Holding(s) in Company
Livermore Investmens Press Release 2007 / UNAUDITED INTERIM RESULTS FOR SIX MONTHS ENDED 30 JUNE 2007
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15 May 2007

LIVERMORE INVESTMENTS GROUP ("Livermore" or "Company")
UNAUDITED INTERIM RESULTS FOR SIX MONTHS ENDED 30 JUNE 2007


Livermore Investments Group Limited (the "Company" or "Livermore") todayannounces its interim results for the six  months ended 30 June 2007.SUMMARY• Annualised gross return on opening shareholders funds before administration   costs and share option amortisation of 14.6%.• Profit after tax from continuing operations - $11.9m (2006 : $4.7m).• Profit after tax for the period - $11.9m (2006 : $253.1m).• Net Asset Value per share of $0.95 as at 30 June 2007; $0.94 as at 31 December   2006; $0.92 as at 31 August 2007.• First real estate investment completed in July 2007; sale and lease back of   34,000 square metres of commercial freehold property from the Swiss national   railway company SBB for CHF 93m and a related residential project totalling   some CHF 15m.• Development of infrastructure for the newly formed investment company and   recruitment of a professional investment management team.Commenting on the results, Noam Lanir, CEO of Livermore Investments GroupLimited, said: "Good progress has been made  in transitioning to an investmentcompany. I am particularly pleased with the return on shareholder funds of 14.6%before administration costs and share option amortisation in this first periodas an investment company."For further investor information please go to www.livermore-inv.com.Enquiries:Livermore Investments Group Limited                        + 357 25 847 700Noam Lanir, Chief Executive OfficerRon Baron, Chief Investment Officer                        + 41 433 443 200Hudson Sandler                                             +44 (0) 20 7796 4133Michael SandlerChairman's and Chief Executive's ReviewIntroductionThe first six months of 2007 have been an exciting period of transition forLivermore Investments Group Limited. Significant progress has been made inestablishing the infrastructure of the investment group, recruiting a newinvestment team and in deploying the capital of the Company.The annualised gross return on opening shareholders funds for the first sixmonths of 2007 was 14.6% calculated before deducting administration costs andshare option amortisation and including unrealised gains. The annualised netreturn on opening shareholders funds before share option amortisation was 12.8%.Operational reviewThe Company focused, during the first half of 2007, on forming and starting toimplement its investment strategy. The first stages have been successfullycompleted by establishing a portfolio which is well diversified across assetclasses, currencies and geography. Management aims to establish an investmentportfolio which will focus on areas of potential high growth in the mid to longterm through a top down investment approach and partnerships with top tiermanagers and investment partners. Management is confident that through carefuland patient selection of absolute return opportunities across its selected areasand a stringent and focused investment decision-making process, it will be ableto construct a robust investment portfolio which will generate stable abovemarket returns for its investors.In July 2007 the Company finalised its first real estate investment through thepurchase and leaseback of Wyler Park from SBB, the Swiss national railwaycompany. The purchase followed a bid process of over 6 months in which over 20parties participated. The property was purchased for CHF 93m through a newlyestablished Swiss special purchase vehicle. Non recourse finance of some CHF 80mwas provided by Merrill Lynch. As part of this commercial investment the Companyis developing a residential project including 39 residential apartments to becompleted in July 2008. The total cost of the residential development project isapproximately CHF 15m. The project includes additional development rights, whichthe Company expects to utilise in the future. This high profile investment haspositioned the Company well in the Swiss market and has generated significantdeal flow opportunities in the property sector. Some of these projects arecurrently under various stages of review and negotiation.In the first half of 2007, gains of $9.0m have been made in global tradingactivities mainly through selective stock picking (long and short) in thenatural resources sectors and the Asian markets. The Company also invested witha few single hedge funds managers, who outperformed their peer group.Interest income for the period of some $3.7m was derived from the fixed incomeportfolio, which comprises mainly of money market instruments and highly ratedbonds. Additional investment income was derived from our diversified portfolioof structured credit products. These investments, which amount to 13% of thetotal portfolio include rated and equity tranches, mostly of collateralised loanobligations (CLOs). The exposure of CLO positions to the US residential realestate market is small (less than 1.5% of the total Company portfolio, and theeffect of developments in credit markets on our portfolio has been minimal.Overall the fixed income portfolio which includes a mix of top tier managers andhas a wide sector spread performed within management expectations.Some initial investments have been made in private equity. These have beenminority stakes in specialist investment funds focusing on the developingeconomies of India and the Far East. Such investments include commercial realestate, hospitality projects and logistics in India.The Company's investment portfolio at 30th June 2007 was valued at some $290m and was invested according to the following distribution (comparative information for the end of August 2007 included).Investment category          Percentage             Percentage                            30 June 2007           31 August 2007Cash and money markets           27%                    24%Equities                         27%                    14%Bonds                            21%                    16%Alternative investments          19%                    18%Real estate investments          3%                     23%Derivatives                      1%                     3%Other assets                     1%                     1%Current assets                   1%                     1%                           ______________          ______________Total portfolio                $290m                  $347mSince 30 June, 2007 the Company significantly reduced its equity exposure, as also illustrated in the table above.Board ChangesRon Baron was appointed as Executive Director and Chief Investment Officer on 10August 2007. Ron has wide investments and M&A experience. From 2001 to 2006 Ronserved as member of management at Bank Leumi, Switzerland and was responsiblefor portfolio management activity. Prior to this he spent five years as acommercial lawyer at Kantor, Elhanani, Tal & Co. Law Offices in Tel Aviv,Israel, advising banks and large corporations on transactions, buy-outs andprivatisations. He holds an MBA from INSEAD Fontainebleau and a LLB (LAW) and BAin Economics from Tel Aviv University.As announced on 27 June, Andrew Burns, formerly our CFO, left the Company at theend of August. The Board would like to thank Andrew for his contribution to thedevelopment of the Company and wish him well in his new role.Repurchase of sharesOn 27 April 2007 the Company repurchased 8,750,000 shares for $0.820 per share.Further share buy backs will be considered in the future having regard to thediscount to net asset value per share.DividendsThe final dividend for 2006 of $0.034 per share, totalling $9.7m, was paid on 29June 2007. For 2007 the Company's dividend policy remains unchanged. Livermorewill continue allocating 50% of its net profit to shareholder dividends, basedon the Company's performance. Dividends will be calculated and paid based on thefull year end results.Richard Rosenberg                     Noam LanirChairman                              Chief Executive24 September 2007* Livermore Investments Group Limited was formerly known as Empire OnlineLimited. Shareholders approved a special resolution to change the Company's nameat the EGM held on 28 February 2007.Livermore Investment Group LimitedConsolidated Income Statementfor the Six months ended 30 June 2007                                                                                                         Discontinued              Discontinued                                                  Operations                Operations                                                                       Six months   Six months   Six months         Year         Year                                       ended        ended        ended        ended        ended                                     30 June      30 June      30 June  31 December  31 December                                        2007         2006         2006         2006         2006                          Note     Unaudited    Unaudited    Unaudited      Audited      Audited                                        $000         $000         $000         $000         $000Net gaming revenue                         -       38,203            -       59,850            -Investment revenue          3         12,569            -            -            -        2,301Cost of sales                              -     (20,560)            -     (30,256)            -                                    ________   __________     ________     ________     ________Gross profit                          12,569       17,643            -       29,594        2,301Amortisation and non        2        (1,351)      (3,527)            -     (11,054)            -recurring itemsAdministrative expenses              (2,497)      (2,353)            -      (3,483)        (995)                                    ________   __________     ________     ________     ________Operating profit / (loss)              8,721       11,763            -       15,057        1,306Finance expenditure                    (335)            -            -            -        (170)Finance income                         3,508            -        4,722            -        9,892                                    ________   __________     ________     ________     ________Profit before taxation                11,894       11,763        4,722       15,057       11,028Taxation                                 (1)          (4)            -          (7)            -                                    ________   __________     ________     ________     ________Profit for the year after             11,893                     4,722                    11,028taxation from continuingoperationsProfit after taxation                              11,759            -       15,050            -from discontinuedoperationsProfit from disposal of     4                     236,657            -       36,642            -discontinued operations                                               __________                  ________Profit for discontinued                    -      248,416      248,416       51,692       51,692operation                                    ________                  ________                  ________Profit for period                     11,893                   253,138                    62,720                                    ========                  ========                  ========Earnings per shareBasic earnings per share ($)                   7           0.04         0.85         0.86         0.18         0.21                                    ========     ========     ========     ========     ========Diluted earnings per        share ($)                   7           0.04         0.81         0.83         0.17         0.21                                    ========     ========     ========     ========     ========DividendsProposed interim dividend               per share ($)                           $0.0                    $0.017                    $0.034                                    ========                  ========                  ========Proposed interim dividend                  ($000)                                     -                     4,977                    10,000                                    ========                  ========                  ========Dividends paid during the period      per share ($)                         $0.033                        $0                    $0.085                                    ========                  ========                  ========Dividends paid during the              period ($000)                          9,657                         -                    24,887                                    ========                  ========                  ========Livermore Investments Group LimitedConsolidated Balance Sheetas at 30 June 2007                                                                                                          30 June    30 June 31 December                                                     2007       2006        2006                                         Note   Unaudited  Unaudited     Audited                                                     $000       $000        $000AssetsNon-current assetsProperty, plant and equipment                          29        167          49Intangible assets                                      51    221,778          73Financial assets                           8      195,588          -     124,491                                                  _______    _______     _______                                                  195,668    221,945     124,613                                                  _______    _______     _______Current assetsTrade and other receivables                         9,611      7,092      50,795Cash and cash equivalents                  9       84,994    262,114     137,715                                                  _______    _______     _______                                                   94,605    269,206     188,510                                                  _______    _______     _______Total assets                                      290,273    491,151     313,123                                                  =======    =======     =======EquityShare capital                             10            -          -           -Reserves                                          210,907    211,535     212,483Retained earnings                                  63,999    275,435      61,763                                                  _______    _______     _______Total equity                                      274,906    486,970     274,246                                                  _______    _______     _______LiabilitiesCurrent liabilitiesBank overdrafts                           11        8,008          -       4,960Trade and other payables                            7,358      4,171      33,910Current tax payable                                     1         10           7                                                  _______    _______     _______Total liabilities                                  15,367      4,181      38,877                                                  _______    _______     _______Total equity and liabilities                      290,273    491,151     313,123                                                  =======    =======     =======Net assets valuation per shareBasic net assets valuation per share ($)             0.95       1.66        0.94                                                  =======    =======     =======Diluted net assets valuation per share ($)           0.91       1.59        0.91                                                  =======    =======     =======Livermore Investments Group LimitedConsolidated Statement of Changes in Equityfor the period ended 30 June 2007                                      Note   Share       Share           Share      Investment     Retained        Total                                           capital     premium          option     revaluation     earnings                                                                       reserve         reserve                                              $000        $000            $000            $000         $000         $000Balance at 1 January 2006                        -     209,807             277               -       22,297      232,381           Net profit for the year                          -           -               -               -       62,720       62,720Share option reserve                             -           -           3,150               -            -        3,150Share options forfeited                          -           -         (1,633)               -        1,633            -Revaluation reserve                              -           -               -             882            -          882Dividends paid                                   -           -               -               -     (24,887)     (24,887)                                            ______      ______          ______          ______     ________      _______Balance at 31 December 2006                      -     209,807           1,794             882       61,763      274,246           Net profit for the period                        -           -               -               -       11,893       11,893          Share option reserve                             -           -           1,850               -            -        1,850      Purchase of own shares                                 (7,172)               -               -            -      (7,172)Revaluation reserve                              -           -               -           3,746            -        3,746Dividends paid                                   -           -               -               -      (9,657)      (9,657)                                            ______      ______          ______          ______     ________     ________Balance at 30 June 2007                          -     202,635           3,644           4,628       63,999      274,906                                            ______      ______          ______          ______     ________      _______Comparative Period                    Note   Share       Share           Share      Investment     Retained        Total                                           capital     premium          option     revaluation     earnings                                                                       reserve         reserve                                              $000        $000            $000            $000         $000         $000Balance at 1 January 2006                        -     209,807             277               -       22,297      232,381Net profit for the period                        -           -               -               -      253,138      253,138Share option reserve                             -           -           1,451               -            -        1,451                                            ______      ______          ______          ______       ______       ______Balance at 30 June 2006                          -     209,807           1,728               -      275,435      486,970                                            ______      ______          ______          ______       ______       ______Livermore Investments Group LimitedConsolidated Statement of Cash Flowsfor the period ended 30 June 2007                                                        Note    Six months                    Six months      Year ended                                                             ended 30 June                 ended 30 June     31 December                                                                      2007                          2006            2006                                                                 Unaudited                     Unaudited         Audited                                                                      $000                          $000            $000Cash flows from operating activitiesProfit after tax                                                    11,893                       253,142          62,720Adjustments forDepreciation and amortisation                                           38                         2,508           3,298Goodwill fair value adjustment                                           -                           798             797Profit on sale of property, plant and equipment                          7                             -               -Investment revenue                                         3      (12,569)                             -         (2,301)Finance income                                                     (3,104)                       (4,682)         (9,660)Interest expense                                                       335                            68             170Equity settled share options                                         1,850                         1,451           3,150Profit on disposal                                         4             -                     (236,657)        (36,642)                                                                    ______                        ______          ______                                                                   (1,550)                        16,628          21,532                                                                    ______                        ______          ______Changes in working capitalDecrease in trade and other receivables                             41,184                         4,339           8,612Decrease in trade and other payables                              (26,557)                      (15,917)        (11,830)                                                                    ______                        ______          ______                                                                    14,627                      (11,578)         (3,218)                                                                    ______                        ______          ______Net cash generated from operating activities                        13,077                         5,050          18,314                                                                             ______                        ______          ______Cash flows from investing activitiesPurchase of property, plant and equipment                                -                          (83)           (113)Purchase of intangible assets                                            -                         (421)           (916)Acquisition of investments                                        (67,355)                             -       (123,609)Disposal of business assets                                4             -                       236,657         235,878Investment revenue received                                3        12,569                             -           2,301Finance income received                                              3,104                         4,682           9,660                                                                            ______                        ______          ______Net cash used in investing activities                             (51,682)                       240,835         123,201                                                                    ______                        ______          ______Cash flows from financing activitiesDividends paid                                                     (9,657)                             -        (24,887)Purchases of own shares                                            (7,172)                             -               -Interest paid                                                        (335)                          (68)           (170)                                                                    ______                        ______          ______Net cash used in financing activities                             (17,164)                          (68)        (25,057)                                                                    ______                        ______          ______Net (decrease)/increase in cash and cash equivalents              (55,769)                       245,817         116,458Cash and cash equivalents at the beginning of the year             132,755                        16,297          16,297                                                                    ______                        ______          ______Cash and cash equivalents at the end of the year                    76,986                       262,114         132,755                                                                    ======                        ======          ======Notes to the Financial Statements1.  Accounting policiesThe Interim financial statements of Livermore Investments Group Limited havebeen prepared on the basis of the  accounting policies stated in the AnnualReport 2006, available on www.livermore-inv.com. The financial information has been prepared in accordance with IAS 34 "Interim Financial Reporting".Basis of consolidationThe consolidated financial statements include the accounts of the Company andits subsidiaries. The subsidiaries are  companies controlled by LivermoreInvestments Group Limited. Control exists where the Company has the power togovern  the financial and operating policies of an investee entity so as toobtain benefits from its activities. Subsidiaries  are consolidated from thedate the parent gained control until such time as control ceases.The financial statements of the subsidiaries are included in the consolidatedfinancial statements using the  acquisition method of accounting. On the date ofthe acquisition the assets and liabilities of a subsidiary are  measured attheir fair values and any excess of the cost of acquisition over the fair valuesof the identifiable net  assets acquired is recognised as goodwill. Intercompanytransactions and balances are eliminated on consolidation.Basis of preparationThese results have been prepared on the basis of the accounting policiesexpected to be adopted in the Company's full  year financial statements, whichare expected to be prepared in accordance with International Financial ReportingStandards ("IFRS") as adopted by the European Union.  There are no materialdifferences between the accounting policies  set out in the financial statementsfor the year ended 31 December 2006 and the accounting policies the Companyexpects  to adopt in the next year's statements.Goodwill is initially measured at cost, being the excess of the considerationpaid over the net fair value of the  assets acquired. Following initialrecognition, goodwill is measured at cost less any accumulated impairmentlosses.  Goodwill is not amortised. Goodwill is reviewed annually or morefrequently if events or changes in circumstances  indicate that the carryingvalue may be impaired.The financial information for the period ending 30 June 2006 is extracted fromthe Group's financial statements for the  year ended 31 December 2006.2. Amortisation and non recurring itemsAmortisation and non-recurring items refer to:                                                      Six months         Six months       Year ended                                                   ended 30 June      ended 30 June      31 December                                                             2007               2006             2006                                                       Unaudited          Unaudited          Audited                                                            $000               $000             $000Amortisation of intangible assets                             22              2,076            2,315Amortisation of share options                              1,850              1,451            3,150Non recurring expenses                                        16                  -            1,144Compensation to third parties                                  -                  -            4,445Income from PartyGaming plc service agreement              (231)                  -                -Additional income from online gaming business prior to completion of disposal                   (306)                  -                -                                                          ______             ______           ______                                                           1,351              3,527           11,054                                                          ======             ======           ======3. Investment revenue                                                      Six months         Six months      31 December                                                    ended 30 June      ended 30 June             2006                                                            2007               2006          Audited                                                       Unaudited          Unaudited                                                                      $000               $000             $000Interest on available for sale  investments                3,695                  -            2,193Dividend Income                                              232                  -                -Loss on sale of available for sale investments             (129)                  -                -Gain on sale of shares                                     9,003                  -              108Loss on derivative instruments                             (232)                  -                -                                                          ______             ______           ______                                                          12,569                  -            2,301                                                          ======             ======           ======4. Disposal of business assets                                  Six months        Empire        Six months        Empire       Disposal    Year ended                                    ended 30         Poker             ended         Poker             of   31 December                                         June                    30 June 2006                     business          2006                                        2007                       Unaudited                                    Audited                                   Unaudited                                                                                            2007          2006              2006          2006           2006          2006                                        $000          $000              $000          $000           $000          $000Disposal proceeds received                 -       250,000           250,000       250,000         37,972       287,972Legal and professional expenses            -      (11,800)          (11,800)             -          (944)         (944)Compensations to third parties             -       (1,543)           (1,543)      (14,122)       (12,705)      (26,827)Warranties provision                       -             -                 -             -        (2,000)       (2,000)Assets written off                         -             -                 -             -      (221,559)     (221,559)                                      ______        ______            ______        ______         ______        ______Profit from disposal to PartyGaming Plc    -       236,657           236,657       235,878      (199,236)        36,642                                      ======        ======            ======        ======        =======        ======On 14 February 2006 the Group sold certain business assets to PartyGaming Plcpursuant to a settlement agreement for a total consideration of $250m. Businessassets included in the disposal were certain domain names and brand names. Thesebrands and domain names were used by the Group to direct poker and casinoplayers to PartyGaming's websites creating net gaming revenue for the Group. Theconsideration represented $250m, which was all in the form of cash.On 29 December 2006, the Company agreed to dispose of its remaining operationsto PartyGaming plc.On 19 January 2007, the Company completed the sale to PartyGaming plc of itsremaining operating business. This agreement was signed on 28 December 2006 andwas subject to certain conditions including approval of the Company'sshareholders at an EGM on 17 January 2007.Between signing and completion the Company continued to operate the business,however during this period restrictions were placed on the operation of thebusiness by PartyGaming plc. Business assets included in the disposal werecertain domain names, players data and brand names. Assets written off,principally comprise of acquired goodwill relating to the acquisition of thebusiness of Tradal Limited in May 2005 and the acquisition of Club Dice casinosin September 2005.The Group received a consideration for the disposal of the business of83,325,934 PartyGaming shares representing a gross value of $47.9m. 17,374,637PartyGaming shares were transferred to agents as compensation resulting in netdisposal proceeds to the Group of $38.0m. The transaction was conditional on afurther payment by the Group to a marketing service provider of $10m.5. DividendFor the interim period the Group's dividend policy remains unchanged. TheCompany intends to allocate 50% of its net profit to Dividend. Dividendallotment for this year will be done after the year end results.6. Segmental information for the periodCurrently the Company has only one segment, being the management of itsinvestment portfolio. In the prior year the Company's segments consisted ofCasino and Poker activities, which are now discontinued.Business segmentsThe Groups' performance as it is analysed by its business segments is givenbelowRevenue by business segment              Six months                    Six months       Year ended                                      ended 30 June                 ended 30 June      31 December                                               2007                          2006             2006                                          Unaudited                     Unaudited          Audited                                               $000                          $000             $000Investment PortfolioInvestment Revenue                           12,569                             -                -                                            =======                       =======          =======CasinoNet gaming revenue                                -                        30,209           48,616                                            =======                       =======          =======Segmental result                                  -                        15,754           27,667                                            =======                       =======          =======PokerNet gaming revenue                                -                         7,994           11,234                                            =======                       =======          =======Segmental result                                  -                         3,163            4,128                                            =======                       =======          =======ConsolidatedInvestment Revenue                           12,569Net gaming revenue                                -                        38,203           59,850                                            =======                       =======          =======Segmental results                            12,569                        18,917           31,795Central costs                                     -                       (1,274)          (2,201)                                            _______                       _______          _______Gross profit                                 12,569                        17,643           29,594Amortisation and non recurring items        (1,351)                       (3,527)         (11,054)Administrative expenses                     (2,497)                       (2,353)          (3,483)                                            _______                       _______          _______Operating profit                              8,721                        11,763           15,057                                            =======                       =======          =======7. Earnings per shareBasic earnings per share has been calculated by dividing the net profitattributable to ordinary shareholders (profit for the year) by the weightedaverage number of shares in issue during the relevant financial periods.Diluted earnings per share is calculated after taking into consideration thepotentially dilutive shares in existence during the period.                                    Six months            Discontinued       Six months Discontinued      Year ended                                 ended 30 June              Operations    ended 30 June   Operations     31 December                                          2007              Six months             2006   Year ended            2006                                     Unaudited           ended 30 June        Unaudited  31 December         Audited                                                                  2006                          2006                                                             Unaudited                       AuditedNet profit attributable                 11,893                 248,416          253,138       51,692          62,720to ordinary shareholders ($000)                                   ===========             ===========      =========== ============     ===========Weighted average number of ordinary shares in issue        289,861,105             292,777,772      292,777,772  292,777,772     292,777,772                                   ===========             ===========      =========== ============     ===========Basic earnings per share ($)              0.04                    0.85             0.86         0.18            0.21                                   ===========             ===========      =========== ============     ===========Weighted average number            302,806,660             305,767,612      305,767,612  299,723,327     299,723,327of ordinary shares includingthe effect of potentially diluted shares                                   ===========             ===========      =========== ============     ===========Diluted earnings per share ($)            0.04                    0.81             0.83         0.17            0.21                                   ===========             ===========      =========== ============     ===========Number of SharesWeighted average number            289,861,105             292,777,772      292,777,772  292,777,772      292,777,772of ordinary shares in issue Effect of dilutive potentialordinary shares:Share options                       12,945,555              12,989,840       12,989,840    6,945,555        6,945,555                                   ___________             ___________      ___________ ____________      ___________ Weighted average number            302,806,660             305,767,612      305,767,612  299,723,327      299,723,327of ordinary shares including the effect of potentially diluted shares                                   ===========             ===========      =========== ============     ===========8. Financial assets                                 30 June         30 June             31 December                                     2007            2006                    2006                               Unaudited       Unaudited                 Audited                                    $000            $000                    $000Fixed return investments          61,092               -                 100,976Equity investments                70,166                                  23,515Alternative Investments           55,895               -                       -Other investments                  8,435               -                       -                                  ______          ______                  ______                                 195,588               -                 124,491                                  ======          ======                  ======Financial assets relate to investments in bonds and equity classified asavailable for sale. Financial assets are held in the balance sheet at the periodend at fair value. Fair value is measured by reference to the market value ofthe assets at the balance sheet date as they are openly traded on a publicmarket.9. Cash and cash equivalentsCash and cash equivalents included in the cash flow statement comprise thefollowing at the balance sheet date:                               30 June         30 June               31 December                                   2007            2006                      2006                             Unaudited       Unaudited                   Audited                                  $000            $000                      $000Short term deposits             78,510         229,533                   136,522Cash at bank                     6,484          32,581                     1,193                                ______          ______                    ______                                84,994         262,114                   137,715                                ======          ======                    ======10. Share CapitalThe Company has issued share capital of 292,777,772 ordinary shares of no parvalue. On 27 April 2007 the Company purchased 8,750,000 ordinary shares at aprice of $0.820 (£0.407) per share. On 30 June 2007 the Company held theseshares in treasury.The Company has 12,945,555 outstanding share options at the end of the period.Options are normally exercisable in three equal tranches, on the first, secondand third anniversary of the grant. There have been no changes to the term ofoptions in issue during the period.11. Bank Overdrafts                                   30 June        30 June            31 December                                       2007           2006                   2006                                 Unaudited      Unaudited                Audited                                      $000           $000                   $000Short term bank overdrafts           8,008              -                  4,960                                    ______         ______                 ______                                     8,008              -                  4,960                                    ======         ======                 ======12. Related party transactions                                             30 June    30 June      31 December                                                 2007       2006             2006                                           Unaudited  Unaudited          Audited                                                $000       $000             $000Amounts owed to Directors                         66        143              391                                             =======    =======          =======Administration services provided by              132        305              660Tradal Ltd                                             =======    =======          =======Key Management compensation*Salaries and other short-term employee           387        493            1,562benefitsShare based payments                           1,807         71            1,608                                             =======    =======          =======* These payments were made in respect of members of key management eitherdirectly to them or to companies to which they are related.Tradal Ltd is a related party by virtue of common ownership with LivermoreInvestments Group Limited.The directors do not consider any party to have ultimate control of the group.13. LitigationA trademark dispute with La Societe des Bains de Mer et du Circle des Etrangersa Monaco was settled in January 2007 when the Group agreed to an out of courtsettlement of $3.4m.14. Post balance sheet eventsIn July 2007 the Group purchased a 34,000 square metre commercial freeholdproperty, Wylerpark, in Bern Switzerland from the Swiss national railwayCompany, SBB. The acquisition was made on a sale and lease back basis for $76.8m.15. Preparation of interim statementsThe financial information does not constitute statutory accounts within themeaning of the BVI International Business Companies Act 1984 (as amended).Financial Statements for Livermore Investments Group Limited for the year ended31 December 2006, prepared in accordance with International Financial ReportingStandards as adopted by the European Union, on which the auditors gave anunqualified audit report are available from the Company's website,www.livermore-inv.comINDEPENDENT REVIEW report to Livermore Investments group limitedIntroductionWe have been engaged by the company to review the condensed set of financialstatements in the half-yearly financial report for the six months ended 30 June2007 which comprises the consolidated income statement, the consolidated balancesheet, the consolidated statement of changes in equity, the consolidatedstatement of cash flows and the related notes 1 to 15. We have read the otherinformation contained in the interim report which comprises only the highlightsand the Chairman's and Chief Executive's review and considered whether itcontains any apparent misstatements or material inconsistencies with theinformation in the condensed set of financial statements.This report is made solely to the company in accordance with guidance containedin International Standard on Review Engagements (ISRE) (UK and Ireland) 2410"Review of Interim Financial Information Performed by the Independent Auditor ofthe Entity" issued by the Auditing Practices Board. Our review work has beenundertaken so that we might state to the company those matters we are requiredto state to them in a review report and for no other purpose. To the fullestextent permitted by law, we do not accept or assume responsibility to anyoneother than the company, for our review work, for this report, or for theconclusion we have formed.Directors' responsibilitiesThe half-yearly financial report is the responsibility of, and has been approvedby, the directors. The directors are responsible for preparing the half-yearlyfinancial report.As disclosed in note 1, the annual financial statements of the group areprepared in accordance with International Financial Reporting Standards ("IFRS")as adopted by the European Union. This interim report has been prepared inaccordance with International Accounting Standard 34, "Interim FinancialReporting", as adopted by the European Union.Our responsibilityOur responsibility is to the express to the company a conclusion on thecondensed set of financial statements in the half-yearly financial report basedon our review.Scope of reviewWe conducted our review in accordance with guidance contained in InternationalStandard on Review Engagements (ISRE) (UK and Ireland) 2410 "Review of InterimFinancial Information Performed by the Independent Auditor of the Entity" issuedby the Auditing Practices Board for use in the United Kingdom. A review ofinterim financial information consists of making enquiries, primarily of personsresponsible for financial and accounting matters, and applying analytical andother review procedures. A review is substantially less in scope than an auditconducted in accordance with International Standards on Auditing (UK andIreland) and consequently does not enable us to obtain assurance that we wouldbecome aware of all significant matters that might be identified in an audit.Accordingly, we do not express an audit opinion.ConclusionBased on our review, nothing has come to our attention that causes us to believethat the condensed set of financial statements in the half-yearly financialreport for the six months ended 30 June 2007 is not prepared, in all materialrespects, in accordance with International Accounting Standard 34 as adopted bythe European Union.GRANT THORNTON UK LLPCHARTERED ACCOUNTANTSSlough21 September 2007