Mediterranean Moorings plc

February 27, 2009 06:39 ET

Preliminary results for the period ended 30 September 2008

                                      MEDITERRANEAN MOORINGS PLC
                              ("Mediterranean Moorings" or the "Company")

Business Highlights in the period

    -       Completed the acquisition of four moorings and marina property in November 2007, as agreed off-
        plan in March 2007, for a total consideration of EURO 4,166,400 (including interest and taxes).

    -       Assignment of one mooring in October 2007, satisfying one quarter of the initial investment
        together with related debt finance.


I am pleased to be able to make this report to you as Chairman of the Company.

Review of activities
The  Company  was  admitted  to  PLUS  Markets  on 27 February  2007  for  the  purpose  of  acquiring
Mediterranean  yacht moorings and/or other property within marina developments off  plan  and  selling
them  on at a profit.  In November 2007, the Company completed the acquisition of four moorings,  four
garages  and  eight parking spaces at Marina Genova Aeroporto for a total consideration of €4,166,400.
The  moorings  were  secured  off  plan as the marina was under construction  and  were  funded  by  a
combination of loan notes and bank finance.  Upon completion, the Company agreed to assign one of  the
moorings  for  a  consideration of €1,050,161 inclusive of bank finance,  effectively  satisfying  one
quarter of the initial investment and related debt finance in the four moorings.

The  moorings are held in the Company's 100% owned subsidiary, Genoa Moorings Limited, a company based
in  Gibraltar.  At the reporting date, Genoa Moorings Limited had no assets or liabilities other  than
those relating to the moorings, the related finance and group balances.

The  Directors  continue  to seek buyers for the moorings however to date no  sale  has  been  secured
despite the efforts of its marine agents.  The Directors monitor the market and note that moorings  in
other  marinas in nearby parts of the Mediterranean appear to be both selling and holding their market
value, and, after a detailed investigation of the marina market and marina agents in the Mediterranean
area  around  Genoa,  the Directors have recently placed two of the moorings with another  marina  and
yacht  agent.   Accordingly,  the Directors are hopeful of stimulating more  buying  interest  in  the
Company's assets.

The  cost of holding the moorings has been partially offset by rental income totalling £49,616  during
the  year,  most  of  which accrues over the busy summer months.  Reports from the  marina  management
company confirm satisfactory winter rentals, usually covering longer periods but at lower daily rates.

Financial Overview
At  30  September  2008,  the shareholders' deficit was £172,319 and cash  balances  were  £594.   The
Directors estimate that the market value of the moorings is significantly in excess of their  carrying
value  in  the  financial  statements but have valued them at cost in  accordance  with  the  relevant
accounting standards.

Revenues  comprise the proceeds from the assignment of one of the moorings and rental income received.
Administrative  expenses  comprise  the overhead expenses of a PLUS  Markets-traded  company  and  the
maintenance  costs of the moorings.  Interest is payable on debt finance relating to the moorings  and
convertible and non-convertible loans used to provide the Group with working capital.  The loss before
tax and loss per share for the year amounted to £345,995 and 0.09p respectively.  The Directors do not
propose to declare a dividend.

On  13  March  2008,  the Company agreed a facility of £120,000 with Griffin Two  Limited  by  way  of
unsecured  convertible loan notes.  The loan notes are due for repayment after one year and have  been
drawn  in full.  Griffin Two Limited has agreed to defer redemption of these loan notes and a  further
£440,000 of unsecured convertible loan notes due to be redeemed on 27 February 2009 until the  earlier
of the sale of the moorings and 13 March 2010.

The  Directors  are continuing their efforts to secure sales of the moorings and are  hopeful  that  a
satisfactory  disposal  of at least one of the Company's moorings will be secured  during  the  coming

Mike Nash

                                                                     Year ended       21.09.06 to
                                                                      30.09.08          30.09.07
                                                                    (unaudited)        (audited)
                                                                         £                  £
REVENUE                                                               879,098                 -
Cost of sales                                                        (829,482)                -
                                                                     _________         _________
GROSS PROFIT                                                           49,616                 -
Administrative expenses                                              (222,406)         (139,715)
                                                                     _________         _________
LOSS FROM OPERATIONS                                                 (172,790)         (139,715)
Finance revenue                                                           270             3,605
Finance costs                                                        (173,475)          (22,500)
                                                                     _________         _________
LOSS BEFORE TAX                                                      (345,995)         (158,610)
Taxation                                                                    -                 -
                                                                     _________         _________
LOSS FOR THE PERIOD                                                  (345,995)         (158,610)
                                                                     _________         _________
Basic and diluted loss per share                                       (0.09)p           (0.52)p

                                                                     30.09.08          30.09.07
                                                                    (unaudited)       (audited)
                                                                         £                £
Current assets                                                                                      
Inventories                                                         2,510,500                -
Trade and other receivables                                            28,014         1,916,341
Cash and cash equivalents                                                 594             4,556
                                                                      _______           _______
                                                                    2,539,108         1,920,897
Current liabilities                                                                    
Trade and other payables                                             (128,047)       (1,299,190)
Bank overdrafts                                                           (44)               -
Borrowings                                                           (624,169)               -
Finance leases                                                        (93,239)               -
                                                                     ________          ________
                                                                     (845,499)       (1,299,190)
                                                                     ________          ________
Net current assets                                                  1,693,609           621,707
Non-current liabilities                                                                 
Borrowings                                                            (50,363)         (472,500)
Finance leases                                                     (1,815,565)               -
                                                                      _______           _______
NET (LIABILITIES)/ASSETS                                             (172,319)          149,207
                                                                     ________          ________
Issued share capital                                                  202,869           195,833
Share premium account                                                 118,573           100,984
Shares to be issued reserve                                            11,000            11,000
Translation reserve                                                      (156)               -
Retained losses                                                      (504,605)         (158,610)
                                                                     ________          ________
SHAREHOLDERS' (DEFICIT)/FUNDS                                        (172,319)          149,207
                                                                     ________          ________

                                                                     Year ended       21.09.06 to
                                                                      30.09.08         30.09.07
                                                                     (unaudited)       (audited)
                                                                          £                £
Cash flow from operating activities                                                    
Loss before taxation                                                 (345,995)         (158,610)
Adjusted for:                                                                          
Interest income                                                          (270)           (3,605)
Interest expense                                                      173,475            22,500
Increase in inventories                                            (2,510,500)                -
Decrease/(increase) in trade and other receivables                                     
                                                                     1,888,327         (613,803)
Increase in trade and other payables                                 1,255,844           25,190
                                                                      ________          ________
Net cash inflow/(outflow) from operating                                               
activities                                                             460,881         (728,328)
Cash flows from investing activities                                                   
Purchase of inventories                                               (667,109)               -
Assignment of moorings                                                 164,095                -
Bank interest received                                                     270            3,605
Bank interest paid                                                     (38,015)               -
                                                                      ________          ________
Net cash (outflow)/inflow from investing                                               
activities                                                            (540,759)           3,605
                                                                      ________          ________
Cash flows from financing activities                                                   
Issue of shares                                                             -           575,000
Expenses of share issues                                                    -          (267,183)
Loans received                                                          50,000                -
Issue of loan notes                                                    100,000          421,462
Capital element of finance leases                                      (74,128)               -
                                                                      ________          ________
Net cash inflow from financing activities                               75,872          729,279
                                                                      ________          ________
Net (decrease)/increase in cash and cash                                               
equivalents                                                             (4,006)           4,556
Cash and cash equivalents at 01.10.07                                    4,556                -
                                                                      ________          ________
Cash and cash equivalents at 30.09.08                                      550            4,556
                                                                      ________          ________



Basis of preparation of the financial statements
The  Directors have prepared cashflow forecasts for the Group for the next 12 months which  show  that
additional  funding of £240,000 will be required to fund the lease payments on the  moorings  and  the
running costs of the Group in the event that no moorings are sold during the year.

Subsequent to the agreement to purchase 4 moorings in Marina Genova Aeroporto the company assigned one
mooring  together  with related finance releasing the funds paid as a deposit on  the  plot.   However
since  completion of the acquisition of the remaining 3 moorings in November 2007 no further  moorings
have been sold.

To date Griffin Two Limited, a major shareholder of the company and a company in which V Nicholls is a
director,  has provided sufficient funding to enable the company to meet its liabilities as they  fall
due.   At  the  year  end amounts due to Griffin Two Limited totalled £652,557 of which  £624,169  was
advanced against convertible loan notes.

The convertible loans are due for redemption between 27 January 2009 and 13 March 2009 however Griffin
Two  Limited  has confirmed that it will not require the loans to be repaid until the earlier  of  the
Group's receipt of funds from the assignment of further moorings and 13 March 2010.  Furthermore since
the year end Griffin Two Limited has subscribed for 5,000,000 of new ordinary shares in the company at
a  price  of  0.75 pence per share raising a total of £37,500 and advanced a further £79,000  in  non-
convertible loans.

Griffin Two Limited has indicated that it will provide the additional funding required by the Group on
the basis of the cashflow forecasts prepared by the Directors however no formal loan facility exists.

The  Directors have obtained details of the values of moorings of a similar size and location  to  the
moorings  held  by the group which indicate that the current market value of each mooring  is  in  the
region of Euros 1,600,000.   In the event that additional funding cannot be obtained from Griffin  Two
Limited or any other source the Directors are confident that a reduction in sales price would lead  to
a  sale  of one of the moorings.  The current asking price is significantly in excess of the  original
purchase  price of the moorings and while a reduction in price would reduce the group's profit  margin
it would release sufficient funds to enable the company to meet its liabilities as they fall due.

On  this basis the Directors consider it appropriate to prepare the financial statements on the  going
concern basis.

The  audit  report will contain an emphasis of matter paragraph highlighting the above  circumstances.
The auditors' opinion is not to be qualified in this respect.

Notes to the financial information

1.      The  calculation of loss per share is based on the loss on ordinary activities after  taxation
        of £345,995 (2007 - £158,610) and the weighted average number of shares of 39,482,792 (2007  -
        30,521,079) in issue during the period.  Due to the loss incurred in the period under review, the
        dilutive securities have no effect as at 30 September 2008.

2.      While  the financial information included in this announcement has been computed in accordance
        with International Financial Reporting Standards (IFRS), this announcement does not itself contain
        sufficient information to comply with IFRS.  The full financial statements of the company will be
        prepared in accordance with IFRS, International Accounting Standards and their interpretations issued
        or adopted by the International Accounting Standards Board as adopted for use in the European Union.

3.      The  financial  information has not been audited or reviewed by the auditors.  This  financial
        statement does not constitute statutory accounts within the meaning of Section 240 of the Companies
        Act 1985 (the "Act").

4.      The Directors have not declared a dividend for the period.

5.      This  statement  was approved by the Board of Directors on 27 February 2009.  Copies  of  this
        statement will be available free of charge from the Company's Registered Office at Hilden Park House,
        79 Tonbridge Road, Hildenborough, Kent  TN11 9BH.

Registered No. 05942947


Vince Nicholls                                    01732 836 180
PLUS Corporate Adviser                                         
Gary Miller                                                    
Fisher Corporate plc                              020 7388 7000
Investor Relations                                             
Melissa Gilmour                                   01732 836 180

Contact Information

  • Mediterranean Moorings plc