Gas Turbine Efficiency plc Preliminary Results for the Year to 31 December 2005.LONDON London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. -- Gas Turbine turbine, rotary engine that uses a continuous stream of fluid (gas or liquid) to turn a shaft that can drive machinery. A water, or hydraulic, turbine is used to drive electric generators in hydroelectric power stations. Efficiency plc ("GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) " or "the Company"), a leading supplier of advanced high pressure gas turbine cleaning systems, announces its financial results for the year ended 31 December December: see month. 2005 which have been prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System . Financial Highlights --Revenues increased 112% to $5.3m (2004: $2.5m) --Gross margin remained stable --Revenues from industrial sector up 185% to $3.7m (2004: $1.3m) --Increased aviation revenues by 45% to $1.6m (2004: $1.1m) --Reduced EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become deficit to $0.3m (2004: $1.1m) excluding the impact of IFRS and one-off (1) One at a time. CD-ROM recorders (CD-R drives) are commonly called one-off machines because they write one CD-ROM at a time. (2) Only once. Software that is written to solve a specific problem only one time is sometimes called a one-off. costs --Basic and fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share of $0.05 --Cash and cash equivalents amounted to $4.7m as at 31 December --Raised $9.3m before expenses from admission to AIM in December 2005 Operating Highlights --Sales in EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. region rose 83% to $4.4m (2004: $2.4m) --US non-aviation revenues increased 10-fold to $0.9m --Extended exclusive aviation contract with Pratt & Whitney's subsidiary EcoPower to 2014 with options through to 2019, guaranteeing yearly minimum royalties Not to be confused with Royal family. Royalties (sometimes, running royalties) are usage-based payments made by one party (the "licensee") to another (the "licensor") for ongoing use of an asset, most typically an intellectual property (IP) right. to GTE --Established three EcoPower aviation hubs hubs - hub in US and started shipments to aviation service markets in Asia and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). --Strengthened management team with appointment of Steven Ste´ven n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. Zwolinski as Chief Executive Officer and Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs Wagner as Chief Technology Officer --New product range launched for power generation turbines exceeding 80MW --Delivered seven large-scale large-scale adj. 1. Large in scope or extent. 2. Drawn or made large to show detail. large-scale Adjective 1. wide-ranging or extensive 2. systems to US power generation segment --Completed first marine application to US Navy Commenting on the results Steven Zwolinski, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Gas Turbine Efficiency, said: "We made great strides in 2005 to set the building blocks in place for long term success. The combination of a world class technology capability, IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. capital injection, strong OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and partners, patent portfolio, and global leadership team provide a rock solid foundation for the future." Overview Gas Turbine Efficiency announces its maiden MAIDEN. The name of an instrument formerly used in Scotland for beheading criminals. results since admission to AIM with a strong operating performance that heralds an exciting period of growth for the Company. Although the period under review includes only two weeks' trading since the flotation flotation or froth flotation Most widely used process for extracting many minerals from their ores. The method separates and concentrates ores by altering their surfaces so that they are either repelled or attracted by water. , GTE made great progress during 2005 to transition itself from a niche niche: see ecology. niche Smallest unit of a habitat that is occupied by an organism. A habitat niche is the physical space occupied by the organism; an ecological niche is the role the organism plays in the community of organisms found in the player to a global designer and supplier of advanced gas turbine cleaning systems for the aviation, power generation, marine and oil & gas sectors. It has supplied systems to global OEMs such as Pratt & Whitney, Rolls-Royce Rolls-Royce is a British brand, it may refer to:
Revenues increased by 112% to $5.3m (2004: $2.5m) reflecting strong growth in the industrial segment with the first sales of GTE's large-scale systems to all three segments of US power generation market. GTE's continued success will be measured by its ability to deliver solid customer value in highly dynamic commercial, technological, and geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge environments. The Company's systems enable gas turbine operators to achieve substantial savings in their energy costs, reduce emissions emissions npl → émissions fpl emissions npl → Emissionen pl and cut maintenance downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. . The worldwide growth in aviation markets, especially with the growth of low-cost airlines The following is a list of low cost carriers: Asia Bangladesh
In power generation, gas turbines are replacing conventional coal technology with both greater efficiency and a reduction in atmospheric atmospheric /at·mos·pher·ic/ (at?mos-fer´ik) of or pertaining to the atmosphere. atmospheric of or pertaining to the atmosphere. discharges. Fuel costs, often geared directly to the oil price, have all risen. This has impacted on power plant economics, making GTE's wash systems a compelling investment proposition to boost efficiency and operators' bottom line. As a result, the Company has a long term opportunity to provide advanced solutions into a large and growing market. The global installed base for civilian CIVILIAN. A doctor, professor, or student of the civil law. and military aircraft engines is estimated at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 120,000 units while the number of industrial turbines currently in use is estimated at more than 40,000 units. Recognizing the opportunities, the Company took several decisive actions, discussed below, during 2005 to build a strong platform for growth. In particular, GTE's management was strengthened with the appointment of Steven Zwolinski as Chief Executive Officer. As the former CEO of General Electric Company's Global Wind Energy business, he brings more than 20 years' experience in the industry and is the driving force behind GTE's long term strategy. Operating review GTE successfully completed an IPO on the London Stock Exchange's AIM market in late December, raising $9.3m (GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 5.4m) before expenses principally for a planned global roll-out of its current technology, secure qualification with leading OEMs and fund expansion into further geographical markets. Longer term, the AIM listing provides a currency for potential acquisitions, a means to reward employees through stock incentive schemes and enhances GTE's global profile. Industrial applications Revenues from industrial applications rose 185% to $3.7m (2004: $1.3m) partly as a result of significant sales into the US power generation market. GTE shipped its first seven US-designed and packaged systems for large industrial gas turbines. This was an important step in demonstrating our systems in the 80MW and larger turbine class. The US shipments were also significant because these sales were made into all three of the major power generation customer segments - independent power producer (IPP (Internet Printing Protocol) A protocol for printing and managing print jobs over the Internet using HTTP. Initially conceived by Novell, Xerox and others, the IETF made it a standard in 2000 that includes authentication and encryption. See printing protocol and LPD. ), utility and municipal. The Company also completed its first sales to contractors for the US Navy - for use on gas turbine propulsion systems Noun 1. propulsion system - a system that provides a propelling or driving force system - instrumentality that combines interrelated interacting artifacts designed to work as a coherent entity; "he bought a new stereo system"; "the system consists of a motor and a . Aviation systems Revenues from aviation systems increased by 45% to $1.6m (2004: $1.1m), reflecting rising royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. and services fees as more and more aircraft operators use GTE's advanced "on-wing" wash solutions to improve engine efficiency, cut fuel and maintenance costs. The key highlight in this area was the extension of GTE's contract with Pratt & Whitney's EcoPower business through 2014, with options through 2019. Exclusive to both parties for aircraft wash equipment, this long term agreement includes guaranteed minimum royalty fees to GTE each year and provides a solid cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to for a sector that is expected to continue to represent 30-40% of total revenues. During 2005, three service hubs were established in the US and orders were received for equipment for expansion into EMEA regions. Management In January January: see month. 2006 Thomas Wagner was appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. as GTE's Chief Technology Officer. He brings 30 years of industry experience with General Electric and in-depth in-depth adj. Detailed; thorough: an in-depth study. in-depth Adjective detailed or thorough: an in-depth analysis knowledge of gas turbine systems and services. As part of the Company's overall technical and development strategy Per Alvestig, with more than 20 years' in technology leadership roles with Saab, was recruited. In addition, GTE strengthened its senior management team in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. with about half of its leadership team now based in the US. Financial Review Revenues increased by 112% to $5.3m (2004: $2.5m) reflecting strong growth in industrial applications, with the first sales of GTE's large-scale systems into the US power generation market, and an uplift in demand for aviation systems in key territories. The EMEA region increased its contribution to overall revenues by 83% to $4.3m (2004: $2.4m) while revenues from North America rose 10-fold to $0.9m. Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. amounted to $2.2m (2004: $1.1m) reflecting costs associated with the settlement of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. in October October: see month. 2005 and referred to in the admission document. In addition, the Company incurred exceptional listing costs. In total, costs of $1.9m were incurred in connection with the Company's listing on AIM and the associated fund raising. In accordance with IFRS 32, the costs incurred have been deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. from equity to the extent that they relate to the issue of new shares and the balance charged to the income statement. The impact of exceptional costs on EBITDA is set out below:
Analysis of EBITDA ('000 US$)
2005 2004
-------- --------
Operating loss ($2,228) ($1,063)
Depreciation and amortisation $167 $25
EBITDA before exceptional items ($2,061) ($1,038)
Exceptional items
- IPO costs $846
- Share-based payments $53
- Settlement of litigation and related costs $870
--------
$1,769
Underlying EBITDA result ($292) ($1,038)
The tax credit for the year of $0.9m (2004: $0.1m) reflects the recognition of a deferred tax asset in respect of trading losses The following contains a list of trading losses which eventually forced major corporations to go bankrupt or restructure parts of their organisation. This list is not exhaustive. as the directors are confident of utilising these losses in the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future. Net loss amounted to $1.3m ($2004: $0.9m). Basic and fully diluted loss per share amounted to $0.05 (2004: $0.03). Cash and cash equivalents as at 31 December 2005 were $4.7m reflecting proceeds of $9.3m before expenses from the Company's IPO. Outlook The Company is continuing to build on its strong performance last year. Our strategic partnership with Pratt & Whitney, which guarantees a significant level of royalty revenues, has extended our reach into new geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. territories in aviation. In industrial segments, good progress continues to be made to deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. relationships with major OEMs. We made great strides in 2005 to set the building blocks in place for long term success. The combination of a world class technology capability, IPO capital injection, strong OEM partners, patent portfolio, and global leadership team provide a rock solid foundation for the future.
GAS TURBINE EFFICIENCY PLC
CONSOLIDATED STATEMENTS OF INCOME
In thousands of US dollars, except share data
December 31 December 31
Note 2005 2004
---- ----------- -----------
Continuing operations
Revenue 1 5,265 2,475
Own work capitalized 112 138
Other operating income 141 19
----------- -----------
5,518 2,632
Operating expenses
Raw materials and consumables (1,823) (888)
Other external costs 2 (3,714) (1,454)
Personnel costs (2,020) (1,317)
Depreciation and write-downs
of tangible and intangible assets (167) (25)
Other operating expenses (22) (11)
----------- -----------
Operating loss (2,228) (1,063)
Other gains and losses 31 99
Interest receivable 1 2
Interest payable (89) (5)
----------- -----------
Loss before tax (2,285) (967)
Taxation 3 944 69
LOSS FOR THE YEAR ATTRIBUTABLE TO EQUITY
HOLDERS OF THE PARENT (1,341) (898)
=========== ===========
Loss per share
From continuing operations
Basic and diluted loss per share (USD) (0.05) (0.03)
Weighted average number of ordinary
shares in issue 26 250 500 25 750 500
Weighted average number of ordinary
shares for diluted loss per share 26 569 063 25 750 500
GAS TURBINE EFFICIENCY PLC
CONSOLIDATED BALANCE SHEETS
In thousands of US dollars, except share data
December 31 December 31
Note 2005 2004
---- ----------- -----------
ASSETS
Intangible non-current assets
Capitalized expenditure for research and
development 135 152
Patents 183 59
ERP-System 85 128
Goodwill 4 1,084 1,304
----------- -----------
1,487 1,643
Tangible non-current assets
Equipment, tools, fixtures and fittings 178 132
----------- -----------
Financial non-current assets
Investments 152 148
----------- -----------
Deferred tax assets 5 1,102 7
----------- -----------
Total non-current assets 2,919 1,930
Current assets
Inventories 743 741
----------- -----------
Current receivables
Accounts receivable-trade 1,843 1,284
Income taxes recoverable - 140
Other receivables 2,080 68
Prepaid expenses and accrued income 631 47
----------- -----------
4,554 1,539
Cash and cash equivalents 4,705 137
----------- -----------
Total current assets 10,002 2,417
TOTAL ASSETS 12,921 4,347
=========== ===========
GAS TURBINE EFFICIENCY PLC
CONSOLIDATED BALANCE SHEETS
In thousands of US dollars, except share data
December 31 December 31
Note 2005 2004
---- ----------- -----------
EQUITY AND LIABILITIES
Equity
Share capital 156 95
Share premium 8,356 -
Capital reserve 2,636 2,636
Share based payment reserve 53 -
Translation reserves 601 1,038
Retained earnings (2,295) (953)
----------- -----------
Total equity attributable to equity
holders of the parent 9,507 2,816
Non-current liabilities
Financial liabilities 94 134
Deferred tax liabilities 5 66 76
----------- -----------
160 210
Current liabilities
Financial liabilities 1,292 236
Accounts payable - trade 904 787
Income tax liability 31 -
Other liabilities 142 37
Accrued expenses 885 261
----------- -----------
3,254 1,321
TOTAL EQUITY AND LIABILITIES 12,921 4,347
=========== ===========
GAS TURBINE EFFICIENCY PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
In thousands of US dollars
December 31 December 31
2005 2004
----------- -----------
Cash flow from operating activities
Loss after financial items (2,285) (966)
Adjustments to operating cash flows 157 (108)
----------- -----------
Cash flow from operating activities before
changes in working capital (2,128) (1,074)
Cash flow from changes in working capital
increase in inventories (99) (232)
increase in receivables (1,342) (67)
increase in liabilities 1,058 424
Income taxes received/(paid) 16 (126)
----------- -----------
Net cash used by operating activities (2,495) (1,075)
Cash flows from investing activities
Sale of financial assets - 42
Purchase of intangible fixed assets (231) (155)
Purchase of tangible fixed assets (55) (51)
----------- -----------
Net cash used by investing activities (286) (164)
Cash flows from financing activities
New share issue 5,371 548
Loans taken 1,945 154
----------- -----------
Net cash generated by financing activities 7,316 702
Net change in cash and cash equivalents 4,535 (537)
Cash and cash equivalents beginning of the
year 137 677
Effect of foreign exchange rate changes 33 (3)
Cash and cash equivalents end of the year 4,705 137
=========== ===========
GAS TURBINE EFFICIENCY PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
In thousands of US dollars
Consolidated statement of changes in equity for the year ended 31
December 2005
Ordinary Share Capital
Shares premium reserves
---------------------------
Balance at January 1, 2004 95 - 2,038
Issue of share capital - - 598
Exchange differences arising on
translation of foreign operations. - - -
Net loss for the year - - -
-------- -------- ---------
Balance at December 31, 2004 95 - 2,636
New share issue, 18,000,000 shares at
nominal GBP 0.002 61 9,263 -
IPO costs - (1 038) -
Recognition of share-based payments - - -
Share premium - 131 -
Exchange differences arising on
translation of foreign operations. - - -
Net loss for the year - - -
-------- -------- ---------
Balance at December 31, 2005 156 8,356 2,636
======== ======== =========
Share
based Total
payment Translation Retained shareholders
reserve reserve earnings Equity
----------------------------- ------------
Balance at January 1, 2004 - 787 (56) 2,864
Issue of share capital - - - 598
Exchange differences
arising on translation of
foreign operations. - 251 - 251
Net loss for the year - - (897) (897)
-------- ----------- -------- ------------
Balance at December 31,
2004 - 1,038 (953) 2,816
New share issue,
18,000,000 shares at
nominal GBP 0.002 - - - 9,324
IPO costs - - - (1,038)
Recognition of share-based
payments 53 - - 53
Share premium - - - 131
Exchange differences
arising on translation of
foreign operations. - (437) - (437)
Net loss for the year - - (1,342) (1,342)
-------- ----------- -------- ------------
Balance at December 31,
2005 53 601 (2,295) 9,507
======== =========== ======== ============
Note 1 Segment information
For management purposes, the Group is currently organised into the
following two operating divisions:
Eastern and Western hemisphere. These divisions are the basis on
which the Group reports its primary and only segment information.
December 31, 2005
Total for
Western Eastern Eliminations group
------- ------- ------------ ---------
Revenue
External sales 917 4,347 - 5,265
Inter-segment sales - 254 (254) -
Segment result (1,711) (483) (33) (2,228)
------- ------- ------------ ---------
Other gains and losses 31
Other interest income and
similar profit/loss items 1
Interest expense for group
companies (89)
---------
Loss before tax (2,285)
Income tax credit 944
---------
Loss for the year (1,341)
=========
Other information
Capital additions 19 267 - 286
Depreciation, amortisation
and write downs (4) (163) - (167)
Impairment losses recognised
in loss (28) - - (28)
Impairment losses and non-
cash expenses 57 100 - 157
Balance sheet
Assets:
Segment assets: 3,709 9,213 - 12,921
Consolidated total assets 12,921
Liabilities:
Segment liabilities: 2,809 605 (160) 3,254
Consolidated total Liabilities 3,254
Note 1 Segment information/Continued
December 31, 2004
Total for
Western Eastern Eliminations group
------- ------- ------------ ---------
Revenue
External sales 84 2,391 - 2,475
Inter-segment sales - 237 (237) -
Segment result (807) (233) (23) (1,063)
------- ------- ------------ ---------
Other gains and losses 99
Other interest income and
similar profit/loss items 2
Interest expense for group
companies (5)
---------
Loss before tax (967)
Income tax credit 7 62 - 69
---------
Loss for the year (898)
=========
Other information
Capital additions - 369 - 369
Depreciation and amortisation - (25) - (25)
Impairment losses and non-
cash expenses (107) - - (107)
Balance sheet
Assets:
Segment assets: 361 3,986 - 4,347
Unallocated assets
Consolidated total assets 4,347
Liabilities:
Segment liabilities: 315 1,217 (211) 1,321
Consolidated total Liabilities 1,321
Note 2 Other external costs
December 31 December 31
2005 2004
----------- -----------
Legal Claim (500) -
Legal Costs (370) -
IPO & admission Costs (846) -
Other external costs (1,998) (1,454)
(3,714) (1,454)
=========== ===========
Legal proceedings surrounding GTE Inc's termination of its agency
agreement with Antoni International Inc, one of GTE's US sale agents,
were settled on 26 October 2005 by means of a formal settlement
agreement involving the payment of 500 TUSD. In addition legal costs
of 370 TUSD in respect of this case have been incurred.
In total, costs of $1.9m were incurred in connection with the
Company's listing on AIM and the associated fund raising. In
accordance with IFRS 32, the costs incurred have been deducted from
equity to the extent that they relate to the issue of new shares and
the balance charged to the income statement.
Note 3 Taxation
December 31 December 31
2005 2004
----------- -----------
Current tax (149) (0)
Deferred tax (Note 5) Assets 1,096 69
Deferred tax (Note 5) Liabilities (3) -
----------- -----------
Tax credit for the year 944 69
=========== ===========
The total credit for the year can be
reconciled to the accounting profit as
follows:
December 31 December 31
2005 2004
----------- -----------
Loss before tax (2,285) (966)
Tax at the domestic tax rate in Sweden of 28% 640 271
Tax effect of expenses that are not
taxable/deductible in determining taxable
profit (31) (30)
Tax effect of income that is not
taxable/deductible in determining taxable
profit 15 29
Tax effect of utilisation of tax losses not
previously recognised 309 -
Tax effect of not recognised tax losses (297) (272)
Deferred tax booked directly against balance
sheet. (Taxable untaxed reserves not included
in P/L) - 71
Effect of different tax rates of subsidiaries
operating in other jurisdictions 308 -
----------- -----------
Tax credit and effective tax rate for the year 944 69
=========== ===========
Note 4 Intangible assets - Goodwill
Cost December 31, December 31,
2005 2004
------------ ------------
As at 1 January 1,304 1,185
Purchases - -
Disposals - -
Exchange differences (220) 119
As at 31 December 1,084 1,304
Impairment
As at 1 January - -
Impairment loss recognized - -
As at 31 December 1,084 1,304
============ ============
Goodwill is allocated to the Group's cash-generating units (CGUs)
identified according to country of operation.
Western - -
Eastern 1,084 1,304
1,084 1,304
============ ============
The Group tests goodwill annually for impairment or more frequently if
there are indications that goodwill might be impaired.
The recoverable amounts of the CGUs are determined from value in use calculations. The key assumptions for the value in use calculations are those regarding the discount rates, growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. and expected changes to selling prices and direct costs during the period. Management estimates discount rates using pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta rates that reflect current market assessments of the time value of money and the risks specific to the CGUs. Changes in selling prices and direct costs are based on past practices and expectations of future changes in the market. The Group prepares cash flow forecasts derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the most recent financial forecasts approved by the Board of Directors. The view of the Board of Directors is that the future growth of the Company significantly exceeds the currently booked goodwill asset of TUSD TUSD Tucson Unified School District TUSD Torrance Unified School District TUSD Tracy Unified School District (California) TUSD Tehachapi Unified School District (California) 1,084. The rate used to discount the forecast cash flows from the business related to Sweden Sweden, Swed. Sverige, officially Kingdom of Sweden, constitutional monarchy (2005 est. pop. 9,002,000), 173,648 sq mi (449,750 sq km), N Europe, occupying the eastern part of the Scandinavian peninsula. is 12 per cent.
Note 5 Deferred tax
The following are the major deferred tax liabilities and assets
recognised by the Group, and the movements thereon, during the
current and prior reporting periods.
Deferred tax assets
-------------------
Tax Loss Carry-
Inventory forward Total
-------------------------------------------
At January 1, 2004 - - -
Charged/(credited) to
the income statement 7 - -
At 31 December 2004 7 - 7
Charged/(credited) to
the income statement 15 1,080 1,096
At 31 December 2005 22 1,080 1,102
======
Deferred tax liabilities Intangible assets Untaxed reserves Total
------------------------ -------------------------------------------
At January 1 2004 (7) (126) (133)
Charged/(credited) to
the income statement (9) 71 62
Exchange differences (1) (5) (5)
At 31 December 2004 (17) (59) (76)
Charged/(credited) to
the income statement 3 3
Exchange differences (2) 10 8
At 31 December 2005 (16) (49) (66)
At the balance sheet date December 31 2005, the Group has unused tax
losses of 2,770 TUSD (2004: estimated at 1,102 TUSD) available for
offset against future profits. These tax loss carryforwards expire
as follows.
Year Amount
---- ------
2018 1,102
2019 1,168
On December 31, 2005, the total tax loss carryforwards generated
deferred tax assets of TUSD 1,080 (Nil). The tax loss carryforwards
can be utilised to reduce future taxable income. Their future
utilisation does not mean a lower tax charge for the Group.
6. Significant accounting policies The financial statements have been prepared in accordance with International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). . The financial statements have been prepared on the historical cost basis, except for the revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of certain financial instruments. Basis of consolidation The consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In preparation for the admission of the Company, which was incorporated on 17 March 2005, onto the AIM market of the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. , restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the ownership of the companies, which now comprise To embrace, cover, or include; to confine within; to consist of. In the law governing patents—grants of an exclusive right or privilege to make, use, or sell an invention or product for a term of years—the term comprise the Group headed by the Company was completed on 18 May 2005 when shares in the Company were issued to the shareholders of GTE Holding Corporation Inc. in exchange for the entire share capital in GTE Holding Corporation Inc. As ultimate ownership of the Company acquired did not change as a consequence of this reconstruction Reconstruction, 1865–77, in U.S. history, the period of readjustment following the Civil War. At the end of the Civil War, the defeated South was a ruined land. , the transaction does not constitute a business combination as defined by IFRS 3 (Business Combinations) and, accordingly, will not be accounted for at that date using acquisition accounting principles. Goodwill does not arise on this transaction and book values are not adjusted to fair value at the date of the reconstruction. For the period ending 31 December 2005, the Group has applied "pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. " accounting principles in the preparation of its financial statements. These financial statements include the Group's results from 1 January 2005 to 31 December 2005. The other significant accounting policies adopted by the Group in preparation of the accounts are consistent with the accounting policies disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in the AIM Admission Document dated 15 December 2005. Basis of Preparation The financial information set out in this announcement does not constitute the Company's statutory accounts for the year ended 31 December 2005 and these accounts have not yet been approved, audited or filed. Copies of the 2005 Annual Report, which will be posted to shareholders in April 2006, may be obtained from the date of posting from the registered office of the Company at 5th Floor, Alder alder (ôl`dər), name for deciduous trees and shrubs of the genus Alnus of the family Betulaceae (birch family), widely distributed, especially in mountainous and moist areas of the north temperate zone and in the Andes. Castle, 10 Noble Street, London EC2V 7 QJ. This statement, which has been agreed with the auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together , was approved by the Board on 31 March 2006. |
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