RNS Number:7471V
Birse Group PLC
16 December 2005
Date: Embargoed until 7.00am 16 December 2005
Contact: Peter Watson, Chairman Telephone: 01302 768078
Martin Budden, Group Managing Director
Gerry Roche, Group Finance Director
Birse Group plc
Sally Lewis Telephone: 0207 269 7224
Financial Dynamics
BIRSE GROUP plc - INTERIM ANNOUNCEMENT SIX MONTHS ENDED 31/10/05
Highlights:-
* Citibank Litigation settled in the period thereby removing the risk and
uncertainty associated with that process.
* The sale of the business and certain assets of The Cabin Company was
completed on 9 May 2005 realising net proceeds of #5.3million and a
profit on disposal of #1.2million.
* Net cash inflows from operations #2.8million (2004: an outflow of
#16.8million).
* Net debt down from #14.4million at 30 April 2005 to #8.4million.
* Prospects for advances in the second half are encouraging with major
contract starts and other productivity increases underway in our
ongoing operations.
* Interim dividend maintained at 0.375p per share.
"Improving market conditions in all areas of our ongoing operations, our ability
to increase market share in those markets based upon a customer focused approach
and the prospect of eliminating losses from the curtailed Birse Build business
by the end of the next financial year all combine to add further stimulus and
substance to the Group's underlying forward momentum."
M Budden P G Watson
REPORT OF THE DIRECTORS
On the results for the six months ended 31 October 2005
Summary of Results
A summary of the results for the period analysed between ongoing operations and
curtailed businesses is set out in the table below:-
Ongoing Curtailed
operations businesses Total
#'000 #'000 #'000
Engineering:
Civil Engineering 2,531 - 2,531
Process Engineering (95) - (95)
Construction:
Building 200 (7,327) (7,127)
Plant Hire 140 1,250 1,390
Commercial Property - 54 54
Group Centre (431) - (431)
2,345 (6,023) (3,678)
Exceptional Operating Item:
Construction: Building - (5,753) (5,753)
Operating Result 2,345 (11,776) (9,431)
Interest Receivable 70
Finance Costs (562)
Reported result for the period before taxation (9,923)
Notes:
1. Curtailed businesses comprise in the case of Building those divisions
that are in the process of being closed down as part of the restructuring of
Birse Build Limited, in the case of Plant Hire, The Cabin Company Limited whose
business together with certain assets was sold on 9 May 2005 and in the case of
Commercial Property, Birse Properties Limited whose only remaining income
streams relate to contingent consideration arising in respect of contracted
sales in prior years.
2. The exceptional operating item comprises the settlement of the
Citibank Litigation (#3.2million) and the legal and associated costs incurred in
the period (#2.5million). The contract giving rise to this litigation was
awarded to one of the divisions of Birse Build Limited that is now in the
process of being closed down.
The summary of results set out above highlights the significant effect on the
Group's financial performance consequent upon the restructuring of Birse Build
and the Citibank Litigation. Operating losses relating to the curtailed
businesses in the period amount to #11.8million compared with #5.1million for
the corresponding period last year. The size of these losses mask the
underlying profitability of our ongoing operations. Although operating profits
in those businesses fell from #5.9million in the six months ended 31 October
2004 to #2.3million, this was largely due to cyclical factors suppressing demand
in those markets exposed to regulatory control and similar influences. With
workloads in those areas already on the increase prospects for the second half
remain ahead of the corresponding period in 2004/2005.
Combining the results of the curtailed businesses and ongoing operations gives
rise to a consolidated operating loss of #9.4million (2004/2005: operating
profit of #851,000). The deterioration from last year is mainly accounted for
by the settlement of the Citibank Litigation and associated costs (#4.5million)
and increased losses, including under-recoveries of contractual amounts,
associated with the restructuring of Birse Build (#2.5million) in the curtailed
businesses. In the ongoing operations profits from the Engineering businesses
fell by #3.1million. This included an abnormally high volume of Rail work
undertaken in the first half of 2004/2005 that cannot be expected to recur and
suppressed demand in the Water sector arising from the cyclical impact of
regulatory price reviews.
Net debt at 31 October 2005 fell to #8.4million from #14.4million at 30 April
2005 as the Group benefited from the inflow of funds arising from the sale of
the business and certain assets of The Cabin Company.
Ongoing Operations
Six months ended 31 October Year ended
2005 2004 30 April 2005
Turnover Operating Turnover Operating Turnover Operating
profit profit profit
#'000 #'000 #'000 #'000 #'000 #'000
Engineering:
Civil Engineering 125,092 2,531 126,331 5,616 231,555 8,485
Process Engineering 11,483 (95) 20,497 5 40,265 1,165
Construction:
Building 11,459 200 17,040 200 28,456 500
Plant Hire 1,788 140 2,204 559 3,743 470
Group Centre - (431) - (497) - (1,041)
149,822 2,345 166,072 5,883 304,019 9,579
In the year ended 30 April 2005 activity and profits were first half biased
largely as a result of the downturn of workload in the second half in the Rail
sector (due to framework contract renewals), and the Water sector (due to the
cyclical effects of regulatory price reviews) and changing customer procurement
practices in other infrastructure sectors. With the assessment of potential
framework contractors by Network Rail (Birse Rail was awarded two frameworks)
and the Water regulatory reviews now complete activity levels in those two
sectors are on the increase. Likewise in respect of other areas of the
infrastructure market, major contracts awarded on an early contractor
involvement basis are now emerging from the design and planning phases and
entering the production phase. Consequently, activity levels and profits in the
current year are expected to be second half biased.
Engineering: Civil Engineering
The Group's civil engineering activities are undertaken by Birse Civils Limited,
Birse Metro Limited (a dedicated London Underground business) and Birse Rail
Limited.
We have previously reported that the vast majority of activity undertaken by
Birse Civils relates either to framework or early contractor involvement type
contracts. Both forms of working arrangements engage the contractor at the
initiation or concept stage of the project. In 2004/2005 Birse Civils' resources
were engaged on the early phases of these type of projects mainly the design and
planning elements. That upfront investment is now coming to fruition as those
projects collectively moved onto the production phase, gradually building up in
the first half with optimum levels of production expected to result in the
second half and thereafter.
Levels of production anticipated by Birse Civils indicate that it's previously
reported record order book levels will be reflected in record turnover levels.
This is at a time when the general infrastructure market has been in decline for
the last three years, clear evidence that Birse Civils' value added customer
focused approach is leading to increased market share. With demand in the
infrastructure market expected to increase over the next few years, Birse Civils
is well placed to continue this growth. At 31 October 2005 Birse Civils' order
book stood at #265million compared with #233million at 31 October 2004.
Birse Metro operates exclusively in the London Underground environment working
for Tubelines and Metronet ("the Infracos") and London Underground. In 2004/
2005 demand and market opportunities in this sector were at an all time low. It
was only in the last three months of that financial year that Birse Metro traded
at a breakeven level as order intakes and production increased, albeit modestly.
That improving trend has continued into the current year. Although the period
between an enquiry for work and work commencing remains abnormally long compared
to other sectors of the market, the timetable for the delivery of station and
facility upgrades is immovable. Prospects for further opportunities were
enhanced when Birse Metro was one of three companies selected by London
Underground to undertake work outside the programme of work for which the
Infracos will be responsible. Given the specialised nature of this market place
and the latent demand Birse Metro is in a good position to progress forward from
what at present is a relatively low level trading base.
Following the award by Network Rail of two five year framework contracts in
February 2005 Birse Rail's focus in the first half has been upon embedding the
processes, procedures and organisational infrastructures needed to deliver the
programme of works determined by the customer under those arrangements.
Implementation has gone according to plan with Birse Rail in a solid position to
deliver the higher level production outputs that Network Rail have targeted for
the second half. It still remains Network Rail's stated intention to introduce
more competition for work let outside its framework contracts and to undertake a
greater percentage of its overall work outside those arrangements. In
anticipation of these intentions Birse Rail had previously implemented certain
structural and management changes so that it has the appropriate capabilities to
meet these changing procurement practices. This is a good example of Birse
Rail's focus on its customer requirements and its determination and flexibility
to act accordingly. It is this alertness to the changing needs of its customer
which puts the business in a good position to maintain and improve upon its
strong position in the market place.
Engineering: Process Engineering
As described in the Group's 2004/2005 Annual Report, Birse Process suffered
subdued demand from its key water customers in the second half of that year as a
result of the cyclical impact of the regulatory price reviews to which the UK
Water Industry is subjected. That situation for the same reason persisted in
the period now under review with no work on new contracts awarded in that sector
being undertaken. On a brighter note however, in the first half Birse Process
secured a major odour control related project with Thames Water in respect of
which work is now underway. The confirmation of that order has meant that the
three largest odour control related contracts available in the market place in
recent years have all been awarded to us confirming our status as the leading
solutions provider in this area. With demand in this sector forecast to
increase over the remainder of this regulatory cycle and into the next one Birse
Process is well placed to secure the more complex and hence rewarding projects
and increase its scale of operations.
The Energy market and in particular electrical power upgrades is the other major
sector in which Birse Process operates. It is near to completing a major
project to upgrade power supply capacity in relation to the Channel Tunnel Rail
Link. With the UK's electricity distribution network in a more outdated
condition than its water counterpart and with the higher technical capabilities
demanded of suppliers in this area this is a sector within which Birse Process
is aiming to increase its market share.
Construction: Building
The Group's ongoing build operations function completely independently of those
curtailed build divisions that are in the process of closedown. The business is
a distinct and autonomous unit with all the management and other functions that
would normally be associated with a stand alone business dedicated exclusively
to it and under its own control.
The business continues to be based in the North and focus on the Local Authority
and wider education sector. In the period under review aggregate operating
profits have remained in line with the previous year albeit on lower levels of
turnover. This reflects the benefits of our decision to specialise and
indicates that the improved management and operating practices introduced into
this business are materialising in higher margins. Improving margins further
will be the focus and objective of this business in the immediate future.
Plant Hire
The Group's ongoing plant hire operations consist of BPH Equipment Limited. BPH
hires heavy duty crawler cranes and piling equipment mainly into the civil
engineering market. As reported above in relation to Birse Civils
infrastructure markets have been in decline for the last three years. Since BPH
often hires as top up to customers' existing fleets of equipment any fall in
customer activities can have a disproportionate adverse impact on demand for
BPH's products.
The factors described have combined to produce the weakest markets that BPH has
been faced with in recent times. Even in such extreme conditions however BPH
has traded profitably to the credit of its management. With the decline in the
civils infrastructure markets projected to reverse, BPH is in a position to
secure a step change in its utilisation levels and return to the average levels
of return on capital of over twenty five per cent experienced in the recent
past.
Curtailed Businesses
Six months ended 31 October Year ended
2005 2004 30 April 2005
Turnover Operating Turnover Operating Turnover Operating
(loss)/profit (loss)/profit (loss)/profit
#'000 #'000 #'000 #'000 #'000 #'000
Construction:
Building* 4,213 (13,080) 22,127 (6,077) 32,590 (10,449)
Plant Hire - 1,250 2,614 608 5,161 947
Commercial Property 200 54 750 437 926 381
4,413 (11,776) 25,491 (5,032) 38,677 (9,121)
* Includes exceptional operating item of #5,753,000 in the six months
ended 31 October 2005, #1,271,000 in the six months ended 31 October 2004
and #2,928,000 in the year ended 30 April 2005.
Construction - Building
As announced on 26 October 2005, a settlement to the Citibank Litigation has
been reached. Under the terms of the related settlement agreement Birse
Construction Limited agreed to pay to Citibank an amount of #1.22million
together with Citibank's costs as assessed, currently estimated to be in the
region of #2million in full and final settlement. The aggregate amount due to
Citibank is payable in fourteen quarterly installments starting on 1 February
2006 and will bear interest at LIBOR plus 1.5 per cent. The settlement
agreement also gives Birse Group plc the option to satisfy up to #720,000 of
this liability by way of issue or issues of ordinary shares to Citibank by
reference to the market price of such shares on the dates such options are
exercised. The conclusion of the Citibank Litigation has not only removed the
significant risk and uncertainty associated with that process but equally
importantly it will allow the Board to focus more attention on developing the
positive aspects of the Group.
With regard to those divisions of Birse Build that are in the process of close
down site construction work is substantially complete with the emphasis now on
commercial closure. In that regard we continue to make progress towards our
target of eliminating material losses by the end of the Group's 2007 financial
year and are actively looking at options to accelerate that process.
There is now only one contract that is the subject of litigation or equivalent
proceedings (2004/2005: two). That contract relates to the Build closedown
Divisions. Included in debtors is an aggregate value of #5million attributable
to that contract (2004/2005: #7.1million). As described in Note 9 in respect of
that contract recoverability of value remains uncertain.
Plant Hire
The sale of the business and certain assets of The Cabin Company Limited was
completed on 9 May 2005. Of the #1.25million operating profit reported
#1.2million relates to the profit arising from that disposal with the balance
relating to the trading activities of that business upto completion.
Commercial Property
Turnover and profit in the period reflects the crystallisation of contingent
consideration, less related costs arising in respect of contracted sales in
prior years. It is unlikely that any consideration of any material value will
accrue in the future.
Dividend
An interim dividend of 0.375p per ordinary share (2004: 0.375p) will be paid on
5 May 2006 to shareholders on the register on 7 April 2006.
Outlook
In the Group's 2004/2005 Annual Report we referred to the Group's underlying
forward momentum. Since that time a settlement of the Citibank Litigation has
been reached and the reorganisation of Birse Build has been further progressed.
Although the Group remains exposed to uncertainties in respect of that
reorganisation it has taken important steps in maintaining management control in
that regard.
These actions combined with improving market conditions in all areas of our
ongoing operations, our ability to increase market share in those markets based
upon a customer focused approach, and the prospect of eliminating losses from
the curtailed Birse Build business by the end of the next financial year all
contribute to add further stimulus and substance to the Group's underlying
forward momentum.
Consolidated Income Statement
For the six months ended 31 October 2005
6 Months 6 Months Year
Ended Ended Ended
31.10.05 31.10.04 30.04.05
(restated) (restated)
Note #'000 #'000 #'000
Revenue 2 154,125 190,070 340,523
Operating costs before exceptional operating item (157,803) (187,948) (337,137)
Exceptional Citibank litigation costs 3 (5,753) (1,271) (2,928)
Total operating costs (163,556) (189,219) (340,065)
Operating (loss)/profit 2 (9,431) 851 458
Interest receivable 70 70 140
Finance costs (562) (254) (728)
(Loss)/profit before taxation (9,923) 667 (130)
Taxation 4 75 (108) 150
(Loss)/profit for the period 6 (9,848) 559 20
Basic (loss)/earnings per share 7 (5.1)p 0.3p 0.0p
Consolidated Balance Sheet
For the six months ended 31 October 2005
As at As at As at
31.10.05 31.10.04 30.04.05
(restated) (restated)
Note #'000 #'000 #'000
Assets
Non-current assets
Property, plant and equipment 11,004 15,695 14,644
Deferred tax assets 2,425 2,092 2,350
13,429 17,787 16,994
Current assets
Trade and other receivables 9 121,569 124,966 111,916
Cash and cash equivalents 10,918 9,334 10,420
Pension scheme prepayment 2,350 2,850 2,600
134,837 137,150 124,936
Total assets 148,266 154,937 141,930
Equity
Share capital 19,239 19,239 19,239
Share premium account 93 93 93
Special reserve 308 308 308
Revaluation reserve 607 607 607
Profit and loss account (19,668) (7,357) (7,896)
579 12,890 12,351
Liabilities
Non current liabilities
Trade and other payables 13,564 6,222 5,544
Bank loans and borrowings 273 1,026 624
Finance leases 109 120 123
13,946 7,368 6,291
Current liabilities
Trade and other payables 109,282 118,922 95,139
Bank loans and borrowings 18,894 10,508 23,946
Finance leases 80 27 143
Current tax liabilities 4,283 4,020 4,060
Dividends 1,202 1,202 -
133,741 134,679 123,288
Total liabilities 147,687 142,047 129,579
Total equity and liabilities 148,266 154,937 141,930
Consolidated Cash Flow Statement
For the six months ended 31 October 2005
6 Months 6 Months Year
Ended Ended Ended
31.10.05 31.10.04 30.04.05
(restated) (restated)
#'000 #'000 #'000
Cash flow from operations 3,410 (16,481) (27,843)
Interest paid (562) (244) (573)
Tax paid 0 (40) (165)
Net cash flow from operations 2,848 (16,765) (28,581)
Cash flows from investing activities
Interest received 70 70 140
Purchases of property, plant and equipment (1,993) (603) (1,700)
Proceeds from sale of property, plant and equipment 475 31 2,535
Proceeds from sale of business 5,300 - -
Net cash from investing activities 3,852 (502) 975
Cash flows from financing activities
Repayment of borrowings (1,098) (29) (590)
Finance lease principal payments (77) (201) (144)
Dividends paid to group shareholders (722) (721) (1,924)
Net cash used in financing activities (1,897) (951) (2,658)
Increase/(decrease) in net cash and cash
equivalents 4,803 (18,218) (30,264)
Net cash and cash equivalents at beginning of period (12,473) 17,791 17,791
Net cash and cash equivalents at end of period (7,670) (427) (12,473)
6 Months 6 Months Year
Ended Ended Ended
31.10.05 31.10.04 30.04.05
(restated) (restated)
#'000 #'000 #'000
Cash flows from operating activities
Net (loss)/profit after taxation (9,848) 559 20
Adjustments for
Tax (75) 108 (150)
Pensions charge 250 250 500
Depreciation 932 1,183 2,486
(Profit)/loss on disposal of property, plant
and equipment (1,074) (21) 47
Net interest 492 184 588
Operating cash flow before working capital changes (9,323) 2,263 3,491
Changes in working capital
(Increase)/decrease in trade and other
receivables (9,653) 11,084 23,027
Increase/(decrease) in trade and other
payables 22,386 (29,828) (54,361)
Cash flow from operations 3,410 (16,481) (27,843)
NOTES TO THE INTERIM ACCOUNTS
1. Preparation of Interim Accounts
For the year ended 30 April 2006 the Company will be required to prepare
consolidated financial statements under International Accounting Standards ("IAS
") as adopted by the European Commission. These will be those IAS,
International Financial Reporting Standards ("IFRS") and related Interpretations
("SIC-IFRIC interpretations"), subsequent amendments to those standards and
related interpretations, future standards and related interpretations issued or
adopted by the International Accounting Standards Board (IASB) that have been
endorsed by the European Commission. This process is ongoing and the Commission
has yet to endorse certain standards issued by the IASB.
The preliminary IFRS comparatives for the year ended 30 April 2005 and the six
months ended 31 October 2004 has been prepared by management using its best
knowledge of the expected standards and interpretations of the International
Accounting Standards Board, facts and circumstances, and accounting policies
that will be applied when the company prepares its first complete set of IFRS
accounts as at 30 April 2006. Therefore, until such time, the possibility
cannot be excluded that the accompanying preliminary opening balance sheet may
require adjustment before constituting the final opening balance sheet.
Moreover, under IFRS, only a complete set of financial statements comprising a
balance sheet, income statement, statement of changes in equity, cash flow
statement, together with comparative financial information and explanatory
notes, can provide a fair presentation of the company's financial position,
results of operations and cash flow.
The financial information has been prepared in accordance with IFRS.
Comparative information for the six months ended 31 October 2004 and the year
ended 30 April 2005 has been restated on an IFRS basis.
The Group have taken the decision not to adopt IAS34 "Interim Financial
Reporting" in the preparation of the interim statements for the period ended 31
October 2005.
Full details of new IFRS policies applied and reconciliation of comparative
figures between UK GAAP and IFRS are available on the Group's website
(www.birse.co.uk).
The Group's auditors, Deloitte & Touche LLP, have carried out a review of the
interim accounts, which were approved by the Board of Directors on 16 December
2005, and their report is reproduced on page 17.
The financial information presented is unaudited and does not amount to full
statutory accounts within the meaning of the Companies Act 1985. Full accounts
for the year ended 30 April 2005 upon which Deloitte & Touche LLP gave an
unqualified report, have been delivered to the Registrar of Companies and a
statement under section 237(2) of the Companies Act 1985 was not included.
2. Segment Information
6 Months 6 Months Year
Ended Ended Ended
31.10.05 31.10.04 30.04.05
#'000 #'000 #'000
Revenue
Engineering:
Civil Engineering 125,092 126,331 231,555
Process Engineering 11,483 20,497 40,265
Construction:
Building 15,672 39,167 61,046
Plant Hire 1,788 4,818 8,904
Commercial Property 200 750 926
Group Centre - - -
Intra-group (110) (1,493) (2,173)
154,125 190,070 340,523
Results
Engineering:
Civil Engineering 2,531 5,616 8,485
Process Engineering (95) 5 1,165
Construction:
Building (7,127) (4,606) (7,021)
Plant Hire 1,390 1,167 1,417
Commercial Property 54 437 381
Group Centre (431) (497) (1,041)
Operating (loss)/profit before exceptional
operating item (3,678) 2,122 3,386
Exceptional Citibank litigation cost:
Building (5,753) (1,271) (2,928)
Operating (loss)/profit (9,431) 851 458
3. Exceptional Operating Item
6 Months 6 Months Year
Ended Ended Ended
31.10.05 31.10.04 30.04.05
#'000 #'000 #'000
Costs and settlement of Citibank
Litigation (5,753) (1,271) (2,928)
The costs incurred in the period represent the settlement of the
Citibank Litigation (#1.2million) together with an estimate of Citibank's costs
of #2million and the legal and associated costs incurred during the period
(#2.5million). The costs in respect of the comparative periods represent the
legal and associated costs incurred in those periods.
4. Taxation
The tax credit/(charge) for the period has been calculated by reference to the
projected rate for the full year.
5. Dividends on Equity Shares
An interim dividend of 0.375p per ordinary share (2004: 0.375p) will be paid on
5 May 2006 to shareholders on the register on 7April 2006.
6. Reconciliation of movements in equity
6 Months 6 Months Year
Ended Ended Ended
31.10.05 31.10.04 30.04.05
#'000 #'000 #'000
Equity at start of period 11,629 14,255 14,255
Total recognised income and expense (9,848) 559 20
Dividends to shareholders (1,202) (1,924) (1,924)
Equity at end of period 579 12,890 12,351
7. (Loss)/earnings per share
#'000 #'000 #'000
(Loss)/earnings per share is calculated as follows:-
(Loss)/profit for the period (9,848) 559 20
Millions Millions Millions
Weighted average of ordinary shares in issue 192.4 192.4 192.4
(Loss)/earnings per share (5.1)p 0.3p 0.0p
8. Analysis of net debt
6 Months 6 Months Year
Ended Ended Ended
31.10.05 31.10.04 30.04.05
#'000 #'000 #'000
Cash at bank 10,918 9,334 10,420
Bank overdraft (18,588) (9,296) (22,893)
Current debt (306) (1,212) (1,053)
Non current debt (273) (1,026) (624)
Finance leases (189) (147) (266)
(8,438) (2,347) (14,416)
9. Trade and other receivables
Included in trade and other receivables is a debtor of #5million (31 October
2004 and 30 April 2005: #7.1million) attributable to contractual amounts
relating to one (31 October 2004 and 30 April 2005: two) contract which is the
subject of arbitration or equivalent proceedings.
In consequence of the losses suffered on contracts subject to litigation in
previous years the Directors have reconsidered the recoverability of this
contract. Whilst the Directors believe that they are justified in concluding
that this amount will be realised, the Directors acknowledge that there remains
uncertainty. However, it is not possible to quantify the effects.
Independent review report to Birse Group plc
Introduction
We have been instructed by the company to review the financial information for
the six months ended 31 October 2005 which comprises the consolidated income
statement, the consolidated balance sheet, the consolidated cash flow statement
and related notes 1 to 9. We have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
This report is made solely to the company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the company, for our review work, for this report, or for the conclusions we
have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors. The Directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
International financial reporting standards
As disclosed in note 1, the next annual financial statements of the Group will
be prepared in accordance with International Financial Reporting Standards as
adopted for use in the EU. Accordingly, the interim report has been prepared in
accordance with the recognition and measurement criteria of IFRS and the
disclosure requirements of the Listing Rules.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom auditing standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.
Uncertainty relating to contracts
In arriving at our review conclusion we have considered the accuracy of
disclosure made in Note 9 to the financial information concerning uncertainty
relating to trade and other receivables. In view of the significance of this
uncertainty, we consider it should be brought to your attention. Our review
conclusion is not qualified in this respect.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 October 2005.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors
Leeds
16 December 2005
This interim report will be posted to shareholders and copies will be made
available to the public from: The Secretary, Birse Group plc, Humber Road,
Barton on Humber, North Lincolnshire, DN18 5BW.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR TABATMMTBBBA
Birse (LSE:BIE)
Historical Stock Chart
From Apr 2024 to May 2024
Birse (LSE:BIE)
Historical Stock Chart
From May 2023 to May 2024
