Listed Company Information

KENFORD GROUP<00464> - Results Announcement

Kenford Group Holdings Limited announced on 14/07/2006:
(stock code: 00464 )
Year end date: 31/03/2006
Currency: HKD
Auditors' Report: Unqualified

                                                        (Audited   )
                                     (Audited   )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/04/2005    from 01/04/2004
                                     to 31/03/2006      to 31/03/2005
                               Note  ('000      )       ('000      )
Turnover                           : 403,551            464,910           
Profit/(Loss) from Operations      : 10,476             66,672            
Finance cost                       : (5,728)            (3,912)           
Share of Profit/(Loss) of 
  Associates                       : N/A                N/A               
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A               
Profit/(Loss) after Tax & MI       : 4,147              57,403            
% Change over Last Period          : -92.78    %
EPS/(LPS)-Basic (in dollars)       : 0.01094            0.19130           
         -Diluted (in dollars)     : 0.01090            N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 4,147              57,403            
Final Dividend                     : 0.3 cent           Nil
  per Share                                              
(Specify if with other             : N/A                N/A
B/C Dates for 
  Final Dividend                   : 05/09/2006         to 08/09/2006 bdi.
Payable Date                       : 22/09/2006
B/C Dates for Annual         
  General Meeting                  : 05/09/2006         to 08/09/2006 bdi.
Other Distribution for             : N/A
  Current Period                     
B/C Dates for Other 
  Distribution                     : N/A   

1. Basis of preparation

In the current year, the Group has applied, for the first time, a number 
of new Hong Kong Financial Reporting Standards ("HKFRSs") issued by the 
Hong Kong Institute of Certified Public Accountants ("HKICPA") that are 
effective for accounting periods beginning on or after 1 January 2005. 
Pursuant to the adoption of new HKFRSs, certain of the Group's accounting 
policies were changed. The application of the new HKFRSs has also resulted 
in a change in the presentation of the consolidated income statement, 
consolidated balance sheet, consolidated cash flow statement and the 
consolidated statement of changes in equity. The changes in presentation 
have been applied retrospectively.

The applicable HKFRSs are set out below and the 2005 financial statements 
have been restated in accordance with the relevant requirements, where 

HKAS 1          Presentation of Financial Statements
HKAS 2          Inventories
HKAS 7          Cash Flow Statements
HKAS 8          Accounting Policies, Changes in Accounting Estimates and 
HKAS 10 Events after the Balance Sheet Date
HKAS 12 Income Taxes
HKAS 14 Segment Reporting
HKAS 16 Property, Plant and Equipment
HKAS 17 Leases
HKAS 18 Revenue
HKAS 19 Employee Benefits
HKAS 21 The Effects of Changes in Foreign Exchange Rates
HKAS 23 Borrowings Costs
HKAS 24 Related Party Disclosures
HKAS 27 Consolidated and Separated Financial Statements
HKAS 32 Financial Instruments: Disclosure and Presentation
HKAS 33 Earnings per Share
HKAS 37 Provisions, Contingent Liabilities and Contingent Assets
HKAS 39 Financial Instruments: Recognition and Measurement
HKFRS 2 Share-based Payment
HKAS-INT 15     Operating Leases - Incentives

The adoption of new/revised HKASs 1, 2, 7, 8, 10, 12, 14, 16, 18, 19, 21, 
23, 24, 27, 33, 37 and HKAS-INT 15 did not result in substantial changes 
to the Group's accounting policies.  In summary:

HKASs 8, 16 and 21 affect certain disclosures of the financial statements.
HKASs 1, 2, 7, 10, 12, 14, 18, 19, 23, 27, 33, 37 and HKAS INT-15 had no 
material effect on Group's accounting policies.

HKAS 24 affects the identification of related parties and the disclosure 
of related party transactions.

The adoption of HKAS 17 has resulted in a change in accounting policy 
relating to leasehold land. In previous years, owner-occupied leasehold 
land and buildings were included in property, plant and equipment and 
measured using the cost model.  Under HKAS 17, the land and buildings 
elements of a lease of land and buildings are considered separately for 
the purposes of lease classification. To the extent that the allocation of 
the lease payments between the land and buildings elements can be made 
reliably, the leasehold interests in land are reclassified to "Interests 
in leasehold land held for own use under operating leases", which are 
carried at cost and amortised over the lease term on a straight-line 
basis. The change in accounting policy is adopted retrospectively and 
reflected by way of prior period adjustment and restatement of comparative 
figures. Alternatively, where the allocation between the land and 
buildings elements cannot be made reliably, the leasehold interests in 
land continue to be accounted for as property, plant and equipment.

HKAS 32 requires retrospective application. HKAS 39, generally does not 
permit the recognition, derecognition or measurement of financial assets 
and liabilities on a retrospective basis. 

The Group has applied HKFRS 2 "Share-based Payment" which requires an 
expense to be recognized where the Group buys goods or obtains services in 
exchange for shares or rights over shares ("equity-settled transactions"), 
or in exchange for other assets equivalent in value to a given number of 
shares or rights over shares ("cash-settled transactions"). The principal 
impact of HKFRS 2 on the Group is in relation to the expensing of the fair 
value of share options of the Group determined at the date of grant of the 
share options over the vesting period.

Summary of the effect of the changes in accounting policies

(i) The adoption of HKAS 17 resulted in: 
                                            2006        2005       2004
                                        31 March    31 March    1 April
                                         HK$'000     HK$'000    HK$'000
Decrease in property, plant and equipment(3,247)     (3,288)    (1,790)
Increase in leasehold land held for own use under operating leases              
                                         3,247       3,288      1,790
Increase in net assets                   -           -          -
                                                2006            2005    
For the year ended 31 March                     HK$'000         HK$'000 
Decrease in cost of sales-depreciation expense  (71)            (44)    
Increase in cost of sales-amortisation expense  71              44      
Decrease in profit for the year                   -             -       

(ii) The adoption of HKFRS 2 resulted in:
                                                2006            2005    
                                                HK$'000         HK$'000 
As at 31 March                                          
Increase in share- based compensation reserve   1,000           -       
For the year ended 31 March                                             
Increase in administrative expenses - staff costs       
                                                1,000           -
Decrease in basic earnings per share (cents)    0.2639          -       
Decrease in diluted earning per share (cents)   0.2628          -       
2. Earnings per share

The calculation of basic and diluted earnings per share is based on the 
Group's net profit attributable to shareholders of approximately 
HK$4,147,000(2005: HK$57,403,000).

The number of shares used to calculate the basic earnings per share is 
based on the weighted average number of 378,904,000 (2005: 300,000,000) 
ordinary shares in issue during the year. The diluted earnings per share 
is based on the weighted average number of ordinary shares in issue during 
the year plus the weighted average number of 1,679,000 (2005: nil) 
ordinary shares deemed to be issued if all the outstanding options had 
been exercised.