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Legendary Invest PLC (LEG)

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Tuesday 26 September, 2006

Legendary Invest PLC

Final Results

Legendary Investments PLC
26 September 2006

                        LEGENDARY INVESTMENTS PLC (LEG)

              Preliminary results for the year ended 31 March 2006


CHIEF EXECUTIVE'S STATEMENT

REVIEW OF ACTIVITIES

In the year under review, your Company continued to assess investments, both on
and off-market, where the investee companies might benefit from your Company's
hands-on investment process in which the investee companies are assisted in
certain areas such as product development and marketing. Despite reviewing
several opportunities, no suitable new investments were found.

In line with the company's policy of utilising available funds, certain medium
term investments had been made in listed securities. During the year under
review, several of these investments were realised at a loss due to the
non-occurrence of certain anticipated corporate events. In total, these
investments resulted in net losses of £452,000. This compares with net losses on
investments of £945,000 for the previous year.

Administrative expenses amounted to £58,000. This compares with administrative
expenses of £149,000 for the previous year. The fall in administrative expenses
was due to the abatement and write back of certain administrative expenses.

In total net losses for the year under review amounted to £510,000. This
compares with a net loss of £1,094,000 for the previous year.

The Company has adopted FRS 26 ('Financial Instruments - recognition and
measurement') in the year which has required changes to the descriptions and
classifications of the investments traded by the Company. The impact of this has
been to restate headings within the profit and loss account, balance sheet, cash
flow statement and related notes. There has been no impact on the loss, net
assets/liabilities, or cash flows for either the current or prior years as a
result of the adoption of this standard.

OUTLOOK

The last remaining investments were liquidated following the year end. The
Company continues to review further investments. The losses in the year under
review have resulted in a deficit in the shareholders' funds. The Board is
exploring various options to address this issue, including strengthening the
balance sheet. In addition an extraordinary general meeting will be convened to
discuss the deficit in the shareholders' funds.

Eaitisham Ahmed

Chief Executive 26 September 2006


Registered Office:

2nd Floor
Berkeley Square House
Berkeley Square
London W1J 6BD

For further information please contact:

Zafar Karim Legendary Investments 0207 887 1335

Barry Saint City Financial Associates 0207 090 7800



PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2006


                                                                     Note             2006             2005
                                                                                     £'000        (restated
                                                                                                see note 1)
                                                                                                      £'000

Net losses on investments held for trading                                           (452)            (945)
Administrative expenses                                                               (58)            (149)

Loss on ordinary activities before taxation                             2            (510)          (1,094)
Taxation                                                                4                -                -

Loss for the financial period                                          13            (510)          (1,094)

Loss per share                                                                      (0.1p)           (0.2p)

- basic and fully diluted                                               5


A separate statement of recognised gains and losses has not been prepared as the
Company has no recognised gains or losses in the current or prior period other
than the losses for the periods.

All activities are continuing.


BALANCE SHEET
AS AT 31 MARCH 2006

                                                                                      2006             2005
                                                                                                  (restated
                                                                                                see note 1)
                                                                    Notes            £'000            £'000

FIXED ASSETS                                                             

Available for sale investments                                          7                9                -

CURRENT ASSETS

Debtors                                                                 8                -               26
Investments held for trading                                            9               91              158
Cash at bank and in hand                                                                43              430

                                                                                       134              614
CREDITORS: amounts falling due within one year                         10            (183)            (144)

NET CURRENT (LIABILITIES)/ASSETS                                                      (49)              470

NET (LIABILITIES)/ ASSETS                                                             (40)              470

CAPITAL AND RESERVES

Called up share capital                                                11              628              628
Share premium account                                                  12            8,270            8,270
Profit and loss account - deficit                                      13          (8,938)          (8,428)


EQUITY SHAREHOLDERS' (DEFICIT)/funds                                   14             (40)              470


CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2006
                                                                    Notes             2006             2005
                                                                                     £'000        (restated
                                                                                                see note 1)
                                                                                                      £'000

NET CASH OUTFLOW FROM OPERATING ACTIVITIES                              15            (506)            (450)

FINANCING
Director's loan                                                                        122            (435)

(DECREASE)/INCREASE IN CASH                                            16            (384)               15




1              ACCOUNTING POLICIES

Accounting convention

The accounts have been prepared in accordance with applicable
accounting standards and under the historical cost convention, modified by the
revaluation of investments.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is
provided at rates calculated to write off the cost less the estimated residual
value of each asset over its expected useful life, as follows:

Office equipment, furniture and fittings           3 - 4 years

Impairment of asset values

Where asset values are impaired, they are written down to their economic value
to the business.

Financial instruments

Financial assets and financial liabilities are recognised on the company's
balance sheet when the company has become a party to the contractual provisions
of the instrument.

All investments are initially recognised at cost, being the fair value of the
consideration given and including acquisition charges associated with the
investment.

After initial recognition, investments that are classified as held for trading
are measured at fair value. Gains or losses on investments held for trading are
recognised in income.

For investments that are actively traded in organised financial markets, fair
value is determined by reference to Stock Exchange quoted market bid and offer
prices at the close of business on the balance sheet date.  Unlisted investments
have been based on cost less impairment as there is insufficient information to
enable a valuation to be performed.

Derivative financial instruments

The company's activities expose it primarily to market risk.  The company uses
derivatives to minimise the initial monetary investment required.

Derivative financial instruments are carried at fair market value and resultant
profit and losses are included in the profit and loss account. Assets or
liabilities resulting from gains or losses on open positions are reported as
derivative financial assets or liabilities. Fair value is determined by
reference to third party market values. The company does not use derivative
financial instruments for hedge accounting purposes.

Deferred taxation

Deferred tax is recognised in respect of differences between the Company's
taxable profits and its results as stated in the financial statements that have
originated but not reversed at the balance sheet date.

Deferred tax assets are only recognised where there is an expectation that they
will result in a reduction in corporation tax payments in the foreseeable
future.

Deferred tax is measured at the average tax rates that are expected to apply in
the periods in which timing differences are expected to reverse, based on tax
rates and laws that have been enacted or substantially enacted by the balance
sheet date.  Deferred tax is measured on a non-discounted basis.

Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated
into sterling at the rates of exchange ruling at the accounting date.
Transactions in foreign currencies are recorded at the rate ruling at the date
of the transaction. All differences are taken to profit and loss account.

Prior period adjustment

The company has adopted FRS26 ('Financial Instruments - recognition and
measurement') in the year.  As a result, the 2005 figures have been restated to
reflect the revised classification of the trading activities of the company.
There has been no impact on loss for the year, net (liabilities)/assets, or
(decrease)/increase in cash for either the current or prior years.

Going concern

The company incurred a net loss of £510,000 in the year and the liabilities at
31 March 2006 exceeded assets by £40,000. The directors have carried out cost
projections for the company and compared these with the availability of finance
from the director's loan facility.  Based on this, the Directors have formed a
judgement, at the time of approving the accounts, that there is a reasonable
expectation that the Company has adequate resources to continue in operational
existence for the foreseeable future. For this reason the Directors continue to
adopt the going concern basis in preparing the accounts.

2              LOSS ON ORDINARY ACTIVITIES BEFORE TAX                                 2006             2005
                                                                                     £'000            £'000
Loss on ordinary activities before tax  for the year is stated after
charging:

Auditor's remuneration                                                                  
-               statutory audit                                                         12               14
Services relating to taxation                                                            8                7
Other services                                                                           8                7


3              DIRECTORS                                                              2006             2005

                                                                                    Number           Number
NUMBER OF EMPLOYEES                                                                     
The average number of employees, including directors, during the year
was:                                                                                     2                2


                                                                                     £'000            £'000

DIRECTORS' EMOLUMENTS                                                                   
Aggregate emoluments                                                                    47               47


EMOLUMENTS OF HIGHEST PAID DIRECTOR:   
Remuneration                                                                            35               35


The company was charged salary related costs of £Nil (2005: £27,000) in respect
of services provided to the company by a company controlled by S Ahmed.

4              TAX ON PROFIT ON ORDINARY ACTIVITIES                                   2006             2005
                                                                                     £'000            £'000
Analysis of charge in the year:
Current tax                                                                              -                -
Deferred tax                                                                             -                -

                                                                                         -                -

Factors affecting tax charge for year:

The tax assessed for the year is lower than the standard
rate of corporation tax in the UK (30%).  The differences are explained
below:

Loss on ordinary activities before tax                                               (510)          (1,094)

Loss on ordinary activities multiplied by standard rate              
of corporation tax in the UK 30% (2005: 30%)                                         (153)            (328)
Expenses not deductible for tax purposes                                                 2              265
Tax losses carried forward                                                             151               63

Current tax charge for year                                                              -                -

4              TAXATION (continued)

The reported losses include losses on fixed asset investments which are only
relievable against future capital profits.

As at 31 March 2006 the Company had corporation tax revenue losses of
approximately £5.9 million (2005: £5.4m) available to carry forward against
future income. No deferred tax asset is recognised in respect of these losses
due to the uncertainty as to the utilisation of the losses in the foreseeable
future.

Future tax charges will be dependent on the split of profits for tax purposes as
between revenue and capital items, and the utilisation of losses incurred to
date.
                                                                                      2006             2005
5              LOSS PER ORDINARY SHARE                                               £'000            £'000

Attributable loss (£'000)                                                            (510)          (1,094)

Average number of ordinary shares in issue ('000)                                  627,667          627,667

Average number of ordinary shares in issue and over which options have             
been granted ('000)                                                                627,667          627,667

Basic loss per share (pence)                                                          0.1p             0.2p

Fully diluted loss per share (pence)                                                  0.1p             0.2p


The share options and warrants do not give rise to any dilution and therefore
the fully diluted loss per share is equal to the basic loss per share.


6              TANGIBLE ASSETS                                                                       Office
                                                                                                 equipment,
                                                                                                  furniture
                                                                                                 & fittings
                                                                                                      £'000

                COST                                                                                     
                At 31 March 2005 and 31 March 2006                                                       12

                DEPRECIATION                                                                             
                At 31 March 2005 and 31 March 2006                                                       12

                NET BOOK VALUE                                                                            
                At 31 March 2006 and 31 March 2005                                                        -


7              AVAILABLE FOR SALE FINANCIAL ASSETS                                    2006             2005
                                                                                     £'000        (restated
                                                                                                see note 1)
                                                                                                      £'000

Unlisted investments                                                                     9                -

8              DEBTORS                                                                2006             2005
                                                                                     £'000            £'000

Trade debtors                                                                            -               21
Prepayments and accrued income                                                           -                5

                                                                                         -               26


9              FINANCIAL ASSETS HELD FOR TRADING                                      2006             2005
                                                                                     £'000        (restated
                                                                                                see note 1)
                                                                                                      £'000

                Listed investments                                                      91              158

10             CREDITORS: amount falling due within one year                          2006             2005
                                                                                     £'000        (restated
                                                                                                see note 1)
                                                                                                      £'000

Bank overdraft                                                                           -                3
Derivative financial liabilities                                                         -               58
Other creditors                                                                          -               15
Accruals                                                                                60               67
Directors' loan (note 19)                                                              123                1

                                                                                       183              144

11            SHARE CAPITAL AND SHARE OPTIONS                                         2006             2005
                                                                                     £'000            £'000

AUTHORISED                                                                           
3,000,000,000 ordinary shares of £0.001 each                                         3,000            3,000

ALLOTTED, CALLED UP AND FULLY PAID
627,667,198 ordinary shares of £0.001 each                                             628              628


SHARE OPTIONS

The Company has unapproved and approved share option schemes in which the
Directors participate. During the year, 75,000,000 options were granted to
Zafarullah Karim (on 1 April 2005).  Details of Directors' outstanding share
options are shown below:

                                                                   Exercise       Number at       Number at
                                                                      Price        31 March         1 April
                                                                (per share)            2006            2005

Eaitisham Ahmed                                                          2p     125,000,000     125,000,000
Zafarullah Karim                                                       0.8p      75,000,000      75,000,000



The options remains extant, as long as their holder remains an employee of the
company.



The Market price of the Company's ordinary shares ranged from a high of 0.24p to
a low of 0.09p during the year and was 0.09p on 31 March 2006.  Since 31 March
2006 to the date of this report, no options have been granted or exercised.




12            SHARE PREMIUM ACCOUNT                                                   2006             2005
                                                                                     £'000            £'000

                At 31 March                                                          8,270            8,270

13            PROFIT AND LOSS ACCOUNT                                                 2006             2005
                                                                                     £'000            £'000

                At 1 April 2005                                                    (8,428)          (7,334)
                Loss for the year                                                    (510)          (1,094)

                Loss carried forward                                               (8,938)          (8,428)


14            RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS                      2006             2005
                                                                                     £'000            £'000

                Opening shareholders' funds                                            470            1,564
                Loss for the financial year                                          (510)          (1,094)

                Closing shareholders' funds                                           (40)              470


15           RECONCILIATION OF OPERATING LOSS TO NET CASH                             2006             2005
(OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES                                           £'000        (restated
                                                                                                see note 1)
                                                                                                      £'000

                Operating loss                                                       (510)          (1,094)
                Impairment of financial asset investments                                -            1,566
                Decrease in debtors                                                     26                1
                Decrease in creditors                                                 (22)             (23)

                Net cash (outflow)/inflow from operating activities                  (506)              450


16            ANALYSIS OF NET (DEBT)/ FUNDS              At 31 March 2005       Cash flows At 31 March 2006
                                                                    £'000            £'000            £'000

                Cash at bank and in hand                              430            (387)               43
                Bank overdraft                                        (3)                3                -

                                                                      427            (384)               43
                Director's loan                                       (1)            (122)            (123)


                                                                      426            (506)             (80)

17            RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
                                                                                                      £'000

                (Decrease) in cash in the year                                                        (384)
                Cash (inflow) from financing activities                                               (122)
                Net debt at 31 March 2005                                                               426

                Net (debt)/ funds at 31 March 2006                                                     (80)


18            FINANCIAL INSTRUMENTS 

Short term debtors and creditors

Short term debtors and creditors have been excluded from all the following
disclosures other than currency risk disclosure.

Interest rate risk

Floating rate financial liabilities of £3,000 (2005: £nil) bear interest at
rates based on LIBOR plus 1-1.5%.  Cash at bank earns interest at floating rates
based on LIBOR.

Borrowing facilities

At the year end the company had no overdraft facility (2005: £Nil).

Currency risk

During the year, the company had no exposure to currency risk.

19            RELATED PARTY TRANSACTIONS

During the year the company received funding from the Chief Executive and
incurred expenditure on his behalf. As at the balance sheet date, the amount
lent by the Chief Executive to the company amounted to £123,220 (2005: £870).
This sum is interest free and there are no fixed terms for repayment. The
maximum balance outstanding during the year was £435,750 (2005: £435,750) owed
to the Chief Executive by the company.


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

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