Geo Genesis Group Limited / Ticker: GEOP / Market: PLUS
30 June 2008
Geo Genesis Group Limited (`Geo Genesis' or the `Group')
Interim Results
Geo Genesis Group Limited, an emerging markets advisory and investment company,
announces its results for the six months ended 31 March 2008.
Chairman's Statement
This has been a busy period for the Group following its flotation on PLUS in
April, during which we have strengthened relationships with existing clients
and formed new strategic associations.
Geo Genesis was established to generate revenue from and acquire equity
positions in investee companies, advisory clients or assets within emerging
markets with an initial focus on China. We believe that there are numerous
opportunities in emerging markets for international investors and companies,
and that, due to the combined financial and professional services experience of
the Directors, the Group will be able to take advantage of such opportunities
by building on and solidifying its existing network of contacts based in
emerging market countries.
During the six month period, we made substantial progress in extending the
number of clients and client targets. We anticipate that the fruit of such
efforts, in the form of revenue and profit generation, will be collected during
the second half of this year and the first half of 2009.
Amongst other activities, we formed a strategic partnership with the Qingdao
office of Bank of Communications, China's first state-owned shareholding
commercial bank, to provide comprehensive financial services to joint clients,
which provides us with additional exposure to interesting, undervalued
companies that may require our services.
Additionally, our strategic partners, Hiking Group Co. Ltd, a large collective
group which was formed by five trading companies at provincial level, has
referred to Geo Genesis five of its potential investment companies as initial
advisory and investment projects. We have also taken steps toward the
establishment of the first of our fund management companies, following the
appointment of a Nominated Advisor for a fund raising and listing of CPPE, the
China Private Equity Management Company.
The first six months reflect the costs associated with implementation of the
business plan and have resulted in an operating loss of US$1,118,466. A
substantial non-cash charge against retained earnings in the amount of
US$418,210 was taken as a result of the issuance of options and warrants to key
employees and strategic associate of the Group. Exceptional costs of $428,977
also occurred as a result of the private placing and the listing of the Group's
shares on PLUS.
Whilst difficult market conditions have been experienced worldwide, with a
strong team in place and an extensive network of strategic partnerships, we
remain confident of providing value added services to our clients, sourcing
exciting, undervalued investments and achieving our internal year end
objectives. China is a very exciting place to operate in and I believe we are
ideally positioned to take advantage of the commercial potential in what is
soon to be the world's largest economy.
Marc Koplik
Chairman
GEO GENESIS GROUP LTD AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 MARCH 2008
Notes Six months From 2 April
to 31 March 2008 to 30 Sept 2007
(unaudited) (audited)
$ $
Revenue 102,977 56,294
Operating expenses (374,256) (133,288)
Administrative expenses (428,977) -
Share option charge 5 (418,210) -
Operating (loss) (1,118,466) (76,994)
Finance costs (73) (151)
Finance income 9,641 1,382
Net loss before taxation (1,108,898) (75,763)
Taxation - -
Net loss after taxation (1,108,898) (75,763)
Earnings per share
Basic and diluted; cents per 4 (1.68) (0.31)
share
In accordance with IAS 33 and as the Group has reported a loss for the period,
the share options and warrants are not dilutive.
GEO GENESIS GROUP LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2008
Note As at As at
31 March 2008 30 Sept 2007
(unaudited) (audited)
$ $
ASSETS
Non-current assets
Other intangible assets 14,644 -
Property, plant and equipment 51,583 38,953
Total non-current assets 66,227 38,953
Current assets
Trade and other receivables 87,122 72,019
Prepaid expenses 2,481 -
Cash and cash equivalents 1,932,123 307,337
Total current assets 2,021,726 379,356
TOTAL ASSETS 2,087,953 418,309
EQUITY AND LIABILITIES
Current liabilities
Trade and other payables 126,337 57,015
Total liabilities 126,337 57,015
Equity
Share capital 3 6,773 6,420
Share premium account 2,719,929 428,582
Share option reserve 418,210 -
Translation reserves 1,365 2,055
Retained earnings (1,184,661) (75,763)
Total equity 1,961,616 361,294
TOTAL EQUITY AND LIABILITIES 2,087,953 418,309
GEO GENESIS GROUP LTD AND SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 MARCH 2008
Six From 2 April
months to 30 Sep
to 31 March 2007
2008 (audited)
(unaudited) $
$
Operating activities
Operating (loss) (1,118,466) (76,994)
Adjustments for
Depreciation and amortization 6,568 1,802
Share option charge 418,210 -
(693,688) (75,192)
Working capital adjustments
(Increase)/decrease in receivables (17,584) 50,879
Increase/(decrease) in trade and other payables 69,322 (55,859)
Net cash used in operating activities (641,950) (80,172)
Investing activities
Interest received 9,568 1,231
Acquisition of intangible and other assets (14,644) -
Purchases of property and equipment (19,198) (1,601)
Acquisition of subsidiary - 300,294
Net cash flow/(used) in investing activities (24,274) 299,924
Financing activities
Increase in issued capital 2,291,700 86,050
Net cash from financing activities 2,291,700 86,050
Net increase in cash and cash equivalents 1,625,476 305,802
Cash and cash equivalents at beginning of period 307,337 -
Foreign exchange translation differences (690) 1,535
Cash and cash equivalents at end of period 1,932,123 307,337
GEO GENESIS GROUP
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2008
Accumulated Issued Share Share Foreign Total
losses capital premium option currency
reserves reserve $
$ $ $
$ $
Loss for the (1,108,898) (1,108,898)
financial period
Issuance of 353 2,291,347 2,291,700
shares
Foreign exchange (690) (690)
reserve
Share options 418,210 418,210
reserve
Net change in (1,108,898) 353 2,291,347 418,210 (690) 1,627,854
shareholders'
equity
Shareholders' (75,763) 6,420 428,582 - 2,055 361,294
equity brought
forward as at 30
Sep 2007
Shareholders' (1,184,661) 6,773 2,719,929 418,210 1,365 1,961,616
equity at
31 March 2008
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2008
1. Basis of preparation
The interim financial statements for the period 1 October 2007 to 31 March 2008
has been prepared on the basis of the accounting policies set out in the Plus
Admission Document dated September 2007.
The interim financial statements are unaudited and do not constitute statutory
accounts. The results for the 6 months ended 30 September 2007 do not
constitute statutory accounts and have been extracted from the Group's Plus
Admission Document, which contain an unqualified Audit Report.
The Group has not presented any comparative information as the parent company
was incorporated on 2 April 2007.
The consolidated financial information is presented in US Dollars unless
otherwise stated.
The interim financial statements for the six months ended 31 March 2008 was
approved by the Directors on 27 June 2008.
2. Segmental information
Segment reporting by geographical location follows for the period ended 31
March 2008 :
United China Bermuda Marshall Total
States Islands
$ $ $ $ $
Revenue 105,690 (2,713) - - 102,977
Operating expenses (166,210) (104,044) (11,220) (86,214) (367,688)
Depreciation and (6,568) - - (6,568)
amortisation
Administrative (256,131) - - (172,846) (428,977)
expenses
Finance costs (33) (40) - - (73)
Finance income 9,641 - - - 9,641
Share option charge - - - (418,210) (418,210)
Net (loss) (307,043) (113,365) (11,220) (677,270) (1,108,898)
3. Called up share capital
a) Authorised
31 March 2008 30 September
2007
$
$
Authorised
350,000,000 ordinary shares of 0.0001c each 35,000 35,000
(2007: 350,000,000 Ordinary shares of 0.0001c
each)
Allotted, issued and fully paid
67,725,692 ordinary shares of 0.0001c each 6,773 6,420
(2006: 64,200,000 Ordinary shares of 0.0001c
each)
b) Share issues during the period
Date of issue Nominal Market Number of Nominal Share
value per value per shares value of premium
share US$ share issued issue increase
US$ US$ US$
3 December 2007 0.0001 0.65 100,000 10 64,990
6 December 2007 0.0001 0.65 50,000 5 32,495
28 November 2007 0.0001 0.65 50,000 5 32,495
20 November 2007 0.0001 0.65 100,000 10 64,990
16 November 2007 0.0001 0.65 100,000 10 64,990
27 December 2007 0.0001 0.65 200,000 20 129,980
22 November 2007 0.0001 0.65 200,000 20 129,980
21 December 2007 0.0001 0.65 340,000 34 220,966
4 January 2008 0.0001 0.65 78,000 8 50,692
14 January 2008 0.0001 0.65 2,307,692 231 1,499,769
3,525,692 353 2,291,347
4. Basic and diluted loss per ordinary share
The calculation of basic loss per share is based on loss after taxation of
$1,108,898 (30 September 2007: $75,763 loss) and on 65,900,428 ordinary shares
(30 September 2007: 24,172,929), being the weighted average number of shares in
issue during the period.
In accordance with IAS 33, and as the Group has reported a loss for the period,
diluted earnings per share is not included.
5. Share based payments
Share Options
Number Weighted Weighted
of shares average average
exercise remaining
price per contractual
share life
(years)
Balance at 1 August 2007- - - -
exercisable
Options granted in the year- 7,595,000
exercisable
Balance at 31 March 2008 - 7,595,000 5p 2.73
exercisable
Balance at 30 September 2007 - - - -
exercisable
The fair value of the share options granted has been calculated using the
Black-Scholes option-pricing model individually applied to each option granted.
The inputs into the model were as follows:
Issued on
9 January 2008
Share price 7p
Exercise price 5p
Expected volatility 22%
Expected life 3 years
Risk free rate 5%
The expected volatility represents management's best estimate of volatility
given the lack of historical information available regarding share price
volatility.
6. Post balance sheet events
On 8 May 2008 the Company was admitted to the Plus Market in the United Kingdom
at a price of 35p per share giving the Company a total market capitalisation of
£23.7m.
The directors hope that this listing will raise the profile of the Company and
advance business activities in both China and other emerging markets.
END
