TIDMABB
RNS Number : 3552Y
Abbey Protection PLC
03 September 2009
?
3 September 2009
ABBEY PROTECTION PLC
Interim Results for the six months ended 30 June 2009
Abbey Protection plc ("Abbey Protection" or the "Group"), the specialist
supplier of legal and professional fees insurance products and services to UK
small-to-medium sized enterprises, today announces interim results for the six
months ended 30th June 2009.
Highlights
* Revenue up 13% to GBP16.4m; pre-tax profit up 10% to GBP4.3m
* Underwriting results proving resilient, notwithstanding weak economic backdrop
with claims ratio improving slightly to 67.7% (2008: 68.1%)
* Shareholders' funds exceed GBP20.0m
* Earnings per share up 10% to 3.11p
* Interim dividend increased to 1.6p per share (2008: 1.5p)
* Outlook encouraging, as the Group trades in a non-cyclical sector of the
insurance Market, with a robust demand for its services
Colin Davison, Chief Executive Officer of Abbey Protection, commented:
"I am delighted to report another strong set of results. Despite a challenging
market, we have grown revenue and profits, emphasising the strength and
non-cyclical nature of our business model and reinforcing our market leading
position in the supply of legal and professional fees insurance to UK SMEs."
Financial Highlights
+-------------------------------------------+------------------+--------------------+-----------------+
| | 6 months ended | 6 months ended 30 | Year ended 31 |
| | 30 June 2009 | June 2008 | December 2008 |
| | unaudited | unaudited | audited |
+-------------------------------------------+------------------+--------------------+-----------------+
| | | | |
+-------------------------------------------+------------------+--------------------+-----------------+
| Revenue | GBP16.4m | GBP14.5m | GBP30.3m |
+-------------------------------------------+------------------+--------------------+-----------------+
| Profit before tax | GBP4.3m | GBP3.9m | GBP8.3m |
+-------------------------------------------+------------------+--------------------+-----------------+
| EBITDA* | GBP4.6m | GBP4.1m | GBP8.7m |
+-------------------------------------------+------------------+--------------------+-----------------+
| Profit after tax | GBP3.1m | GBP2.8m | GBP6.0m |
+-------------------------------------------+------------------+--------------------+-----------------+
| Basic earnings per share | 3.11p | 2.84p | 6.09p |
+-------------------------------------------+------------------+--------------------+-----------------+
*Earnings before interest payable, taxation, depreciation and amortisation
charges
Chief Executive's Statement
This is the second interim report and covers the six months ending 30 June 2009
for Abbey Protection Plc.
In a challenging market, I am delighted to report a 10% growth in pre-tax
profits to GBP4.3m (2008: GBP3.9m) and a 13% increase in revenue to GBP16.4m
(2008: GBP14.5m). This is particularly pleasing, given the two thirds reduction
in our investment income to GBP0.3m (2008: GBP0.9m) as a consequence of
dramatically lower UK interest rates in the period.
Our view that we operate in a non-cyclical sector of the insurance market has
been reflected not only in our revenue growth, where we have continued to see a
robust demand for our services, but also by the consistent performance of our
reinsurance subsidiary, Ibex Reinsurance Company Limited ("Ibex"), with an
incurred claims ratio for the period of 67.7% (2008: 68.1%).
Current Trading - divisional performance
Abbey Tax Protection (ATP) has delivered an exceptional performance during the
first half of the year, with net revenue, after deduction of insurance premiums
and intermediary commissions, up 13% to GBP3.0m (2008: GBP2.7m). Expenses
increased by only 4%, enabling the division to increase its pre-tax profit by
22% compared with the first half of 2008. ATP distributes Professional Expenses
Insurance (PEI) and consultancy services through a network of 1,400 firms of
accountants. In a highly competitive environment, ATP has confirmed its market
leader status by exceeding its PEI new business targets and has achieved nearly
100% renewal (measured in financial terms) on its existing business.
Encouragingly, once again, the consultancy arm of ATP has also shown very strong
growth with revenues up 23%.
The legal protection divisions, Abbey Legal Protection/Services ("ALP"/"ALS"),
delivered a strong performance during the first half of the year, with revenues
up 9% to GBP4.3m (2008: GBP4.0m). Particularly pleasing was the level of new
business in the affinity scheme markets, with over 30 new clients, producing
projected annual revenues in excess of GBP0.5m. The recession has led to an
upturn in legal advice call volumes with a 16% increase in employment related
enquires - in support of which we have increased staffing levels, not only to
maintain service levels but also to protect the underwriting account. Demand for
our litigation and consulting services remains robust with a 30% increase to
GBP0.9m (2008: GBP0.7m).
Our reinsurance subsidiary, Ibex, maintained a stable claims ratio (including
provision for claims incurred but not reported 'IBNR') of 67.7% in the period
(2008: 68.1%) emphasising how the Group's integrated approach to risk management
and use of in-house lawyers and consultants has aided cost control. We operate
in a non-cyclical sector of the insurance market and we anticipate that this
stability will continue, even as the economic downturn unfolds.
The Group's first ever acquisition at the end of 2008, Accountax ("ACX") has
delivered revenue of GBP1.1m and, before accounting charges for the amortisation
of intangible assets, the division has made a pre-tax profit contribution to the
Group of GBP0.3m. This was in line with expectations, but even more encouraging
has been the level of cross selling opportunities that have been exploited with
other divisions in the Group.
Revenue from the After the Event ("ATE") division was maintained at GBP0.9m,
with reduced revenue from our run-off contracts being replaced by increased
revenue from our Law Society Scheme, Accident Line, and revenue from our newly
introduced commercial ATE products.
The Group's division supplying Human Resource consultancy services direct to
businesses, Abbey HR ("AHR"), has had a good start to its third year and has
performed in line with budget in a challenging and competitive market. Sales of
the division's products have increased by 34% compared with the first half of
2008 and over the next six months, we expect Abbey HR to continue to increase
client numbers and achieve the critical mass required to produce meaningful
profits in 2010.
Investment income was down two thirds to GBP0.3m (2008: GBP0.9m) as a result of
significantly reduced yields from our highly conservative investment portfolio
of certificates of deposit and bank deposits. This was as expected but has of
course dampened the impressive growth in underlying operating performance. We
intend however to maintain an investment philosophy based on limited
counterparty exposure and an emphasis on quality institutions.
Adjusting for Accountax, like-for-like acquisition and operating expenses have
increased by 3.2% to GBP6.8m. We continue to maintain the appropriate
infrastructure levels as the business expands and develops. Staff costs,
including associated expenses, represent 70.7% (2008: 71.1%) of acquisition and
operating expenses.
Net cash flow generated by operating activities for the period was GBP3.3m
(2008: GBP1.3m) against profit after tax of GBP3.1m (2008: GBP2.8m). Second half
operational cash flow is expected to correlate closely with profit after tax.
The Board has approved an interim dividend of 1.6 pence per share, an increase
of 0.1p over 2008, which will be payable on 7 October 2009 to all shareholders
on the register at 11 September 2009.
Outlook
Despite the continued economic weakness in the real economy and no short term
prospect of a change to the prevailing historically low interest rates, we
remain confident about the Group's prospects for the remainder of the year and
beyond. The past 6-12 months have demonstrated our resilience and ability to
grow in the face of tough economic conditions and in particular, the
non-cyclical nature of our underwriting business.
Although not completely immune to the current recession, we believe that our
emphasis on risk management controls and continued demand for our services will
enable us to not only maintain, but strengthen our market leading position in
the supply of legal and professional fees insurance to UK SMEs.
We will continue to pursue a strong organic growth strategy with continued
investment in our legal and consultancy operations. We are also working in new
areas such as the Commercial ATE and Tax Indemnities markets.
In addition, we continue to investigate suitable and complementary acquisition
targets. In this respect, our healthy, debt free balance sheet provides us with
considerable flexibility should an appropriate target become available.
Finally, the de-regulation of the Legal Services sector is on the horizon and
the Group is actively looking at the opportunities this will provide.
Colin Davison
Chief Executive
September 2009
Enquiries:
+--------------------------------------------+--------------------------+
| Abbey Protection plc | +44 (0)845 217 8293 |
| Minories House | |
| 2-5 Minories | |
| London | |
| EC3N 1BJ | |
| Colin Davison | |
| Chris Ward | |
| | |
+--------------------------------------------+--------------------------+
| PricewaterhouseCoopers LLP | +44 (0)20 7583 5000 |
| Simon Boadle | |
| Jon Raggett | |
| | |
+--------------------------------------------+--------------------------+
| Financial Dynamics | +44 (0)20 7269 7114 |
| Nick Henderson | +44 (0)20 7269 7297 |
| Ed Berry | |
| | |
+--------------------------------------------+--------------------------+
About Abbey Protection PLC
Abbey Protection plc is an integrated specialist insurance and consultancy
group, and the UK's leading supplier of legal and professional fees insurance
products and services to small-to-medium sized enterprises. The Group's
principal products provide protection against costs incurred as a result of
legal actions and HM Revenue & Customs investigations.
Founded in 1992, the Group operates from offices in London, Rugby, Croydon and
Milton Keynes and had 220 employees as at 31st December 2008. Abbey Protection
distributes its products and services through the following divisions: Abbey
Legal Protection, Abbey Legal Services, Abbey Tax Protection, Abbey HR,
Accountax and After The Event Services.
Visit the Abbey Protection website at www.abbeyprotectionplc.com for more
information.
Analyst Presentation
There will be an analyst presentation to discuss the results at 9.30am today at
Financial Dynamics, Holborn Gate, 26 Southampton Buildings, London WC2A 1PB.
Those analysts wishing to attend are asked to contact Kat Bloom at Financial
Dynamics on +44 20 7269 7223 or at kat.bloom@fd.com.
Consolidated income statement
+---+--------------------------------+----------+------------+------------+------------+-------------+
| Unaudited for the 6 months ended 30 June 2009 | | | | |
+-----------------------------------------------+------------+------------+------------+-------------+
| | | Notes | 6 months | 6 months | Year ended |
| | | | ended 30 | ended 30 | 31 December |
| | | | June 2009 | June 2008 | 2008 |
+------------------------------------+----------+------------+------------+------------+-------------+
| | | | | Unaudited | Unaudited | Audited |
+---+--------------------------------+----------+------------+------------+------------+-------------+
| | | | | GBP000 | GBP000 | GBP000 |
+---+--------------------------------+----------+------------+------------+------------+-------------+
| Revenue | | | | | |
+------------------------------------+----------+------------+------------+------------+-------------+
| Intermediary, advisory and other | | 3 | 9,615 | 7,739 | 16,294 |
| income | | | | | |
+------------------------------------+----------+------------+------------+------------+-------------+
| | | | | | | |
+---+--------------------------------+----------+------------+------------+------------+-------------+
| Gross and net premiums written | | | 6,655 | 6,008 | 12,365 |
+------------------------------------+----------+------------+------------+------------+-------------+
| Gross and net change in provision for | | (180) | (153) | (326) |
| unearned premiums | | | | |
+-----------------------------------------------+------------+------------+------------+-------------+
| Gross and net premiums earned | 4 | 6,475 | 5,855 | 12,039 |
+-----------------------------------------------+------------+------------+------------+-------------+
| | | | | | | |
+---+--------------------------------+----------+------------+------------+------------+-------------+
| Net investment return | | 5 | 301 | 912 | 1,918 |
+------------------------------------+----------+------------+------------+------------+-------------+
| | | | | | | |
+---+--------------------------------+----------+------------+------------+------------+-------------+
| Total revenue | | | 16,391 | 14,506 | 30,251 |
+------------------------------------+----------+------------+------------+------------+-------------+
| Expenses | | | | | |
+------------------------------------+----------+------------+------------+------------+-------------+
| Claims and change in insurance | | 6 | (4,383) | (3,988) | (7,695) |
| liabilities | | | | | |
+------------------------------------+----------+------------+------------+------------+-------------+
| Acquisition costs | | | (403) | (351) | (1,111) |
+------------------------------------+----------+------------+------------+------------+-------------+
| Other operating and administrative expenses | 7 | (7,330) | (6,276) | (13,178) |
+-----------------------------------------------+------------+------------+------------+-------------+
| | | | | | | |
+---+--------------------------------+----------+------------+------------+------------+-------------+
| Total operating expenses | | (12,116) | (10,615) | (21,984) |
+-----------------------------------------------+------------+------------+------------+-------------+
| | | | | | | |
+---+--------------------------------+----------+------------+------------+------------+-------------+
| | | | | | | |
+---+--------------------------------+----------+------------+------------+------------+-------------+
| Profit before tax | | | 4,275 | 3,891 | 8,267 |
+------------------------------------+----------+------------+------------+------------+-------------+
| | | | | | | |
+---+--------------------------------+----------+------------+------------+------------+-------------+
| Tax expense | | 8 | (1,189) | (1,076) | (2,227) |
+------------------------------------+----------+------------+------------+------------+-------------+
| | | | | | | |
+---+--------------------------------+----------+------------+------------+------------+-------------+
| Profit attributable to equity | | | 3,086 | 2,815 | 6,040 |
| shareholders of the parent | | | | | |
+------------------------------------+----------+------------+------------+------------+-------------+
| | | | | | | |
+---+--------------------------------+----------+------------+------------+------------+-------------+
| Earnings per share | | | | | |
+------------------------------------+----------+------------+------------+------------+-------------+
| From continuing operations | | | Pence per | Pence per | Pence per |
| | | | share | share | share |
+------------------------------------+----------+------------+------------+------------+-------------+
| | | | | | | |
+---+--------------------------------+----------+------------+------------+------------+-------------+
| Basic | | 10 | 3.11 | 2.84 | 6.09 |
+------------------------------------+----------+------------+------------+------------+-------------+
| | | | | | | |
+---+--------------------------------+----------+------------+------------+------------+-------------+
| Diluted | | 10 | 3.08 | 2.81 | 6.03 |
+------------------------------------+----------+------------+------------+------------+-------------+
| | | | | | | |
+---+--------------------------------+----------+------------+------------+------------+-------------+
| There were no discontinued | | | | | |
| operations. | | | | | |
+---+--------------------------------+----------+------------+------------+------------+-------------+
Consolidated statement of changes in equity
+--------------+--------------+-----------------------------+------------+------------+--------------+
| Unaudited for the 6 months ended 30 June 2009 | | | |
+-----------------------------------------------------------+------------+------------+--------------+
| | | | 6 months | 6 months | Year ended |
| | | | ended 30 | ended 30 | 31 December |
| | | | June 2009 | June 2008 | 2008 |
+--------------+--------------+-----------------------------+------------+------------+--------------+
| | | | Unaudited | Unaudited | Audited |
+--------------+--------------+-----------------------------+------------+------------+--------------+
| | | | GBP000 | GBP000 | GBP000 |
+--------------+--------------+-----------------------------+------------+------------+--------------+
| | | | | | |
+--------------+--------------+-----------------------------+------------+------------+--------------+
| Opening shareholders' | | 19,368 | 14,661 | 14,661 |
| equity | | | | |
+-----------------------------+-----------------------------+------------+------------+--------------+
| Equity settled share based | | 91 | 71 | 155 |
| payments | | | | |
+-----------------------------+-----------------------------+------------+------------+--------------+
| Ordinary dividend paid | | (1,984) | - | (1,488) |
+-----------------------------+-----------------------------+------------+------------+--------------+
| Profit for the year | | 3,086 | 2,815 | 6,040 |
+-----------------------------+-----------------------------+------------+------------+--------------+
| Closing shareholders' | | 20,561 | 17,547 | 19,368 |
| equity | | | | |
+--------------+--------------+-----------------------------+------------+------------+--------------+
Consolidated balance sheet
+---+-------------------------------------------+----------+------------+------------+--------------+
| Unaudited as at 30 June 2009 | | | | |
+-----------------------------------------------+----------+------------+------------+--------------+
| | | Notes | 30 June | 30 June | 31 December |
| | | | 2009 | 2008 | 2008 |
+---+-------------------------------------------+----------+------------+------------+--------------+
| | | | Unaudited | Unaudited | Audited |
+---+-------------------------------------------+----------+------------+------------+--------------+
| | | GBP000 | GBP000 | GBP000 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Assets | | | | |
+-----------------------------------------------+----------+------------+------------+--------------+
| Goodwill | | 5,138 | 1,028 | 5,138 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Other intangible assets | | 1,960 | 169 | 2,076 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Property, plant and equipment | | 1,784 | 504 | 1,699 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Financial investments | 11 | 10,519 | 9,285 | 8,212 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Trade and other receivables | 12 | 18,223 | 16,068 | 18,676 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Cash and cash equivalents | 13 | 24,098 | 25,884 | 25,419 |
+-----------------------------------------------+----------+------------+------------+--------------+
| | | | | | |
+---+-------------------------------------------+----------+------------+------------+--------------+
| Total assets | | 61,722 | 52,938 | 61,220 |
+-----------------------------------------------+----------+------------+------------+--------------+
| | | | | | |
+---+-------------------------------------------+----------+------------+------------+--------------+
| Liabilities | | | | |
+-----------------------------------------------+----------+------------+------------+--------------+
| Insurance contract provisions | 14 | 18,050 | 16,675 | 16,960 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Financial liabilities | | 1,100 | - | 1,100 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Finance lease obligations | | 265 | 194 | 193 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Deferred tax liabilities | | 2,047 | 1,430 | 2,466 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Current tax liabilities | | 1,637 | 1,340 | 1,108 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Accruals and deferred income | 15 | 6,039 | 5,438 | 8,109 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Trade and other payables | 16 | 12,023 | 10,314 | 11,916 |
+-----------------------------------------------+----------+------------+------------+--------------+
| | | | | | |
+---+-------------------------------------------+----------+------------+------------+--------------+
| Total liabilities | | 41,161 | 35,391 | 41,852 |
+-----------------------------------------------+----------+------------+------------+--------------+
| | | | | | |
+---+-------------------------------------------+----------+------------+------------+--------------+
| Equity | | | | |
+-----------------------------------------------+----------+------------+------------+--------------+
| Share capital | | 1,000 | 1,000 | 1,000 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Share premium | | 3,539 | 3,539 | 3,539 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Own shares | | (298) | (298) | (298) |
+-----------------------------------------------+----------+------------+------------+--------------+
| Retained earnings | | 15,039 | 12,200 | 13,937 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Merger reserves | | 282 | 282 | 282 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Reverse takeover reserve | | 188 | 188 | 188 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Capital redemption reserve | | 557 | 557 | 557 |
+-----------------------------------------------+----------+------------+------------+--------------+
| Equity settled share incentive reserve | | 254 | 79 | 163 |
+-----------------------------------------------+----------+------------+------------+--------------+
| | | | | | |
+---+-------------------------------------------+----------+------------+------------+--------------+
| Total shareholders' equity | | 20,561 | 17,547 | 19,368 |
+---+-------------------------------------------+----------+------------+------------+--------------+
Consolidated cash flow statement
+---+--------------------------------+----------+--+----------+------------+------------+--------------+
| Unaudited for the 6 months ended 30 June 2009 | | | | | |
+-----------------------------------------------+--+----------+------------+------------+--------------+
| | | | | | 6 months | 6 months | Year ended |
| | | | | | ended 30 | ended 30 | 31 December |
| | | | | | June 2009 | June 2008 | 2008 |
+---+--------------------------------+----------+--+----------+------------+------------+--------------+
| | | | | | Unaudited | Unaudited | Audited |
+---+--------------------------------+----------+--+----------+------------+------------+--------------+
| | | | | | GBP000 | GBP000 | GBP000 |
+---+--------------------------------+----------+--+----------+------------+------------+--------------+
| | | | | | | | |
+---+--------------------------------+----------+--+----------+------------+------------+--------------+
| Profit before tax | | | | 4,275 | 3,891 | 8,267 |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| | | | | | | | |
+---+--------------------------------+----------+--+----------+------------+------------+--------------+
| Adjusted for: | | | | | | |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Interest receivable | | | | (360) | (938) | (1,852) |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Profit on sale of assets | | | | (22) | - | (21) |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Amortisation of intangible assets | | | | 197 | 43 | 137 |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Depreciation of property, plant | | | | 154 | 121 | 272 |
| and equipment | | | | | | |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Equity settled share based | | | | 91 | 71 | 155 |
| payments | | | | | | |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| (Increase)/decrease in work in | | | | (14) | (135) | (42) |
| progress | | | | | | |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Decrease/(increase) in receivables | | | | 347 | 2,032 | (324) |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| (Decrease)/increase in payables | | | | (763) | (3,782) | 496 |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Cash generated by operations | | | | 3,905 | 1,303 | 7,088 |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| | | | | | | | |
+---+--------------------------------+----------+--+----------+------------+------------+--------------+
| Interest received | | | | 480 | 913 | 1,932 |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Tax paid | | | | (1,079) | (875) | (1,890) |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Net cash from operating activities | | | | 3,306 | 1,341 | 7,130 |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| | | | | | | | |
+---+--------------------------------+----------+--+----------+------------+------------+--------------+
| Investing activities | | | | | | |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| (Purchase)/sale of financial | | | | (2,307) | 8,676 | 9,749 |
| investments | | | | | | |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Purchases of intangible assets | | | | (81) | (22) | (40) |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Purchases of property, plant and | | | | (255) | (51) | (201) |
| equipment | | | | | | |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Acquisition of subsidiary | | | | - | - | (4,521) |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Net cash (used in)/from investing activities | | | (2,643) | 8,603 | 4,987 |
+-----------------------------------------------+--+----------+------------+------------+--------------+
| | | | | | | | |
+---+--------------------------------+----------+--+----------+------------+------------+--------------+
| Financing activities | | | | | | |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Equity dividend paid | | | | (1,984) | - | (1,488) |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Bank loan repayment | | | | - | - | (1,150) |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| Net cash used in financing | | | | (1,984) | - | (2,638) |
| activities | | | | | | |
+------------------------------------+----------+--+----------+------------+------------+--------------+
| | | | | | | | |
+---+--------------------------------+----------+--+----------+------------+------------+--------------+
| Net (decrease)/increase in cash and cash equivalents | (1,321) | 9,944 | 9,479 |
+-------------------------------------------------------------+------------+------------+--------------+
| Cash and cash equivalents at beginning of the period | 25,419 | 15,940 | 15,940 |
+-------------------------------------------------------------+------------+------------+--------------+
| Cash and cash equivalents at the end of the period | 24,098 | 25,884 | 25,419 |
+---+--------------------------------+----------+--+----------+------------+------------+--------------+
Notes to the financial statements
1Basis of preparation
The consolidated financial information contained within these financial
statements is unaudited and does not constitute statutory accounts within the
meaning of Section 240 of the Companies Act 1985. The statutory accounts for the
year ended 31 December 2008, which were prepared in accordance with
International Financial Reporting Standards, as endorsed by the European Union
('IFRS'), and with those parts of the Companies Act 1985 applicable to companies
reporting under IFRS, have been delivered to the Registrar of Companies and
included the report of the auditors which was unqualified.
The preparation of the interim financial statements requires the use of
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. The significant judgements
and estimates applied by the Group in these interim financial statements have
been applied on a consistent basis with the statutory accounts for the year
ended 31 December 2008. Although these estimates are based on management's best
knowledge of the amount, event or actions, actual results may ultimately differ
from those of estimates.
The accounting policies applied in these interim financial statements are the
same as those published in the Group's statutory accounts for the year ended 31
December 2008.
During the period, the group has adopted IFRS 8, operating segments.
Accordingly, disclosures relating to business segments have been amended and
comparative information presented.
2 Segment information
(a) Primary reporting format - business segments
Abbey Protection plc's reportable segments are strategic business units that
offer different products and services. They are managed separately because each
business requires different skill sets, technology and marketing strategies.
Abbey Protection plc has four reportable segments: insurance underwriting, abbey
legal protection, abbey tax protection and accountax. Insurance underwriting
comprises reinsuring a proportion of the business Abbey Protection plc
introduces to underwriting partners. Abbey legal protection comprises the
intermediation of legal expenses insurance together with the provision of
related advice and consultancy. Abbey tax protection comprises the
intermediation of professional fee protection insurance together with the
provision of related advice and consultancy. Accountax comprises of the
provision of tax consultancy and marketing services.
Other segments represent business units whose operations fall below the
quantitative disclosure thresholds. These businesses offer HR consultancy, after
the event insurance intermediation and insurance run-off services.
The accounting policies applied in preparing operating segment disclosures are
the same as those described in the summary of significant accounting policies.
Abbey Protection plc evaluates performance on the basis of profit from
operations before tax expense.
+------------------------+---+--------------+------------+------------+------------+----------+---------+
| 6 months ended 30 June 2009 - Unaudited | | | | | |
+-------------------------------------------+------------+------------+------------+----------+---------+
| | | Insurance | Abbey | Abbey tax | Accountax* | Other | Total |
| | | underwriting | legal | protection | | segments | |
| | | | protection | | | | |
+------------------------+---+--------------+------------+------------+------------+----------+---------+
| | | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------------+---+--------------+------------+------------+------------+----------+---------+
| | | | | | | | |
+------------------------+---+--------------+------------+------------+------------+----------+---------+
| Revenue from external | | 6,475 | 4,326 | 3,022 | 1,090 | 1,177 | 16,090 |
| customers | | | | | | | |
+------------------------+---+--------------+------------+------------+------------+----------+---------+
| | | | | | | | |
+------------------------+---+--------------+------------+------------+------------+----------+---------+
| Interest revenue | | 275 | 13 | 8 | 0 | 5 | 301 |
+------------------------+---+--------------+------------+------------+------------+----------+---------+
| | | | | | | | |
+------------------------+---+--------------+------------+------------+------------+----------+---------+
| Depreciation and | | - | 92 | 26 | 183 | 57 | 358 |
| amortisation | | | | | | | |
+------------------------+---+--------------+------------+------------+------------+----------+---------+
| | | | | | | | |
+------------------------+---+--------------+------------+------------+------------+----------+---------+
| Reportable segment | | 1,907 | 759 | 1,168 | 128 | 313 | 4,275 |
| profit | | | | | | | |
+------------------------+---+--------------+------------+------------+------------+----------+---------+
| | | | | | | | |
+------------------------+---+--------------+------------+------------+------------+----------+---------+
| Reportable segment | | 29,958 | 6,575 | 4,150 | 7,611 | 5,254 | 53,548 |
| assets | | | | | | | |
+------------------------+---+--------------+------------+------------+------------+----------+---------+
| | | | | | | | |
+------------------------+---+--------------+------------+------------+------------+----------+---------+
| Expenditures for | - | 181 | 83 | 16 | 56 | 336 |
| reportable segment | | | | | | |
| non-current assets | | | | | | |
+------------------------+---+--------------+------------+------------+------------+----------+---------+
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
| 6 months ended 30 June 2008 - Unaudited | | | | | |
+-------------------------------------------+------------+------------+------------+----------+---------+
| | | Insurance | Abbey | Abbey tax | Accountax* | Other | Total |
| | | underwriting | legal | protection | | segments | |
| | | | protection | | | | |
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
| | | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
| | | | | | | | |
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
| Revenue from external | | 5,855 | 3,974 | 2,672 | - | 1,093 | 13,594 |
| customers | | | | | | | |
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
| | | | | | | | |
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
| Interest revenue | | 672 | 130 | 78 | - | 32 | 912 |
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
| | | | | | | | |
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
| Depreciation and | | - | 91 | 37 | - | 38 | 166 |
| amortisation | | | | | | | |
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
| | | | | | | | |
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
| Reportable segment | | 2,129 | 670 | 953 | - | 139 | 3,891 |
| profit | | | | | | | |
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
| | | | | | | | |
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
| Reportable segment | | 27,403 | 11,857 | 4,470 | - | 3,775 | 47,505 |
| assets | | | | | | | |
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
| | | | | | | | |
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
| Expenditures for | - | 40 | 18 | - | 16 | 74 |
| reportable segment | | | | | | |
| non-current assets | | | | | | |
+-----------------------+----+--------------+------------+------------+------------+----------+---------+
*Accountax was acquired on 21 October 2008.
+----------------------+----+---------+--+--------+------------+------------+------------+----------+----------+
| 12 months ended 31 December 2008 - Unaudited |
+--------------------------------------------------------------------------------------------------------------+
| | | Insurance | Abbey | Abbey tax | Accountax* | Other | Total |
| | | underwriting | legal | protection | | segments | |
| | | | protection | | | | |
+----------------------+----+---------------------+------------+------------+------------+----------+----------+
| | | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+----------------------+----+---------------------+------------+------------+------------+----------+----------+
| | | | | | | | |
+----------------------+----+---------------------+------------+------------+------------+----------+----------+
| Revenue from | | 12,039 | 8,435 | 5,350 | 297 | 2,212 | 28,333 |
| external customers | | | | | | | |
+----------------------+----+---------------------+------------+------------+------------+----------+----------+
| | | | | | | | |
+----------------------+----+---------------------+------------+------------+------------+----------+----------+
| Interest revenue | | 1,434 | 222 | 158 | 1 | 103 | 1,918 |
+----------------------+----+---------------------+------------+------------+------------+----------+----------+
| | | | | | | | |
+----------------------+----+---------------------+------------+------------+------------+----------+----------+
| Depreciation and | | - | 185 | 74 | 83 | 67 | 409 |
| amortisation | | | | | | | |
+----------------------+----+---------------------+------------+------------+------------+----------+----------+
| | | | | | | | |
+----------------------+----+---------------------+------------+------------+------------+----------+----------+
| Reportable segment | | 4,559 | 1,740 | 1,763 | (48) | 253 | 8,267 |
| profit/(loss) | | | | | | | |
+----------------------+----+---------------------+------------+------------+------------+----------+----------+
| | | | | | | | |
+----------------------+----+---------------------+------------+------------+------------+----------+----------+
| Reportable segment | | 30,200 | 9,004 | 3,341 | 7,887 | 4,718 | 55,150 |
| assets | | | | | | | |
+----------------------+----+---------------------+------------+------------+------------+----------+----------+
| | | | | | | | |
+----------------------+----+---------------------+------------+------------+------------+----------+----------+
| Expenditures for | - | 163 | 19 | 6094 | 58 | 6,334 |
| reportable segment | | | | | | |
| non-current assets | | | | | | |
+---------------------------+---------------------+------------+------------+------------+----------+----------+
| | | | | | | | |
+-------------------------------------+--+--------+------------+------------+------------+----------+----------+
| * Accountax was acquired on 21 October 2008. |
| |
+----------------------+----+---------+--+--------+------------+------------+------------+----------+----------+
Reconciliation of reportable segment assets - Unaudited
+------------------------+-----------+--+----------+--+------------+
| | 6 months | | 6 months | | Year ended |
| | ended 30 | | ended 30 | | 31 |
| | June 2009 | | June | | December |
| | | | 2008 | | 2008 |
+------------------------+-----------+--+----------+--+------------+
| | GBP000 | | GBP000 | | GBP000 |
+------------------------+-----------+--+----------+--+------------+
| | | | | | |
+------------------------+-----------+--+----------+--+------------+
| Total assets for | 53,548 | | 47,505 | | 55,150 |
| reportable segments | | | | | |
+------------------------+-----------+--+----------+--+------------+
| Unallocated assets | 8,174 | | 5,433 | | 6,070 |
+------------------------+-----------+--+----------+--+------------+
| Total assets | 61,722 | | 52,938 | | 61,220 |
+------------------------+-----------+--+----------+--+------------+
Information about major customers - Unaudited
Revenues from one customer represent approximately GBP2,568,000 of the Group's
total revenue (6 months ended 30 June 2008 GBP2,382,000 and 12 months ended 31
December 2008 GBP4,856,000). Revenue from this customer is recorded in segmental
revenue for insurance underwriting, abbey legal protection and abbey tax
protection.
(b) Secondary segment information - geographical analysis
All of the Group's revenues, costs, assets and liabilities are derived from
providing its services in the United Kingdom.
+---+-------------------------------+----------+--+------------+--+-----------+--+------------+
| 3 | Intermediary, advisory and other income | | | | | | |
+---+------------------------------------------+--+------------+--+-----------+--+------------+
| | | | | | | | | |
+---+-------------------------------+----------+--+------------+--+-----------+--+------------+
| | | | | 6 months | | 6 months | | Year ended |
| | | | | ended 30 | | ended 30 | | 31 |
| | | | | June 2009 | | June | | December |
| | | | | | | 2008 | | 2008 |
+---+-------------------------------+----------+--+------------+--+-----------+--+------------+
| | | | | Unaudited | | Unaudited | | Audited |
+---+-------------------------------+----------+--+------------+--+-----------+--+------------+
| | | | | GBP000 | | GBP000 | | GBP000 |
+---+-------------------------------+----------+--+------------+--+-----------+--+------------+
| | | | | | | | | |
+---+-------------------------------+----------+--+------------+--+-----------+--+------------+
| | Income from intermediation | | | 4,010 | | 3,548 | | 7,706 |
+---+-------------------------------+----------+--+------------+--+-----------+--+------------+
| | Advisory fees | | | 2,082 | | 1,992 | | 3,968 |
+---+-------------------------------+----------+--+------------+--+-----------+--+------------+
| | Other income | | | 3,523 | | 2,199 | | 4,620 |
+---+-------------------------------+----------+--+------------+--+-----------+--+------------+
| | Total intermediary, advisory | | | 9,615 | | 7,739 | | 16,294 |
| | and other income | | | | | | | |
+---+-------------------------------+----------+--+------------+--+-----------+--+------------+
| | | | | | | | | |
+---+-------------------------------+----------+--+------------+--+-----------+--+------------+
| | Other income comprises consultancy, claims handling and management services. |
+---+-------------------------------+----------+--+------------+--+-----------+--+------------+
4 Net insurance premium
There were no reinsurance policies in effect throughout the periods reported.
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| 5 | Net investment return | | | | | | | |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | | | | 6 months | | 6 months | | Year ended |
| | | | | ended 30 | | ended 30 | | 31 |
| | | | | June 2009 | | June | | December |
| | | | | | | 2008 | | 2008 |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | | | | Unaudited | | Unaudited | | Audited |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | | | | GBP000 | | GBP000 | | GBP000 |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | Investments at fair value through Income | | | | | | |
| | statement: | | | | | | |
+---+------------------------------------------+--+------------+--+-----------+--+------------+
| | - certificates of deposit | | | 177 | | 668 | | 1,310 |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | Other investments: | | | | | | | |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | -cash and cash equivalents | | | 183 | | 270 | | 542 |
| | income | | | | | | | |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | Investment income | | | 360 | | 938 | | 1,852 |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | Gains/(losses) on investments at fair | | (59) | | (26) | | 66 |
| | value through the income statement | | | | | | |
+---+------------------------------------------+--+------------+--+-----------+--+------------+
| | Net investment return | | | 301 | | 912 | | 1,918 |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| 6 | Claims and change in insurance | | | | | | |
| | liabilities | | | | | | |
+---+-------------------------------------------+--+------------+--+-----------+--+------------+
| | | | | 6 months | | 6 months | | Year ended |
| | | | | ended 30 | | ended 30 | | 31 |
| | | | | June 2009 | | June | | December |
| | | | | | | 2008 | | 2008 |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| | | | | Unaudited | | Unaudited | | Audited |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| | | | | GBP000 | | GBP000 | | GBP000 |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| | | | | | | | | |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| | Gross claims paid | | | (3,473) | | (3,800) | | (7,395) |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| | Gross change in the provision | | | (910) | | (188) | | (300) |
| | for claims | | | | | | | |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| | Claims and change in insurance | | | (4,383) | | (3,988) | | (7,695) |
| | liabilities | | | | | | | |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| 7 | Operating and administration expenses | | | | | | |
+---+------------------------------------------+--+------------+--+-----------+--+------------+
| | | | | | | | | |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | | | | 6 months | | 6 months | | Year ended |
| | | | | ended 30 | | ended 30 | | 31 |
| | | | | June 2009 | | June | | December |
| | | | | | | 2008 | | 2008 |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | | | | Unaudited | | Unaudited | | Audited |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | | | | GBP000 | | GBP000 | | GBP000 |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | | | | | | | | |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | Staff costs | | | 4,964 | | 4,247 | | 8,714 |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | Other operating expenses | | | 2,366 | | 2,029 | | 4,464 |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
| | Total operating and administration | | 7,330 | | 6,276 | | 13,178 |
| | expenses | | | | | | |
+---+--------------------------------+---------+--+------------+--+-----------+--+------------+
8 Tax expense
Income tax for the six months period is charged at 27.8% (six months ended 30
June 2008: 27.7%; year ended 31 December 2008: 26.9%), representing the best
estimate of the average annual effective income tax rate expected for the full
year, applied to the pre-tax income of the six month period.
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| 9 | Dividends | | | | | | | |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| | | | | 6 months | | 6 months | | Year ended |
| | | | | ended 30 | | ended 30 | | 31 |
| | | | | June 2009 | | June | | December |
| | | | | | | 2008 | | 2008 |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| | | | | Unaudited | | Unaudited | | Audited |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| | | | | GBP000 | | GBP000 | | GBP000 |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| | | | | | | | | |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| | Amounts recognised as distributions to | | | | | | |
| | equity holders in the period: | | | | | | |
+---+-------------------------------------------+--+------------+--+-----------+--+------------+
| | | | | | | | | |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| | Dividends on ordinary shares | | | 1,984 | | - | | 1,488 |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| | | | | | | | | |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
| | Net appropriation for the year | | | 1,984 | | - | | 1,488 |
+---+--------------------------------+----------+--+------------+--+-----------+--+------------+
On 29 October 2008 a dividend of GBP1,488,000 (net of GBP12,000 receivable by a
group ESOP trust) was paid representing 1.5 pence per Abbey Protection plc
share.
On 30 April 2009 a dividend of GBP1,984,000 (net of GBP16,000 receivable by a
group ESOP trust) was paid representing 2.0 pence per Abbey Protection plc
share.
The board declares the payment of an interim dividend of 1.6p per Abbey
Protection plc ordinary share amounting to GBP1,600,000. The dividend will be
payable on 7 October 2009 to all shareholders on the register on 11 September
2009. These financial statements do not reflect this dividend payable.
+----+--------------------------------+--+-------------+------------+-----+-----+--+---+--------------------------------+--+-------------+-------------+
| 10 | Earnings per share | | | | | | |
+----+--------------------------------+-----------------------------------------+--+------------------------------------+--+-------------+-------------+
| | The calculation of the basic and diluted earnings per share is based on the following | | |
| | data: | | |
+----+---------------------------------------------------------------------------------------------------------------------+-------------+-------------+
| | | | | | | | |
+----+--------------------------------+----------------+------------------+------------+-----------------------------------+-------------+-------------+
| | | | | | 6 | 6 months | Year ended |
| | | | | | months | ended 30 | 31 |
| | | | | | ended | June 2008 | December |
| | | | | | 30 | | 2008 |
| | | | | | June | | |
| | | | | | 2009 | | |
+----+--------------------------------+----------------+------------------+------------+-----------------------------------+-------------+-------------+
| | | | | | Unaudited | Unaudited | Audited |
+----+--------------------------------+----------------+------------------+------------+-----------------------------------+-------------+-------------+
| | | | | | GBP000 | GBP000 | GBP000 |
+----+--------------------------------+----------------+------------------+------------+-----------------------------------+-------------+-------------+
| | | | | | | | |
+----+--------------------------------+----------------+------------------+------------+-----------------------------------+-------------+-------------+
| | Profit attributable to equity holders of the parent | 3,086 | 2,815 | 6,040 |
+----+---------------------------------------------------------------------------------+-----------------------------------+-------------+-------------+
| | | | | | | | |
+----+--------------------------------+--+--------------------------+------------------+-----------------------------------+-------------+-------------+
| | Effect of dilutive potential ordinary shares | - | - | - |
+----+---------------------------------------------------------------------------------+-----------------------------------+-------------+-------------+
| | | | | | | | |
+----+--------------------------------+--+--------------------------+------------------+-----------------------------------+-------------+-------------+
| | Earnings for the purposes of diluted earnings per share | 3,086 | 2,815 | 6,040 |
+----+---------------------------------------------------------------------------------+-----------------------------------+-------------+-------------+
| | | | | | |
+----+--------------------------------+------------------------------------------------+-----------------------------------+-------------+-------------+
| | | | | | 6 | 6 months | Year ended |
| | | | | | months | ended 30 | 31 |
| | | | | | ended | June 2008 | December |
| | | | | | 30 | | 2008 |
| | | | | | June | | |
| | | | | | 2009 | | |
+----+--------------------------------+-----------------------------------------+--+---+-----------------------------------+-------------+-------------+
| | | | | | Unaudited | Unaudited | Audited |
+----+--------------------------------+-----------------------------------------+--+---+-----------------------------------+-------------+-------------+
| | | | | | No. of | No. of | No. of |
| | | | | | shares | shares | shares |
+----+--------------------------------+-----------------------------------------+--+---+-----------------------------------+-------------+-------------+
| | | | | | | | |
+----+--------------------------------+-----------------------------------------+--+---+-----------------------------------+-------------+-------------+
| | Weighted average number of ordinary shares in issue | 99,231,375 | 99,231,375 | 99,231,375 |
+----+---------------------------------------------------------------------------------+-----------------------------------+-------------+-------------+
| | | | | | | | |
+----+--------------------------------+-----------------------------------------+--+---+-----------------------------------+-------------+-------------+
| | Effect of dilutive potential ordinary shares (share options) | 1,089,107 | 880,195 | 894,278 |
+----+---------------------------------------------------------------------------------+-----------------------------------+-------------+-------------+
| | | | | | | | |
+----+--------------------------------+-----------------------------------------+--+---+-----------------------------------+-------------+-------------+
| | Weighted average number of ordinary shares for the purposes of diluted earnings | | | |
| | per share | | | |
+----+ +-----------------------------------+-------------+-------------+
| | | 100,320,482 | 100,111,570 | 100,125,653 |
+----+--------------------------------+--+-------------+------------+-----+-----+--+---+--------------------------------+--+-------------+-------------+
+----+----------------------------------+--+-----------+-----------+--+------------+--+------------+--+--+--+--+
| 11 | Financial investments |
+----+---------------------------------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------------------------------------+
| Financial investments at fair value through profit and loss |
+--------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | |
+----+----------------------------------+--+-----------+-----------+--+------------+--+------------+--+--+--+--+
| | | | | 6 months | | 6 months | | Year ended | | | | |
| | | | | ended 30 | | ended 30 | | 31 | | | | |
| | | | | June | | June 2008 | | December | | | | |
| | | | | 2009 | | | | 2008 | | | | |
+----+----------------------------------+--+-----------+-----------+--+------------+--+------------+--+--+--+--+
| | | | | Unaudited | | Unaudited | | Audited | | | | |
+----+----------------------------------+--+-----------+-----------+--+------------+--+------------+--+--+--+--+
| | | | | GBP000 | | GBP000 | | GBP000 | | | | |
+----+----------------------------------+--+-----------+-----------+--+------------+--+------------+--+--+--+--+
| | | | | | | | | | | | | |
+----+----------------------------------+--+-----------+-----------+--+------------+--+------------+--+--+--+--+
| | Certificates of deposit | | | 10,519 | | 9,285 | | 8,212 | | | | |
+----+----------------------------------+--+-----------+-----------+--+------------+--+------------+--+--+--+--+
| | | | | | | | | | | | | |
+----+----------------------------------+--+-----------+-----------+--+------------+--+------------+--+--+--+--+
| | The fair values of the Group's financial investments have been arrived at by reference to readily |
| | available market prices. |
+----+----------------------------------+--+-----------+-----------+--+------------+--+------------+--+--+--+--+
+----+--------------------------------+----------+------+-----------+--+------------+--+------------+
| 12 | Trade and other receivables | | | | | | | |
+----+--------------------------------+----------+------+-----------+--+------------+--+------------+
| | | | | 6 months | | 6 months | | Year ended |
| | | | | ended 30 | | ended 30 | | 31 |
| | | | | June | | June 2008 | | December |
| | | | | 2009 | | | | 2008 |
+----+--------------------------------+----------+------+-----------+--+------------+--+------------+
| | | | | Unaudited | | Unaudited | | Audited |
+----+--------------------------------+----------+------+-----------+--+------------+--+------------+
| | | | | GBP000 | | GBP000 | | GBP000 |
+----+--------------------------------+----------+------+-----------+--+------------+--+------------+
| | Receivables arising from insurance and | | | | | |
| | reinsurance contracts: | | | | | |
+----+--------------------------------------------------+-----------+--+------------+--+------------+
| | - premiums due from insurers | | | 5,844 | | 4,479 | | 4,226 |
+----+--------------------------------+----------+------+-----------+--+------------+--+------------+
| | - trade debtors | | | 9,724 | | 8,682 | | 11,731 |
+----+--------------------------------+----------+------+-----------+--+------------+--+------------+
| | Other receivables: | | | | | | |
+----+-------------------------------------------+------+-----------+--+------------+--+------------+
| | - other prepayments and accrued income | 1,324 | | 1,256 | | 997 |
+----+--------------------------------------------------+-----------+--+------------+--+------------+
| | - amounts due from related | | | 867 | | 985 | | 924 |
| | parties | | | | | | | |
+----+--------------------------------+----------+------+-----------+--+------------+--+------------+
| | - other debtors | | | 464 | | 666 | | 798 |
+----+--------------------------------+----------+------+-----------+--+------------+--+------------+
| | Total insurance and other receivables | | 18,223 | | 16,068 | | 18,676 |
+----+-------------------------------------------+------+-----------+--+------------+--+------------+
| | | | | | | | | |
+----+--------------------------------+----------+------+-----------+--+------------+--+------------+
| | Due within one year | | | 18,223 | | 16,068 | | 18,676 |
+----+--------------------------------+----------+------+-----------+--+------------+--+------------+
13 Cash and cash equivalents
Included in cash and cash equivalents held by the Group as at each period end
are balances totalling GBP2.1m not available for use by the Group. Of this
amount, GBP1m is held in trust to guarantee claims liabilities (see note 18).
The balance of GBP1.1m is held in escrow to guarantee deferred acquisition
consideration.
+----+--------------------------------+---------+------+-----------+---+------------+--+------------+--+--+--+--+
| 14 | Insurance contract provisions (gross and net) |
+----+----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | |
+----+--------------------------------+---------+------+-----------+---+------------+--+------------+--+--+--+--+
| | | | | 6 | | 6 months | | Year ended | | | | |
| | | | | months | | ended 30 | | 31 | | | | |
| | | | | ended | | June 2008 | | December | | | | |
| | | | | 30 June | | | | 2008 | | | | |
| | | | | 2009 | | | | | | | | |
+----+--------------------------------+---------+------+-----------+---+------------+--+------------+--+--+--+--+
| | | | | Unaudited | | Unaudited | | Audited | | | | |
+----+--------------------------------+---------+------+-----------+---+------------+--+------------+--+--+--+--+
| | | | | GBP000 | | GBP000 | | GBP000 | | | | |
+----+--------------------------------+---------+------+-----------+---+------------+--+------------+--+--+--+--+
| | | | | | | | | | | | | |
+----+--------------------------------+---------+------+-----------+---+------------+--+------------+--+--+--+--+
| | Unearned premiums | | | 7,037 | | 6,684 | | 6,857 | | | | |
+----+--------------------------------+---------+------+-----------+---+------------+--+------------+--+--+--+--+
| | Claims reported by | | | 6,097 | | 6,365 | | 5,776 | | | | |
| | policyholders | | | | | | | | | | | |
+----+--------------------------------+---------+------+-----------+---+------------+--+------------+--+--+--+--+
| | Claims incurred but not | | | 4,916 | | 3,626 | | 4,327 | | | | |
| | reported | | | | | | | | | | | |
+----+--------------------------------+---------+------+-----------+---+------------+--+------------+--+--+--+--+
| | Total insurance contract | | | 18,050 | | 16,675 | | 16,960 | | | | |
| | provisions | | | | | | | | | | | |
+----+--------------------------------+---------+------+-----------+---+------------+--+------------+--+--+--+--+
+----+--------------------------------+-------+--------+-----+--+------+--+------------+--+------------+
| 15 | Accruals and deferred income | | | | | | | |
+----+--------------------------------+-------+--------+-----+--+----------------------+--+------------+
| | | | | | | |
+----+--------------------------------+-------+--------+-------------------------------+--+------------+
| | | | | 6 months | | 6 months | | Year ended |
| | | | | ended 30 June | | ended 30 | | 31 |
| | | | | 2009 | | June 2008 | | December |
| | | | | | | | | 2008 |
+----+--------------------------------+-------+--------+---------------+--+------------+--+------------+
| | | | | Unaudited | | Unaudited | | Audited |
+----+--------------------------------+-------+--------+---------------+--+------------+--+------------+
| | | | | GBP000 | | GBP000 | | GBP000 |
+----+--------------------------------+-------+--------+---------------+--+------------+--+------------+
| | | | | | | | | |
+----+--------------------------------+-------+--------+---------------+--+------------+--+------------+
| | Accruals | | | 1,345 | | 1,223 | | 1,507 |
+----+--------------------------------+-------+--------+---------------+--+------------+--+------------+
| | Deferred income | | | 4,694 | | 4,215 | | 6,602 |
+----+--------------------------------+-------+--------+---------------+--+------------+--+------------+
| | Total accruals and deferred | | | 6,039 | | 5,438 | | 8,109 |
| | income | | | | | | | |
+----+--------------------------------+-------+--------+-----+--+------+--+------------+--+------------+
+----+--------------------------------+---------+------+-----------+--+------------+--+------------+
| 16 | Trade and other payables | | | | | | | |
+----+--------------------------------+---------+------+-----------+--+------------+--+------------+
| | | | | | | | | |
+----+--------------------------------+---------+------+-----------+--+------------+--+------------+
| | | | | 6 months | | 6 months | | Year ended |
| | | | | ended 30 | | ended 30 | | 31 |
| | | | | June | | June 2008 | | December |
| | | | | 2009 | | | | 2008 |
+----+--------------------------------+---------+------+-----------+--+------------+--+------------+
| | | | | Unaudited | | Unaudited | | Audited |
+----+--------------------------------+---------+------+-----------+--+------------+--+------------+
| | | | | GBP000 | | GBP000 | | GBP000 |
+----+--------------------------------+---------+------+-----------+--+------------+--+------------+
| | | | | | | | | |
+----+--------------------------------+---------+------+-----------+--+------------+--+------------+
| | Other trade payables | | | 10,922 | | 9,772 | | 11,123 |
+----+--------------------------------+---------+------+-----------+--+------------+--+------------+
| | Other taxes and social | | | 579 | | 383 | | 564 |
| | security | | | | | | | |
+----+--------------------------------+---------+------+-----------+--+------------+--+------------+
| | Other payables | | | 522 | | 159 | | 229 |
+----+--------------------------------+---------+------+-----------+--+------------+--+------------+
| | Total trade and other payables | | | 12,023 | | 10,314 | | 11,916 |
+----+--------------------------------+---------+------+-----------+--+------------+--+------------+
Trade and other payables are all expected to be settled within twelve months of
the balance sheet date.
+----+--------------------------------+------------+------------+------------+------------+--------------+
| 17 | Share option schemes | | | | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | As at 30 June 2009, share options were outstanding as set out below: | |
| | | |
+----+------------------------------------------------------------------------------------+--------------+
| | Options granted | | | | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | | SAYE | SAYE | CSOP | CSOP | CSOP |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Date of grant |20/12/2007 |24/07/2008 |29/11/2007 |27/06/2008 | 29/04/2009 |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Number of options granted | 980,039 | 76,454 | 381,815 | 30,000 | 51,824 |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Exercise price | GBP0.44 | GBP0.536 | GBP0.55 | GBP0.67 | GBP0.58 |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Share price at date of grant | GBP0.61 | GBP0.67 | GBP0.55 | GBP0.67 | GBP0.58 |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Contractual life (years) | 3.5 | 3.5 | 10 | 10 | 10 |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Vesting Date |01/01/2011 |01/09/2011 |30/11/2010 |30/06/2011 | 30/04/2012 |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Settlement | Shares | Shares | Shares | Shares | Shares |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Expected volatility | 35% | 35% | 35% | 35% | 35% |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Expected option life at date | Three | Three | Three | Three |Three Years |
| | of grant | Years | Years | Years | Years | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Risk free interest rate | 5.00% | 5.00% | 5.00% | 5.00% | 2.00% |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Expected dividend yield | 5.00% | 5.00% | 5.00% | 5.00% | 6.20% |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Expected annual departures | 5.00% | 5.00% | 5.00% | 0.00% | 0.00% |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Probability of meeting | 100% | 100% | 100% | 100% | 100% |
| | performance criteria at date | | | | | |
| | of grant | | | | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Fair value per option at date | GBP0.20 | GBP0.197 | GBP0.20 | GBP0.20 | GBP0.13 |
| | of grant | | | | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Valuation model | Binomial | Binomial | Binomial | Binomial | Binomial |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Total fair value |GBP168,052 | GBP12,887 | GBP65,799 | GBP6,120 | GBP6,737 |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | | | | | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | | LTIP | LTIP | LTIP | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Date of grant |29/11/2007 |27/06/2008 |29/04/2009 | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Number of options granted | 363,636 | 150,000 | 330,437 | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Exercise price | GBP0.00 | GBP0.00 | GBP0.00 | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Share price at date of grant | GBP0.55 | GBP0.67 | GBP0.58 | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Contractual life (years) | 10 | 10 | 10 | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Vesting Date |01/01/2011 |30/06/2011 |30/04/2012 | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Settlement | Shares | Shares | Shares | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Expected volatility | 35% | 35% | 35% | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Expected option life at date | Three | Three | Three | | |
| | of grant | Years | Years | Years | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Risk free interest rate | 5.00% | 5.00% | 2.00% | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Expected dividend yield | 5.00% | 5.00% | 6.20% | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Expected annual departures | 0.00% | 0.00% | 0.00% | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Probability of meeting | 100% | 75% | 89.5% | | |
| | performance criteria at date | | | | | |
| | of grant | | | | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Fair value per option at date | GBP0.52 | GBP0.58 | GBP0.58 | | |
| | of grant | | | | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Valuation model | Binomial | Binomial | Binomial | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
| | Total fair value |GBP190,182 | GBP64,913 |GBP142,508 | | |
+----+--------------------------------+------------+------------+------------+------------+--------------+
All share options require a minimum of 3 years service for the share options to
vest. The Save as You Earn scheme requires beneficiaries to make regular savings
which are deposited in a designated account. The grants made under the Long Term
Incentive Plan contain performance conditions linked to the growth in earnings
per share and individual performance.
18 Contingent liabilities
Barclays Bank Plc has issued an irrevocable standby letter of credit in respect
of Brit Insurance Limited for GBP1,000,000 in connection with the insurance
activities of Ibex Reinsurance Company Limited. This is secured on its bank
balances and has been in force throughout all reporting periods.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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