Notes to the accounts

year ended 30 June 2001

2001

2000

19 Reconciliation of

 '000

 '000

movements in

At 1 July

24,560

4,618

consolidated

Retained loss for the financial year

(21,642)

(4,605)

shareholders'

Shares issued in the year

20

24,773

funds

Share issue expenses

(252)

Exchange movement

2

(49)

Deferred equity

75

At 30 June

2,940

24,560

20 Operating lease 

At 30 June 2001 the Group was committed to making the following

comments

payments during the next year in respect of operating leases:

Group

Company

Group

Company

2001

2001

2000

2000

Land and buildings

Operating leases which expire:

Between two and five years

158

7

Over five years

92

92

92

Plant and machinery

Operating leases which expire:

Less than one year

3

3

Between two and five years

7

7

21 Capital 

Amounts contracted for but not provided in the Group accounts were  nil 

commitments

(2000:  550,000).

22 Related party 

Included in other debtors is an amount of  18,655 due from Ivan Pope, a 

transactions

non executive director.  At the beginning of the year the balance was

 30,006 which was the maximum owed to the Company during the year.

The Company has taken advantage of the exemption conferred by paragraph

3 (c) of Financial Reporting Standard 8 and has not disclosed transactions

with other Group entities which eliminate on consolidation.

2001

2000

23 Reconciliation 

 '000

 '000

of operating 

loss to net cash 

Operating loss

(21,815)

(4,892)

Depreciation

710

175

(outflow)/inflow 

Amortisation and impairment of goodwill

18,040

4,145

from operating 

Loss on disposal of tangible fixed asset

276

65

activities

Foreign exchange gain

(4)

Decrease / (increase) in debtors

599

(670)

(Decrease)/increase in creditors

(1,839)

1,271

Net cash (outflow)/inflow from operating activities

(4,033)

94

36