TIDMLZM TIDMLONR 
 
RNS Number : 8478S 
LonZim PLC 
27 May 2009 
 

27 May 2009 
LonZim Plc 
 
 
("LonZim" or the "Company") 
 
 
Interim Results 2009 
 
 
LonZim Plc (AIM: LZM), an investment company focussed on Zimbabwe, is pleased to 
announce its interim results for the period from 1 September 2008 to 28 February 
2009. 
 
 
David Lenigas, Executive Chairman of LonZim commented: 
 
 
"We are extremely pleased with the progress made by the Company during the 
period to 28 February 2009. The results showing a loss of GBP746,000 reflect 
that the Company has continued to deliver on its mandate to identify key 
investment opportunities in strategic sectors in Zimbabwe. These will position 
the Company to grow and expand in the event of an economic recovery. We remain 
confident that our chosen sectors demonstrate considerable potential to create 
value for shareholders as well as benefit the people of Zimbabwe as change 
occurs." 
 
 
"Recently we have seen some very positive progress made in Zimbabwe as 
international support for the country grows. We are positive that the investment 
potential in Zimbabwe remains strong and that Zimbabwe has a very bright future 
as it looks to re-establish its presence as one of the major economies on the 
African continent." 
 
 
Enquiries 
+----------------------------------------------+-------------------------+ 
|      LonZim Plc                              | +44 (0)20 7016 5105     | 
+----------------------------------------------+-------------------------+ 
|      David Lenigas, Executive Chairman       | +44 (0)7881 825 378     | 
+----------------------------------------------+-------------------------+ 
|      Geoffrey White, Chief Executive Officer | +44 (0)7717 307 308     | 
+----------------------------------------------+-------------------------+ 
|                                              |                         | 
+----------------------------------------------+-------------------------+ 
|                                              |                         | 
+----------------------------------------------+-------------------------+ 
|      Pelham PR                               |                         | 
+----------------------------------------------+-------------------------+ 
|      Charles Vivian                          | +44 (0) 20 7337 1538    | 
+----------------------------------------------+-------------------------+ 
|                                              | +44 (0) 7977 297903     | 
+----------------------------------------------+-------------------------+ 
|      James MacFarlane                        | +44 (0) 20 7337 1527    | 
+----------------------------------------------+-------------------------+ 
|                                              | +44 (0) 7841 672831     | 
+----------------------------------------------+-------------------------+ 
|                                              |                         | 
+----------------------------------------------+-------------------------+ 
|      WH Ireland Ltd: NOMAD                   |                         | 
+----------------------------------------------+-------------------------+ 
|      James Joyce                             | +44 (0) 20 7220 1666    | 
+----------------------------------------------+-------------------------+ 
 
 
 
 
The interim report and financial statements are being posted to shareholders and 
will be published on the Company's website (www.lonzim.co.uk) today. 
 
 
 
 
Chief Executive Officer's Statement 
 
 
Zimbabwe has seen a difficult six months and both the economic and political 
environment have been challenging. However, significant progress has been made 
since the period end and there is optimism that Zimbabwe has entered a period of 
consolidation and the economic decline of a country, once so successful, is 
coming to an end. 
 
 
  *  The Government of National Unity was formed on 5 February 2009 and the 
  coalition, although fractious, is a positive step forward and has created a 
  platform capable of change and development. 
 
 
 
  *  The economy has now formally become US dollar based. This has brought 
  significant stability to the business environment and sets the stage for normal 
  business practices to be reintroduced and for commerce to be able to move 
  forward. However, a lack of foreign currency exchange still remains a major 
  economic issue. 
 
 
 
  *  The Zimbabwe stock exchange resumed trading on the 25 February 2009. 
 
 
 
  *  US dollarisation has curbed the recent rampant hyperinflation and January 
  inflation was reported as 2.3% with deflation of 3.4% in February. This 
  introduces new challenges for the economy as it enters a period of realignment 
  and adjustment. 
 
 
 
  *  In excess of US$1 billion has now been structured by SADC and other bodies to 
  stimulate recovery. 
 
Results for the period: 
 
 
The loss for the period of GBP746,000 (GBP716,000 for the 7 month period to 31 
May 2008) reflects the ongoing development of the Group's investments and is in 
line with expectations. 
 
 
LonZim continues to focus on commercial opportunities in Zimbabwe and the Beira 
corridor and looks to invest in industries that the Board believes will show 
strong and speedy recovery when Zimbabwe begins economic growth. 
 
 
The historic investments made by LonZim in Zimbabwe continue to trade in the 
difficult economic environment. The focus for each company has been to retain 
quality staff and the capabilities necessary to grow and gain market share as 
and when Zimbabwe recovers. Each is well positioned to do so, and with LonZim 
backing, the portfolio of investments is strategically placed to be able to 
benefit from the recovery. 
 
 
During the period: 
 
 
Aldeamento Turistico de Macuti, SARL 
The design and feasibility study for the 300,000m2 site acquired for development 
in Beira, Mozambique, (known as the 'coast of Zimbabwe') has been completed. 
This key site in Beira will be developed to contain a beach front hotel, beach 
club and sports facilities, retail mall, office complex and conference centre. 
This seaside site will also sell housing on a 1.5km beach front residential area 
adjacent to the hotel. 
 
 
Paynet Limited ("Paynet") 
LonZim completed the acquisition of 100% of Paynet in October 2008, announced in 
March 2008, for US$3.19 million (GBP2.03 million). The purchase included a newly 
built commercial property valued provisionally at US$1.0 million (GBP0.66 
million). Paynet provides an electronic funds transfer (EFT) system for sixteen 
banks in Zimbabwe and over one thousand of the largest Zimbabwean corporate 
clients. 
 
 
Paynet automates company bulk payment transactions to corresponding banks and 
includes the largest private sector outsourced salary bureau utilised by the 
majority of large corporations in Zimbabwe for payments of electronic payrolls. 
 
 
ForgetMeNot Africa Limited ("FMN Africa") 
LonZim has taken up an option to acquire a 51% stake of FMN Africa which 
provides a 'message optimiser' application for mobile phones for the sum of 
US$0.58 million (GBP0.35 million), with a further payment related to the growth 
of the business of US$1.0 million (GBP0.66 million). This system provides a 
unique two-way SMS - SMS instant messaging and email technology platform whereby 
emails and interactive messages can be received and sent on a basic mobile 
phone. The system does not require a G3 capability. 
 
 
Telecom company Econet Lesotho has already instigated a new trial for the 
service and negotiations continue to launch this exciting product across a range 
of telecom users in Zimbabwe and the surrounding countries. 
 
 
Fly540 
LonZim has allocated funding to establish a franchise in Zimbabwe of Lonrho's 
regional aviation company, Fly540, and is working to obtain the necessary flying 
permissions and Air Operators Certificate to start a domestic and regional 
focused airline for both passenger and freight operations. 
 
 
 
 
Post period end transactions 
 
 
Medalspot (Pvt) Limited ("Medalspot") 
 
 
In January 2009 LonZim purchased 100% of Medalspot from the Kingdom Banking 
Group for US$0.95 million (GBP0.64 million). 
 
 
Medalspot owns two, combined, industrial properties in Harare which are 
currently rented to Celsys (LonZim 60% holding). The property is 6,600m2 
providing 2,650m2 of office and factory space. 
 
 
 
Leopard Rock Hotel Company (Pvt) Limited ("Leopard Rock Hotel") 
 
In April 2009, Lonzim, acquired 100% of the iconic Leopard Rock Hotel in Vumba 
in the Eastern Highlands of Zimbabwe for US$8.5 million (GBP5.8 million). This 
was historically one of the great African destination hotels and LonZim believes 
the opportunity to develop the hotel to once again become a 
prominent destination for African tourism is significant. Since its acquisition, 
LonZim has had the hotel's 18 hole golf course classified as a PGA excellence 
course, and has commenced a major refurbishment programme to bring it back up to 
international standards. 
 
 
 
 
Ongoing due diligence is in process on a strong pipeline of further 
acquisitions. 
 
 
LonZim remains the only company on the London Stock Exchange (AIM) that is 
solely focused on investing in the economic recovery of Zimbabwe. The Board 
continues to believe that Zimbabwe will become, once again, one of the leading 
economic drivers in Africa in the medium term and that the commercial 
opportunities to partake and invest in Zimbabwe's eventual recovery are 
significant. 
 
 
Geoffrey White 
Director and Chief Executive Officer 
27 May 2009 
 
 
 
  LonZim Plc 
Consolidated interim income statement 
 
 
 
 
+----------------+------+----+----------+--------------+---------+------------+------------+ 
|                |                  Unaudited                    |  Unaudited |   Audited  | 
|                |                   6 months                    |  Period 25 |  Period 25 | 
|                |               28 February 2009                |    October |    October | 
|                |                                               | 2007 to 31 |    2007 to | 
|                |                                               |   May 2008 |  31 August | 
|                |                                               |            |       2008 | 
+----------------+-----------------------------------------------+------------+------------+ 
|                | Note |    Continuing | Acquisitions |   Total |     Total  |      Total | 
|                |      |    operations |       GBP000 |  GBP000 |     GBP000 |     GBP000 | 
|                |      |        GBP000 |              |         |            |            | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
| Revenue        |      |           190 |          305 |     495 |        290 |        188 | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
| Cost of sales  |      |         (101) |        (149) |   (250) |      (107) |       (66) | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
| Gross profit   |      |            89 |          156 |     245 |        183 |        122 | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
|                |      |               |              |         |            |            | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
| Monetary       |      |             - |            - |       - |          - |        (1) | 
| adjustment     |      |               |              |         |            |            | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
| Administrative |      |       (1,393) |        (274) | (1,667) |    (1,304) |    (2,056) | 
| expenses       |      |               |              |         |            |            | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
| Operating loss |      |       (1,304) |        (118) | (1,422) |    (1,121) |    (1,935) | 
| before         |      |               |              |         |            |            | 
| Financing      |      |               |              |         |            |            | 
| income         |      |               |              |         |            |            | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
|                |      |               |              |         |            |            | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
| Financial      |      |           393 |          283 |     676 |        503 |        974 | 
| income         |      |               |              |         |            |            | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
| Financial      |      |             - |            - |       - |       (81) |      (129) | 
| expenses       |      |               |              |         |            |            | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
| Net financing income  |           393 |          283 |     676 |     422    |        845 | 
+-----------------------+---------------+--------------+---------+------------+------------+ 
|                       |               |              |         |            |            | 
+-----------------------+---------------+--------------+---------+------------+------------+ 
| (Loss)/profit before  |         (911) |          165 |   (746) |      (699) |    (1,090) | 
| tax                   |               |              |         |            |            | 
+-----------------------+---------------+--------------+---------+------------+------------+ 
|                |      |               |              |         |            |            | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
| Income tax     |      |             - |            - |       - |       (17) |      (142) | 
| expense        |      |               |              |         |            |            | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
| (Loss)/profit for the |         (911) |          165 |   (746) |      (716) |    (1,232) | 
| period                |               |              |         |            |            | 
+-----------------------+---------------+--------------+---------+------------+------------+ 
|                |           |          |              |         |            |            | 
+----------------+-----------+----------+--------------+---------+------------+------------+ 
| Attributable   |           |          |              |         |            |            | 
| to:            |           |          |              |         |            |            | 
+----------------+-----------+----------+--------------+---------+------------+------------+ 
| Equity holders |           |    (878) |          198 |   (680) |      (700) |    (1,193) | 
| of the parent  |           |          |              |         |            |            | 
+----------------+-----------+----------+--------------+---------+------------+------------+ 
| Minority       |           |     (33) |         (33) |    (66) |       (16) |       (39) | 
| interest       |           |          |              |         |            |            | 
+----------------+-----------+----------+--------------+---------+------------+------------+ 
| (Loss)/profit for the |         (911) |          165 |   (746) |      (716) |    (1,232) | 
| period                |               |              |         |            |            | 
+-----------------------+---------------+--------------+---------+------------+------------+ 
|                |      |               |              |         |            |            | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
| Basic loss per |    3 |               |              |  (2.0)p | (1.9)p     | (3.4)p     | 
| share          |      |               |              |         |            |            | 
+----------------+------+---------------+--------------+---------+------------+------------+ 
| Diluted loss   |    3 |               |              |         |   (1.9)p   | (3.4)p     | 
| per share      |      |               |              | (2.0)p  |            |            | 
+----------------+------+----+----------+--------------+---------+------------+------------+ 
 
 
 
LonZim Plc 
Consolidated interim balance sheet 
 
 
As at 28 February 2009 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
|                                |      |  Unaudited  |                         Unaudited |                          Audited  | 
|                                |      | 28 February |                            31 May |                    31 August 2008 | 
|                                |      |        2009 |                             2008  |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
|                                |      |      GBP000 |                            GBP000 |                            GBP000 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Assets                         |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Property, plant and            |      |       7,859 |                               373 |                             4,284 | 
| equipment                      |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Goodwill and other             |      |       5,827 |                             3,561 |                             3,450 | 
| intangibles                    |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
|   Non-compete agreement        |      |       5,633 |                             6,554 |                             6,296 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Other investments              |      |           - |                                86 |                                 - | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Total non-current assets       |      |      19,319 |                            10,574 |                            14,030 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
|   Financial assets             |      |           - |                                 - |                               213 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Inventories                    |      |          54 |                                11 |                                21 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Trade and other                |      |       1,567 |                               190 |                             1,277 | 
| receivables                    |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Cash and cash equivalents      |      |      13,220 |                            23,052 |                            20,282 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Other short term               |      |       2,999 |                                 - |                                 - | 
| investments                    |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Total current assets           |      |      17,840 |                            23,253 |                            21,793 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Total assets                   |      |      37,159 |                            33,827 |                            35,823 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
|                                |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Equity                         |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
|  Called up share capital       |      |           4 |                                 4 |                                 4 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Share premium                  |      |      33,619 |                            33,672 |                            33,697 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
|   Revaluation reserve          |      |         148 |                                 - |                               148 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Share option reserve           |      |         165 |                                63 |                               165 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
|   Foreign currency reserve     |      |        (94) |                                 - |                                 - | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
|   Retained earnings            |      |     (1,862) |                             (700) |                           (1,182) | 
|                                |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Total equity attributable      |      |      31,980 |                            33,039 |                                   | 
| to equity holders of the       |      |             |                                   |                            32,832 | 
| parent                         |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Minority interest              |      |         853 |    5                              |                               904 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
|                                |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Total equity                   |      |      32,833 |                            33,044 |                            33,736 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
|                                |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Liabilities                    |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
|               Interest-bearing |      |       1,281 |  138                              |                                 - | 
|               loans and        |      |             |                                   |                                   | 
|               borrowings       |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Deferred tax liabilities       |      |         107 |                                21 |                               107 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Provisions                     |      |         759 |                                 - |                               759 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Total non-current              |      |       2,147 |                               159 |                               866 | 
| liabilities                    |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Bank overdraft                 |      |           3 |   1                               |   2                               | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
|               Interest-bearing |      |           - |                                11 |                                 - | 
|               loans and        |      |             |                                   |                                   | 
|               borrowings       |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Trade and other payables       |      |       2,141 |                               612 |                             1,178 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Current tax liabilities        |      |          35 |                                 - |                                41 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Total current liabilities      |      |       2,179 |                               624 |                             1,221 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Total liabilities              |      |       4,326 |                               783 |                             2,087 | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
| Total equity and               |      |      37,159 |                            33,827 |                            35,823 | 
| liabilities                    |      |             |                                   |                                   | 
+--------------------------------+------+-------------+-----------------------------------+-----------------------------------+ 
 
 
 
 
 
 
 
 
 
 
 
 
LonZim Plc 
Consolidated interim statement of recognised income and expense 
 
 
For the six months ended 28 February 2009 
+------------------------------------+-----+----------------+------------+------------+ 
|                                    |     |     Unaudited  | Unaudited  | Audited    | 
|                                    |     |      6 months  |     period |  period 25 | 
|                                    |     |             28 |         25 | October    | 
|                                    |     | February 2009  |    October | 2007 to    | 
|                                    |     |                |   2007 to  | 31 August  | 
|                                    |     |                |     31 May | 2008       | 
|                                    |     |                |       2008 |            | 
+------------------------------------+-----+----------------+------------+------------+ 
|                                    |     |         GBP000 |     GBP000 |     GBP000 | 
+------------------------------------+-----+----------------+------------+------------+ 
|                                    |     |                |            |            | 
+------------------------------------+-----+----------------+------------+------------+ 
|                                    |     |                |            |            | 
+------------------------------------+-----+----------------+------------+------------+ 
| Foreign exchange translation       |     |           (79) |          - |         26 | 
| differences                        |     |                |            |            | 
+------------------------------------+-----+----------------+------------+------------+ 
|                                    |     |                |            |            | 
+------------------------------------+-----+----------------+------------+------------+ 
| Revaluation of property, plant and |     |              - |          - |        232 | 
| equipment                          |     |                |            |            | 
+------------------------------------+-----+----------------+------------+------------+ 
|                                    |     |                |            |            | 
+------------------------------------+-----+----------------+------------+------------+ 
| Loss for the period                |     |          (746) |      (716) |  (1,232)   | 
+------------------------------------+-----+----------------+------------+------------+ 
|                                    |     |                |            |            | 
+------------------------------------+-----+----------------+------------+------------+ 
| Total recognised income and        |     |          (825) |      (716) |    (974)   | 
| expense for the period             |     |                |            |            | 
+------------------------------------+-----+----------------+------------+------------+ 
|                                    |     |                |            |            | 
+------------------------------------+-----+----------------+------------+------------+ 
| Attributable to:                   |     |                |            |            | 
+------------------------------------+-----+----------------+------------+------------+ 
|   Equity holders of the parent     |     |          (774) |      (700) |    (1,034) | 
+------------------------------------+-----+----------------+------------+------------+ 
|   Minority interest                |     |           (51) |       (16) |       60   | 
+------------------------------------+-----+----------------+------------+------------+ 
| Total recognised income and        |     |          (825) |      (716) |    (974)   | 
| expense for the period             |     |                |            |            | 
+------------------------------------+-----+----------------+------------+------------+ 
|                                    |     |                |            |            | 
+------------------------------------+-----+----------------+------------+------------+ 
|                                    |     |                |            |            | 
+------------------------------------+-----+----------------+------------+------------+ 
 
 
 
 
 
 
 
LonZim Plc 
Consolidated interim statement of cash flows 
 
 
+---------------------------------+---------------+---------------+---------------------------+ 
|                                 |     Unaudited |     Unaudited |            Audited period | 
|                                 |   6 months 28 |     period 25 |                25 October | 
|                                 | February 2009 |  October 2007 |                   2007 to | 
|                                 |               |            to |            31 August 2008 | 
|                                 |               |   31 May 2008 |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
|                                 |        GBP000 |        GBP000 |                    GBP000 | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Cash flows from operating       |         (361) |         (385) |                     (903) | 
| activities                      |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Cash received for inventories   |          (33) |          (11) |                         1 | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Cash receipts from customers    |         (240) |         (190) |                     (601) | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Cash paid to suppliers and      |           163 |           511 |                       351 | 
| employees                       |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Cash expensed from operations   |         (471) | (75)          |                   (1,152) | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Interest paid                   |             - |          (18) |                         - | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Net cash from operating         |         (471) |          (93) |                   (1,152) | 
| activities                      |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
|                                 |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Cash flows from investing       |               |               |                           | 
| activities                      |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Interest received               |           393 |           503 |                       832 | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Acquisition of subsidiaries,    |       (2,377) | (3,436)       |                   (5,811) | 
| net of cash acquired            |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Acquisition of property, plant  |       (1,531) |         (373) |                         - | 
| and equipment                   |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Acquisition of other            |       (2,999) |          (86) |                         - | 
| investments                     |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Net cash from investing         |       (6,514) |       (3,392) |                   (4,979) | 
| activities                      |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
|                                 |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Cash flows from financing       |               |               |                           | 
| activities                      |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Proceeds from the issue of      |             - |        26,386 |                    26,411 | 
| share capital                   |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Repayment of borrowings         |             - | (11)          |                           | 
|                                 |               |               | -                         | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Loan advance                    |             - |           161 |                         - | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Payment of transaction costs    |          (78) |             - |                         - | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Net cash from financing         |          (78) |        26,536 |                    26,411 | 
| activities                      |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
|                                 |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Net (decrease)/increase in cash |       (7,063) |        23,051 |                    20,280 | 
| and cash equivalents            |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Cash and cash equivalents at    |        20,280 |             - |                         - | 
| beginning of period             |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
| Cash and cash equivalents       |        13,217 | 23,051        | 20,280                    | 
+---------------------------------+---------------+---------------+---------------------------+ 
|                                 |               |               |                           | 
+---------------------------------+---------------+---------------+---------------------------+ 
 
 
   Note of Preparation 
 
 
 
 
  1.  These interim financial statements for the period ended 28 February 2009, which 
  are neither audited or reviewed have been prepared on a basis consistent with 
  International Financial Reporting Standards ("IFRS") and do not comprise full 
  accounts within the meaning of S240 of the Companies Act 1985. 
  2.  This unaudited interim report does not comprise the Group's statutory accounts. 
  The financial information in respect of the period ended 31 August 2008 is 
  extracted from the statutory accounts for this period. The auditor's report on 
  these accounts was unqualified. 
  3.  Basic and diluted earnings per share are arrived at by dividing the loss for the 
  period by the average number of shares in issue during the period. 
 
  Directors 
David LenigasChairman 
Geoffrey White Director & Chief Executive Officer 
Jean Ellis Finance Director 
Emma PriestleyExecutive Director 
Paul TurnerNon-Executive Director 
Paul HeberNon-Executive Director 
 
 
Corporate Information 
+--------------------------------------------+--------------------------------------------+ 
| Registrars                                 | Auditors                                   | 
| Capita Registrars (Isle of Man) Limited    | KPMG Audit LLC                             | 
| 3rd Floor Exchange House                   | Heritage Court                             | 
| 54-62 Athol Street                         | 41 Athol Street                            | 
| Douglas                                    | Douglas                                    | 
| Isle of Man                                | Isle of Man                                | 
| IM1 1JD                                    | IM99 1HN                                   | 
| Tel: +44 (0) 870 162 3100                  |                                            | 
+--------------------------------------------+--------------------------------------------+ 
| PR Advisors                                | Registered Office and Agent                | 
| Pelham PR                                  | Dickinson Cruickshank Fiduciaries Limited  | 
| 12 Arthur Street                           | 33-37 Athol Street                         | 
| London                                     | Douglas                                    | 
| EC4R 9AB                                   | Isle of Man                                | 
| Tel: +44 (0)20 7337 1527                   | IM1 1LB                                    | 
| Fax: +44 (0)20 7337 1550                   | Tel: +44(0)1624 647647                     | 
+--------------------------------------------+--------------------------------------------+ 
| Principal Group Bankers                    | Nominated Advisor and Broker               | 
| Barclays Bank                              | WH Ireland Limited                         | 
| Lord Street                                | 24 Martin Lane                             | 
| Liverpool                                  | London                                     | 
| L2 6PB                                     | EC4R 0DR                                   | 
|                                            | Tel: +44 (0)20 7220 1666                   | 
+--------------------------------------------+--------------------------------------------+ 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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