TIDMKEN
RNS Number : 6602L
Kenetics Group Limited
11 May 2010
11 May 2010
Kenetics Group Limited
("Kenetics", the "Group" or the "Company")
Preliminary Unaudited Results for the year ended 31 December 2009
Kenetics Group Limited (AIM:KEN), the Radio Frequency Identification ("RFID")
group focussed on security and RFID systems and products, announces its
Preliminary Unaudited Results for the year ended 31 December 2009.
Highlights
· Consolidated revenue increased by 156% to GBP1,42 million (2008:
GBP556,397)
· Operating expenses increased by 49% to GBP1.71 million (2008: GBP1.15
million)
· Pre-tax loss for the year decreased by 65% to GBP204,594 (2008:
GBP590,741)
· The Singapore Land Transport Authority (LTA) Contactless Smart Card
Readers ("CSC Readers") have been successfully commissioned in the Mass Rapid
Transit subway rail system.
· The CSC Readers are already in commercial operation across 16 stations
with mass roll-out to begin in the second half of 2010.
· The CSC Readers are certified by FCC and CE bodies for sale in the US and
European markets respectively
· Development of the LTA On board Bus Equipment and wireless local area
network has been completed. Trials are on-going and production units are
targeted to go on commercial trials from the second half of 2010 and are
expected to be completed by the 3rd quarter of 2010.
Commenting on the results, Ken Wong, Chairman of Kenetics said:
"The Singapore LTA contracts have provided Kenetics with the opportunity to
enter the Automated Fare Collection Systems market. Development work for the
rail and bus systems has been successfully completed and these systems are
undergoing commercial trials. The Contactless Smart Card Readers have been
installed in 16 stations of the new Circle Line and are now in commercial
operation. We are expecting the mass roll-out of these readers for the whole
subway system to begin in the second half of the year. The On Board Bus
Equipment (OBE) is now ready for commercial trials, which are expected to begin
in the second half of the year. Similarly, upon successful completion of these
trials by the 3rd quarter of 2010, commercial roll-out is expected to begin on
the rest of the public bus system in Singapore."
Ken added: "The board feels that with the significant development work completed
in 2009, we are ready to realise the significant opportunity offered by the
roll-out of the LTA contracts. With the expectation that the current global
markets will continue to improve, Kenetics is in a good position to leverage
upon the momentum and growth built in 2009."
For more information, please contact:
+--------------------------------+----------------------------+
| Ken Wong, Chairman and CEO | David Galan |
| Kenetics Group Limited | ZAI Corporate Finance Ltd |
+--------------------------------+----------------------------+
| Tel: +65 6749 0083 | (Nominated Advisor) |
+--------------------------------+----------------------------+
| Website: | Tel: +44 207 060 1760 |
| www.kenetics-group.com | Website: www.zaicf.com |
+--------------------------------+----------------------------+
| | |
+--------------------------------+----------------------------+
| Peter Ward / Ian CallawaySVS | Jeremy CareyTavistock |
| Securities (Ltd) | Communications Ltd |
+--------------------------------+----------------------------+
| (Broker) | Tel: +44 207 920 3150 |
+--------------------------------+----------------------------+
| Tel: +44 207 638 5600 | |
+--------------------------------+----------------------------+
Chairman's Statement
Despite the challenging and volatile market in 2009, the Group has seen its
sales revenue increase by one and a half fold, putting it in the right path to
further exploit and grow its business.
Last year, we secured a significant contract with the Singapore Land Transport
Authority ("LTA"), for the development and production of On Board Bus Equipment.
The Board believes that this contract will be significant for the growth of the
Group.
Coupled with an earlier contract win in 2008 for the supply of Contactless Smart
Card Readers for both the public rail and bus systems, we have made good
progress and are now poised to take advantage of the opportunities in the
Automated Fare Collection Systems market.
The Group has also maintained steady revenue from its industrial RFID product
sales despite challenging market conditions. This has contributed a steady
source of sales revenue for the Group in 2009.
Financial results
Consolidated revenue for the period increased by 156% to GBP1,422,156 (2008:
GBP556,397) reflecting the good progress made in the two LTA contracts.
Operating expenses were GBP1.71 million (2008: GBP1.15 million), an increase of
only 49%, compared to the 156% increase in sales revenue.
The pre tax loss for the year was decreased by 65% to GBP204,594 (2008:
GBP590,741). In the half-year interim results announced in September 2009, a
consolidated pre-tax loss of GBP202,400 was reported, which indicates that the
company was close to break-even for the second half of the year. A foreign
exchange loss of GBP66K (2008: gain of GBP45K) was incurred due mainly to the
weakening of Sterling against the Singapore Dollar. Financing costs rose to
GBP57K (2008: GBP14K) predominantly due to an increase in bank interest rates
and interest rates charged on the convertible loan. The aggregate of the foreign
exchange loss and the increase in financing cost accounted for more than half of
the pre tax loss for the year.
Working Capital
Owing to the growth in its business activities, the Group needed additional
working capital to fund the increase in sales revenue. In November 2009, the
Group successfully raised a total of GBP192,500 before expenses. The money
raised was used to fund the development and supply of equipment mainly for the
two LTA contracts.
In 2009, the Group secured an extension of the S$1 million (GBP458,716)
convertible loan, which will be due on 30 June 2010. We are pleased to mention
that the lender has further agreed to extend the loan for another twelve months
based on the current interest being payable at 6% per annum.
In March 2009 the Group received a S$500,000 (GBP223,354) bridging loan from
United Overseas Bank to provide additional working capital in respect of our
contracts. The loan is repayable over two years and carries a fixed interest
rate of 5% per annum.
The Group will be seeking additional funds in the form of equity financing in
two phases during 2010. The first phase will take place during the early part of
the year to provide continued working capital to fulfil the LTA contracts
whereas the latter phase will focus in raising GBP2.5 million to provide the
company with the necessary financial resources for the subsequent commercial
roll-out contracts for both the rail and bus systems.
Dividend policy
Because of the Board's continuing commitment to invest in growing the business
further and establishing Kenetics at the forefront of RFID technology and
services, the Company does not have distributable reserves at this time.
Consequently the Board is not recommending a dividend.
Product Development
For 2009, Kenetics focussed mainly in developing the CSC Readers and the On
Board Bus Equipment, which will form the backbone of its entry into the
Automated Fare Collection
Systems used widely in public transport such as
the subway and bus systems.
Improvements were made to its existing industrial product range including the
Ultra High Frequency (UHF) USB RFID Reader that are currently being sold in USA,
Europe and Japan.
Sales and Marketing
During the year, Kenetics conserved its resources and cut back on its marketing
efforts in Europe and the US. For 2009, the RFID market conditions in Europe and
US were challenging, resulting in shift in directional focus by the Group to
preliminary marketing efforts of the On Board Bus Equipment system mainly in
South East Asia.
Despite the reduced marketing efforts, we are happy to note that our
distribution partners in Japan, Europe and US continued to service their
respective customers with the longer term view of riding the recovery and
exploiting market opportunities when the global economy improves.
We are aware that global economic recovery will take time, but with the ongoing
efforts of our distribution partners, we are beginning to see more sales
enquiries from these partners, in line with our expectations.
Research and Development
Since Kenetics began investing into the development of advanced Automated Fare
Collection (AFC) technologies in early 2008, it has made significant progress in
its R&D efforts in developing what we believe to be technologically advanced
innovations for the rail and bus systems. To cater for global requirements, the
short-range reader that is capable of reading most of the world's fare cards
including the Oyster card used by London Transport, has been successfully
developed and certified by FCC and CE bodies for sale in US and European markets
respectively.
Singapore Land Transport Authority Contracts
In March 2010, Kenetics reported on the progress of the LTA contracts. Under the
first contract with the LTA, its Contactless Smart Card Reader, installed in the
mass rapid transit ('MRT') stations of the new MRT Circle Line, are now running
as part of the operational phase of trials in 16 stations with the opening of a
new section of the MRT Circle Line on 17 April 2010. Upon successful completion
of these operational trials in the first half of 2010, Kenetics is expecting the
commercial roll-out phase to begin which will include not only the remaining MRT
Circle line stations but also more significantly, the rest of the subway rail
system. Kenetics expects that the roll-out will begin from the 3rd quarter of
2010 and will extend to 2011. We are expecting the total requirement to exceed
20,000 readers for both the rail and bus systems.
Under its second LTA contract, Kenetics reported that it has built the
prototypes of its On-board Bus Equipment and initial testing and trials of these
prototypes has commenced. Pre-production units are currently being built and
installed progressively on more than 150 buses for field trials on various bus
routes.Commercial trials on these buses will be conducted beginning July 2010
and are expected to complete by September this year. The current contract allows
the LTA to exercise an option to purchase additional sets of OBE for commercial
roll-out on the 4,000-bus fleet. Kenetics expect the roll-out phase to begin in
the 3rd quarter of 2010 with about 500 buses and full rollout of 3,500 buses in
2011. To finance the rollout, the Company will require additional capital, which
the Board believes will be approximately GBP2.5million. The Company plans to
raise this working capital from investors before the roll out phase begins.
In November 2009, the Group projected that the revenues from the smart card
readers and the OBE were expected to be GBP4.0 million and GBP5.36 million for
2010 and 2011 respectively. Owing to the testing and trials being extended from
the 4th quarter of 2009 to the 2nd and 3rd quarters of 2010 for both the readers
and the OBE, the projected revenue for 2010 is expected to be lower at GBP3.0
million. With the completion of trials in 2010, installations of the readers and
OBE are expected to speed up with the Group projecting revenue of GBP8.96
million for 2011.
Directors and Employees
The developmental work for the two contracts discussed above, which required
substantial technical manpower resources, has been completed. Technical
specialists, including network engineers and RF hardware engineers were
recruited to complement the Kenetics R&D team. Kenetics are currently in the
production phase as we commence the trials for the two contracts in 2010. During
the commercial roll-out stages in the second half of 2010, manufacturing of the
products will be contracted out, as Kenetics does not have mass production
facilities and equipment. As such, we are expecting to see a reduction in
manpower costs.
We thank our dedicated staff across the Group, whose hard work and enthusiasm
has helped us progress this year and express our appreciation to our
Non-Executive Directors, Mr Lynton Jones and Mr Terry Fuller for their
invaluable guidance.
Outlook
The Board feels that significant progress has been achieved and the Group is
moving ahead in accordance with its strategic plans put in place during 2009.
We believe that the progress made will stand us in good stead to follow through
and develop the significant opportunities in the Automated Fare Collection
System business during the coming year.
Ken Wong
Chairman
Kenetics Group Limited
11 May 2010
KENETICS GROUP LIMITED
(Incorporated in Jersey)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2009
+---------------------------+------+------------+----------+-----------+
| |Note | 2009 | | 2008 |
+---------------------------+------+------------+----------+-----------+
| | | GBP | | GBP |
+---------------------------+------+------------+----------+-----------+
| Continuing operations | | | | |
+---------------------------+------+------------+----------+-----------+
| Revenue | | 1,422,156 | | 556,397 |
+---------------------------+------+------------+----------+-----------+
| Other operating income | | 79,920 | | 1,870 |
+---------------------------+------+------------+----------+-----------+
| Other losses - net | | (20,239) | | - |
+---------------------------+------+------------+----------+-----------+
| Changes in inventories of | | | | |
| finished goods | | | | |
+---------------------------+------+------------+----------+-----------+
| and work-in-progress | | (46,978) | | (3,515) |
+---------------------------+------+------------+----------+-----------+
| Raw materials and | | (429,546) | | (292,738) |
| consumables used | | | | |
+---------------------------+------+------------+----------+-----------+
| Employee benefits | | (723,181) | | (463,182) |
| expenses | | | | |
+---------------------------+------+------------+----------+-----------+
| Depreciation of plant and | | (51,254) | | (90,938) |
| equipments | | | | |
+---------------------------+------+------------+----------+-----------+
| Other operating expenses | | (377,815) | | (283,418) |
+---------------------------+------+------------+----------+-----------+
| Finance costs | | (57,657) | | (15,217) |
+---------------------------+------+------------+----------+-----------+
| Loss before tax | | (204,594) | | (590,741) |
+---------------------------+------+------------+----------+-----------+
| Income tax | 5 | 17,013 | | (315) |
+---------------------------+------+------------+----------+-----------+
| Loss for the year | | (187,581) | | (591,056) |
+---------------------------+------+------------+----------+-----------+
| Other comprehensive | | | | |
| (loss)/income: | | | | |
+---------------------------+------+------------+----------+-----------+
| Currency translation | | (1,086) | | 47,857 |
| differences | | | | |
+---------------------------+------+------------+----------+-----------+
| Other comprehensive | | | | |
| (loss)/income | | | | |
+---------------------------+------+------------+----------+-----------+
| for the year, net of tax | | (1,086) | | 47,857 |
+---------------------------+------+------------+----------+-----------+
| Total comprehensive loss | | | | |
+---------------------------+------+------------+----------+-----------+
| for the year, net of tax | | (188,667) | | (543,199) |
+---------------------------+------+------------+----------+-----------+
| | | | | |
+---------------------------+------+------------+----------+-----------+
| Loss for the year | | | | |
| attributable to: | | | | |
+---------------------------+------+------------+----------+-----------+
| Equity holders of the | | (187,581) | | (580,254) |
| company | | | | |
+---------------------------+------+------------+----------+-----------+
| Minority interests | | - | | (10,802) |
+---------------------------+------+------------+----------+-----------+
| | | (187,581) | | (591,056) |
+---------------------------+------+------------+----------+-----------+
| Total comprehensive loss | | | | |
| for the year attributable | | | | |
| to: | | | | |
+---------------------------+------+------------+----------+-----------+
| Equity holders of the | | (188,667) | | (532,397) |
| company | | | | |
+---------------------------+------+------------+----------+-----------+
| Minority interests | | - | | (10,802) |
+---------------------------+------+------------+----------+-----------+
| | | (188,667) | | (543,199) |
+---------------------------+------+------------+----------+-----------+
| Loss per share (pence) | | | | |
+---------------------------+------+------------+----------+-----------+
| - Basic and diluted | 4 | (0.68) | | (2.24) |
+---------------------------+------+------------+----------+-----------+
KENETICS GROUP LIMITED
(Incorporated in Jersey)
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2009
+--------------------------------+-------------+-+-------------+
| | 2009 | | 2008 |
+--------------------------------+-------------+-+-------------+
| | GBP | | GBP |
+--------------------------------+-------------+-+-------------+
| Non-current assets | | | |
+--------------------------------+-------------+-+-------------+
| Plant and equipments | 207,686 | | 120,749 |
+--------------------------------+-------------+-+-------------+
| Available for sale financial | - | | - |
| asset | | | |
+--------------------------------+-------------+-+-------------+
| Total non-current assets | 207,686 | | 120,749 |
+--------------------------------+-------------+-+-------------+
| | | | |
+--------------------------------+-------------+-+-------------+
| Current assets | | | |
+--------------------------------+-------------+-+-------------+
| Contract work-in-progress | 525,521 | | 23,969 |
+--------------------------------+-------------+-+-------------+
| Inventories | 504,135 | | 308,345 |
+--------------------------------+-------------+-+-------------+
| Trade receivables | 204,838 | | 68,253 |
+--------------------------------+-------------+-+-------------+
| Other receivables | 207,921 | | 71,421 |
+--------------------------------+-------------+-+-------------+
| Cash and cash equivalents | 136,978 | | 168,952 |
+--------------------------------+-------------+-+-------------+
| Total current assets | 1,579,393 | | 640,940 |
+--------------------------------+-------------+-+-------------+
| Total assets | 1,787,079 | | 761,689 |
+--------------------------------+-------------+-+-------------+
| | | | |
+--------------------------------+-------------+-+-------------+
| Equity | | | |
+--------------------------------+-------------+-+-------------+
| Share capital | 333,495 | | 263,495 |
+--------------------------------+-------------+-+-------------+
| Share premium | 402,704 | | 280,204 |
+--------------------------------+-------------+-+-------------+
| Share option reserve | 4,343 | | 3,415 |
+--------------------------------+-------------+-+-------------+
| Equity component of | - | | 16,260 |
| convertible loan | | | |
+--------------------------------+-------------+-+-------------+
| Merger reserve | 369,579 | | 369,579 |
+--------------------------------+-------------+-+-------------+
| Foreign currency translation | 20,257 | | 21,343 |
| reserve | | | |
+--------------------------------+-------------+-+-------------+
| Accumulated losses | (1,373,777) | | (1,186,196) |
+--------------------------------+-------------+-+-------------+
| Total equity | (243,399) | | (231,900) |
+--------------------------------+-------------+-+-------------+
| | | | |
+--------------------------------+-------------+-+-------------+
| Non-current liabilities | | | |
+--------------------------------+-------------+-+-------------+
| Amounts owing to directors | 762,633 | | 272,007 |
+--------------------------------+-------------+-+-------------+
| Term loans - secured | 29,195 | | - |
+--------------------------------+-------------+-+-------------+
| Total non-current liabilities | 791,828 | | 272,007 |
+--------------------------------+-------------+-+-------------+
| | | | |
+--------------------------------+-------------+-+-------------+
| Current liabilities | | | |
+--------------------------------+-------------+-+-------------+
| Excess of progress billings | | | |
| over contract work-in-progress | 7,744 | | - |
+--------------------------------+-------------+-+-------------+
| Trade payables | 265,389 | | 49,989 |
+--------------------------------+-------------+-+-------------+
| Other payables | 164,240 | | 115,205 |
+--------------------------------+-------------+-+-------------+
| Amounts owing to directors | 28,866 | | 20,489 |
+--------------------------------+-------------+-+-------------+
| Obligations under finance | - | | 632 |
| leases | | | |
+--------------------------------+-------------+-+-------------+
| Convertible loan | 462,968 | | 362,938 |
+--------------------------------+-------------+-+-------------+
| Derivative financial | 20,239 | | - |
| instrument | | | |
+--------------------------------+-------------+-+-------------+
| Term loans - secured | 202,386 | | - |
+--------------------------------+-------------+-+-------------+
| Bank overdraft - secured | 86,818 | | 172,329 |
+--------------------------------+-------------+-+-------------+
| Total current liabilities | 1,238,650 | | 721,582 |
+--------------------------------+-------------+-+-------------+
| Total liabilities | 2,030,478 | | 993,589 |
+--------------------------------+-------------+-+-------------+
| Total equity and liabilities | 1,787,079 | | 761,689 |
+--------------------------------+-------------+-+-------------+
KENETICS GROUP LIMITED
(Incorporated in Jersey)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2009
+-------------------------------------------+-----------+----------+-----------+
| | 2009 | | 2008 |
+-------------------------------------------+-----------+----------+-----------+
| | GBP | | GBP |
+-------------------------------------------+-----------+----------+-----------+
| Cash Flows From Operating Activities | | | |
+-------------------------------------------+-----------+----------+-----------+
| Loss before tax | (204,594) | | (590,741) |
+-------------------------------------------+-----------+----------+-----------+
| Adjustments for: | | | |
+-------------------------------------------+-----------+----------+-----------+
| Depreciation of plant and equipments | 51,254 | | 90,938 |
+-------------------------------------------+-----------+----------+-----------+
| Impairment loss | - | | 30,884 |
+-------------------------------------------+-----------+----------+-----------+
| Loss arising from derivative financial | 20,239 | | - |
| instrument | | | |
+-------------------------------------------+-----------+----------+-----------+
| Loss on disposal of plant and equipments | 62 | | - |
+-------------------------------------------+-----------+----------+-----------+
| Provision for inventory obsolescence | - | | 39,774 |
+-------------------------------------------+-----------+----------+-----------+
| Share options | 928 | | 2,485 |
+-------------------------------------------+-----------+----------+-----------+
| Unrealized exchange losses on convertible | 60,872 | | - |
| loan | | | |
+-------------------------------------------+-----------+----------+-----------+
| Interest income | (789) | | (1,358) |
+-------------------------------------------+-----------+----------+-----------+
| Interest expense | 57,657 | | 15,217 |
+-------------------------------------------+-----------+----------+-----------+
| Operating loss before working capital | (14,371) | | (412,801) |
| changes | | | |
+-------------------------------------------+-----------+----------+-----------+
| Increase in contract work-in-progress | (495,433) | | (23,969) |
+-------------------------------------------+-----------+----------+-----------+
| Increase/(decrease) in trade and other | (282,800) | | 94,220 |
| receivables | | | |
+-------------------------------------------+-----------+----------+-----------+
| Increase in inventories | (217,083) | | (19,752) |
+-------------------------------------------+-----------+----------+-----------+
| Increase/(decrease) in trade and other | 271,671 | | (362,997) |
| payables | | | |
+-------------------------------------------+-----------+----------+-----------+
| Cash used in operations | (738,016) | | (725,299) |
+-------------------------------------------+-----------+----------+-----------+
| Interest paid | (13,340) | | (7,766) |
+-------------------------------------------+-----------+----------+-----------+
| Income tax refunded/(paid) | 17,013 | | (315) |
+-------------------------------------------+-----------+----------+-----------+
| Net cash flows used in operating | (734,343) | | (733,380) |
| activities | | | |
+-------------------------------------------+-----------+----------+-----------+
| | | | |
+-------------------------------------------+-----------+----------+-----------+
| Cash Flows from Investing Activities | | | |
+-------------------------------------------+-----------+----------+-----------+
| Purchase of plant and equipments | (146,614) | | (12,851) |
+-------------------------------------------+-----------+----------+-----------+
| Proceeds from disposal of plant and | 46 | | - |
| equipment | | | |
+-------------------------------------------+-----------+----------+-----------+
| Capital contribution from minority | - | | 10,802 |
| interests | | | |
+-------------------------------------------+-----------+----------+-----------+
| Interest received | 789 | | 1,358 |
+-------------------------------------------+-----------+----------+-----------+
| Net cash flows used in investing | (145,779) | | (691) |
| activities | | | |
+-------------------------------------------+-----------+----------+-----------+
| | | | |
+-------------------------------------------+-----------+----------+-----------+
| Cash Flows from Financing Activities | | | |
+-------------------------------------------+-----------+----------+-----------+
| Loans from directors | 513,255 | | 221,346 |
+-------------------------------------------+-----------+----------+-----------+
| Issue of ordinary shares | 192,500 | | - |
+-------------------------------------------+-----------+----------+-----------+
| Proceeds from convertible loan | - | | 371,747 |
+-------------------------------------------+-----------+----------+-----------+
| Proceeds from term loans | 312,697 | | - |
+-------------------------------------------+-----------+----------+-----------+
| Repayment of term loans | (81,117) | | - |
+-------------------------------------------+-----------+----------+-----------+
| Difference of fixed deposit balance due | (1,097) | | (2,250) |
| to accumulation of interest | | | |
+-------------------------------------------+-----------+----------+-----------+
| Repayment of hire purchase creditor | (590) | | (7,654) |
+-------------------------------------------+-----------+----------+-----------+
| Net cash flows generated from financing | 935,648 | | 583,189 |
| activities | | | |
+-------------------------------------------+-----------+----------+-----------+
| | | | |
+-------------------------------------------+-----------+----------+-----------+
| Net increase / (decrease) in cash and | 55,526 | | (150,882) |
| cash equivalents | | | |
+-------------------------------------------+-----------+----------+-----------+
| Effects of exchange rate changes | 5,545 | | 60,077 |
+-------------------------------------------+-----------+----------+-----------+
| Cash and cash equivalents at beginning of | (130,643) | | (39,838) |
| year | | | |
+-------------------------------------------+-----------+----------+-----------+
| Cash and cash equivalents at end of year | (69,572) | | (130,643) |
+-------------------------------------------+-----------+----------+-----------+
KENETICS GROUP LIMITED
(Incorporated in Jersey)
NOTES TO THE FINANCIAL INFORMATION
1. Financial information
The financial information set out in this preliminary results announcement does
not constitute the Group's financial statements for the year ended 31 December
2009.
The financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS and IFRIC preparations) ("IFRS") which are
effective, or issued and early adopted as at the date of the statement.
Whilst the financial information included in this preliminary announcement has
been prepared in accordance with the recognition and measurement criteria of
IFRS, it does not include sufficient information to comply with IFRS.
The auditors have yet to sign their report on the 2009 financial statements. The
financial statements for the year ended 31 December 2009 will be finalised on
the basis of the financial information presented by the Directors in this
preliminary announcement, and will be delivered to the Companies Registry
following the Company's Annual General Meeting. Whilst the auditors have not yet
reported on the financial statements for the year ended 2009, they anticipate
issuing an unqualified report.
The financial information for the year ended 31 December 2008 is derived from
the financial statements for that year. The auditors have reported on the 2008
financial statements; their report was unqualified.
The financial information set out in this announcement was approved by the board
on 7 May 2010.
2. Exchange rates
The financial statements of the Group are presented in Pound Sterling ('GBP'),
which is the Company's functional currency. The functional currencies of
Kenetics Innovations Pte Ltd and Kenetics Innovations (Beijing) Co Ltd are
Singapore Dollars ('S$') and Renminbi ('RMB') respectively. The following
exchange rates have been used in preparing the financial statements as at 31
December 2009:
+----------------------------+----------+---------+
| | S$1 = | RMB1 = |
| | GBP | GBP |
+----------------------------+----------+---------+
| 31 December 2009 | 0.44671 |0.09211 |
| | | |
+----------------------------+----------+---------+
| Average rates | 0.44052 |0.09402 |
| | | |
+----------------------------+----------+---------+
3. Basis of preparation
These preliminary results have been prepared in accordance with the accounting
policies adopted by the Company which are consistent with those adopted in the
annual report and accounts for the year ended 31 December 2008.
4. Loss per share
Basic loss per share has been calculated by dividing the net loss attributable
to equity holders of the Company of GBP187,581 (2008: GBP591,056) by the
weighted average number of ordinary shares outstanding during the financial year
of 27,480,973 (2008: 26,349,466).
The number of ordinary shares used for the calculation of basic loss per share
in 2009 and 2008 where merger accounting is applied, is based on the contributed
capital of Kenetics Innovations Pte Ltd, adjusted to equivalent shares of the
Company whose shares are outstanding after the combination.
5. Income tax
The income tax credit attributable to the loss of GBP17,013 (2008: Charge of
GBP315) is made up of over-provision of income tax expense in the prior year.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GMGMKVGFGGZM
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