TIDMABB
RNS Number : 0025S
Abbey Protection PLC
02 September 2010
2 September 2010
Interim Results for the six months ended 30 June 2010
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 30 June 2010.
Highlights
· 11% increase in pre-tax profits to GBP4.7m
· Revenue in core trading divisions, Abbey Legal Protection and Abbey Tax
Protection, up 11% (to GBP8.2m)
· Earnings per share up 11% to 3.44p
· Steady and profitable underwriting results with a claims ratio of 63.3%
· Shareholders' funds up to GBP23.8m
· Half year dividend of 1.7p (H1 2009: 1.6p)
· Outlook positive, with a continued robust demand for services
Colin Davison, Chief Executive Officer, commented:
"I'm delighted to report another solid set of results for Abbey Protection,
which once again underline our ability and resilience to grow the business
against a tough economic backdrop and the continued low interest rate
environment. Our non-cyclical business model has enabled us to produce sustained
organic growth in group revenues and profits during the period. We continue to
investigate the acquisition of complementary businesses and are well placed to
take advantage of the opportunities likely to be afforded by the deregulation of
the legal services sector in 2011."
Financial Highlights
+--------------------------+-----------------------+-----------------------+----------+
| | 6 months ended | 6 months ended | Year |
| | 30 June 2010 | 30 June 2009 | ended 31 |
| | | | December |
| | | | 2009 |
| | | | |
+--------------------------+-----------------------+-----------------------+----------+
| Revenue | GBP17.3m | GBP16.4m | GBP32.9m |
+--------------------------+-----------------------+-----------------------+----------+
| EBITDA | GBP5.1m | GBP4.6m | GBP9.5m |
+--------------------------+-----------------------+-----------------------+----------+
| Profit before tax | GBP4.7m | GBP4.3m | GBP8.7m |
+--------------------------+-----------------------+-----------------------+----------+
| Profit after tax | GBP3.4m | GBP3.1m | GBP6.4m |
+--------------------------+-----------------------+-----------------------+----------+
| Basic earnings per share | 3.44p | 3.11p | 6.43p |
+--------------------------+-----------------------+-----------------------+----------+
| Dividend Per Share | 1.7p | 1.6p | 3.7p |
+--------------------------+-----------------------+-----------------------+----------+
Chief Executive's Statement
This is the third interim report and covers the six months ending 30 June 2010
for Abbey Protection plc ("the Group").
I am pleased to report that our results have held up well against a difficult
economic backdrop and the continued low interest rate environment, with an 11%
increase in profit before tax to GBP4.7m (2009:GBP4.3m).
The resilience of our core business model is demonstrated, in particular, by the
underlying performance of our principal trading divisions (Abbey Legal and Abbey
Tax) where revenues increased by 11% to GBP8.2m (2009:GBP7.4m) and profits were
up 18% to GBP2.3m (2009:GBP1.9m).
Current trading - divisional performance
Revenue from Abbey Tax Protection ("ATP") was up 14% to GBP3.5m, with
significant contributions from recently introduced products such as our embedded
capital allowances surveying service and also from specialist tax planning
insurance. Sales of our traditional core product of fee protection insurance
held up very well in an extremely competitive market and over the first part of
2010 we have consolidated our position as market leader in this sector. HMRC
enquiries, which declined in 2009, have started to increase again in 2010 which
should stabilise the aggressive pricing models of some competitors. Overall,
pre-tax profits, inclusive of allocated central costs, increased by 11% to
GBP1.3m.
There was solid growth in the revenue from the legal protection divisions, Abbey
Legal Protection/Services ("ALP/ALS"), up 8% to GBP4.7m, with new business sales
exceeding GBP0.5m and fee income from litigation and consultancy services
increasing to GBP1m. Overall the profit contribution from ALP/ALS, inclusive of
allocated central costs, increased by 28% to GBP1m, helped in part by the call
volumes being handled by the call centre returning to pre-recession levels and
enabling us to control our operational costs.
The claims ratio at our reinsurance subsidiary, Ibex, improved to 63.3%
(2009:67.7%), benefiting from some early year reserve releases. The underlying
loss ratios remain stable, with a marginal increase in employment claims in 2009
being off-set by reduced numbers of tax claims in the year. Despite the
continued low investment yields, Ibex increased its profit by 11% to GBP2.1m in
the first half of 2010. This profit contribution derives almost entirely from
premium written by the core divisions of ALP and ATP.
Although overall revenue from the After the Event ("ATE") division reduced to
GBP0.7m (2009: GBP0.9m), this was the result of all material income from our
managed run-off contracts having reached a natural conclusion. Sales of our
injury compensation product, Accident Line, were up 16% and particularly
pleasingly, our new commercial after the event insurance produced sales in
excess of expectations.
Sales revenue from the specialist accountancy services unit at Accountax ("ACX")
has overall remained flat compared with 2009. However, the consulting arm has
enjoyed a 17% increase in revenue to GBP0.9m whereas the marketing division has
suffered an equivalent reduction due to lower levels of conversions by its
accountancy clients. Pre-tax profit for ACX, after amortisation and central
costs, has risen by 22% to GBP0.2m.
Abbey HR ("AHR"), which sells packaged employee relations and health and safety
services directly to businesses, had a difficult start to the year but in the
second quarter, business has significantly improved. Consequently revenue has
increased by 11% to GBP0.3m, although the division still hovers at the break
even point. If the recent improvement in sales continues, then we expect a
small profit by the end of 2010.
Investment income has remained depressed with little expectation of increased
yields materialising until 2011. We remain committed to our low risk strategy of
investing in short term deposits and certificates of deposit with a maximum
duration of two years. On the positive side, when yields pick up, our results
will receive a further boost.
Operating cash flow remains strong at just over GBP4m for the six months to 30
June 2010 although tax payments have increased following the changes to the
controlled foreign company regime announced in 2009. We have also made the final
payment of deferred consideration associated with our acquisition of Accountax
which is now fully integrated.
The board has approved an interim dividend of 1.7 pence per share, an increase
of 0.1p over 2009, which will be payable on 7 October 2010 to all shareholders
on the register at 10 September 2010.
Outlook
We remain confident about the Group's prospects for the remainder of the year
and beyond, as we have demonstrated our resilience and ability to grow the
business in tough economic times. We are committed to maintaining the highest
standards of service and this philosophy will enable us to not only maintain,
but also enhance our position as the market leader in the supply of legal and
professional fees insurance to UK SMEs and maintain the strong organic growth in
revenue and profits.
In addition, our emphasis in recent years in developing specialist consultancy
services in both the legal and tax divisions is now bearing fruit, as is the
launch of new and specialist insurance products for commercial ATE and Tax
indemnities.
We continue to investigate the acquisition of complementary businesses in the
consultancy compliance and fee protection markets, although, we have not yet
identified a suitable target at a price which would be realistic for our
shareholders.
It is now just over 12 months until the first of the licences are scheduled to
be granted following the de-regulation of the legal services market. We are well
advanced in our preparations and believe we are well positioned to take
advantage of the opportunities in the sector.
Colin Davison
Chief Executive
September 2010
Analyst Presentation
There will be an analyst presentation to discuss the results at 11.00am today at
Numis Securities, 10 Paternoster Square, London EC4M 7LT.
Those analysts wishing to attend are asked to contact Nick Henderson or Ed Berry
at Financial Dynamics on +44 20 7269 7114 or at nick.henderson@fd.com / +44 020
7269 7297 or at edward.berry@fd.com
Enquiries
+-------------------------------------+---------------------+
| Abbey Protection plc | +44 (0)845 217 8293 |
| Minories House | |
| 2-5 Minories | |
| London | |
| EC3N 1BJ | |
| | |
| Colin Davison | |
| Chris Ward | |
| Adrian Green | |
| | |
+-------------------------------------+---------------------+
| PricewaterhouseCoopers LLP | +44 (0)20 7583 5000 |
| Simon Boadle | |
| Jon Raggett | |
| | |
+-------------------------------------+---------------------+
| Financial Dynamics | |
| Nick Henderson | +44 (0)20 7269 7114 |
| Ed Berry | +44 (0)20 7269 7297 |
| | |
+-------------------------------------+---------------------+
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 232 employees as at 31st December 2009. 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.
Consolidated income statement
+---------------------------------+----------+-----------+-----------+----------+
| Unaudited for the 6 months | | | | |
| ended 30 June 2010 | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| | Note | 6 months | 6 months | Year |
| | | ended | ended | ended |
| | | 30 June | 30 June | 31 Dec |
| | | 2010 | 2009 | 2009 |
+---------------------------------+----------+-----------+-----------+----------+
| | | Unaudited | Unaudited | Audited |
+---------------------------------+----------+-----------+-----------+----------+
| | | GBP000 | GBP000 | GBP000 |
+---------------------------------+----------+-----------+-----------+----------+
| Revenue | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| Intermediary, advisory and | 3 | 10,238 | 9,615 | 19,314 |
| other income | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| Gross and net premiums written | | 7,227 | 6,655 | 13,623 |
+---------------------------------+----------+-----------+-----------+----------+
| Gross and net change in | | (447) | (180) | (451) |
| provision for unearned premiums | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| Gross and net premiums earned | 4 | 6,780 | 6,475 | 13,172 |
+---------------------------------+----------+-----------+-----------+----------+
| Net investment return | 5 | 264 | 301 | 459 |
+---------------------------------+----------+-----------+-----------+----------+
| | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| Total revenue | | 17,282 | 16,391 | 32,945 |
+---------------------------------+----------+-----------+-----------+----------+
| | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| Expenses | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| Claims and change in insurance | 6 | (4,290) | (4,383) | (8,328) |
| liabilities | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| Acquisition costs | | (481) | (403) | (966) |
+---------------------------------+----------+-----------+-----------+----------+
| Other operating and | 7 | (7,766) | (7,330) | (14,906) |
| administrative expenses | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| Total operating expenses | | (12,537) | (12,116) | (24,200) |
+---------------------------------+----------+-----------+-----------+----------+
| | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| Profit before tax | | 4,745 | 4,275 | 8,745 |
+---------------------------------+----------+-----------+-----------+----------+
| Tax expense | 8 | (1,329) | (1,189) | (2,362) |
+---------------------------------+----------+-----------+-----------+----------+
| | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| Profit attributable to equity | | 3,416 | 3,086 | 6,383 |
| shareholders of the parent | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| Earnings per share | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| From continuing operations | | Pence per | Pence per | Pence |
| | | share | share | per |
| | | | | share |
+---------------------------------+----------+-----------+-----------+----------+
| | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| Basic | 10 | 3.44 | 3.11 | 6.43 |
+---------------------------------+----------+-----------+-----------+----------+
| | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| Diluted | 10 | | | |
| | | 3.40 | 3.08 | 6.36 |
+---------------------------------+----------+-----------+-----------+----------+
| | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| There were no discontinued | | | | |
| operations. | | | | |
+---------------------------------+----------+-----------+-----------+----------+
| There was no other | | | | |
| comprehensive income. | | | | |
+---------------------------------+----------+-----------+-----------+----------+
Consolidated balance sheet
+---------------------------------------+------+-----------+-----------+----------+
| Unaudited as at 30 June 2010 | | | | |
+---------------------------------------+------+-----------+-----------+----------+
| |Note | 30 June | 30 June | 31 Dec |
| | | 2010 | 2009 | 2009 |
+---------------------------------------+------+-----------+-----------+----------+
| | | Unaudited | Unaudited | Audited |
+---------------------------------------+------+-----------+-----------+----------+
| | | GBP000 | GBP000 | GBP000 |
+---------------------------------------+------+-----------+-----------+----------+
| Assets | | | | |
+---------------------------------------+------+-----------+-----------+----------+
| Goodwill | | 4,618 | 5,138 | 4,638 |
+---------------------------------------+------+-----------+-----------+----------+
| Other intangible assets | | 1,697 | 1,960 | 1,881 |
+---------------------------------------+------+-----------+-----------+----------+
| Property, plant and equipment | | 1,729 | 1,784 | 1,731 |
+---------------------------------------+------+-----------+-----------+----------+
| Financial investments | 11 | 14,290 | 10,519 | 7,489 |
+---------------------------------------+------+-----------+-----------+----------+
| Trade and other receivables | 12 | 20,385 | 18,223 | 20,251 |
+---------------------------------------+------+-----------+-----------+----------+
| Cash and cash equivalents | 13 | 22,745 | 24,098 | 29,645 |
+---------------------------------------+------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+------+-----------+-----------+----------+
| Total assets | | 65,464 | 61,722 | 65,635 |
+---------------------------------------+------+-----------+-----------+----------+
| Liabilities | | | | |
+---------------------------------------+------+-----------+-----------+----------+
| Insurance contract provisions | 14 | 18,734 | 18,050 | 18,296 |
+---------------------------------------+------+-----------+-----------+----------+
| Financial liabilities | | - | 1,100 | 600 |
+---------------------------------------+------+-----------+-----------+----------+
| Finance lease obligations | | 269 | 265 | 199 |
+---------------------------------------+------+-----------+-----------+----------+
| Deferred tax liabilities | | 705 | 2,047 | 1,873 |
+---------------------------------------+------+-----------+-----------+----------+
| Current tax liabilities | | 2,503 | 1,637 | 1,477 |
+---------------------------------------+------+-----------+-----------+----------+
| Accruals and deferred income | 15 | 6,742 | 6,039 | 8,644 |
+---------------------------------------+------+-----------+-----------+----------+
| Trade and other payables | 16 | 12,663 | 12,023 | 12,146 |
+---------------------------------------+------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+------+-----------+-----------+----------+
| Total liabilities | | 41,616 | 41,161 | 43,235 |
+---------------------------------------+------+-----------+-----------+----------+
| Equity | | | | |
+---------------------------------------+------+-----------+-----------+----------+
| Share capital | | 1,000 | 1,000 | 1,000 |
+---------------------------------------+------+-----------+-----------+----------+
| Share premium | | 3,539 | 3,539 | 3,539 |
+---------------------------------------+------+-----------+-----------+----------+
| Own shares | | (298) | (298) | (298) |
+---------------------------------------+------+-----------+-----------+----------+
| Retained earnings | | 18,090 | 15,039 | 16,748 |
+---------------------------------------+------+-----------+-----------+----------+
| Merger reserves | | 282 | 282 | 282 |
+---------------------------------------+------+-----------+-----------+----------+
| Reverse takeover reserve | | 188 | 188 | 188 |
+---------------------------------------+------+-----------+-----------+----------+
| Capital redemption reserve | | 557 | 557 | 557 |
+---------------------------------------+------+-----------+-----------+----------+
| Equity settled share incentive | | 490 | 254 | 384 |
| reserve | | | | |
+---------------------------------------+------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+------+-----------+-----------+----------+
| Total shareholders' equity | | 23,848 | 20,561 | 22,400 |
+---------------------------------------+------+-----------+-----------+----------+
Consolidated statement of changes in equity
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| Unaudited for the 6 months ended 30 June 2010 |
+-----------------------------------------------------------------------------------------------------------------+
| | Share | Share | Merger | Equity | Capital | Reverse | Own | Retained | Total |
| | capital | premium | reserve | settled | redemption | takeover | shares | earnings | |
| | | | | share | reserve | reserve | | | |
| | | | | incentive | | | | | |
| | | | | reserve | | | | | |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| Shareholders' | 1,000 | 3,539 | 282 | 163 | 557 | 188 | (298) | 13,937 | 19,368 |
| equity at 1 | | | | | | | | | |
| January 2009 | | | | | | | | | |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| Equity settled | - | - | - | 91 | - | - | - | - | 91 |
| share-based | | | | | | | | | |
| payments | | | | | | | | | |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| Ordinary | - | - | - | - | - | - | - | (1,984) | (1,984) |
| dividend paid | | | | | | | | | |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| Profit for the | - | - | - | - | - | - | - | 3,086 | 3,086 |
| year | | | | | | | | | |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| Shareholders' | 1,000 | 3,539 | 282 | 254 | 557 | 188 | (298) | 15,039 | 20,561 |
| equity at 30 | | | | | | | | | |
| June 2009 | | | | | | | | | |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| Equity settled | - | - | - | 130 | - | - | - | - | 130 |
| share-based | | | | | | | | | |
| payments | | | | | | | | | |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| Ordinary | - | - | - | - | - | - | - | (1,588) | (1,588) |
| dividend paid | | | | | | | | | |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| Profit for the | - | - | - | - | - | - | - | 3,297 | 3,297 |
| year | | | | | | | | | |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| Shareholders' | 1,000 | 3,539 | 282 | 384 | 557 | 188 | (298) | 16,748 | 22,400 |
| equity at 31 | | | | | | | | | |
| December 2009 | | | | | | | | | |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| Equity settled | - | - | - | 106 | - | - | - | 10 | 116 |
| share-based | | | | | | | | | |
| payments | | | | | | | | | |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| Ordinary | - | - | - | - | - | - | - | (2,084) | (2,084) |
| dividend paid | | | | | | | | | |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| Profit for the | - | - | - | - | - | - | - | 3,416 | 3,416 |
| year | | | | | | | | | |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
| Shareholders' | 1,000 | 3,539 | 282 | 490 | 557 | 188 | (298) | 18,090 | 23,848 |
| equity at 30 | | | | | | | | | |
| June 2010 | | | | | | | | | |
+-----------------+---------+---------+---------+-----------+------------+----------+--------+----------+---------+
Consolidated cash flow statement
+---------------------------------------+------------+-----------+----------+
| Unaudited for the 6 months ended 30 June 2010 |
+---------------------------------------------------------------------------+
| | 6 months | 6 months | Year |
| | ended | ended | ended |
| | 30 June | 30 June | 31 Dec |
| | 2010 | 2009 | 2009 |
+---------------------------------------+------------+-----------+----------+
| | Unaudited | Unaudited | Audited |
+---------------------------------------+------------+-----------+----------+
| | GBP000 | GBP000 | GBP000 |
+---------------------------------------+------------+-----------+----------+
| Profit before tax | 4,745 | 4,275 | 8,745 |
+---------------------------------------+------------+-----------+----------+
| Adjusted for: | | | |
+---------------------------------------+------------+-----------+----------+
| Interest receivable | (215) | (360) | (548) |
+---------------------------------------+------------+-----------+----------+
| Profit on disposal of assets | - | (22) | (41) |
+---------------------------------------+------------+-----------+----------+
| Amortisation of intangible assets | 207 | 197 | 403 |
+---------------------------------------+------------+-----------+----------+
| Depreciation of property, plant and | 147 | 154 | 318 |
| equipment | | | |
+---------------------------------------+------------+-----------+----------+
| Equity settled share-based payments | 116 | 91 | 221 |
+---------------------------------------+------------+-----------+----------+
| (Increase)/decrease in receivables | (25) | 333 | (1,825) |
+---------------------------------------+------------+-----------+----------+
| (Decrease)/increase in payables | (877) | (763) | 2,184 |
+---------------------------------------+------------+-----------+----------+
| Cash generated by operations | 4,098 | 3,905 | 9,457 |
+---------------------------------------+------------+-----------+----------+
| Interest received | 106 | 480 | 798 |
+---------------------------------------+------------+-----------+----------+
| Tax paid | (1,471) | (1,079) | (2,586) |
+---------------------------------------+------------+-----------+----------+
| Net cash from operating activities | 2,733 | 3,306 | 7,669 |
+---------------------------------------+------------+-----------+----------+
| Investing activities | | | |
+---------------------------------------+------------+-----------+----------+
| (Purchase)/sale of financial | (6,801) | (2,307) | 723 |
| investments | | | |
+---------------------------------------+------------+-----------+----------+
| Purchases of intangible assets | (23) | (81) | (208) |
+---------------------------------------+------------+-----------+----------+
| Purchases of property, plant and | (145) | (255) | (386) |
| equipment | | | |
+---------------------------------------+------------+-----------+----------+
| Acquisition of subsidiary | (580) | - | - |
+---------------------------------------+------------+-----------+----------+
| Net cash (used in)/from investing | (7,549) | (2,643) | 129 |
| activities | | | |
+---------------------------------------+------------+-----------+----------+
| Financing activities | | | |
+---------------------------------------+------------+-----------+----------+
| Equity dividend paid | (2,084) | (1,984) | (3,572) |
+---------------------------------------+------------+-----------+----------+
| Net cash used in financing activities | (2,084) | (1,984) | (3,572) |
+---------------------------------------+------------+-----------+----------+
| Net (decrease)/increase in cash and | (6,900) | (1,321) | 4,226 |
| cash equivalents | | | |
+---------------------------------------+------------+-----------+----------+
| Cash and cash equivalents at | 29,645 | 25,419 | 25,419 |
| beginning of the period | | | |
+---------------------------------------+------------+-----------+----------+
| Cash and cash equivalents at the end | 22,745 | 24,098 | 29,645 |
| of the period | | | |
+---------------------------------------+------------+-----------+----------+
Notes to the financial statements
1 Basis of preparation
The consolidated financial information contained within these financial
statements is unaudited and does not constitute statutory accounts within the
meaning of Section 434 of the Companies Act 2006. The statutory accounts for the
year ended 31 December 2009, which were prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European
Union (EU) and in accordance with International Financial Reporting
Interpretations Committee (IFRIC) interpretations and with those parts of the
Companies Act 2006 applicable to companies reporting under IFRS, have been
delivered to the Registrar of Companies. The report of the independent auditor
on those statutory accounts contained no qualification or statement under
Section 498(2) or (3) of the Companies Act 2006.
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 2009. Although these estimates are based on managements 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 2009.
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: Abbey Legal Protection, Abbey
Tax Protection, Accountax and Insurance Underwriting. 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. Insurance Underwriting
comprises reinsuring a proportion of the business Abbey Protection plc
introduces to underwriting partners.
Other segments represent business units whose operations fall below the
quantitative disclosure thresholds. These businesses offer human resources
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 applied throughout these financial statements. Abbey
Protection plc evaluates performance on the basis of profit from operations
before tax expense.
+---------------------+------------+------------+-----------+--------------+----------+---------+
| 6 months ended 30 June 2010 - Unaudited |
+-----------------------------------------------------------------------------------------------+
| | Abbey | Abbey |Accountax | Insurance | Other | Total |
| | Legal | Tax | |Underwriting |segments | |
| |Protection |Protection | | | | |
+---------------------+------------+------------+-----------+--------------+----------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------+------------+------------+-----------+--------------+----------+---------+
| Revenue from | 4,657 | 3,428 | 1,084 | 6,780 | 1,069 | 17,018 |
| external customers | | | | | | |
+---------------------+------------+------------+-----------+--------------+----------+---------+
| Interest revenue | 39 | 28 | 7 | 182 | 8 | 264 |
+---------------------+------------+------------+-----------+--------------+----------+---------+
| Depreciation and | 98 | 40 | 177 | - | 39 | 354 |
| amortisation | | | | | | |
+---------------------+------------+------------+-----------+--------------+----------+---------+
| Reportable segment | 975 | 1,302 | 156 | 2,125 | 187 | 4,745 |
| profit | | | | | | |
+---------------------+------------+------------+-----------+--------------+----------+---------+
| Expenditures for | 34 | 58 | 2 | - | 74 | 168 |
| reportable segment | | | | | | |
| non-current assets | | | | | | |
+---------------------+------------+------------+-----------+--------------+----------+---------+
+---------------------+------------+------------+-----------+--------------+----------+--------+
| 6 months ended 30 June 2009 - Unaudited |
+----------------------------------------------------------------------------------------------+
| | Abbey | Abbey |Accountax | Insurance | Other | Total |
| | Legal | Tax | |Underwriting |segments | |
| |Protection |Protection | | | | |
+---------------------+------------+------------+-----------+--------------+----------+--------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------+------------+------------+-----------+--------------+----------+--------+
| Revenue from | 4,326 | 3,022 | 1,090 | 6,475 | 1,177 | 16,090 |
| external customers | | | | | | |
+---------------------+------------+------------+-----------+--------------+----------+--------+
| Interest revenue | 13 | 8 | - | 275 | 5 | 301 |
+---------------------+------------+------------+-----------+--------------+----------+--------+
| Depreciation and | 92 | 26 | 183 | - | 50 | 351 |
| amortisation | | | | | | |
+---------------------+------------+------------+-----------+--------------+----------+--------+
| Reportable segment | 759 | 1,168 | 128 | 1,907 | 313 | 4,275 |
| profit | | | | | | |
+---------------------+------------+------------+-----------+--------------+----------+--------+
| Expenditures for | 181 | 83 | 16 | - | 56 | 336 |
| reportable segment | | | | | | |
| non-current assets | | | | | | |
+---------------------+------------+------------+-----------+--------------+----------+--------+
| Year ended 31 December 2009 - Audited |
+----------------------------------------------------------------------------------------------+
| | Abbey | Abbey |Accountax | Insurance | Other | Total |
| | Legal | Tax | |Underwriting |segments | |
| |Protection |Protection | | | | |
+---------------------+------------+------------+-----------+--------------+----------+--------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------+------------+------------+-----------+--------------+----------+--------+
| Revenue from | 9,061 | 6,105 | 2,069 | 13,172 | 2,079 | 32,486 |
| external customers | | | | | | |
+---------------------+------------+------------+-----------+--------------+----------+--------+
| Interest revenue | 30 | 23 | 6 | 388 | 12 | 459 |
+---------------------+------------+------------+-----------+--------------+----------+--------+
| Depreciation and | 194 | 82 | 368 | - | 77 | 721 |
| amortisation | | | | | | |
+---------------------+------------+------------+-----------+--------------+----------+--------+
| Reportable segment | 1,946 | 2,213 | 123 | 4,141 | 322 | 8,745 |
| profit | | | | | | |
+---------------------+------------+------------+-----------+--------------+----------+--------+
| Expenditures for | 317 | 142 | 46 | - | 89 | 594 |
| reportable segment | | | | | | |
| non-current assets | | | | | | |
+---------------------+------------+------------+-----------+--------------+----------+--------+
Information about major customers - Unaudited
Revenues from one customer represent approximately GBP2,659,000 of the Group's
total revenue (6 months ended 30 June 2009 GBP2,568,000 and 12 months ended 31
December 2009 GBP5,182,000). 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 | ended |
| | 30 June | 30 June | 31 Dec |
| | 2010 | 2009 | 2009 |
+---------------------------------------+------------+------------+----------+
| | Unaudited | Unaudited | Audited |
+---------------------------------------+------------+------------+----------+
| | GBP000 | GBP000 | GBP000 |
+---------------------------------------+------------+------------+----------+
| | | | |
+---------------------------------------+------------+------------+----------+
| Income from intermediation | 4,259 | 4,010 | 8,217 |
+---------------------------------------+------------+------------+----------+
| Advisory fees | 2,210 | 2,082 | 4,194 |
+---------------------------------------+------------+------------+----------+
| Other income | 3,769 | 3,523 | 6,903 |
+---------------------------------------+------------+------------+----------+
| Total intermediary, advisory and | 10,238 | 9,615 | 19,314 |
| other income | | | |
+---------------------------------------+------------+------------+----------+
| | | | |
+---------------------------------------+------------+------------+----------+
| Other income comprises consultancy, claims handling, marketing services |
| 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 30 | ended 30 | ended |
| | June 2010 | June 2009 | 31 Dec |
| | | | 2009 |
+-----------------------------------------+-----------+------------+----------+
| | Unaudited | Unaudited | Audited |
+-----------------------------------------+-----------+------------+----------+
| | GBP000 | GBP000 | GBP000 |
+-----------------------------------------+-----------+------------+----------+
| Investments at fair value through | | | |
| Income Statement: | | | |
+-----------------------------------------+-----------+------------+----------+
| - certificates of deposit | 99 | 177 | 463 |
+-----------------------------------------+-----------+------------+----------+
| Other investments: | | | |
+-----------------------------------------+-----------+------------+----------+
| - cash and cash equivalents income | 116 | 183 | 85 |
+-----------------------------------------+-----------+------------+----------+
| Interest investment income | 215 | 360 | 548 |
+-----------------------------------------+-----------+------------+----------+
| Net gains/(losses) on investments at | 49 | (59) | (89) |
| fair value through the Income Statement | | | |
+-----------------------------------------+-----------+------------+----------+
| Net investment return | 264 | 301 | 459 |
+-----------------------------------------+-----------+------------+----------+
6 Claims and change in insurance liabilities (gross and net)
+-----------------------------------------+-----------+------------+----------+
| | 6 months | 6 months | Year |
| | ended 30 | ended | ended |
| | June 2010 | 30 June | 31 Dec |
| | | 2009 | 2009 |
+-----------------------------------------+-----------+------------+----------+
| | Unaudited | Unaudited | Audited |
+-----------------------------------------+-----------+------------+----------+
| | GBP000 | GBP000 | GBP000 |
+-----------------------------------------+-----------+------------+----------+
| Claims paid | (4,299) | (3,473) | (7,443) |
+-----------------------------------------+-----------+------------+----------+
| Change in the provision for claims | 9 | (910) | (885) |
+-----------------------------------------+-----------+------------+----------+
| Claims and change in insurance | (4,290) | (4,383) | (8,328) |
| liabilities | | | |
+-----------------------------------------+-----------+------------+----------+
7 Operating and administration expenses
+-----------------------------------------+-----------+------------+----------+
| | 6 months | 6 months | Year |
| | ended 30 | ended 30 | ended |
| | June 2010 | June 2009 | 31 Dec |
| | | | 2009 |
+-----------------------------------------+-----------+------------+----------+
| | Unaudited | Unaudited | Audited |
+-----------------------------------------+-----------+------------+----------+
| | GBP000 | GBP000 | GBP000 |
+-----------------------------------------+-----------+------------+----------+
| Staff costs | 5,283 | 4,964 | 10,100 |
+-----------------------------------------+-----------+------------+----------+
| Other operating expenses | 2,483 | 2,366 | 4,806 |
+-----------------------------------------+-----------+------------+----------+
| Total operating and administration | 7,766 | 7,330 | 14,906 |
| expenses | | | |
+-----------------------------------------+-----------+------------+----------+
8 Tax expense
Income tax for the six months period is charged at 28.0% (six months ended 30
June 2009: 27.8%; year ended 31 December 2009: 27.0%), 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 30 | ended 30 | ended |
| | June 2010 | June 2009 | 31 Dec |
| | | | 2009 |
+-----------------------------------------+-----------+------------+----------+
| | Unaudited | Unaudited | Audited |
+-----------------------------------------+-----------+------------+----------+
| | GBP000 | GBP000 | GBP000 |
+-----------------------------------------+-----------+------------+----------+
| | | | |
+-----------------------------------------+-----------+------------+----------+
| Amounts recognised as distributions to | | | |
| equity holders in the period: | | | |
+-----------------------------------------+-----------+------------+----------+
| | | | |
+-----------------------------------------+-----------+------------+----------+
| Dividends on ordinary shares | 2,084 | 1,984 | 3,572 |
+-----------------------------------------+-----------+------------+----------+
| Net appropriation for the year | 2,084 | 1,984 | 3,572 |
+-----------------------------------------+-----------+------------+----------+
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.
On 7 October 2009 a dividend of GBP1,588,000 (net of GBP12,000 receivable by a
group ESOP trust) was paid representing 1.6 pence per Abbey Protection plc
share.
On 26 March 2010 a dividend of GBP2,084,000 (net of GBP16,000 receivable by a
group ESOP trust) was paid representing 2.1 pence per Abbey Protection plc
share.
The Board declares the payment of an interim dividend of 1.7p per Abbey
Protection plc ordinary share amounting to GBP1,700,000. The dividend will be
payable on 7 October 2010 to all shareholders on the register on 10 September
2010. 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 months | 6 months | Year |
| | ended 30 | ended 30 | ended |
| | June 2010 | June 2009 | 31 Dec |
| | | | 2009 |
+-----------------------------------------+-----------+------------+----------+
| | Unaudited | Unaudited | Audited |
+-----------------------------------------+-----------+------------+----------+
| | GBP000 | GBP000 | GBP000 |
+-----------------------------------------+-----------+------------+----------+
| Profit attributable to equity holders | 3,416 | 3,086 | 6,383 |
| of the parent | | | |
+-----------------------------------------+-----------+------------+----------+
| Effect of dilutive potential ordinary | - | - | - |
| shares | | | |
+-----------------------------------------+-----------+------------+----------+
| Earnings for the purposes of diluted | 3,416 | 3,086 | 6,383 |
| earnings per share | | | |
+-----------------------------------------+-----------+------------+----------+
+-----------------------------------------+-------------+-------------+-------------+
| | 6 months | 6 months | Year |
| | ended 30 | ended 30 | ended |
| | June 2010 | June 2009 | 31 Dec |
| | | | 2009 |
+-----------------------------------------+-------------+-------------+-------------+
| | Unaudited | Unaudited | Audited |
+-----------------------------------------+-------------+-------------+-------------+
| | No. of | No. of | No. of |
| | shares | shares | shares |
+-----------------------------------------+-------------+-------------+-------------+
| Weighted average number of ordinary | 99,231,375 | 99,231,375 | 99,231,375 |
| shares in issue | | | |
+-----------------------------------------+-------------+-------------+-------------+
| Effect of dilutive potential ordinary | 1,373,738 | 1,089,107 | 1,175,564 |
| shares (share options) | | | |
+-----------------------------------------+-------------+-------------+-------------+
| | | | |
+-----------------------------------------+-------------+-------------+-------------+
| Weighted average number of ordinary | 100,605,113 | 100,320,482 | 100,406,939 |
| shares for the purposes of diluted | | | |
| earnings per share | | | |
+-----------------------------------------+-------------+-------------+-------------+
11 Financial investments
+-----------------------------------------+-----------+------------+----------+
| Financial investments at fair value through profit | | |
| and loss | | |
+-----------------------------------------------------+------------+----------+
| | 6 months | 6 months | Year |
| | ended 30 | ended 30 | ended |
| | June 2010 | June 2009 | 31 Dec |
| | | | 2009 |
+-----------------------------------------+-----------+------------+----------+
| | Unaudited | Unaudited | Audited |
+-----------------------------------------+-----------+------------+----------+
| | GBP000 | GBP000 | GBP000 |
+-----------------------------------------+-----------+------------+----------+
| Certificates of deposit | 14,290 | 10,519 | 7,489 |
+-----------------------------------------+-----------+------------+----------+
| 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
+----------------------------------------+-----------+------------+----------+
| | 30 June | 30 June | 31 Dec |
| | 2010 | 2009 | 2009 |
+----------------------------------------+-----------+------------+----------+
| | Unaudited | Unaudited | Audited |
+----------------------------------------+-----------+------------+----------+
| | GBP000 | GBP000 | GBP000 |
+----------------------------------------+-----------+------------+----------+
| Receivables arising from insurance and | | | |
| reinsurance contracts: | | | |
+----------------------------------------+-----------+------------+----------+
| - premiums due from insurers | 5,991 | 5,844 | 5,286 |
+----------------------------------------+-----------+------------+----------+
| - trade debtors | 12,235 | 9,724 | 12,895 |
+----------------------------------------+-----------+------------+----------+
| Other receivables: | | | |
+----------------------------------------+-----------+------------+----------+
| - other prepayments and accrued income | 1,045 | 1,324 | 875 |
+----------------------------------------+-----------+------------+----------+
| - amounts due from related parties | 709 | 867 | 799 |
+----------------------------------------+-----------+------------+----------+
| - other debtors | 405 | 464 | 396 |
+----------------------------------------+-----------+------------+----------+
| Total insurance and other receivables | 20,385 | 18,223 | 20,251 |
+----------------------------------------+-----------+------------+----------+
| | | | |
+----------------------------------------+-----------+------------+----------+
| Due within one year | 20,385 | 18,223 | 20,251 |
+----------------------------------------+-----------+------------+----------+
| The directors consider that the carrying amount of trade and other |
| receivables approximates their fair value. |
+----------------------------------------+-----------+------------+----------+
13 Cash and cash equivalents
Included in cash and cash equivalents held by the Group as at each period end
are balances totalling GBP1m not available for use by the Group. This amount is
held in trust to guarantee claims liabilities. Additionally, as at 30 June 2009
and 31 December 2009 GBP1.1m was held in escrow to guarantee deferred
acquisition consideration.
14 Insurance contract provisions (gross and net)
+--------------------------------------------+-----------+-----------+----------+
| | 30 June | 30 June | 31 Dec |
| | 2010 | 2009 | 2009 |
+--------------------------------------------+-----------+-----------+----------+
| | Unaudited | Unaudited | Audited |
+--------------------------------------------+-----------+-----------+----------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------+-----------+-----------+----------+
| Unearned premiums | 7,755 | 7,037 | 7,308 |
+--------------------------------------------+-----------+-----------+----------+
| Claims reported by policyholders | 6,403 | 6,097 | 6,026 |
+--------------------------------------------+-----------+-----------+----------+
| Claims incurred but not reported | 4,576 | 4,916 | 4,962 |
+--------------------------------------------+-----------+-----------+----------+
| Total insurance contract provisions | 18,734 | 18,050 | 18,296 |
+--------------------------------------------+-----------+-----------+----------+
15 Accruals and deferred income
+-------------------------------------------+-----------+-----------+----------+
| | 30 June | 30 June | 31 Dec |
| | 2010 | 2009 | 2009 |
+-------------------------------------------+-----------+-----------+----------+
| | Unaudited | Unaudited | Audited |
+-------------------------------------------+-----------+-----------+----------+
| | GBP000 | GBP000 | GBP000 |
+-------------------------------------------+-----------+-----------+----------+
| Accruals | 1,434 | 1,345 | 1,781 |
+-------------------------------------------+-----------+-----------+----------+
| Deferred income | 5,308 | 4,694 | 6,863 |
+-------------------------------------------+-----------+-----------+----------+
| Total accruals and deferred income | 6,742 | 6,039 | 8,644 |
+-------------------------------------------+-----------+-----------+----------+
16 Trade and other payables
+--------------------------------------------+-----------+-----------+----------+
| | 30 June | 30 June | 31 Dec |
| | 2010 | 2009 | 2009 |
+--------------------------------------------+-----------+-----------+----------+
| | Unaudited | Unaudited | Audited |
+--------------------------------------------+-----------+-----------+----------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------+-----------+-----------+----------+
| Other trade payables | 11,610 | 10,922 | 11,040 |
+--------------------------------------------+-----------+-----------+----------+
| Other taxes and social security | 619 | 579 | 640 |
+--------------------------------------------+-----------+-----------+----------+
| Other payables | 434 | 522 | 466 |
+--------------------------------------------+-----------+-----------+----------+
| Total trade and other payables | 12,663 | 12,023 | 12,146 |
+--------------------------------------------+-----------+-----------+----------+
| | | | |
+--------------------------------------------+-----------+-----------+----------+
| Trade and other payables are all expected to be settled within twelve |
| months of the balance sheet date. |
+--------------------------------------------+-----------+-----------+----------+
17 Share option schemes
Options granted
As at 30 June 2010, share options were outstanding as set out below:
+------------------------+------------+------------+------------+------------+
| | SAYE | SAYE | SAYE | |
+------------------------+------------+------------+------------+------------+
| Date of grant |20/12/2007 |24/07/2008 |27/05/2010 | |
+------------------------+------------+------------+------------+------------+
| Number of options | 815,099 | 76,454 | 232,273 | |
| granted | | | | |
+------------------------+------------+------------+------------+------------+
| Exercise price | GBP0.44 | GBP0.536 | GBP0.636 | |
+------------------------+------------+------------+------------+------------+
| Share price at date of | GBP0.61 | GBP0.67 | GBP0.785 | |
| grant | | | | |
+------------------------+------------+------------+------------+------------+
| Contractual life | 3.5 | 3.5 | 3.5 | |
| (years) | | | | |
+------------------------+------------+------------+------------+------------+
| Vesting Date |01/01/2011 |01/09/2011 |01/07/2013 | |
+------------------------+------------+------------+------------+------------+
| Settlement | Shares | Shares | Shares | |
+------------------------+------------+------------+------------+------------+
| Expected volatility | 35% | 35% | 20% | |
+------------------------+------------+------------+------------+------------+
| Expected option life | Three | Three | Three | |
| at date of grant | Years | Years | Years | |
+------------------------+------------+------------+------------+------------+
| Risk free interest | 5.00% | 5.00% | 1.30% | |
| rate | | | | |
+------------------------+------------+------------+------------+------------+
| Expected dividend | 5.00% | 5.00% | 5.00% | |
| yield | | | | |
+------------------------+------------+------------+------------+------------+
| Expected annual | 5.00% | 3.00% | 0.00% | |
| departures | | | | |
+------------------------+------------+------------+------------+------------+
| Probability of meeting | 100% | 100% | 100% | |
| performance criteria | | | | |
| at date of grant | | | | |
+------------------------+------------+------------+------------+------------+
| Fair value per option | GBP0.20 | GBP0.197 | GBP0.125 | |
| at date of grant | | | | |
+------------------------+------------+------------+------------+------------+
| Valuation model | Binomial | Binomial | Binomial | |
+------------------------+------------+------------+------------+------------+
| Total fair value |GBP138,567 | GBP13,718 | GBP29,034 | |
+------------------------+------------+------------+------------+------------+
| | | | | |
+------------------------+------------+------------+------------+------------+
| | CSOP | CSOP | CSOP | CSOP |
+------------------------+------------+------------+------------+------------+
| Date of grant |29/11/2007 |27/06/2008 |29/04/2009 |30/04/2010 |
+------------------------+------------+------------+------------+------------+
| Number of options | 381,815 | 30,000 | 51,724 | 37,735 |
| granted | | | | |
+------------------------+------------+------------+------------+------------+
| Exercise price | GBP0.55 | GBP0.67 | GBP0.58 | GBP0.795 |
+------------------------+------------+------------+------------+------------+
| Share price at date of | GBP0.55 | GBP0.67 | GBP0.58 | GBP0.795 |
| grant | | | | |
+------------------------+------------+------------+------------+------------+
| Contractual life | 10 | 10 | 10 | 10 |
| (years) | | | | |
+------------------------+------------+------------+------------+------------+
| Vesting Date |30/11/2010 |30/06/2011 |30/04/2012 |01/05/2013 |
+------------------------+------------+------------+------------+------------+
| Settlement | Shares | Shares | Shares | Shares |
+------------------------+------------+------------+------------+------------+
| Expected volatility | 35% | 35% | 35% | 20% |
+------------------------+------------+------------+------------+------------+
| Expected option life | Three | Three | Three | Three |
| at date of grant | Years | Years | Years | Years |
+------------------------+------------+------------+------------+------------+
+------------------------+------------+------------+------------+------------+
| Risk free interest | 5.00% | 5.00% | 2.00% | 3.50% |
| rate | | | | |
+------------------------+------------+------------+------------+------------+
| Expected dividend | 5.00% | 5.00% | 6.20% | 6.20% |
| yield | | | | |
+------------------------+------------+------------+------------+------------+
| Expected annual | 0.00% | 0.00% | 0.00% | 0.00% |
| departures | | | | |
+------------------------+------------+------------+------------+------------+
| Probability of meeting | 100% | 100% | 100% | 100% |
| performance criteria | | | | |
| at date of grant | | | | |
+------------------------+------------+------------+------------+------------+
| Fair value per option | GBP0.20 | GBP0.20 | GBP0.13 | GBP0.12 |
| at date of grant | | | | |
+------------------------+------------+------------+------------+------------+
| Valuation model | Binomial | Binomial | Binomial | Binomial |
+------------------------+------------+------------+------------+------------+
| Total fair value | GBP76,745 | GBP6,120 | GBP6,737 | GBP4,490 |
+------------------------+------------+------------+------------+------------+
+------------------------+------------+------------+------------+------------+
| | LTIP | LTIP | LTIP | LTIP |
+------------------------+------------+------------+------------+------------+
| Date of grant |29/11/2007 |27/06/2008 |29/04/2009 |30/04/2010 |
+------------------------+------------+------------+------------+------------+
| Number of options | 363,636 | 150,000 | 330,437 | 146,666 |
| granted | | | | |
+------------------------+------------+------------+------------+------------+
| Exercise price | GBP0.00 | GBP0.00 | GBP0.00 | GBP0.00 |
+------------------------+------------+------------+------------+------------+
| Share price at date of | GBP0.55 | GBP0.67 | GBP0.58 | GBP0.795 |
| grant | | | | |
+------------------------+------------+------------+------------+------------+
| Contractual life | 10 | 10 | 10 | 10 |
| (years) | | | | |
+------------------------+------------+------------+------------+------------+
| Vesting Date |01/01/2011 |30/06/2011 |30/04/2012 |01/05/2013 |
+------------------------+------------+------------+------------+------------+
| Settlement | Shares | Shares | Shares | Shares |
+------------------------+------------+------------+------------+------------+
| Expected volatility | 35% | 35% | 35% | 20% |
+------------------------+------------+------------+------------+------------+
| Expected option life | Three | Three | Three | Three |
| at date of grant | Years | Years | Years | Years |
+------------------------+------------+------------+------------+------------+
| Risk free interest | 5.00% | 5.00% | 2.00% | 3.50% |
| rate | | | | |
+------------------------+------------+------------+------------+------------+
| Expected dividend | 5.00% | 5.00% | 6.20% | 5.00% |
| yield | | | | |
+------------------------+------------+------------+------------+------------+
| Expected annual | 0.00% | 0.00% | 0.00% | 0.00% |
| departures | | | | |
+------------------------+------------+------------+------------+------------+
| Probability of meeting | 100% | 75% | 89.5% | 96.8% |
| performance criteria | | | | |
| at date of grant | | | | |
+------------------------+------------+------------+------------+------------+
| Fair value per option | GBP0.52 | GBP0.58 | GBP0.48 | GBP0.68 |
| at date of grant | | | | |
+------------------------+------------+------------+------------+------------+
| Valuation model | Binomial | Binomial | Binomial | Binomial |
+------------------------+------------+------------+------------+------------+
| Total fair value |GBP190,182 | GBP64,913 |GBP142,508 | GBP97,109 |
+------------------------+------------+------------+------------+------------+
All share options require a minimum of three 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 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
IR EFLFBBKFFBBK
Abbey Protection (LSE:ABB)
Historical Stock Chart
From May 2024 to Jun 2024
Abbey Protection (LSE:ABB)
Historical Stock Chart
From Jun 2023 to Jun 2024
