GO plc – Approval of Interim Financial Statements for the period ended 30 June 2011

GO plc – Approval of Interim Financial Statements for the period ended 30 June 2011

GO plc announced that in a meeting held on August 31, 2011, the Board of Directors approved the Group Interim Unaudited Financial Statements for the six-month period ended June 30, 2011.

The Company registered a marginal rise of 1.6 per cent in Revenue, from EUR 64.18m in 2010 to EUR 65.19m in 2011. However, Loss before tax increased significantly, as it amounted to EUR 14.13m during the period under review, compared to EUR 0.65m for the same period last year.

The Directors stated that “during the first six months of the current financial year the Group achieved an operating profit of EUR 9.2m, a reduction of EUR 2m over an operating profit of EUR 11.2m in 2010. However, the results of both periods were negatively impacted by voluntary retirement costs and increased pension obligations, items considered to be of an unusual nature, size or incidence. Normalised results before such items show that in 2011 the Group’s operating profit amounted to EUR 12.4m, an increase of 8.9% over the corresponding period last year, during which the Group registered an operating profit of EUR 11.4m. The encouraging improvement in the operating performance of the Group is due to improved revenues and continued efforts to control costs.”

The Directors also commented that “the Group has a 50% interest in Forgendo Limited, the jointly-controlled entity, which in turn has an investment in an associate, Forthnet S.A. During the interim period to June 30, 2011, the carrying amount of GO’s equity investment in the jointly-controlled entity has been reduced to nil as a result of the partial recognition of GO’s share of the interim financial results of Forgendo in accordance with the requirements of equity accounting. The unrecognised share of losses amounting to EUR 18.4m has in substance necessitated an impairment loss on the loans receivable from Forgendo (see Note b below). GO is committed to make available funds and other financial support as may be required, to the extent of its interest, to enable Forgendo to cover any deficiency in equity and any liquidity requirements that may arise to meet its liabilities, as and when they fall due.”

The directors did not recommend the payment of an interim dividend.

To view the Interim Fnancial Statements, Click Here.