Information  X 
Enter a valid email address

D1 Oils Plc (NEOS)

  Print      Mail a friend       Annual reports

Wednesday 28 March, 2007

D1 Oils Plc

Final Results

D1 Oils Plc
28 March 2007


                                  D1 Oils plc


28 March 2007


            Preliminary Results for the Year Ended 31 December 2006


D1 Oils plc, the UK-based global producer of biodiesel, today announces its
preliminary results for the year ended 31 December 2006.


                             Operational Highlights


   • Key strategic milestones achieved:

       o  Significant progress made in developing higher yielding seeds

       o  Planting programme on schedule: 145,000 hectares to date

       o  First UK refining site in commercial operation on Teesside

       o  Second site acquired for refining expansion on Merseyside

       o  Jatropha oil processed to European standards for the first time

       o  First offtake deal signed and first deliveries of biodiesel achieved

   •  Business fully funded by £49.2m placing completed in December


                                    Strategy

   •  D1 aims to be a global leader in low-cost inedible feedstock production
      and biodiesel processing
   •  Strategy based on producing feedstocks that do not compete with food
      production and which can be grown sustainably on marginal land
   •  D1 is investing in:

        o  research and development to bring jatropha to higher-yield 
           commercial production

        o  jatropha planting footprint

        o  technology and infrastructure for pre-processing and refining

   •  The purpose of our combined upstream and downstream strategies is to
      deliver low-cost biodiesel production


Commenting on the results, Elliott Mannis, Chief Executive Officer, said:

'Business delivery in agronomy, refining and trading is on track, with a
planting footprint of 145,000 hectares as of mid-March, and good progress on
refining. Our strategy is to produce inedible oil sustainably from jatropha 
for low-cost production of biodiesel. We believe this sets us apart and
gives us a distinct competitive advantage.

Rising prices for edible oil and the reduction in crude prices have meant a
significant reduction in margins for the UK biofuels industry. Whilst this is an
issue, it is also a validation of our strategy of focusing on low-cost,
long-term supplies of inedible feedstock.'


Lord Oxburgh of Liverpool, Non-Executive Chairman, added:

'The Company's strategy to create a vertically integrated business to develop 
non-food oils for the biodiesel industry is hugely important. D1 is working to
ensure that the infrastructure is in place to deliver jatropha oil into the UK
during 2008.'


Contacts

D1 Oils:
Graham Prince, Head of Corporate Communications
Tel: +44 (0) 1642 755580
Mobile: +44 (0) 7973 323840


Brunswick Group:
Kevin Byram
Mark Antelme
Tel: +44 (0) 20 7404 5959


An interview with Elliott Mannis, Chief Executive Officer, is now available in
video/audio and text at www.d1plc.com and at www.cantos.com


Notes to Editors

D1 Oils plc is a UK-based global producer of biodiesel. We are building a global
supply chain and network that is sustainable and delivers value from
'earth-to-engine'. Our operations cover agronomy, refining and trading. We are
pioneering the science, planting and production of inedible vegetable oils; we
design, build, own, operate and market biodiesel refineries; and we source,
transport and trade seeds and seedlings, seedcake, crude vegetable oils and
biodiesel.

                       Report of the Chairman and of the
                            Chief Executive Officer

We are pleased to report to shareholders our preliminary results for the year
ended 31 December 2006, the second full year of D1's operation as a public
company. This is our first joint report on the progress of the business since
Lord Oxburgh of Liverpool became Non-Executive Chairman.

These preliminary results were approved by the Board of Directors of D1 Oils plc
on 27 March 2007.

The year 2006 was one of substantial achievement across the business. At the
start of the year we had only just begun planting jatropha, and our refinery
technology was not yet in commercial manufacture. One year on we believe we are
an established global leader in the scientific and commercial development of
jatropha, and we have achieved significant planting worldwide. Our refinery
technology is in commercial operation in Teesside, with further capacity
expansion underway on Merseyside. A successful placing in December raised £49.2m
to fully fund the business. Over the past twelve months we believe we have built
the foundations of a business that will deliver supplies of sustainable,
inedible oils for biodiesel production.


Operations

2006 began with the January appointment of Elliott Mannis as Chief Executive
Officer and the subsequent redefinition of our organisation and future strategy
around the three core business activities of agronomy, refining and trading.
With our direction and purpose set, we were able to achieve significant progress
throughout the business.

In agronomy, together with our partners, we have a substantial jatropha planting
footprint across our three operational regions of Southern Africa, India and
South East Asia. By the end of 2006 we had planted or obtained rights to offtake
from a total of over 124,000 hectares. As of mid March 2007 we have increased
this to over 145,000 hectares and we fully expect this total to exceed 150,000
by the end of the month. Under our jatropha plant science programme we have
begun trials of our first selections of jatropha material collected from around
the world during 2006. We are now producing our first selected E1 elite material
with increased oil yields for planting in 2008.

In refining, we brought our first biodiesel refineries in the UK into beneficial
operation, creating a total capacity of 32,000 tonnes at our Teesside site.
During January 2007 we completed the acquisition of a second refining and
distribution site at Bromborough on Merseyside, which we anticipate will enable
us to add a further 100,000 tonnes of capacity by the end of 2007. We also
succeeded in processing crude jatropha oil into European standard biodiesel in
March 2006.

In trading, we began the development of a global supply chain to support our
agronomy and refining operations. Having received the first volume shipments of
soya oil in the middle of 2006, we signed our first offtake deal with Petroplus
for supply of soya biodiesel in October and deliveries under contract were made
during the year.

In December we completed a successful fundraising and delivered £49.2m before
expenses, despite challenging market conditions. The funds raised will enable us
to maintain our growth and development.

On 1 February 2007 the Board stated that it was continuing negotiations begun in
2006 with certain parties. Negotiations with one of these parties continue. A
non-binding Memorandum of Understanding regarding a strategic collaboration has
been agreed and a further announcement will follow in due course.


Finances

During the year we raised additional funding of £49.2m gross (£46.2m net of
expenses). Net cash at 31 December was £48.2m. The loss for the year was £12.6m
and reflects continuing investment for future growth.


Management

Subsequent to the year end, Karl Watkin, a founder of the Company, stood down as
Chairman to be replaced by Lord Oxburgh of Liverpool, who joined the Board in
September 2006. Karl Watkin remains with the Company as a Non-Executive
Director. Peter Campbell, also a founder director, will step down from the Board
as of 31 March 2007. We would like to thank both for everything they have
contributed to the business.


Outlook

Transport energy policies across the globe are now increasingly driven by the
challenges of climate change and fuel security. We believe biofuels, and in
particular biodiesel, offer a means to secure cost-effective supplies of
sustainable transport fuel in the medium-term. Biofuels are increasingly
supported by national and regional policy initiatives. The European Union has
set a minimum biofuels blend target of 10% by 2020. In the UK a mandatory
biodiesel blend will be phased in progressively under the Renewable Transport
Fuels Obligation (RTFO).

Meeting UK and European demand without recourse to imported feedstocks is
increasingly challenging. The short-term impact of lower diesel prices and
increased food-grade feedstock costs is now significantly impacting industry
margins, and we believe it prudent to plan for edible vegetable oil prices
remaining relatively high for the foreseeable future. Having protected our
margins by securing supplies of soya at significantly lower prices earlier in
2006, we are exploring alternative avenues to meet our offtake commitments.

We believe this situation validates our strategy to develop supplies of
alternative, inedible oils like jatropha that are not subject to the same demand
pressures as food oils. It is our objective to land crude jatropha oil in the UK
at a target price that is very competitive with the cheaper food-grade
alternatives and to be able to refine it profitably without government subsidy
or support. We expect our first supplies of jatropha oil during 2008.

Our goal is to concentrate on planting and offtake relationships that can
deliver supplies of jatropha oil in commercial volumes, and to develop the range
of logistics capabilities to bring that oil to market, both in producing regions
and in developed markets including the UK and continental Europe. The Board is
confident that our global team is well placed to realise this goal. On behalf of
the Board we would like to take this opportunity to thank our executive
management, our business teams, and our partners and advisors for their hard
work and support over the year.


Operations Section


Agronomy - Plant Science and Planting

During 2006 we continued to build on our first-mover advantage in jatropha. We
believe we have developed our research and planting programmes such that we have
a leading position in the development of jatropha as a commercial energy crop.
Jatropha and other inedible oil crops have not seen the development in terms of
yields and growing techniques that crops for human consumption have undergone.
Application of the latest agronomy techniques will enable the development of the
most promising uncultivated varieties of jatropha into progressively
higher-yielding industrialised crops. This has already been accomplished
successfully with food crops, such as rice, canola, soya and palm.

We believe that developing and securing supplies of alternative, inedible oils
like jatropha is important to the future of the biodiesel industry. Inedible oil
crops are a viable alternative source of biodiesel because they are not subject
to the additional demand pressures of food use and do not require the same
quality of land as food crops. Given the increasing concern about the impact of
soya and palm production on vulnerable rainforest habitats, the development of
inedible oil crops that can take advantage of marginal land is pressing.
Further, the pricing of inedible oil crops should be directly correlated to the
price of crude oil. This is not the case for food crops due to the demand
pressures from the food industry.


Plant Science

Our plant science programme has gathered a sufficiently wide range of jatropha
material to support the first ever commercial breeding and product placement
trials for this crop. We have now collected more than 200 accessions of jatropha
from three different continents and over twenty countries. Using extensive field
and laboratory data gathered from this material, we have established a
structured breeding process and a global trials network to identify which
individual jatropha cultivars are best adapted to the different cultivation
zones in our target planting areas. We are developing our breeding programme to
create the first cultivars of jatropha. These will be the basis for future
selection of high-yielding jatropha varieties.

The infrastructure to support our plant science and product development
activities is expanding. In addition to our existing Regional Development Centre
(RDC) at Coimbatore in Tamil Nadu, India, we have established a new RDC in
Swaziland and will open a further centre in South East Asia shortly. We intend
to establish a global jatropha breeding centre in West Africa and to open
Country Development Centres (CDCs) everywhere we operate.

The first commercial outcome of the plant science programme is our 'E1' seed
material, selected for higher yield and good biodiesel profile. We expect this
seed will deliver oil yields of 2.7 tonnes per hectare under properly managed
conditions when the trees attain maturity. Expected E1 yields compare favourably
with yields from crops that have already experienced considerable development,
for example soya (c.0.4 tonnes per hectare) and rapeseed (c.1.0 tonnes per
hectare). E1 seed multiplication is already underway in Southern Africa, India
and South East Asia, and we expect to be able to plant out up to 50,000 hectares
with this material in 2008. Further elite selections are already in preparation
for future planting. We anticipate that the development of these new selections
will continue to deliver higher yields in line with the improvements made in
other commercial crops. In the longer term we believe yields for jatropha have
the potential to approach those of palm (c.4-5 tonnes per hectare).

We are further developing techniques to improve the speed, efficiency and
quality of multiplication of selected material. To further ensure the quality of
our supply chain we have established different oil testing platforms. We have
also commenced a programme to develop jatropha seedcake via detoxification for
use as an alternative high-value animal feed protein source.

In cooperation with joint venture partners and farmers we are introducing a
stewardship programme to seek to ensure the sustainable production of jatropha
oil. This Sustainable Oil Supply Programme (SOSP) will use training, farming
manuals and on-farm demonstrations to enable higher-yield production from
planting. As the programme develops we will be able to report on forecast oil
quantities in addition to hectares planted. The SOSP will also encompass the
development of technology for harvesting, expelling and logistics support, and
the implementation of policies for social, economic and environmental
sustainability of jatropha production.

In addition to focusing on jatropha, we are now investigating several other
inedible oil crops. We aim to obtain modest quantities of these oils under
offtake agreements this year for analysis.


Planting Programme

As of 16 March 2007, D1 has planted or obtained rights to offtake from a total
of over 145,000 hectares of jatropha worldwide and we expect this total to
exceed 150,000 by the end of March. The table below summarises the position as
at 16 March:

Hectares               Managed   Contract     Seed purchase and oil      Total
                   plantations    farming         supply agreements

India    South              -       7,984                         -      7,984
         North              -       8,300                     2,000     10,300
         East
         Rest               -       5,093                    22,924     28,017

         Total              -      21,377                    24,924     46,301

Africa   Swaziland      1,127           -                     6,867      7,994
         Zambia         2,161      17,316                         -     19,477
         Rest               -           -                     5,028      5,028

         Total          3,288      17,316                    11,895     32,499

South    China              -           -                    28,000     28,000
East
Asia     Indonesia          -      29,141                         -     29,141
         Rest               -       4,780                     4,904      9,684

         Total              -      33,921                    32,904     66,825

Total                   3,288      72,614                    69,723    145,625


Certain of the figures in this table have been reclassified to reflect more
appropriately the nature of the underlying planting relationships.

The table above indicates the broad geographic locations and types of
arrangements associated with jatropha planting worldwide in which D1 has an
interest. The level of investment costs and security of future oil supply are
proportional to the degree of direct involvement by D1 and its joint venture
partners.

Managed plantations are those farms where land and labour is controlled by D1,
either through its subsidiaries or joint venture partners. Under contract
farming, the farmer plants his own trees on his own land. D1 and its partners
assist with the provision of seedlings and the arrangement of bank finance for
planting, and offer a buyback of harvested seeds with an offtake agreement,
subject to a floor price and the achievement of agreed quality standards. We
provide support and advice during cultivation, and monitor the condition of the
crops.

Seed and oil supply agreements are arms-length supply contracts with third
parties whereby D1, either directly or through joint venture partners, has
offtake arrangements in place over future output from jatropha plantations which
the third party is developing. D1 has limited involvement in this planting and
relies on third parties to measure and manage the crop effectively.

In Southern Africa, planting has picked up significant pace in Swaziland and
Zambia, and we expect these areas to be the principal deliverers of new planting
in March, April and May. In India our joint venture with Williamson Magor, the
tea producer, has significantly expanded planting of jatropha during the year.
South East Asia saw rapid growth in planting and offtake agreements during 2006.
We have added depth to our management teams across the region to consolidate and
develop the network of new relationships from our regional head office in
Singapore.

Given the scale and rapid pace of the planting undertaken in 2006, all of which
was undertaken with wild seed, we expect to see variations in the quantity of
oil produced from that planting. We believe that well-maintained planting with
wild seed has the potential to achieve yields of up to 1.7 tonnes of oil per
hectare after 5-6 years when the trees are mature. However, some planting,
particularly that carried out by third parties with lower levels of agronomy
expertise, may not achieve these yield levels. Our challenge is to ensure that
we focus effort on the best areas in terms of climate patterns, soil quality and
logistics to achieve high yields and bring oil to market. This is one of the key
stewardship objectives of our SOSP.

D1 is developing a methodology to estimate future oil volumes that may be
expected to be generated from all current planting and future planting and this
data will be disclosed as soon as it is available.

We expect the first harvests from 2006 planting in 2008. The harvested grain
will be crushed to produce crude jatropha oil. We have constructed a prototype
expeller at our RDC in Coimbatore, Tamil Nadu, which is capable of crushing a
tonne of grain per day. This will be the start point for our first end-to-end
supply chain test to take jatropha grain through a local crushing process and on
to pre-processing and refining in the UK. The development of our capability to
bring oil to market in advance of jatropha coming on stream is therefore among
the most important management tasks for 2007.


Refining - Capacity and Production


Capacity

During 2006 we successfully commissioned our first four UK refinery units at our
site in Middlesbrough. The first four D1 20 units give the site an interim total
production capacity of 32,000 tonnes per annum. The speed with which we put this
new capacity in place reflects the strengths of the D1 modular technology and
our growing technical capabilities in refinery process technology and
engineering. In March 2006 we successfully processed jatropha oil to EN14214
standard, confirming the crop's potential as a refining feedstock.

We announced our intention to acquire a new refinery and distribution site at
Bromborough on Merseyside in September  2006 and completed the acquisition in
January 2007. By converting existing facilities at the site, which formerly 
produced fuel and lubricant additives, we intend to add 100,000 tonnes of new
refining capacity in 2007. The site has  sufficient area and facilities to
expand production significantly, and the existing infrastructure will also
support  the installation of pre-treatment facilities. We intend to commence
volume processing of crude jatropha vegetable oil  in 2008. We also expect to
earn ancillary revenues through letting site assets not required for biodiesel
production,  for example warehouse space, to third parties.

Internationally, we expect that approximately half of the vegetable oil we
harvest from jatropha planting in developing  countries will be refined and used
locally, with the balance exported. We expect to deploy our modular D1 20
refineries  into our regional operations in combinations of the same semi-
permanent clusters of four that we are currently  operating on Teesside. In
addition to utilising our proprietary refining technology we are also open to
overseas  expansion of our refining activities via either the acquisition of
existing plant for conversion, or investment into  biodiesel refining projects,
either new-build or pre-existing.


Production

Since the last quarter of 2006, refining margins across the UK industry have
been affected by the combination of lower diesel prices and increased feedstock
costs. Soya prices in particular rose rapidly in the last year from US$630 per
tonne in January 2006 to US$797 per tonne on 23 March 2007. In consequence we
ran our refineries below capacity to ensure that current stocks of soya oil,
purchased at advantageous prices earlier in the year, last as long as possible.
Sales of biodiesel for the year 2006 were 3,286 tonnes in total.

Under these circumstances, as previously announced, we believe it is prudent to
extend the timetable for the full rollout of our target of 320,000 tonnes of
refining capacity from the end of 2007 until the end of 2008, after the
introduction of the RTFO. The introduction of the RTFO, increasing from a 2.5%
blend in April 2008, to 3.75% in 2009 and 5% in 2010, will be supported by a
total subsidy regime of 35ppl (pence per litre), a combination of the existing
20ppl duty reduction on biofuel and an additional buy-out price of 15ppl. This
support has been confirmed in the Budget of 21 March 2007 as continuing at least
until the fiscal year 2009/10, which we believe will enable a significant and
positive difference to margins to be achieved. We anticipate that the RTFO will
create an annual UK market for at least one million tonnes of biodiesel by 2010.
In the meantime, we are confident that, should there be a sustained return to
increased diesel prices and lower commodity prices, the refinery programme can
be accelerated to meet the increased demand that might result from the
obligation.

The current high prices for edible vegetable oils validates, we believe, our
strategy to develop and secure supplies of jatropha and other alternative,
non-food oils to meet demand. We remain confident in our target to land crude
jatropha oil in the UK at a target price that is very competitive with the
cheapest food-grade alternatives. The table below details the targeted cost of
jatropha (based on non-elite seeds) versus other feedstock vegetable oils.

Feedstock vegetable oil at current prices*                           $ per tonne

Rapeseed (RBD ex-tank UK)                                                  944

Soya (RBD ex-tank Rotterdam)                                               797

Palm olein                                                                 632

Jatropha (D1 target for non-elite seed)                                475 - 500

* Landed in Northern Europe



Trading

During 2006 we began to put the key trading functions in place to create the
global supply chain necessary to deliver crude vegetable oil feedstocks and
biodiesel. In June we received the first marine tanker shipment of soya oil for
refining and the first shipments of palm methyl ester for blending. We also
became a member of the Roundtable for Sustainable Palm Oil. The challenge for
2007 is to develop further the logistics capabilities we have in place to
deliver low-cost, volume supplies of alternative, non-food oils. We expect the
first crude jatropha oil from early harvests of planted material to be imported
to the UK during 2008, and we will use this first production to test our supply
chain capabilities.

We signed our first offtake deal with Petroplus for supply of soya biodiesel in
October 2006. The first delivery of product was made later that month.

Having secured stocks of soya at prices significantly below current levels
earlier in 2006, we actively managed stocks  consistent with producing positive
margins and meeting our contractual obligations. We are now exploring
alternative  avenues to meet our offtake commitments.

During the year we also put in place the UK component of our global trading team
with the recruitment of logistics, customer service and sales staff. We
anticipate that jatropha oil will be available for processing into biodiesel in
the UK market from 2008. During 2007 we will prepare the UK logistics elements,
including shipping, storage, and pre-processing technology, that will enable us
to complete the supply chain to deliver value from earth to engine.


Safety, Health and Environment

Jatropha is a member of the Euphorbiaceae family. In common with other crops of
this family it contains a number of natural compounds that are biologically
active. Preparations of all parts of the plant, including seeds, leaves and bark
are used for medicinal purposes. Jatropha seeds, seedcake and oil should be
handled with care. We aim to ensure that in harvesting and processing jatropha,
the exposure of individuals to biologically active compounds is kept to a
minimum by use of suitable personal protective equipment and containment
measures. D1 is actively developing the health and safety standards and
compliance surrounding the processing of jatropha meal into oil for refining
into biodiesel. With the development of large scale Jatropha processing, D1
intends to lead the development of safe handling of jatropha and its byproducts.

We are pleased to report that in our planting and processing of jatropha, and
the commissioning and operation of our refineries, we operated throughout the
year in all regions with no reportable safety, health or environmental
incidents.


Financial Review

Key financials £m                                         2006           2005
Turnover                                                   1.6            0.5
Gross operating loss                                      (0.8)             -
Distribution & admin expenses                            (12.2)          (8.7)
Loss before tax                                          (12.6)          (7.9)
Loss per share (pence)                                   39.98p         29.52p
Net cash at 31 December                                   48.2           23.4


The continued development of the business is reflected in the financial results
for the year ended 31 December 2006.

The financial results have been prepared on a basis consistent with previous
periods according to United Kingdom Generally Accepted Accounting Practices (UK
GAAP). The only exception to this is that during the period the Group adopted
FRS 20 'Share-based payments', and accordingly has recognised a charge in the
current and preceding periods equivalent to the fair value of share options in
issue. This has resulted in a current year charge of £1.135m and an increase in
the 2005 charge in relation to share-based payments of £0.47m.

Total Group turnover of £1.6m (2005: £0.5m) in the year to 31 December 2006
arose from the sale of 3,286 tonnes of biodiesel to our main offtake partner,
Petroplus. These sales, which utilised lower cost soya feedstock purchased in
the summer, generated a gross operating loss after the cost of refining of
£0.8m.

Administrative expenses of £11.1m (2005: £8.6m) reflect the ongoing development
of the business, particularly in the overseas subsidiaries. Included in this
total are spending on agronomy of £0.7m; on regional operations of £3.5m; on
business development of £1.1m; and on refinery technology and research of £0.5m.

Further investment in the technical and development teams both in agronomy and
refining have significantly strengthened these teams.

Interest received of £0.6m (2005: £0.8m) relates to cash deposits held during
the year.

The loss on ordinary activities before and after taxation was £12.6m (2005:7.9m)
and the loss per ordinary share was 39.98p (2005: 29.52p). As losses were
incurred, no corporation tax was payable.

Net cash (defined as gross cash less mortgage and cash collateral) on hand at 31
December 2006 was £48.2m (2005: £23.4m). Gross cash was £51.3m (2005: £24.2m),
the mortgage loan was £0.8m (2005: £0.8m) and cash held as collateral was £2.3m
(2005: £nil). The net inflow in the year to 31 December 2006 was £24.7m (2005:
£14.7m). The most significant element in the cash flow was the proceeds from the
share placing which was completed in December, when £49.2m was raised before
expenses of £3.0m.

During the year, significant investment was made at our Teesside site.
Investment in site infrastructure, tankage and safety equipment was £7.0m.
Investment in the build and commissioning of the four D1 20's amounts to £2.9m.
There has also been an investment of £2.9m in the working capital reflecting the
building of our stock of vegetable oils for future processing.

In November 2006 the Group secured a financing facility from Allied Irish Bank
and Investec for up to six D1 20 units totalling £5.1m.  This agreement provides
finance of £850k for each completed D1 20 unit. This facility allows an initial
cash release of 35% with further annual cash releases over a 5 year period.


CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 December 2006
                                                   Note       2006      Restated
                                                              £000        2005
                                                                          £000

Turnover: group and share of joint ventures                1,571.8       461.7
Less: Share of joint ventures                                (11.5)      (46.2)
---------------------------                  ----------    ---------  ----------
Group turnover                                             1,560.3       415.5
Cost of sales                                             (2,366.7)     (399.9)
---------------------------                  ----------    ---------  ----------
Gross (loss)/profit                                         (806.4)       15.6
Distribution Costs                                        (1,067.2)     (101.2)
Administrative expenses                                  (11,146.8)   (8,553.8)
---------------------------                  ----------    ---------  ----------
Operating loss                                      3    (13,020.4)   (8,639.4)
Share of operating losses in joint ventures                 (121.5)      (32.9)
Amortisation of goodwill arising on
acquisition of joint ventures                                 (6.3)      (18.7)
Bank interest receivable                                     566.4       764.1
Interest payable and similar charges                6        (46.9)          -
---------------------------                  ----------    ---------  ----------
Loss on ordinary activities before taxation              (12,628.7)   (7,926.9)
Tax on loss on ordinary activities                  7            -           -
---------------------------                  ----------    ---------  ----------
Retained loss for the financial year
withdrawn from reserves                           7, 19  (12,628.7)   (7,926.9)
---------------------------                  ----------    ---------  ----------
Loss per ordinary share
Basic and diluted loss per ordinary share           9        39.98p      29.52p
---------------------------                  ----------    ---------  ----------


All results derive from continuing operations.


CONSOLIDATED STATEMENT OF TOTAL RECOGNISED
GAINS AND LOSSES

For the year ended 31 December 2006

                                                 Year ended           Year ended
                                            31December 2006      31December 2005
                                                     £000                 £000
Loss for the financial year excluding 
share of loss in joint ventures.                (12,500.9)            (7,875.3)
Share of joint ventures loss for the year          (127.8)               (51.6)
                                                  ---------           ----------
Loss for the financial year attributable to
members of the parent company                   (12,628.7)            (7,926.9)
--------------------------------                  ---------           ----------
Currency translation difference on foreign 
currency net investments                           (591.6)               (29.9)
--------------------------------                  ---------           ----------
Total recognised losses relating to the year    (13,220.3)            (7,956.8)
--------------------------------                  ---------           ----------
Prior year adjustment (as explained in note 1)     (470.0)                   -
--------------------------------                  ---------           ----------
Total gains and losses recognised
since last annual report                        (13,690.3)                   -
--------------------------------                  ---------           ----------



CONSOLIDATED BALANCE SHEET
As at 31 December 2006

                                    Note        31December            Restated
                                                      2006     31December 2005
                                                      £000                £000
Fixed assets
Intangible assets                   10                60.6                64.1
Tangible assets                     11            14,676.3             4,170.0
Other investments                   12                18.2                14.0
---------------------------   ----------           ---------          ----------
                                                  14,755.1             4,248.1
 ---------------------------  ----------           ---------          ----------
Current assets
Debtors:
amounts falling due after one year  13               948.9                50.0
amounts falling due within one year 13               898.3               675.3
---------------------------   ----------           ---------          ----------
                                    13             1,847.2               725.3
Raw material stock                                 3,065.2               126.3
Deposits                                           2,317.3                   -
Cash at bank and in hand                          49,024.4            24,281.4
---------------------------   ----------           ---------          ----------
                                                  56,254.1            25,133.0
 ---------------------------  ----------           ---------          ----------
Creditors: amounts falling
due within one year                 14            (5,685.1)           (1,823.2)
---------------------------   ----------           ---------          ----------
Net current assets                                50,569.0            23,309.8
---------------------------   ----------           ---------          ----------
Total assets less current
liabilities                                       65,324.1            27,557.9
Creditors: amounts falling
due after more than one year        15            (3,533.5)             (840.0)
Provisions for liabilities:
Share of gross assets in
joint ventures                      12               480.0                75.0
Share of gross liabilities
in joint ventures                   12              (634.6)              (96.0)
Share of net liabilities
in associate                        12                   -                (5.6)
---------------------------   ----------           ---------          ----------
                                                    (154.6)              (26.6)
 ---------------------------  ----------           ---------          ----------
Net assets                                        61,636.0            26,691.3
---------------------------   ----------           ---------          ----------
Capital and reserves
Share capital                       18               614.8               312.3
Share premium                       19            83,832.2            37,104.7
Merger reserve                      19               437.7               437.7
Own shares held                     19              (484.0)             (484.0)
Profit and loss account             19           (22,764.7)          (10,679.4)
---------------------------   ----------           ---------          ----------
Total equity shareholders' funds                  61,636.0            26,691.3
---------------------------   ----------           ---------          ----------


This preliminary announcement was approved by the Board of Directors on 27 March
2007.


Lord Oxburgh of Liverpool                               R K Gudgeon
Chairman                                                Group Finance Director



COMPANY BALANCE SHEET
As at 31 December 2006

                                         Note  31December 2006  31December 2005
                                                        £000             £000
Fixed assets Investments                 12            143.2            139.0
---------------------------        ----------        ---------       ----------
Current assets
Debtors                                  13         33,160.9         11,716.6
Deposits                                             2,317.3
---------------------------        ----------        ---------       ----------
Cash at bank and in hand                            46,252.0         23,685.8
---------------------------        ----------        ---------       ----------
                                                    81,730.2         35,402.4
Creditors: amounts falling due
within one year                          14         (1,329.8)          (388.4)
---------------------------        ----------        ---------       ----------
Net current assets                                  80,400.4         35,014.0
---------------------------        ----------        ---------       ----------
Total assets less current
liabilities                                         80,543.6         35,153.0
---------------------------        ----------        ---------       ----------
Net assets                                          80,543.6         35,153.0
---------------------------        ----------        ---------       ----------

Capital and reserves
Called up share capital                  18            614.8            312.3
Share premium                            19         83,832.2         37,104.7
Own shares held                          19           (484.0)          (484.0)
Profit and loss account                  19         (3,419.4)        (1,780.0)
---------------------------        ----------        ---------       ----------
Total equity shareholders' funds                    80,543.6         35,153.0
---------------------------        ----------        ---------       ----------




CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2006

                                    Note         Year ended          Year ended
                                            31December 2006     31December 2005
                                                       £000                £000
Net cash outflow from operating
activities                             i         (12,287.7)           (7,747.2)
Return on investments and servicing
of finance                            ii             519.5               764.1
Capital expenditure and financial
investment                            ii         (13,863.8)           (3,445.0)
Acquisitions                          ii                 -               (25.0)
---------------------------   ----------           ---------          ----------
Cash outflow before financing                    (25,632.0)          (10,453.1)
Financing                             ii          50,375.0            25,172.1
---------------------------   ----------           ---------          ----------
Increase in cash in the
period                           iii, iv          24,743.0            14,719.0
---------------------------   ----------           ---------          ----------

The consolidated cash flow statement should be read in conjunction with the
notes to the consolidated cash flow statement on pages 20 and 21.


NOTES TO THE CASH FLOW STATEMENT
For the year ended 31 December 2006


i)   RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING
     ACTIVITIES

                                             Year ended            Year ended
                                        31December 2006       31December 2005
                                                   £000                  £000

Operating loss                                (13,021.2)             (8,639.4)
Depreciation on tangible fixed assets             367.6                  92.1
Loss on disposal of fixed assets                   17.7                     -
Amortisation of goodwill                            3.5                   3.5
(Increase)/decrease in debtors                 (1,062.1)               (646.0)
Increase/(decrease) in creditors                3,210.8                 988.9
(Increase)/decrease in Stock                   (2,939.0)               (126.3)
FRS 20                                          1,135.0                 580.0
----------------------------                    ---------            ----------
Net cash outflow from operating
activities                                    (12,287.7)             (7,747.2)
----------------------------                    ---------            ----------

ii) GROSS CASH FLOWS
                                                   Year ended       Year ended
                                                  31 December      31 December 
                                                         2006             2005
                                                         £000             £000
Returns on investment and servicing of finance
Bank interest
received                                                566.4            764.1
Bank interest paid                                       (0.9)
Interest element of
finance leases                                          (46.0)               -
------------------------------                         --------       ----------
                                                        519.5            764.1
------------------------------                         --------       ----------

Capital expenditure and financial investment
Payments to acquire tangible fixed assets           (11,542.3)        (3,461.2)
Proceeds on disposal of leased assets                       -             30.2
Funds transferred to Deposits                        (2,317.3)               -
Purchase of trade investments                            (4.2)           (14.0)
------------------------------                         --------       ----------
                                                    (13,863.8)        (3,445.0)
------------------------------                         --------       ----------

Acquisitions
Payment to acquire share of associated
company                                                     -            (25.0)
------------------------------                         --------       ----------
Financing
Issue of ordinary share capital                      50,035.2         25,791.2
Costs of raising finance                             (3,005.2)        (1,397.5)
Purchase of own shares                                      -         (3,479.9)
Proceeds on disposal of own shares                          -          3,462.0
Capital element of finance lease                        (55.0)           (43.7)
Mortgage                                                    -            840.0
Proceeds from financing D1 20 units                   3,400.0                -
------------------------------                         --------       ----------
                                                     50,375.0         25,172.1
------------------------------                         --------       ----------



iii) RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

                                             Year ended             Year ended
                                       31 December 2006       31 December 2005
                                                   £000                   £000

Increase in cash in the year                   24,743.0               14,719.0
Cash flow from movement in debt and
lease financing                                    55.0                 (796.3)
---------------------------                     ---------             ----------
Change in net funds resulting from cash
flows                                          24,798.0               13,922.7
New finance leases                             (3,400.0)                     -
Other loans                                       (12.8)                     -
---------------------------                     ---------             ----------
Increase in net funds in year                  21,385.2               13,922.7
Net funds at 1 January                         23,441.4                9,518.7
---------------------------                     ---------             ----------
Net funds at 31 December                       44,826.6               23,441.4
---------------------------                     ---------             ----------



iv) ANALYSIS OF CHANGES IN NET FUNDS

                         At 1 January  Cash flows  Other non-cash  At 31December
                                 2006                     changes           2006
                               £000        £000            £000           £000
Cash at bank
and in hand                24,281.4    24,743.0               -       49,024.4
Long term loans              (840.0)          -               -         (840.0)
Finance leases                    -    (3,345.0)              -       (3,345.0)
Other loans                       -       (12.8)              -          (12.8)
----------------------       --------     -------        --------    -----------
                           23,441.4    21,385.2               -       44,826.6
----------------------       --------     -------        --------    -----------



v) Deposits

Deposits represents amounts of £2,317.3k (2005: £nil) charged to Allied Irish
Bank as cash collateral for part of the finance lease creditor. The bank account
is held in the name of D1 Oils plc.



NOTES TO THE PRELIMINARY STATEMENTS
For the year ended 31 December 2006


1. ACCOUNTING POLICIES


The principal accounting policies adopted are described below.

Basis of preparation


The group financial statements consolidate the financial statements of the
company and its subsidiary undertakings as at 31 December 2006. No profit and
loss account is presented for D1Oils plc as permitted by section 230 of the
Companies Act 1985.


Accounting convention

The financial statements are prepared under the historical cost convention. The
financial statements are prepared in accordance with United Kingdom applicable
accounting standards.


All acquisitions are accounted for under the acquisition method. Positive
goodwill arising on acquisitions is capitalised, classified as an asset on the
balance sheet and amortised on a straight line basis over its useful economic
life up to a presumed maximum of 20 years. It is reviewed for impairment at the
end of the first full financial year following the acquisition and in other
periods if events or changes in circumstances indicate that the carrying value
may not be recoverable.


New Accounting Policies

Share-based payments:

In preparing the financial statements for the current year, the Group has
adopted FRS 20 'share-based payment'. The adoption of FRS 20 has resulted in a
change in accounting policy for share based-payment transactions. FRS 20
requires the fair value of options and share awards which ultimately vest to be
charged to the profit and loss account over the vesting or performance period.
For equity-settled transactions the fair value is determined at the date of the
grant using an appropriate pricing model. For cash-settled transactions fair
value is established initially at the grant date and at each balance sheet date
thereafter until the awards are settled. If an award fails to vest as the result
of certain types of performance condition not being satisfied, the charge to the
income statement will be adjusted to reflect this.

At each balance sheet date before vesting, the cumulative expense is calculated,
representing the extent to which the vesting period has expired and management's
best estimate of the achievement or otherwise of non-market conditions and the
number of equity instruments that will ultimately vest. The movement in
cumulative expense since the previous balance sheet date is recognised in the
income statement, with a corresponding entry in equity.

Where the terms of an equity-settled award are modified or a new award is
designated as replacing a cancelled or settled award, the cost based on the
original award terms continues to be recognised over the remainder of the new
vesting period. In addition, an expense is recognised over the remainder of the
new vesting period for the incremental fair value of any modification, based on
the difference between the fair value of the original award and the fair value
of the modified award, both as measured on the date of the modification. No
reduction is recognised if this difference is negative.

Where an equity-settled award is cancelled, it is treated as if it had vested on
the date of cancellation, and any cost not yet recognised in the income
statement for the award is expensed immediately. Any compensation paid up to the
fair value of the award at the cancellation or settlement date is deducted from
equity, with any excess over fair value being treated as an expense in the
income statement.

The group has taken advantage of the transitional provisions of FRS 20 in
respect equity settled awards so as to apply FRS 20 only to those equity-settled
awards granted after 7 November 2002 that had not vested before 1 January 2006.

Previously, the group applied the provisions of UITF 17, under which the cost of
these awards were accrued over the performance period of each plan based on the
intrinsic value of equity settled awards or the estimated cost of cash-settled
awards, and an adjustment was made to the latter to reflect the actual cost
incurred. Consequently the shares to be issued reserve, in both the group and
company balance sheets has been reduced by £110,000 as at 31 December 2005.
Additional staff costs of £1,135,000 (2005: £470,000) have been recognised in
the profit and loss account and the balance sheet respectively.


Cost of sales:

In 2005, the group included distribution costs within cost of sales. In order to
more accurately present the cost of sales and gross margin the group has
disclosed these costs separate from cost of sales within distribution costs in
the profit and loss account. This has resulted in a restatement of the prior
years cost of sales figure, which has reduced by £101.2k, and an increase in
distribution costs by the same amount.


Existing Accounting Policies

The following policies have been applied consistently throughout the year and
the preceding year.


Turnover:

Turnover represents amounts receivable for goods and services provided in the
normal course of business,

net of trade discounts, VAT and other sales related taxes.


Stock:

Stocks are stated at the lower of cost or net realisable value. Stock, including
seeds and seedlings, also reflects the cost of direct labour and attributable
overheads. Net realisable value is based on estimated selling price, less other
costs expected to be incurred to completion and disposal. Provision is made for
obsolete, slow-moving or defective items as appropriate.


Joint Ventures:

Entities in which the group holds an interest on a long term basis, and which
are jointly controlled by the Group with one or more other parties under a
contractual agreement, are treated as joint ventures and are accounted for using
the gross equity method. The consolidated profit and loss account includes the
group's share of joint ventures profits less losses while the group's share of
both the gross assets and the gross liabilities of the joint ventures are shown
in the consolidated balance sheet. Goodwill arising on the acquisition of joint
ventures, representing any excess of the fair value of the share of identifiable
assets and liabilities acquired, is capitalised and written off on a straight
line basis over its useful economic life of 20 years. Any unamortised balance of
goodwill is included in the carrying value of the investment in joint ventures.

The carrying value of investments in Joint Ventures is reviewed for impairment
when events or changes in circumstances indicate the carrying value may not be
recoverable.


Associates:

In the group financial statements investments in associates are accounted for
using the equity method. The consolidated profit and loss account includes the
group's share of associates' profits less losses while the group's share of the
net assets of the associates is shown in the consolidated balance sheet.
Goodwill arising on the acquisition of associates, representing any excess of
the fair value of the share of identifiable assets and liabilities acquired, is
capitalised and written off on a straight line basis over its useful economic
life of 20 years. Any unamortised balance of goodwill is included in the
carrying value of the investment in associates.

The carrying value of investments in Associates is reviewed for impairment when
events or changes in circumstances indicate the carrying value may not be
recoverable.


Investments:

Investments held as fixed assets are stated at cost less provision for any
impairment.

Tangible fixed assets and depreciation:


Depreciation on fixed assets is calculated to write off their cost, less
estimated residual value, over their expected useful lives at the following
annual rates using the straight line method.
Freehold land                                         not depreciated
Buildings                                             20 years
Plantations                                           30 years
Plant and machinery                                   3 - 10 years
Motor vehicles                                        3 - 5 years
Fixtures, fittings and equipment                      3 - 5 years


The carrying value of tangible fixed assets is reviewed for impairment when
events or changes in circumstances indicate the carrying value may not be
recoverable.


Plantations

The group's activities include the preparation of previously untreated ground
and the planting of jatropha seeds and seedlings and subsequent cultivation.
Once mature the jatropha trees bear seeds that contain crude jatropha oil. This
crude oil can be refined to produce bio diesel. The direct costs of site
preparation and planting seedlings and cultivation to the point at which the
trees are mature and producing seeds, are capitalised and amortised over the
useful life of the trees, which is on average 30 years


Foreign currencies:

Monetary assets and liabilities denominated in overseas currencies are
translated into sterling at the rate of exchange ruling at the balance sheet
date. Individual transactions are translated at the rate of exchange ruling on
the date of transaction. All exchange differences are taken to the profit and
loss account, except for those relating to foreign currency loans, to the extent
they are used to finance foreign currency investments, which are taken directly
to reserves together with the exchange difference on the carrying amount of the
related investment.

The results of overseas operations are translated at the closing rates of
exchange during the period and their balance sheets at the rates ruling at the
balance sheet date. Exchange differences arising on translation of the opening
net assets and on foreign currency borrowings, to the extent that they hedge the
group's investment in such operations, are reported in the statement of total
recognised gains and losses.


Current tax:

Current tax, including UK corporation tax and foreign tax, is provided at
amounts expected to be paid (or recovered) using the tax rates and laws that
have been enacted or substantively enacted by the balance sheet date.


Deferred taxation:

Deferred taxation is provided in full on timing differences that result in an
obligation at the balance sheet date to pay more tax, or a right to pay less
tax, at rates expected to apply when they crystallise based on current tax rates
and law. Timing differences arise from the inclusion of items of income and
expenditure in taxation computations in periods different from those in which
they are included in financial statements.

Deferred tax assets are recognised only to the extent that the directors
consider it is more likely than not that there will be suitable taxable profits
from which the future reversal of the underlying timing differences can be
deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are
expected to apply in the periods in which timing differences reverse, based on
tax rates and laws enacted or substantially enacted at the balance sheet date.


Finance leases and hire purchase contracts:

Assets held under finance leases and hire purchase contracts are capitalised at
their fair value on the inception of the leases and depreciated over the shorter
of the term of the lease, and the estimated useful economic lives of the assets.
The finance charges are allocated over the period of the lease in proportion to
the capital amount outstanding and are charged to the profit and loss account.
Operating lease rentals are charged to profit and loss in equal annual amounts
over the lease term.


Research and development:

Research and development expenditure is charged to the profit and loss account
as incurred.


2. SEGMENTAL INFORMATION

The group operates a vertically integrated business, in those areas of the world
where the group is represented. A geographical split of the business is as
follows:

                    United Kingdom     Africa  Asia Pacific    India       Group
                            £000       £000          £000     £000        £000
Turnover:
Year ended 31
December 2006                  
Group and
share of joint
ventures                 1,570.1          -           1.7        -     1,571.8
Less: Share of
joint ventures                 -          -             -    (11.5)      (11.5)
                         ---------    -------       -------  -------     -------
Group turnover           1,570.1          -           1.7    (11.5)    1,560.3
                         ---------    -------       -------  -------     -------

Year ended 31
December 2005
Group and
share of joint
ventures                   372.9          -           7.0     81.8       461.7
Less: Share of
joint ventures                 -          -             -    (46.2)      (46.2)
Group turnover             372.9          -           7.0     35.6       415.5

Loss on ordinary
activities before       
taxation
                         ---------    -------       -------  -------     -------
Year ended 31
December 2006           (9,863.6)  (1,668.5)       (786.1)  (310.5)  (12,628.7)
                         ---------    -------       -------  -------     -------
                        
Year ended 31
December 2005
(restated)              (6,587.8)    (682.5)       (298.3)  (358.3)   (7,926.9)
                         ---------    -------       -------  -------     -------

Net assets/
(liabilities)            ---------    -------       -------  -------     -------
At 31 December
2006                    18,657.7   (2,386.1)     (1,006.0)  (618.9)   14,464.7
                         ---------    -------       -------  -------
Unallocated
net funds                                                             47,143.9
Share of net
liabilities of
joint ventures                                                          (154.6)
                                                                         -------
                                                                      61,636.0
                                                                         -------
                         ---------    -------       -------  -------     -------
At 31 December
2005                     4,843.3     (940.7)       (278.2)  (347.9)    3,276.5
                         ---------    -------       -------  -------
Unallocated
net funds of                                                          23,441.4
Share of net
liabilities of
joint ventures                                                           (26.6)
                                                                         -------
At 31 December
2005                                                                  26,691.3
                                                                         -------


Net finance income of £565.5k (2005: £764.1k) on central Group borrowings has
been included within the United Kingdom segment.

The above table represents turnover by origin and by destination.



3. OPERATING LOSS

                                                             Year      Restated
                                                            ended    Year ended
                                                      31 December   31 December
                                                             2006          2005
                                                             £000          £000
Operating loss is stated after charging (crediting):
Depreciation:
- owned assets                                              310.1         92.1
- leased assets                                              57.5            -
                                                         ----------   ----------
                                                            367.6         92.1
                                                         ----------   ----------

Amortisation of goodwill                                      3.5          3.5
Refinery research and development                           267.1        580.3
Agronomy research and development                           708.9        323.1
Auditors' remuneration (see note 3a)                        146.9        142.5
Operating lease rentals                                     156.0         60.1
                                                         ----------   ----------


3a. Auditors' remuneration

                                                       Year ended   Year ended
                                                      31 December  31 December
                                                             2006         2005
                                                             £000         £000

The remuneration of the auditors is further analysed
as follows:

Audit of the financial statements
Group                                                        79.0         75.0
                                                         ----------   ----------
Non audit services:
Interim review                                               45.0            -
Taxation advisory                                            18.0         67.5
Overseas taxation advisory                                    4.9            -
Services relating to corporate finance
transactions                                                 85.0        190.9
Charged to share premium                                    (85.0)      (190.9)
                                                         ----------   ----------
                                                             67.9         67.5
                                                         ----------   ----------
                                                         ----------   ----------
                                                            146.9        142.5
                                                         ----------   ----------


No amounts have been paid to the previous auditors in excess of those provided
for at the previous year end. All amounts payable in the year ended 31 December
2005 are amounts payable to the previous auditors Deloitte & Touche LLP. All
amounts payable in the year ended 31 December 2006 are amounts payable to Ernst
& Young LLP.


4. INFORMATION REGARDING EMPLOYEES

                                                       Year ended   Year ended
                                                      31 December  31 December
                                                             2006         2005
                                                             £000         £000
Total average number employed by the group including
executive directors was:
Executive directors                                             4            5
Technical                                                      25            5
Administration and operational staff                           70           45
                                                         ----------   ----------
Total                                                          99           55
                                                         ----------   ----------

The costs incurred in respect of these employees
(including directors) were:                                  £000         £000

Wages and salaries                                        4,867.4      2,281.0
Social security costs                                       409.9        951.1
                                                         ----------   ----------
                                                          5,277.3      3,232.1
                                                         ----------   ----------

Included in wages and salaries is a total expense of share-based payments of
£1,135,000 (2005: £580,000) accounted for as equity-settled share-based payment
transactions.

Total average by the company including executive
directors was:

Executive directors                                              4           5
Administration and operational staff                             1           -
                                                          ----------  ----------
                                                 Total           5           5
                                                          ----------  ----------

The costs incurred in respect of these employees
(including                                                    £000        £000
directors) were:                                                         
Wages and salaries                                           714.4       750.9
Social security costs                                         95.7       382.0
                                                          ----------  ----------
                                                             810.1     1,132.9
                                                          ----------  ----------


5. DIRECTORS' REMUNERATION
                                            Benefits   Year ended   Year ended
                           Basic             in kind  31 December  31 December
                        Salaries      Fees   & other         2006         2005
                            £000      £000      £000         £000         £000
Executive directors

Elliott Michael Mannis     207.7         -      15.6        223.3         73.3
Richard Keith Gudgeon (iii) 54.2         -       4.4         58.6            -
Stephen Peter Douty        160.0         -      19.1        179.1         68.3
William Peter Campbell     130.0         -      10.0        140.0        126.6
Mark Lockhart Muir Quinn       -         -         -            -        283.2
Alec David Worrall (ii)        -         -         -            -         75.0
Philip Kenneth Wood (i)    162.5         -       1.9        164.4        150.6

Non-executive directors
Karl Eric Watkin            75.0         -         -         75.0        143.7
John Barclay Forrest        35.0         -         -         35.0         27.5
Clive Neil Morton           12.0      50.5         -         62.5         28.3
Peter John Davidson         12.0      23.0       0.9         35.9         27.3
Lord Oxburgh of 
Liverpool (iv)              12.5         -         -         12.5            -
Alec David Worrall (ii)        -         -         -            -         19.4
                          --------  --------  --------     --------   ----------
                           860.9      73.5      51.9        986.3      1,023.2
                          --------  --------  --------     --------   ----------


i.   Philip Kenneth Wood resigned as a director of the company on 16 January 
     2006. His contract entitled him to a payment of £150,000 on leaving office 
     and is included in the table above accordingly. Further, on 2 February 
     2006 he exercised 78,125 ordinary shares at £1.28 per share and 150,000
     ordinary shares at £1.60 per share. At this time options over 224,187 
     ordinary shares lapsed. He further exercised 70,000 ordinary shares at 
     £1.60 per share on 31 May 2006. Philip Kenneth Wood still retains options 
     over 444,186 ordinary shares at £1.60 per share until 31 July 2007.

ii.  Alec David Worrall resigned as a director on 31 March 2006.

iii. Richard Keith Gudgeon was appointed a director on 25 May 2006.

iv.  Lord Oxburgh of Liverpool was appointed a director on 27 September 2006.

v.   On 13 April 2006 Mark Quinn exercised 39,062 ordinary
     shares at £1.28 per share.


During the year ended 31 December 2006 the group incurred consultancy costs of
£66,644 to the Morton Partnership (2005: £55,800), a company in which Clive Neil
Morton is a director and shareholder; and £161,333 of consultancy to Davidson
Technology Limited (2005: £129,000), a company in which Peter John Davidson has
indirect control.


Directors' share options:

              Options    Granted   Exercised  Lapsed in year     Options  Exercise          Date        Expiry
Directors       1 Jan     2006        2006                        31 Dec     price   exercisable          date

Karl Eric
Watkin       39,062          -           -               -      39,062    £1.280    October 2005  October 2014
William
Peter        39,062          -           -               -      39,062    £1.280    October 2005  October 2014
Campbell
John
Barclay      78,125          -           -                      78,125    £1.280    October 2005  October 2014
Forrest
Peter
John        156,250          -           -               -     156,250    £1.280    October 2005  October 2014
Davidson
Clive
Neil        156,250          -           -               -     156,250    £1.280    October 2005  October 2014
Morton
Mark
Lockhart     39,062          -     (39,062)              -           -    £1.280    October 2005  October 2014
Muir
Quinn
Alec
David        39,062          -     (39,062)              -           -    £1.280    October 2005  October 2014
Worrall
Philip
Kenneth     888,373          -    (220,000)       (224,187)    444,186    £1.600    January 2006     July 2007
Wood
Philip
Kenneth      78,125          -     (78,125)              -           -    £1.280    October 2005  October 2014
Wood
William
Peter       106,897          -           -               -     106,897    £2.900              a)  October 2015
Campbell
William
Peter             -    136,363           -               -     136,363    £2.640              a)    March 2016
Campbell
Elliott
Michael      33,613          -           -               -      33,613    £2.975              a)      May 2015
Mannis
Elliott
Michael     132,075          -           -               -     132,075    £2.650              a)      May 2015
Mannis
Elliott
Michael           -    500,000           -               -     500,000    £2.000              a)  January 2016
Mannis
Stephen
Peter        56,497          -           -               -      56,497    £1.770              a)  January 2015
Douty
Stephen
Peter       132,075          -           -               -     132,075    £2.650              a)      May 2015
Douty
Stephen
Peter             -    170,454           -               -     170,454    £2.640              a)    March 2016
Douty
Richard
Keith             -    100,378                                 100,378    £2.640              a)    March 2016
Gudgeon       -------     ------     -------          ------     -------
          1,974,528    907,195    (376,249)       (224,187)  2,281,287
              -------     ------     -------          ------     -------


a) These options have been granted as one third exercisable on the first
anniversary of the date of grant. Thereafter a further 1/36 accrues monthly over
the next 24 months so that the full amount granted is capable of exercise after
3 years.

The aggregate amounts of gains made by former directors on the exercise of share
options during the year amounted to £365,642, this represents the market price
of the shares in excess of the exercise price on the date the options were
exercised. A gain of £51,648 was made by Mark Quinn, which represents
compensation for the loss of office.


6. INTEREST PAYABLE AND SIMILAR CHARGES

                                                       Year ended     Year ended
                                                      31 December    31 December
                                                           2006           2005
                                                           £000           £000
Bank loans and overdrafts                                  (0.9)             -
Finance charges payable under finance leases and
hire purchase contracts                                   (46.0)             -
                                                       ----------     ----------
Group interest payable and similar charges                (46.9)             -
                                                       ----------     ----------


7. TAX ON LOSS ON ORDINARY ACTIVITIES


The tax during the year was £nil (2005: £nil).

(i)Factors affecting tax for the current year:

The tax assessed for the year is lower than that resulting from applying the
standard rate of corporation tax in the UK of 30%. The differences are explained
below.

                                                     Year ended     Year ended
                                                    31 December    31 December
                                                           2006           2005
                                                           £000           £000
                                                        ---------     ----------
Loss on ordinary activities before tax                (12,628.7)      (7,926.9)
                                                        ---------     ----------
Tax at 30% thereon                                     (3,788.6)      (2,378.0)
                                                        ---------     ----------
Expenses not deductible for tax purposes                  100.0           84.4
Share option charge                                       340.5          140.9
Capital allowances greater than depreciation                  -           16.1
Losses for which no tax relief available                2,554.9        1,709.9
Losses of overseas subsidiaries for which no tax
relief available                                          793.2          426.7
                                                        ---------     ----------
Current tax for the year                                      -              -
                                                        ---------     ----------


(ii) Factors that may affect future tax charges:

At 31 December 2006 the group has estimated management expenses of £3.8m (2005:
£2.1m) to carry forward to set off against future income and gains of the parent
company and has estimated losses of £13.4m (2005: £6.5m) which will be available
to set against future trading profits of UK subsidiary companies. In addition
overseas subsidiary companies have estimated expenditure of £5.0m (2005: £1.6m)
to set against future trading profits. A UK deferred tax asset of £5.3m (2005:
£2.6m) has not been recognised in respect of accelerated capital allowances,
management expenses and losses carried forward as there is insufficient evidence
that the asset will be recovered.

8. PARENT COMPANY RESULT

As permitted by Section 230 of the Companies Act, the profit and loss account
for the parent company is not presented as part of these financial statements.
The parent company's loss for the year ended 31 December 2006 amounted to
£2,774,400. (31 December 2005: £1,900,300).


9. LOSS PER ORDINARY SHARE


Loss per share has been calculated using the weighted average number of shares
in issue during the relevant financial periods in accordance with FRS 22. For
the purposes of calculating the loss per ordinary share the weighted average
number of shares excludes 193,645 (2005: 193,645) shares held by the D1 Oils
Employee Benefit Trust as disclosed in note 18.

The weighted average number of shares in issue is as detailed below and the
earnings, being loss on ordinary activities after taxation, are £12,628,700.
(2005: £7,926,900).

The diluted loss per share is the same as the loss per share as the effect of
potentially issuable shares is anti-dilutive.

                                                     Year ended     Year ended
                                                    31 December    31 December
                                                                      Restated
                                                           2006           2005
                                                            No.             No.

Weighted average number of shares                   31,584,579      26,852,469

                                                          2006            2005
                                                         Pence           Pence
Loss per ordinary share - basic and diluted             39.98p          29.52p



10. INTANGIBLE ASSETS

                                                                      Goodwill
                                                                          £000
Cost
At 1 January 2006 and 31 December 2006                                    70.2
                                                                  --------------

Accumulated depreciation
At 1 January 2006                                                          6.1
Charge for the year                                                        3.5
                                                                  --------------
At 31 December 2006                                                        9.6
                                                                  --------------

Net book value At 31 December 2006                                        60.6
                                                                  --------------
At 31 December 2005                                                       64.1
                                                                  --------------




11. TANGIBLE FIXED ASSETS

               Freehold  Buildings  Plantations     Motor   Plant and      Fixtures
                   land                          vehicles   machinery  and fittings     Total
                 £000       £000         £000      £000        £000          £000        £000

Cost
At 1 January
2006          1,283.2          -        650.7      24.4     2,218.9          73.7     4,250.9
Additions           -       25.8        138.8      14.0    11,092.3         271.4    11,542.3
Disposals           -          -            -      (7.7)       (6.2)         (3.8)      (17.7)
Sale of
assets              -          -       (650.7)        -           -             -      (650.7)
to JV
                -------    -------     --------   -------    --------       -------     -------
At 31
December   
2006          1,283.2       25.8        138.8      30.7    13,305.0         341.3    15,124.8
                -------    -------     --------   -------    --------       -------     -------

Accumulated
depreciation
At 1 January
2006                -          -            -       4.9        60.8          15.2        80.9
Charge for
the year            -        4.1            -       9.9       285.1          68.5       367.6
                -------    -------     --------   -------    --------       -------     -------
At 31 December   
2006                -        4.1            -      14.8       345.9          83.7       448.5
                -------    -------     --------   -------    --------       -------     -------

Net book
value  
                -------    -------     --------   -------    --------       -------     -------
At 31
December     
2006          1,283.2       21.7        138.8      15.9    12,959.1         257.6    14,676.3
                -------    -------     --------   -------    --------       -------     -------
At December
2005          1,283.2          -        650.7      19.5     2,158.1          58.5     4,170.0
                -------    -------     --------   -------    --------       -------     -------

During the year plantation assets in Swaziland were transferred into the
Swaziland joint venture at cost which equated to the net book value. A debtor
due from the joint venture has been recorded in the consolidated financial
statements in respect of the assets transferred.

Included in the amounts for plant and machinery above is £6,585.0k (2005:
£2,070.0k ) of assets in the course of construction.

Included in the amounts for plant and machinery above are amounts relating to
leased assets of £3.4m (2005: £nil).


12. INVESTMENTS IN GROUP UNDERTAKINGS

                             Group         Group        Company        Company
                              2006          2005           2006           2005
                             £0000          £000           £000           £000

Subsidiary undertakings          -             -          125.0          125.0
Other investments             18.2          14.0           18.2           14.0
                             -------       -------       --------       --------
Included in investments       18.2          14.0          143.2          139.0
                             -------       -------       --------       --------
Associates                       -          (5.6)             -              -
Joint ventures              (154.6)        (21.0)             -              -
                             -------       -------       --------       --------
Included in provisions      (154.6)        (26.6)             -              -
                             -------       -------       --------       --------




12. INVESTMENTS IN GROUP UNDERTAKINGS (continued)
Company subsidiary undertakings:                                          £000

Cost
At 1 January and 31 December 2006                                        125.0
                                                                         -------

Provisions for impairment
At 1 January and 31 December 2006                                            -
                                                                         -------

Net book value
At 1 January and 31 December 2006                                        125.0
                                                                         -------

Other investments:                                                         Group
                                                                          £000
Cost
At 1 January 2006                                                         14.0
Additions                                                                  4.2
                                                                         -------
At 31 December 2006                                                       18.2
                                                                         -------

Provisions for impairment
At 1 January 2006 and 31 December 2006                                       -

Net book value
At 31 December 2006                                                       18.2
                                                                         -------

Group associates and joint ventures:                                      2006
                                                                          £000
Share of net assets/cost
At 1 January 2006                                                        (32.9)
Share of retained loss in the year                                      (121.7)
                                                                         -------
At 31 December 2006                                                     (154.6)
                                                                         -------
                                                                             
Provisions for impairment
                                                                            
At 1 January and 31 December 2006                                            -
                                                                         -------
                                                                             
Goodwill
                                                                         -------
At 1 January 2006                                                          6.3
                                                                         -------
Written off                                                               (6.3)
                                                                         -------
At 31 December 2006                                                          -
                                                                         -------
Net book value
                                                                         -------
At 31 December 2006                                                     (154.6)
                                                                         -------

At 31 December 2005                                                      (26.6)
                                                                         -------


The company owns more than 10% of the share capital of the following companies:
                          Nature of        Country of    Shareholder
Name                      Business         Registration        class  Percentage

D1 Oils Trading Limited   Biodiesel        UK               Ordinary       100%
                          trading
D1 Oil Subsidiary Limited Biodiesel        UK               Ordinary       100%
                          trading
D1 (UK) Limited           Biodiesel        UK               Ordinary       100%
                          trading
D1 Oils Asia Pacific Inc  Biodiesel        Philippines      Ordinary       100%
                          trading
D1 Oils South Africa
(PTY)                     Biodiesel        South Africa     Ordinary        95%
Limited                   trading
D1 Oils Mohan Pvt Limited Biodiesel        India            Ordinary        50%
                          trading
D1 Oils Swaziland Pty
Limited                   Biodiesel        Swaziland        Ordinary        50%
                          trading
D1 Oils Ghana (PTY)       Biodiesel        Ghana            Ordinary       100%
Limited                   trading
D1 Oils Malaysia SBN BHD  Biodiesel        Malaysia         Ordinary        50%
                          trading
D1 Oils India Pvt Limited Biodiesel        India            Ordinary       100%
                          trading
GroupBio Limited          Engine           UK               Ordinary        25%
                          development
D1 Oils Africa (PTY)      Dormant          South Africa     Ordinary       100%
Limited
D1 Oils Madagascar        Biodiesel        Madagascar       Ordinary       100%
Limited                   trading
D1 Oils Zambia Limited    Biodiesel        Zambia           Ordinary       100%
                          trading
D1 Oils Tanzania Limited  Dormant          Tanzania         Ordinary        90%
D1 Oils Asia Pacific PTE
Limited                   Biodiesel        Singapore        Ordinary       100%
                          trading


13. DEBTORS
                                       Group     Group     Company     Company
                                        2006      2005        2006        2005
                                        £000      £000        £000        £000
Trade debtors                        1,446.7     120.8           -           -
Other debtors                           50.0      50.0
Taxation and social security             4.3     267.1           -       267.1
Amounts owed by group undertakings         -         -    33,152.7    11,392.6
Prepayments and accrued income         346.2     287.4         8.2        56.9
                                      --------  --------     -------     -------
                                     1,847.2     725.3    33,160.9    11,716.6
                                      --------  --------     -------     -------


Amounts falling due after more than one year included above are:
                                   Group         Group     Company     Company
                                    2006          2005        2006        2005
                                    £000          £000        £000        £000
Amounts owed by joint ventures     898.9             -           -           -
Other debtors                       50.0          50.0           -           -
                                  --------      --------     -------     -------
                                   948.9          50.0           -           -
                                  --------      --------     -------     -------


14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

                                 Group         Group      Company      Company
                                  2006          2005         2006         2005
                                  £000          £000         £000         £000
Obligations under finance
leases (note 17)                 604.3             -            -            -
Current instalments due on
loans                             60.0             -            -            -
Trade creditors                2,660.5         882.8        181.8         47.5
Other loans                          -           3.2            -            -
Taxation and social security     151.4          72.4         42.5            -
Accruals and deferred income   2,208.9         864.8      1,105.5        340.9
                                --------     ---------     --------     --------
                               5,685.1       1,823.2      1,329.8        388.4
                                --------     ---------     --------     --------



15. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR

                       Group             Group         Company         Company
                        2006              2005            2006            2005
                        £000              £000            £000            £000
Mortgage
payable (note 16)      780.0             840.0               -               -
Loans due greater than
one year (note 16)      12.8                 -               -               -
Obligations under 
finance leases 
(note 17)            2,740.7                 -               -               -
                     ---------         ---------        --------        --------
                     3,533,5             840.0               -               -
                     ---------         ---------        --------        --------

16. BORROWINGS

                        Group           Group          Company         Company
                         2006            2005             2006            2005
                         £000            £000             £000            £000

Amounts due within one
year or on demand        60.0               -                -               -
Between one
and two years            72.8            60.0                -               -
Between two
and five years          120.0           180.0                -               -
Over five years         600.0           600.0                -               -
                       --------        --------        ---------        --------
                        852.8           840.0                -               -
                       --------        --------        ---------        --------


The group borrowings in 2006 relate to the mortgage at the Forty Foot Road site
in Middlesbrough, TS2 1HG. The mortgage is secured by a fixed charge over the
property. The interest rate payable on the loan is fixed at 1.75% over LIBOR for
the period of the mortgage which is repayable in 56 quarterly instalments
commencing March 2007.





17. OBLIGATIONS UNDER FINANCE LEASES

                       Group           Group         Company         Company
                        2006            2005            2006            2005
                        £000            £000            £000            £000

Amounts
payable within
one year               604.3               -               -               -
Between two
and five years       2,740.7               -               -               -
                      --------        --------        --------        --------
                     3,345.0               -               -               -
                      --------        --------        --------        --------


18. CALLED UP SHARE CAPITAL

                                                           2006           2005
                                                           £000           £000
Authorised
                                                         --------       --------
100,000,000 (2005:
52,000,000) ordinary
shares of 1p each                                       1,000.0          520.0
                                                         --------       --------

Called up, allotted and fully paid
                                                         --------       --------
61,480,578 (2005
31,225,481) ordinary
shares of 1p each                                         614.8          312.3
                                                         --------       --------

On 28 December 2006, the company completed the placing of 29,838,848 new
ordinary shares. The company received cash consideration of £49,234.1k for this
placing prior to expenses of £3,005.2k.


During the year the authorised share capital was increased by £480k by the
creation of 48,000,000 ordinary shares of 1p each.


During the year 416,249 ordinary shares with a nominal value £4162.49 were
allotted on the exercise of share options. On 2 February 2006 Philip Kenneth
Wood exercised options over 78,125 ordinary shares at £1.28 per share and
150,000 ordinary shares at £1.60 per share. On 31 May 2006 he exercised options
over a further 70,000 ordinary shares at £1.60 per share.



On 13 April 2006 Mark Quinn exercised options over 39,062 ordinary shares at
£1.28 per share.


19. MOVEMENT ON RESERVES

                   Share Share premium Shares to be   Merger  Own shares held  Profit & Loss
                 capital        issued       issued  reserve
                                                      issued
                    £000          £000                  £000             £000           £000
Group
At 1 January
2006 as
originally
stated             312.3      37,104.7        110.0    437.7           (484.0)     (10,789.4)
Restatement
for change in
share-based
payment policy         -             -       (110.0)       -                -          110.0
At 1 January 2006  312.3      37,104.7            -    437.7           (484.0)     (10,679.4)
Loss for the year      -             -            -        -                -      (12,628.7)
Share issue        302.5      49,732.7            -        -                -              -
Share issue costs      -      (3,005.2)           -        -                -              -
Share options
charge (FRS 20)        -             -            -        -                -        1,135.0
Foreign exchange
differences            -                          -        -                -         (591.6)
-----------------  -------       -------      -------  -------          -------        -------
At 31 December
2006               614.8      83,832.2            -    437.7           (484.0)     (22,764.7)
-----------------  -------       -------      -------  -------          -------        -------


Company
At 1 January
2006 as
originally
stated              312.3    37,104.7     110.0        -    (484.0)   (1,890.0)
Restatement
for change in
share-based
payment policy          -           -    (110.0)       -         -       110.0
At 1 January
2006                312.3    37,104.7         -        -    (484.0)   (1,780.0)
Loss for the
year                    -           -         -        -         -    (2,774.4)
Share options
charge (FRS 20)         -           -         -        -         -     1,135.0
Share issue         302.5    49,732.7         -        -         -           -
Share issue
costs                   -    (3,005.2)        -        -         -           -
------------------   ------     -------   -------  -------   -------     -------
At 31 December
2006                614.8    83,832.2         -        -    (484.0)   (3,419.4)
------------------   ------     -------   -------  -------   -------     -------

The D1 Oils Employee Benefit Trust holds 193,645 (2005: 193,645) shares in D1
Oils plc with a market value of £328,228 (2005: £339,847). The shares have a
nominal value of 1p each, £1,936.45 (2005: £1,936.45).


20. RECONCILIATION OF MOVEMENT IN CONSOLIDATED EQUITY SHAREHOLDERS' FUNDS

                                                           Year           Year
                                                          ended          Ended
                                                    31 December    31 December
                                                           2006           2005
                                                           £000           £000
Loss for the year                                     (12,628.7)      (7,926.9)
Shares issued in the year (net of issue costs)         47,030.0       24,393.7
Merger reserve adjustment                                     -              -
Purchase of own shares                                        -       (3,479.9)
Proceeds on sale of own shares                                -        3,462.0
Share options charge (FRS 20)                           1,135.0          580.0
Foreign exchange on retranslating subsidiaries           (591.6)         (29.9)
---------------------------------                       ---------      ---------
Net addition to shareholders' funds                    34,944.7       16,999.0
Opening equity shareholders' funds                     26,691.3        9,692.3
---------------------------------                       ---------      ---------
Closing equity shareholders' funds                     61,636.0       26,691.3
---------------------------------                       ---------      ---------



21. SHARE BASED PAYMENTS


All employees share option plan

Awards are made to all levels of staff at the discretion of the Board of
Directors either on appointment, at salary review time, or any other time that
the Directors deem appropriate. There are no specific performance criteria
attached to the options.

Options granted vest 1/3 after one year with the remaining 2/3 vesting in equal
monthly instalments over the next two years. Equity settlement is applied to all
options, there is no cash settlement alternative.

The expected life of the options has been assessed at 2.5 years. The contractual
life of the options is ten years.

The fair value of the awards are calculated using the Black-Scholes model and
subsequently adjusted for gain dependency, assessed at 15%, and forfeitures,
assessed at 10% over the life of the award. A volatility adjustment in the
calculation of 65% is included and considered appropriate for the sector and age
of the Group. An appropriate risk free rate as defined by The Bank of England
and a zero dividend yield are applied to the calculation.

The exposure recognised in for share-based payments in respect of employee
services received during the year to 31 December 2006 is £1,135,000 (2005:
£580,000). This expense all relates to equity-settled share-based payment
transactions).

In forming the volatility assumption the directors have considered the
volatility of the share price since the date of listing. The volatility of
companies operating in the same sector has also been reviewed. Based on these
factors the volatility assumption hasbeen assessed at 65%.

The following table illustrates the number and weighted average exercise prices
(WAEP) of, and movements in, share options during the year.

                                   2006        2005           2005        2005
                                    No.        WAEP            No.        WAEP

Outstanding as at 1 January   2,577,216        1.76      1,815,580        1.53
Granted during the year       1,514,799        2.47        761,636        2.30
Forfeited during the year       224,187        1.45              -
Exercised                       415,311        1.60              -
Outstanding at 31 December    3,452,517        2.12      2,577,216        1.76
                                 --------    --------       --------    --------
Exercisable at31 December     1,615,180        1.75        927,207        1.28
                                 --------    --------       --------    --------


The weighted average fair value per option of options granted during the year
was 98.6p (2005: 117.1p). The range of exercise prices for options outstanding
at the end of the year was £1.28 £3.35(2005: £1.28 £3.35).



22. FINANCIAL INSTRUMENTS


The main risks arising from the group's operations are interest rate risk,
liquidity risk, foreign currency translation risk and certain commodity price
risks. The group does not trade in financial instruments. In the opinion of the
directors the fair value of the group's financial instruments are not materially
different to the book value.

The group's financial assets predominantly comprise cash which earns interest at
a floating rate based on LIBOR. At 31 December 2006 the average interest earned
on the cash balance was 4.84% (2005: 4.48%).

Interest rate risk profile of financial liabilities

The interest rate profile of the financial liabilities of the group as at 31
December 2006 is as follows:
                                   Total £,000                     Floating rate
                                                                       financial
                                                                     liabilities

         2006                        4,185.0                           4,185.0
         2005                          840.0                             840.0

The floating rate financial liabilities comprise a mortgage

Liquidity Risk

The group seeks to manage financial risk, to ensure sufficient liquidity is
available to meet foreseeable needs while investing cash assets safely and
profitably.

Interest Rate Risk

The group has one mortgage obligation the terms of which include a floating
interest rate of 1.75% above LIBOR. The capital outstanding at 31 December 2006
was £840,000. (2005 : £840,000 at 1.75% above LIBOR.)

Foreign Currency Translation Risk

No significant currency risks arise through the consolidation of overseas
subsidiaries at 31 December 2006. The directors are actively developing an
appropriate means of mitigating the risk of these entities as they become a more
significant element of the business.

The Group cash balances split by currency and shown as a sterling equivalent,
converted at Bank of England exchange rates at 31 December are:

                                                  2006                    2005
                                                  £000                    £000

British Pounds                                51,234.1                23,691.3
US Dollars                                         1.1                   287.8
Indian Rupees                                     32.1                   138.8
South African Rand                                45.0                    35.4
Swaziland Lilangeni                                  -                    30.3
Euros                                                -                    64.8
Malaysian Ringgits                                26.6                    30.1
Ghanaian Cedi                                      1.4                     1.9
Filipino Peso                                      1.4                     1.0
-------------                            ---------------           -------------
                      Total                   51,341.7                24,281.4
                -------------            ---------------           -------------


Commodity Price Risks

During 2006 the group did not engage in commodity related financial instruments,
including hedging. As the group commences supply agreements, in the coming, year
they will monitor the prices for raw oils and enter into forward purchase
contracts where they seek to fix the cost to the Group in order to be able to
satisfy the contracts.


23. FINANCIAL COMMITMENTS

Capital commitments

Amounts contracted for but not provided in the financial statements amounted to
£2,700,000 for the group and the company (2005: nil).


Supply commitments

From time to time the company enters into supply commitments for the supply of
jatropha oil and seeds as described in the foreign currency translation risk
section of note 22. All of these contracts are denominated in US Dollars.


24. RELATED PARTY TRANSACTIONS


The group has a 50:50 joint venture agreement with a joint venture partner,
Mohan Breweries and Distilleries Limited relating to D1 Oils Mohan Pty Limited.
The agreement requires Mohan Breweries and Distilleries Limited to lead on
planting and for D1Oils Trading Limited to lead on design and technology. D1
Oils Trading Limited did not introduce any working capital into the joint
venture during the year. There were no amounts outstanding at 31 December 2006.

The group has a 50:50 joint venture agreement with a joint venture partner, Ning
Corporation relating D1 Swaziland Ltd. The agreement relates to The Ning
Corporation providing land, management and labour for a managed plantation site
in Hluti. D1 Oils Trading Ltd is providing working capital and intellectual
property. Theamounts outstanding at 31 December 2006 amounted to £898.9k (2005:
£nil)

The group also has an associate agreement with GroupBio Limited to provide
sponsorship funding to develop and race a biofuel racing car. During the year
ended 31 December 2006 D1 Oils Trading Limited introduced £nil (2005: £25,000)
of share capital and £nil (2005: £65,000) of sponsorship funding. There were no
amounts outstanding at 31 December 2006.

Any related party transactions which apply to company directors are shown in
note 5 above.


25. POST BALANCE SHEET EVENTS


On 10 January 2007 the Group completed the acquisition of the refining site in
Bromborough for cash consideration of £3.0m.


26. REPORT AND FINANCIAL STATEMENTS


The above financial information does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985. It is based on the unaudited
statutory accounts for the year ended 31 December 2006 on which the auditors
expect to issue an unqualified audit opinion and the audited statutory accounts
for the year ended 31 December 2005 on which Deloitte & Touche LLP issued an
unqualified audit opinion.



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