2008 Interim Update 110908

10 Sep 08
Nordic Panorama Plc

Trading Update for the six months to 30 June 2008
Commentary

Introduction
The de-listing of the Company’s shares on AIM took effect from 12 August 2008 following shareholder approval at the General Meeting held on 4 August 2008. It is the Company’s intention to keep shareholders informed of its financial and operating performance and in this regard we are updating shareholders with the Company’s financial results for the six months to 30 June 2008. In order to maintain good corporate governance we are pleased to announce the appointment to the Board of Alex Borrelli as an independent non-executive director. He is a chartered accountant who has specialised in the area of corporate finance for over twenty years and was a director of the Company’s nominated adviser until the de-listing. The Directors continue to focus on enhancing Shareholder value through the Company’s two business areas in Norway: the operation of the Vradal Panorama ski resort and property development in terms of the construction and sales of chalets and cabins within the resort area.

Results
Group revenue for the six months to 30 June 2008 amounted to £3.642m, which generated a gross profit of £2.044m and an operating profit before tax of £0.584m.

Review of the Period
Revenues were up by 70% over the same period on 2007. The property development side performed well during the first half of 2008 albeit there were no plot sales during this period. As previously indicated the Company has concentrated on cabin sales this year which helps to feed the expansion of the resort itself. The marketing and promotional initiatives that were put in to place in the second half of 2007 have been maintained this year which has provided a good impetus for cabin sales for 2008. As a result the cabin sales for the first half of 2008 show a substantial improvement on the first half of last year. The winter snow conditions were also good in the early part of 2008 which helped to produce healthy sales for the ski resort, albeit the season ended somewhat prematurely this year as a result of an early Easter.

Margins are running at 56% for the six months to June 2008 compared with 72% for the same period last year. The drop in margin is predominantly due to the greater concentration of lower margin cabin sales within the sales mix this year compared with the higher margin skisenter and plot sales. Margins on cabin sales are running at 39% compared with 50% for 2007. The slow down in the market has meant that while prices have had to be suppressed and more “add ons” offered the costs of supplies have continued to rise.

Other administrative costs were 33% higher for the first half of 2008 than 2007. This was the result of the operation being fully up to speed in being run as a quoted company in terms of its infrastructure and the associated professional costs in dealing with corporate matters. The Company also incurred little in the way of marketing costs in the first half of last year.

Current Trading and Outlook
The Company is continuing with its marketing and promotion initiatives in order to maximise its sales potential and is cautiously optimistic for the remainder of 2008. It has in hand a number of contracted cabin sales requiring completion which will help towards the second half budgeted sales forecasts. However the troubled financial markets and current “credit crunch” is affecting the real estate market which, together with the recent increase in interest rates in Norway may adversely impact property sales in the second half of the year. We are already seeing a slowdown in the market and sales in general are taking more time to complete together with the increasing incentives required in terms of closing the deals.



This update and any further information on the Company can be found on the Company’s website www.nordicpanoramaplc.com

For further information please contact:

Nordic Panorama Plc
Geir Kjaernes, CEO 00 47 23 133027
Norman Lott, FD 0207 153 4920
Alex Borrelli 0207 747 7488

























































Nordic Panorama Plc

Interim Results for the Six Months to 30 June 2008

Consolidated Income Statement
For the six months ended 30 June 2008
Unaudited Unaudited Audited
6 months to 6 months to Year to
Notes 30-Jun-08 30-Jun-07 31-Dec-07
(£000) (£000) (£000)

Revenue 3,642 2,133 5,284

Cost of sales (1598) (595) (1,917)

Gross profit 2,044 1,538 3,367

Administrative costs (1,460) (1,820) (3,438)

Exceptional impairment of goodwill arising on reverse acquisition (725) (868)
Other administrative costs (1,460) (1,095) (2,570)


Operating profit/(loss) 584 (282) (71)


Finance income 16 8 18
Finance costs (220) (111) (171)

Profit/(loss) before taxation 380 (385) (224)

Taxation (146) (118) (171)


Profit/(loss) after taxation 234 (503) (395)


Profit/(loss) per share (basic and diluted) 0.03p (0.06p) (0.05p)

Consolidated Statement of Recognised Income and Expense
Unaudited Unaudited Audited
6 months to 6 months to Year to
30-Jun-08 30-Jun-07 31-Dec-07
(£000) (£000) (£000)

Exchange differences on translation of foreign operations 146 28 320

Profit/(loss) for the period 234 (503) (395)

Total recognised income and expense for the period 480 (475) 75


Nordic Panorama Plc

Consolidated Balance Sheet
Unaudited Audited
As at As at
Notes 30-Jun-08 31-Dec-07
(£000) (£000)
Assets
Non current assets
Property, plant and equipment 4,410 4,253
Financial assets 1 -
Deferred tax asset 103 136
Other non-current assets 44 50

Total non current assets 4,558 4,439
Current assets
Inventories 1,940 2,025
Trade and other receivables 938 1,498
Cash and cash equivalents 163 118
Total current assets 3,041 3,641

Total assets 7,599 8,080
Liabilities
Current liabilities
Trade and other payables 914 1,335
Borrowings 1,180 1,867
Tax liabilities 163 109

Total current liabilities 2,257 3,311

Non current liabilities
Borrowings 1,974 1,806
Deferred tax 217 192

Total non current liabilities 2,191 1,998

Total liabilities 4,448 5,309

Total net assets 3,151 2,771

Equity
Capital and reserves
Share capital - Issued and fully paid 8,222 8,222
Share Premium 345 345
Other reserves (7,963) (7,963)
Foreign exchange reserve 466 320
Retained earnings 2,081 1,847

Total equity 3,151 2,771


Notes to the financial statements

1 Revenue

Unaudited Unaudited Audited
An analysis of the Group’s revenue is as follows 6 months to 6 months to Year to
30-06-08 30-06-07 31-12-07
(£’000) (£’000) (£’000)

Ski centre 1,108 727 1,122
Plot sales - 97 513
Cabin sales and rental 2,534 1,309 3,649

3,642 2,133 5,284

2 Earnings/(loss) per share

Unaudited Unaudited Audited
6 months to 30-06-08 6 months to 30-06-07 Year to 31-12-07
(£’000) (£’000) (£’000)
Earnings
Earnings for the purposes of basic and diluted earnings per share has been calculated based on the profit/(loss) after taxation 234 (503) (395)



Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share

822,162,575

822,162,575

822,162,575

Number of dilutive shares under option - -

Weighted average number of ordinary shares for the purposes of dilutive earnings per share

822,162,575

822,162,575

822,162,575


The calculation of diluted earnings per share assumes conversion of all potentially dilutive ordinary shares, however, as no share options have been granted there is no dilution.

3 Taxation

The tax expense represents the sum of the tax currently payable and any deferred tax.

The tax provision made is based on the prevailing Norwegian tax rate of 28% on the taxable profits of the Norwegian operating subsidiaries.