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Penmc PLC (PNC)

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Tuesday 27 February, 2007

Penmc PLC

Final Results

Penmc PLC
27 February 2007




PRESS RELEASE 

27 February 2007


PenMc plc

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 AUGUST 2006


Chairman's Statement

The Directors' activities have continued to be concentrated on the ongoing
pursuit of prior year disposal issues and a number of administrative matters.

Total administrative expenses incurred in the year of £55,000 (2005: £66,000)
have now been reduced to the bare minimum necessary to operate a public company.
The cash at bank at the year end together with amounts received since the end of
the financial year will finance the ongoing administrative expenses of the
Group.

The Directors have been successful in the year in recovering amounts owing
connected to the disposals of former subsidiaries over 3 years ago. The
significant remaining issue, described in note 22 to the financial statements,
is nearing conclusion and will represent an important achievement in bringing
this matter to fruition over the last 3 years. However, whilst this matter
remains outstanding, it remains a transitional period for the Group.

The Investment Strategy of the Company in the context of the current AIM rules,
approved at the Annual General Meeting of the Company last year, is as follows:

The Directors will be actively seeking to invest in a company or business that
is well positioned in a business sector with above average growth potential.
The chosen business sector is likely to be in consumer services. The Directors
have extensive experience of acquiring and managing both public and private
companies and this experience will be used to carry out due diligence,
supplemented by investigating accountants as appropriate, and to evaluate
proposed investments.

In view of the unresolved matter referred to above, the Directors have, to date,
been unable to implement the Investment Strategy. If the Company does not fulfil
this Investment Strategy by 30 March 2007, then the Company's shares will be
suspended as of 7.00 am on 2 April 2007. The Company's shares will continue to
be suspended for 6 months from this date and in the event that the strategy is
still unfulfilled after this time, the Company's listing on AIM will be
cancelled.




Laurence A Turnbull
Non-Executive Chairman




Consolidated profit and loss account
for the year ended 31 August 2006

                                                                     Year ended     Year ended
                                                            Notes     31 August      31 August
                                                                           2006           2005
                                                                          £'000          £'000


Turnover                                                                     25              2
Administrative expenses                                                     (55)           (66)
Operating loss                                                              (30)           (64)
                                                                            
Exceptional item-profit on disposal of discontinued           2              56             27
operations                                                                   


Net interest payable                                                                       
                                                                              -              -
Profit/(loss) on ordinary activities before taxation                         26            (37)
                                                                             
- Profit/(loss) after exceptional items                                      26            (37)
                                                                             
Exceptional items
- profit on disposal of discontinued operations               2             (56)           (27)
                                                                            

Loss on ordinary activities before exceptional items                        (30)           (64)
                                                                           


Tax on profit/(loss) on ordinary activities                                   -              -
                                                                            
Profit retained/(loss sustained) for the year                                26            (37)
                                                                            
Earnings/(loss) per share                                                 Pence per share
                                                                          
Basic earnings/(loss) per share                               3            0.03            (0.04)   9

Loss per share excluding exceptional items                    3           (0.03)           (0.06)   9
                                                                          



There are no recognised gains or losses other than the profit/(loss) for the
year.

The accompanying notes are an integral part of this consolidated profit and loss
account.


All operations are continuing.




Consolidated balance sheet
as at 31 August 2006




                                                                Notes             2006            2005
                                                                                 £'000           £'000
Current assets
Debtors                                                                   42               9
Investment - Loan note deposit                                            -                120
Cash at bank and in hand                                                  19               43
                                                                          61               172
Creditors: amounts falling due within one year                            (58)             (195)
Net current liabilities                                                   (3               (23)
Net assets/(liabilities)                                                  3                (23)



Capital and reserves
Called-up share capital                                                   981              981
Share premium account                                                     20,113           20,113
Profit and loss account                                                   (21,091)         (21,117)
                                                                                           
Equity shareholders' funds/(deficit)                              4       3                (23)







Consolidated cash flow statement
for the year ended 31 August 2006

                                                                 Note     2006           2005

                                                                          £'000          £'000
Net cash outflow from operating activities                         5      (43)           (52)
Returns on investment and servicing of finance
Interest paid                                                             (7)            (7)
Interest received                                                         7              7
Net cash outflow from returns on investments and servicing of
finance                                                                   -              -
Taxation                                                                  -              -
Capital expenditure and financial investment                              -              -
Net cash inflow from capital expenditure and financial
investment                                                                -              -


Acquisitions and disposals
Disposal of subsidiary undertakings                                2      19             27
Net cash inflow from disposal of subsidiary undertakings                  19             27
Decrease in cash in the year                                              (24)           (25)




Notes

1 Basis of preparation

This preliminary announcement contains information extracted from the audited
financial statements of the Company and the Group for the year ended 31 August
2006. Those financial statements have been prepared on the basis of the
accounting policies set out in the Group's 2005 statutory accounts.


2 Exceptional items

Exceptional items related to adjustments to consideration in respect of the sale
of subsidiary companies in the previous financial years and are shown in the
table below:



                                                                      2006               2005
                                                                      £'000              £'000
Profit relating to disposals in prior year                            (56)               (27)
                                                                      (56)               (27)



3 Earnings/(loss) per share

The calculations of earnings/(loss) per share based on the following profits/ 2006          2005
(losses) and numbers of shares:
                                                                              £'000         £'000

Profit/(loss) on ordinary activities after taxation                           26            (37)

Exceptional items
- profit on disposal of discontinued operations                               (56)          (27)

Loss before exceptional items                                                 (30)          (64)



                                                                              Number        Number
Weighted average number of shares                                             98,147,196    98,147,196


For diluted earnings/(loss) per share                                         98,147,196    98,147,196




                                                                            Pence per     Pence per
                                                                            share         Share
Basic                                                                       0.03          (0.04)

Loss per share excluding exceptional items                                  (0.03)        (0.06)

Diluted                                                                     0.03          (0.04)



The directors have presented alternative earnings per share figures to give a
better indication of the long-term results of the business. FRS22 requires
presentation of diluted earnings per share when a company could be called upon
to issue shares that would decrease net profit or increase net loss per share.
Since it seems inappropriate to assume that option and warrant holders would act
irrationally, no adjustment has been made to diluted earnings/(loss) per share
for out-of-the-money share options and warrants. As there is no potential
dilution, the basic and diluted (loss)/earnings per share figures are the same.


4 Reconciliation of movements in group equity shareholders' funds/(deficit)


                                                                         2006            2005

                                                                         £'000           £'000
Profit/(loss) for the year                                               26              (37)
Net increase/(reduction) in equity shareholders' funds                   26              (37)
Opening equity shareholders' (deficit)/funds                             (23)            14
Closing equity shareholders' funds/(deficit)                             3               (23)





5 Reconciliation of operating loss to operating cash flows
                                                                         2006            2005
                                                                         £'000           £'000
Operating loss                                                           (30)            (64)

Decrease in debtors                                                      4               19

Decrease in creditors                                                    (17)            (7)

Net cash outflow from operating activities                               (43)            (52)



6 Analysis and reconciliation of net funds


                                                   At 1 September    Cash flow          At 31 August 
                                                   2005                                 2006                            
    
                                                   £'000             £'000              £'000
                                                                     


Cash at bank and in hand                           43                (24)               19
                                                           43
Investment - loan note deposit                     120               (120)              -
Loan notes due within one year                     (120)             120                -
Net funds                                          43                (24)               19




7         Report and Accounts

The Report and Accounts of the Company and the Group for the year ended 31
August 2006 will be sent to shareholders shortly and will be available from the
Company Secretary at the registered office; Barton Hall, Peel Green, Manchester,
M30 7NB.





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