Dimension Resources - a Natural Resources Company

Chairman's Statement

Six Months Ended 30 June 2006

I have previously reported to you that the Company had ceased quarrying and processing dimension stone itself, and that arrangements had been made for the Group's South African assets to be realised, the local creditors to be paid and the balance to be remitted back to the United Kingdom. Following these realisations, the directors had been advised that the Company would receive approximately £400,000 in value, either in cash or by way of an income stream.

The realisation of assets is still continuing, and has much taken longer than anticipated. Rather than being sold, the Company's quarries are being operated by a contractor, and the administrator is receiving a royalty on sales. The interim accounts reflect the first amount to be remitted back to the United Kingdom, but that only amounted to some £8,000. The administrator in South Africa is still expecting to finalise the arrangements for contract quarrying in the near future, which should release further cash as well as providing an income stream for the future.

The loss for the period of £20,000 (2005 - £25,000) represents the minimum costs of maintaining the listing on AIM. The company continues to be classified as a trading company due to its quarries remaining active, and is not subject to delisting from AIM as a shell company.

The Directors continue to consider new projects to be injected into the Company, but are unable to make progress until the position in South Africa is finalised.

Brian Moritz
(Chairman)
20 September 2006

Income statement for the six months ended 30 June 2006 9383487943117c1bb81070b5dde82c34

Balance sheet at 30 June 2006 

	30 June	30 June
	2006	2005
	GBP	GBP
ASSETS
Non-current assets	391,986	400,000
Investments	391,986	400,000
Current assets	9,591	9,598
Trade and other receivables	3,255	6,291
Cash at bank and in hand	6,336	3,307
Total assets	401,577	409,598
EQUITY AND LIABILITIES
Shareholders' funds	298,867	337,241
Called up share capital	6,799,000	6,799,000
Share premium account	11,932,457	11,932,457
Profit and loss account	(18,432,590)	(18,394,216)
Current liabilities	102,710	72,357
Trade and other payables	102,710	72,357
Total equity and liabilities	401,577	409,598

 

Cash flow statement for the six months ended 30 June 2006

	Six months ended Six	Six months ended
	30 June	30 June
	2006	2005
	GBP	GBP
CASH FLOWS FROM OPERATING ACTIVITIES	(4,527)	(4,152)
Cash absorbed by operations	(4,538)	(4,180)
Interest received	11	28
CASH FLOWS FROM INVESTING ACTIVITIES
Loans repaid by subsidiary companies	8,014
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS	3,487	(4,152)
Cash and cash equivalents at the beginning of the period	2,849	7,459
Cash and cash equivalents at the end of period	6,336	3,307

 

Notes

1. The financial statements, which are unaudited, have been drawn up using accounting policies applicable to the year ended 31 December 2005. They do not constitute statutory accounts.
2. No dividend is payable for the period.
3. The loss per share is based on losses of £20,155 (2005 - £24,785), and on 197,042,498 ordinary shares in issue.