18 December 2008
The Niche Group PLC
("the Company")
Final Results for the year ended 30 June 2008
Chairman's Statement
I am pleased to report on the results of the Company for the year ended 30 June
2008.
The Company made a loss for the year of £195,580 (2007: Loss £17,377). The
operating loss for the year was £158,343 compared to £202,508 for the previous
year. The Company made a further provision of £37,975 against two of its
unlisted investments, Madwaves (UK) Limited and INB Holdings.
As is common knowledge, the financial markets have been in turmoil over the
last year and consequently there have been far fewer IPOs. The lack of IPOs
together with the Board's rejection of the few opportunities presented to it
because they were not considered suitable meant that the Company did not make
any investments during the period. The lack of liquidity in the Company's
investments also meant that the Company did not dispose of any its quoted
investments during the year.
The Company's portfolio comprises 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 30 June 2008, the Company had cash at bank of £185,000, unquoted investments
at book value of £100,000 and its quoted investments were valued at £58,350.
The Board is seeking to increase the capital of the Company to enable it to
invest larger amounts than it has been able to do so from its limited funds.
The Board believes that the Company's strategy of investing in pre-IPO
companies with the potential of achieving gains on flotation will improve
following the first quarter of 2009 although it is anticipated that due to
current market conditions the Company may need to hold its investments for
longer.
C Stainforth
Chairman
18 December 2008
Further enquires:
The Niche Group plc Rakesh Patel Tel: +44 (0) 20 8371 3000
John East & Partners John East Tel: +44 (0) 20 7628 2200
Limited
INCOME STATEMENT
for the year ended 30 JUNE 2008
Note Year ended Year ended
30 June 30 June
2008 2007
£ £
Administrative expenses (158,343) (202,508)
Operating loss 2 (158,343) (202,508)
Impairment of available for sale investments (37,975) (67,972)
Interest receivable and similar income 738 -
Other income 3 - 253,103
Loss on ordinary activities before taxation (195,580) (17,377)
Tax on loss on ordinary activities 4 - -
Loss for the year (195,580) (17,377)
Loss per share (pence)
- Basic & diluted 5 (0.190) (0.017)
The Income Statement has been prepared on the basis that all operations are
continuing operations.
STATEMENT OF changes in equity
FOR THE YEAR ENDED 30 JUNE 2008
Share Share Other Retained Total
Capital Premium reserves earnings
£ £ £ £ £
At 1 July 2006 1,029,515 110,026 323,386 (549,703) 913,224
Loss for the year - - - (17,377) (17,377)
Net gain on available for - 35,329 - 35,329
sale investments (note 8)
Transfer to income statement - (354,834) - (354,834)
on sale of available for sale
investments
Transfer to income statement - 41,200 - 41,200
of fair value reserve
relating to impaired assets
As at 30 June 2007 1,029,515 110,026 45,081 (567,080) 617,542
Loss for the year - - - (195,580) (195,580)
Net losses on available for - - (75,190) - (75,190)
sale investments
As at 30 June 2008 1,029,515 110,026 (30,109) (762,660) 346,772
balance sheet
as at 30 JUNE 2008
Year ended Year ended
30 June 30 June
2008 2007
£ £
Note
ASSETS
Non-current assets
Investments - available for sale 6 158,350 271,515
Current assets
Trade and other receivables 12,389 16,028
Cash and cash equivalents 8 185,516 385,357
197,905 401,385
LIABILITIES
Current liabilities
Trade and other payables (9,483) (55,358)
Net Current Assets 188,422 346,027
NET ASSETS 346,772 617,542
SHAREHOLDERS' EQUITY
Called up share capital 1,029,515 1,029,515
Share premium account 110,026 110,026
Other reserves (30,109) 45,081
Retained earnings (762,660) (567,080)
TOTAL EQUITY 346,772 617,542
CASH FLOW STATEMENT
for the year ended 30 JUNE 2008
Notes Year ended Year ended
30 June 30 June
2008 2007
£ £
Cash flows from operating activities
Cash expended from operations 7 (200,579) (160,664)
Net cash from operating activities (200,579) (160,664)
Cash flows from investing activities
Payment to acquire investment - (74,552)
Receipts from sale of investments - 424,041
Interest receivable 738 -
Net cash from investing activities 738 349,489
(Decrease)/Increase in cash and cash (199,841) 188,825
equivalents
Reconciliation of net cash flow to movement
in net funds
(Decrease)/Increase in cash and cash (199,841) 188,825
equivalents
Change in net funds (199,841) 188,825
Net funds at start of period 385,357 196,532
Net funds at end of period 8 185,516 385,357
notes to the financial statements
for the year ended 30 JUNE 2008
1. ACCOUNTING POLICIES
1.1 Basis of preparation
The Niche Group Plc is a public company incorporated in the United Kingdom
under the Companies Act 1985.
The financial statements have been prepared and approved by the directors in
accordance with International Financial Reporting Standards as adopted by the
European Union (`IFRS') and with those parts of the Companies Act 1985
applicable to companies reporting under IFRS.
The financial statements have been prepared under the historical cost
convention or fair value where appropriate. The significant accounting policies
adopted are described below.
1.2. First time adoption of IFRS
See note 7 for reconciliation of transition from UK GAAP to IFRS.
1.3 Sources of estimation uncertainty
The preparation of the financial statements in conformity with IFRS requires
the use of estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reporting period. Although these
estimates are based on management's best knowledge of the amounts, events or
actions, actual results ultimately may differ from these estimates.
The Company believes that the most significant critical judgement area in the
application of its accounting policies is the carrying value of the financial
assets.
1.4. Financial instruments
The Company classifies financial instruments, or their component parts, on
initial recognition as a financial asset, a financial liability or an equity
instrument in accordance with the substance of the contractual arrangement.
Financial instruments are recognised on the balance sheet at fair value when
the Company becomes a party to the contractual provisions of the instrument.
1.5. Investments
Investments are recognised and derecognised on a trade date where a purchase or
sale of an investment is under a contract whose terms require delivery of the
investment within the timeframe established by the market concerned and are
initially measured at cost, including transaction costs.
For available-for-sale investments, gains and losses arising from changes in
fair value are recognised directly in equity, until the security is disposed of
or is determined to be impaired, at which time the cumulative gain or loss
previously recognised in equity is included in the income statement.
1.6. Financial liabilities
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument is
any contract that evidences a residual interest in the assets of the entity
after deducting all of its financial liabilities.
Where the contractual obligations of financial instruments (including share
capital) are equivalent to a similar debt instrument, those financial
instruments are classed as financial liabilities. Financial liabilities are
presented as interest bearing loans and borrowings in the balance sheet.
Finance costs and gains or losses relating to financial liabilities are
included in the Income Statement. Finance costs are calculated so as to produce
a constant rate of return on the outstanding liability.
Where the contractual terms of share capital do not have any terms meeting the
definition of a financial liability then this is classed as an equity
instrument. Dividends and distributions relating to equity instruments are
debited directly to equity.
1.7 Taxation
Current tax, including UK corporation tax and foreign tax, is provided at
amounts expected to be paid (or recovered) using the tax rates and laws that
have been enacted or substantially enacted by the balance sheet date.
Deferred tax is recognised, using the liability method, in respect of temporary
differences between the carrying amount of the company's assets and liabilities
and their tax base.
Deferred tax liabilities are offset against deferred tax assets within the same
taxable entity. Any remaining deferred tax asset is recognised only when, on
the basis of all available evidence, it can be regarded as probable that there
will be suitable taxable profits, within the same jurisdiction, in the
foreseeable future against which the deductible temporary difference can be
utilised.
Deferred tax is determined using tax rates that are expected to apply in the
periods in which the asset is realised or liability settled, based on tax rates
and laws that have been enacted or substantially enacted by the balance sheet
date.
Current and deferred tax are recognised in the income statement, except when
the tax relates to items charged or credited directly in equity, in which case
the tax is also recognised in equity.
2. OPERATING LOSS
The operating loss is stated after charging
2008 2007
£ £
Auditors remuneration - audit services 5,980 5,000
3. OTHER INCOME
2008 2007
£ £
Loss based on carrying value - (101,731)
Amount transferred from other reserves - 354,834)
- 253,103
4. TAXATION
2008 2007
£ £
Current tax charge - -
Factors affecting the tax charge for the period
Loss on ordinary activities before taxation (195,580) (17,377)
Loss on ordinary activities before taxation (58,674) (5,213)
multiplied by standard rate of corporation tax of
30.0 per cent. (2006 - 30.0 per cent.)
Effects of:
Non deductible expenses 12,507 -
Movement in tax losses 46,148 (13,496)
Difference between taxable gain and accounts profit - 74,248
on asset disposal
Other tax adjustments 19 (55,539)
Current tax charge - -
5. LOSS PER SHARE
The calculation of the basic loss per share is based on the loss on ordinary
activities after taxation of £195,580 (2007: £17,377) and on the weighted
average number of shares of 102,951,500 (2007: 102,951,500) ordinary shares in
issue during the year.
6. INVESTMENTS - AVAILABLE FOR SALE
Listed Unlisted 2008 2007
investment investment
£ £ £ £
Fair value
At 1 July 133,540 137,975 271,515 714,178
Impairment: - (37,975) (37,975) (67,972)
Through income statement
Adjustment to other reserves 41,200
Additions - - - 74,552
Disposals - - - (525,772)
Net gains/(losses) transfer to (75,190) - (75,190) 35,329
equity
At 30 June 58,350 100,000 158,350 271,515
7. REconciliation of operating loss to net cash outflow from
operating activities
2008 2007
£ £
Operating loss (158,343) (202,508)
Decrease in debtors 3,639 9,940
(Decrease)/Increase in creditors within one year (45,875) 31,904
Net cash outflow from operating activities (200,579) (160,664)
8. CASH AND CASH EQUIVALENTS
2008 2007
£ £
Cash at bank and in hand 385,357 185,516
9. Explanation of transition to IFRS
This is the first year that the company has presented its financial statements
under IFRS. The following disclosures are required in the year of transition.
The last audited financial statements under UK GAAP were for the year ended 30
June 2007 and the date of transition to IFRSs was therefore 1 July 2006.
a. Reconciliation of balance sheet at 1 July 2006 from UK GAAP to IFRS
Effect of
UK GAAP transition to IFRS
IFRS
£ £
£
Assets
Non-current assets
Investments - available for sale 390,792 323,386 714,178
Current assets
Trade and other receivables 25,968 - 25,968
Cash and cash equivalents 196,532 - 196,532
Total current assets 222,500 - 222,500
Total assets 613,292 323,386 936,678
Liabilities
Current liabilities
Trade and other payables 23,454 - 23,454
Total liabilities 23,454 - 23,454
Net assets 589,838 323,386 913,224
Equity
Share capital 1,029,515 - 1,029,515
Share premium account 110,026 - 110,026
Other reserve - equity - 323,386 323,386
Retained losses (549,703) - (549,703)
Total equity 589,838 323,386 913,224
b. Reconciliation of balance sheet at 30 June 2007 from UK GAAP to IFRS
Effect of
UK GAAP transition IFRS
to IFRS
£ £
£
Assets
Non-current assets
Investments available for sale 226,434 45,081 271,515
Current assets
Trade and other receivables 16,028 - 16,028
Cash and cash equivalents 385,357 - 385,357
Total current assets 401,385 - 401,385
Total assets 627,819 45,081 672,900
Liabilities
Current liabilities
Trade and other payables 55,358 - 55,358
Total liabilities 55,358 - 55,358
Net assets 572,461 45,081 617,542
Equity
Share capital 1,029,515 - 1,029,515
Share premium account 110,026 - 110,026
Other reserve - equity - 45,081 45,081
Retained losses (567,080) - (567,080)
Total equity 572,461 45,081 617,542
c. Reconciliation of the UK GAAP statement of profit and loss to the IFRS
income statement for the year ended 30 June 2007.
Unaudited
Audited Unaudited
effect of
UK GAAP transition to IFRS
IFRS
£ £
£
Administrative expenses (202,508) - (202,508)
Operating loss (202,508) - (202,508)
Impairment of available for sale (67,972) - (67,972)
investments
Loss on disposal of available for sale 253,103 - 253,103
investments
Loss on ordinary activities before (17,377) - (17,377)
taxation
Tax on loss on ordinary activities - - -
Loss for the year (17,377) - (17,377)
10. Dividends
No dividends were paid or proposed in respect of the year ended 30 June 2008.
11. A copy of the Annual Report and Accounts will be sent to all shareholders
shortly and will be available on the Company's website, www.nichegroupplc.co.uk
and also from the Company's registered office, 14 Hanover Square, London W15
1HP.