Annual report & consolidated financial statements 2012

It is with great pleasure that I present the Report and Accounts for the Company for the period ended 31st March 2012.

The year has seen great changes in the Company. On 13th September 2011 completion of the Administration Procedure of the Company was announced, confirming that the Company was no longer in Administration.

On 13th October 2011 the Company announced that it had entered into a conditional agreement to acquire the entire issued share capital of Combe Bank Homes Ltd and its subsidiaries (“CBH”) by the issue of new shares in the Company. CBH was established in 2006 to undertake residential development in both new build and conversions/refurbishments.

On 11th November 2011 the Company was pleased to announce both completion of the acquisition of CBH and the re-admission of the Company’s entire issued Ordinary Share capital to trading on the PLUS-Stock Exchange.

At the same time Mr. Robert McKendrick and Mr. James Reid resigned as Directors of the Company and Christopher Johnson and Alexander Johnson, the Directors of CBH, joined the Board as Executive Directors of your Company, forming the new management team. Mr. Andrew Moore subsequently resigned his Directorship of the Company for personal reasons but continues to undertake the Company Secretarial role.

Following the issue of shares at the time of the completion of the Administration and the issue of shares for the acquisition of CBH, the Company now has 214,375,200 ordinary shares in issue.

On 6th December 2011, Mr. Norman Lott FCA was appointed a Non-Executive Director and on 17th May 2012, I was appointed as Independent Non-Executive Chairman of the Company.

I was delighted to accept the role of Chairman of this Company as I have a strong belief in the management team, having known them for many years. I believe that they will successfully pursue their stated aim to make this Company and its subsidiaries a force to be reckoned with in the house building market in the South East of England, their chosen area of operation.

The benefit of the acquisition of CBH and its subsidiaries can be seen in the results for the financial period ended 31st March 2012 which shows a post tax profit for the financial period of £208,464 (year ended 30 November 2010: loss of £903,100) and earnings of 0.1p per ordinary share (year ended 30 November 2010: loss per ordinary share of 0.47p). This is however, after writing-off £291,075 of exceptional one-off costs (year ended 30 November 2010: nil) relating to the acquisition of Combe Bank Homes Ltd.

I am encouraged by the growth strategy now in place, with development underway on sites, which are anticipated to contribute to the Company’s financial performance for the years ending March 2013 and 2014.

It leaves me now only to thank those who have served the Company through its difficult times and to congratulate my fellow board members on their efforts in achieving a positive set of results for the period under review, enabling us all to look forward to the future with optimism.

James Dubois