Galleon : Interim Results 30.06.14 (30/06/2014)

30 June 2014

("Galleon", "the Company" or "the Group")

Galleon Holdings plc (AIM: GON) is pleased to announce its interim results for the six months ended 31 March 2014.

Since September 2013, the Board has been seeking investment opportunities in line with the Company's stated
investment strategy.
On 12 November 2013 the Company announced it was in advanced discussions and agreed in principle with a consortium of sellers to acquire 85% of the issued share capital of Aktobe Steel Production LLC. Due to delays in advancing pertinent documentation, diligence and commercial issues it was further announced on 12 May 2014 that these discussions had been terminated.
Galleon continues to consider possible investment opportunities and this remains the focus of the Directors during the second half of this year. The Board is also exploring new sources of funding. The Company will update the market as appropriate.
During the period under review, the Company had a loss before tax of £95,000 (2013: loss of £185,000). Cash and cash equivalents were £114,000 and restricted cash, representing funds held as part of the CVA, was £221,000. A further announcement will be made when the CVA process is fully completed.
Ashar Qureshi
Non-Executive Director

Enquiries:

Ashar Qureshi Tel: 020 7529 3737

James Caithie / Avi Robinson
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 31 March 2014

Unaudited Six months ended 31
March
2013*
Audited Year ended 30
September
2013**
Note £'000 £'000 £'000

Cost of sales - (3,054)-

Administrative expenses (101) (1,054) 575

Finance costs - (74) (56)

Taxation credit 3 - 85 - (Loss) /profit for the financial period / year (95) (185) 531
Non-controlling interest - 31 -

Foreign exchange on translating foreign entities which can subsequently be
reclassified to profit and loss - 42 -

- Basic and diluted 4 (1.7p) (9.2p) 31.7p

* The interim accounts for the period to 31 March 2013 represent those of the Group prior to the reorganisation and change in investment policy on 30 September 2013 of which all but the Company's operations have been discontinued.

** These figures represent the company only figures for the year ended 30 September 2013. For further information see the 2013 annual report.

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 March 2014

Unaudited
31 March
2013*
Audited
30 September
2013**

Intangible assets - 17 -

Trade and other receivables 109 1,864 10
Due from Shareholders - - 350
Restricted Cash 221 - 109
Cash and cash equivalents 114 170 -

444 2,034 469

Trade and other payables 421 2,294 301
Borrowings - 300 50
Corporation Tax - 30

Share capital 5 1,869 1,674 1,674
Shares to be issued - - 350
Share Premium 26,424 - 26,269
Capital Redemption Reserve 9,601 - 9,601
Retained Deficit (37,871) (1,775) (37,776)

* The interim accounts for the period to 31 March 2013 represent those of the Group prior to the reorganisation and change in investment policy on 30 September 2013 of which all but the Company's operations have been discontinued.

** These figures represent the company only figures for the year ended 30 September 2013. For further information see the 2013 annual report.

UNAUDITED STATEMENT OF CONSOLIDATED CASH FLOWS
For the six months ended 31 March 2014

Unaudited Six months ended 31
March
2013*
Audited Year ended 30
September
2013**

Loss / profit for the period (95) (185) 531
Taxation - (85) - Net finance costs - 74 56
Depreciation of property, plant and equipment - 15 - Impairment of assets - - 163
Amortisation of intangible assets - 5 - Relinquishment of creditors - - (1,190)
Decrease in inventories - 499 - (Increase)/Decrease in trade and other
receivables (99) (227) 20 (Decrease) / increase in trade and other
payables 70 288 188

Taxation received - (5) - Net interest (paid) - (74) (56) Net cash (outflow) / inflow from operating

Receipt from fundraising 350 - - Movement in funding from former subsidiaries - - 777

Transfer to restricted cash (180) - (109) Use of restricted Cash 68 - - Repayment of loan - (400) (400) Net cash inflow / (outflow) from financing

Exchange differences on cash and cash

* The interim accounts for the period to 31 March 2013 represent those of the Group prior to the reorganisation and change in investment policy on 30 September 2013 of which all but the Company's operations have been discontinued.

** These figures represent the company only figures for the year ended 30 September 2013. For further information see the 2013 annual report.

Galleon Holdings plc, a Public Limited Company is incorporated and domiciled in the United Kingdom.
Galleon Holdings plc during the period under review was primarily an investing company, focussing on the natural resources and energy sectors.
The financial information set out in the interim report does not constitute statutory accounts as defined in Section
434 of the Companies Act 2006. The financial statements for the year ended 30 September 2013 will be filed with the Registrar of Companies in due course. The 30 September 2013 financial statements were approved by the Directors on 12 May 2014. The audit report on those accounts was qualified as the Company did not prepare group financial statements which was contrary to the provisions of the Companies Act 2006 and the requirements of International Accounting Standard 27. The financial statements were not prepared on a consolidated basis as the information necessary for the preparation of the consolidated financial statements could not be obtained due to the loss of control by the company of the subsidiaries disposed of in the year. The audit report did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under Section 498 (2) - (3) of the Companies Act 2006.
The interim report was approved by the Board on 30 June 2014.
The directors have prepared profit and loss, balance sheet and cash flow projections through to 30 June 2015, incorporating the management and other costs associated with the implementation of the new investment strategy. The projections also take account of the on-going management costs of the Group. In the event an investment is made in line with the new investment strategy, it is likely that new funding will be raised.
Taking the above into account, the Directors believe that it remains appropriate for the interim report to be prepared on a going concern basis. The interim report does not include any adjustments that would result if the assumptions detailed above are not met.

The consolidated interim financial statements for the period 1 October 2013 to 31 March 2014 are unaudited and have not been reviewed in accordance with International Standard on Review Engagements (ISRE) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity.'
The half yearly consolidated financial report should be read in conjunction with the annual financial statements for the year ended 30 September 2013, which have been prepared in accordance with IFRS as adopted by the European Union. The accounting policies adopted are consistent with those described in the 30 September 2013 annual report.
The financial statements for the year ended 30 September 2013 represent the individual Company financial statements only. These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) adopted for use in the European Union and the Companies Act 2006. The financial statements for the period ending 31 March 2013 are prepared on a Group basis prior to the restructuring of the Company and the adoption of the new investing policy. The Company's shares are listed on the AIM market of the London Stock Exchange. The half year financial statements for the period ended 31
March 2014 are prepared on a consolidated basis.

There are no unrelieved tax losses available to offset against allowable future taxable trading profits
The tax credit for the period ended 31 March 2013 arises in the UK and China after allowing for tax losses brought forward.

Unaudited
31 March
2013
Audited
30
September

2013

The diluted loss per share is 1.7p (September 2013: profit per share 31.7p) as any amendment to the weighted average number of shares as a result of including the conversion of share options is anti-dilutive.
In line with accounting standards the weighted average number of shares used in the calculation of loss per share has been adjusted to reflect the share reorganisation on 30 September 2013.

Unaudited
31 March
2013
Audited
30 September
2013

Allotted, called up and fully paid

167,426,002 Ordinary shares of 1p each - 1,674 -

Effect of share capital reorganisation

1,674,260 Ordinary shares of £0.05 each 84 - 84

1,674,260 Deferred shares of £0.95 each 1,590 - 1,590

Shares issued on fund raise

3,906,250 shares at £0.0896 each 195 - - Total share capital 1,869 1,674 1,674

On 30 September 2013, the Company undertook a share capital reorganisation.
The Company's Ordinary Shares have been consolidated on the basis that every 100 existing Ordinary Shares has become 1 Consolidated Share. Each of the Consolidated Shares has been subdivided into one New Ordinary Share of £0.05 each and one deferred share of £0.95 each. The New Ordinary Shares carry the same rights as the existing Ordinary Shares. The deferred shares will not entitle the holder thereof to receive notice of or attend and vote at any general meeting of the Company or to receive a dividend or other distribution or t o participate in any return on capital on a winding up other than the nominal amount paid on such shares following a substantial distribution to holders of ordinary shares in the Company. The Company has the right to

purchase ali of the issued Deferred Shares !rom ali Shareholders far an aggregate consideration of f:D.01. As such, the Deferred Shares effectively have negligible value and have not been admitted lo trading on AIM. Share certificates have not been issued in respect of the Deferred Shares.

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