TIDMWHI
RNS Number : 4985X
W.H. Ireland Group PLC
17 August 2009
?
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| WHI |
| WH IRELAND GROUP PLC |
| ("WH Ireland" or "the Group" or "the Company") |
| Half-Yearly Report for the six months ended 31 May 2009 |
| Quoted on AIM, WH Ireland is an established financial services group with two distinct revenue streams: wealth management and securities |
| Key Points* |
| Group Turnover increased by 6% to GBP17.1m (2008: GBP16.2m)* |
| Operating loss (before goodwill impairment) of GBP0.049m (2008: profit GBP0.524m)* |
| Loss before tax of GBP0.523m (2008: GBP0.736m)* |
| Basic earnings per share of (3.23)p (2008: (4.17)p)* |
| Equity shareholders' funds before minority interests decreased to GBP15.7m (2008: GBP19.3m), representing approximately 74p per share (2008: 92p)* |
| No interim dividend has been declared (2008: 1.0p) * |
| Total funds under management and control of GBP1.6bn, up 17.6% from year end |
| Commenting on the results, Chairman, Rupert Lowe, said, |
| "With a reduced cost base any improvement in volumes will have a beneficial impact on our profitability. Whilst the recent market rally is a positive development we remain cautious on the impact on stock broking revenues and corporate finance activity in the near term. We are actively pursuing initiatives to enhance our Private Wealth Management offering and look forward to making significant progress on this in the second half of the financial year." |
| Enquiries: |
| Richard Ford, Chief Executive Tel: |
| WH Ireland 0161 |
| 832 |
| 6644 |
| Zoë Biddick Tel: |
| Biddicks 020 |
| 7448 |
| 1000 |
| Tom Durie Tel: |
| Oriel Securities Limited 020 |
| 7710 |
| 7600 |
| |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| for the half year ended 31 May 2009 |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Unaudited |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Half year Restated* Year ended |
| ended half year 30 November 2008 |
| 31 May 2009 ended |
| 31 May |
| 2008 |
| Note GBP'000 GBP'000 GBP'000 |
| Revenue 2 17,123 16,155 32,592 |
| Administrative expenses (17,172) (15,631) (33,380) |
| Operating (loss)/profit (49) 524 (788) |
| Share of profit/(loss) of 40 (164) 16 |
| associates |
| Impairment losses on 3 (385) (350) (470) |
| goodwill |
| Profit on sale of operation 4 168 - - |
| Profit on disposal of 74 22 693 |
| available-for-sale |
| investments |
| Fair value gains/(losses) 98 (630) (3,168) |
| on investments |
| Income from investments 1 4 46 |
| Impairment losses on (253) (25) (406) |
| available-for-sale |
| investments |
| Finance income 97 215 436 |
| Finance expense (314) (332) (378) |
| Loss before taxation (523) (736) (4,019) |
| Taxation 5 (198) (20) 1,301 |
| Loss after taxation (721) (756) (2,718) |
| Attributable to: |
| Minority interest (38) (25) (117) |
| Equity shareholders of the (683) (731) (2,601) |
| Parent Company |
| (721) (756) (2,718) |
| Earnings per share |
| Basic 12 (3.23)p (4.17)p (13.45)p |
| Diluted 12 (3.23)p (4.17)p (13.45)p |
| |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| for the half year ended 31 May 2009 |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Unaudited |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Half year Restated* Year ended |
| ended half year 30 November 2008 |
| 31 May 2009 ended |
| 31 May |
| 2008 |
| GBP'000 GBP'000 GBP'000 |
| Foreign exchange translation 357 433 (133) |
| differences |
| Change in fair value of assets (1) (286) - |
| classified as available-for-sale |
| net of tax |
| Net change in fair value of - (16) (443) |
| available-for-sale financial |
| assets transferred to income |
| statement net of tax |
| Net income / (expense) 356 131 (576) |
| recognised directly in equity |
| Loss for the period / year (721) (756) (2,718) |
| Total recognised expense for the (365) (625) (3,294) |
| period/year |
| Attributable to: |
| Minority interest 4 28 (110) |
| Equity shareholders of the (369) (653) (3,184) |
| Parent Company |
| (365) (625) (3,294) |
| |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| * See Note 6 |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Condensed consolidated balance sheet |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| as at 31 May 2009 |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Unaudited |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 31 May 2009 Restated* 30 November 2008 |
| 31 May 2008 |
| Note GBP'000 GBP'000 GBP'000 |
| ASSETS |
| Non-current assets |
| Property, plant and 6 4,631 7,518 7,323 |
| equipment |
| Investment property 6 2,521 - - |
| Goodwill 3,074 3,581 3,430 |
| Intangible assets 529 719 587 |
| Associates 920 847 880 |
| Investments 7 1,598 4,534 1,847 |
| Loan note receivable 310 315 310 |
| Deferred tax asset 815 654 762 |
| 14,398 18,168 15,139 |
| Current assets |
| Trade and other 78,312 84,504 261,284 |
| receivables |
| Other investments 149 525 98 |
| Cash and cash equivalents 8 7,848 11,318 5,759 |
| 86,309 96,347 267,141 |
| Total assets 100,707 114,515 282,280 |
| LIABILITIES |
| Current liabilities |
| Trade and other payables (76,584) (87,506) (246,881) |
| Bank overdraft 8 (2,003) - (11,600) |
| Borrowings (500) (916) (872) |
| Corporation tax provision (33) (3) (366) |
| liabilities |
| Provisions (102) - (199) |
| (79,222) (88,425) (259,918) |
| Non-current liabilities |
| Borrowings (2,552) (2,878) (2,747) |
| Deferred tax liability (250) (827) (250) |
| Accruals and deferred (2,507) (2,255) (2,215) |
| income |
| Liability for put and (212) (275) (183) |
| call options |
| Provisions - (190) (160) |
| (5,521) (6,425) (5,555) |
| Total liabilities (84,743) (94,850) (265,473) |
| Total net assets 15,964 19,665 16,807 |
| EQUITY |
| Share capital 9/10 1,064 1,050 1,054 |
| Share premium 10 5,724 5,573 5,633 |
| Available-for-sale 10 169 311 170 |
| reserve |
| Revaluation reserve 10 667 667 667 |
| Foreign exchange reserve 10 345 544 31 |
| Other reserves 10 1,472 1,472 1,472 |
| Retained earnings 10 6,585 9,975 7,847 |
| Treasury shares 10 (287) (287) (287) |
| Total shareholders' 15,739 19,305 16,587 |
| equity |
| Minority interest 10 225 360 220 |
| Total equity 10 15,964 19,665 16,807 |
| |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| * See Note 6 |
| Condensed consolidated cash flow statement |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| for the half year ended 31 May 2009 |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Unaudited |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Half year Restated* Year ended |
| ended 31 May Half year 30 November 2008 |
| 2009 ended 31 |
| May 2008 |
| GBP'000 GBP'000 GBP'000 |
| Operating activities |
| Loss for the period/year (721) (756) (2,718) |
| Adjustments for: |
| Depreciation, amortisation 707 675 1,099 |
| and impairment |
| Financial income (97) (215) (436) |
| Financial expense 314 332 378 |
| Profit on sale of operation (168) - - |
| Taxation 198 20 (1,301) |
| Share of profit/(loss) of (40) 164 (16) |
| associates |
| Changes in investments 80 633 2,881 |
| Loss/(gain) on sale of 8 (8) (21) |
| property, plant and equipment |
| Non-cash adjustment for share 29 61 65 |
| option charge |
| Decrease/(increase) in trade 183,533 15,256 (161,765) |
| and other receivables |
| (Decrease)/increase in trade (170,566) (13,425) 145,858 |
| and other payables |
| Increase in current asset (51) (525) (98) |
| investments |
| Tax paid (590) (502) (319) |
| Net cash generated from/(used 12,636 1,710 (16,393) |
| in) operating activities |
| Investing activities |
| Proceeds from sale of - 220 210 |
| property, plant and equipment |
| Proceeds from sale of 221 1,361 1,993 |
| investments |
| Interest received 97 215 436 |
| Acquisition of associates - (350) (40) |
| Disposal of operation 168 - - |
| Acquisition of property, (59) (94) (227) |
| plant and equipment |
| Acquisition of investments (59) (1,236) (480) |
| Income from investments 1 4 46 |
| Loan note receivable - - (310) |
| Net cash generated from 369 120 1,628 |
| investing activities |
| Financing activities |
| Proceeds from issue of share 101 3,053 3,059 |
| capital |
| Dividends paid - (444) (573) |
| Cancellation of amounts due (608) - - |
| from shareholders |
| Decrease of borrowings (567) (55) (230) |
| Interest paid (314) (178) (347) |
| Net cash (used in)/generated (1,388) 2,376 1,909 |
| from financing activities |
| Net increase/(decrease) in 11,617 4,206 (12,856) |
| cash and cash equivalents |
| Cash and cash equivalents at (5,841) 7,018 7,018 |
| beginning of period |
| Effect of foreign exchange 69 94 (3) |
| movements |
| Cash and cash equivalents at 5,845 11,318 (5,841) |
| end of period |
| Clients' settlement cash 3,396 8,220 (8,055) |
| Firms' cash 2,449 3,098 2,214 |
| Cash and cash equivalents at 5,845 11,318 (5,841) |
| end of period |
| |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
Notes to the consolidated interim financial statements
for the half year ended 31 May 2009
1. Basis of preparation
Statement of compliance
These consolidated interim financial statements have been prepared in accordance
with the disclosure requirements of AIM Rules and the recognition and
measurements of International Financial Reporting Standards (IFRS), as adopted
by the European Union (EU) excluding IAS 34 'Interim Financial Reporting'.
The consolidated interim financial statements are condensed and do not include
all of the information required for full annual financial statements.
The accounting policies adopted by the Group in the preparation of its 2009
interim financial statements and those which the Group currently expects to
adopt in its annual financial statements for the year ending 30 November 2009
are consistent with those disclosed in the annual financial statements for the
year ended 30 November 2008.
The information in this interim report is unaudited and does not constitute
statutory accounts within the meaning of Section 435 of the Companies Act 2006.
The interim report was approved by the Board of Directors on 14 August 2009. The
statutory accounts for the year ended 30 November 2008 have been delivered to
the Registrar of Companies in England and Wales in accordance with section 242
of the Companies Act 1985. The auditor has reported on those accounts. Its
report was unqualified and did not contain a statement under section 237(2) or
(3) of the Companies Act 1985.
Going concern
The interim financial information of the Group has been prepared on the going
concern basis. In making the going concern assessment, the Directors have
prepared detailed financial forecasts for the period to November 2010 which
consider the funding and capital position of the Group. Those forecasts make
assumptions in respect of future trading conditions, notably the economic
environment and its impact on the Group's turnover and costs. In addition to
this the nature of the Group's business is such that there can be considerable
variation in the timing of cash inflows. The forecasts take into account
foreseeable downside risks, based on the information that is available to the
directors at the time of approval of these financial statements.
The Group's funding is provided by bank loans and overdrafts. Bank loans are
repayable over a 10 to 25 year period and are secured on the 11 St James's
Square property in Manchester. The overdrafts are repayable on demand and the
facility is renewable annually. It was most recently renewed for twelve months
with effect from 31 May 2009.
Certain activities of the Group are regulated by the Financial Services
Authority (FSA) which is the single statutory regulator for financial services
business in the UK and has responsibility for policy, monitoring and discipline
for the financial services industry as a whole. The FSA requires the Group's
regulatory capital resources to be adequate, that is sufficient in terms of
quantity, quality and availability, in relation to its regulated activities. The
directors monitor the Group's regulatory capital resources on a daily basis and,
at the 31 July 2009, the Group had regulatory capital headroom of GBP1.4m. Under
the current financial forecasts, the directors consider that the Group has
sufficient regulatory capital headroom for the foreseeable future. However, as
with many companies in the current economic environment, the directors
acknowledge that there is uncertainty arising from the risk of further
deterioration in the market environment and associated declines in trading
volumes and corporate finance activity. They are prepared to implement
appropriate management actions to address any potential deficit as required;
these actions may include cost reductions, regulatory capital optimisation
programmes or further capital raising. On the basis of sensitised forecasts, the
Group may significantly reduce or exhaust any surplus regulatory capital within
the foreseeable future. Discussions have been held with the FSA, which has been
made aware of the risks for the business. In that context the directors are
confident that the Group will continue to satisfy the FSA as to its compliance
with all relevant regulatory requirements for the foreseeable future, and thus
the directors have no expectation that the FSA will take adverse regulatory
action.
After consideration of all the above factors, the directors believe that it
remains appropriate to prepare the financial statements on a going concern basis
and the financial statements do not include the adjustments that would result if
the Group were unable to continue as a going concern.
2. Segment reporting
For management purposes, the group is currently organised into the two business
streams, presented below, which are the primary basis of segmental reporting.
Segment results include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis. The following tables present
revenue and profit and certain assets and liability information regarding the
group's business segments.
Half year ended 31 May 2009
+--------------------+------------+------------+-------------+----------+
| Group | Private | Securities | | Group |
| | Wealth | | | |
| | Management | | | |
+--------------------+------------+------------+-------------+----------+
| | GBP'000 | GBP'000 | | GBP'000 |
+--------------------+------------+------------+-------------+----------+
| Revenue | | | | |
+--------------------+------------+------------+-------------+----------+
| External | 15,472 | 1,651 | | 17,123 |
+--------------------+------------+------------+-------------+----------+
| Inter-segment | - | - | | - |
+--------------------+------------+------------+-------------+----------+
| Total revenue | 15,472 | 1,651 | | 17,123 |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| Segment result | 4,209 | (692) | | 3,517 |
+--------------------+------------+------------+-------------+----------+
| Share of profit of | - | - | | 40 |
| associates | | | | |
+--------------------+------------+------------+-------------+----------+
| Impairment losses | - | - | | (385) |
| on goodwill | | | | |
+--------------------+------------+------------+-------------+----------+
| Profit on sale of | - | - | | 168 |
| operation | | | | |
+--------------------+------------+------------+-------------+----------+
| Profit on disposal | - | - | | 74 |
| of | | | | |
| available-for-sale | | | | |
| investments | | | | |
+--------------------+------------+------------+-------------+----------+
| Fair value gains | - | - | | 98 |
| on investments | | | | |
+--------------------+------------+------------+-------------+----------+
| Income from | - | - | | 1 |
| investments | | | | |
+--------------------+------------+------------+-------------+----------+
| Impairment losses | - | - | | (253) |
| on | | | | |
| available-for-sale | | | | |
| investments | | | | |
+--------------------+------------+------------+-------------+----------+
| Finance income | - | - | | 97 |
+--------------------+------------+------------+-------------+----------+
| Finance expense | - | - | | (314) |
+--------------------+------------+------------+-------------+----------+
| Unallocated net | - | - | | (3,566) |
| corporate expenses | | | | |
+--------------------+------------+------------+-------------+----------+
| Loss before | - | - | | (523) |
| taxation | | | | |
+--------------------+------------+------------+-------------+----------+
| Taxation | - | - | | (198) |
+--------------------+------------+------------+-------------+----------+
| Loss for the | - | - | | (721) |
| period | | | | |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| Segment assets | 84,252 | 1,990 | | 86,242 |
+--------------------+------------+------------+-------------+----------+
| Unallocated | - | - | | 14,465 |
| corporate assets | | | | |
+--------------------+------------+------------+-------------+----------+
| Total Group assets | - | - | | 100,707 |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| Segment | 53,654 | 353 | | 54,007 |
| liabilities | | | | |
+--------------------+------------+------------+-------------+----------+
| Unallocated | - | - | | 30,736 |
| corporate | | | | |
| liabilities | | | | |
+--------------------+------------+------------+-------------+----------+
| Total Group | - | - | | 84,743 |
| liabilities | | | | |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| Other segment | Private | Securities | Unallocated | Group |
| items | Wealth | | corporate | |
| | Management | | items | |
+--------------------+------------+------------+-------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------+------------+------------+-------------+----------+
| Capital | - | - | 59 | 59 |
| expenditure | | | | |
+--------------------+------------+------------+-------------+----------+
| Depreciation and | - | - | 321 | 321 |
| amortisation | | | | |
+--------------------+------------+------------+-------------+----------+
Half year ended 31 May 2008
+--------------------+------------+------------+-------------+----------+
| Group | Private | Securities | | Group |
| | Wealth | | | |
| | Management | | | |
+--------------------+------------+------------+-------------+----------+
| | GBP'000 | GBP'000 | | GBP'000 |
+--------------------+------------+------------+-------------+----------+
| Revenue | | | | |
+--------------------+------------+------------+-------------+----------+
| External | 12,915 | 3,240 | | 16,155 |
+--------------------+------------+------------+-------------+----------+
| Inter-segment | - | - | | - |
+--------------------+------------+------------+-------------+----------+
| Total revenue | 12,915 | 3,240 | | 16,155 |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| Segment result | 3,024 | 658 | | 3,682 |
+--------------------+------------+------------+-------------+----------+
| Share of loss of | - | - | | (164) |
| associates | | | | |
+--------------------+------------+------------+-------------+----------+
| Impairment losses | - | - | | (350 |
| on goodwill | | | | |
+--------------------+------------+------------+-------------+----------+
| Profit on disposal | - | - | | 22 |
| of | | | | |
| available-for-sale | | | | |
| investments | | | | |
+--------------------+------------+------------+-------------+----------+
| Fair value losses | - | - | | (630) |
| on investments | | | | |
+--------------------+------------+------------+-------------+----------+
| Income from | - | - | | 4 |
| investments | | | | |
+--------------------+------------+------------+-------------+----------+
| Impairment losses | - | - | | (25) |
| on financial | | | | |
| assets | | | | |
+--------------------+------------+------------+-------------+----------+
| Finance income | - | - | | 215 |
+--------------------+------------+------------+-------------+----------+
| Finance expense | - | - | | (332) |
+--------------------+------------+------------+-------------+----------+
| Unallocated net | - | - | | (3,158) |
| corporate expenses | | | | |
+--------------------+------------+------------+-------------+----------+
| Loss before | - | - | | (736) |
| taxation | | | | |
+--------------------+------------+------------+-------------+----------+
| Taxation | - | - | | (20) |
+--------------------+------------+------------+-------------+----------+
| Loss for the | - | - | | (756) |
| period | | | | |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| Segment assets | 95,908 | 3,668 | | 99,576 |
+--------------------+------------+------------+-------------+----------+
| Unallocated | - | - | | 14,939 |
| corporate assets | | | | |
+--------------------+------------+------------+-------------+----------+
| Total Group assets | - | - | | 114,515 |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| Segment | 85,882 | 846 | | 86,727 |
| liabilities | | | | |
+--------------------+------------+------------+-------------+----------+
| Unallocated | - | - | | 8,123 |
| corporate | | | | |
| liabilities | | | | |
+--------------------+------------+------------+-------------+----------+
| Total Group | - | - | | 94,850 |
| liabilities | | | | |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| Other segment | Private | Securities | Unallocated | Group |
| items | Wealth | | corporate | |
| | Management | | items | |
+--------------------+------------+------------+-------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------+------------+------------+-------------+----------+
| Capital | - | - | 94 | 94 |
| expenditure | | | | |
+--------------------+------------+------------+-------------+----------+
| Depreciation and | - | - | 325 | 325 |
| amortisation | | | | |
+--------------------+------------+------------+-------------+----------+
Year ended 30 November 2008
+--------------------+------------+------------+-------------+----------+
| Group | Private | Securities | | Group |
| | Wealth | | | |
| | Management | | | |
+--------------------+------------+------------+-------------+----------+
| | GBP'000 | GBP'000 | | GBP'000 |
+--------------------+------------+------------+-------------+----------+
| Revenue | | | | |
+--------------------+------------+------------+-------------+----------+
| External | 27,247 | 5,345 | | 32,592 |
+--------------------+------------+------------+-------------+----------+
| Inter-segment | - | - | | - |
+--------------------+------------+------------+-------------+----------+
| Total revenue | 27,247 | 5,345 | | 32,592 |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| Segment result | 3,375 | 992 | | 4,367 |
+--------------------+------------+------------+-------------+----------+
| Share of profit of | - | - | | 16 |
| associates | | | | |
+--------------------+------------+------------+-------------+----------+
| Impairment losses | - | - | | (470) |
| on goodwill | | | | |
+--------------------+------------+------------+-------------+----------+
| Profit on disposal | - | - | | 693 |
| of | | | | |
| available-for-sale | | | | |
| investments | | | | |
+--------------------+------------+------------+-------------+----------+
| Fair value | - | - | | (3,168) |
| gains/(losses) on | | | | |
| investments | | | | |
+--------------------+------------+------------+-------------+----------+
| Income from | - | - | | 46 |
| investments | | | | |
+--------------------+------------+------------+-------------+----------+
| Impairment losses | - | - | | (406) |
| on | | | | |
| available-for-sale | | | | |
| investments | | | | |
+--------------------+------------+------------+-------------+----------+
| Finance income | - | - | | 436 |
+--------------------+------------+------------+-------------+----------+
| Finance expense | - | - | | (378) |
+--------------------+------------+------------+-------------+----------+
| Unallocated net | - | - | | (5,155) |
| corporate expenses | | | | |
+--------------------+------------+------------+-------------+----------+
| Loss before | - | - | | (4,019) |
| taxation | | | | |
+--------------------+------------+------------+-------------+----------+
| Taxation | - | - | | 1,301 |
+--------------------+------------+------------+-------------+----------+
| Loss for the | - | - | | (2,718) |
| period | | | | |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| Segment assets | 265,097 | 1,698 | | 266,795 |
+--------------------+------------+------------+-------------+----------+
| Unallocated | - | - | | 15,485 |
| corporate assets | | | | |
+--------------------+------------+------------+-------------+----------+
| Total Group assets | - | - | | 282,280 |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| Segment | 252,051 | 310 | | 252,361 |
| liabilities | | | | |
+--------------------+------------+------------+-------------+----------+
| Unallocated | - | - | | 13,112 |
| corporate | | | | |
| liabilities | | | | |
+--------------------+------------+------------+-------------+----------+
| Total Group | - | - | | 265,473 |
| liabilities | | | | |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| | | | | |
+--------------------+------------+------------+-------------+----------+
| Other segment | Private | Securities | Unallocated | Group |
| items | Wealth | | corporate | |
| | Management | | items | |
+--------------------+------------+------------+-------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------+------------+------------+-------------+----------+
| Capital | - | - | 227 | 227 |
| expenditure | | | | |
+--------------------+------------+------------+-------------+----------+
| Depreciation and | - | - | 629 | 629 |
| amortisation | | | | |
+--------------------+------------+------------+-------------+----------+
a.Geographical segments
The Group's operations are located in the United Kingdom and Australia. The
following tables present revenue and certain assets and liability information by
geographical area in which the assets are located:
+----------------------------------------------+-----------+-+----------+-----------+-+
| Group revenue | Half year | Half year | Year ended |
| | ended | ended | 30 November |
| | 31 May | 31 May | 2008 |
| | 2009 | 2008 | |
+----------------------------------------------+-----------+------------+-------------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------------+-----------+------------+-------------+
| United Kingdom | 15,073 | 12,658 | 26,816 |
+----------------------------------------------+-----------+------------+-------------+
| Australia | 2,050 | 3,497 | 5,776 |
+----------------------------------------------+-----------+------------+-------------+
| | 17,123 | 16,155 | 32,592 |
+----------------------------------------------+-----------+------------+-------------+
| | | | |
+----------------------------------------------+-----------+------------+-------------+
| Group segment assets | Half year | Half | Year |
| | ended | year | ended |
| | 31 May 2009 | ended | 30 |
| | | 31 May | November |
| | | 2008 | 2008 |
+----------------------------------------------+-------------+----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------------+-------------+----------+-----------+
| United Kingdom | 13,497 | 16,084 | 14,396 |
+----------------------------------------------+-------------+----------+-----------+
| Australia | 2,467 | 3,581 | 2,411 |
+----------------------------------------------+-------------+----------+-----------+
| | 15,964 | 19,665 | 16,807 |
+----------------------------------------------+-------------+----------+-----------+
| | | | |
+----------------------------------------------+-------------+----------+-----------+
| Group capital expenditure | Half year | Half | Year |
| | ended | year | ended |
| | 31 May 2009 | ended | 30 |
| | | 31 May | November |
| | | 2008 | 2008 |
+----------------------------------------------+-------------+----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------------+-------------+----------+-----------+
| United Kingdom | 40 | 68 | 201 |
+----------------------------------------------+-------------+----------+-----------+
| Australia | 19 | 26 | 26 |
+----------------------------------------------+-------------+----------+-----------+
| | 59 | 94 | 227 |
+----------------------------------------------+-------------+----------+-----------+
| | | | |
+----------------------------------------------+-----------+-+----------+-----------+-+
3. Impairment losses on goodwill
As a result of current trading conditions, the Directors have undertaken an
impairment review of the carrying value of the goodwill and an impairment
provision has been made. The Directors have reduced the carrying value which
arose on the acquisition of the trade and assets of SRS Business and
Professional Limited by GBP70,000, the carrying value of the Group's investment
in WHI Australia Pty Limited by GBP279,000 and that of Stockholm Investments
Limited by GBP36,419. These impairment losses have arisen as a result of a
reduction in the expected future cash inflow of the cash-generating units (CGUs)
concerned.
4. Profit on sale of operation
In February 2009 the Group sold the trade and assets of its Lancaster branch,
realising a profit on sale of GBP168,000. The Group has retained the freehold
property in Lancaster.
5. Taxation
The effective tax rate in the period under review has been impacted by the tax
effect on the goodwill impairment charge of GBP385,000 along with adjustments to
tax balances relating to prior periods.
6. Property, plant and equipment
As noted in the annual report for the year ended 30 November 2008, the Group's
interim results announcement for the period ended 31 May 2008 (published on 18
August 2008) included an initial analysis of the impact of adopting IFRS on
previously reported results. At that stage, the Directors indicated their
intention to continue to hold freehold land and buildings at market value (as
they were treated under UK GAAP) and not take advantage of IFRS 1.16 which
allows an entity to elect to measure such assets at cost under IFRS, with cost
being determined as fair value at the date of transition. The Directors reviewed
this approach and considered it would be more appropriate to take advantage of
this election and hold all land and building at cost and depreciate over their
useful economic life. Accordingly, the comparative amounts for the period ended
31 May 2008 have been prepared on this basis. The impact of this change is shown
below:
+-----------------------------------+--------------+--------------+--------------+
| | IFRS 1 | Revised IFRS | Movement |
| | Restatement | 1 | |
| | (published | Restatement | |
| | on 18 August | | |
| | 2008) | | |
+-----------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------+--------------+--------------+--------------+
| Net assets at 31 May 2008 | 21,110 | 19,655 | (1,455) |
+-----------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------+--------------+--------------+--------------+
| Losses before tax for the period | (685) | (736) | (51) |
| ending 31 May 2008 | | | |
+-----------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------+--------------+--------------+--------------+
| Losses after tax for the period | (705) | (756) | (51) |
| ending 31 May 2008 | | | |
+-----------------------------------+--------------+--------------+--------------+
Property, plant and equipment includes freehold property with a net book value,
at 31 May 2009, of GBP4,086,192 (31 May 2008: GBP6,508,909; 30 November 2008:
GBP6,401,773). In accordance with IAS 40 the net book value of the freehold
property has been classified according to its use and GBP2,521,261 is recorded
as investment property.
No significant expenditure relating to property, plant and equipment has been
incurred in the half year ended 31 May 2009.
+---------------------------------------------------------------------------------------+
| 7. Investments |
+---------------------------------------------------------------------------------------+
| |
+---------------------------------------------------------------------------------------+
| Half year ended Half year Year ended |
| 31 May 2009 ended 30 November 2008 |
| 31 May 2008 |
| GBP'000 GBP'000 GBP'000 |
| Available-for-sale |
| investments |
| Fair quoted 243 473 380 |
| value: |
| unquoted 501 967 809 |
| 744 1,440 1,189 |
| |
+---------------------------------------------------------------------------------------+
+----------+---------------------+---------------+----------------+------------------++
| Investments at fair value | | | |
| through the income statement | | | |
| | | | |
+--------------------------------+---------------+----------------+------------------+
| | | | |
+--------------------------------+---------------+----------------+------------------+
| Fair | quoted | 449 | 1,558 | 361 |
| value: | | | | |
+----------+---------------------+---------------+----------------+------------------+
| | warrants | 405 | 1,536 | 297 |
+----------+---------------------+---------------+----------------+------------------+
| | | | |
+--------------------------------+---------------+----------------+------------------+
| | 854 | 3,094 | 658 |
+--------------------------------+---------------+----------------+------------------+
| | | | |
+--------------------------------+---------------+----------------+------------------+
| Total investments | 1,598 | 4,534 | 1,847 |
+--------------------------------+---------------+----------------+------------------+
| | | | |
+--------------------------------+---------------+----------------+------------------+
| |
+-------------------------------------------------------------------------------------+
| In the case of quoted investments, fair value represents the quoted bid |
| price at the balance sheet date. The fair value of unquoted investments is |
| estimated by reference to recent arm's length transactions. In the case of |
| warrants, fair value is estimated using established valuation models. |
| |
+----------+---------------------+---------------+----------------+------------------++
8. Cash, cash equivalents and bank overdrafts
Cash and cash equivalents comprise cash and bank balances and bank overdrafts
repayable on demand.
Cash and cash equivalents represent the Group's own money and money held for
settlement of outstanding transactions and excludes free money held on trust on
behalf of clients. Free money at 31 May 2009 was GBP98.1m (31 May 2008:
GBP93.7m; 30 November 2008: GBP81.1m).
Cash and cash equivalents appearing in the Consolidated Balance Sheet include a
restricted cash balance of GBP3.4m (31 May 2008: GBP8.2m; 30 November 2008:
GBP0.7m) which relates to client settlement cash and is not available for use in
day-to-day operations.
9. Share capital
The total number of authorised ordinary shares is 34.5 million shares of 5p each
(30 November 2008: 34.5 million). The total number of issued ordinary shares is
21.3 million shares of 5p each (30 November 2008: 21.1 million).
202,608 new ordinary shares of 5p each were issued on the 21 April 2009 at a
price of 50p per share in satisfaction of staff share options.
10. Reconciliation of changes in shareholders' equity
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| | | | | | | | | | Total | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| | | | Available- | | Foreign | | | | share- | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| | Share | Share | for-sale | Revaluation | exchange | Other | Retained | Treasury | holders' | Minority | Total |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| | capital | premium | reserve | reserve | reserve | reserves | earnings | shares | equity | interest | equity |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Balance at | 860 | 2,614 | 613 | 667 | 164 | 1,472 | 10,553 | (287) | 16,656 | 361 | 17,017 |
| 1 December | | | | | | | | | | | |
| 2007 | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Loss for | - | - | - | - | - | - | (2,718) | - | (2,718) | - | (2,718) |
| the year | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Prior year | - | - | - | - | - | - | (516) | - | (516) | - | (516) |
| dividends | | | | | | | | | | | |
| paid | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Current | - | - | - | - | - | - | (210) | - | (210) | - | (210) |
| year | | | | | | | | | | | |
| dividends | | | | | | | | | | | |
| paid | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Amounts | - | - | - | - | - | - | 608 | - | 608 | - | 608 |
| owed by | | | | | | | | | | | |
| shareholders | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Shares | 186 | 2,646 | - | - | - | - | 65 | - | 2,897 | - | 2,897 |
| issued | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Shares | 8 | - | - | - | - | - | - | - | 8 | - | 8 |
| issued on | | | | | | | | | | | |
| scrip | | | | | | | | | | | |
| dividends | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Employee | - | - | - | - | - | - | 65 | - | 65 | - | 65 |
| share | | | | | | | | | | | |
| option | | | | | | | | | | | |
| scheme | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Share | - | 227 | - | - | - | - | - | - | 227 | - | 227 |
| premium on | | | | | | | | | | | |
| exercise | | | | | | | | | | | |
| of options | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Share | - | 146 | - | - | - | - | - | - | 146 | - | 146 |
| premium on | | | | | | | | | | | |
| scrip | | | | | | | | | | | |
| dividends | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Deferred | - | - | 172 | - | - | - | - | - | 172 | - | 172 |
| taxation | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Loss | - | - | (615) | - | - | - | - | - | (615) | - | (615) |
| arising on | | | | | | | | | | | |
| available-for-sale | | | | | | | | | | | |
| investments | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Exchange | - | - | - | - | (133) | - | - | - | (133) | 7 | (126) |
| rate | | | | | | | | | | | |
| adjustments | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Share of | - | - | - | - | - | - | - | - | - | (117) | (117) |
| retained | | | | | | | | | | | |
| loss after | | | | | | | | | | | |
| tax | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Dividends | - | - | - | - | - | - | - | - | - | (31) | (31) |
| paid to | | | | | | | | | | | |
| minority | | | | | | | | | | | |
| interest | | | | | | | | | | | |
| holders | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Balance at | 1,054 | 5,633 | 170 | 667 | 31 | 1,472 | 7,847 | (287) | 16,587 | 220 | 16,807 |
| 30 | | | | | | | | | | | |
| November | | | | | | | | | | | |
| 2008 | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Loss for | - | - | - | - | - | - | (683) | - | (683) | - | (683) |
| the period | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Amounts | - | - | - | - | - | - | (608) | - | (608) | - | (608) |
| owed by | | | | | | | | | | | |
| shareholders* | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Shares | 10 | 91 | - | - | - | - | - | - | 101 | - | 101 |
| issued | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Employee | - | - | - | - | - | - | 29 | - | 29 | - | 29 |
| share | | | | | | | | | | | |
| option | | | | | | | | | | | |
| scheme | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Deferred | - | - | 15 | - | - | - | - | - | 15 | - | 15 |
| taxation | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Investment | - | - | (16) | - | - | - | - | - | (16) | - | (16) |
| revaluation | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Exchange | - | - | - | - | 314 | - | - | - | 314 | 43 | 357 |
| rate | | | | | | | | | | | |
| adjustments | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Share of | - | - | - | - | - | - | - | - | - | (38) | (38) |
| retained | | | | | | | | | | | |
| loss after | | | | | | | | | | | |
| tax | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
| Balance at | 1,064 | 5,724 | 169 | 667 | 345 | 1,472 | 6,585 | (287) | 15,739 | 225 | 15,964 |
| 31 May | | | | | | | | | | | |
| 2009 | | | | | | | | | | | |
+--------------------+---------+---------+------------+-------------+----------+----------+----------+----------+----------+----------+---------+
*During 2008 the dividends paid were higher in value than the retained profits
disclosed in the Company Balance Sheet as at 30 November 2007. The Company
inadvertently overlooked the statutory requirements to file interim accounts
demonstrating sufficient distributable profits with the Registrar of Companies
prior to paying the dividend. The Resolution in the Notice of the Annual General
Meeting (AGM), held on 29 April 2009, sought to rectify this technical breach by
ratifying the appropriation of distributable profits to the payment of that
dividend and waiving any claims which the Company may have against shareholders
or the Directors arising out of this breach.
The debtor held at year end was in recognition for amounts owed to the Company
in respect of this dividend in excess of distributable reserves. Following the
ratification at the AGM the debtor was reversed (GBP608,000).
The nature and purpose of each reserve is summarised below:
Share premium
The share premium is the amount raised on the issue of shares that is in excess
of the nominal value of those shares and is recorded less any direct costs of
issue.
Available-for-sale reserve
The available-for-sale reserve reflects gains or losses arising from the change
in fair value of available-for-sale financial assets except for impairment
losses which are recognised in the income statement. When an available-for-sale
asset is impaired or derecognised, the cumulative gain or loss previously
recognised in the available-for-sale reserve is transferred to the income
statement.
Revaluation reserve
The revaluation reserve reflects changes in the fair value of property, plant
and equipment until such time as the assets are disposed of. A revaluation
surplus is recognised in the revaluation reserve unless it reverses a previous
deficit when it is credited to the income statement up to the amount of the
previous deficit. A revaluation deficit is charged to the income statement
unless it reverses a previous surplus when it is charged to the revaluation
reserve up to the amount of the previous surplus.
Exchange reserve
The exchange reserve is used to record exchange differences arising from the
translation of the financial statements of foreign subsidiaries.
Other reserves
Other reserves comprise a merger reserve of GBP491,511, a capital redemption
reserve of GBP228,083 and other reserves of GBP753,704.
Retained earnings
Retained earnings reflect accumulated income, expenses, gains and losses
recognised in the income statement and the statement of recognised income and
expense and is net of dividends paid to shareholders. The cumulative effect of
changes in accounting policy is also reflected as an adjustment in retained
earnings.
Treasury shares
Purchases of the Company's own shares in the market are presented as a deduction
from equity, at the amount paid, including transaction costs. That is, treasury
shares are shown as a separate class of shareholders' equity with a debit
balance.
11. Dividend
No interim dividend has been declared in respect of the half year ended 31 May
2009 (31 May 2008: 1p per share).
12. Earnings per share
Basic earnings per share is calculated with reference to earnings attributable
to ordinary shareholders and the weighted average number of shares in issue
during the period.
Diluted earnings per share is the basic earnings per share, adjusted for the
effect of conversion into fully paid shares of the weighted average number of
all employee share options outstanding during the period.
Reconciliations of the earnings and weighted average number of shares used in
the calculations are set out below:
+-----------------------------------+--------------+-------------+------------------+
| | Half year | Half year | Year ended |
| | ended | ended | 30 November 2008 |
| | 31 May 2009 | 31 May 2008 | |
+-----------------------------------+--------------+-------------+------------------+
| | | | |
+-----------------------------------+--------------+-------------+------------------+
| | | | |
+-----------------------------------+--------------+-------------+------------------+
| Weighted average number of shares | 21,123,309 | 17,538,485 | 19,338,315 |
| in issue during the period | | | |
+-----------------------------------+--------------+-------------+------------------+
| Effect of share options | 93,978 | 1,050,330 | 1,417,498 |
+-----------------------------------+--------------+-------------+------------------+
| | | | |
+-----------------------------------+--------------+-------------+------------------+
| | 21,216,687 | 18,588,815 | 20,755,813 |
+-----------------------------------+--------------+-------------+------------------+
| | | | |
+-----------------------------------+--------------+-------------+------------------+
| | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------+--------------+-------------+------------------+
| | | | |
+-----------------------------------+--------------+-------------+------------------+
| Earnings attributable to ordinary | (683) | (731) | (2,601) |
| shareholders | | | |
+-----------------------------------+--------------+-------------+------------------+
| | | | |
+-----------------------------------+--------------+-------------+------------------+
| | | | |
+-----------------------------------+--------------+-------------+------------------+
| Earnings per share - basic | (3.23)p | (4.17)p | (13.45)p |
+-----------------------------------+--------------+-------------+------------------+
| Earnings per share - diluted | (3.23)p | (4.17)p | (13.45)p |
+-----------------------------------+--------------+-------------+------------------+
| | | | |
+-----------------------------------+--------------+-------------+------------------+
INDEPENDENT REVIEW REPORT TO WH IRELAND GROUP PLC
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the interim report for the half year ended 31 May 2009 which
comprises: the Consolidated Income Statement, Consolidated Statement of
Recognised Income and Expense, Consolidated Balance Sheet, Consolidated Cash
Flow and the related explanatory notes. We have read the other information
contained in the half-yearly report and considered whether it contains any
apparent misstatements or material inconsistencies with the information in the
condensed set of financial statements.
This report is made solely to the company in accordance with the terms of our
engagement. Our review has been undertaken so that we might state to the company
those matters we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company for our review work, for this
report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been approved by, the
Directors. The Directors are responsible for preparing the half-yearly report in
accordance with the AIM Rules.
As disclosed in Note 1, the annual financial statements of the Group are
prepared in accordance with IFRS as adopted by the EU. The condensed set of
financial statements included in this half-yearly report has been prepared in
accordance with the recognition and measurement requirements of IFRS as adopted
by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly report for the
six months ended 31 May 2009 is not prepared, in all material respects, in
accordance with the recognition and measurement requirements of IFRSs as adopted
by the EU and the AIM Rules.
Jonathan Bingham
for and on behalf of KPMG Audit Plc
Chartered Accountants
St James's
Square
Manchester M2 6DS
17 August 2009
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BUGDIDXBGGCS
|