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Legendary Invest PLC (LEG)

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Wednesday 29 December, 2010

Legendary Invest PLC

Half Yearly Report

RNS Number : 6606Y
Legendary Investments PLC
29 December 2010
 



29 December 2010

 

LEGENDARY INVESTMENTS PLC ("Legendary" or the "Company")

 

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2010

 

 

CHIEF EXECUTIVE'S STATEMENT

 

During the first half of this year, your Company underwent a number of changes. Legendary's prospects were assessed in light of the capital available for investment and the investment environment. A net loss on investments was experienced of £10,000 (2009: £7,000 net gain) and discussions were held with suppliers and creditors and Legendary's liabilities were negotiated down.

 

As part of these discussions, administrative costs before share option charge and exceptional items were reduced to £52,000 (2009: £65,000). To preserve cash, the directors accrued but took no remuneration.

 

Funding of £30,000 was raised in August by way of a loan facility. The facility bears no interest and has no fixed date for repayment. As part of the terms of the facility, Legendary granted 260,000,000 warrants over new ordinary shares at an exercise price of 0.1p per share.  At that time, Legendary's share price was 0.075p. In order to minimise dilution, the directors cancelled the 250,000,000 warrants held personally by them. Thus funding was obtained with an increase in the fully diluted shares of only 10 million shares or 1%. A financing charge of £23,300 relating to the warrants issued was incurred. This charge is a non-cash item.

 

Overall, net profit for the first half of the year was £3,000 (2009: £181,000 net loss).

 

Post the half year end, Legendary negotiated an option to invest in Bosques Energicos EBE S.A. de C.V. ("BE EBE"), a bio fuel company. The option enables Legendary to invest in up to 40% of BE EBE. BE EBE is developing a mother garden of Pongamia Pinnata trees prior to developing a plantation on at least 2,000 acres of land. The bio fuel industry is still in its infancy and the expectation is that there will be dramatic growth in demand for its use in Europe and world-wide driven by the desire for more environmentally friendly fuels and regulation.

 

Legendary strengthened its Board by the appointment of Rajesh Kumar Rai as an Executive Director in December. Mr Rai's principal focus at Legendary will be to source, develop and oversee investments in the renewable energy sector. He played a key part in sourcing and negotiating the option to invest in BE EBE.

 

The Company also raised £60,000 by placing 40,000,000 new ordinary shares at 0.15 pence each in November. The closing price on the day of the placing was 0.092 pence. The placees received three warrants for every four shares subscribed for. The warrants have an exercise price of 0.15 pence per share. The funds raised will be used for working capital purposes.

 

With working capital sufficient for the foreseeable future, a strengthened Board and having negotiated an option to invest in a high growth sector, Legendary looks confidently to the future and continues to seek investments in high growth sectors and economies.

 

Gavin Preston

29 December 2010



 

PROFIT AND LOSS ACCOUNT

for the six months ended 30th September 2010

(£'000)

 

 

6m ended 30/09/10 Unaudited

6m ended 30/09/09 Unaudited

Year ended 31/03/10 Audited





Net gain/(loss) on investments

(10)

7

(7)





Administrative expenses before share option charge and exceptional items

(52)

(65)

(81)

Share option charge

0

(123)

(123)

Exceptional provision against debtors

0

0

(63)

Exceptional cancellation of loan

88

0

0

Net administrative expenses

36

(188)

(267)





Operating gain/(loss)

26

(181)

(274)





Interest receivable

0

0

0

Finance charge

(23)

0

0





Profit/(loss) on ordinary activities before tax

3

(181)

(274)





Taxation

0

0

0





Profit/(loss) on ordinary activities after tax

3

(181)

(274)





Profit/(loss) per share (basic and fully diluted) - pence

0.00

(0.03)

(0.04)

 

BALANCE SHEET

as at 30th September 2010

(£'000s)

As at
30/09/2010
Unaudited

As at
30/09/2009
Unaudited

As at
31/03/2010
Audited





Current assets




Financial assets held for trading

0

13

0

Debtors due within one year

4

160

39

Cash at bank and in hand

3

2

0


7

175

39

Creditors




Creditors: amounts falling due within one year

(34)

(165)

(122)

Creditors: amounts falling due after one year

(30)

0

0





Net assets/(liabilities)

(57)

10

(83)





Capital and reserves




Called up share capital

695

695

695

Share premium account

8,338

8,338

8,338

Share based payment reserve

23

123

123

Profit and loss - deficit

(9,113)

(9,146)

(9,239)





Equity shareholders' funds/(deficit)

(57)

10

(83)

 



 

CASH FLOW STATEMENT

for the six months ended 30th September 2010

(£'000)

 

 

6m ended
30/09/2010
Unaudited

6m ended
30/09/2009
Unaudited

Year ended
31/03/2010
Audited





Net cash outflow from operating activities

(27)

(133)

(139)





Net cash outflow before financing

(27)

(133)

(139)





Financing




Issue of shares

0

135

135

Long term financing loan

30

0

0

Other loan

0

0

4


30

135

139





Increase in cash in the period / year

3

2

0

 

Notes to the Interim Results

 

1.               Accounting Policies

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

 

2.               Basis of Preparation of Half Yearly Financial Information

These unaudited interim financial statements for the six months ended 30 September 2010 have been prepared in accordance with United Kingdom Generally Accepted Accounting Standards. The financial information in this interim announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

 

The comparative financial information for the year ended 31 March 2010 does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The statutory accounts of Legendary Investments Plc for the year ended 31 March 2010 have been reported on by the Company's auditor and have been delivered to the Registrar of Companies.

 

The current and comparative periods to September have been prepared using accounting policies and practices consistent with those adopted in the annual financial statements for the year ended 31 March 2010 and are also consistent with those which will be adopted in the 31 March 2011 financial statements.

 

                  The Company is not required to prepare financial statements in accordance with International Accounting Standards as it is not a parent company. The directors are of the opinion that the adoption of International Accounting Standards would have no material impact on the reported results and will therefore continue to apply UK Generally Accepted Accounting Standards, but will reconsider the position should the Company's activities lead to a material difference between the accounting bases.

 

3.               Earnings Per Share                                                                                                                 

                  The calculation of earnings per share is based on the profit/(loss) for the period divided by the weighted average number of ordinary shares in issue during the period of 695,167,198 (2009: 695,167,198).

 

4.               Half Yearly Report                                                                                                                  

                  The half yearly report, including the financial information contained herein, is the responsibility of, and was approved by the directors on 24 December 2010. The continuing obligations of the AIM Rules for Companies require that the accounting policies and presentation applied to the half yearly figures should be consistent with those applied in preparing preceding annual accounts except where any changes, and the reasons for them, are disclosed.

 

                  Copies of this report are available on the Company's website, www.legendaryinvestments.co.uk.

 

Contact:

               

Legendary Investments Plc 

Gavin Preston

020 8205 4923

Northland Capital Partners Ltd

(Nominated Adviser and Broker)

Gavin Burnell / Rod Venables

020 7492 4750

 

 


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