Final Results

Caldwell Investments PLC 22 June 2007 PRELIMINARY RESULTS Year Ended 28th February 2007 CALDWELL INVESTMENTS P.L.C. Highlights: • Turnover for the year ended 28th February 2007 £6,247,478 (2006: £6,418,670) • Pre tax loss before exceptional items £158,135 (2006: £525,668) • Reassessment of Group activities and recognition for strategic change • NinaSun garden furniture discontinued • Downsize of underwear and baby buggy parasol activities in the UK • Arrangements made to dispose of premises in Skelmersdale • Moving into production of Crude Jatropha Oil in Brazil for the Biodiesel industry • Fernando Lunardini appointed Group Chief Executive Chairman, Stanley Wootliff, commenting on the results, said: 'The year ended 28th February 2007 has been one of fundamental reassessment and recognition of the need for strategic change. We have downsized our underwear business and baby buggy parasol operations due to margin pressures and reduced sales volumes. As a result of lower than expected sales of our garden furniture we have also now withdrawn from that activity completely. These decisions have been extremely difficult and as a consequence have incurred considerable costs however doing nothing would have led to terminal decline. Following on from the above decisions, your Board has decided to reposition the Company into the rapidly expanding Biodiesel market and to establish plantations in Brazil to produce crude Biodiesel oil from Jatropha Trees. To lead the Group in this development Fernando Lunardini was appointed to the Caldwell Board as Group Chief Executive on 22nd June 2007. The Board believes that this new strategy will deliver value for shareholders in the coming years'. For further information, please contact: Stanley Wootliff, Executive Chairman Graham Haselden, Finance Director. Tel: 0113 235 0632 CHAIRMAN'S STATEMENT BUSINESS PERFORMANCE In the last financial year, the Group has undertaken a strategic review of all its existing activities and as a consequence initiated a project to investigate the feasibility of moving into the production of Biodiesel feed-stock in Brazil for sale and distribution in Europe and USA (the 'Biodiesel Project'). The Group loss on ordinary activities, before exceptional items, and before taxation, from its existing businesses for the year ended 28th February 2007 was £158,135 (2006: £525,668). Exceptional items amounting to £799,930 were related to the write down of intellectual property, fixed assets and stocks associated with the Group's existing activities in particular the NinaSun garden furniture. After providing for tax on overseas profits, a retained loss of £1,118,242 has been transferred to reserves. OPERATIONAL REVIEW The year ended 28th February 2007 has been one of fundamental reassessment of the Group's activities and recognition of the need for strategic change. As announced on 2nd February 2007, the Board has reviewed all current activities and as a result of ongoing margin pressure and reduced sales volumes in its underwear business and lower than expected uptake of its 'NinaSun' garden furniture range, the Group has been left with no alternative but to discontinue its activities in relation to garden furniture and seek out an alternative activity in order to reposition the Group away from its traditional, mature underwear businesses. This decision has been extremely difficult and incurred considerable costs, which are reflected in the accounts under review. However the Board considers that, the inevitable consequence of doing nothing would have been terminal decline. NinaSun Garden Furniture On 2nd February 2007, we announced that we were reviewing our NinaSun business and considering a number of options. Although the product was initially well received, the business remained too small to be economic and your Board took the view that the marketing spend necessary to achieve a commercially viable level of sales would not produce a satisfactory return on the Group's financial resources. A number of possible options were considered, including the option of franchising, none of which proved to be feasible. It was therefore decided to discontinue the activity. Underwear Our German business continues to trade profitably whilst continuing to be subject to ongoing margin and turnover pressures. In the UK, the volume of third party importing handled by the Group is expected to continue to decline and the Company intends to downsize its overheads to levels more appropriate to the reduced volumes of business. Baby Buggy Parasols Our baby buggy parasol business, 'NinaClip', continues to receive a reduced volume of orders. This is due primarily to a change in the design of baby buggies, many of which now incorporate integral hoods, removing the requirement for a separate parasol. We continue to supply this market although an ongoing reduction in demand is expected and the operation is being scaled down accordingly. PROPERTY In recognition of the scaling down of the existing UK businesses, the Company's premises at Skelmersdale have been put onto the market for sale. We have received serious interest and hope to have exchanged contracts for the sale of the building within the next few months. BIODIESEL PROJECT In December 2006, as a result of the Group's strategic review your Board took a decision to investigate the feasibility of Caldwell producing Biodiesel feedstock Crude Jatropha Oil ('CJO') from Jatropha trees grown in Brazil. The Group's feasibility study into the Biodiesel market confirmed the market opportunity for the production of CJO for the esterification of Biodiesel. The next stage entailed more detailed project evaluation including identifying a project leader, a local management team, and investigating land availability and local infrastructure and resources. In January 2007, we carried out a small scale trial in Brazil planting and germinating seeds for 1,000 Jatropha trees. The success of this trial has confirmed that the conditions available are sufficiently fertile for the Company to be able to grow Jatropha trees directly from planted seeds rather than nursery grown saplings. This could afford us significant cost savings. The Board believes that Biodiesel is a rapidly expanding market whose growth will continue to be driven by geo-political concerns and legislation aimed at protecting the environment and is a market where demand is running ahead of supply. MANAGEMENT The focus of the Group's activities on the Biodiesel Project required the introduction of appropriate management to the Board. Accordingly, in order to lead the Group in its development as a leading producer of CJO, Fernando Lunardini (38) was appointed to the Caldwell board as Group Chief Executive on 22nd June 2007. Fernando Lunardini is a Brazilian National based in Sao Paulo. Until May 2006 he was an Associate Partner at McKinsey & Co., for the previous eight years, and prior to that he was with Anderson Consulting and Cap Gemini. He is a non-executive director of Panazon Ambiental Ltd, a water treatment equipment company in Brazil. He has a BSc in engineering and an MBA from INSEAD and extensive experience of eco-related business development projects in Brazil. Fernando is well qualified to lead the Group in its new endeavours in the Biodiesel industry. CURRENT TRADING All the Group's existing businesses are trading satisfactorily within the context of the current, scaled-down business plan. The UK underwear and baby buggy businesses are being relocated to smaller premises and should be installed by the end of July. Current trading in Germany is steady. OUTLOOK The repositioning of the Group's traditional businesses is proceeding according to plan. The Biodiesel Project in Brazil has been initiated and funded to date from Caldwell's existing resources. The next stage of the Biodiesel Project will require more substantial funding and proposals will be put to shareholders for a placing to provide the necessary equity capital as soon as practicable. CHANGE OF NAME The Board believes that it will be appropriate to change the Company name to VIRIDAS to reflect the Company's new activities in the green energy industry. A special resolution to change the name will be put to shareholders at the Annual General Meeting on July 27th 2007. SUMMARY In the year ended 28 February 2007, we have taken some difficult decisions. Practical steps have been taken to start to reposition the Company into an expanding area of the global economy and your Board believes that the new strategy will deliver value for shareholders in the coming years. On a personal note, I would like to thank all my colleagues at Caldwell for their continued efforts and enthusiasm in what has been a difficult year. Without their help and support these achievements would not have been possible. CALDWELL INVESTMENTS P.L.C. CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 28 FEBRUARY 2007 Year ended 28 February Year ended 2007 28 February Before 2007 Year ended Year ended exceptional Exceptional 28 February 28 February items Items 2007 2006 £ £ £ £ Turnover - continuing operations 6,247,478 - 6,247,478 6,418,670 Cost of sales (5,161,297) (105,911) (5,267,208) (5,355,099) -------------- -------------- -------------- -------------- Gross profit 1,086,181 (105,911) 980,270 1,063,571 Distribution costs (139,969) - (139,969) (155,353) Administration expenses (1,104,347) (694,019) (1,798,366) (1,437,105) Other operating income - - - 3,219 -------------- -------------- -------------- -------------- Operating loss - continuing operations (158,135) (799,930) (958,065) (525,668) Net interest payable (71,342) (64,126) -------------- -------------- Loss on ordinary activities before taxation (1,029,407) (589,794) Tax on profit on ordinary activities (88,835) (57,412) -------------- -------------- Loss for the financial year (1,118,242) (647,206) ======== ======== Loss per share Basic (5.62p) (3.40p) -------------- -------------- Diluted (5.62p) (3.40p) ======== ======== CALDWELL INVESTMENTS P.L.C. BALANCE SHEETS AT 28 FEBRUARY 2007 GROUP COMPANY 2007 2006 2007 2006 £ £ £ £ Fixed assets Intangible assets 166,556 506,756 - 241,179 Tangible assets 559,114 799,096 441,481 364,452 Investments - - 837,906 2,382,906 -------------- -------------- -------------- -------------- 725,670 1,305,852 1,279,387 2,988,537 Current assets Stocks 1,008,416 1,554,300 - - Debtors falling due within 1 year 477,088 630,912 793,132 619,916 Cash at bank and in hand 689,118 917,673 444,857 607,779 -------------- ------------ ------------ ------------ 2,174,622 3,102,885 1,237,989 1,227,695 Creditors: amounts falling due within one year (1,350,779) (1,802,164) (100,338) (114,148) -------------- -------------- -------------- -------------- Net current assets 823,843 1,300,721 1,137,651 1,113,547 -------------- -------------- -------------- -------------- Total assets less current liabilities 1,549,513 2,606,573 2,417,038 4,102,084 Creditors: amounts falling due after more than one year (296,933) (314,043) (296,933) (314,043) Net assets 1,252,580 2,292,530 2,120,105 3,788,041 -------------- -------------- -------------- -------------- Capital and reserves Called up share capital 1,991,196 1,991,196 1,991,196 1,991,196 Share premium account 1,906,229 1,906,229 1,906,229 1,906,229 Capital redemption reserve 27,000 27,000 27,000 27,000 Revaluation reserve 118,000 27,000 118,000 27,000 Profit and loss account (2,789,845) (1,658,895) (1,922,320) (163,384) -------------- -------------- -------------- -------------- Shareholders' funds 1,252,580 2,292,530 2,120,105 3,788,041 -------------- -------------- -------------- -------------- CALDWELL INVESTMENTS P.L.C. CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2007 Year ended Year ended 28 February 28 February 2007 2006 £ £ Net cash inflow/(outflow) from operating activities 285,116 (605,141) Returns on investments and servicing of finance Interest received - 1,920 Interest paid (69,834) (63,566) Finance lease interest paid (1,508) (2,480) -------------- -------------- Net cash outflow from returns on investments and servicing of finance (71,342) (64,126) -------------- -------------- Taxation Tax paid (47,853) (50,542) -------------- -------------- Capital expenditure and financial investment Purchase of intangible fixed assets (15,994) (57,735) Purchase of tangible fixed assets (5,855) (72,657) Receipt from sale of fixed assets - 2,151 -------------- -------------- Net cash outflow from capital expenditure (21,849) (128,241) -------------- -------------- Net cash inflow/(outflow) before financing 144,072 (848,050) Financing Issue of shares - 574,864 Share issuing expenses - (61,488) Repayment of bank loans (25,113) (24,437) Capital element of finance lease payments (9,852) (16,656) -------------- -------------- Net cash (outflow)/inflow from financing (34,965) 472,283 -------------- -------------- Increase/(decrease) in cash in the year 109,107 (375,767) -------------- -------------- BASIS OF PREPARATION This preliminary statement of annual results which covers the twelve months to 28 February 2007 has been agreed by the Group's auditors and is consistent with the full financial statements. The abridged preliminary Group accounts for the year ended 28 February 2007 are not statutory accounts and have been extracted from the full statutory accounts for the year ended 28 February 2007. The full statutory accounts for the year on which the auditor's report is unqualified will be delivered to the Registrar of Companies in due course. The comparative figures for the twelve months to 28 February 2006 are abridged from the accounts for that year and do not constitute full accounts within the meaning of Section 240 of the Companies Act 1985 (as amended). Statutory accounts for that year on which the auditors gave an unqualified opinion have been delivered to the Registrar of Companies. LOSS PER SHARE The calculation of basic loss per share is based on losses attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. The calculation of diluted earnings per share is based on the basic loss per share adjusted to allow for the assumed conversion of all dilutive options. ANNUAL REPORT The annual report will be mailed to shareholders on or around 5th July 2007. Copies will be available after that date from: The Secretary, Caldwell Investments P.L.C., 647 Roundhay Road, Leeds, West Yorkshire LS8 4BA. ANNUAL GENERAL MEETING The Annual General Meeting will be held at Centurion House, 37 Jewry Street, London. EC3N 2ER on Friday 27th July 2007 at 10.00 a.m. This information is provided by RNS The company news service from the London Stock Exchange

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