For immediate release                                                    21 May 2009

ALLTRUE INVESTMENTS PLC

REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2008

The Company announces its audited results for the year ended 31 December 2008. Extracts are set out below:

Chairman's Statement

In the year to 31 December 2008 Group revenue rose to £2,147,000 from £1,116,000 in 2007 (excluding the contribution from Information Exchange Limited ('IXL') which was sold in October 2007). The current operating subsidiaries are Falcon Securities (UK) Ltd ('Falcon') and Montague Pitman Stockbrokers Ltd ('MPS'). Overall Group operating loss (excluding exceptional items) was £191,000 compared to an operating profit of £64,000 in 2007. 

With regard to the continuing operations, turnover within Falcon increased significantly largely as a result of activity through MPS under the Appointed Representative arrangements. Falcon recorded an operating loss of £51,159 (2007 - Profit £95,492), which included a bad debt write off of £24,000.  

MPS now has an established customer base to which it offers a range of advisory services both in small capitalisation and main market listed securities. MPS also provides CFD trading services to more sophisticated retail clients. Revenue in MPS increased to £1,982,000 from £853,000 in 2007.

Since the disposal of IXL, the Group has made a provision of £219,000 against the future repayment of loan under the sale agreement.

The second part of the year has seen the markets fall but revenue in the later part of the year increased for both Falcon and MPS. MPS is undertaking a regulatory review of systems and sales procedures and has set aside £300,000 as collateral against any potential expenses that may arise.

The accounts are available on the website www.alltrueinvestments.co.uk and a copy has been sent to Shareholders today.

For further information, contact:

Leo Knifton, Chairman, Alltrue Investments plc on 020 7251 3762

Roland Cornish, Beaumont Cornish Limited on 020 7628 3396

  

ALLTRUE INVESTMENTS PLC
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2008
		2008	2008	2007	2007
	Notes	£'000	£'000	£'000	£'000
Revenue	2		2,147		1,812
Cost of sales			(-)		(476)
			─────────		─────────
Gross Profit			2,147		1,336
Administrative expenses		(2,339)		(1,272)
Provision against loans		(219)		-
		─────────		─────────
			(2,558)		(1,272)
			─────────		─────────
Operating (loss)/ profit			(411)		64
Finance costs	7		(21)		(20)
Finance income	7		15		20
Loss on disposal of subsidiary			-		(390)
			─────────		─────────
Loss before tax	8		(417)		(326)
Tax	9		-		-
			─────────		─────────
Loss after tax			(417)		(326)
Minority interests			-		(4)
			─────────		─────────
Loss for the period	23		(417)		(330)
			═══════		═══════
Attributable to:
Equity holders of the parent company
			(417)		(326)
			═══════		═══════
Loss per share - basic and diluted
	11		(0.17p)		(0.13p)
			═══════		═══════
There is no difference between basic and diluted loss per share.

  

ALLTRUE INVESTMENTS PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

AS AT 31 DECEMBER 2008

	Share capital £'000	Share premium £'000	Other Reserves £'000	Retained Loss £'000	Total  Equity £'000
As at 1 January 2008	244	732	1,350	(581)	1,745
Losses after tax for the year	-	-	-	(417)	(417)
	─────────	────────	─────────	─────────	─────────
As at 31 December 2008	244	732	1,350	(998)	1,328
	═══════	═══════	═══════	═══════	═══════

	Share capital £'000	Share premium £'000	Other Reserves £'000	Retained Loss £'000	Total  Equity £'000
As at 1 January 2007	244	732	1,350	(251)	2,075
Losses after tax for the year	-	-	-	(330)	(330)
	─────────	────────	─────────	─────────	─────────
As at 31 December 2007	244	732	1,350	(581)	1,745
	═══════	═══════	═══════	═══════	═══════

Share capital (deferred and ordinary) is the amount subscribed for shares at nominal value.

Share premium represents the excess of the amount subscribed for share capital over the nominal value of the respective shares net of share issue expenses. 

Other reserves represent a merger reserve.

Retained loss represents the cumulative loss of the Group attributable to equity shareholders. 

  

ALLTRUE INVESTMENTS PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2008
	Notes		2008			2007
Assets			£'000			£'000
Non Current assets
Intangible assets	12		1,125			1,125
Property plant & equipment	13		81			53
			──────			──────
			1,206			1,178
			──────			──────
Current assets
Financial Assets	15		56			54
Trade and other receivables	16		244			459
Cash and cash equivalents	17		513			536
			──────			──────
			813			1,049
Liabilities
Current Liabilities
Trade and other payables	18		(441)			(228)
			──────			──────
Net current assets			372			821
			──────			──────
Non Current Liabilities
Financial liabilities - borrowings
Interest bearing loans and borrowings	19		(250)			(250)
			──────			──────
NET ASSETS			1,328			1,749
			═════			═════
Shareholders' Equity
Called up share capital	20		244			244
Share premium	21		732			732
Merger Reserve	21		1,350			1,350
Retained earnings	23		(998)			(581)
			──────			─────
Total equity due to Alltrue Investment Plc			1,328			1,745
Minority Interests			-			4
			──────			──────
Total Equity	23		1,328			1,749
			═════			═════

  

ALLTRUE INVESTMENTS PLC
BALANCE SHEET
AS AT 31 DECEMBER 2008
	Notes		2008		2007
Assets			£'000		£'000
Non Current assets
Financial assets	14		1,343		1,343
Trade and other receivables			-		240
			──────		──────
			1,343		1,583
			──────		──────
Current assets
Trade and other receivables	16		26		10
Cash and cash equivalents	17		14		52
			──────		──────
			40		62
Liabilities
Current Liabilities
Trade and other payables	18		(94)		(89)
			──────		──────
Net current (liabilities)			(54)		(27)
			──────		──────
NET ASSETS			1,289		1,556
			═════		═════
Shareholders' Equity
Called up share capital	20		244		244
Share premium	21		732		732
Other reserve	22		1,350		1,350
Retained earnings	22		(1,037)		(770)
			──────		──────
Total Equity			1,289		1,556
			═════		═════

  

ALLTRUE INVESTMENTS PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2008

	Notes		2008	2007
			£'000	£'000
Cash flows from operating activities
Cash generated from operations	24		56	31
			──────	──────
Net cash from operating activities			56	31
			──────	──────
Cash flows from investing activities
Purchase of tangible fixed assets			(73)	(50)
Interest received			15	20
Interest paid			(21)	(20)
			──────	──────
Net cash outflow from investing activities			(79)	(50)
			──────	──────
Cash flows from financing activities
New loan in period			-	250
			──────	──────
Net cash from financing activities			-	250
			──────	──────
(Decease) /Increase in cash and cash equivalents			(23)	231
Cash and cash equivalents at beginning of year	25		536	305
			──────	──────
Cash and cash equivalents at end of year	25		513	536
			═════	═════

  

ALLTRUE INVESTMENTS PLC

COMPANY CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2008

	Notes		2008	2007
			£'000	£'000
Cash flows from operating activities
Cash consumed by operations	24		(39)	(138)
			──────	──────
Net cash from operating activities			(39)	(138)
			──────	──────
Cash flows from investing activities
Interest received			1	7
			──────	──────
Net cash from investing activities			1	7
			──────	──────
(Decrease) in cash and cash equivalents			(38)	(131)
Cash and cash equivalents at beginning of year	25		52	183
			──────	──────
Cash and cash equivalents at end of year	25		14	52
			═════	═════

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2008

2    Accounting policies

    

    The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied consistently to all the years presented, unless otherwise stated.

2.1    Basis of preparation

    These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs and IFRIC interpretations) issued by the International Accounting Standards Board (IASB), as adopted by the European Union, and as applied in accordance with the provisions of the Companies Act 2006 applicable to companies preparing their accounts under IFRS. The financial statements have been prepared under the historical cost convention.

        

    The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statement, are disclosed within the accounting policies note.

• Interpretations effective in 2008

        IFRIC 14, 'IAS 19 - The limit on a defined benefit asset, minimum funding requirements and their interaction', provides guidance on assessing the limit in IAS 19 on the amount of the surplus that can be recognised as an asset. It also explains how the pension asset or liability may be affected by a statutory or contractual minimum-funding requirement. This interpretation does not have any impact on the Company's financial statements, as the Company does not have any pension liabilities.

        IFRIC 11, 'IFRS 2 - Group and treasury share transactions', provides guidance on whether share-based transactions involving treasury shares or involving group entities (for example, options over a parent's shares) should be accounted for as equity-settled or cash-settled share-based payment transactions in the stand-alone accounts of the parent and group companies. These issues are not relevant to these financial statements.

    (b)    Standards and amendments early adopted by the Company

        The Company has not early adopted any standards or amendments.  

    (c)    Interpretations effective in 2008 but not relevant

        The following interpretation to published standards is mandatory for accounting periods beginning on or after 1 January 2008 but is not relevant to the Company's operations:

• IFRIC 12, 'Service concession arrangements'; and,

• IFRIC 13, 'Customer loyalty programmes'.

• FRIC 16, 'Hedges of a net investment in a foreign operation' (effective from 1 October 2008).

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2008

2.    ACCOUNTING POLICIES (Continued…)

    (d)    Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Company

        The following standards and amendments to existing standards have been published and are mandatory for the Company's accounting periods beginning on or after 1 January 2009 or later periods, but the Company has not early adopted them:

• IAS 1 (Revised), 'Presentation of financial statements' (effective from 1 January 2009).

• IAS 39 (Amendment), 'Financial instruments: Recognition and measurement' (effective from 1 January 2009).

• There are a number of minor amendments to IFRS 7, 'Financial instruments: Disclosures', IAS 8, 'Accounting policies, changes in accounting estimates and errors', IAS 10, 'Events after the reporting period', IAS 18, 'Revenue' and IAS 34, 'Interim financial reporting'.

    (e)    Interpretations and amendments to existing standards that are not yet effective and not relevant for the Company's operations

        The following interpretations and amendments to existing standards have been published and are mandatory for the Company's accounting periods beginning on or after 1 January 2009 or later periods but are not relevant for the Company's operations:

• IFRS 1 (Amendment) 'First time adoption of IFRS', and IAS 27 'Consolidated and separate financial statements' (effective from 1 January 2009).

• IFRS 2 (Amendment), 'Share-based payment' (effective from 1 January 2009).

• IFRS 3 (Revised), 'Business combinations' (effective from 1 July 2009).

• IFRS 5 (Amendment), 'Non-current assets held-for-sale and discontinued operations' (and consequential amendments to IFRS 1, 'First-time adoption')(effective from 1 July 2009).

• IFRS 8, 'Operating segments', (effective from 1 January 2009).

• IAS 1 (Amendment), 'Presentation of financial statements' - 'Puttable financial instruments and obligations arising on liquidation' (effective from 1 January 2009).

• IAS 16 (Amendment), 'Property, plant and equipment' (and consequential amendment to IAS 7, 'Statement of cash flows') (effective from 1 January 2009).

• IAS 19 (Amendment), 'Employees benefits' (effective from 1 January 2009).

• IAS 20 (Amendment), 'Accounting for government grants and disclosure of government assistance' (effective from 1 January 2009).

• IAS 23 (Amendment), 'Borrowing costs' (effective from 1 January 2009).  

• IAS 27 (Amendment), 'Consolidated and separate financial statements' (effective from 1 January 2009).

• IAS 28 (Amendment), 'Investments in associates' (and consequential amendments to IAS32, 'Financial Instruments: Presentation' and IFRS 7, 'Financial instruments: Disclosures') (effective from 1 January 2009).

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2008

2.    ACCOUNTING POLICIES (Continued…)

• IAS 29 (Amendment), 'Financial reporting in hyperinflationary economies' (effective from 1 January 2009).

• IAS 31 (Amendment), 'Interest in joint ventures' (and consequential amendments to IAS 32 and IFRS 7) (effective from 1 January 2009).

• IAS 36 (Amendment), 'Impairment of assets' (effective from 1 January 2009).

• IAS 38 (Amendment), 'Intangible assets' (effective from 1 January 2009).

• IAS 40 (Amendment), 'Investment property' (and consequential amendments to IAS 16) (effective from 1 January 2009).

• IAS 41 (Amendment), 'Agriculture' (effective from 1 January 2009).

• IFRIC 13, 'Customer loyalty programmes' (effective from 1 July 2008).

• IFRIC 15, 'Agreements for construction of real estate' (effective from 1 January 2009).

• The minor amendments to IAS 20 'Accounting for government grants and disclosure of government assistance', and IAS 20, 'Financial reporting in hyperinflationary economies', IAS 40, ' Investment property', and IAS 41, 'Agriculture'.

2.2    Basis of consolidation

    

    Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.

    The Group uses the purchase method of accounting to account for the acquisition of subsidiaries. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of the minority interest. The excess of the cost of acquisition over the fair value of the Group's share of identifiable assets is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the income statement.

    Transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated but considered an impairment indicator of the asset transferred. Accounting policies of subsidiaries have been changed (where necessary) to ensure consistency with the policies adopted by the Group.

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2008

• Revenue Recognition

    Revenue comprises the fair value of the consideration received or receivable for the fees and commission receivable net of settlement fees in respect of services provided in the ordinary course of the Group's activities. Revenue is shown net of value-added tax, returns, rebates and discounts and after eliminating sales within the Group.

• Goodwill

        The goodwill is the difference between the amount paid on the acquisition of Falcon Securities Holdings Limited and the aggregate assets, less amortisation that was charged up to the date of transition to IFRS's. In accordance with IFRS 1 First time adoption of IFRS, the company has elected not to retrospectively apply IFRS 3 Business Combinations to the acquisition of Falcon Securities Holdings Limited, which occurred prior to the date of transition to IFRS's.

    In accordance with IFRS 3 Business Combinations, goodwill is not amortised but reviewed annually for impairment and as such, is stated at cost less any provision for impairment of value. Any impairment is recognised immediately in the income statement and is not subsequently reversed. On acquisition, any goodwill acquired is allocated to cash generating units for the purposes of impairment testing. Where goodwill forms part of a cash generating unit and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation.

2.5    Intangible Fixed Assets ( excluding Goodwill)

            Intangible assets acquired separately are capitalised at cost and those acquired as part of a business combination are capitalised separately from goodwill if the fair value can be measured reliably on initial recognition. The costs relating to internally generated intangible assets are capitalised if the criteria for recognition as assets are met. Other expenditure is charged against income statement in the year in which the expenditure is incurred. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. The useful lives of these intangible assets are assessed to be either finite or indefinite. Where amortisation is charged on assets with finite lives, this expense is taken to the income statement. Useful lives are also reviewed on an annual basis. Intangible assets with indefinite lives are tested for impairment annually, either on an individual or cash generated unit level.

    Website

        Website development costs are valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in equal annual instalments over the estimated useful economic life of 3 years.

2.6    Impairment of non-financial assets

    Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered any impairment are reviewed for possible reversal of the impairment at each reporting date.

    

  

ALLTRUE INVESTMENTS PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2008

2.7    Property Plant & Equipment

        Property, Plant & Equipment are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, at rates between 15% and 33.3% on reducing balances.

    

2.8                Leasing

        Rental payable under operating leases are charged against income on a straight line basis over the lease term.

    Assets held under finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased item, are capitalised at the inception of the lease with the corresponding liability being recognised at the lower of fair value of the leased asset and the present value of the minimum lease payments. Lease payments are apportioned between the reduction of the lease liability and the finance charge in the income statement, so as to achieve a constant rate of interest on the remaining balance of the liability. Assets held under finance leases are depreciated over the shorter of the estimated useful life of the asset and the lease term.

2.9    Cash and cash equivalents 

                Cash and cash equivalents include cash in hand, deposits held at call with banks another short term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet. 

2.10    Share capital

    Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

2.11    Trade Receivables 

    Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation and default or delinquency in payments are considered indicators that the trade receivable is impaired.

    

2.12    Share premium

    

    Share premium represents the excess of the amount subscribed for share capital over the nominal value of these shares net of share issue expenses. 

    

2.13    Financial assets

    Fixed asset investments are stated at cost less provision for diminution in value. 

                            

  

ALLTRUE INVESTMENTS PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2008

2.14    Taxation

    Tax on the profit or loss for the year comprises current and deferred tax.

    Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date together with any adjustment to tax payable in respect of previous years. 

    Deferred tax is provided in full using the balance sheet liability method. Deferred tax is the future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities shown on the balance sheet. Deferred tax assets and liabilities are not recognised if they arise in the following situations: the initial recognition of goodwill; or the initial recognition of assets and liabilities that affect neither accounting nor taxable profit. The amount of deferred tax provided is based on the expected manner of recovery or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at the balance sheet date. The group does not recognise deferred tax liabilities, or deferred tax assets, on temporary differences associated with investments in subsidiaries as it is not considered probable that the temporary differences will reverse in the foreseeable future. It is the group's policy to reinvest undistributed profits arising in group companies. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. The carrying amount of the deferred tax assets are reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered.

2.15    Foreign currency translation

        Monetary assets and liabilities denominated in foreign currencies are translated into sterling at     the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the income statement.

2.16    Share-based payments

            The group has applied the requirements of IFRS 2, Share-based Payments.

    The group issued equity-settled and share-based payments which are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight line basis over the vesting period, based on the Group's value is measured by use of a binominal model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

    

2.17    Critical accounting estimates and assumptions

    The Group makes estimates and assumptions concerning the recovery of its assets and the extent of its liabilities where these are estimated. The resulting accounting estimates will, by definition, rarely equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below.

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2008

2.17    Critical accounting estimates and assumptions (continued…)

    Intangible assets excluding goodwill and plant and equipment are amortised or depreciated over their useful lives. Useful lives are based on management's estimates of the period that the assets will generate revenue, which are periodically reviewed for continued appropriateness. Due to the long lives of assets, changes to the estimates used can result in significant variations in the carrying value.

    The Group assesses the impairment of plant and equipment and intangible assets subject to amortisation or depreciation whenever events or changes in circumstances indicate that the carrying value may not be recoverable. 

    Additionally, goodwill arising on acquisitions is subject to impairment review. The Group's management undertakes an impairment review of goodwill annually or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. 

    The complexity of the estimation process and issues related to the assumptions, risks and uncertainties inherent in the application of the Group's accounting estimates in relation to plant and equipment and intangible assets affect the amounts reported in the financial statements, especially the estimates of the expected useful economic lives and the carrying values of those assets. If business conditions were different, or if different assumptions were used in the application of this and other accounting estimates, it is likely that materially different amounts could be reported in the Group's financial statements.

2.18    Borrowing costs

    Borrowing costs are expensed to the income statement in the period incurred.

2.19    Provisions

    A provision is recognised when:

• the Group has a legal or constructive obligation as a result of a past event; and

• it is probable that an outflow of economic benefits will be required to settle the obligation; and

• the effect is material.

Expected future cash flows are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. 

2.21    Segmental reporting

    A geographical segment is engaged in providing products or services within a particular economic environment that are subject to risks and returns differing from those of segments operating in other economic environments.

    There are no separately reportable business segments.

3    RISK AND SENSITIVITY ANALYSIS  

    The Group's activities expose it to a variety of financial risks: interest rate risk, foreign currency risk, liquidity risk and capital risk. The Group's activities also expose it to market risk and regulatory risk. The Group's overall risk management programme focuses on unpredictability and seeks to minimise the potential adverse effects on the Group's financial performance. The Board reviews key risks on a regular basis and, where appropriate, actions are taken to mitigate the key risks identified.

  

ALLTRUE INVESTMENTS PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2008

3    RISK AND SENSITIVITY ANALYSIS (continued…)  

    a)    Interest rate risk and foreign currency risk

        The Group does not have formal policies on interest rate risk or foreign currency risk. However, the Group's exposure in these areas as at the balance sheet date was minimal.

    b)      Liquidity risk

        The Group prepares periodic working capital forecasts for the foreseeable future, allowing an assessment of the cash requirements of the Group, to manage liquidity risk. The directors have considered the risk posed by liquidity and are satisfied that there is sufficient growth and equity in the Group.

    c)      Capital risk

        The Group's objectives when managing capital are to safeguard the ability to continue as a going concern in order to provide returns for shareholders and benefits to other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

    d)     Market risk

        The performance of securities markets particularly in the UK will have a material impact on trading activity.

4	Employees and Directors					2008	2007
						£'000	£'000
	Wages and salaries					1,042	566
	Social security costs					118	38
						───────	────────
						1,160	604
						═══════	═══════

    During the period company paid director's emoluments of £2,000 (2007 - £51,000). In addition  

    a director was paid £50,000 by a subsidiary company.

    The average monthly number of employees during the period was as follows:-

						2008	2007
	Directors					7	5
	Administration and trading staff					23	14
						───────	───────
						30	19
						═══════	═══════

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2008

 

5.      Segmental Analysis

The Group operates in no other geographical location other than the United Kingdom. There is also no segmental area of operations.

6.	Revenue					2008	2007
						£'000	£'000
	Sales of Services					2,147	1,812
						───────	──────
						2,147	1,812
						═══════	══════

7.	Net Finance Income					2008	2007
						£'000	£'000
	Finance income:
	Bank interest income					15	20
	Finance costs
	On other loan payable within five years					(20)	(20)
	Other					(1)	-
						───────	──────
	Net Finance Income					(6)	-
						═══════	══════

8.	Operating loss					2008	2007
						£'000	£'000
	Depreciation					45	27
	Operating lease payments - Land and buildings					-	70
	Auditors remuneration - audit fees					30	33
	- Non audit fees					2	2
						───────	──────
	Loss on disposal of Information Exchange Limited					-	390
						═══════	══════

    A provision of £219,000 has been made against the loan advanced to Information Exchange Limited in previous years.

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2008

9.	Tax
	As a result of the losses incurred in the year and losses brought forward no tax charge has arisen.
						2008	2007
						£'000	£'000
	Current tax charge					-	-
						══════	══════
	Factors affecting the tax charge
						2008	2007
						£'000	£'000
	Loss on ordinary activities before taxation					(417)	(326)
						══════	═══════
	Loss on ordinary activities before tax multiplied by
	Standard rate of corporation tax at 28% (2007-30%)					(117)	(98)
	Effects of
	Other tax adjustments					117	98
						───────	───────
	Current tax charge/(recovery)					-	-
						═══════	═══════
	Expenses not deductible in determining taxable loss					-	106
	Depreciation					14	(5)
	Other tax adjustments					103	-
						───────	───────
	Tax credit					117	98
						═══════	═══════
	As at 31 December 2008, the group carried forward estimated tax losses of £556,000 (2007 - £367,000). The deferred tax asset on these estimated tax losses at 28% (2007- 28%) would be £157,000 (2007: £103,000) but this has not been recognised due to the uncertainty of its recovery.

10.	Loss for the parent Company
	As permitted by section 230 of the Companies Act 1985, the income statement of the parent company is not presented as part of these financial statements.
			2008	2007
			£'000	£'000
	Loss for the year		267	155
			══════	═══════

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2008

11	Basic and diluted loss per share
	The basic loss per share is calculated by dividing the loss of £417,000 (2007-£326,000 Loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period, which is 244,167,500 (2007: 244,167,500.).  The diluted loss per share is calculated using the weighted average number of shares adjusted to assume the conversion of all dilutive potential ordinary shares. For the year ended 31 December 2008, the diluted loss per share is equivalent to the basic loss per share. The diluted loss per share is calculated using the weighted average number of shares adjusted to assume the conversion of all dilutive potential ordinary shares, which is 244,167,500 (2007: 231,427,774. Therefore for the year ended 31 December 2008, the diluted loss per share is equivalent to the basic loss per share.

12	Intangible assets
	Group	Cost	Amortisation	Net Book Value
	Goodwill	£'000	£'000	£'000
	At 1 January 2008	950	-	950
		──────	──────	───────
	At 31 December 2008	950	-	950
		──────	──────	───────
	Investments
	At 1 January 2008	175	-	175
	Investments in Rubi Limited
		───────	──────	───────
		175	-	175
		───────	──────	───────
	Total
	At 31 December 2008	1,125	-	1,125
		══════	══════	══════

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2008

12	Intangible assets (continued…)
		Cost	Amortisation	Net Book Value
	Goodwill	£'000	£'000	£'000
	At 1 January 2007	1,768	-	1,768
	Written off on disposal of Information Exchange Limited
		(818)	-	(818)
		──────	──────	───────
	At 31 December 2007	950	-	950
		──────	──────	───────
	Investments
	At 1 January 2007
	Acquired on disposal of Information Exchange Limited: 50,000,000 ordinary shares of 0.1p each in Alltrue Investments Plc surrendered by owner of Information Exchange Limited
		175	-	175
		───────	──────	───────
		175	-	175
		───────	──────	───────
	Net book value
	At 31 December 2007	1,125	-	1,125
		══════	══════	══════

	The group assesses at each reporting date whether there is an indication that an asset may be impaired, by considering the net present value of discounted cash flows forecasts. If an indication exists an impairment review is carried out. At the period end, there was no indication of impairment of the value of goodwill or of development costs The directors have also concluded that no amortisation of goodwill is necessary, because its value has been actively maintained since it was acquired.      The development and website intangibles are internally generated.

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2008

13.	Property, Plant and equipment Group	Plant and machinery	Fixtures, Fittings and Equipment	Motor vehicles	Website	Totals
	Cost	£'000	£'000		£'000	£'000
	At 1 January 2008	32	42	-	29	103
	Additions	9	32	19	13	73
	Disposal	-	-	-	-	-
		───────	───────	───────	───────	───────
	At 31 December 2008	41	74	19	42	176
		───────	───────	───────	───────	───────
	Depreciation
	At 1 January 2008	28	13		9	50
	Charge for the year	13	14	3	15	45
	Disposals	-	-	-	-	-
		───────	───────	───────	───────	───────
	At 31 December 2008	41	27	3	24	95
		───────	───────	───────	───────	───────
	Net Book Value
	At 31 December 2008	-	47	16	18	81
		══════	══════	══════	══════	══════

	Property, Plant and equipment	Plant and machinery	Fixtures, Fittings and Equipment	Motor vehicles	Website	Totals
	Cost	£'000	£'000		£'000	£'000
	At 1 January 2007	31	36	-	-	67
	Additions	2	19	-	29	50
	Disposal	(1)	(13)	-	-	(14)
		───────	───────	───────	───────	───────
	At 31 December 2007	32	42	-	29	103
		───────	───────	───────	───────	───────
	Depreciation
	At 1 January 2007	17	13	-	-	30
	Charge for the year	11	7	-	9	27
	Disposals	-	(7)	-	-	(7)
		───────	───────	───────	───────	───────
	At 31 December 2007	28	13	-	9	50
		───────	───────	───────	───────	───────
	Net Book Value
	At 31 December 2007	4	29	-	20	53
		══════	══════	══════	══════	══════

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2008

14	Financial assets
	Company	Shares in group undertakings
	Cost	£'000
	As at 1 January 2008	1,168
		───────
	At 31 December 2008	1,168
		═══════
		Other fixed asset investments
		£'000
	At 1 January 2008	175
		───────
		175
		═══════
	Total
	At 31 December 2008	1,343
		═══════

		Shares in group undertakings
	Cost	£'000
	As at 1 January 2007	1,751
	Additions	1
	Disposals	(584)
		───────
	At 31 December 2007	1,168
		═══════
		Other fixed asset investments
		£'000
	At 1 January 2007	-
	Additions	175
		───────
		175
		═══════
	Net Book Value
	At 31 December 2007	1,343
		═══════

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2008

14	Financial assets

    

    As at 31 December 2008 the aggregate capital and reserves for Falcon Securities Holdings Limited were £328,641 (2007: £328,641) and the profit for the period then ended was £nil (2007: £nil).  

    As at 31 December 2008 the aggregate capital and reserves for Falcon Securities UK Limited were £297,482 (2007: £348,641) and the loss for the period then ended was £51,159. (2007: Profit £95,492).

    As at 31 December 2008 and 2007 the aggregate capital and reserves for Montague Pitman Stockbrokers Limited were deficit of £85,211 (2007 - £12,642) and the loss for the period then ended was £97,851 (2007 - Profit £12,013).

    As at 31 December 2008 the aggregate capital and reserves for Rubi Limited were £24,518 (2007 - £24,518) and the profit/loss for the period then ended was £nil (2007 £nil).

15	Investments					2008	2007
						£	£
	Listed investments					56	54
						═══════	═══════
	The current asset investment represents a holding of 4% Treasury Stock 2009 which is held as a bond on behalf of the company by Jarvis Investment Management Plc.

16.	Trade and other receivables	Group		Company
		2008	2007	2008	2007
		£'000	£'000	£'000	£'000
	Current:
	Trade	144	150	-	-
	Other debtors	39	19	1	5
	Amounts owed in group undertakings	-	-	-	-
	Prepayments	40	50	4	5
		───────	───────	───────	───────
		223	219	5	10
	Non-current
	Amounts owed by former group undertakings	21	240	21	240
		───────	───────	───────	───────
	Aggregate amounts	244	459	26	250
		══════	══════	══════	══════

17.	Cash and Cash equivalents	Group		Company
		2008	2007	2008	2007
		£'000	£'000	£'000	£'000
	Bank accounts	513	536	14	52
		══════	══════	══════	══════

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2008

18.	Trade and other payables	Group		Company
		2008	2007	2008	2007
		£'000	£'000	£'000	£'000
	Current:
	Trade creditors	60	67	4	10
	Other creditors	86	77	-	-
	Amounts owed in to group undertakings	-	-	73	63
	Accrued expenses	295	84	17	16
		───────	───────	───────	───────
	Aggregate amounts	441	228	94	89
		══════	══════	══════	══════

19.	Financial Liabilities - Borrowings (Group)	2008	2007
		£'000	£'000
	Convertible loan notes	150	150
	Secured loans	100	100
		───────	───────
	Aggregate amounts	250	250
		══════	══════
	Analysis of loans
	Wholly repayable within five years	250	250
		══════	══════
	Loan maturity analysis
	In more than two years but not more than five years	250	250
		══════	══════

    The convertible loan notes were issued on 16th February 2007 with a redemption date of 31 January 2012. The loan notes are convertible into 1 Ordinary share of 1p each for every £6 of loan notes. At 31 December 2008 there remained £150,000 of loan notes outstanding. The company accrues interest at the rate of 10% per annum from the investment date of 16 February 2007 until the date on which the convertible notes are converted or up to the redemption date.

    The Company also has £100,000 of secured loan that is not convertible. This loan is acquiring interest at the rate of 10% per annum from the investment date, 16 February 2007, until either the convertible loan notes above are converted or two years from the investment date, whichever is the later. Subsequently the secured loan will accrue interest at 4% per annum until the redemption date of 31 January 2012.

    Both the secured and convertible loans are secured by a debenture containing fixed and floating charges over the assets of the company. All payments of interest and repayment of the secured loan will become payable when the company has sufficient available cash after providing for its working capital requirements as determined by Alltrue Investments Plc, the investor and the executive directors from time to time.

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2008

20	Called up share capital
						Nominal	2008	2007
						value	£'000	£'000
	Authorised
	Number		Class
	500,000,000		ordinary			0.1p	500	500
							═══════	═══════
	Allotted, issued and fully paid
	Number
	244,167,500		Ordinary			0.1p	244	244
							═══════	═══════

There is no charge for share-based payments as the fair values at the date of grant were below the exercise prices:

    The details of the share options are as follows:

	Number of options	Weighted average exercise Price	Number of options	Weighted average exercise Price
		£		£
Outstanding at the beginning of the year	21,000,000	0.005	-	-
Granted	-	-	-	-
Exercise	-	-	-	-
	─────────	─────────	─────────	─────────
Balance at 31 December 2008	21,000,000	0.005	-	-
	═══════	═══════	═══════	═══════

    The fair values of the options granted have been calculated using Black-Scholes model assuming the inputs shown below:

Grant date	Feb 07
Share price at grant date	0.35p
Exercise price	0.5p
Option life in years	6 years
Risk free rate	5.25%
Expected volatility	10%
Expected dividend yield	0%
Fair value of option	0p
	═════

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2008

21	Consolidated Equity Reserves
				Share capital		Share premium	Merger relief reserve
								Totals
				£'000		£'000	£'000	£'000
	At 1 January 2008 and 31 December 2008			244		732	1,350	2,326
				═══════		═══════	═════	═════

221	Company equity reserves
				Retained earnings		Share premium	Merger relief reserve
								Totals
				£'000		£'000	£'000	£'000
	At 1 January 2008			(770)		732	1,350	1,312
	Deficit for the year			(288)		-	-	(288)
				───────		───────	──────	───────
	At 31 December 2008			(1,058)		732	1,350	1,024
				═══════		═══════	══════	═══════

23	Reconciliation of movement in shareholders' funds and reserves	Equity Instruments	Profit and loss account	Totals
		£'000	£'000	£'000
	At 1 January 2008	2,326	(581)	1,745
	Loss for the period	-	(389)	(389)
		─────	─────	─────
	At 31 December 2008	2,326	(970)	1,356
		═════	═════	═════

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2008

24	Reconciliation of loss before tax to cash generated from operations	2008	2007
		£'000	£'000
	Group
	Profit/(loss) before tax	(417)	64
	Depreciation charges	45	70
		─────	─────
		(372)	134
	Increase/(decrease) in investments	2	(54)
	(Increase)/decrease in trade and other receivables	215	30
	Increase/(decrease) in trade and other payables	211	(79)
		─────	─────
	Cash generated from operations	56	31
		═════	═════
	Company
	Loss before tax	(267)	(155)
	Increase/(decrease) in trade and other receivables	224	36
	(Decrease)/Increase in trade and other payables	4	(19)
		─────	─────
	Cash consumed in operations	(39)	(138)
		═════	═════

 

25.     Cash and cash equivalents

The amounts disclosed in the cash flow statement in respect of cash and cash equivalents are in respect of these balance sheet amounts:

	Group	2008	2007
		£'000	£'000
	Cash and cash equivalents	513	536
		═════	═════
	Company
	Cash and cash equivalents	14	52
		═════	═════

 

26.    Financial Commitments

        Capital commitments

    There was no capital expenditure that had been contracted for at the balance sheet date but not yet incurred.

    Operating lease commitments

    

    The group leases office premises under a non-cancellable operating lease agreement, which contains various escalation clauses and renewal rights. Lease expenditure is charged to the income statement during the period as incurred.

  

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2008

 

27.   Financial Commitments (continued)

       Operating lease commitments (continued)

    

        The future aggregate minimum lease payments under non-cancellable operating leases are as follows:

		2008	2007
		£'000	£'000
	No later than one year		-
	Later than one year and no later than five years	-	-
	Later than five years	45	45
		─────	─────
		45	45
		═════	═════

    

 

28.    Contingent liabilities

    Falcon Securities (UK) Ltd has appointed Montague Pitman Stockbrokers Limited as its appointed representative on the stock broking business.

    The group held a cash deposit of £300,000 as at 31 December 2008 as collateral against claims for the future fines or compensation on mis-selling products that may arise from the regulatory review of systems and sale procedures and the costs associated with it.

• Post balance sheet events

    There have been no events after the balance sheet date which require disclosure in the financial statements

29.    Financial Instruments

    The objectives, policies and strategies applied by the group with respect to financial instruments are determined at a group level. The group's principal financial instruments are cash and its bank loans and overdraft facilities.

    The group adopts a conservative policy towards the management of its cash and has not engaged in any speculative trades. The group has no derivative instruments or hedging transactions. The group has other financial instruments such as trade creditors, which arise directly from its operations.

    The carrying amounts of financial assets and liabilities of the group and the company at the balance sheet date approximated their fair values.

    The carrying amounts of cash and cash equivalents, trade and other receivables/payables, and borrowings approximate fair values due to the relatively short term maturity of these financial instruments.

30.    Control

The Company is controlled by the directors.

ALLTRUE INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2008

31. Related Party Transactions

Transactions between the Company and its subsidiaries, which are related parties, have been  

eliminated on consolidation and are not disclosed in this note.

  During the year the Company received a management fee from Falcon Securities (UK) Ltd of 

  £25,000 ( 2007-£25,000). The amount due to Falcon Securities Holdings Limited at the year end

  was £62,683 ( 2007-£62,683).    

                                        

Note to the announcement:

The financial information set out above does not comprise statutory accounts. The financial information for the year ended 31 December 2008 has been extracted from the published accounts for the year ended 31 December 2008 on which the report of the auditors was unqualified.

ENDFR CKDKQQBKDKPB

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