PALADIN<00495> - Results Announcement
Paladin Limited announced on 19/10/2004:
(stock code: 00495 )
Year end date: 30/6/2004
Currency: HKD
Auditors' Report: Modified
(Audited )
(Audited ) Last
Current Corresponding
Period Period
from 1/7/2003 from 1/7/2002
to 30/6/2004 to 30/6/2003
Note ('000 ) ('000 )
Turnover : 10,808 10,338
Profit/(Loss) from Operations : 16,692 (51,344)
Finance cost : (5,780) (12,841)
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 10,912 (64,185)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : 0.021 (0.121)
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 10,912 (64,185)
Final Dividend : Nil Nil
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final Dividend : N/A
Payable Date : N/A
B/C Dates for Annual
General Meeting : 30/11/2004 to 3/12/2004 bdi.
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
In preparing the financial statements, the directors have given
careful consideration to the future liquidity of the Group in light of its
net current liabilities of HK$183,970,000 and deficit in shareholders'
funds of HK$50,880,000 as at 30 June 2004. The Group is dependent upon
the financial support of its bankers and other lenders. As explained in
note 18 to the financial statements, in September 2004, the Group obtained
a commitment letter for a term loan facility from other banks to refinance
the HK$ term loan of HK$623 million and other loan of HK$155 million (both
together with the accrued interest and other bank charges). The HK$ term
loan of HK$623 million and other loan of HK$155 million are due on 31
December 2004 and 1 October 2004 respectively. In addition, the Group is
now in the process of soliciting new bankers to refinance the overdue US$
term loan of HK$78 million and the Additional Amount of HK$134 million
which is equivalent to 10% of the excess of the value of the Group's
properties under development as of 30 September 2004 performed by an
independent professional valuer on an open market value over
HK$660,000,000, as explained in note 19(c) to the financial statements.
The Additional Amount shall be due for payment on 1 November 2004.
Provided that the above term loan facility can be successfully obtained by
the Group and the Group can successfully solicit new bankers to refinance
the US$ term loan and the Additional Amount within a short period of time,
the directors estimate the properties under development will be available
for sale or pre-sale by 30 November 2004 and will be completed by 30 April
2005. Against this background, the directors consider that, with the
continuing support of the Group's bankers and other lenders, the Group
will be able to complete the development and to meet in full its financial
obligations as they fall due for the foreseeable future. Accordingly, the
financial statements have been prepared on a going concern basis.
2. EARNINGS (LOSS) PER SHARE
The calculation of the basic earnings (loss) per share is based on
the net profit (loss) for the year of HK$10,912,000 (2003: net loss of
HK$64,185,000) and on 528,271,615 (2003: 528,271,615) ordinary shares in
issue during the year.
3. EXTRACT FROM AUDITORS' REPORT
Fundamental uncertainty relating to the going concern basis
In forming our opinion, we have considered the adequacy of the disclosures
made in note 2 to the financial statements which explain that the Group is
dependent upon the financial support of its banker and other lenders. In
September 2004, the Group obtained a commitment letter for a term loan
facility from other banks to refinance the HK$ term loan of HK$623 million
and other loan of HK$155 million (both together with the accrued interest
and other bank charges). The HK$ term loan of HK$623 million and other
loan of HK$155 million are due on 31 December 2004 and 1 October 2004
respectively. In addition, the Group is now in the process of soliciting
new bankers to refinance the overdue US$ term loan of HK$78 million and
the Additional Amount of HK$134 million, as explained in note 19(c) to the
financial statements. The Additional Amount shall be due for payment on 1
November 2004. Provided that the above term loan facility can be
successfully obtained by the Group and the Group can successfully solicit
new bankers to refinance the US$ term loan and the Additional Amount
within a short period of time, the directors estimate the properties under
development will be available for sale or pre-sale by 30 November 2004 and
will be completed by 30 April 2005. Against this background, the
directors consider that, with the continuing support of the Group's
bankers and other lenders, the Group will be able to complete the
development and to meet in full its financial obligations as they fall due
for the foreseeable future. The financial statements have been prepared
on a going concern basis, the validity of which depends upon the future
funding being available. The financial statements do not include any
adjustments that would result from failure to obtain such funding. We
consider that the fundamental uncertainty has been adequately disclosed in
the financial statements and our opinion is not qualified in this respect.
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