Notes to the Financial Statements 30 June 2008 - Abterra

Notes to the Financial Statements30 June 200811. DISCONTINUED OPERATIONS AND DISPOSAL GROUP CLASSIFIED AS HELD FOR SALEOn 1 July 2008, the Board of Directors of Abterra Ltd. announced the decision to cease its spa pool and bath roomproducts business operated by its 60% owned subsidiaries World Spa Industries (M) Sdn Bhd and Monarch SpaMalaysia Sdn Bhd (collectively know as “WSM Group”) with effect from 30 June 2008.The decision to cease the spa pool and bath room products business is in line with the Group strategy to focus itseffort and resources in the commodities and minerals business.The cessation of WSM Group business is not expected to have a material impact on the financial performanceof the Company and its subsidiaries. The assets and liabilities related to WSM Group are classified as “disposalgroup held for sale” on balance sheet, and the results from WSM Group are presented separately on the incomestatement as “Discontinued operations”.Subsequent to the year end, WSM Group had undergone members’ voluntary winding-up.The results of the discontinued operations of the group are as follows:Group2008 2007$’000 $’000Turnover 320 544Cost of sales (252) (434)Gross profit 68 110Other operating income 16 39Administrative expenses (144) (181)Other operating expenses (307) (131)Financial expenses (45) (51)Other items (net) - (1)Loss before income tax from discontinued operations (412) (215)Income tax expense - (2)Loss from discontinued operations (412) (217)72ABTERRAAnnual Report 2008