Interim Results

RNS Number : 8438W

Caffyns PLC

26 November 2010

 



INTERIM RESULTS                                                                 

for the half year ended 30 September 2010

Summary

	2010	2009
	£'000	£'000
Revenue	103,793	89,570
Profit before tax	917	685
Adjusted profit before tax *	917	710
	P	p
Basic earnings per share	27.1	16.6
Adjusted earnings per share *	27.1	17.3
Interim dividend per share	5.0	5.0
* Adjusted for non-underlying items

Highlights

§  Revenue in the period up 16% to £103.8m from £89.6

§  Profit before tax up 34% to £917,000 from £685,000

§  New car unit sales up 4.5% increasing market share

§  Used car sales up 6.6%

§  Aftersales revenue up 4.4%

§  Adjusted earnings per share up to 27.1p from 17.3p

The Chief Executive, Simon Caffyn, commented:

"We are pleased to report an improved performance for the first half of 2010. Revenues are up 16% compared with the same period last year and profit before tax is up 34%. Our new and used car sales figures and aftersales revenues are all up on last year. We achieved these higher levels in what remain uncertain market conditions for car sales, and future visibility is limited. Our objective is to build on the first half's performance by continuing to focus on the efficient running of the group's operations. However, the effects of the Government Spending Review and the VAT increase in January could impact consumer confidence and thus car sales in the second half."

Enquiries:

Caffyns plc	Simon Caffyn, Chief Executive	Tel:	01323 730201
	Mark Harrison, Finance Director
The HeadLand Consultancy	Tom Gough	Tel:	0207 367 5228

 

Interim Management Report

Summary

In the six months to 30 September 2010 revenue has increased to £103.8m compared with £89.6m in the same period last year, an increase of 16%.  We have further improved trading and, after a fall in net interest costs, report a profit before tax of £917,000 compared to £685,000 last year, an increase of 34%.

Adjusted earnings per share are up to 27.1p from 17.3p, an increase of 57%.

Operating Review

New and Used Cars

Total UK new car registrations fell by 1.3% in the period and were down 9.7% in the private and small business sector in which we operate.  However, our new unit sales are up 4.5% on a like for like basis indicating an increase in our market share.  These figures include cars sold under the Government scrappage scheme which ended in February 2010 although delivery of vehicles ordered under the scheme continued until July.  Our underlying new car unit sales, excluding scrappage, are up 39.5% compared to last year.

Our premium and premium-volume franchises have performed well and new car margins have strengthened.  The overall UK car market for 2010 was originally forecast at 1.65 million units but is on course to be marginally ahead of last year at just over 2 million.  This has caused production problems for many of our manufacturers and created extended lead times which resulted in many orders being unavailable for September delivery.  As a result we carry forward a number of new car orders into our second half and hope that supply lead times will improve as production is increased.

Used car unit sales are up 6.6% compared to 2009 levels in a difficult market.  However, in 2010 used car margins have reduced as prices returned to more normal levels and seasonal levels of used car depreciation have returned. We have strengthened our used car buying team to ensure we maximise our potential in this area.

Aftersales

Despite the decline of the new car market over the last three years with the consequential decline in the number of one to three year old cars in circulation, we have increased our aftersales revenue by 4.4% compared to 2009 levels.

The emphasis placed on customer satisfaction supported by our central customer relationship management team has helped to improve customer retention despite strong competition from independent garages.

Working Capital

To counter supply problems on some new car franchises we have increased our used car stock levels and taken advantage of packs of new cars occasionally made available by manufacturers requiring payment on delivery. Used car stock turn remains strong in excess of 10 times.  Capital expenditure in the six months was £395,000.

Operations

Operating profit is in line with last year notwithstanding an increase in gross profit, primarily due to our investment for the future in:

·     Training

Following the recession we have increased expenditure on staff training.  Training remains an essential factor in delivering a quality service to our customers and we have increased levels of both internal and manufacturer run courses.

·     Apprentice Scheme

Whilst we continue to control overhead costs and staffing levels overall, we have put greater emphasis on our apprenticeship programme to take on and train our future income generators.  In the early years training costs are generally higher than income generated but apprentices help to improve the efficiency of their mentors to offset some of this cost.

·     Marketing

Marketing expenditure has increased in order to improve new and used car sales and to retain customers for aftersales services.  Emphasis has been placed on finance sales to help customers finance vehicles and to increase sales whilst protecting margins.

Increased stock levels delivered an increased used car performance with beneficial effects on aftersales.  However, higher interest charges and used car depreciation, which reduced used car margins and increased running costs of demonstrators and courtesy cars, have adversely affected operating profits.

In January we set up Auto-Owl, a new web-based sales channel, marketing new cars predominantly to business users via the internet.  In its first nine months of trading the operation has become established and helped to increase our new car market share.  The website can be viewed at www.auto-owl.co.uk.

Property 

The planning application for change of use of our site in Preston Road, Brighton was considered by the local authority in September and permission was refused primarily in relation to delivery arrangements. It is hoped that this issue can be resolved following further discussion with the council's Highways Department and a further application will be submitted. Following a remarketing of our East Grinstead site, a draft contract has been issued to a potential purchaser which is conditional upon a planning approval. We have an agreement to lease our former used car site in Goring to Tesco Stores Limited conditional upon the granting of a planning application for change of use. The application has recently been submitted to the local authority and is expected to be considered in the first quarter of 2011.

The Board intend that the proceeds from any asset realisations will be reinvested in our core franchises. The workshop at our successful Land Rover dealership in Lewes is being relocated to a leased unit nearby. This will enable the demolition of the existing workshop and the building of a new showroom to enhance our vehicle sales opportunity. A planning application is expected to be lodged shortly with the local authority.

Pensions

The defined benefit pension scheme liability increased by £0.19m to £6.55m at 30 September 2010 with the assets and liabilities at similar levels to those at 31 March 2010. The Income Statement includes the charge for the contributions to the defined contribution scheme for staff following the closure of the defined benefit scheme to future accrual with effect from 1 April 2010. There was a net finance credit to the Income Statement of £147,000 in the period compared to a net finance expense last year of £213,000.

Dividend

The Board has decided to maintain the interim dividend at 5p per Ordinary Share.  This will be paid on 14 January 2011 to shareholders on the register at close of business on 17 December 2010

Current Trading and Outlook

New car supply issues in our first half mean that we carry over a strong order book into the second half and we continue to look to increase our share of the new car market.  We have increased our used car buying team and look to take advantage of a more stabilised used car market.

We continue to enhance our internet presence and will be launching further improvements to our websites in the spring of next year.  Sales processes are being further developed to ensure sales to online enquiries are maximised. 

Aftersales remains a critical area of the business with great emphasis on customer retention for service, MOT and repair.

Despite significant increases in revenue, costs remain under close review with efficiencies sought throughout the business.

Our strategy remains focused on returning to historic levels of profitability.  Since the election consumer confidence has been more volatile but we continue to gain market share.  Uncertainties remain with VAT increasing to 20% in January 2011 and the effect of the cuts resulting from the Government Spending Review is difficult to predict, being spread over four years. Consequently, we may encounter a difficult trading period in the second half. However, in the longer term, as a result of our investments in marketing and training, we are well placed to take advantage of any improvements in market conditions and remain cautiously optimistic.

Simon G M Caffyn

Chief Executive

Consolidated Income Statement

for the half year ended 30 September 2010

				Year ended 31 March 2010
	Note	Half year to 30 September  2010	Half year to 30 September  2009	Before non-underlying	Non-underlying (note 3)	Total
		£'000	£'000	£'000	£'000	£'000
Revenue		103,793	89,570	189,426	-	189,426
Cost of sales		(89,055)	(75,914)	(161,831)	-	(161,831)
Gross profit		14,738	13,656	27,595	-	27,595
Operating expenses		(13,397)	(12,292)	(25,443)	118	(25,325)
Operating profit  before non-underlying items		1,341	1,364	2,152	118	2,270
Other non-underlying items	3	-	(25)	-	-	-
Operating profit		1,341	1,339	2,152	118	2,270
Net finance income/(expense) on pension scheme		147	(213)	(427)	-	(427)
Finance expense	4	(571)	(441)	(873)	-	(873)
Net finance costs		(424)	(654)	(1,300)	-	(1,300)
Profit before taxation		917	685	852	118	970
Income tax (expense)/credit	5	(145)	(206)	171	(34)	137
Profit for the period from continuing operations		772	479	1,023	84	1,107
Continuing operations earnings per share
Basic and diluted	6	27.1p	16.6p			38.6p

 

Consolidated Statement of Comprehensive Income

for the half year ended 30 September 2010

	Half year to	Half year to	Year to
	30 September 2010	30  September 2009	31 March 2010
	£'000	£'000	£'000
Profit for the period	772	479	1,107
Other comprehensive income
Actuarial losses recognised in defined benefit pension scheme	(382)	(5,111)	(2,599)
Deferred tax on actuarial losses	107	1,440	728
Other comprehensive income, net of tax	(275)	(3,671)	(1,871)
Total comprehensive income for the period	497	(3,192)	(764)

 

 

 

 

Consolidated Balance Sheet

at 30 September 2010

		30 September	30 September	31 March
		2010	2009	2010
		£'000	£'000	£'000
Non-current assets
Property, plant and equipment		31,491	31,642	31,683
Goodwill		286	286	286
Deferred tax asset		91	452	96
Total non-current assets		31,868	32,380	32,065
Current assets
Inventories		24,557	20,665	22,032
Trade and other receivables		6,446	6,887	8,105
Cash and cash equivalents		31	23	407
Non-current assets held for sale		564	564	564
Total current assets		31,598	28,139	31,108
Total assets		63,466	60,519	63,173
Current liabilities
Interest bearing loans and borrowings		3,053	5,740	1,888
Trade and other payables		23,890	21,467	25,195
Tax liabilities		253	212	220
Total current liabilities		27,196	27,419	27,303
Net current assets		4,402	720	3,805
Non-current liabilities
Interest bearing loans and borrowings		8,000	5,000	8,000
Preference shares		1,237	1,237	1,237
Retirement benefit obligations		6,548	8,856	6,358
Total non-current liabilities		15,785	15,093	15,595
Total liabilities		42,981	42,512	42,898
Net assets		20,485	18,007	20,275
Equity
Share capital		1,439	1,439	1,439
Share premium account		272	272	272
Capital redemption reserve		282	282	282
Non-distributable reserve		2,901	2,901	2,901
Other reserve		104	32	72
Retained earnings		15,487	13,081	15,309
Total equity		20,485	18,007	20,275

 

 

Consolidated Statement of Changes in Equity

for the half year ended 30 September 2010

		Share capital £'000	Share premium £'000	Capital redemption reserve £'000	Other reserve £'000	Non-distributable reserve £'000	Retained earnings £'000	Total £'000
	At 1 April 2010	1,439	272	282	72	2,901	15,309	20,275
	Total comprehensive income
	Profit for the period	-	-	-	-	-	772	772
	Other comprehensive income	-	-	-	-	-	(275)	(275)
	Total comprehensive income for the period	-	-	-	-	-	497	497
	Transactions with owners:
	Dividends	-	-	-	-	-	(142)	(142)
	Purchase of own shares	-	-	-	-	-	(177)	(177)
	Share based payment	-	-	-	32	-	-	32
	At 30 September 2010	1,439	272	282	104	2,901	15,487	20,485

for the half year ended 30 September 2009

		Share capital £'000	Share premium £'000	Capital redemption reserve £'000	Other reserve £'000	Non-distributable reserve £'000	Retained earnings £'000	Total £'000
	At 1 April 2009	1,439	272	282	-	2,901	16,410	21,304
	Total comprehensive income
	Profit for the period	-	-	-	-	-	479	479
	Other comprehensive income	-	-	-	-	-	(3,671)	(3,671)
	Total comprehensive income for the period	-	-	-	-	-	(3,192)	(3,192)
	Transactions with owners:
	Dividends	-	-	-	-	-	(58)	(58)
	Purchase of own shares	-	-	-	-	-	(79)	(79)
	Share based payment	-	-	-	32	-	-	32
	At 30 September 2009	1,439	272	282	32	2,901	13,081	18,007

Consolidated Statement of Changes in Equity

for the year ended 31 March 2010

		Share capital £'000	Share premium £'000	Capital redemption reserve £'000	Other reserve £'000	Non-distributable reserve £'000	Retained earnings £'000	Total £'000
	At 1 April 2009	1,439	272	282	-	2,901	16,410	21,304
	Total comprehensive income
	Profit for the period	-	-	-	-	-	1,107	1,107
	Other comprehensive income	-	-	-	-	-	(1,871)	(1,871)
	Total comprehensive income for the year	-	-	-	-	-	(764)	(764)
	Transactions with owners:
	Dividends	-	-	-	-	-	(200)	(200)
	Purchase of own shares	-	-	-	-	-	(137)	(137)
	Share based payment	-	-	-	72	-	-	72
	At 31 March 2010	1,439	272	282	72	2,901	15,309	20,275

Consolidated Cash Flow Statement

for the half year ended 30 September 2010

	Half year to	Half year to	Year to
	30 September 2010	30 September 2009	31 March 2010
	£'000	£'000	£'000
Cash flows from operating activities
Profit before taxation	917	685	970
Adjustments for:
Net finance expense	424	654	1,300
Depreciation and amortisation	585	640	1,230
Impairment of property, plant and equipment	-	-	(359)
Change in retirement benefit obligations	(45)	(183)	(383)
Loss on disposal of property, plant and equipment	-	25	14
Share-based payments	32	32	65
Increase in inventories	(2,525)	(1,570)	(2,937)
Decrease/(increase) in trade and other receivables	1,659	(983)	(2,179)
(Decrease)/increase in payables	(1,305)	(434)	3,296
Cash (absorbed)/generated by operations	(258)	(1,134)	1,017
Interest paid	(571)	(441)	(873)
Net cash (used in)/from operating activities	(829)	(1,575)	144
Investing activities
Proceeds on disposal of property, plant and equipment	2	2	-
Purchases of property, plant and equipment	(395)	(111)	(392)
Net cash used in investing activities	(393)	(109)	(392)
Financing activities
Bank loans received	-	5,000	8,000
Dividends paid to shareholders	(142)	(58)	(200)
Purchase of own shares	(177)	(79)	(137)
Payment of capital element of finance lease rentals	(2)	(12)	(15)
Net cash used in financing activities	(321)	4,851	7,648
Net (decrease)/ increase in cash and cash equivalents	(1,543)	3,167	7,400
Cash and cash equivalents at beginning of period	(1,476)	(8,876)	(8,876)
Cash and cash equivalents at end of period	(3,019)	(5,709)	(1,476)

 

 

Notes to the Set of Financial Information

 

for the half year ended 30 September 2010

1.             GENERAL INFORMATION

Caffyns plc is a company domiciled in the United Kingdom. The address of the registered office is Saffrons Rooms, Meads Road, Eastbourne BN20 7DR.

These condensed consolidated interim financial statements for the half year to 30 September 2010 and similarly for the half year to 30 September 2009 are unaudited. They do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2010.

The figures for the year ended 31 March 2010 have been extracted from the statutory accounts, filed with the Registrar of Companies on which the auditors gave an unqualified opinion and did not contain statements under section 498(2) or (3) of the Companies Act 2006. 

These statements have been reviewed by the Company's auditors and a copy of their review report is set out at the end of these statements.

These consolidated interim financial statements were approved by the Directors on 26 November 2010. 

2.             ACCOUNTING POLICIES

The annual financial statements of Caffyns plc are prepared in accordance with IFRSs as adopted by the European Union. The set of financial statements included in this half yearly financial report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' as adopted by the European Union. This interim financial report has been prepared under the historical cost convention as modified by the fair value accounting of defined benefit schemes and share based payment transactions. As required by the Disclosure and Transparency Rules of the Financial Services Authority, this set of financial statements has been prepared in accordance with the accounting policies set out in the Annual Report for the year ended 31 March 2010.

There are a number of other accounting standards that have become effective in the current period. However, there is no material impact upon the financial statements.

Segmental reporting

Based upon the management information reported to the group's chief operating decision maker, the Chief Executive, in the opinion of the directors, the Company only has the one reportable segment. There are no major customers amounting to 10% or more of the group's revenue. All revenue and non-current assets derive from, or are based in, the United Kingdom.

Basis of preparation: Going concern

After making enquiries and considering the current operating environment, the Directors have a reasonable expectation that the Group will have sufficient resources to continue in operational existence for the foreseeable future and they continue to adopt the going concern basis in preparing this Interim Management Report.

3.             NON-UNDERLYING ITEMS

	Half year to	Half year to	Year to
	30 September	30 September	31 March
	2010	2009	2010
	£'000	£'000	£'000
Costs on termination of short lease	-	(25)	-
Net loss on disposal of property, plant and equipment	-	-	(41)
Losses incurred on closed businesses	-	-	(51)
Impairment of property, plant and equipment: reversal	-	-	359
Redundancy costs	-	-	(149)
	-	(25)	118

4.             FINANCE EXPENSE

	Half year to	Half year to	Year to
	30 September	30 September	31 March
	2010	2009	2010
	£'000	£'000	£'000
Interest payable on bank borrowings	235	204	402
Vehicle stocking plan interest	191	113	223
Interest payable on finance leases	1	1	2
Financing costs amortised	93	72	144
Preference dividends	51	51	102
Total finance costs	571	441	873

5.             TAXATION

	Half year to	Half year to	Year to
	30 September	30 September	31 March
	2010	2009	2010
	£'000	£'000	£'000
Current UK corporation tax at 28% (2009 - 28%)
Charge for the period	33	-	8
Deferred tax at 27% (2009 - 28%)
Origination and reversal of timing differences	150	206	165
Adjustment for change in rate of corporation tax	(38)	-	-
Adjustments recognised in the period for deferred tax of prior periods	-	-	(310)
Total	112	206	(145)
Total tax charged/(credited) in the Income Statement	145	206	(137)

 

The tax charge/(credit) arises as follows:
On normal trading	145	206	(171)
Non-underlying	-	-	34
Total	145	206	(137)

Taxation for the half year has been provided at the effective rate of taxation of 16% (2009 - 30%) expected to apply to the whole year on ordinary trading. The effective rate for 2010 is lower than the current UK tax rate due to the relatively high indexation allowances on rolled over and held over capital gains. Tax on non-underlying items is provided at the actual rate applicable.

The Emergency Budget on 22 June 2010 announced that the UK corporation tax rate will reduce from 28% to 24% over a period of 4 years from 2011.  The first reduction in the UK corporation tax rate from 28% to 27% was substantively enacted on 20 July 2010 and will be effective from 1 April 2011.  This will reduce the Company's future current tax charge accordingly.  The effect on the deferred tax balance at 30 September 2010 was to increase the deferred tax asset by £38,000.

6.             EARNINGS PER SHARE

The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.  Shares held in employee share trusts are treated as cancelled for the purposes of this calculation. The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares and the post tax effect of dividends and/or interest, on the assumed conversion of all dilutive options and other dilutive potential ordinary shares.  At all period ends there were no unissued shares, so diluted earnings per share are the same as basic earnings per share.  Reconciliations of the earnings and the weighted average number of shares used in the calculations are set out below.

	Half year to	Half year to	Year to
	30 September	30 September	31 March
	2010	2009	2010
	£'000	£'000	£'000
Profit before tax	917	685	970
Taxation	(145)	(206)	137
Earnings	772	479	1,107
Earnings per share	27.1p	16.6p	38.6p

Adjusted
Profit before tax	917	685	970
Adjustment: Non-underlying items (note 3)	-	25	(118)
Adjusted profit before tax	917	710	852
Taxation	(145)	(213)	171
Adjusted earnings	772	497	1,023
Basic earnings per share	27.1p	17.3p	35.7p

The weighted average number of shares in issue during the period was 2,845,335 (2009 - 2,878,712).

7.             DIVIDENDS

Ordinary shares of 50p each

The interim dividend proposed at the rate of 5.0p per share (2009: 5.0p) is payable on 14 January 2011 to shareholders on the register at the close of business on 17 December 2010.  The shares will be marked ex-dividend on 15 December 2010.

Preference shares

Preference dividends have been paid in October 2010.  The next preference dividends are payable in April 2011.  The cost of the preference dividends has been included within finance costs.

 

8.             PENSIONS

The net liability for defined benefit obligations has increased from £6,358,000 at 31 March 2010 to £6,548,000 at 30 September 2010. The increase of £190,000 comprises contributions of £75,000 plus the net credit to the income statement of £117,000 and a net actuarial loss charged to Reserves of £382,000. The net actuarial loss has arisen principally due to the change in value of the assets held over the period. The main assumptions subject to change are the discount rate 5.0% (31 March 2010 - 5.6%) and the rate of increase in inflation at 3.0% (31 March 2010 - 3.6%).

9.             RELATED PARTY TRANSACTIONS

There have been no new related party transactions that have taken place in the first six months of the current financial year that have materially affected the financial position or performance of the Group during that period and there have been no material changes in the related party transactions described in the last annual report that could do so.

10.           RISKS AND UNCERTAINTIES

There are a number of potential risks and uncertainties which could have a material impact on the Group's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. The Board believes these risks and uncertainties to be consistent with those disclosed in our latest annual report, including general economic factors, their impact on the Group's defined benefit pension scheme, liquidity and financing, manufacturers' dependency and stability, used car prices and regulatory compliance.

RESPONSIBILITY STATEMENT

 

We confirm to the best of our knowledge:

 

a)             the Interim financial statements have been prepared in accordance with IAS34 'Interim Financial Reporting';

b)             the Interim financial statements include a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules (indication of important events during the first six months and their impact on the set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year); and

c)             the Interim financial statements include a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules (disclosure of related parties' transactions and changes therein).

By order of the Board

S G M Caffyn

Chief Executive

M S Harrison

Finance Director

26 November 2010

INDEPENDENT REVIEW REPORT

to Caffyns plc

 

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2010 which comprises the Condensed Consolidated Income Statement, the Condensed Consolidated Statement of Comprehensive Income, the Condensed Consolidated Balance Sheet, the Condensed Consolidated Cash Flow Statement, the Consolidated Statement of Changes in Equity and the related notes. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the Company those matters we are required to state to them in a 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 conclusion we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in Note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting,' as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2010 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Grant Thornton UK LLP

Registered Auditor and

Chartered Accountants

London

26 November 2010

 

END

 

 

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