RNS Number:2243K
Capital Ideas PLC
19 December 2007


CAPT.L

                               CAPITAL IDEAS PLC
                       ("Capital Ideas" or the "Company")


            Interim results for the six months ended 31 October 2007


Highlights:

* Total investments held increased to 12

* Net assets increased by 73% to �975,000 (2006: �565,000), equivalent to 
  0.4p per share (2006: 0.2p)

* Profit before tax of �217,000 (2006: �217,000)

* Earnings per ordinary share of 0.07p (2006: 0.07p)

* Successful investment in, and partial disposal of holding in, BritFilms
  Group plc realising a profit of �43,750

* Group restructured to take advantage of what the board believes will be
  excellent opportunities in the remainder of the year


Renwick Haddow, Chairman, said:

"The board is pleased with the progress made by the Company to date and believes
that it is well placed to take advantage of investment opportunities it has
identified. I look forward to updating shareholders further in due course."


For more information, please contact:

Renwick Haddow           Capital Ideas plc               020 7623 3345
Daniel Bate              WH Ireland Limited              0161 832 2174
Richard Morrison         SVS Securities plc              020 7638 5600



Chairman's Statement

I am pleased to announce that for the six months to 31 October 2007, the Company
achieved a profit before tax of �217,000 (31 October 2006: �217,000). This
represents earnings per ordinary share of 0.07p (31 October 2006: 0.07p). Net
assets have grown 73% from �565,000 to �975,000, resulting in an increase in net
asset value per ordinary share from 0.2p to 0.4p.

The interim financial information reflects the transition period to
International Financial Reporting Standards. The impact of this transition is
explained in Note 6.

Operating Review

The Company continues to increase the number of transactions in which it is
involved. During the period, Capital Ideas acted in an advisory capacity in the
restructuring and refinancing of two companies, Smart Implant plc and Revo World
Limited. In addition to fees earned for its consultancy services, Capital Ideas
was granted a 1.4% stake in Smart Implant plc. Capital Ideas was also granted an
option to subscribe for ordinary shares in Revo World Limited representing 2.5%
of the share capital.

In October, the Company announced that it had invested �50,000 in BritFilms
Group plc ("BritFilms"), receiving 17,111,111 ordinary shares in the company,
representing approximately 7.5% of its issued share capital. The Company
subsequently made a disposal of 1,944,444 of these ordinary shares for a net
consideration of �50,000, representing a profit of �43,750. We still retain a
6.5% stake in BritFilms, which operates in the online film channel arena and is
looking to expand into the social networking market. At the disposal price, our
remaining holding in BritFilms would be valued at �390,000.

Recent Activity

Following the end of the six month period, the Company has been involved in
several transactions, including its recently announced investment of �50,000 in
Primary Water plc ("Primary Water"), acquiring 1,428,571 ordinary shares at 3.5p
each. This investment was part of a larger fundraising being undertaken by
Primary Water in which Capital Ideas also acted in an advisory capacity. For its
services, the Company received a further 17,889,667 ordinary shares (also at
3.5p) in lieu of arrangement fees totalling �626,138. Following the investment,
Capital Ideas holds a total of 19,318,238 ordinary shares in Primary Water,
representing 5.24% of its issued share capital. Primary Water has stated its
intention to list on AIM in due course.

Capital Ideas also recently announced that it had agreed terms to acquire a
number of investments from Emerging UK Investments plc for a total consideration
of �36,500. These acquisitions bring considerable value to the Company, having
been made at a discount to their aggregate market value.

In addition, Capital Ideas recently announced a reorganisation of the group's
structure with the creation of a number of subsidiaries with a view to
broadening its approach. This is to take advantage of what your board believes
to be a favourable environment resulting from current market conditions which
have seen, and we believe will continue to see, an upturn in attractive
turnaround investment opportunities.

At the end of November, I was delighted to welcome Anita Madhas to the board as
Finance Director. We are looking to strengthen the senior management team
further by making a number of appropriate executive director appointments in the
near future.

Outlook

The board is pleased with the progress made by the Company to date and believes
that it is well placed to take advantage of investment opportunities it has
identified. I look forward to updating shareholders further in due course.


Renwick Haddow
Chairman                                     19 December 2007



CAPITAL IDEAS PLC
Condensed income statement
for the six months ended 31 October 2007

                          Note    Six months       Six months    Year ended 30
                                    ended 31         ended 31       April 2007
                                October 2007     October 2006
                                   Unaudited        Unaudited          Audited
                                        �000             �000             �000

Revenue                      2           340              261              503

Cost of sales                             (4)              (1)             (11)
                                      --------         --------         --------

Gross profit                             336              260              492

Administrative expenses                  (36)             (28)             (42)
                                      --------         --------         --------

Profit from operations
before exceptional items                 300              232              450

Loss on disposal/impairment 
of assets                                (83)             (21)             (96)
                                      --------         --------         --------

Profit from operations                   217              211              354

Finance costs                              -                -                -

Finance income                             -                6                7
                                      --------         --------         --------

Profit before taxation                   217              217              361

Tax credit                   3           (52)             (46)             (63)
                                      --------         --------         --------

Profit attributable
to equity holders                         165              171              298
                                      ========         ========         ========

Earnings per share      
Basic and fully diluted      4          0.07p            0.07p            0.13p
                                      ========         ========         ========


All of the activities of the company are classed as continuing.



CAPITAL IDEAS PLC
Condensed Balance sheet
at 31 October 2007

                                Note    Six months    Six months Year ended 30
                                          ended 31      ended 31    April 2007
                                      October 2007  October 2006
                                         Unaudited     Unaudited       Audited
                                              �000          �000          �000
ASSETS
Non-current assets
Investments                        5           778           460           730
                                            --------     ---------      --------
                                               778           460           730
                                            --------     ---------      --------

Current assets
Trade and other receivables                    340           189            84
Cash and cash equivalents                       42            16             3
                                            --------     ---------      --------
                                               382           205            87
                                            --------     ---------      --------
Total Assets                                 1,160           665           817
                                            ========     =========      ========

LIABILITIES
Current liabilities
Trade and other payables                        38            46            28
Current tax liabilities                        147            54            97
                                            --------     ---------      --------
                                               185           100           125

                                            --------     ---------      --------
Total Liabilities                              185           100           125
                                            ========     =========      ========

Net Assets                                     975           565           692
                                            ========     =========      ========
EQUITY
Capital and reserves attributable
to equity holders
Called up share capital                      1,461         1,410         1,410
Share premium account                        1,160         1,093         1,093
Retained earnings                           (1,646)       (1,938)       (1,811)
                                            --------     ---------      --------
Total equity                                   975           565           692
                                            ========     =========      ========



CAPITAL IDEAS PLC
Condensed Statement of changes in shareholders' equity
For the six months ended 31 October 2007

                               Share         Share        Retained       Total
                              Capital      Premium        Earnings        �000
                                 �000         �000            �000

Balance at 1 May 2006           1,410        1,093         (2,109)         394
Profit for the period               -            -            171          171
                                -------      -------        -------       ------
Balance at 31 October 2006      1,410        1,093         (1,938)         565
Profit for the period               -            -            127          127
                                -------      -------        -------       ------
Balance as 30 April 2007        1,410        1,093         (1,811)         692
Profit for the period               -            -            165          165
Share Issue                        51           67              -          118
                                -------      -------        -------       ------
Balance at 31 October 2007      1,461        1,160         (1,646)         975
                                =======      =======        =======       ======



CAPITAL IDEAS PLC
Condensed Cash flow statement
for the six months ended 31 October 2007

                                         Six months    Six months Year ended 30
                                           ended 31      ended 31    April 2007
                                       October 2007  October 2006
                                         Unaudited     Unaudited       Audited
                                              �000          �000          �000
Cash flows from operating activities:
Profit/(loss) for the period                   165           171           298
Tax charge/(credit)                             52            46            63
Finance income                                   -            (6)           (7)
Movement on disposal/impairment of
investments                                    151            (3)           60
Share based payments                          (161)         (239)         (414)
Loans and debtors written
off/converted into equity                        -           (38)         (215)
Decrease/(increase) in trade
and other receivables                         (256)           89           197
(Decrease)/increase in trade
and other payables                              10           (10)           (5)
                                            --------      --------      --------
Cash generated from /(used
in) operations                                 (39)           10           (23)
Tax paid                                         -             -             -
                                            --------      --------      --------
Net cash generated from/
(used in) operating activities                 (39)           10           (23)
                                            --------      --------      --------

Cash flows from investing activities:
Interest received                                -             6             7
Proceeds from sale of investments               32             -            35
Purchase of investments                        (72)          (16)          (32)
                                            --------      --------      --------
Net cash generated from
investing activities                           (40)          (10)           10
                                            --------      --------      --------

Cash flows from financing activities:
New share issue                                118             -             -
                                            --------      --------      --------
Net cash generated from
financing activities                           118             -             -
                                            --------      --------      --------

Net increase/(decrease) in cash
and cash equivalents                            39             -           (13)
Cash and bank at beginning of period             3            16            16
                                            --------      --------      --------
Cash and cash equivalents at
end of period                                   42            16             3
                                            ========      ========      ========



CAPITAL IDEAS PLC
Notes to the interim report

1 BASIS OF PREPARATION

The financial statements for the year ending 30 April 2008 will be the first
results to be prepared on the basis of International Accounting Standards,
International Financial Reporting Standards and International Accounting
Standards Board adopted for use in the EU (called "IFRS" in this document).

These interim results for the six months ended 31 October 2007 have been
prepared using the historical cost and fair value conventions on the basis of
the accounting policies set out below, which the Company expects to apply to its
financial statements for the year ending 30 April 2008 which are to be prepared
in accordance with IFRS. Whilst this interim report has been prepared in
accordance with IFRS, it is not in accordance with IAS 34 and therefore is not
fully compliant with IFRS.

Reconciliations and descriptions of the effect of the transition from UK GAAP to
IFRS on Capital Ideas' equity and its net income and cash flows are provided in
Note 6.

The interim results have been prepared under the historical cost convention.
Areas where other bases are applied are identified in the accounting policies
below.

The financial information set out in this interim report does not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985. The
Company's statutory financial statements for the year ended 30 April 2007
prepared under UK GAAP, have been filed with the Registrar of Companies. The
auditor's report on those financial statements was unqualified and did not
contain a statement under Sections 237 (2) and (3) of the Companies Act 1985.

The results for the six months ended 31 October 2007 were approved by the board
on 30 November 2007.

Fixed asset investments

Fixed asset investments are deemed to be available-for-sale financial assets and
as such are measured at cost or fair value subject to impairment testing.
Valuation is assessed by the directors in accordance with the Valuation
Guidelines published by the British Venture Capital Association on the following
basis:

   1. Investments in private companies are valued according to their stage
      of development. Early stage investments, being those in immature companies
      including seed, start-up and early stage situations, are valued at cost 
      less any provision considered necessary, until no longer viewed as being 
      early stage or unless a significant arm's length transaction involving an 
      independent third party occurs at a materially different valuation. 
      Investments in more mature companies having a maintainable earnings trend 
      and from which an exit can reasonably be foreseen are periodically 
      revalued by reference to an assessment of open market value. If the fair 
      value of the asset cannot be measured reliably, the asset is carried at 
      cost.

   2. Quoted investments are valued using the quoted market price, discounted if
      the shareholding is significant in relation to the issued share capital of
      a small quoted company.

An impairment review is undertaken by reference to the activities and additional
funding and investment opportunities of investee companies after the balance
sheet date. Permanent diminutions are recognised in the income statement
together with other valuation changes in the investments valued at cost. Any
reversal of impairment losses are recognised through equity.

Taxation

The charge for taxation is based on the taxable profit or loss for the period
and takes into account taxation deferred because of timing differences between
the treatment of certain items for taxation and accounting purposes. Current 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 tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date where transactions or
events that result in an obligation to pay more, or a right to pay less, tax in
the future have occurred at the balance sheet date. Timing differences are
differences between the Company's taxable profits and its results as stated in
the financial information that arises from the inclusion of gains and losses in
tax assessments in periods different from those in which they are recognised in
the financial information.

A net deferred tax asset is regarded as recoverable and therefore recognised
only when, on the basis of all available evidence, it can be regarded as more
likely than not that there will be suitable taxable profits from which the
reversal of the underlying timing differences can be deducted.

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



2 REVENUE

The main activity of the Company remains that of investment in companies and
hence reported revenue in the period represents proceeds profits on the part or
full disposal of such investments together with value received on the provision
of related services. Where services are settled via share based payments the
value of the service performed is treated as revenue.



3 TAXATION

                           Six months         Six months       Year ended 30
                             ended 31           ended 31          April 2007
                         October 2007       October 2006
                                 �000               �000                �000
Current tax:
UK corporation tax                 52                 54                  76
Overprovision in prior year         -                 (8)                (13)
                               --------           --------             --------

Total current tax                  52                 46                  63
                               ========           ========             ========



4 EARNINGS PER ORDINARY SHARE

The calculation of basic earnings per ordinary share is based on profit of
�165,000 (six months ended 31 October 2006: �171,000, year ended 30 April 2007:
�298,000) and ordinary shares of 250,304,164 (31 October 2006: 236,130,555
shares, 30 April 2007: 236,130,555) being the weighted average number of
ordinary shares in issue during the period. The 0.9p deferred shares in
existence do not have rights to either dividends or the assets of the Company
and have therefore been discounted from the weighted average calculation.

The profit for the period and the weighted average number of ordinary shares for
the purposes of calculating the fully diluted earnings per ordinary share are
the same as for the basic earnings per ordinary share calculation. This is
because exercise of the outstanding warrants would have no effect on the
calculated earnings per ordinary share and would therefore not be dilutive.



5 INVESTMENTS

                      Six months             Six months          Year ended 30
                        ended 31               ended 31             April 2007
                    October 2007           October 2006
                            �000                   �000                   �000

Listed investments             -                      -                     30

Unlisted investments         778                    460                    700
                          --------               --------               --------

                             778                    460                    730
                          ========               ========               ========



6 EXPLANATION OF TRANSITION TO IFRS

This is the first period that the Company has presented its financial statements
under IFRS. The last financial statements under UK GAAP were for the period
ended 30 April 2007 and the date of transition to IFRS was therefore 1 May 2006,
being the start date of the last period.

As at 1 May 2006 (date of transition to IFRS) the transition to IFRS had no
effect on the total equity of �394,000.

As at 31 October 2006 (date of last UK GAAP interim accounts) the transition to
IFRS has increased total equity by �182,000 to �565,000, due to additional
investments of �239,000 being recognised in respect of share based payments and
an additional tax liability of �57,000. The revaluation reserve relating to
changes in investment value has been taken to profit and loss, with no impact on
overall equity. As at 30 April 2007 (date of last UK GAAP financial statements)
the transition to IFRS has increased total equity by �186,000 to �692,000, again
due to these additional investments of �239,000 being recognised in respect of
share based payments less an additional tax liability adjustment of �53,000 due
to additional revenue recognised and deferred tax adjustments.

Similarly, the transition to IFRS, in the period to 31 October 2006, has caused
the net loss under UK GAAP of �20,000 to change to a net profit under IFRS of
�171,000 due to the recognition of share based payment revenue of �239,000,
movement in investment value of �9,000 recognised in the profit and loss less
taxation adjustments of �57,000. Similarly the transition in the period to 30
April 2007 has caused the net profit under UK GAAP of �108,000 to increase to
one of �298,000 under IFRS due to additional revenue recognition of �248,000 in
total less taxation adjustments of �58,000.



7 COPIES OF INTERIM REPORT

Copies of this statement will be available to the public free of charge from the
Company's registered office: 4 Sovereign Court, Graham Street, Birmingham B1 3JR
and on its website, www.capitalideasplc.com.



CAPITAL IDEAS PLC
Independent review report to CAPITAL IDEAS PLC

Introduction

We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31
October 2007 which comprise a condensed income statement, condensed balance
sheet, condensed statement of changes in equity, condensed cash flow statement
and associated notes numbered 1 to 7. We have read the other information
contained in the half-yearly financial report and considered whether it contains
any apparent misstatements or material inconsistencies with the information in
the condensed set of financial statements.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.

Scope of Review

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 31 October 2007 is not prepared, in all material
respects, in accordance with the Accounting Standards Board statement
"Half-yearly financial reports".


Rochesters
Chartered Accountants

19 December 2007

No 3 Caroline Court
Caroline Street
Birmingham
B3 1TR






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

END
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