendors in exchange for their interest in Rubi Ltd, a special purpose vehicle that holds 50m Alltrue ordinary shares, being the original consideration paid by Alltrue for the acquisition of IXL, together with arrangements for the repayment by IXL of inter-company debt due to Alltrue amounting to £240,000. The commercial and business development performance of IXL did not ultimately meet the Board's initial expectations and it was felt that the IXL brand would be better able to develop outside the Alltrue Group. Nevertheless both companies have agreed to continue to work together to exploit the synergies already identified including participation by MPS at future IXL investor events. As a result of this transaction Simon Campbell and Alpesh Patel ceased to have any interest in Alltrue's ordinary shares and resigned as directors of Alltrue. More recently Mr Patel has been appointed a director of MPS.

With regard to the continuing operations, turnover within Falcon increased significantly largely as a reflection of activity through MPS under the Appointed Representative arrangements. Falcon recorded an operating profit of £85,970 (2006 £83,428). Activity in stockbroking services within both the cash market and through the third party spread betting services to Falcon's underlying high net worth and professional clients picked up in the early part of the second half of the year but again tailed off towards the close reflecting much more difficult general market conditions. Corporate broking fees were lower reflecting the downturn in corporate transactions. Retainer fees were also lower as a number of clients are investment vehicles whose shares were either suspended from trading or had their listing cancelled on AIM following changes to LSE rules in 2006.

The Board considers the performance of MPS was very creditable in what was a 'start up' year. The Appointed Representative arrangements came into force in March 2007 and despite significant expenditure to help establish its brand in the retail client sector MPS recorded an operating profit before tax of £38,708. MPS now has an established customer base to which it offers a range of advisory services both in small capitalisation and main market listed securities. The company also provides CFD trading services to more sophisticated retail clients and is now in a position to incorporate advice and dealing in ISA held securities and more recently has introduced an 'on line' white labelled spread betting capability through a recognised third party supplier.

ALLTRUE INVESTMENTS PLC

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2007

This has been a year of establishing two complementary stockbroking businesses and given the economic climate the Board is very satisfied to be reporting a profit, on the operating level at least, and believes that given the momentum of each business the Group will be well placed to take advantage when market volumes and activity return to normal levels. I look forward to reporting further progress to you in the future.

For further information contact:

Leo Knifton - Chairman, Alltrue Investments Plc

Tel: 020 7251 3762

Roland Cornish - Beaumont Cornish Limited, Nominated Adviser

Tel: 020 7628 3396

The Report and Accounts have been posted to shareholders and are available on the website: www.alltrueinvestments.co.uk

ALLTRUE INVESTMENTS PLC

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2007

		2007	2006
	Notes	£'000	£'000
			(As restated)

Revenue		1,812	1,029

Cost of sales		(476)	(339)
		─────────	─────────
Gross Profit		1,336	690

Administrative expenses		(1,272)	(826)
		─────────	─────────
Operating profit		64	(136)

Finance costs	7	(20)	-
Finance income	7	20	19
Loss on disposal of subsidiary		(390)	-
		─────────	─────────
Loss before tax	8	(326)	(117)
Tax	9	-	3
		─────────	─────────
Loss after tax		(326)	(114)
Minority interests		(4)	-
		─────────	─────────
Loss for the period	23	(330)	(114)
		══════	═══════
Attributable to:
Equity holders of the parent company
Equity holders of the parent company		(326)	(114)
		══════	═══════
Earnings/(loss) per share before exceptional costs - basic and diluted


	11	0.03p	(0.06p)
		══════	═══════


Loss per share after exceptional costs - basic and diluted
	11	(0.13p)	(0.05p)
		══════	═══════

There is no difference between basic and diluted loss per share.
Discontinued activities - Profit after tax included above is £85,000.

ALLTRUE INVESTMENTS PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

AS AT 31 DECEMBER 2007

	Share capital £’000	Share premium £’000	Other Reserves £’000	Retained Loss £’000	Total Equity £’000
As at 1 January 2007	244	732	1,350	(251)	2,075
Losses after tax for the year	-	-	-	(330)	(330)
	─────	─────	─────	─────	─────
As at 31 December 2007	244	732	1,350	(581)	1,745

	═════	═════	═════	═════	═════

	Share capital £’000	Share premium £’000	Other Reserves £’000	Retained Loss £’000	Total Equity £’000
As at 1 January 2006	94	725	-	(137)	682
Movement in Reserves Losses after tax for the year	150 -	7 -	1,350 -	- (114)	1,507 (114)
	─────	─────	─────	─────	─────
As at 31 December 2006	244	732	1,350	(251)	2,075

	═════	═════	═════	═════	═════

Share capital (deferred and ordinary) is the amount subscribed for shares at nominal value.

Share premium represents the excess of the amount subscribed for share capital over the nominal value of the respective shares net of share issue expenses.

Retained loss represents the cumulative loss of the Group attributable to equity shareholders. The balances as at 1 January 2006 and 31 December 2006 have already been restated as a result of the transition to IFRS. Refer to note 30 for details.

Other reserves relate to the issue of new shares to fund the acquisition of Information Exchange Ltd and Falcon Securities Holdings Ltd was effected by a share for share exchange. This utilised merger relief provisions under section 131 of the Companies Act 1985, resulting in credit to the merger reserve of £1,350,000.

ALLTRUE INVESTMENTS PLC

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2007

	Notes	2007		2006
Assets		£'000		£'000 As Restated
Non Current assets
Intangible assets	12	1,125		1,768
Property plant & equipment	13	53		37
		────────		────────
		1,178		1,805
		────────		────────
Current assets
Financial Assets	15	54		-
Trade and other receivables	16	459		218
Cash and cash equivalents	17	536		305
		────────		────────
		1,049		523
Liabilities
Current Liabilities
Trade and other payables	18	(228)		(253)
		────────		────────
Net current assets		821		270
		────────		────────

Non Current Liabilities
Financial liabilities - borrowings
Interest bearing loans and borrowings	19	(250)		-
				-
		────────		────────
		(250)		-

		────────		────────
NET ASSETS		1,749		2,075
		═══════		═══════
Shareholders' Equity
Called up share capital	20	244		244
Share premium	21	732		732
Merger Reserve	21	1,350		1,350
Retained earnings	23	(581)		(251)
		────────		────────
Total Equity Due to Alltrue Investment Plc		1,745		2,075
Minority Interests		4		-
			────────	────────
Total Equity	23	1,749		2,075
		═══════		═══════

The financial statements were approved and authorised for issue by the board of Directors on 23 June 2008 and were signed on its behalf by:


L.E.V. Knifton
Director

ALLTRUE INVESTMENTS PLC

BALANCE SHEET
AS AT 31 DECEMBER 2007

	Notes	2007	2006
Assets		£'000	£'000
Non Current assets
Financial assets	14	1,343	1,751
Trade and other receivables	16	240	-
		────────	────────
		1,583	1,751
		────────	────────
Current assets
Trade and other receivables	16	10	286
Cash and cash equivalents	17	52	183
		────────	────────
		62	469

Liabilities
Current Liabilities
Trade and other payables	18	(89)	(108)
		────────	────────
Net current assets/(liabilities)		(27)	361
		────────	────────

NET ASSETS		1,556	2,112
		═══════	═══════
Shareholders' Equity
Called up share capital	20	244	244
Share premium	21	732	732
Other reserve	22	1,350	1,350
Retained earnings	23	(770)	(214)
		────────	────────
Total Equity	23	1,556	2,112
		═══════	═══════

ALLTRUE INVESTMENTS PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2007

	Notes	2007	2006
		£'000	£'000
Cash flows from operating activities			(As restated)
Cash generated from (consumed in)operations	24	31	(274)
		────────	────────
Net cash from operating activities		31	(274)
		────────	────────

Cash flows from investing activities
Purchase of tangible fixed assets		(50)	-
Interest received		20	19
Interest paid		(20)
		────────	────────
Net cash outflow from investing activities		(50)	19
		────────	────────
Net cash inflow from taxation		-	3
		────────	────────
Cash flows from financing activities
New loan in period		250	-
Purchase of subsidiary		-	(62)
		────────	────────
Net cash from financing activities		250	(62)
		────────	────────

Increase in cash and cash equivalents		231	(314)
Cash and cash equivalents at beginning of year	25	305	619
		────────	────────
Cash and cash equivalents at end of year	25	536	305
		══════	═══════

ALLTRUE INVESTMENTS PLC

COMPANY CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2007

	Notes	2007	2006
		£'000	£'000
Cash flows from operating activities
Cash consumed by operations	24	(138)	(199)
		────────	────────
Net cash from operating activities		(138)	(199)
		────────	────────

Cash flows from investing activities
Interest received		7	7
Acquisition of subsidiary		-	(244)
		────────	────────
Net cash from investing activities		7	(237)
		────────	────────

(Decrease) in cash and cash equivalents		(131)	(436)
Cash and cash equivalents at beginning of year	25	183	619
		────────	────────
Cash and cash equivalents at end of year	25	52	183
		══════	═══════

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2007

4	Employees and Directors	2007	2006
		£'000	£'000

	Wages and salaries	566	234
	Social security costs	38	11
		────────	────────
		604	245
		══════	═════

During the period company paid director's emoluments of £51,000 (2006 - £43,000). In addition

a director was paid £25,000 by a subsidiary company.

The average monthly number of employees during the period was as follows:-

	2007	2006

Directors	5	5
Administration and trading staff	14	3
	───────	───────
	19	8
	══════	════

5. Segmental Analysis

The Group operates in no other geographical location other than the United Kingdom. There is also no segmental area of operations.

6.	Revenue	2007	2006
		£'000	£'000

	Sales of Services	1,812	1,029
		───────	───────
		1,812	1,029
		══════	═════

7.	Net Finance Income	2007	2006
		£'000	£'000
	Finance income:
	Bank interest income	20	19
	Finance costs
	On other loan payable within five years	(20)	-
		───────	───────
	Net Finance Income	-	19
		══════	═════

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2007

8.	Operating profit	2007	2006
		£'000	£'000

	Depreciation	27	15
	Operating lease payments - Land and buildings	70
	Auditors remuneration	33	34
		══════	═════

	Loss on disposal of information Exchange Limited (see Note 14)	390	-
		───────	───────
9.	Tax
	As a result of the losses incurred in the year and losses brought forward no tax charge has arisen.


		2007	2006
		£'000	£'000
	Current tax charge	-	(3)
		══════	═════
	Factors affecting the tax charge

		2007	2006
		£'000	£'000
	Loss on ordinary activities before taxation	(326)	(117)
		══════	═════
	Loss on ordinary activities before tax multiplied by
	Standard rate of corporation tax at 30% (2006-30%)	98	35
	Effects of
	Other tax adjustments	(98)	(38)
		───────	───────
	Current tax charge/(recovery)	-	(31)
		══════	═════

	Expenses not deductible in determining taxable loss	106	-
	Depreciation	(5)	-
	Capital allowances	-	-
	Other tax adjustments	-	56
	Prior year losses utilised		(28)
		───────	───────
	Tax credit	98	38
		═══════	═════

	As at 31 December 2007, the group carried forward estimated tax losses of £367,000 (2006 - £135,000). The deferred tax asset on these estimated tax losses at 28% (2006- 30%) would be £103,000 (2006: £40,000) but this has not been recognised due to the uncertainty of its recovery.

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2007

Loss for the parent company

As permitted by section 230 of the Companies Act 1985, the income statement of the parent company is not presented as part of these financial statements.

	2007		2006
	£'000		£'000
Loss for the year		155	91
	══		══════

11	Basic and diluted loss per share

	The basic loss per share is calculated by dividing the profit before exceptional costs of £64,000 and loss after exceptional costs of £330,000 (2006 - both: £114,000) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period, which is 244,167,500 (2006: 231,427,774). The diluted loss per share is calculated using the weighted average number of shares adjusted to assume the conversion of all dilutive potential ordinary shares. For the year ended 31 December 2007, the diluted loss per share is equivalent to the basic loss per share. The diluted loss per share is calculated using the weighted average number of shares adjusted to assume the conversion of all dilutive potential ordinary shares, which is 244,167,500 (2006: 231,427,774. Therefore for the period ended 31 December 2007, the diluted loss per share is equivalent to the basis loss per share.

12	Intangible assets
		Cost	Amortisation	Net Book Value
	Goodwill	£'000	£'000	£'000

	At 1 January 2007	1,768	-	1,768
	Written off on disposal of Information Exchange Limited
	Written off on disposal of Information Exchange Limited	(818)	-	(818)

		──────	──────	───────
	At 31 December 2007	950	-	950
		──────	──────	───────
	Investments
	At 1 January 2007
	Acquired on disposal of Information Exchange Limited: 50,000,000 ordinary shares of 0.1p each in Alltrue Investments Plc surrendered by owner of Information Exchange Limited


		175	-	175
		───────	──────	───────
		175	-	175

		───────	──────	───────
	Net book value
	At 31 December 2007	1,125	-	1,125
		══════	══════	══════

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2007

12.

Intangible Assets (continued…)

The group assesses at each reporting date whether there is an indication that an asset may be impaired, by considering the net present value of discounted cash flows forecasts. If an indication exists an impairment review is carried out. At the period end, there was no indication of impairment of the value of goodwill or of development costs

The directors have also concluded that no amortisation of goodwill is necessary, because its value has been actively maintained since it was acquired.

The development and website intangibles are internally generated.

13.	Property, Plant and equipment		Plant and machinery	Fixtures, Fittings and Equipment	Website	Totals
	Cost		£’000	£’000	£’000	£’000

	At 1 January 2007		31	36	-	67
	Additions		2	19	29	50
	Disposal		(1)	(13)	-	(14)
			───────	───────	───────	───────
	At 31 December 2007		32	42	29	103
			───────	───────	───────	───────

	Depreciation
	At 1 January 2007		17	13	-	30
	Charge for the year		11	7	9	27
	Disposals		-	(7)	-	(7)
			───────	───────	───────	───────
	At 31 December 2007		28	13	9	50
			───────	───────	───────	───────
	Net Book Value
	At 31 December 2007		4	29	20	53
			══════	══════	══════	══════

		Plant and Machinery		Fixtures, Fittings and Equipment	Website	Total
		£’000		£’000	£’000	£’000
	Cost
	At 1 January 2006	-		-	-	-
	On acquisition of subsidiaries	31		32	-	63
	Additions	-		3	-	3
	At 31 December 2006	31		35	-	66

	Depreciation
	At 1 January 2006	-		-	-		-
	On acquisition of subsidiaries	7		7	-		14
	Charge for the year	10		5	-		15
	At 31 December 2006	17		12	-		29

	Net book value
	At 31 December 2006	14		23	-		37

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2007

14	Financial assets
				Shares in group undertakings
	Cost			£'000
	As at 1 January 2007			1,751
	Additions			1
	Disposals			(584)
				───────
	At 31 December 2007			1,168
				═══════

				Other fixed asset investments

				£'000
	At 1 January 2007			-
	Additions			175
				───────
				175
				═══════
	Net Book Value
	At 31 December 2007			1,343
				═══════
			Shares in group undertakings 2006
		Cost	£'000
		At 1 January 2006	-
		Additions	1,751
			───────
		At 31 December 2006	1,751
			═══════

The company owns 100% of Falcon Securities Holdings Limited, an investment company, which in turn owns 100% of Falcon Securities (UK) Limited, a stockbroker. During the year the company acquired 81.1% of Montague Pitman Stockbrokers Limited, providers of corporate financial services and stock-broking. All these companies are registered in England.

Minority shareholders of Montague Pitman Stockbrokers Limited have options to subscribe for new ordinary shares in the company should they meet their performance targets, up to reducing the holding of Alltrue Investments Plc to 51%.

During the year the company sold its 100% subsidiary Information Exchange Limited, to that company's directors, in exchange for their holdings in Rubi Limited totalling 50,000,000 ordinary shares of 0.1p each in Alltrue Investments Limited, valued for the purposes of the transaction at £175,000 - see above. The loss on disposal has been expensed through the profit and loss account at an exceptional cost (see note 8 above).

In the opinion of the directors, the aggregate value of the company's investment in subsidiary undertakings is not less than the amount included in balance sheet.

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2007

14	Financial assets

As at 31 December 2007 the aggregate capital and reserves for Falcon Securities Holdings Limited were £328,641 (2006: £328,641 -As restated) and the profit for the period then ended was £nil (2006: £nil - As restated).

As at 31 December 2007 the aggregate capital and reserves for Falcon Securities UK Limited were £348,641 (2006: £253,149) and the profit for the period then ended was £95,492 (2006: £91,941).

As at 31 December 2007 the aggregate capital and reserves for Montague Pitman Stockbrokers Limited were £12,642 and the profit for the period then ended was £12,013.

As at 31 December 2007 the aggregate capital and reserves for Rubi Limited were £24,518 and the loss for the period then ended was £nil.

Information Exchange Limited contributed sales of £396,000, expenses of £311,000 and profit of £85,000 in the period to disposal.

15	Investments	2007	2006
		£	£

	Listed investments	54	-
		═════	═════

16.	Trade and other receivables	Group		Company
		2007	2006	2007	2006
		£'000	£'000	£'000	£'000
	Current:
	Trade	150	57	-	-
	Other debtors	19	115	5	30
	Amounts owed in group undertakings	-	-	-	253
	Prepayments	50	46	5	3
		───────	───────	───────	───────
		219	218	10	286
	Non-current
	Amounts owed by former group undertakings	240	-	240	-
		───────	───────	───────	───────
	Aggregate amounts	459	218	250	286
		═════	══════	═════	═════

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2007

17.	Cash and Cash equivalents	Group		Company
		2007	2006	2007	2006
		£'000	£'000	£'000	£'000

	Bank accounts	536	305	52	183
		════	═════	═════	════

18.	Trade and other payables	Group		Company
		2007	2006	2007	2006
		£'000	£'000	£'000	£'000
	Current:
	Bank overdraft	-	13	-	-
	Trade creditors	67	129	10	5
	Other creditors	77	40	-	1
	Amounts owed in to group undertakings	-	-	63	63
	Accrued expenses	84	71	16	39
		───────	───────	───────	───────
	Aggregate amounts	228	253	89	108
		═════	══════	═════	═════

19.	Financial Liabilities - Borrowings (Group)	2007	2006
		£'000	£'000

	Convertible loan notes	150	-
	Secured loans	100	-
		───────	───────
	Aggregate amounts	250	-
		═════	═════
	Analysis of loans
	Wholly repayable within five years	250	-
		═════	═════
	Loan maturity analysis
	In more than two years but not more than five years	250	-
		═════	═════

The convertible loan notes were issued on 16th February 2007 with a redemption date of 31 January 2012. The loan notes are convertible into 1 Ordinary share of 1p each for every £6 of loan notes. At 31 December 2007 there remained £150,000 of loan notes outstanding. The company accrues interest at the rate of 10% per annum from the investment date of 16 February 2007 until the date on which the convertible notes are converted or up to the redemption date.

The Company also has £100,000 of secured loan that is not convertible. This loan is acquiring interest at the rate of 10% per annum from the investment date, 16 February 2007, until either the convertible loan notes above are converted or two years from the investment date, whichever is the later. Subsequently the secured loan will accrue interest at 4% per annum until the redemption date of 31 January 2012.

Both the secured and convertible loans are secured by a debenture containing fixed and floating charges over the assets of the company. All payments of interest and repayment of the secured loan will become payable when the company has sufficient available cash after providing for its working capital requirements as determined by Alltrue Investments Plc, the Investor and the Executive Directors from time to time.

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2007

20	Called up share capital
			Nominal	2007	2006
			value	£'000	£'000
	Authorised
	Number	Class
	500,000,000	ordinary	0.1p	500	500
				═════	═════
	Allotted, issued and fully paid
	Number
	244,167,500	Ordinary	0.1p	244	244
				═════	═════

There is no charge for share-based payments as the fair values at the date of grant were below the exercise prices:

The details of the share options are as follows:

	Number of options	Weighted average exercise Price	Number of options	Weighted average exercise Price
		£		£
Outstanding at the beginning of the year	-	-	-	-
Granted on 20 February 2007	21,000,000	0.005	-	-
Exercise	-	-	-	-
	─────────	─────────	─────────	─────────
Balance carried forward	21,000,000	0.005	-	-
	══════	══════	══════	══════

The fair values of the options granted have been calculated using Black-Scholes model assuming the inputs shown below:


Grant date	Feb 07
Share price at grant date	0.35p
Exercise price	0.5p
Option life in years	6 years
Risk free rate	5.25%
Expected volatility	10%
Expected dividend yield	0%
Fair value of option	0p
	═════

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2007

21	Consolidated Equity Reserves

		Share capital	Share premium	Merger relief reserve
					Totals
		£'000	£'000	£'000	£'000

	At 1 January 2007 and 31 December 2007	244	732	1,350	2,326
		═══	═════	═════	════


	Share capital	Share premium	Merger relief reserve
				Totals
	£'000	£'000	£'000	£'000
The equity reserves of Alltrue Investments plc consist of:

At 1 January 2007 and 31 December 2007	244	732	1,350	2,326
	═══	═════	═════	════

22	Company equity instruments

		Retained earnings	Share premium	Merger relief reserve
					Totals
		£'000	£'000	£'000	£'000

	At 1 January 2007	(214)	732	1,350	1,868
	Deficit for the year	(556)	-	-	(556)
		───────	───────	──────	───────
	At 31 December 2007	(770)	732	1,350	1,312
		═══════	═════	═════	═══════

23	Reconciliation of movement in shareholders' funds and reserves	Equity Instruments	Profit and loss account	Totals
		£'000	£'000	£'000

	At 1 January 2007	2,326	(251)	2,075
	Loss for the period	-	(330)	(330)
		─────	─────	─────
	At 31 December 2007	2,326	(581)	1,745
		═════	═════	═════

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2007

24	Reconciliation of loss before tax to cash generated from operations	2007	2006
		£’000	£’000
	Group
	Profit/(loss) before tax	64	(136)
	Depreciation charges	70	15
		─────	─────
		134	(121)
	Increase in investments	(54)	-
	(Increase)/decrease in trade and other receivables	30	(45)
	Decrease in trade and other payables	(79)	(108)
		─────	─────
	Cash generated from (consumed in) operations	31	(274)
		═════	═════
	Company
	Loss before tax	(155)	(91)
	Increase/(decrease) in trade and other receivables	36	(195)
	(Decrease)/Increase in trade and other payables	(19)	87
		─────	─────
	Cash consumed in operations	(138)	(199)
		═════	═════

Information Exchange Limited contributed the following to the cash flows for the year.

	Cashflow from operating activities	(17)
	Cash flows from financing	18
	Increase in cash and cash equivalents	1
		═════

25. Cash and cash equivalents

The amounts disclosed in the cash flow statement in respect of cash and cash equivalents are in respect of these balance sheet amounts:

Group	2007	2006
	£'000	£'000

Cash and cash equivalents	536	305
	═════	═════
Company

Cash and cash equivalents	52	183
	═════	═════

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2007

26. Financial Commitments

Operating lease commitments

The group leases office premises under a non-cancellable operating lease agreement, which contains various escalation clauses and renewal rights. Lease expenditure is charged to the income statement during the period as incurred.

The future aggregate minimum lease payments under non-cancellable operating leases are as follows:

	2007	2006
	£'000	£'000

No later than one year	-	-
Later than one year and no later than five years	-	-
Later than five years	45	53
	─────	─────
	45	53
	═════	═════

Capital commitments

There was no capital expenditure that had been contracted for at the balance sheet date but not yet incurred.

27. Contingent liabilities

The group has no contingent liabilities arising in respect of legal claims arising from the ordinary course of business and it is not anticipated that any material liabilities will arise from the contingent liabilities other than those provided for.

28. Post balance sheet events

There have been no events after the balance sheet date which require disclosure in the financial statements

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2007

29. Financial Instruments

The objectives, policies and strategies applied by the group with respect to financial instruments are determined at a group level. The group's principal financial instruments are cash and its bank loans and overdraft facilities.

The group adopts a conservative policy towards the management of its cash and has not engaged in any speculative trades. The group has no derivative instruments or hedging transactions. The group has other financial instruments such as trade creditors, which arise directly from its operations. The carrying amounts of financial assets and liabilities of the group and the company at the balance sheet date approximated their fair values. The carrying amounts of cash and cash equivalents, trade and other receivables/payables, and borrowings approximate fair values due to the relatively short term maturity of these financial instruments.

30	Transition to IFRS
	Introduction Alltrue Investments PLC has previously prepared its consolidated Financial Statements under United Kingdom Generally Accepted Accounting Practice (GAAP). With effect from 1 January 2007, it is required to prepare its consolidated Financial Statements in accordance within International Reporting Standards (IFRS) as adopted by the European Union. The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended 31 December 2007, the comparative information presented in these financial statements for the year ended 31 December 2006 and in the preparation of the opening IFRS balance sheet at 1 January 2006. (transition date). The IFRS transition statement has been prepared to explain the impact on the reported result of Alltrue Investments Plc and to set out the changes to the accounting policies of the group together with provision of reconciliations of the restatement of previously published comparative financial information. References to IFRS throughout this document refer to the application of International Accounting Standards and International Financial Reporting Standards. Overview of impact of adoption of IFRS Conversion to IFRS affect Alltrue Investments PLC's reporting particularly in respect of intangible assets and capitalised development expenditure. It does not affect the cash flows or the underlying prospects of the business; however, the implementation of the new standards may result in increased volatility in reported result due to changes in accounting for intangible asset.
	Revised Group Accounting policies under IFRS.
	The following accounting policies represent changes from the accounting policies stated in the financial statements for the year ended 31 December 2006. The remaining accounting policies remain the same as in the financial statements for the year ended 31 December 2006 which are consistent with IFRS. All business combinations are accounted for by applying the purchase method. Goodwill represents amounts arising on acquisition of subsidiary undertakings. Goodwill is now stated at cost or deemed cost less any accumulated impairment losses.

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2007

Transition statement from UK GAAP to IFRS - 31 December 2006

Income statement	UK GAAP at 31 December 2006	Goodwill Amortisation IAS 38	IFRS at 31 December 2006
	£'000	£'000	£'000

Revenue	1,029	-	1,029
Cost of sales	(339)	-	(339)
	────────	────────	────────
Gross Profit	690	-	690


Administrative expenses	(907)	81	(826)

Loss from Operations	-	-	-
Investment Revenue	19	-	19
Finance costs	-	-	-
	────────	────────	────────
Loss before tax	(198)	81	(117)

Taxation	3	-	3
	────────	────────	────────
Loss for the period	(195)	81	(114)
	═══════	═══════	═══════

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2007

Transition statement from UK GAAP to IFRS - 1 January 2006

Consolidated Balance sheet	UK GAAP at 1 January 2006	Goodwill Amortisation IAS 38	IFRS at 1 January 2006
	£'000	£'000	£'000
Current assets
Trade and other receivables	91	-	91
Cash and cash equivalents	619	-	619
	────────	────────	────────
	710	-	710
	────────	────────	────────
Total Assets	710	-	710
	────────	────────	────────
Current Liabilities

Trade and other payables	1	-	1
Bank overdrafts and loans	22	-	22
Obligations under finance leases	5	-	5
	────────	────────	────────
	28	-	28
	────────	────────	────────
Total Liabilities	28	--	28
	────────	────────	────────
Net Assets	682		682
	═══════	═══════	═══════
Equity

Share Capital	94	-	94
Share Premium Account	725	-	725
Share Options Reserve	-	-	-
Retained losses	(137)	-	(137)
	────────	────────	────────
	682	-	682
	═══════	═══════	═══════

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2007

Transition statement from UK GAAP to IFRS - 31 December 2006

Consolidated Balance sheet	UK GAAP at 31 December 2006	Goodwill Amortisation IAS 38	IFRS at 31 December 2006
	£'000	£'000	£'000
Non current assets
Goodwill	1,687	81	1,768
Property, plant & equipment	37	-	37
	────────	────────	────────
	1,724	81	1,805
Current assets	────────	────────	────────
Trade and other receivables	218	-	218
Cash and cash equivalents	305	-	305
	────────	────────	────────
	523	-	523
	────────	────────	────────
Total Assets	2,247	81	2,328
	────────	────────	────────
Current Liabilities

Trade and other payables	129	-	129
Other Creditors	12	-	12
Bank Loan	13	-	13
Taxation and Social Security	28	-	28
Accruals	71	-	71
	────────	────────	────────
	253	-	253
	────────	────────	────────
Non-current Liabilities
Bank Loans	-	-	-
Obligations under finance leases	-	-	-
	────────	────────	────────
Total Liabilities	253	-	253
	────────	────────	────────
Net Assets	1,994	81	2,075
	═══════	═══════	═══════
Equity
Share Capital	244	-	244
Share Premium Account	732	-	732
Merger Reserve	1,350	-	1,350
Retained losses	(332)	81	(251)
	────────	────────	────────
	1,994	81	2,075
	═══════	═══════	═══════

The financial information set out above does not comrise statutory accounts. The financial information for the year ended 31 December 2007 has been extracted from the published accounts for the year ended 31 December 2007 on which the report of the auditors was unqualified.

This information is provided by RNS

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