Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

Novera Energy Ltd (NVE)

  Print      Mail a friend

Friday 31 March, 2006

Novera Energy Ltd

Annual Report & Accounts-Pt 2

Novera Energy Ltd
30 March 2006

Part 2

                                                           Novera Energy Limited
                                               Notes to the financial statements
                                                                31 December 2005
1. Summary of significant accounting policies

The principal accounting policies adopted in the preparation of the financial report are set out below.

These policies have been consistently applied to all the years presented, unless otherwise stated. The financial report
includes separate financial statements for Novera Energy Limited as an individual entity and the consolidated entity
consisting of Novera Energy Limited and its subsidiaries.

(a) Basis of preparation
This general purpose financial report has been prepared in accordance with Australian equivalents to International
Financial Reporting Standards (AIFRS), other authorative pronouncements of the Australian Accounting Standards Board,
Urgent Issues Group Interpretations and the Corporations Act 2001.


Compliance with IFRS
Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards.
Compliance with AIFRSs ensures that the consolidated financial statements and notes of Novera Energy Limited comply with
International Financial Reporting Standards (IFRSs).


Application of AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards

These financial statements are the first Novera Energy Limited financial statements to be prepared in accordance with
IFRS. AASB 1 First-time adoption of Australian Equivalents to International Financial Reporting Standards has been
applied in preparing these financial statements.



Financial statements of Novera Energy Limited until 31 December 2004 had been prepared in accordance with previous
Australian Generally Accepted Accounting Principles ('AGAAP'). AGAAP differs in certain aspects from AIFRS. In preparing
the financial report for the year ended 31 December 2005, management has amended certain accounting valuations and
consolidation methods applied in the previous Australian Generally Accepted Accounting financial statements to comply
with AIFRS. With the exception of financial instruments, the comparative figures were restated at that time to reflect
these adjustments. The Group has taken the exemption available under AASB 1 to only apply AASB 132 Financial
Instruments: Disclosure and Presentations and AASB 139 Financial Instruments: Recognition and Measurement from 1 January
2005.



Early adoption of standard

The Group has elected to apply AASB 119 Employee Benefits (issued in December 2004) to the reporting periods beginning 1
January 2004. This includes applying AASB 119 to the comparatives in accordance with AASB 108 Accounting Policies,
Changes in Accounting Estimates and Errors.



Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of
available-for-sale financial assets, financial assets and liabilities (including derivative instruments) at fair value
through profit and loss, certain classes of property and plant and equipment.



Critical accounting estimates

The preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the Group accounting
policies. Any areas involving a higher degree of judgement or complexity, or areas where assumption and estimates are
significant to the financial statements are disclosed by way of Note 3.



(b) Principles of consolidation



(i) Subsidiaries

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Novera Energy
Limited ('parent entity') as at 31 December 2005 and the results of all subsidiaries for the year then ended. Novera
Energy Limited and its subsidiaries together are referred to in this report as the Group or the consolidated entity.



Subsidiaries are all those entities (including special purpose entities) over which the Group has the power to govern
the financial and operating policies, generally accompanying a shareholding of more than one-half of the voting rights.
The existence and effect of potential voting rights that are currently exercisable or convertible are considered when
assessing whether the Group controls another entity.



Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated
from the date control ceases.



The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group (refer to note 1
(i)).


Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the
policies adopted by the Group.



(ii) Associates

Associates are all entities over which the Group has significant influence but not control, generally accompanying a
shareholding between 20% and 50% of the voting rights. Investments in associates are accounted for in the parent entity
financial statements using the cost method and in the consolidated financial statements using the equity method of
accounting, after initially being recognised at cost.



The Group's share of its associates' post-acquisition profits or losses is recognised in the income statement, and its
share of post acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are
adjusted against the carrying amount of the investment. Dividends receivable from associates are recognised in the
parent entity's income statement, while in the consolidated financial statements they reduce the carrying amount of the
investment.



When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other
unsecured receivable, the Group does not recognise further losses, unless it has incurred obligations to make payments
on behalf of the associate.



Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group's
interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure
consistency with the policies adopted by the Group.


(iii) Joint venture entities

The interest in joint venture entities is accounted for in the consolidated financial statements using the equity method
and is carried at cost by the parent entity. Under the equity method, the share of the profit or loss of the entity is
recognised in the income statement and the share of movements in reserves is recognised in the reserves in the balance
sheet.



Profits or losses on transactions establishing the joint venture entity and transactions with the joint venture entity
are eliminated to the extent of the Group's ownership interest until such time as they are realised by the joint venture
entity on consumption or sale, unless they relate to an unrealised loss that provides evidence of the impairment of an
asset transferred.



(c) Segment reporting



A business segment is a group of assets and operations engaged in providing products or services that are subject to
risks and returns that are different to those of other business segments. A geographical segment is engaged in providing
products or services within a particular economic environment and is subject to risks and returns that are different
from those of segments operating in other economic environments.



(d) Foreign currency translation



(i) Functional and presentation currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the
primary economic environment in which the entity operates ('the functional currency'). The consolidated financial
statements are presented in pounds sterling which is Novera Energy Limited's functional and presentation currency.



The Directors of the Company have adopted Pounds Sterling as its presentation currency as they believe it is the most
relevant currency which reflects the risk and returns associated with the operations of the consolidated group as the
significant operations of the group are either UK based or controlled from the UK. Comparative information has been
restated to reflect the change in presentation currency from the Australian Dollar ('AUD') to GBP.



(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from
the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in the income statement, except when deferred in equity as qualifying cash flow hedges and qualifying net
investment hedges.



Translation differences on non-monetary items, such as investments in associates and joint venture entities accounted
for using the equity method, are reported as part of the fair value gain or loss.



(iii) Group companies

The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary
economy) that have a functional currency different from the presentation currency are translated into the presentation
currency as follows:



  • assets and liabilities for each balance sheet presented are translated at the closing rate at the date of the
    balance sheet:
  • income and expenses for each income statement are translated at average exchange rates (unless this is not a
    reasonable approximation of the cumulative effect of the rates prevailing on the transactions dates, in which case
    income and expenses are translated at the dates of the transactions); and
  • all resulting exchange differences are recognised as a separate component of equity.



On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of
borrowings and other currency instruments designed as hedges of such investments, are taken to shareholders' equity.
When a foreign operation is sold or borrowings repaid, a proportionate share of such exchange differences are recognised
in the income statement as part of the gain or loss on sale.



Intangible assets and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and
liabilities of the foreign entity and translated at the closing rate.



(e) Revenue recognition



Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net
of returns, trade allowances and duties and taxes paid. Revenue is recognised for the major business activities as
follows:



(i) Landfill Gas

Revenue is recognised where there is a signed unconditional contract of sale and when energy distribution has been
completed to the customer.



(ii) Biomass

Revenue is recognised when there is a signed contract for the provision of operations and services for sludge drying
plants owned by third party utilities once the service has been delivered.



(iii) Industrial

Revenue is recognised where there is a signed unconditional contract of sale and when energy distribution has been
completed to the customer.



(iv) Wind

Revenue is recognised when there is a signed unconditional contract of sale for the development project and also when
energy distribution has been completed to the customer.



(v) Hydro

Revenue is recognised when there is a signed unconditional contract of sale for the development project and also when
energy distribution has been completed to the customer.



(vi)Advisory fees

Revenue is recognised on the successful completion of development/acquisition of projects and in line with conditions
precedent, against the relevant amount expended on development.



(vii) Deferred Revenue

Revenue is not recognised on a sale of an asset unless all conditions precedent are met. Revenue is recognised as the
deferral is reversed over time.


f) Income tax



The income tax expense or revenue for the period is the tax payable on the current period's taxable income based on the
national income tax for each jurisdiction adjusted by changes in deferred tax assets and liabilities and their carrying
amounts in the financial statements, and to the unused tax losses.



Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the
assets are recovered or liabilities are settled, based on those taxes which are enacted or substantively enacted for
each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary
differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences
arising from the initial recognition of an asset or liability. No deferred tax asset or liability is recognised in
relation to these temporary differences if they arose in a transaction, other than a business combination, that at the
time of the transaction did not affect either accounting profit or taxable profit or loss.



Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.



Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax
base of investments in controlled entities where the parent entity is able to control the timing of the reversal of the
temporary differences and it is probable that the differences will not be reversed in the foreseeable future.



Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in
equity.



Tax consolidation legislation



Novera Energy Limited and its wholly owned Australian controlled entities have implemented the tax consolidation
legislation as of 30 June 2004.



As a consequence, as the head entity in the tax consolidated group, recognises current and deferred tax amounts relating
to transactions, events and balances of the wholly-owned Australian controlled entities in this group as if those
transactions, events and balances were its own, in addition to the current and deferred tax amounts arising in relation
to its transactions, events and balances. Amounts receivable or payable under an accounting tax sharing agreement with
the tax consolidated entities are recognised separately as tax-related amounts receivable or payable. Expenses and
revenues arising under the tax sharing agreement are recognised as a component of income tax expense (revenue).



The deferred tax balances recognised by the parent entity in relation to wholly-owned entities joining the tax
consolidated group are measured based on their carrying amounts at the level of the tax consolidated group before the
implementation of the tax consolidation regime, with one exception. The deferred tax balances relating to assets that
had their tax values reset on joining the tax consolidated group, have been measured based on the carrying amount of
those assets at the tax-consolidated group level and their reset tax values. The remeasurement adjustments to these
deferred tax balances are also recognised in the consolidated financial statements as income tax expense or revenue, or
as direct debits to the asset revaluation reserve to the extent the adjustment relates to the revaluation of assets.
There was no impact on the income tax expense for 2005.



(g) Leases



Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are
classified as finance leases. Finance leases are capitalised at the lease's inception at the lower of the fair value of
the leased property and the present value of the minimum lease payments. The corresponding rental obligations, net of
finance charges, are included in other long term payables. Each lease payment is allocated between the liability and
finance charges. The interest element of the finance cost is charged to the income statement over the lease period so as
to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property,
plant and equipment acquired under finance lease are depreciated over the shorter of the asset's useful life and the
lease term.



Leases in which a significant proportion of the risks and rewards of ownership are retained by the lessor are classified
as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged
to the income statement on a straight line basis over the period of the lease.





(h) Acquisitions of assets



The purchase method of accounting is used to account for all acquisitions of assets (including business combinations)
regardless of whether equity instruments or other assets are acquired. Cost is measured as the fair value of the assets
given, shares issued or liabilities incurred at the date of exchange plus costs directly attributable to the
acquisition. Where equity instruments are issued in an acquisition, the value of the instruments is their published
market price at the date of exchange unless, in rare circumstances, it can be demonstrated that the published price at
the date of exchange is an unreliable indicator of the value and the other evidence and valuation methods provide a more
reliable measure of fair value. Transaction costs arising on the issue of equity instruments are recognised directly in
equity.



Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured
initially at their fair value at the acquisition date, irrespective of the extent of any minority interest. The excess
of the cost of acquisition over the fair value of the Group's share of the identifiable net assets acquired is recorded
as Intangible assets (refer note 1 (m)). If the cost of acquisition is less than the fair value of the net assets of the
subsidiary acquired, the difference is recognised directly in the income statement, but only after a reassessment of the
identification and measurement of the net assets acquired.



Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to
their present value as at the date of the exchange. The discount rate used is the entity's incremental borrowing rate,
being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and
conditions.



(i) Impairment of assets



Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment.
Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value
less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels
for which there are separately identifiable cash flows (cash generating units).





(j) Cash and cash equivalents



Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term,
highly liquid investments with original maturities of three months or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of change in value, and bank overdrafts. Bank overdrafts are
shown with borrowings in current liabilities on the balance sheet.



(k) Trade receivables



Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for
doubtful debts. All trade debtors are receivable within 30 days.



Collectibility of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are
written off. A provision for doubtful receivables is established when there is objective evidence that the Group will
not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is
the difference between the asset's carrying value amount and the present value of estimated future cash flows,
discounted at the effective interest rate. The amount of the provision is recognised in the income statement.



(l) Intangible assets



Intangible assets represents the excess of the cost of an acquisition over the fair value of the Group's share of the
net identifiable assets of the acquired subsidiary/associate at the date of acquisition. Intangible assets on
acquisitions of subsidiaries are included in intangible assets. Intangible assets on acquisitions of associates are
included in investments in associates. Intangible assets acquired in business combinations are not amortised. Instead,
Intangible assets are tested for impairment annually, or more frequently, if events or changes in circumstances indicate
that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal
of an entity, include the carrying amount of Intangible assets relating to the entity sold.



Intangible assets are allocated to cash-generating units for the purpose of impairment testing. Each of those
cash-generating units represents the Group's investment in each country of operation by each primary reporting segment.





(m) Development projects

Costs incurred on development projects, including allocations of finance and overhead charges are deferred to future
periods to the extent that there is reasonable certainty that such costs will be recovered. Periodic assessments are
made of the recoverability of these costs. Costs that do not fall into this category are expensed as incurred. Ultimate
recoupment of these costs is dependent upon the successful development and commercial exploration, or sale of
technologies or project costs for royalty or development revenue. Development project expenditure is subsequently
included in the cost of the relevant projects and is amortised from the commencement of the commercial production on a
straight-line basis over the period of the expected benefit.



(n) Investments and other financial assets



From 1 January 2004 to 31 December 2004

The Group has taken the exemption available under AASB 1 to apply AASB 132 and AASB 139 only from 1 January 2005. The
Group has applied previous AGAAP to the comparative information on financial instruments within the scope of AASB 132
and AASB 139. For further information on previous AGAAP refer to the annual report for the year ended 31 December 2004.



Adjustments on transition date: 1 January 2005

The nature of the main adjustments to make this information comply with ASB 132 and AASB 139 are that, with the
exception of loans and receivables which are measured at amortised cost (refer below), fair value is the measured basis.
Fair value is inclusive of transaction costs. Changes in fair value are either taken to the income statement or an
equity reserve (refer below). At the dates of transition (1 January 2005) changes to carrying amounts are taken to
retained earnings or reserves.



From 1 January 2005

The Group classifies its investments in the following categories: financial assets at fair value through profit or loss,
loans and receivables, held-to-maturity investments, and available-for-sale financial assets. The classification depends
on the purpose for which the investments were acquired. Management determines the classification of its investments at
initial recognition and re-evaluates this designation at each reporting date.



(i) Financial assets at fair value through profit or loss

This category has two sub-categories: financial assets held for trading, and those designated at fair value through
profit or loss on initial recognition. A financial asset is classified in this category if acquired principally for the
purpose of selling in the short time or if so designated by management. The policy of management is to designate a
financial asset if there exists the possibility it will be sold in the short term and the asset is subject to frequent
changes in fair value. Derivatives are also categorised as held for trading unless they are designated as hedges. Assets
in this category are classified as current assets if they are either held for trading or are expected to be realised
within 12 months of the balance sheet date.



(ii) Loans and Receivables

Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an
active market. They arise when the Group provides money, goods or services directly to a debtor with no intention of
selling the receivable. They are included in current assets, except for those with maturities greater than 12 months
after the balance date which are classified as non-current assets. Loans and receivables are included in receivables in
the balance sheet.



Financial assets at fair value through profit and loss are subsequently carried at fair value. Loans and receivables are
carried at amortised cost using the effective interest method. Realised and unrealised gains and losses arising from
changes in the fair value of the 'financial assets at fair value through profit or loss' category are included in the
income statement in the period in which they arise.



(o) Fair value estimation



The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes.



The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their
fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future
contractual cash flows at the current market interest rate that is available to the Group for similar financial
instruments.



(p) Property, plant & equipment



Depreciation is calculated using the straight line method to allocate their cost or revalued amounts, net of their
residual values, over their estimated useful lives, as follows:


Computer hardware                                        3 years
Plant & Equipment                                        8-30 years
Furniture & Fittings                                     3-13 years
Office Equipment                                         5 years
Leasehold Improvements                                   3-5 years
Computer Software                                        3 years
Anemometry Equipment                                     5 years



The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.



An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is
greater than its estimated recoverable amount (note 1 (j)).



Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in the
income statement. When revalued assets are sold, it is the Group policy to transfer the amounts included in reserves in
respect of those assets to retained earnings.



(q) Trade and other payables



These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year
which are unpaid. These amounts are unsecured and are usually paid within 30 days of recognition.



(r) Employee benefits



(i) Wages and salaries, annual leave and sick leave

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected
to be settled within 12 months of the reporting date are recognised in other payables in respect of employees' services
up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.
Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or
payable. Under UK accounting standards, annual leave is not required to be recognised for unlisted entities. Under AASB
119 Employee Benefits the liability has now been recognised and in accordance with AASB 108 Accounting Policies, Changes
in Accounting Estimates and Errors the liability for the period prior to 31 December 2004 has been adjusted against
retained earnings.



(ii) Share-based payments

Share-based compensation benefits are provided to employees via the Novera Energy Australian Incentive Option Plan.



Share options granted before 7 November 2002 and/or vested before 1 January 2005

No expense is recognised in respect of these options. The shares are recognised when the options are exercised and the
proceeds received allocated to share capital.



Share options granted after 7 November 2002 and vested after 1 January 2005

The fair value of options granted under the Novera Energy Australia Incentive Option Plan is recognised as an employee
benefit expense with a corresponding increase in equity. The fair value is measured at grant date and recognised over
the period during which the employee become unconditionally entitled to the option.



The fair value at grant date is independently determined using a Black-Scholes option pricing model that takes into
account the exercise price, the term of the option, the vesting and performance criteria, the impact of dilution, the
non-tradeable nature of the option, the share price at grant date and expected price volatility of the underlying share,
the expected dividend yield and the risk-free interest rate for the term of the option.



The fair value of the options granted excludes the impact of any non-market vesting conditions (for example,
profitability and sales growth targets). Non market vesting conditions are included in the assumptions about the number
of options that are expected to become exercisable. At each balance sheet date, the entity revises its estimate of the
number of options that are expected to become exercisable. The employee benefit expense recognised each period takes
into account the most recent estimate.



Under the exercise of options, the balance of the share-based payments reserve relating to those options is transferred
to share capital.



The market value of shares issued to employees for no cash consideration under the employee share scheme is recognised
as an employee benefits expense with a corresponding increase in equity when the employees become entitled to the
shares.



(iii) Profit-sharing and bonus plans

The Group recognises a liability and an expense for bonuses and profit-sharing based on a formula that takes into
consideration the profit attributable to the company's shareholders after certain adjustments. The Group recognises a
provision where contractually obliged or where there is a past practice that has created a constructive obligation.



(s) Contributed equity



Ordinary shares are classified as equity.



Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of
tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options, or for the
acquisition of a business, are included in the cost of the acquisition as part of the purchase consideration.



(t) Dividends



Provision is made for the amount of any dividend declared on or before the end of the half-year but not distributed at
balance date.



(u) Earnings per share



(i) Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the half-year, adjusted for bonus elements in ordinary shares issued during the half-year.



(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of shares assumed to have been issued for no consideration in relation to
dilutive potential ordinary shares.



(v) Financial instrument transaction costs



The Group has taken the exemption available under AASB 1 to apply AASB 132 and AASB 139 from 1 January 2005. The Group
has applied previous Australian GAAP (AGAAP) in the comparative information on financial instruments within the scope of
AASB 132 and AASB 139. Under previous AGAAP, transaction costs were excluded from the amounts disclosed in the financial
statements. Under AIFRS, such costs are included in the carrying amounts. At the date of the transition to AASB 132 and
AASB 139 the adjustment to carrying amounts for the Group were immaterial.



(w) Rounding of amounts



The company is of a kind referred to in Class order 98/0100, issued by the Australian Securities and Investments
Commission, relating to the 'rounding off' of amounts in the financial report. Amounts in the financial report have been
rounded off in accordance with that Class Order to the nearest thousand pounds, or in certain cases, the nearest dollar.




2. Financial risk



The Group's activities expose it to a variety of financial risks such as market, economic, credit and interest risk.

The Group's overall risk management program focuses on the predictability of revenue and control over operating costs to
maximise the financial performance of the Group.



Our policies require us to prepare a risk management plan that is reviewed by the Board. The policy also requires the
review of the NMRE risk management plan.




(a) Market Risk


(i)      Price Risk
Contracts are fully or partially Retail Price Index inflated.

(b) Economic Risk


The renewable energy businesses are supported through the UK Government renewable energy targets legislation. Novera
actively promotes initiatives with government in relation to developing sustainable energy projects such as the East
London Sustainable Energy Facility. Successful involvement in such initiatives aids in presenting to Government bodies
the concept that renewable energy can be a viable alternative to other methods of generating energy and aids in
maintaining their future support.


(c) Credit Risk


The Group has no significant concentrations of credit risk.


(d) Cash flow and interest risk


Novera has a strong balance sheet with £3.9 million in cash in the bank and no debt. The debt facility held by the Joint
Venture is on a non-recourse project finance basis with no recourse to Novera.



The Joint Venture manages its cash flow interest-rate risk by using fixed to floating interest rates swaps. Such
interest rate swaps have the economic benefit of converting borrowings from fixed rates to floating rates. Under the
interest-rate swaps, NMRE agrees with other parties to exchange, at specified intervals (mainly quarterly), the
difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed
notional principal amounts.



3. Critical accounting estimates and judgements


Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.


The Group is not exposed to any material, as defined by AASB 1031,adjustments for accounting estimates, judgements or
assumptions except through its NMRE joint venture. NMRE tests annually whether intangible assets have suffered any
impairment, in accordance with the accounting policy stated in note 1 (m). The recoverable amounts of cash generating
units have been determined on a value in use calculation.


4. Segment information


(a) Description of segments



Business segments

The consolidated entity is organised into the following divisions.



Biomass

The Company's Biomass Services business manages the thermal processing of sewage sludge for several UK water utilities,
on a contract basis.

Revenue is recognised when there is a signed contract for the provision of operations and services for sludge drying
plants owned by third party utilities, but only when the service has been delivered.



Development

The Company's development division manages the acquisition of wind farms up to a construction ready stage, and
development of sustainable energy plants.

Revenue is recognised on the successful completion of development/acquisitions of projects.





Corporate

The Company's corporate division operations include the management of investments.

Revenue is recognised on dividends when received and on deferred revenue over the estimated useful life of the assets.



NMRE Joint venture

Landfill Gas

NMRE's landfill gas division operates and maintains reciprocating engine electricity generators, fuelled by the methane
gas extracted from landfill sites across the UK.

Revenue is recognised where there is a signed unconditional contract of sale and when energy distribution has been
completed to the customer.



Hydro

NMRE's Hydro Electric division operates and maintains hydroelectric generators at sites across the UK.

Revenue is recognised when energy distribution has been completed to the customer.



Wind and Industrial

NMRE's wind farms generate electricity through the use of turbine farms in Germany and the industrial division generates
electricity through generators fuelled by coal seam methane extracted from a coalmine site in the UK.

Revenue is recognised when energy is distributed to the customer.



Geographical segments

The consolidated entity operated in two main areas:



Australia

The country of incorporation of the parent entity. The area of operation has been mainly in the management of
investments and statutory compliance.



United Kingdom

Comprises all the major operational divisions of the consolidated entity.











4. Segment information
(b) Primary reporting format-business segments

                                       Landfill Gas,    Biomass      Development     Corporate     Consolidated
                                              Hydro    Services
                                       Industrial &
                                               Wind

2005                                          £'000       £'000            £'000        £'000             £'000
Sales to external customers                       -       1,790              671          126             2,587
Other revenue/income                              -           -                -        1,221             1,221
Total segment revenue/income                      -       1,790              671        1,347             3,808
Segment result                                              190          (1,700)          435           (1,075)
Share of net loss of joint venture          (1,373)           -                -            -           (1,373)
entity
Total segment result before income          (1,373)         190          (1,700)          435           (2,448)
tax expense
                                            
Income tax expense                                -           -                -            -                 -
Net (loss)/profit                           (1,373)         190          (1,700)          435           (2,448)

Segment assets                               16,607         207              716        4,946            22,476
Segment liabilities                               -         278              619        3,426             4,323

Depreciation and amortisation expense             -           -               11           18                29
Acquisition of property, plant &                  -           -               92        3,140             3,232
equipment, intangibles and other
non-current assets                                
Investments in a joint venture entity        16,607           -                -            -            16,607


                                       Landfill Gas,     Biomass      Development     Corporate     Consolidated
                                              Hydro,    Services
                                       Industrial &
                                                Wind

2004                                           £'000       £'000            £'000        £'000             £'000
                                                           

Sales to external customers                    8,093       1,678              188            9             9,968
                                                           

Total segment revenue/income                   8,093       1,678              188            9             9,968
Segment result                                 1,248         102              188      (2,657)           (1,119)
                                                               

Share of net loss of joint venture             (191)           -                -            -             (191)
entity
Total segment result before income tax         1,267         102              188      (2,867)           (1,310)
Income tax expense                             (143)           -                -            -             (143)
Net (loss)/profit                              1,124         102            188        (2,867)           (1,453)
Profit from discontinued operations                -           -                -        1,549             1,549
Net Profit/(loss) for the year                 1,124         102              188      (1,318)                96

Segment assets                                16,087         317                -        2,622            19,026
Segment liabilities                                -           -                -        5,067             5,067
Depreciation and amortisation expense          1,511           -                -           17             1,528
Acquisition of property, plant &               2,844           -                -            7             2,851
equipment, intangibles and other
non-current assets
Investments in associates and joint           16,087           -                -            -            16,087
venture




(c) Secondary reporting format- geographical segments


                      Total Segment          Segment assets           Acquisitions of property, plant and
                   revenues and income                              equipment, intangibles (including those
                                                                   acquired through controlled entities) and
                                                                        other non-current segment assets
                         2005      2004            2005      2004                2005                     2004
                        £'000     £'000           £'000     £'000               £'000                    £'000
Australia               1,221       198             119       383                   4                        7
United Kingdom          2,587     9,770          22,357    18,643               3,228                    2,844
Total                   3,808     9,968          22,476    19,026               3,232                    2,851


(d) Notes to and forming part of the segment information


(i) Accounting policies
Segment information is prepared in conformity with the accounting policies of the entity as disclosed in note
1 and accounting standards AASB114 Segment Reporting.
Segment revenues, expenses, assets and liabilities are those directly attributable to a segment and the
relevant portion that can be allocated to the segment on a reasonable basis. Segment liabilities consist
primarily of trade and other creditors, employee benefits and deferred revenue.


(ii) Equity accounted investments
The group owns 50% of NMRE, which is located in the UK, and is accounted for using the equity method and is
allocated to Landfill Gas, Hydro, Industrial & Wind.






5. Revenue                                                    Consolidated                   Parent entity
                                                            2005        2004             2005              2004
                                                           £'000       £'000            £'000             £'000
From continuing operations
Sales Revenue
Sales of electricity and services                          1,790       9,771                -                 -
                                                           1,790       9,771                -
Other revenue
Advisory fees                                                671         188                -               179
Management fees from controlled entity                         -           -              527                 -
Interest income from controlled entity                         -           -                -               412
Interest                                                     126           9              126                 9
Distribution from interest in joint venture                    -           -            1,220                 -
entity
                                                           2,587       9,968            1,873               600

From discontinued operations                                   -      26,436                -            17,946








6. Other income                                                    Consolidated                 Parent entity
                                                                2005           2004            2005         2004
                                                               £'000          £'000           £'000        £'000
Release of deferred revenue                                      161              -               -            -
Net proceeds of sale of Mynydd Clogau                            937              -           1,874            -
Other                                                            123              -             130            -
                                                               1,221              -           2,004            -







7. Expenses
                                                                   Consolidated                 Parent entity
                                                                2005           2004           2005         2004
                                                               £'000          £'000          £'000        £'000
Profit before income tax includes the following
specific expenses:

Depreciation
Plant and equipment                                               29          1,528             18           17

Finance costs- net                                                 -            837              -            -

Rental expenses relating to operating leases
Minimum lease payments                                            95             95             46           43

Foreign exchange gains and losses
Net foreign exchange losses recognised in loss before            116            269            184          504
income tax for the year

Research and Development                                       1,513            180              -            -





8. Income Tax Expense
                                                                Consolidated                  Parent entity
                                                             2005           2004           2005           2004
                                                            £'000          £'000          £'000          £'000
(a) Income tax expense
Current tax                                                     -            143              -              -
Deferred tax                                                    -              -              -              -
                                                                -            143              -              -
Income tax expense is attributable to:                          -            143              -              -

Loss/(profit) from continuing operations
Profit from discontinued operations                             -              -              -              -
Aggregate income tax expense                                    -            143              -              -


(b) Numerical reconciliation of income tax expense
to prima facie tax payable
(Loss)/profit from continuing operations before           (2,448)        (1,310)          2,691          (620)
income tax expense
Profit from discontinuing operations before income              -          1,549              -          3,961
tax expense
                                                          (2,448)            239          2,691          3,341
Income tax (benefit)/expense calculated @ 30%               (734)             72            807          1,002
(2004: 30%)
Tax effect of amounts which are not deductible                  -              -              -              -
(taxable) in calculating taxable income:
Non-assessable capital gains                                (281)          (636)          (562)        (1,188)
Non-deductible depreciation and amortisation                    -              4              -              -
Share of net losses/(profits) of associated and               412             57              -              -
joint venture entity
Exempt dividend                                                 -              -          (366)              -
Other non-deductible expenses                                  18            255             15            147
                                                              585          (248)            106           (39)
Future income tax expense not brought to account/           (585)            391          (106)             39
(now recognised)
Under/ (over) provision in previous year                        -              -              -              -
Income tax expense                                              -            143              -              -


(c) Tax losses
Unused tax losses for which no deferred tax asset           6,575          4,405          4,978          4,405
has been recognised
Potential tax benefit @ 30%                                 1,972          1,321          1,493          1,321

The majority of the tax losses have been incurred
in Australia, and are primarily recoverable from
Australian sourced income. They are converted to
GBP at 0.4250 (2004: 0.4047).




(d) Unrecognised temporary differences
Temporary differences relating to provisions and              198             60             198             60
accruals for which no tax asset had been
recognised
Potential tax benefit @ 30%                                    59             20              59             20





9. Discontinued Operations

9.1(a) Description

On 16 December 2004, the Company disposed of its share
in Novera Europe Energy Limited ('NEEL') to Novera
Macquarie Renewable Energy Limited ('NMRE'). NEEL
represented a separate line of business.

9.1(b) Details of the sale
                                                                     Consolidated                Parent entity
                                                                    2005         2004            2005      2004
                                                                   £'000        £'000           £'000     £'000
Consideration received or receivable:
Cash                                                                   -       26,436               -    17,946
Carrying amount of net assets sold                                     -       24,304               -    12,898
Foreign exchange loss                                                               -                       504
Gain on sale before income tax                                         -        2,132               -     4,544
Income tax expense                                                     -            -               -         -
Gain on sale after income tax                                          -        2,132               -     4,544

9.1(c) Carrying amount of assets and liabilities

The carrying amounts of the assets and liabilities as
at 16 December 2004 are:-
Property, plant & equipment                                            -       11,058               -         -
Investment in subsidiaries                                             -            -               -    21,743
Intangibles                                                            -        6,590               -         -
Receivables                                                            -        6,656               -         -
Total assets                                                           -       24,304               -    21,743

Interest bearing liabilities                                           -            -               -     8,284
Payables                                                               -            -               -       561
Total liabilities                                                      -            -               -     8,845

Net assets                                                             -       24,304               -    12,898

9.2(a) Description

In 2004, the Company wrote off the Narrabri
gasification facility. Narrabri represented a separate
major geographical area.

9.2(b) Details of the write-off                                       Consolidated                Parent entity
                                                                    2005         2004            2005      2004
                                                                   £'000        £'000           £'000     £'000
Consideration received or receivable:
Cash                                                                   -            -               -         -
Carrying amount of net assets written off                              -        (583)               -     (583)
Loss on disposal before income tax                                     -        (583)               -     (583)
Income tax expense                                                     -            -               -         -
Loss on write off after income tax                                     -        (583)               -     (583)

Net gain on discontinued operations                                    -        1,549               -     3,961

9.2(c) Carrying amount of assets and liabilities

The carrying amounts of the assets and liabilities as
at date of write-off in 2004:-
Generation projects                                                    -          233               -       233
Intangibles                                                            -          350               -       350
Total assets                                                           -          583               -       583

Total liabilities                                                      -            -               -         -

Net assets                                                             -          583               -       583



10. Current assets - Cash and cash equivalents
                                                                   Consolidated                 Parent entity
                                                                2005           2004           2005       2004
                                                               £'000          £'000          £'000      £'000
Cash at bank and in hand                                          68          1,156             69        816
Deposits at call                                               3,797              -          3,797          -
                                                               3,865          1,156          3,866        816
Details of cash and deposits are shown at note 23.


11.  Current assets - Receivables
                                                                  Consolidated                 Parent entity
                                                               2005           2004            2005        2004
                                                              £'000          £'000           £'000       £'000
Trade receivable                                              1,022            736             181         181
                                                              1,022            736             181         181

Loans to controlled entities                                      -              -           2,714       1,557
                                                              1,022            736           2,895       1,738




12.   Current assets - Other
                                                                 Consolidated                 Parent entity
                                                               2005           2004            2005        2004
                                                              £'000          £'000           £'000       £'000

Prepayments                                                      34             20              17           6
                                                                 34             20              17           6


13.   Non-current assets - Receivables
                                                               Consolidated                 Parent entity
                                                             2005           2004            2005        2004
                                                            £'000          £'000           £'000       £'000
Long term receivable                                          861            976             861         976
                                                              861            976             861         976

Long term receivable as at 31 December 2005 and 2004 includes the deferred
consideration on sale of the Arpley Facility.








14.   Non-current assets - Investments accounted for using the equity method
                                                                Consolidated                 Parent entity
                                                              2005           2004            2005        2004
                                                             £'000          £'000           £'000       £'000

Shares in joint venture entity (note 31)                    16,607         16,087          19,413      16,300


(a) Shares in joint venture entity
The interest in NMRE is accounted for in the consolidated financial statements using the equity method of
accounting and is carried at cost by the parent (refer note 31).




15.   Non-current assets - Property, plant and equipment
                                                                 Consolidated                 Parent entity
                                                              2005           2004            2005        2004
                                                             £'000          £'000           £'000       £'000
Plant and equipment
At cost                                                        178             82              86          82
Less: Accumulated depreciation                                (60)           (31)            (48)        (31)
Less provision for write down                                 (31)              -            (31)           -
                                                                87             51               7          51
Carrying amount at 1 January 2005                               51         17,107              51          68
Additions                                                       96          2,851               5           7
Disposals                                                        -       (18,379)               -         (7)
Depreciation                                                  (29)        (1,528)            (18)        (17)
Less provision for write-down                                 (31)              -            (31)           -
Carrying amount at 31 December 2005                             87             51               7          51


16.   Current liabilities - Payables
                                                                 Consolidated                 Parent entity
                                                              2005           2004            2005        2004
                                                             £'000          £'000           £'000       £'000
Trade payables                                                 481             56               -          56
Other payables and accruals                                    587            777             450         638
                                                             1,068            833             450         694


17.   Current liabilities - Deferred revenue
                                                                Consolidated                 Parent entity
                                                              2005           2004            2005        2004
                                                             £'000          £'000           £'000       £'000

Deferred revenue                                               154            937               -       1,874



Deferred revenue is one half of the profit on vending of NEEL into NMRE and is
recognised in the income statement of the group over the useful life of the
assets.








18.   Current liabilities - Provisions
                                                                  Consolidated                 Parent entity
                                                              2005           2004            2005        2004
                                                             £'000          £'000           £'000       £'000
Employee entitlements                                           22             33              16           8


19.   Current liabilities - Other                                Consolidated                 Parent entity
                                                              2005           2004           2005         2004
                                                             £'000          £'000          £'000        £'000
Other                                                          303            173             31           82





20.   Non-Current liabilities - Deferred revenue
                                                                 Consolidated                 Parent entity
                                                              2005           2004            2005        2004
                                                             £'000          £'000           £'000       £'000

Deferred revenue                                             2,776          3,091               -           -
                                                             2,776          3,091               -           -

Deferred revenue is one half of the profit on vending of NEEL into NMRE and is
recognised in the income statement of the group over the useful life of the
assets.




21.    Contributed equity
                                                            2005             2004            2005       2004
                                                           Number           Number
                                                            '000             '000           £'000       £'000
(a)        Share capital
Ordinary shares (fully paid)                                54,801          210,438         32,211      25,583



(b) Movements in ordinary share capital
                                                                       Shares        Issue Price      £'000
Date                                                                    '000
                  Opening balance-1 January 2004                      207,635                        25,396
20 January 2004   Exercise of options                                  2,803           £0.095          268
                  Less transaction costs arising                         -                            (81)
                  on share issue
31 December 2004  Balance                                             210,438                        25,583

28 April 2005     Placement                                            17,620          £0.123         2,173
                                                                      228,058                        27,756
                  Consolidation                    1 for 5             45,612                          N/A
10 June 2005      Placement                                            9,189            £0.58         5,330
                  Less transaction costs arising                         -                            (875)
                  on share issue
31 December 2005  Balance                                              54,801                        32,211



The purpose of the share issue was for funding current and future projects.



Ordinary shares entitle the holder to participate in dividends and the proceeds
on winding up of the Company in proportion to the number of and amounts paid on
the shares held.  On a show of hands, every holder of ordinary shares present at
a meeting in person or by proxy, is entitled to one vote and upon a poll, each
share is entitled to one vote.



Information relating to the Novera Energy Australian Incentive Option Plan,
including details of options issued, exercised and lapsed during the financial
year and options outstanding at the end of the financial year are set out in
note 28.


 22.   Reserves and retained earnings
                                                                  Consolidated               Parent entity
                                                                  2005        2004         2005           2004
                                                                 £'000       £'000        £'000          £'000
(a) Reserves
Foreign currency translation reserve                                 -           -            -              -
Share-based payments reserve                                        14           -           14              -
                                                                    14           -           14              -
Foreign currency translation reserve                                 -     (1,888)            -              -

Balance 1 January
Transfer to retained earnings on adoption of                         -       1,888            -              -
AIFRS
Balance 31 December                                                  -           -            -              -

Share-based payments reserve
Balance 1 January                                                    -           -            -              -
Option expense                                                      14           -           14              -
Balance 31 December                                                 14           -           14              -

(b)  Retained earnings
Balance 1 January                                             (11,624)     (9,807)      (8,354)       (11,695)
Adjustment on adoption of AIFRS                                      -        (25)            -              -
Net profit/ (loss) attributable to members of                  (2,448)          96        2,691          3,341
Novera Energy Limited
Net transfer from foreign currency translation                       -     (1,888)            -              -
reserve on adoption of AIFRS
Balance 31 December                                           (14,072)    (11,624)      (5,663)        (8,354)

(c)  Nature and purpose of reserves
 (i) Foreign currency translation reserve
Exchange differences arising on translation of
the foreign controlled entity are taken to the
foreign currency translation reserve. The
reserve will be recognised in the income
statement on the disposal of the investment.

(ii) Share-based payment reserve
The share-based payment reserve is used to
recognise the fair value of options issued but
not exercised.


23.   Financial Instruments
2005- Interest rate exposure                  Floating                                      Non-
                                              interest         1 year         Over 1      interest
                                                rate          or less          year        bearing      Total
                                  Notes         £'000          £'000          £'000         £'000       £'000


Financial assets
Cash and deposits                               3,865            -              -             -         3,865
Receivables-current                               -              -              -           1,022       1,022
Receivables-non-current                           -              -              -            861         861
                                                3,797            -              -           1,951       5,748
Weighted average interest rate                  3.91%            -              -             -           -

Financial liabilities
Payables                                          -              -              -           1,068       1,068
                                                  -              -              -           1,068       1,068
Weighted average interest rate                    -              -              -             -           -

2004- Interest rate exposure                  Floating         1 year         Over 1        Non-
                                              interest        or less          year       interest
                                                rate                                       bearing      Total
                                  Notes         £'000          £'000          £'000         £'000       £'000
Financial assets
Cash and deposits                               1,156            -              -             -         1,156
Receivables-current                               -              -                           736         736
Receivables-non-current                           -              -              -            976         976
                                                1,156            -              -           1,712       2,868
Weighted average interest rate                  3.00%            -              -             -           -

Financial liabilities
Payables                                          -              -              -            833         833
Weighted average interest rate                    -              -              -             -           -

The credit risk on financial assets of the consolidated entity, which have been
recognised on the statement of financial position, other than investments in
shares, is generally the carrying amount, net of any provisions for doubtful
debts.



The consolidated entity's exposure to interest rate risk and the effective
weighted average interest rate by maturity periods is set out in the tables
above.



None of the above financial instruments are readily tradable on organised
markets in standardised form.



The net fair values of financial assets and liabilities at balance date are
equal to their carrying amounts.



24. Remuneration of auditors
                                                        Consolidated                   Parent entity
                                                          2005           2004           2005             2004
                                                         £'000          £'000          £'000            £'000


During the year the auditor of the parent
entity and its related practices earned the
following remuneration:

PricewaterhouseCoopers -
Audit of the financial report of the entity or         122,867        184,555         46,867           58,193
any entity in the consolidated entity
Other assurance services:
       Fees paid to the Australian Firm                  8,396         72,206          4,198           72,206
       Fees paid to practices related to the                 -        340,150              -                -
Australian firm
Taxation services:                                       2,000         73,900          2,000                -

        Fees paid to the Australian Firm
       Fees paid to practices related to the             6,000              -              -                -
Australian Firm
Other Services                                          22,488              -         22,488                -
Total remuneration                                     161,751        670,811         75,553          130,399




It is the consolidated entity's policy to employ PricewaterhouseCoopers on
assignments additional to their statutory audit duties where
PricewaterhouseCoopers' expertise and experience with the consolidated entity
are important.

The fees earned by PricewaterhouseCoopers in respect of other Assurance services
in 2005 represents the provision of services associated with the adoption of
AIFRS while in 2004 it represented due diligence services in respect of the
joint venture with Macquarie Bank Limited, in particular, the review of the
proposed corporate structure and taxation considerations. Other services in 2005
represents the provision of services associated with current year acquisitions.

PricewaterhouseCoopers is awarded assignments on a competitive basis.  It is the
consolidated entity's policy to seek competitive tenders for all major
consulting projects. The Audit and Compliance Committee of the parent company's
board has determined that PricewaterhouseCoopers is and acts independently of
the Company in its role as statutory auditor.

Other assurance services in 2004 related mainly to an internal controls review
undertaken by PricewaterhouseCoopers in the United Kingdom and other assurance
related services in Australia









25.  Contingent liabilities
No material losses are anticipated in respect of any possible liabilities that arise from past events. At 31 December
2005, the consolidated entity has identified no such events that may lead to a contingent liability.



 26. Commitments for expenditure
                                                                   Consolidated                Parent entity
                                                                 2005           2004           2005       2004
                                                                £'000          £'000          £'000      £'000

Operating lease commitments

Commitments in relation to leases contracted for
at the reporting date but not recognised as
liabilities, payable:
Within one year                                                   115             94              -         46
Later than one year but not later than 5 years                    202            154              -        114

                                                                  317            248              -        160

The lease commitment for the parent entity is fully recognised as a liability.


27.   Employee entitlements
                                                                  Consolidated                Parent entity
                                                                2005           2004           2005        2004
                                                               £'000          £'000          £'000       £'000

Employee entitlement liabilities
Provision for employee entitlements
Annual leave                                                      22             32             16           7
Superannuation                                                     -              1              -           1
                                                                  22             33             16           8



The consolidated entity on average employed 73 people (2004:125). This reduction
was due to the vending of the NEEL LFG assets to the NMRE joint venture on 16
December 2004, thus transferring employees into the joint venture.





28 Share-based payments



Employee Option Plan

Ownership-based remuneration is provided to employees via the Novera Energy
Australian Incentive Option Plan. The Option Plan was approved by shareholders
at the 2002 Annual General Meeting. Under the Plan, eligible employees, at the
discretion of the Board, may be offered share options in the Company at a price
determined by the Board. The aggregate of shares which would be acquired, if all
outstanding options were exercised, must not exceed 10% of the total number of
issued shares.

Options are vested on meeting KPI criteria and retention of employment.

The options granted under the plan carry no dividend or voting rights.

When exercisable, each option is convertible into one ordinary share.

Set out below are summaries of options granted under the plan to employees and
key management personnel.

There were no options approved for granting in 2004 or 2005.
Grant date Expiry date      Old       Balance at     Balance at    Exercised      New       Expired    Balance at
                         Exercise   start of year  start of year  during the   Exercise    during the  end of year
                           price                       -post         year        price        year
                                         -pre      consolidation
                             £      consolidation                                  £         Number      Number
                                        Number        1 for 5                                       
                                                      
Consolidated and parent entity-2005
13 Dec 00  13 Dec 05       0.10            500,000        100,000           -    0.53                -     100,000
23 Jan 01  31 Jan 05       0.10          1,863,628        372,726           -      -         (372,726)           -
23 Jan 01  23 Jan 06       0.10            349,430         69,886           -    0.50                -      69,886
14 Mar01   23 June 05      0.17            163,068         32,614           -      -          (32,614)           -
14 Mar 01  14 Mar 06       0.17            396,022         79,204           -    0.91                -      79,204
28 Mar01   28 Mar 06       0.10            819,204        163,841           -    0.50                -     163,841
23 June 02 31 Dec 05       0.20            650,000        130,000           -      -         (130,000)           -
18Dec 02   18Dec 05        0.20            516,590        103,318           -      -         (103,318)           -
 31 Dec 03 25 May 06       0.12            250,000         50,000           -    0.64                -      50,000
                                         5,507,942      1,101,589                            (638,658)     462,931
Weighted average                             £0.13           0.59       £0.15                    £0.59       £0.59
exercise price




  Grant date   Expiry date    Exercise    Balance at    Exercised    Expired during   Balance at end of
                               price     start of year  during the      the year             year
                                                           year
                                 £          Number        Number         Number             Number
Consolidated and parent entity-2004
13 Dec 00      13 Dec 05        0.10          500,000             -                -              500,000
23 Jan 01      4 Jan 04         0.13        2,593,260   (2,593,260)                -                    -
23 Jan 04      20 Feb 04        0.13          435,136     (210,000)        (225,136)                    -
23 Jan 01      31 Jan 05        0.10        1,863,628             -                -            1,863,628
23 Jan 01      23 Jan 06        0.10          349,430             -                -              349,430
14 Mar01       23 June 05       0.17          163,068             -                -              163,068
14 Mar 01      14 Mar 06        0.17          396,022             -                -              396,022
28 Mar01       28 Mar 06        0.10          819,204             -                -              819,204
07 Jan 02      07 Jun 05        0.17          350,000             -        (350,000)                    -
23 June 02     22 Jul 05        0.17          500,000             -        (500,000)                    -
18 Dec 02      18Dec 05         0.20          751,590             -         (85,000)              666,590
08 May 03      8 May 06         0.20          500,000             -                -              500,000
 31 Dec 03     25 May 06        0.12          250,000             -                -              250,000
                                            9,471,338   (2,803,260)      (1,160,136)            5,507,942
Weighted average exercise                       £0.12         £0.10            £0.18                £0.13
price





Options that have expired prior to the expiry date have done so under the terms
of the share option due to the employee ceasing to be employed by the Company
during the year.



There were no options exercised during the financial period.



The weighted average share price at the date of exercise of options exercised
regularly during the year ended 31December 2005 was £nil (2004 £ 0.13).



The weighted average remaining contractual life of unlisted share options
outstanding at the end of the period was 5 months (2004: 12 months).



Fair value of options granted

The fair value of the shares issued on the exercise of options is the weighted
average price at which the company's shares were traded on the Australian Stock
Exchange on the day prior to the exercise of the options.



Options exercised during the year and number of shares issued to employees on
the exercise of options is set out below:
                                         Consolidated                             Parent entity
Exercise date   Fair value     2005        2004          2004          2005         2004           2004
               of shares at
                 exercise                                Total                                    Total
                    £         Number      Number           £          Number       Number           £
22/01/2004     0.135                  -   2,593,260         350,090           -    2,593,260          350,090
03/03/2004     0.125                  -     210,000          26,250           -      210,000           26,250
                                      -   2,803,260         376,340           -    2,803,260          376,340




29. Related party transactions
(a) Parent entity

The ultimate parent entity within the group is Novera Energy Limited.



(b) Subsidiaries

Interest in subsidiaries is set out in note 30.



(c) Transactions with related parties
The following transactions occurred with related parties:
                                                      Consolidated                   Parent entity
                                                  2005           2004            2005             2004
                                                 £'000           £'000           £'000           £'000
Loans to related parties
Loan advances to:
Subsidiaries                                              -               -           1,706            1,323
Joint venture                                           165             234             165              234
Loan repayments from:
Subsidiaries                                              -               -             854                -
Joint venture                                           399               -             399                -
Management fee
Subsidiaries                                              -               -             527                -
Dividend
Joint venture                                             -               -           1,220                -
Interest revenue
Subsidiaries                                              -               -               -              412


(e) Outstanding balances
The following balances are outstanding at the reporting date in relation to transactions with related
parties.
                                                         Consolidated                    Parent entity
                                                      2005           2004           2005             2004
                                                     £'000          £'000          £'000            £'000
Non-current receivables
Subsidiaries                                             -              -          2,714              1,323
Joint venture                                            -            234              -                234




30.   Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 1(b)


Name of Entity                            Country of         Class of shares          Equity holding
                                          incorporation
                                                                                    2006           2005
                                                                                     %               %
Novera Ventures Limited                   United Kingdom     Ordinary               100             100
Novera Energy Services UK Limited         United Kingdom     Ordinary               100             100



Novera Energy Limited has granted certain cash indemnities under the vending of
NEEL to NMRE to its joint venture participant Macquarie Bank Limited. The
indemnities relate to various operational activities of the NEEL Group including
pension schemes, leave accruals, environmental compliance and employee
entitlements.




31. Interests in joint ventures



Novera Energy Limited has a 50% interest in the joint venture, NMRE, the principal activity of which
is acquiring and operating renewable energy assets.

The interest in NMRE is accounted for in the consolidated financial statements using the equity method
of accounting and is carried at cost by the parent entity.

Information relating to the joint venture is set out below:


                                                                   Consolidated                   Parent
                                                                   2005         2004         2005         2004
                                                                  £'000        £'000        £'000        £'000
Carrying amount of investment in joint venture entity            16,607       16,087       19,413       16,300

                                                                Consolidated - 50%               NMRE 100%
                                                                   2005         2004         2005         2004
                                                                  £'000        £'000        £'000        £'000
Share of joint venture entity's assets and liabilities
Non-current assets                                               61,608       47,662      123,216       95,324
Current assets                                                   12,549       12,400       25,097       24,800
Total assets                                                     74,157       60,062      148,313      120,124

Current liabilities                                               8,872        3,804       17,744        7,608
Non-current liabilities                                          49,214       40,171       98,428       80,342
Total liabilities                                                58,086       43,975      116,172       87,950

Net assets                                                       16,071       16,087       32,142       32,174
Add:
  • Joint Venture appropriation reserve                             442            -          884            -

  • Transaction costs capitalised                                    36            -           72            -

  • Net movement on reserve                                          58            -          116            -

                                                                 16,607       16,087       33,214       32,174


                                                                 Consolidated - 50%                NMRE 100%
                                                                 2005         2004         2005            2004
                                                                £'000        £'000        £'000           £'000

Share of joint venture entity's revenue, expenses
and results
Revenues                                                       12,469          398       24,938             796
Cost of sales                                                   6,883          220       13,766             440
Gross Profit                                                    5,586          178       11,172             356
                                                                  410           35          819              70

Restructuring cost of business acquisition                                                  
Other administrative expenses                                     770          189        1,540             378
Administrative Expenses                                         1,180          224        2,359             448

EBITDA                                                          4,406         (46)        8,813            (92)

Depreciation expense                                            2,477           79        4,954             157
Amortisation expense                                              993           31        1,985              63

Operating Profit / (Loss)                                         936        (156)        1,874           (312)

Net interest payable and similar charges                      (2,287)         (54)      (4,575)           (108)
Share of post tax losses from joint ventures                     (22)            -         (45)               -

Profit / (Loss) before tax                                    (1,373)        (210)      (2,746)           (420)
Tax expense                                                         -            -            -               -
Profit / (Loss) for the year                                  (1,373)        (210)      (2,746)           (420)
Profit/(loss) from other joint ventures                             -           19            -               -
Profit/(Loss) for the year                                    (1,373)        (191)      (2,746)           (420)
Share of joint venture entity's commitments
Lease commitments                                                  90          128










32.  Economic dependency
Novera Energy Limited depends on a significant volume of revenue on sales under long-term contracts, with fixed (but
inflation linked) prices paid by the Non Fossil Purchasing Agency Limited, a UK government agency to NEEL. Subsequent to
the vending of NEEL on 16th December 2004, this revenue has been derived by NMRE with alternative sources of revenue
being sought to reduce future dependency on any particular entity.


33. Events occurring after reporting date


Novera Energy has been granted approval to delist from the ASX with effect from 4 April 2006. The Company will remain
listed on the Alternative Investment Market.






34.  Reconciliation of profit from ordinary activities after income tax to net cash inflow from operating
activities
                                                                  Consolidated              Parent entity
                                                                    2005           2004       2005        2004
                                                                   £'000          £'000      £'000       £'000
Profit from ordinary activities after income tax                 (2,448)             96      2,691       3,341
Depreciation and amortisation                                         29          1,553         18          17
Write down of investments in Narrabri                                  -            583          -         583
Profit on vending of NEEL                                              -        (2,131)          -     (4,544)
Foreign exchange differences                                         116            269        118         504
Gain on sale of Mynydd Clogau                                      (937)              -    (1,874)           -
Release of discounted deferred revenue                             (161)              -          -           -
Release of discounted Interest                                     (123)                     (130)
Employee benefits expense                                             14              -         14           -
Share of profits of associates and joint venture                   1,373            192          -           -
partnership not received as dividends or distributions
Decrease (increase) in receivables                                 (331)          (918)      (295)     (1,395)
Decrease (increase) in inventories                                     -            203          -           -
Decrease (increase) in prepayments                                  (14)              -       (11)           -
Increase (decrease) in trade payables                                425              -       (56)         592
Increase (decrease) in accruals                                    (190)              -      (188)           -
Increase (decrease) in other current liabilities                     130              -       (51)         (9)
Increase (decrease) in provisions                                   (11)              -          8           -
Net cash (outflow)/inflow from operating activities              (2,128)          (153)        244       (911)




35. Earnings per share
                                                                                           Consolidated
                                                                                         2005         2004
                                                                                          £             £
Basic earnings per share                                                                (0.05)        0.00
Diluted earnings per share                                                              (0.05)        0.00

                                                                                           Consolidated
                                                                                         2005         2004
                                                                                        Number       Number
                                                                                         '000         '000
Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator in calculating       49,414       210,321
basic earnings per share

Weighted average number of ordinary shares and potential ordinary shares used as        49,735       211,559
the denominator in calculating diluted earnings per share, and reflecting the
impact of unexercised options



The comparative number of shares used in the denominator was prior to the
consolidation of shares on a 1 for 5 basis in May 2005. There have been no
additional shares issued between 31 December 2005 and 31 March 2006.



The numerator for the above calculations is net (loss)/profit from ordinary
activities after related income tax expense for the year is (£2,448,000) (2004:
£ 96,000).








36. Net tangible assets per share
                                                                                           Consolidated
                                                                                         2005         2004
                                                                                          £             £

Net tangible assets per share                                                            0.37         0.07


                                                                                           Consolidated
                                                                                         2005         2004
                                                                                        Number       Number
                                                                                         '000         '000
Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator in calculating       49,414       210,321
net tangible assets per share



The comparative number of shares used in the denominator was prior to the
consolidation of shares on a 1 for 5 basis in May 2005. There have been no
additional shares issued between 31 December 2005 and 31 March 2006.


37. Explanation of transition to Australian equivalents to IFRS


(1) Reconciliation of equity reported under previous Australian Generally Accepted Accounting Principles
(AGAAP) to equity under Australian equivalents to IFRSs (AIFRS)
(a)  At the date of transition to AIFRS: 1 January 2004
                                                       Consolidated                         Parent
                                              Previous    Effect of      AIFRS   Previous   Effect of     AIFRS
                                                         transition                        transition
                                      Notes      AGAAP           to                 AGAAP          to
                                                              AIFRS                             AIFRS
                                                 £'000        £'000      £'000      £'000       £'000     £'000
ASSETS
Non-current assets
Property, plant & equipment                     17,796            -     17,796         70           -        70
Investments accounted for using                    459            -        459          -           -         -
the equity method
Other financial assets                                                              5,778           -     5,778
Intangibles                                      7,746           18      7,764        610           -       610
Receivables                                          -            -          -      6,914           -     6,914
Total non-current assets                        26,001           18     26,019     13,371           -    13,372

Current assets
Cash and cash equivalents                        1,700            -      1,700        425           -       425
Receivables                                      2,313            -      2,313          -           -         -
Inventories                                        248            -        248          -           -         -
Other                                              323            -        323         16           -        16
Total current assets                             4,585            -      4,585        441           -       441

Total assets                                    30,586           18     30,604     13,812           -    13,813

LIABILITIES
Current liabilities
Payables                                         2,153            -      2,153         94           -        94
Interest bearing liabilities                     1,838            -      1,838          -           -         -
Overdraft                                          980            -        980          -           -         -
Provisions                                          22            -         22          -           -         -
Other                                               18            -         18         18           -        18
Total current liabilities                        5,011            -      5,011        111           -       112

Non-current liabilities
Interest bearing liabilities                    11,874            -     11,874          -           -         -
Retirement benefit obligations                                   43         43          -           -         -
Total non-current liabilities                   11,874           43     11,917          -           -         -

Total liabilities                               16,885           43     16,928        112           -       112

Net assets                                      13,701         (25)     13,676     13,701           -    13,701

EQUITY
Contributed equity                              25,396            -     25,396     25,396           -    25,396
Reserve                                        (1,888)            -          -          -           -         -
Accumulated losses                             (9,807)         (25)   (11,720)     11,695           -    11,695
Total equity                                    13,701         (25)     13,676     13,701           -    13,701












37. Explanation of transition to Australian equivalents to IFRS (continued)
(1) Reconciliation of equity reported under previous Australian Generally Accepted Accounting Principles
(AGAAP) to equity under Australian equivalents to IFRSs (AIFRS)
(b)  At the date of the last reporting period under previous AGAAP: 31 December 2004

                                                    Consolidated                         Parent
                                          Previous    Effect of     AIFRS     Previous    Effect of    AIFRS
                                                     transition                          transition
                                 Notes      AGAAP        to                     AGAAP        to
                                                        AIFRS                               AIFRS
                                            £'000       £'000       £'000       £'000       £'000      £'000
ASSETS
Non-current assets
Property, plant & equipment                       51           -          51          51           -         51
Investments accounted for using               16,087           -      16,087      16,300           -     16,300
the equity method
Receivables                                      976           -         976         976           -        976
Total non-current assets                      17,114           -      17,114      17,327           -     17,327

Current assets
Cash and cash equivalents                      1,156           -       1,156         816           -        816
Receivables                                      736           -         736       1,738           -      1,738
Other                                             20           -          20           6           -          6
Total current assets                           1,912           -       1,912       2,560           -      2,560

Total assets                                  19,026           -      19,026      19,887           -     19,887

LIABILITIES
Current liabilities
Payables                                         833           -         833         694           -        694
Deferred revenue                                 937           -         937       1,874           -      1,874
Provisions                                         8          25          33           8           -          8
Other                                            173           -         173          82           -         82
Total current liabilities                      1,951           -       1,976       2,658           -      2,658

Non-current liabilities
Deferred revenue                               3,081          10       3,091           -           -          -
Total non-current liabilities                  3,081          35       3,091           -           -          -

Total liabilities                              5,032          35       5,067       2,658           -      2,658

Net assets                                    13,994        (35)      13,959      17,229           -     17,229

EQUITY
Contributed equity                            25,583           -      25,583      25,583           -     25,583
Accumulated losses                          (11,589)        (35)    (11,624)     (8,354)           -    (8,354)
Total equity                                  13,994        (35)      13,959      17,229           -     17,229








Explanation of transition to Australian equivalents to IFRS (continued)
(2) Reconciliation of profit for the year ended 31 December 2004
                                                    Consolidated                         Parent
                                           Previous    Effect of    AIFRS    Previous    Effect of    AIFRS
                                                      transition                        transition
                                  Notes      AGAAP        to                   AGAAP        to
                                                         AIFRS                             AIFRS
                                             £'000       £'000      £'000      £'000       £'000      £'000
Revenue                                        36,404    (26,436)     9,968      18,546    (17,946)       600
Cost of sales                                (27,972)      24,304   (3,668)    (13,985)      13,985         -
Gross Profit                                    8,432     (2,132)     6,300       4,561     (3,961)       600
Finance costs-net                               (837)           -     (837)           -           -         -
Other administration expenses                 (5,432)         558   (4,874)     (1,203)           -   (1,203)
Administration Expenses                       (6,269)         558   (5,711)     (1,203)     (3,961)     (603)
Development costs                               (180)           -     (180)           -
Depreciation and amortisation                 (1,543)          15   (1,528)        (17)           -      (17)
expense
(Loss)/profit before share of                     440     (1,559)   (1,119)       3,341     (3,961)     (620)
joint venture results
Shares of net losses of a joint                 (191)           -     (191)           -           -         -
venture entity accounted for
using the equity method
(Loss) /profit before income tax                  249     (1,559)   (1,310)       3,341     (3,961)     (620)
Income tax expense                              (143)           -     (143)           -           -         -
(Loss)/profit from continuing                     106           -   (1,453)       3,341     (3,961)     (620)
operations
Profit from discontinued                            -       1,549     1,549           -       3,961     3,961
operations
(Loss)/profit for the year                        106        (10)        96       3,341           -     3,341

(Loss)/profit attributable to                       -           -         -           -           -         -
minority interests
                                                  106        (10)        96       3,341           -     3,341

(Loss)/profit attributable to
members of Novera Energy Limited






            (3) Reconciliation to cash flow statement for the year ended 31 December 2005
The adoption of AIFRS has not resulted in any material adjustments to the cash flow statement.



 (4) Notes to the reconciliation



(a)  Intangible assets



Under previous AGAAP, goodwill was amortised on a straight line basis over the
period in which the benefits were expected to arise, which varied up to 20
years. Under AASB 138 there is no amortisation of goodwill. The effect of this
is:



(i) At 1 January 2004

For the Group, the balance of £18,000 is debited to Intangible assets. Retained
earnings is increased by the same amount.





(ii) At 31 December 2004

For the Group, the balance of £33,000 is debited to Intangible assets. However,
due to the vending of Novera Energy Europe Limited in 2004, the amount is
reversed against the Profit on sale amount referred to in Note (d).



(iii) For the year ended 31 December 2004

For the Group, Depreciation and amortisation was reduced by £15,000.





(b) Retirement benefit obligations



Employees in the United Kingdom participated in the Company's final salary
pension plan which is a defined benefit plan. Under previous AGAAP, cumulative
actuarial gains and losses were not required to be recognised on the balance
sheet. At the date of transition, a liability is recognised in the provision for
employee benefits. It is measured as the difference between the present value of
the employees' accrued benefits at that date and the net market value of the
superannuation fund's assets at that date. The effect of this is:



(i) At 1 January 2004

For the Group, there has been an increase of £43,000 in Retirement benefit
obligations. Retained earnings have been decreased by the same amount.



(i1) At 31 December 2004

For the Group, there has been an increase of £55,000 in Retirement benefit
obligations. Retained earnings have been decreased by the same amount. However,
due to the vending of Novera Energy Europe Limited ('NEEL') in 2004, the amount
is reversed against the Profit on sale amount referred to in Note (d).



 (c) Employee provisions



In the UK, it is not a requirement for employers to accrue for annual leave. In
accordance with AASB 108 Accounting Policies, regarding changes in accounting
policies, the increase in the provision has been recognised in the Retained
earnings of the Venture Group in 2004.The effect of this is:





 (i) At 1 January 2004

For the Group, the provision has not been recognised at this date.



 (ii) At 31 December 2004

For the Group, there has been an increase of £25,000 in provisions. Retained
earnings have been decreased by the same amount.



(iii) For the year ended 31 December 2004

For the Group, there has been an increase in employee benefits expense of
£25,000.



(d) Deferred revenue



In 2004, Novera Energy Limited vended Novera Energy Europe Limited into the
Novera Macquarie Renewable Energy Joint Venture. All assets and liabilities were
sold into this joint venture. The initial adjustments required on the
introduction of IFRS has changed the balance of Intangible assets and Retirement
benefit obligations sold into the joint venture. The effect of this is:



(i) At 1 January 2004

For the Group, nil effect.



(ii) At 31 December 2004

For the Group, there has been a decrease of £55,000 in Retirement benefit
obligation liability and a decrease in Intangible assets of £32,000. Retained
earnings have been decreased by £10,000 and Deferred revenue increased by
£10,000.





(iii) For the year ended 31 December 2004

For the Group, Profit from discontinued operations has been increased by
£10,000.



(e) Discontinued operations



In 2004, the Group disposed of the assets/rights associated with the land fill
gas site at Arpley, England, and NEEL and wrote off the expenses which had been
capitalised on the Australian Narrabri project. In accordance with AASBs the
revenue and costs of these have been reclassified under discontinued operations
in the profit and loss reconciliations.  The effect of this is:



(i ) At 31 December 2004

For the Group, there has been a decrease of £26,436k in Revenue and a decrease
of £24,304k in cost of sales. Other expenses have decreased by £558k and
depreciation by £15k.The net result, together with the additional profit of
£10,000 from the restatements referred to in Note (d), has been disclosed as
profit from discontinued operations.



(f) Retained earnings



The effect on retained earnings of the changes set out above are as follows:

Consolidated


                                                     1 January 2004           31 December 2004
                                         Notes            £'000                     £'000
Goodwill write back                      (a)               18                        33
Retirement benefit obligations           (b)              (43)                      (55)
Other expenses                           (c)                -                       (25)
Profit on sale of NEEL                   (d)                -                        10
Rounding                                                    -                         2
Total adjustment                                          (25)                      (35)

Attributable to:
Equity holders of the parent                              (25)                      (35)





(g) Deferred tax



IFRS effects are shown gross of deferred tax as any liability for temporary
differences would be offset against carried forward tax losses and on the
vending of NEEL into the NMRE in December 2004.






Directors' Declaration





In the directors' opinion:



a)       the financial statements and notes set out on pages 24 to 61 are in
accordance with the Corporations Act 2001, including:

i)         complying with Accounting Standards, the Corporations Regulations
2001 and other mandatory professional reporting requirements; and

ii)       giving a true and fair view of the Company's and consolidated entity's
financial position as at 31 December 2005 and of their performance, as
represented by the results of their operations and their cash flows, for the
financial year ended on that date;



b)       the remuneration report as set out on pages 17 to 23 of  complies with
accounting standards and class order 06-50 issued by the Australian Investment
and Securities Commission; and



c)       there are reasonable grounds to believe that the Company will be able
to pay its debts as and when they become due and payable.



The directors have been given the declarations by the chief executive officer
and chief financial officer required by section 295A of the Corporations Act
2001.



This declaration is made in accordance with a resolution of the directors.











John Brown
Director



London, 31 March 2006











PricewaterhouseCoopers
ABN 52 780 433 757



Freshwater Place
2 Southbank Boulevard
SOUTHBANK  VIC  3006
GPO Box 1331L
MELBOURNE  VIC  3001
DX 77
Website:www.pwc.com/au
Telephone +61 3 8603 1000
Facsimile +61 3 8603 1999











Independent audit report to the members of



Novera Energy Limited





Audit opinion



In our opinion:



 1. the financial report of Novera Energy Limited:



      • gives a true and fair view, as required by the Corporations Act 2001
        in Australia, of the financial position of Novera Energy Limited and the
        Novera Energy Limited Group (defined below) as at 31 December 2005, and
        of their performance for the year ended on that date, and



      • is presented in accordance with the Corporations Act 2001, Accounting
        Standards and other mandatory financial reporting requirements in
        Australia, and the Corporations Regulations 2001, and



 2. the remuneration disclosures that are contained in pages 17 to 23 of the
    directors' report comply with Accounting Standard AASB 124 Related Party
    Disclosures (AASB 124) and Class Order 06/50 issued by the Australian
    Securities and Investments Commission.



This opinion must be read in conjunction with the rest of our audit report.



Scope



The financial report, remunerations disclosures and directors' responsibility



The financial report comprises the balance sheet, income statement, cash flow
statements, statement of changes in equity, accompanying notes to the financial
statements, and the directors' declaration for both Novera Energy Limited (the
company) and the Novera Energy Limited Group (the consolidated entity), for the
year ended 31 December 2005. The consolidated entity comprises both the company
and the entities it controlled during that year.



The company has disclosed information about the remuneration of directors and
executives (remuneration disclosures) as required by AASB 124, under the heading
'remuneration report' on pages 17 to 23 of the directors' report, as permitted
by Class Order 06/50.



The directors of the company are responsible for the preparation and true and
fair presentation of the financial report in accordance with the Corporations
Act 2001. This includes responsibility for the maintenance of adequate
accounting records and internal controls that are designed to prevent and detect
fraud and error, and for the accounting policies and accounting estimates
inherent in the financial report.  The directors are also responsible for the
remuneration disclosures contained in the directors' report.



Audit approach



We conducted an independent audit in order to express an opinion to the members
of the company. Our audit was conducted in accordance with Australian Auditing
Standards, in order to provide reasonable assurance as to whether the financial
report is free of material misstatement and the remuneration disclosures comply
with AASB 124 and Class Order 06/50. The nature of an audit is influenced by
factors such as the use of professional judgement, selective testing, the
inherent limitations of internal control, and the availability of persuasive
rather than conclusive evidence. Therefore, an audit cannot guarantee that all
material misstatements have been detected. For further explanation of an audit,
visit our website http://www.pwc.com/au/financialstatementaudit.



We performed procedures to assess whether in all material respects the financial
report presents fairly, in accordance with the Corporations Act 2001, Accounting
Standards and other mandatory financial reporting requirements in Australia, a
view which is consistent with our understanding of the company's and the
consolidated entity's financial position, and of their performance as
represented by the results of their operations, changes in equity and cash
flows. We also performed procedures to assess whether the remuneration
disclosures comply with AASB 124 and Class Order 06/50.



We formed our audit opinion on the basis of these procedures, which included:



  • examining, on a test basis, information to provide evidence supporting the
    amounts and disclosures in the financial report and remuneration
    disclosures, and



  • assessing the appropriateness of the accounting policies and disclosures
    used and the reasonableness of significant accounting estimates made by the
    directors.



Our procedures include reading the other information in the Annual Report to
determine whether it contains any material inconsistencies with the financial
report.



While we considered the effectiveness of management's internal controls over
financial reporting when determining the nature and extent of our procedures,
our audit was not designed to provide assurance on internal controls.



Our audit did not involve an analysis of the prudence of business decisions made
by directors or management.



Independence



In conducting our audit, we followed applicable independence requirements of
Australian professional ethical pronouncements and the Corporations Act 2001.










PricewaterhouseCoopers










Chris Dodd        Melbourne
Partner           31 March 2006



The Shareholder information set out below was applicable at 20 March 2006.



Distribution of equity securities


                                                                           Ordinary Shares
                                                            Shares                 Options
1-1,000                                                    150,835                       -
1,001 - 5,000                                            1,265,874                       -
5,001 - 10,000                                           1,251,414                       -
10,001 - 100,000                                         5,577,020                       -
100,001 and over                                        46,555,727                       -
                                                        54,800,870                       -



The 3,777,779 listed options expired on 1 December 2005.



There were 19 holders of less than a marketable parcel of ordinary shares.





Twenty largest security holders*                                                     Ordinary Shares
                                                                      Units                    %
Bennelong Group                                                     7,830,408                14.29
D Scaysbrook and affiliates                                         3,992,560                7.29
National Nominees Limited                                           3,648,014                6.66
Vidacos Nominees Limited                                            3,197,849                5.84
Bank of New York (Nominees) Limited                                 3,168,400                5.78
JP Morgan Australia Limited                                         2,980,689                5.44
Barclays Capital Nominees (No3) Ltd                                 2,741,900                5.00
Credit Suisse Securities (Europe) Limited                           2,715,018                4.95
Apollo Nominees Ltd                                                 1,473,366                2.69
Harewood Nominees Limited                                           1,377,100                2.51
D Stammer                                                           1,097,500                2.00
D Farrands                                                          1,006,607                1.84
Citicorp Nominees Pty Limited                                        955,075                 1.74
ANZ Nominees Limited                                                 872,480                 1.59
Westpac Custodian Nominees Limited                                   857,573                 1.56
Mellon Nominees (UK) Limited                                         856,600                 1.56
RBC Dexia Investor Services Australia Nominees Pty Limited           710,987                 1.30
Chase Nominees Limited                                               645,500                 1.18
Rock (Nominees) Limited                                              360,000                 0.66
Equity Trustees Limited                                              357,556                 0.65



*Known associated entities have been merged for the purpose of this report.


Unquoted Securities




                                                               Number on issue        Number of holders
Number of unissued ordinary shares under options.                  462,931                    9






Substantial holders

Substantial holders in the Company are set out below:


                                                                   Number                Percentage
Bennelong Group                                                   7,830,408                 14.29
D Scaysbrook and affiliate                                        3,992,560                 7.29
National Nominees Limited                                         3,648,014                 6.66
Vidacos Nominees Limited                                          3,197,849                 5.84
Bank of New York (Nominees) Limited                               3,168,400                 5.78
JP Morgan Australia Limited                                       2,980,689                 5.44
Barclays Capital Nominees (No3) Ltd                               2,741,900                 5.00






Voting rights


Class                Rights
Ordinary Shares      On a show of hands, each member has one vote, and
                     On a poll, each member has one vote for each share the member holds.


Options              There are no voting rights.



There is currently no on-market buy-back of shares or options.




SHAREHOLDER INFORMATION



Novera Energy Limited (ASX and LSE code: NVE for ordinary shares and NVEO for
options). Daily trading information may be found at www.asx.com.au and
londonstockexchange.co.uk.



Share Registry

Please direct queries regarding holdings, certificates and other information to
the Company's share registries:



UK
Computershare Limited
The Pavilions
Bridgewater Road,
Bristol BS99 7NH
Telephone:        +44 (0) 870 703 6025
Fax:              +44 (0) 870 703 6115



Australia

Computershare Investor Services Pty Limited
Level 3 60 Carrington Street
Sydney NSW 2000
Telephone: +61 (2) 8234 5000
GPO Box 7115
Sydney 2001



Change of Address

Shareholders are requested to notify the Company's share registries in writing
immediately of any change to their registered address.



Releases and Announcements

For recent media releases, public announcements and other information, please
see the Company web site www.noveraenergy.com



Further Information

Investors seeking further information please contact Rory Quinlan, Chief
Financial Officer, at the Company's UK office:

Novera Energy Limited
30 Bedford Street,
London   WC2E 9ED



Telephone:        +44 (0) 20 7845 9720
Fax:              +44 (0) 20 7845 9721



Paste the following link into your web browser to download the PDF document 
related to this announcement: 

http://www.rns-pdf.londonstockexchange.com/rns/7343a_-2006-3-31.pdf


                      This information is provided by RNS
            The company news service from the London Stock Exchange