Livermore Investment Group Limited. : Half Yearly Report

LIVERMORE INVESTMENTS GROUP LIMITED

("Livermore" or "Company")

UNAUDITED INTERIM RESULTS FOR SIX MONTHS ENDED 30 JUNE 2013

Livermore Investments Group Limited (the "Company" or "Livermore")today announces its interim results for the six months ended 30 June 2013.

For further investor information please go to www.livermore-inv.com.

Enquiries:

Livermore Investments Group Limited                                                          [phone]

Arden Partners plc                                                                                           [phone]

Adrian Trimmings

Katelin Kennish

Chairman's and Chief Executive's Review

Introduction

We are pleased to announce the interim consolidated financial results for Livermore Investments Group Limited ("Livermore" or "the Company") and its subsidiaries (together "the Group") for the six months ended 30 June 2013. 

During the first half of 2013, the Group generated net income of USD 7.3m, which represents earnings per share of USD 0.04. Overall NAV increased by 2.3% to USD 0.89 per share. During the reporting period, management continued to actively manage the financial portfolio and reduced exposure to subordinated bank bonds while increasing exposure to the US credit markets, which provided attractive risk adjusted returns, albeit at a lower rate than prior years.

Wyler Park, our investment property in Bern, Switzerland performed well, generating over CHF 2.7m in rent during the period. The property is fully rented. Market valuation of Wyler Park has remained stable.

There were no significant developments in the private equity portfolio during the period.

Financial Review

The NAV of the Group as at 30 June 2013 was approximately USD 174.2m. The profit after tax for the first half of 2013 was USD 7.3m, which represents earnings per share of USD 0.04. The increase in NAV relates largely to gains from the financial portfolio partly offset by write downs on certain investments.

	30 June 2013		30 June 2012		31 December 2012
	US $m		US $m		US $m
Shareholders' funds at beginning of period	173.0		145.4

Livermore's Strategy

The financial portfolio is focused on fixed income instruments which generate periodic cash flows and include mainly exposure to senior secured and usually broadly syndicated US loans.  This part of the portfolio is geographically focused on the US with some exposure to Europe and emerging markets. In addition, the financial portfolio would include investments in select deep value public equities where management could exert influence.

The remaining portfolio is focused on Switzerland and Asia with investments primarily in real estate and select private equity opportunities.  Investments are focused on sectors that management believes will provide superior growth over the mid to long term with relatively low downside risk. 

Strong emphasis is given to maintaining sufficient liquidity and low leverage at the overall portfolio level and to re-invest in existing and new investments along the economic cycle. 

Repurchase of shares

Between 31 December 2012 and 30 June 2013, the Company repurchased 3,445,755 shares at an average price of USD 0.506 (£0.335) per share. On 30 June 2013, the Company held 108,830,818 shares in treasury. No additional shares were purchased between 30 June 2013 and before the beginning of the interim close period.

Dividends

No dividends are declared for the period ended 30 June 2013.

The Board of Directors will decide on the Company's dividend policy for 2013 based on profitability, liquidity requirements, portfolio performance, market conditions, and the share price of the Group relative to its NAV.

Richard Rosenberg	Noam Lanir
Chairman	Chief Executive

20 September 2013

Review of Activities

Economic & Investment Environment

Global growth increased only slightly from an annualized rate of 2.5 percent in the second half of 2012 to 2.75 percent in the first quarter of 2013. Growth continued to disappoint in major emerging market economies, reflecting, to varying degrees, infrastructure bottlenecks and capacity constraints, slower external demand growth, lower commodity prices, financial stability concerns, and, in some cases, weaker policy support. The Euro area faced a deeper recession as low demand, depressed confidence, and weak balance sheets interacted to exacerbate the effects on growth and the impact of tight fiscal and financial conditions. The U.S. economy expanded at a weaker pace as stronger fiscal contraction weighed on improving private demand. Japan, on the other hand, saw stronger than expected growth driven by consumption and net exports-the latter helped by the 20 percent depreciation of the yen since late 2012.

The second quarter saw the US economy grow 2.5% as compared to 1.1% in the first quarter and the Euro zone economy grew 0.3% as compared to a decline of 0.2% in the first quarter as financial conditions in the developing world eased. In Switzerland, real GDP grew by 0.5% in the second quarter following a 0.6% growth in the first quarter. Labour conditions in the US continued to improve and the headline unemployment rate declined. The housing sector in the US continued to recover and house prices increased steadily across the nation as investors and end-users took advantage of the low borrowing rates promoted by the US Federal Reserve's bond buying program.

Global financial and market conditions improved appreciably in the first five months of 2013 as developed market central banks continued to add stimulus to grow their respective economies. The US Federal Reserve continued its USD 85bn/month purchase of US Treasury and Mortgage Backed Securities, the European Central Bank reduced its main interest rate by 25bps and issued forward interest rate guidance, and the Japan Central Bank revealed plans to double its monetary base along with fiscal stimulus plans by the Japanese government to fight deflation. Equity markets recorded their peaks in mid-May 2013 with the S&P 500 Index up by 19%, the EuroStoxx 50 Index up by 7.5% and the Indian NIFTY 50 Index higher by 4.8%.

In May, however, uncertainty and financial markets volatility increased again in the wake of speculation that the US Federal Reserve may start scaling back its securities purchases and following disappointment over initial structural reform plans in Japan. In advanced economies, longer-term interest rate and financial market volatility increased. Emerging market economies were generally hit hardest, as recent increases in advanced economy interest rates and asset price volatility, combined with weaker domestic activity led to some capital outflows, equity price declines, rising local yields, and currency depreciation. While the EuroStoxx 50 Index and NIFTY 50 Index gave up all their gains of the year ending down 1.26% and 1% respectively, the S&P 500 Index recorded a gain of 14.5% from the levels at the start of the year. US 10 year Treasury bond yields ended the first half at a yield of 2.48% versus 1.7% at the end of last year.

High yield and bank loan spreads also tightened substantially between January and mid-May of 2013 as investors chased for yield. In particular, the High Yield and the Leveraged Loan markets performed relatively well amid steady credit fundamentals, low default rates, and increased inflows into funds before giving up some of the gains following the increase in longer term interest rates. High yield issuance swelled to USD 219bn as compared to USD 159.5bn for the same period last year. Bank Loan new issuance recorded its highest total ever with USD 398bn due to strong demand from investors looking for floating rate securities and the strong pace of CLO new issuance. As of 30 June 2013, the US last 12-month institutional loan default rate by principal was 1.37%. The S&P/LSTA Leveraged Loan Total Return Index was up 2.3% in the first half of the year.

Sources: International Monetary Fund (IMF), Swiss National Bank (SNB), European Central Bank (ECB), US Federal Reserve, Bloomberg

Review of Significant Investments

Name	Book Value US $m

* Net of related loan.

Wyler Park - Switzerland

Wyler Park is a top quality mixed-use property located in Bern, Switzerland. It has over 16,800 square meters of commercial area, 4,100 square meters of residential area, and another 7,100 square meters available for additional commercial development. The commercial part is leased entirely to SBB (AAA rated), the Swiss national transport authority wholly owned by the Swiss Confederation, and serves as the headquarters of their Passenger Traffic division. The commercial lease is 100% linked to inflation and ends in 2019 with two 5 year extension periods thereafter. The annual rental income from the commercial area of the project is CHF 4.26m.

Following the successful development of 39 residential apartments, the entire property is now fully rented. The annual rental income expected from the residential area is CHF 1.06m.

The property generated rent of CHF 2.7m during the first half of 2013.

Livermore is the sole owner of Wyler Park through its wholly owned Swiss subsidiary, Livermore Investments AG. The loan outstanding on the project is CHF 78.7m, which is a non-recourse loan to Livermore Investments AG backed only by this property. The loan matures in July 2014.

Management continues to evaluate the potential development of the additional commercial development rights of 7,100 square meters attached to the property.

SRS Charminar - India

Livermore invested USD 20m in 2008 in a leading Indian Real Estate company, in association with SRS Private and other investors as part of a total investment of USD 154m.

The investment in the investee company was in the form of compulsorily convertible debt and included a put option, which can be exercised if the investee company does not have an IPO within 3 years or if certain terms in the agreement are not met.  As reported previously, the Manager for this investment served a put option exercise notice to the promoters in 2009 and entered into an arbitration process to resolve disputes.  The arbitrator ruled in favour of investors and awarded investors the investment plus interest amounting to 30% IRR until 14 August 2009 and 18% IRR thereafter. 

Further, investors filed and won an interim order for injunction against the promoters and the company to prohibit sales, transfer or encumbering of the assets of the company.  Thereafter, the promoters filed against the arbitral award and the injunction order.  As at 30 June 2013 there was no change in the status of this case. On January 13, 2011 the Company Law Board ("CLB") passed an order and allowed Infrastructure Leasing & Financial Services Limited ("IL&FS") to become 80% shareholder and control the management of the company.

In 2012, the Manager has reported a finalization of settlement negotiations with IL&FS and the investee company. As per the terms of the settlement, INR 8.5Bn will be paid to the investors in four tranches over a five year period. The settlement is subject to certain court and regulatory approvals.

Due to the legal complexity and the receipt of the regulatory and court approvals required for the implementation of the proposed settlement as well as the various counterparties involved, the outcome remains uncertain.

The carrying amount of the investment is based on discounted expected cash flows and was reduced to USD 9.3m as of 30 June 2013 (Dec 2012: USD 10.1m).

Montana Tech Components AG ("Montana" or "MTC") - Europe

Montana, based in Austria, is a leading components manufacturer in the fields of Aerospace Components, Metal Tech, Energy Storage, and Industrial Components.

The Aerospace Components business segment manufactures specialized components for Airbus and Boeing and is the market leader.  The facilities are currently located in the US and in Switzerland with a new low cost facility in Romania recently built-out.  The company has a large market share in the US with Boeing and in Europe with Airbus. The "hard alloys" business field developed positively with increasing worldwide demand for aircraft from emerging markets as well as modernization of aircraft fleets in the US and Europe.

The Energy Storage business is a market leader in hearing aid batteries and rechargeable batteries with a strong brand (VARTA Micro Power). VARTA has formed a significant joint venture with the Volkswagen group to develop batteries for hybrid cars. The Energy Storage business division benefited from its strong position in the growing market of medical technology, which is largely independent of economic conditions.

Metal Tech business segment operates in a niche area and is a market leader in an otherwise highly fragmented industry.  This business segment produces tools for identification and marking of steel products. The Metal Tech business segment faced declining revenues as steel demand softened.

In November 2012, Montana acquired the Croatian aluminium packaging group "Aluflexpack", the biggest Croatian flexible packaging manufacturer and the third largest in the relevant European market.

In the first half of 2013, Montana recorded sales of EUR 261m, EBITDA of EUR 36.7m, and EBIT of EUR 22.4m.

In July 2013 Montana raised EUR 90m through secured loans of 3 and 5 year maturities. Proceeds from the loan will be partially used to refinance existing bank loans and finance the growth of the group.

Livermore and certain other minority shareholders in MTC have raised concerns about related party transactions between MTC and its majority shareholder as well as the unequal treatment of minority shareholders by the Board of MTC. Livermore is pursuing an activist role in order to increase transparency, ensure equal treatment of minority shareholders, and potentially gain representation on the Board of MTC. At the 2012 Annual General Meeting of Montana, the Board of Directors of Montana was denied discharge for the last two years. At the 2013 Annual General Meeting, the Board of Directors did not request a discharge.

Private Equity Funds

The other private equity investments held by the Group are in the form of Managed Funds (mostly closed end funds) mainly in the emerging economies of India and China. The investments of these funds into their portfolio companies were mostly done in 2008 and 2009. Overall, during the first half of 2013 the investment environment relating to most funds was challenging and the Group expects that substantial exits of portfolio companies should materialize between 2014 and 2016.

Name	Book Value US $m
SRS Private (India)	3.8
Evolution Venture (Israel)	2.7
India Blue Mountains (India)	1.8
Da Vinci (Russia)	1.2
Blue Ridge  Capital (China)	0.6
Panda Capital (China)	0.6
Elephant Capital (India)	0.4
Other investments	0.2
Total	11.3

SRS Private Fund: SRS Private is a private equity fund focused on real estate in India. The fund has invested in residential and commercial projects as well as directly in certain real estate companies. The assets are primarily located in and around major cities of India such as Mumbai and Hyderabad.

Evolution Venture: Evolution is an Israel focused Venture Capital fund. It invests in early stage technology companies. Its investments include a carrier-class Mobile Broadband Wireless Wi-Fi solutions company, a language enhancement products company, a software company operating in the digital radio market, a software testing tool, and a virtualization technology company.

India Blue Mountains: India Blue Mountains is a leading hotel and hospitality development fund that is developing 4 star and 5 star hotels in India. The fund has acquired land and is in the process of developing three hotels in prime areas of Mumbai, Pune and Goa. All hotels will be managed by the Accor Group (Novotel brands). Accor has also invested equity and holds a 26% stake in all of the hotels.

The Pune hotel is being built on a land area of 70,200 sq ft with a total built-up area of approximately 343,297 sq ft. The hotel is expected to be a Novotel brand hotel with 223 rooms and two floors have been earmarked for commercial office space. The fund expects the hotel to be ready and open for business in the last quarter of 2013.

The Mumbai hotel is on a 82,609 sq ft land site with a built-up area of approximately 550,216 sq ft. The hotel will be a Novotel brand hotel with 543 rooms.

For the Goa hotel, land measuring 20 acres was purchased at Majorda beach in Goa having 200 meters of sea front with a white sandy beach from nearly 40 parcels of land. Notification of the land for settlement is a government process and it has not been concluded so far despite expectations and is currently pending with the Town Planning department.

Livermore management believes that there are significant uncertainties with respect to delivery timelines and financing possibilities for the Mumbai project in the current environment. In addition, the Goa project rezoning has not been concluded. As a result, Livermore has decided to impair the valuation of the investment to USD 1.8m.

Da Vinci: The fund is primarily focused on Russia and CIS countries. The fund is primarily invested in the Moscow Exchange and a Ukrainian coal company. On February 15, 2013 Moscow Exchange announced the successful pricing of its initial public offering (IPO) at a price of RUB 55 per share and the total market capitalization of Moscow Exchange at IPO amounted to approximately USD 4.2bn. The Group's investment in the fund was valued at USD 1.2m as of 30 June 2013.

Blue Ridge: Blue Ridge is a China focused private equity fund. The fund has made investments in six portfolio companies. Portfolio companies include a distressed real estate turnaround company, a plastic and chemicals manufacturer, a higher education company, an innovative bio-pesticide company, a software company specializing in Oil & Gas applications and a refinery.

Panda Capital: China-based private equity fund focused on early-stage industrial operations in China and Taiwan, which represent strong growth opportunities. The fund's main investment is in a bamboo flooring company in China, which provides an innovative low cost alternative to hardwood flooring in shipping containers.  The manager is in the process of building up operational capacity for product manufacturing. This investment could generate attractive returns once the shipping industry recovers from the current downturn.

Elephant Capital: India-focused private equity fund, which is AIM quoted (formerly called Promethean India plc).  (Ticker: ECAP).  Its portfolio investments include a leading tiles manufacturer in India, an established automotive components manufacturer, a media business with an exclusive content library, and an online venture to distribute cricket related content. 

As of February 2013, the NAV of the fund was 40 pence per share. On 27 February 2013, Elephant Capital launched a tender offer at a price of 39 pence per share. Livermore tendered its shares and the fund purchased back 49.19% of Livermore's shareholding. Additional information about the fund and its portfolio is available atwww.elephantcapital.com

Financial Investments and Corporate Bond Trading

The Group manages a financial portfolio valued at USD 106m (net of leverage) as at 30 June 2013, which is invested mainly in US credit and special situation equity opportunities. During the period, management reduced exposure to subordinated and perpetual debt issued by European banks at strong levels.

Senior Secured Loans and Collateralized Loan Obligations (CLO):

During the first half of 2013 the Group continued to re-invest distributions from its CLO portfolio into new issue CLO transactions. CLOs are managed portfolios invested into diversified pools of senior secured loans and financed with long term financing pre-fixed at the time of issuance.

The US senior secured loan market continued to offer good risk adjusted returns as an inflation linked asset class with a senior secured claim on the borrower and with overall low volatility and low correlation to equity market. The CLO structure proved itself through the financial crisis and thereafter as a robust means of investing into the loan asset class.

The fundamentals of the US corporate credit market continued to show resilience during the first half of 2013. Trailing 12 month default rate for the S&P/LTSA index was 1.37% by principal amount at the end of second quarter of 2013 and is much below the historical average. New issue loan volumes surged to record levels driven primarily by opportunistic re-pricing and re-financings by existing issuers as investors poured over USD 31bn into loan funds and USD 46bn of new issues CLO transactions were originated during H1 2013.  The S&P/LTSA index of issuers generated a total return of 2.3% for the first half of 2013.

The CLO portfolio continued to perform well on account of low current default rates and a benign default outlooks and stable credit fundamentals of their underlying loans. At the end of the reporting period all of our CLO investments were passing their coverage tests (thereby making dividend distributions). During the first half of 2013, the portfolio generated USD 11.9m in cash distributions. CLO payments remained strong but reduced as loan spreads narrowed on account of aggressive re-pricings and re-financings in the loan market and higher pre-payment rates. The loan spread levels seem to have stabilized after a brief sell-off in high-yield in June 2013 and prepayment rates seem to have settled down as well. As discussed in the 2012 annual report, cash distributions from pre-crisis CLOs are on the decline as most pre-crisis CLOs end their reinvestment periods and begin amortization of the cheapest liabilities or face other reinvestment constraints, divert cash-flow to pay manager incentive fees, and loan re-pricing activity reduces excess spread. While new issue CLOs also face lower excess spread, they have longer reinvestment periods which should enable them to weather a downturn, and benefit from wider spreads or any volatility in loan prices in the future.  In anticipation, the Group started to focus on new issue CLOs and reduce exposure to pre-crisis CLOs since 2012. As of 30 June 2013, over 50pc of the Group CLO portfolio is invested in post-crisis CLOs.

Secondary market prices for CLOs rose in January 2013 but subsequently fell as high prepayment rates and significant loan re-pricing activity reduced excess spread and future anticipated cash distributions. Pre-crisis CLOs which were past their reinvestment periods faced very high prepayment rates and paid down their cheapest liabilities at a faster pace. Secondary market prices for CLO equity improved in June and Q3 2013 as loan spreads have stabilized at wider than the tightest levels and re-pricing activity has reduced substantially.

As US interest rates are expected to remain low until 2015 and very few loans mature in the near term, corporate defaults are expected to remain low in the near-medium term. Management believes that the environment should remain attractive for investments in CLO income notes.  In the first half of 2013, Livermore launched another new issue cash-flow CLO as an anchor investor and participated in select US and emerging market new issue CLOs of leading managers.

While management maintains a positive view, mid-long term performance may be negatively impacted by a pull back into a substantial double dip recession in US and/or Europe involving a spike in defaults.  Despite positive developments in the overall health of the US economy, we acknowledge the high unemployment, continued EU sovereign debt crisis as well the headwinds the economy may face relating to the austerity measures and the US debt ceiling discussions and geopolitical risks.

Following its success in the senior secured loan and CLO asset class, the Group has decided to launch a Credit Investment Platform in the US with the aim of managing CLOs and loan funds. In September 2013, the Group announced that Marc Boatwright, who served as the Senior Portfolio Manager of ING's Senior Loan Group, will join to launch this platform. Mr. Boatwright was the portfolio manager of thirteen of ING's CLOs, including all seven that were issued from 2011 to June 2013.

Public Equities:

Babylon Ltd ("Babylon"): Babylon is an International Internet Company based in Israel and listed on the Tel-Aviv Stock Exchange (TASE: BBYL).  It is a leading translation and language tools provider and its language translation software product is a recognized name in the industry. The company generates revenues through Search and Advertising, Online Sales, Corporate Sales, and Telesales. 

Babylon has achieved strong growth in its Search and Advertising business since 2009. In its second quarter 2013 results, it reported an 8% increase in revenues to USD 44.9m as compared to USD 41.6m for the corresponding quarter in the previous year and net profit increased 85% to USD 11m from USD 6m in the corresponding quarter of the previous year. Babylon paid a dividend of USD 0.44 per share on 20 June 2013.

Noam Lanir, the majority shareholder of the Group, is also a major shareholder in Babylon (note 21).

The following is a table summarizing the financial portfolio as of month-end June 2013 

Name	30 June 2013 Book Value US $m	30 June 2012 Book Value US $m	31 December 2012 Book Value US $m
Investment in the loan market through CLOs	96.1	68.7	73.2
Babylon	23.2	33.5	22.3
Corporate Bonds	4.3	27.6	10.5

The following table reconciles the review of activities to the Group's financial assets and investment property as of month-end June 2013.  

Name	30 June 2013 Book Value US $m
Significant investments	56.7
Private Equity Funds	11.3
Financial portfolio	128.4
Total	196.4
Available-for sale financial assets (note 4)	124.4
Financial assets at fair value through profit or loss (note 5)	32.6
Net Investment property (notes 8/13)	39.4
Total	196.4

Events after the reporting date

There were no significant events after the reporting date. 

Litigation

At the time of this Report, there is one litigation matter that the Group is involved in. Further information is provided in note 27 to the interim condensed consolidated financial statements.

Livermore Investments Group Limited

Condensed Consolidated Statement of Financial Position

as at 30 June 2013

Note

30 June 2013 Unaudited

Livermore Investment Group Limited Condensed Consolidated Income Statement for the six months ended 30 June 2013
	Note	Six months ended 30 June 2013 Unaudited	Six months ended 30 June 2012 Unaudited	Year ended 31 December 2012 Audited
		US $000	US $000	US $000
Investment Income
Interest and dividend income	17	12,611	7,310	22,140
Investment property income	18	2,661	2,722	5,382
Gain on investments, net	19	1,083	14,393	7,306
		------	------	------
Gross profit		16,355	24,425	34,828

Livermore Investment Group Limited

Condensed Consolidated Statement of Comprehensive Income

for the six months ended 30 June 2013

		Six months ended 30 June 2013 Unaudited	Six months ended 30 June 2012 Unaudited	Year ended 31 December 2012 Audited
		US $000	US $000	US $000
Profit for the period / year		7,284	19,261	25,657
Other comprehensive income:
Available for sale financial assets
- Fair value (losses) / gains		(5,176)	(2,407)	3,329
- Reclassification to profit or loss due to disposals		(356)	(1,128)	(3,178)
- Reclassification to profit or loss due to impairment		1,279	14,045	18,133
Foreign exchange (losses) /  gains  from translation of  subsidiaries		(80)	(9)	6
		------	------	------
Total comprehensive income for the period / year		2,951	29,762

The total comprehensive income for the period is wholly attributable to the owners of the parent company.

Livermore Investments Group Limited

Condensed Consolidated Statement of Changes in Equity

for the period ended 30 June 2013

	Note	Share capital	Share premium	Treasury  Shares	Share option reserve	Translation  reserve	Investment revaluation reserve	Retained earnings	Total
		US $000	US $000	US $000	US $000	US $000	US $000	US $000	US $000
Balance at 1 January 2012		-	215,499	(18,772)	5,777	(886)	(4,285)	(51,896)	145,437
Purchase of own shares	11	-	-	(16,408)	-	-	-	-	(16,408)
		------	------	------	------	------	------	------	------
Transactions with owners		-	-	(16,408)	-	-	-	-	(16,408)
		------	------	------	------	------	------	------	------
Profit for the year		-	-		-	-	-	25,657	25,657
Other comprehensive income:
Available-for-sale financial assets
- Fair value gains		-	-	-	-	-	3,329	-	3,329
- Reclassification to profit or loss due to disposals		-	-	-	-	-	(3,178)	-	(3,178)
- Reclassification to profit or loss due to impairment		-	-	-	-	-	18,133	-	18,133
Foreign exchange gain arising from translation of subsidiaries		-	-	-	-	6	-	-	6
		------	------	------	------	------	------	------	------
Total comprehensive income for the year		-	-	-	-	6	18,284	25,657	43,947
		------	------	------	------	------	------	------	------
Balance at 31 December 2012		-	215,499	(35,180)	5,777	(880)	13,999	(26,239)	172,976
Purchase of own shares	11	-	-	(1,722)	-	-	-	-	(1,722)
		------	------	------	------	------	------	------	------
Transactions with owners		-	-	(1,722)	-	-	-	-	(1,722)
		------	------	------	------	------	------	------	------
Profit for the period		-	-	-	-	-	-	7,284	7,284
Other comprehensive income:
Available-for-sale financial assets
- Fair value  losses		-	-	-	-	-	(5,176)	-	(5,176)
- Reclassification to profit or loss due to disposals		-	-	-	-	-	(356)	-	(356)

Comparative period	Note	Share capital	Share premium	Treasury  Shares	Share option reserve	Translation  reserve	Investment revaluation reserve	Retained earnings	Total
		US $000	US $000	US $000	US $000	US $000	US $000	US $000	US $000
Balance at 1 January 2012		-	215,499	(18,772)	5,777	(886)	(4,285)	(51,896)	145,437
Purchase of own shares		-	-	(6,623)	-	-	-	-	(6,623)
		------	------	------	------	------	------	------	------
Transactions with owners		-	-	(6,623)	-	-	-	-	(6,623)
		------	------	------	------	------	------	------	------
Profit for the period		-	-	-	-	-	-	19,261	19,261
Other comprehensive income:
Available-for-sale financial assets
- Fair value losses		-	-	-	-	-	(2,407)	-	(2,407)
- Reclassification to profit or loss due to disposal

Livermore Investments Group Limited

Condensed Consolidated Statement of Cash Flows

for the period ended 30 June 2013

	Note	Six months ended 30 June 2013 Unaudited	Six months ended 30 June 2012 Unaudited	Year ended 31 December 2012 Audited
		US $000	US $000	US $000
Cash flows from operating activities
Profit before tax		7,287	19,425	26,867
Adjustments for:
Depreciation expense	21	3	50	81
Interest expense	22	2,025	2,159	4,236
Interest and dividend income	17	(12,611)	(7,310)	(22,140)
Gain on investments	19	(1,083)	(14,474)	(7,306)
Exchange differences		520	(23)	(610)
		------	------	------
		(3,859)	(173)	1,128
Changes in working capital