RNS Number:0477J
PGI Group PLC
15 September 2006
PGI Group Plc
Interim Report
Chairman's statement
I am pleased to report that the Group profit before tax from continuing
activities for the half year ended 30 June 2006 amounted to #1,554,000, almost
50% higher than in the same period last year.
Profits from the food group increased by 35%, boosted by higher tea prices, that
have increased by an average of 19% compared to June 2005. The Malawi tea
estates made the largest contribution to Group profits. Eastern Highlands, the
Zimbabwean subsidiary, continued to improve, with market exchange rate movements
running ahead of inflation.
Khal Amazi, the group's Zambian rose grower, increased exports by 39% to 47
million stems in the first half, as it continued to improve and integrate the
rose business it acquired early in 2005. We have expanded this business again,
by buying the next door neighbour, Sunrose Ltd, which has 6ha or greenhouses
producing roses.
Jensen Group, in which PGI acquired an 80% interest in 2005, has expanded
considerably with the closing (at US$101 million) on 31 July 2006 of a new
property fund. The fund, which has been established in the Cayman Islands, is
managed by Jensen Group and will invest in real estate opportunities in St
Petersburg as well as in an identified property, Sestra River Developments.
Sestra River owns a 14 hectare plot of land and buildings which it has acquired
from Sestroretsk Instrument Works, the oldest factory in St Petersburg. The plan
is to develop Sestra River into a mixed-use project to help revitalise
Sestroretsk, one of St Petersburg's best known suburbs. Jensen will be paid an
annual management fee of 2%, which will significantly increase its contribution
to the Group in the second half of the year.
Chillington Manufacturing, the Group's wheelbarrow manufacturer, had another
disappointing result for the half year due to continuing weak demand that
affected the major DIY retailers. The business, which has lost money for several
years, was sold in July 2006 for a total consideration of just under #1 million.
About half of this is deferred and will be paid between now and December 2008.
This disposal completes the programme of selling non-core businesses. The Group
is now focused on the food operations in southern Africa and (through Jensen)
its property investment management and development in Russia.
Following the rights issue of ordinary shares in 2005, the Group's main
borrowing is the #7.8 million convertible loan stock. The regular annual date
for conversion of this stock is 31 July; but after consultation with the
Trustees, another conversion date of 31 October 2006 has been added. If the loan
stock is not converted on that date into ordinary shares of 25p each, it will be
repaid at par on 31 December 2006.
Because the food business is so seasonal, it is always difficult to predict how
the Group's results will turn out for the full year. However, tea prices remain
firm, at roughly where they were in the first half. Exchange rates in Zimbabwe
are continuing to run ahead of inflation, rose production in Zambia will benefit
from the recent acquisitions, and the contribution from Jensen will be boosted
by the new fund.
When the interim results for last year were announced, we stated that in view of
the seasonal nature of the food group businesses, the Board would consider
declaring dividends only at the half-year. Subsequently, a dividend of 0.25p was
paid which was the first dividend since 1996.
It would have been the Directors' intention to declare a dividend in respect of
the half year to June 2006. Unfortunately, the Board has recently been advised
that under the current interpretation of the provisions of IAS 19 "Employee
Benefits" the group retirement benefit liabilities of #3.8m at 30 June 2006
should be recognised as a liability of the parent company. In previous financial
statements these liabilities were recognised only on the consolidated Group
balance sheet.
Including these liabilities in the company's own individual balance sheet will
result in a deficit on its profit and loss account reserve. Under the provisions
of the Companies Act 1985, the company is permitted to pay dividends only if it
has sufficient distributable reserves.
The Directors are therefore considering undertaking a process to eliminate the
deficit. This would involve the cancellation of the company's share premium
account, which would result in the amount currently standing to the credit of
that account becoming a distributable reserve. This proposal would require
shareholders' approval and sanction by the Court. If the decision is made to
implement this plan, details will be circulated to shareholders in a few weeks'
time.
Assuming that such a process were successfully implemented, it would then be the
Board's intention to consider the payment of a dividend based on the Group's
current financial performance.
R L Pennant-Rea
Chairman
15 September 2006
PGI Group Plc
Interim condensed consolidated income statement
Six months ended Year ended
30 June 31 December
2006 2005 2005
Notes #'000 #'000 #'000
--------------------------- ----- -------- -------- -----------
Continuing operations
Revenue 3 11,094 8,644 14,193
Cost of sales (6,032) (4,709) (8,809)
--------------------------- ----- -------- -------- -----------
Gross profit 5,062 3,935 5,384
Operating expenses (2,839) (2,170) (4,598)
--------------------------- ----- -------- -------- -----------
Profit from operations 2,223 1,765 786
Finance costs (764) (769) (1,463)
--------------------------- ----- -------- -------- -----------
Profit/(loss) after finance costs 1,459 996 (677)
Monetary working capital hyper-inflation
adjustment 95 51 150
--------------------------- ----- -------- -------- -----------
Profit/(loss) before taxation 1,554 1,047 (527)
Taxation 4 (567) (266) (338)
--------------------------- ----- -------- -------- -----------
Profit/(loss) for period from continuing
operations 3 987 781 (865)
--------------------------- ----- -------- -------- -----------
Discontinued operations
(Loss)/profit after taxation from
discontinued operations. 5 (87) 39 (777)
Net profit on disposal of Indonesian
operations - - 1,283
--------------------------- ----- -------- -------- -----------
Total (loss)/profit for period from
discontinued operations (87) 39 506
--------------------------- ----- -------- -------- -----------
Profit/(loss) for the period 900 820 (359)
--------------------------- ----- -------- -------- -----------
Attributable to:
Equity holders of the parent 715 681 (618)
Minority interest 185 139 259
--------------------------- ----- -------- -------- -----------
900 820 (359)
--------------------------- ----- -------- -------- -----------
Pence Pence Pence
--------------------------- ----- -------- -------- -----------
Earnings/(loss) per ordinary share 6
From continuing and discontinued operations
- basic 0.73 0.98 (0.74)
- diluted 0.72 0.97 (0.74)
From continuing operations
- basic 0.82 0.89 (1.38)
- diluted 0.81 0.88 (1.38)
--------------------------- ----- -------- -------- -----------
Dividend paid per ordinary share - - 0.25
--------------------------- ----- -------- -------- -----------
PGI Group Plc
Interim condensed consolidated balance sheet
30 June 31 December
2006 2005 2005
#'000 #'000 #'000
---------------------- ------- -------- ---------
Non-current assets
Intangible assets 2,102 2,431 2,102
Biological assets 12,455 17,241 13,224
Tangible assets 8,384 8,138 9,375
Investment properties 864 - 931
Investments 152 46 160
---------------------- ------- -------- ---------
23,957 27,856 25,792
---------------------- ------- -------- ---------
Current assets
Inventories 2,077 2,738 2,767
Trade and other receivables 2,174 3,243 1,902
Cash 3,623 2,548 4,373
Assets of disposal group classified as held
for sale 1,794 - -
---------------------- ------- -------- ---------
9,668 8,529 9,042
---------------------- ------- -------- ---------
Current liabilities
Debt finance (9,253) (1,591) (9,808)
Trade and other payables (2,760) (2,911) (2,964)
Current tax liabilities (634) (796) (194)
Liabilities directly associated with the
assets classified as held for sale (899) - -
---------------------- ------- -------- ---------
(13,546) (5,298) (12,966)
---------------------- ------- -------- ---------
Net current (liabilities)/assets (3,878) 3,231 (3,924)
---------------------- ------- -------- ---------
Total assets less current liabilities 20,079 31,087 21,868
Non-current liabilities
Debt finance (994) (8,992) (1,574)
Other payables (87) (348) (81)
Provision for deferred tax liabilities (1,117) (863) (1,276)
Retirement benefit liabilities (3,811) (4,839) (4,317)
---------------------- ------- -------- ---------
Net assets 14,070 16,045 14,620
---------------------- ------- -------- ---------
Equity
Share capital 24,503 24,257 24,429
Share premium account 10,698 10,749 10,705
Capital redemption reserve 250 250 250
Revaluation reserves 607 683 639
Retained earnings (23,278) (21,068) (22,550)
---------------------- ------- -------- ---------
Attributable to equity holders of parent
company 12,780 14,871 13,473
Minority interests 1,290 1,174 1,147
---------------------- ------- -------- ---------
Total equity 14,070 16,045 14,620
---------------------- ------- -------- ---------
PGI Group Plc
Interim condensed consolidated cash flow statement
Six months ended Year ended
30 June 31 December
2006 2005 2005
#'000 #'000
--------------------------- ------- -------- --------
Cash flow from operating activities
Profit/(loss) from operations - Continuing
operations 2,223 1,765 786
- Discontinued operations (87) 281 209
--------------------------- ------- -------- --------
2,136 2,046 995
Adjustment for:
Depreciation 495 670 1,051
Disposal of tangible fixed assets (11) (16) (48)
Additional retirement benefit costs (100) (99) (195)
Share options - 25 36
Oversea tax paid (92) (359) (654)
--------------------------- ------- -------- --------
Operating profit before changes in working
capital 2,428 2,267 1,185
Decrease/(increase) in inventories 491 76 (151)
Increase in trade and other receivables (1,527) (1,250) (113)
Increase/(decrease) in trade and other payables 669 (714) (475)
Exchange difference on working capital (789) (346) (474)
--------------------------- ------- -------- --------
Cash generated from operations 1,272 33 (28)
--------------------------- ------- -------- --------
Cash flows from investing activities
Capital expenditure (906) (2,478) (4,353)
Disposal of tangible assets 11 798 833
Acquisition of subsidiary - (2,426) (2,440)
Disposal of Indonesian subsidiaries - - 3,741
--------------------------- ------- -------- --------
Net cash from investing activities (895) (4,106) (2,219)
--------------------------- ------- -------- --------
Cash flows from financing activities
Issue of shares (net of expenses) 92 10,882 10,863
Payment of loans and finance lease liabilities (332) (3,696) (3,038)
Finance costs (680) (763) (1,362)
Dividend paid - - (244)
Advances from minorities (net) less dividends
paid 62 - -
Distribution from property fund (net) (12) - -
--------------------------- ------- -------- --------
Net cash from financing activities (870) 6,423 6,219
--------------------------- ------- -------- --------
Net (decrease)/increase in cash and cash
equivalents (493) 2,350 3,972
Cash and cash equivalents at beginning of period 3,328 (622) (622)
Effects of exchange rate changes on cash and
cash equivalents 211 73 (22)
--------------------------- ------- -------- --------
Cash and cash equivalents at end of period 3,046 1,801 3,328
--------------------------- ------- -------- --------
Analysis of net debt
Cash 3,623 2,548 4,373
Overdrafts (577) (747) (1,045)
--------------------------- ------- -------- --------
Cash and cash equivalents 3,046 1,801 3,328
Debt due within one year (8,676) (817) (8,744)
Debt due after one year (994) (8,942) (1,534)
Finance leases - (77) (59)
--------------------------- ------- -------- --------
Total (6,624) (8,035) (7,009)
--------------------------- ------- -------- --------
PGI Group Plc
Interim condensed consolidated statement of changes in equity
Attributable to equity holders of the Company
----------------- ------------------------------------------------------
Six months ended Share Share premium Revaluation Retained Total Minority Total
30 June 2006 & capital reserve earnings interests equity
redemption
capital reserves
#'000 #'000 #'000 #'000 #'000 #'000 #'000
------------------------- ------ ------- -------- ------- ------ ------ ------
Balance at 1 January 2006 24,429 10,955 639 (22,550) 13,473 1,147 14,620
Changes in equity
Monetary working capital
hyperinflation adjustment - - - (95) (95) - (95)
Exchange differences on
translation of net
oversea assets - - 475 (1,860) (1,385) (83) (1,468)
Unrealised deficit on
revaluation of properties - - (507) - (507) (507)
Actuarial gain (net) of
defined benefits pension
plan - - - 490 490 - 490
Transfer - (25) - 25 - - -
------------------------- ------ ------- -------- ------- ------ ------ ------
Net income/(expense)
recognised directly
in equity - (25) (32) (1,440) (1,497) (83) (1,580)
Profit for the six months - - - 715 715 185 900
------------------------- ------ ------- -------- ------- ------ ------ ------
Total recognised income
and (expense) - (25) (32) (725) (782) 102 (680)
------------------------- ------ ------- -------- ------- ------ ------ ------
Issue of new ordinary shares
on exercise of options 74 18 - - 92 - 92
Dividends paid to minority
interests - - - - - (7) (7)
Distribution from
property fund (net) - - - (3) (3) (9) (12)
Advances from non-equity
minority
Interests (net) - - - - - 57 57
------------------------- ------ ------- -------- ------- ------ ------ ------
Balance at 30 June 2006 24,503 10,948 607 (23,278) 12,780 1,290 14,070
------------------------- ------ ------- -------- ------- ------ ------ ------
PGI Group Plc
Interim condensed consolidated statement of changes in equity continued
Attributable to equity holders of the Company
----------------- ------------------------------------------------------
Six months ended Share Share premium Revaluation Retained Total Minority Total
30 June 2006 & capital reserve earnings interests equity
redemption
capital reserves
#'000 #'000 #'000 #'000 #'000 #'000 #'000
------------------------- ------ ------- -------- ------- ------ ------ ------
Balance at 1 January 2005 12,950 11,448 695 (22,526) 2,567 873 3,440
Changes in equity
Monetary working capital
hyperinflation adjustment - - - (51) (51) - (51)
Exchange differences on
translation of net
oversea assets - - (1,368) 956 (412) 31 (381)
Unrealised surplus on
revaluation of properties - - 1,356 - 1,356 65 1,421
Actuarial loss (net)
of defined benefits
pension plan - - - (177) (177) - (177)
Recognition of share options - - - 25 25 - 25
Transfer - (24) - 24 - - -
------------------------- ------ ------- -------- ------- ------ ------ ------
Net income/(expense)
recognised directly in
equity - (24) (12) 777 741 96 837
Profit for the six months - - - 681 681 139 820
------------------------- ------ ------- -------- ------- ------ ------ ------
Total recognised income and - (24) (12) 1,458 1,422 235 1,657
(expense) -
------------------------- ------ ------- -------- ------- ------ ------ ------
Issue of new ordinary shares
(net of expenses):
Acquisition of Jensen Group 2,300 - - - 2,300 - 2,300
Rights issue 9,007 (425) - - 8,582 - 8,582
Minority interest in net
assets acquired - - - - - 66 66
------------------------- ------ ------- -------- ------- ------ ------ ------
Balance at 30 June 2005 24,257 10,999 683 (21,068) 14,871 1,174 16,045
------------------------- ------ ------- -------- ------- ------ ------ ------
PGI Group Plc
Interim condensed consolidated statement of changes in equity continued
Attributable to equity holders of the Company
----------------- ------------------------------------------------------
Six months ended Share Share premium Revaluation Retained Total Minority Total
30 June 2006 & capital reserve earnings interests equity
redemption
capital reserves
#'000 #'000 #'000 #'000 #'000 #'000 #'000
------------------------- ------ ------- -------- ------- ------ ------ ------
Balance at 1 January 2005 12,950 11,448 695 (22,526) 2,567 873 3,440
Changes in equity for 2005
Monetary working capital
hyperinflation adjustment - - - (150) (150) - (150)
Exchange differences on
translation of net
oversea assets - - (1,713) 1,328 (385) 129 (256)
Unrealised surplus on
revaluation of properties - - 1,703 - 1,703 65 1,768
Reversal of capital reserve
on disposals (net) - - - (254) (254) - (254)
Actuarial loss (net) of
defined benefits pension plan - - - (272) (272) - (272)
Changes in potential tax on
property
Revaluations - - (46) 101 55 - 55
Recognition of share options - - - 36 36 - 36
Transfer - (49) - 49 - - -
------------------------- ------ ------- -------- ------- ------ ------ ------
Net expense/(income)recognised
directly in equity - (49) (56) 838 733 194 927
Loss for the year - - - (618) (618) 259 (359)
------------------------- ------ ------- -------- ------- ------ ------ ------
Total recognised income and
(expense) - (49) (56) 220 115 453 568
------------------------- ------ ------- -------- ------- ------ ------ ------
Issue of new ordinary shares
(net of expenses):
Acquisition of Jensen Group 2,300 (4) - - 2,296 - 2,296
Rights issue 9,007 (436) - - 8,571 - 8,571
Conversion of loan stock 172 (4) - - 168 - 168
Dividend paid - - - (244) (244) - (244)
Minority interest in net
assets acquired - - - - - 576 576
Disposal of minority
interests - - - - - (776) (776)
Advances from non-equity
minority interests - - - - - 21 21
------------------------- ------ ------- -------- ------- ------ ------ ------
Balance at 31 December 2005 24,429 10,955 639 (22,550) 13,473 1,147 14,620
------------------------- ------ ------- -------- ------- ------ ------ ------
PGI Group Plc
Notes to the consolidated interim financial statements
1. Corporate information
PGI Group Plc is a public limited company incorporated and domiciled in the
United Kingdom, whose shares are publicly traded. The principal activities of
the Company and its subsidiaries ("the Group") are described in Note 3.
2. Basis of preparation and accounting policies
The interim condensed consolidated financial statements for the six months ended
30 June 2006 and 2005 are unaudited. They have been prepared in accordance with
International Accounting Standard (IAS) 34, Interim Financial Reporting, and on
accounting bases and policies consistent with those used in the Annual Report
and Accounts for the year ended 31 December 2005. The comparative figures for
the year ended 31 December 2005 are an extract from the full accounts for the
year, on which the auditors have made a report under Section 235 of the Company
Act 1985. These accounts have been filed with the Registrar of Companies. The
audit report was qualified in respect of the accounting for the results of its
operation in Zimbabwe which is not fully in accordance with the provisions of
IAS 29 'Financial Reporting in Hyperinflationary Economies'. It did not contain
a statement under Section 237(2) of the Companies Act.
3. Segmental reporting
The Group's primary reporting segments are the following business sectors:
Food group - Tea, , export roses, macadamia nuts and vegetables.
Investment property management - Properties in St. Petersburg, Russia.
The manufacturing segment has been classified as a discontinued operation for
the six months ended 30 June 2006 and comparative periods (see Note 5).
SEGMENT SEGMENT
REVENUE RESULTS
Six months Year ended Six months Year ended
ended 30 June 31 December ended 30 June 31 December
2006 2005 2005 2006 2005 2005
#'000 #'000 #'000 #'000 #'000 #'000
Continuing
operations
Food group 10,885 8,597 13,950 3,073 2,271 2,048
Investment property
management 209 47 243 (82) 29 42
------ ------ --------
11,094 8,644 14,193
------ ------ --------
Central costs net
of sundry income (768) (535) (1,304)
------- ------ --------
2,223 1,765 786
Finance costs
(including monetary
working capital
hyperinflation
adjustment) (669) (718) (1,313)
------- ------ --------
Profit/(loss)
before taxation 1,554 1,047 (527)
Taxation (567) (266) (338)
------- ------ --------
Profit/(loss)
from continuing
operations 987 781 (865)
------- ------ --------
PGI Group Plc
Notes to the consolidated interim financial statements
continued
4. Taxation
Six months Year ended
ended 30 June 31 December
2006 2005 2005
Continuing operations #'000 #'000 #'000
---------------------------- --------- --------- ---------
Current taxation:
UK Corporation tax (after double taxation
relief) - - -
--------- --------- ---------
Foreign taxation:
Current taxation on income for the
period 534 356 131
Adjustment in respect of prior periods 11 (96) (57)
--------- --------- ---------
545 260 74
--------- --------- ---------
Deferred taxation:
Origination and reversal of timing
differences 29 47 301
Adjustment in respect of prior periods (7) (41) (37)
--------- --------- ---------
22 6 264
--------- --------- ---------
Taxation on profit from continuing
operations 567 266 338
--------- --------- ---------
5. Discontinued operations
Profit/(loss) after taxation from discontinued operations
Six months Six months ended 30 June 2005 Year ended 31 December 2005
ended 30 June
2006
Manufacturing Food group Manufacturing Total Food group Manufacturing Total
Indonesia Indonesia
#'000 #'000 #'000 #'000 #'000 #'000 #'000
---------------- -------- ------- -------- ------ ------- -------- ------
Revenue 2,847 1,528 3,142 4,670 2,152 5,072 7,224
Cost of sales (2,335) (1,098) (2,596) (3,694) (1,413) (4,325) (5,738)
-------- ------- -------- ------ ------- -------- ------
Operating profit 512 430 546 976 739 747 1,486
Operating expenses (569) (68) (627) (695) (169) (1,108) (1,277)
-------- ------- -------- ------ ------- -------- ------
(Loss)/profit from
operations (57) 362 (81) 281 570 (361) 209
Impairment provision
to tangible assets - - - - - (670) (670)
-------- ------- -------- ------ ------- -------- ------
(Loss)/profit before
finance costs (57) 362 (81) 281 570 (1,031) (461)
Finance costs (30) (1) (109) (110) (1) (132) (133)
-------- ------- -------- ------ ------- -------- ------
(Loss)/profit before
taxation (87) 361 (190) 171 569 (1,163) (594)
Taxation - (132) - (132) (183) - (183)
-------- ------- -------- ------ ------- -------- ------
(Loss)/profit
after taxation (87) 229 (190) 39 386 (1,163) (777)
-------- ------- -------- ------ ------- -------- ------
During the six months ended 30 June 2006, a decision was made by the Board to
dispose of Chillington Manufacturing, a division of P&G Industries Plc.
Chillington Manufacturing manufactures wheelbarrows in the United Kingdom and is
a separate business segment of the Group's operations. At 30 June 2006 its
assets and liabilities have been classified in the balance sheet as a disposal
group held for sale. On 31 July 2006, the Group has entered into an agreement to
sell Chillington Manufacturing for a total consideration of #936,000 of which
#500,000 is on deferred terms.
PGI Group Plc
Notes to the consolidated interim financial statements
continued
5. Discontinued operations continued
The results for Chillington Manufacturing have been classified as discontinued
operations for the six months ended 30 June 2006. In accordance with
International Financial Reporting Standard 5, Non-current assets held for sale
and discontinued operations, adjustments have been made to the originally
reported comparative income statements to classify Chillington Manufacturing as
a discontinued operation for the six months ended 30 June 2005 and the year
ended 31 December 2005.
The net cash flows attributable to Chillington Manufacturing are as follows:
Six months ended Year ended
30 June 31 December
2006 2005 2005
#'000 #'000 #'000
Operating cash flows (214) (388) (180)
Investing cash flows (48) (116) (166)
Financing cash flows (40) (133) (173)
-------- ------- ----------
Net cash outflow (302) (637) (519)
-------- ------- ----------
PGI Group Plc
Notes to the consolidated interim financial statements
continued
6. Earnings/(loss) per ordinary share
a. Basic
Basic earnings/(loss) per ordinary share is calculated by dividing the result
attributable to equity holders of the company by the weighted average number of
ordinary shares in issue during the period.
Six months ended Year ended
30 June 31 December
2006 2005 2005
Thousands Thousands Thousands
Weighted average number of ordinary
shares in issue 97,886 69,454 83,644
-------- ------- ----------
Six months ended Year ended
30 June 31 December
2006 2005 2005
#'000 #'000 #'000
Profit/(loss) for the period from continuing
and discontinued operations attributable to
the equity holders of the Company 715 681 (618)
-------- ------- ----------
Profit/(loss) for the period from continuing
operations:
Per consolidated income statement 987 781 (865)
Minority interest applicable to
continuing operations (185) (163) (289)
-------- ------- ----------
Profit/(loss) from continuing operations
attributable to the
equity holders of the Company 802 618 (1,154)
-------- ------- ----------
Six months ended Year ended
30 June 31 December
2006 2005 2005
Pence Pence Pence
Basic earnings/(loss) per ordinary share
- continuing and discontinued operations 0.73 0.98 (0.74)
- continuing operations 0.82 0.89 (1.38)
b. Diluted
Diluted earnings/(loss) per ordinary share is calculated on a weighted average
of shares which assume the exercise of certain options.
Six months ended Year ended
30 June 31 December
2006 2005 2005
Thousands Thousands Thousands
-------- ------- ----------
Weighted average number of ordinary shares
in issue assuming the exercise of certain
options 98,661 69,925 84,341
-------- ------- ----------
There is no dilution of the loss per share for the year ended 31 December 2005.
The conversion of loan stock would reduce the loss per share and therefore
cannot be reported.
PGI Group Plc
Notes to the consolidated interim financial statements
Continued
6. Earnings/(loss) per ordinary share
c. Discontinued operations
Six months ended Year ended
30 June 31 December
2006 2005 2005
Pence Pence Pence
Basic and diluted (loss)/earnings per ordinary
share
from discontinued operations (0.09) 0.09 0.64
-------- ------- ----------
7. Related party transactions
a. Two Russian companies owned by a director, Mr S. W. Wayne, provide
services to subsidiary companies of Jensen Partners LLC, a subsidiary of PGI
Group Plc, and the property funds they manage. These Russian companies are not
designed to make profits but to reallocate expenses between the various
entities. The amounts charged to a subsidiary of Jensen Partners LLC and the
amounts outstanding were as follows:
Six months ended Year ended
30 June 31 December
2006 2005 2005
#'000 #'000 #'000
Charges for services from related parties 57 - 42
Amounts owed to related parties 66 - 22
-------- ------- ----------
b. A loan of #3 million was received in 2004 from a director, Mr. S.
N. Roditi, which bore interest at 2.5% above LIBOR. The loan was repaid in June
2005 from the proceeds of a rights issue. Interest paid on the loan was as
follows:
Six months ended Year ended
30 June 31 December
2006 2005 2005
#'000 #'000 #'000
Interest paid on loan from related party - 115 115
-------- ------- ----------
8. Contingent liabilities
There has been no change to the claim made by PT Shamrock Manufacturing Corpora
in the amount of approximately #16.5 million as reported in Note 28 to the
audited financial statements for the year ended 31 December 2005. The directors
are now legally contesting this claim.
9. Events after the balance sheet date
In July 2006, the group acquired 100% of the voting shares of Sunrose Limited, a
company incorporated in Zambia, for a total consideration of US$1.74 million
(#0.93 million). The principal activity of the company is the growing and
exporting of roses.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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