CAPT Capital Ideas

RNS Number:9338J
Capital Ideas PLC
14 December 2007

CAPT.L

              Capital Ideas plc (the "Company" or "Capital Ideas")

                                 Trading Update


The board of Capital Ideas is pleased to update shareholders on its activities.

Investment and Arrangement Fees

On 15 November 2007, the Company invested �50,000 in Primary Water plc ("Primary
Water"), acquiring a total of 1,428,571 ordinary shares at 3.5 pence per share
in cash. This investment was part of a large fundraising that is being
undertaken by Primary Water and in respect of which it has had firm indications
from potential investors in respect of a total of �1,500,000 to date. In
relation to this fundraising, Capital Ideas received a further 17,889,667
ordinary shares in Primary Water (which were also issued at 3.5 pence each) in
lieu of arrangement fees totalling �626,138. Following the investment, Capital
Ideas holds a total of 19,318,238 ordinary shares in Primary Water, representing
5.24% of its issued share capital.

Primary Water is a water exploration company that specialises in finding water
reserves deep in the earth's crust. The company has been successful in finding
and establishing two wells that produce water in two locations in New South
Wales, Australia. The Company has stated its intention to list on AIM in due
course. Prior to the investment, Arc Fund Management Limited ("Arc") and
Monument Capital Partners Limited (Monument"), companies of which Renwick Haddow
(Chief Executive of and substantial shareholder in Capital Ideas) is a director
of and is beneficially interested in, were together interested in approximately
15% of the issued share capital of Primary Water. Renwick Haddow is, therefore
considered a related party.

The Board of the Company (other than Renwick Haddow) considers, having consulted
with its nominated adviser, WH Ireland Limited, that the terms of the investment
are fair and reasonable insofar as its shareholders are concerned.

Acquisition of investments from Emerging UK Investments plc

On 30 November 2007, the Company agreed terms to acquire a number of investments
from Emerging UK Investments plc for a total consideration of �36,500 which is
payable, in cash, as to �10,000 by 31 December 2007 with the balance payable by
28 February 2008. The details of the share purchases are as follows:

Company Name   Market    Market     Number of         % acquired   Closing Share   Market value of
                         Capital*   Shares acquired                Price*          shares acquired*

Consolidated
Vending plc    AIM       �1.40m     4,625,450               1.8%           0.48p          �22,202


Pathway One    Plus      �1.90m     1,000,000               7.3%           9.75p          �97,500
plc            Quoted


Viatrade plc   Plus      �0.25m       272,600              11.1%          10.00p          �27,260
               Quoted


Famous
Retail         N/A       N/A           46,000               7.0%             N/A              N/A
Limited

* as at close of business on 13 December 2007

The board is pleased with these acquisitions as they bring considerable value to
the Company, having been made at a discount to the aggregate market value of the
shares acquired. The companies whose shares are the subject of the acquisitions
operate in a variety of sectors:

   * Consolidated Vending -an AIM quoted vending machine operator
   * Pathway One plc -a PLUS listed IT investor
   * Viatrade plc -a PLUS listed investment company
   * Famous Retail Ltd -an unlisted company operating a chain of retail
     outlets and an e-commerce website selling sporting and celebrity
     memorabilia.

Renwick Haddow is also Chairman of Emerging UK Investments plc and as a result
is considered a related party.

The directors of the Company (other than Renwick Haddow) consider, having
consulted with its nominated adviser, WH Ireland Limited, that the terms of the
investment are fair and reasonable insofar as its shareholders are concerned.

Disposal

On 31 October 2007, Capital Ideas plc disposed of 1,944,444 ordinary shares in
BritFilms Group plc ("BritFilms") for a net consideration of �50,000. This
disposal represents a profit of �43,750 on the price paid for these shares by
the Company and is another example of its success in profit realisation. These
proceeds will be re-invested in further acquisition opportunities.

Following this transaction, the Company retains a holding of 15,166,667 ordinary
shares in BritFilms, representing 6.5% of its issued share capital.

BritFilms manages the website www.britfilms.tv, which operates in the growing
online film channel arena and is looking at expanding into the online social
networking market.

Monument is a director of and, together with Arc, is interested in approximately
12% of the issued share capital of Britfilms. Renwick Haddow is, therefore,
considered a related party.

The directors of the Company (other than Renwick Haddow) consider, having
consulted with its nominated adviser, WH Ireland Limited, that the terms of the
investment are fair and reasonable insofar as its shareholders are concerned.

Outlook

Capital Ideas believes that current market conditions offer a favourable
environment for its core strategy of investing in distressed companies with the
aim of realising value through managing their turnaround and exiting at an
appropriate stage. The Company has therefore decided to broaden its strategy in
the turnaround arena in order to take advantage of the recent upturn in
attractive investment opportunities.

With this enhanced strategy in mind the Company has established a number of
divisions through which it will focus on specific areas of the market. The new
structure will assist the Company to earn income not only on returns from
investments but also from advisory fees and ongoing management fees, thus
improving the Company's quality of earnings.

The following subsidiaries have been established:

Capital Ideas Private Equity Limited:

This company will become the custodian for Capital Ideas plc's investments.
Investments currently held in the holding company will shortly be transferred to
this subsidiary.

Capital Ideas Turnaround Limited:

This company is seeking to acquire a minority stake in an insolvency
practitioner ("IP") and is currently in discussions with one party which may or
may not lead to an investment being made in due course. An investment in an IP
will ensure that the Company is able to seek quick and efficient advice on
current investments and on the restructuring potential of prospective
investments.

Capital Ideas Investment Management Limited:

This company has been established to provide deal flow and turnaround advice for
a new turnaround fund to be launched in January 2008. The company will earn
ongoing management fees and transaction fees from this fund.

Capital Ideas Property Investment Limited:

The Company has identified a number of opportunities to acquire properties at a
substantial discount to their market value from distressed vendors, either
individuals or companies, which have entered administration and own valuable
freehold property, with a view either to realising their inherent profit or
building a small portfolio of such properties for future sale. The Company is
already in discussions to acquire a minority stake in a company that specialises
in this sector and is also looking at some specific opportunities.

As a result of these new developments, the board is seeking to strengthen its
senior management team and is looking to make a number of appropriate executive
director appointments.

The board is pleased with the progress it is making and believes that by
focusing on the turnaround of ailing SMEs it should be in a position to benefit
from any downturn in the economy.


For more information, please contact:

Renwick Haddow         Capital Ideas plc                020 7623 3345
Daniel Bate            WH Ireland Limited               0161 832 2174
Peter Manfield         SVS Securities plc               020 7638 5600




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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