Cross Oak Inns plc - The Tax Shelter Report

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Part IV – Risk factors Prospective investors should be aware that the value of an investment in the Company may go down as well as up, the Shares are not readily realisable and there is no certainty that they will get back the full amount which they invest. In particular, the following risk factors should be considered prior to an investment in the Company: • The Company does not have an established trading record and its prospects should be considered in the light of the risks associated with companies in their formative years. • The loss to the business of either Peter Eyles or Dinah Young could have an adverse effect on the Company’s trading performance. • The Company may not be able to source a sufficient number of premises for acquisition. • The Investors’ Compensation Scheme operated by the FSA or by any other compensation scheme will not cover the acquisition or performance of the Shares. • There are circumstances in which an investor could cease to qualify for the taxation advantages offered by the EIS. • If the Company ceases to carry on the business outlined in this document during the Three Year Period, this could prejudice the qualifying status of the Company under the EIS. • The information in this document is based upon current tax law and practice and other legislation and any changes in the legislation or in the levels and bases of, and reliefs from, taxation may affect the value of an investment in the Company. • Circumstances may arise where the Directors believe that the interests of the Company are not best served by acting in a way that preserves the EIS status of the Company. In such circumstances, the Company cannot undertake to conduct its activities in a way designed to preserve any such relief or status. • Opportunities to achieve the possible exit routes of trade sale, flotation or share buyback may not coincide with the timing of the highest valuation of the Company. The investment described in this document may not be suitable for all recipients. Accordingly, investors are recommended to consult an investment adviser authorised under the Financial Services and Markets Act 2000, and an appropriately qualified taxation adviser, prior to investing. 18
Part V– Financial information on the Company Wilkins Kennedy Chartered Accountants Gladstone House 77-79 High Street Egham Surrey TW20 9HY 4 October 2004 The Directors Cross Oak Inns plc 82 St John Street London EC1M 4JN Dear Sirs CROSS OAK INNS PLC (“CROSS OAK INNS” or “THE COMPANY”) Introduction We report on the financial information on Cross Oak Inns plc (“Cross Oak Inns”) set out below. This financial information has been prepared for inclusion in the prospectus (the “Prospectus”) dated 4 October 2004 of Cross Oak Inns. Basis of preparation The financial information set out below is based on financial information for the company for the period from its date of incorporation on 3 June 2004 to 17 September 2004 and shows its state of affairs as at 17 September 2004. This financial information has been extracted from the financial records of the Company with no adjustments being considered necessary. No audited financial statements have been prepared for submission to members in respect of any period since incorporation. Responsibility The financial information in relation to Cross Oak Inns as set out below is the responsibility of the Directors of the Company (the “Directors”). The Directors of Cross Oak Inns are responsible for the contents of the Prospectus in which this report is included. It is our responsibility to compile the financial information set out in our report, to form an opinion on the financial information and to report our opinion to you. Basis of opinion We conducted our work in accordance with the Statements of Investment Circular Reporting Standards issued by the Auditing Practices Board. Our work included an assessment of evidence relevant to the amounts and disclosures in the financial information. We planned and performed our work so as to obtain all the information and explanations which we consider necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial information is free from material misstatement whether caused by fraud or other irregularity or error. Opinion In our opinion, the financial information gives, for the purposes of the Prospectus, a true and fair view of the state of affairs of Cross Oak Inns as at 17 September 2004. Consent We consent to the inclusion in the Prospectus of this report and accept responsibility for the purposes of paragraphs 45(8)(b) of Schedule 1 to the Public Offers of Securities Regulations 1995. 19
Page 1 and 2: Cross Oak Inns plc Offer for subscr
Page 3 and 4: Contents Page No. Statistics of the
Page 5 and 6: Definitions The following terms use
Page 7 and 8: Directors, Secretary and Advisers D
Page 9 and 10: Part II - Information on the Compan
Page 11 and 12: This consistently above average gro
Page 13 and 14: Management Agreement The Manager of
Page 15 and 16: Possible Exit Routes for Investors
Page 17: EIS Taxation Advantages The Company
Page 21 and 22: 3. Share premium account There was
Page 23 and 24: 4 CGT Deferral Relief To the extent
Page 25 and 26: 2.5 The Directors are authorised in
Page 27 and 28: 4.2.7 Redemption Subject to the pro
Page 29 and 30: Hugh William Whitbread Epicurean Br
Page 31 and 32: Peter Eyles and Dinah Young are dir
Page 33 and 34: any information in relation to the
Page 35 and 36: Part VIII - General terms and condi
Page 37 and 38: xvii.authorises the Company or its
Page 39 and 40: Part IX - Application procedure The

Cross Oak Inns plc - The Tax Shelter Report

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