Half Yearly Report

RNS Number : 1508N

Cenkos Securities PLC

26 September 2012

 



Cenkos Securities plc (the "Company") together with its subsidiaries (the "Group")

UNAUDITED INTERIM FINANCIAL RESULTS FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2012

Financial highlights

	30 June 2012	30 June 2011
Revenue from continuing operations	£20.2m	£25.1m
Operating profit from continuing operations	£3.4m	£4.8m
Profit before tax from continuing operations	£3.5m	£5.0m
Profit after tax from continuing operations	£2.5m	£3.5m
Profit after tax from continuing  and discontinued operations	£6.0m	£3.9m
Basic and diluted earnings per share from continuing operations	3.6p	5.0p
Basic and diluted earnings per share from continuing and discontinued operations	8.3p	5.2p
Interim dividends per share declared	3.5p	4.0p
Cash and cash equivalents	£22.9m	£19.2m
Capital resources in excess of Pillar 1 and 2 regulatory capital requirements	£8.6m	£8.0m

Operational highlights

Funds raised for clients	£353 million	£619 million
Nominated adviser, corporate broker or financial adviser to	118 companies	106 companies

Commenting on the interim results, Chief Executive Officer Jim Durkin noted:

"Whilst revenues have reduced owing to prevailing market conditions, I am pleased that we continue to raise funds for our expanding client base and that we remain profitable on our continuing operations. We also generated a £3.5 million profit after tax from discontinued operations, following on from the disposal of our controlling stake in Cenkos Channel Islands Limited. We have made an encouraging start to the second half of 2012."

For further information contact:

Jim Durkin                             020 7397 8900                                                        David Rydell / Duncan Mayall                          020 7861 3232

Chief Executive Officer                                                                                        Pelham Bell Pottinger

Cenkos Securities plc                                                                                         

                                                                                                                                Nick Donald                                                          020 7991 1504

                                                                                                                                HSBC (Nomad)

Business Review

Strategy and business model

Cenkos Securities plc ("Cenkos" or the "Company") is listed on the Alternative Investments Market ("AIM") and regulated by the FSA. It was founded in 2005 and has, over the past seven years, established a successful platform that has been profitable in every year of its existence and delivered a strong dividend stream. The Company's prime strategy is to build from this base to become the principal UK institutional broker to growth companies based in the UK and abroad. Cenkos aims to achieve this through:  

-       Successful fund raising and advice to clients through an innovative and entrepreneurial approach;

-       Delivering sustainable, diversified and growing income streams;

-       Adding high quality individuals to the teams; and

-       Managing costs and risks carefully,

thereby providing shareholder value through share price growth and a strong dividend yield.

Cenkos' business model is based on offering market leading corporate broking / securities services to small and mid-cap growth companies, with a focus on companies that wish to float on the London Stock Exchange's (LSE) AIM market or are already quoted on AIM or the LSE's main market. Cenkos aims to operate an efficient and flexible business model, whilst reflecting that it operates in a highly regulated environment.

Cenkos' Key Performance Indicators (KPIs) include, but are not limited to, measures such as:

-       Profit before tax, the revenue and profitability of each business segment, cost management, earnings per share;

-       The size and quality of our corporate client base (e.g. Nomad / broker appointments), the aggregate funds raised for clients; and

-       Various key risk indicators, including regulatory ratios and cash flow measures.

Commentary on KPIs is included in this Business Review.

Summary of performance

The Company is pleased to report that, despite the difficult economic conditions that prevailed during the period, we have remained profitable and continue to grow our client base. Although revenues and profits have fallen when compared to the same period last year, they are well ahead of the second half of last year. This has been achieved against an ongoing backdrop of fragile and volatile equity markets. Our business model ensures a low fixed cost base and a remuneration structure highly geared to performance. We maintain a positive cash cycle and a limited exposure to credit and market risk. This, combined with the high quality, dedication and experience of our employees, has enabled Cenkos to produce this performance.

Despite difficult equity market conditions, we continue to raise equity capital for our corporate clients. The result being that we are now officially ranked as one of the leading brokers in London for growth companies. Cenkos remains highly placed in its chosen markets, as noted in Morningstar's Professional Services Rankings Guide for Q3 2012 (published in August 2012), where we were ranked first in terms of both 'Nomad' and 'Stockbroker' for all AIM clients by both number of clients and clients' market capitalisation.

Total revenue on continuing operations for the period decreased by 19% to £20.2 million (H1 2011: £25.1 million). The economic slowdown continues to impact equity markets with the total funds being raised by all companies on AIM falling by 37% to £1,761 million from H1 2011 to H1 2012 (source: LSE AIM factsheet June 2012). This fall continues to impact the stockbroking and advisory industry's profitability and is leading to long overdue consolidation amongst our competitors. Given our strong market position and continued profitability, this continued turmoil provides us with an opportunity to win new clients and to continue to add high quality individuals to our existing teams.

Costs of continuing operations fell by £3.4 million (17%) in the period, mainly reflecting a fall in performance-related pay of £3.0 million driven by lower net revenues. We endeavour to remunerate our staff to a level which not only retains but also motivates them to behave in line with the longer-term growth objectives of the Company. We continue to pursue a policy of maintaining a low fixed cost base and a remuneration policy of low basic salaries and rewarding net income generation.

Profit before tax on continuing operations was £3.5 million (H1 2011: £5.0 million). This 29% fall reflected the lower revenues noted above, offset by lower performance related pay.  Basic and diluted earnings per share on continuing operations fell by 28% to 3.6 pence (H1 2011: 5.0 p).

Cenkos continues to maintain a firm control over risk, enjoys healthy cash levels and remains well capitalised against regulatory requirements.

Following on from a strategic review, we sold our controlling interest in our offshore fund and wealth management business, Cenkos Channel Islands Limited (CCIL), in April 2012, reducing our stake from 50% to 10%. As noted in our 2011 Annual Report, in February 2012 we also completed the sale of our onshore fund management business, Cenkos Fund Managers Limited. Cenkos generated £3.5 million profit after tax on discontinued operations (H1 2011: £0.4 million).  

Review of performance: Corporate Broking and Advisory 

This business segment includes the results of our growth company and investment funds activities, including the results of our market making capability that supports these areas.  Revenue in this segment is made up of placing commission on fund raisings, corporate finance fees and retainer income, market making profits and commissions on secondary market transactions. 

Revenue was down 20% to £19.0 million (H1 2011: £23.8 million), due largely to a fall in corporate finance revenues - including placing fees - which were £12.9 million (H1 2010: £18.3 million). The segment result was down 15% to £7.7 million (H1 2011: £9.1 million).

In our core market, AIM, the total value of primary admissions to AIM fell from £260 million in H1 2011 to £210 million in H1 2012. Additionally, in the same period, the value of secondary fund raisings on AIM fell from £2,557 million to £1,551 million (source: LSE AIM factsheet June 2012). Against this backdrop, we are pleased to announce that during the period we completed 21 transactions and our clients raised a total of £306 million (H1 2011: £358 million), which included two primary issues. In the period we also completed two M&A corporate finance transactions (H1 2011: five). This performance is particularly encouraging as it was achieved during a period where there was limited transactional revenue and continued competitive pressure. We continue to be highly rated in Morningstar's Professional Services Rankings Guide for Q3 2012 (published in August 2012). In addition to being ranked first in terms of both 'Nomad' and 'Stockbroker' for all AIM clients by both number of clients and clients' market capitalisation, we were also ranked first in terms of both 'Nomad' and 'Stockbroker' to the Oil & Gas and Telecommunications sectors, and second in terms of Nomad to the Consumer Services, Financials, Technology and Utilities sectors. As at 30 June 2012, Cenkos was nominated adviser or corporate broker / financial adviser to 118 companies or trusts (H1 2011: 106).

Our investment funds team provides a broad range of services to investment companies including primary and secondary sales, market making, research, corporate broking and corporate finance advice.  Their sales team services both institutional and wealth manager clients. In the period to 30 June 2012 we raised £47 million for investment companies (H1 2011: £261 million, including £166 million for Fidelity China Special Situations plc).

The Group makes markets in the securities of all the companies where it has a broking relationship to support the other services it provides to its clients. Cenkos is a member of the LSE. We actively provide liquidity to the market and facilitate institutional business in both small and large cap equities. Our equity trading desk now makes markets in the shares of 221 companies and our investment trust desk 130. We continue to actively restrict the amount of capital committed to this activity to limit the market risk exposure without adversely affecting the revenue generated. Cenkos does not engage in proprietary trading and applies position limits and monitoring procedures to ensure it controls the risks taken. Cenkos does, from time to time, take stock in lieu of fees and the market movement on these items is also included in this income stream.

Review of performance: Institutional Equities

The Institutional Equities team provides research-driven investment recommendations to institutional clients.

In the first half of 2012, the number of shares traded in the UK market, across all exchanges, was little different from the same period last year.  The value of these transactions, however, dropped by about 10%.  But the commission paid to the broking industry fell a further 15% as a result of the increased use of "direct market access" by institutional investors.  As pressure continues to grow on fund management charging, this is not a situation that is likely to change.  Nor do we expect volumes to improve until there is some lasting resolution to the Euro crisis.

Despite this difficult background, we remain optimistic.  Our own revenues for the period for this segment were down just 1% to £1.3 million (H1 2011: £1.3 million), and the segment result improved to £0.3 million (H1 2011: £0.1 million). We believe that our client base recognises that we are committed to producing excellent and thought-provoking research and that the flexibility of our business model means that we can continue to do so.  Despite falling commission rates, we still wish to raise our research capability: we recognise that in an increasingly competitive world, stock and market insight is only going to become more valuable.

Our execution business is strictly focused on client facilitation and we do not engage in proprietary trading. We believe that this segment continues to enhance Cenkos' overall service offering to its expanding client base.

Review of performance: Fund and Wealth Management

Our offshore fund and wealth management services were provided through Cenkos Channel Islands Limited (CCIL), a 50% owned subsidiary based in Guernsey and its own subsidiary based in Jersey. Following on from a strategic review, in April 2012 we sold our controlling interest in CCIL, reducing our stake from 50% to 10%. 

The onshore fund management business was provided by a subsidiary company, Cenkos Fund Managers Limited. This operation has an investment management agreement with an AIM-quoted fund. A decision was made by the Board to sell this business to local management in November 2011 and this sale was completed on 1 February 2012. The results for the year of this business, and the loss on sale, are shown as discontinued operations and the comparative results for 2011 have also been restated accordingly.

Cenkos generated a profit after tax from discontinued operations of £3.5 million, which included a £0.7 million gain on the fair value uplift on the interest retained in CCIL.

Statement of consolidated financial position and cash flow

We currently hold cash levels at £22.9 million (H1 2011: £19.2 million). The period to 30 June 2012 has seen a net increase in cash and cash equivalents of £8.9 million (H1 2011: net decrease of £9.2 million). This is largely due to the Group's profitable trading over the period generating £2.8 million (H1 2011: inflow £5.0 million), a reduction of the investment in financial assets, lower dividend payments and net cash inflow from the sale of discontinued operations.

At present Cenkos has no gearing and the Board continues to review gearing levels on an ongoing basis. Cenkos has to retain sufficient capital to satisfy the UK Financial Services Authority's capital requirements. These requirements vary from time to time depending on the business conducted. As at 30 June 2012, Cenkos had a solvency ratio based on capital resources against Pillar 1 capital requirement of 223% (H1 2011: 213%) based on audited profits, and a capital resources surplus of £8.6 million (H1 2011: £8.0 million) in excess of our Pillar 1 and 2 regulatory capital requirements.

Dividend

The Board proposes an interim dividend of 3.5p per share reflecting our earnings per share on continuing operations. This compares to last year's initial interim dividend of 4p per share and a final dividend of 1p per share. Since our flotation on AIM in October 2006, the Company has paid a total of 65 pence per share in dividends. The dividend will be paid on 15 November 2012 to all shareholders on the register at 12 October 2012.

People

Whilst the market in which we operate remains unsettled, the continued professionalism of our employees has enabled us to achieve the robust performance for the period. I am proud to lead a group of such dedicated and talented individuals. Their skill, commitment and determination will continue to provide us with a solid platform on which to continue to build our franchise.

During the six months to 30 June 2012, there were a number of changes to the Board.

Gerry Aherne, was appointed as a Non-executive Director of the Company on 4 April 2012, and replaced Peter Sullivan as Chairman on 10 May 2012. Both Peter Sullivan and David Henderson stepped down as a Non-executive Directors of the Company on 10 May 2012. On 15 May 2012 Dr Anthony Hotson was appointed as a Non-executive Director.

The Company is committed to maintaining a strong and effective Board with regulatory, operational and strategic responsibilities for supervising the business in the best interests of the shareholders. In order to meet this commitment and to ensure  regulatory governance is maintained,  the Non-executive Directors believe that it is appropriate for a number of the key business leaders within the Company to be members of the Board and collectively responsible for the long-term success of the Company.  Following a comprehensive review of the Board's composition by the Chairman and the Non-executive Directors, on 8 June 2012 Mike Chilton, Paul Hodges, Joe Nally and Jeremy Warner Allen were all appointed Executive Directors of the Company.

Principal risks and uncertainties

The principal risks and uncertainties Cenkos currently faces, and how these are managed, are outlined in our 2011 Annual Report and Accounts. As you would expect, the fundamental risk is that Cenkos' income is dependent on the health of the financial markets and in particular the economic conditions of the UK. Our business model has been designed to minimise the impact of lower revenues by ensuring that performance related pay also falls to help compensate for this. In addition to the economic risks noted above, the key risk areas that could impact the Group's future performance, and how they are managed, are categorised as follows:

-       Reputational risk;

-       Operational risk, including regulatory risk, people risk and litigation risk;

-       Credit risk; and

-       Market risk and liquidity risk.

Recent conditions in the Eurozone have resulted in a higher risk of disruption and business risk from high currency volatility and /or the potential of an exit of one or more countries from the Euro. Cenkos has limited direct exposure to the Eurozone as the primary economic environment in which Cenkos operates is the UK and the majority of its transactions are in UK based equities.

Aside from the health of UK equity markets and the disposals of CCIL and CFM, the other key changes that may impact Cenkos' risk profile over the next six months, and how they are being managed, relate to:

-       The pace of change in the regulatory environment - Cenkos continues to focus heavily on prudential risks to ensure the appropriate systems and controls, reporting, capital and liquidity requirements, resources and culture are all in place to meet the ongoing obligations of an FSA regulated (BIPRU Investment) firm; and

-       Ensuring that we continue to retain and attract high quality staff. The recent Board changes are designed to ensure key business heads are more fully represented on the Board, and we continue to look to recruit staff who are attracted by our culture and business model.

Outlook

Whilst not immune to events in the general economy, our pipeline remains strong and we have made an encouraging start to the second half of 2012.

Jim Durkin

Chief Executive Officer

25 September 2012

Responsibility statement

We confirm that to the best of our knowledge:

a) the condensed set of financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit of Cenkos Securities plc and the undertakings included in the consolidation taken as a whole as at 30 June 2012, and

b) the interim management report set out in the Business Review includes a fair review of the development and performance of the business and the position of Cenkos Securities plc and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

Forward-looking statements

These financial statements contain forward-looking statements with respect to the financial condition, results, operations and businesses of Cenkos Securities plc. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. Such statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by forward-looking statements and forecasts.  Forward-looking statements and forecasts are based on the Directors' current view and information known to them at the date of this statement. The Directors do not make any undertaking to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Condensed consolidated income statement for the six month period ended 30 June 2012
					Restated	Restated
				Unaudited	Unaudited	Audited
				1 January	1 January	1 January
				2012 to	2011 to	2011 to
			Note	30 June	30 June	31 December
				2012	2011	2011
				£ 000's	£ 000's	£ 000's
Continuing operations
Revenue				20,238	25,095	37,360
Administrative expenses				(16,882)	(20,246)	(32,556)
Operating profit				3,356	4,849	4,804
Investment income - interest receivable				182	136	319
Interest expense				(9)	-	(8)
Profit before tax from continuing operations for the period				3,529	4,985	5,115
Tax			3	(999)	(1,440)	(1,537)
Profit after tax from continuing operations for the period				2,530	3,545	3,578
Discontinued operations
Profit after tax for the period from discontinued operations			4	3,478	380	433
Profit for the period				6,008	3,925	4,011
Attributable to:
Equity holders of the parent				5,920	3,737	3,711
Non-controlling interests				88	188	300
				6,008	3,925	4,011
Earnings per share
From continuing operations
Basic			6	3.57p	4.98p	5.02p
Diluted			6	3.57p	4.97p	5.02p
From continuing and discontinued operations
Basic			6	8.34p	5.24p	5.21p
Diluted			6	8.34p	5.24p	5.21p
Condensed consolidated statement of comprehensive income
for the six month period ended 30 June 2012
				Unaudited	Unaudited	Audited
				1 January	1 January	1 January
				2012 to	2011 to	2011 to
				30 June	30 June	31 December
				2012	2011	2011
				£ 000's	£ 000's	£ 000's
Profit for the period				6,008	3,925	4,011
Available-for-sale financial assets
Gains/(losses) arising during the period				250	-	-
Total comprehensive income for the period				6,258	3,925	4,011
Attributable to:
Equity holders of the parent				6,170	3,737	3,711
Non-controlling interests				88	188	300
				6,258	3,925	4,011
Condensed consolidated statement of financial position as at 30 June 2012
				Unaudited	Unaudited	Audited
			Notes	30 June	30 June	31 December
				2012	2011	2011
				£ 000's	£ 000's	£ 000's
Non-current assets
Property, plant and equipment			7	699	1,184	1,133
Available-for-sale financial assets			4	1,250	-	-
Deferred tax asset				164	108	97
Trade and other receivables				3,751	4,924	3,839
				5,864	6,216	5,069
Current assets
Trade and other receivables				24,375	49,390	21,800
Other current financial assets				7,354	10,732	10,263
Cash and cash equivalents			8	22,880	19,230	14,010
				54,609	79,352	46,073
Total assets				60,473	85,568	51,142
Current liabilities
Trade and other payables				(28,623)	(54,227)	(23,518)
Other current financial liabilities				(2,767)	(3,049)	(2,539)
				(31,390)	(57,276)	(26,057)
Net current assets				23,219	22,076	20,016
Total liabilities				(31,390)	(57,276)	(26,057)
Net assets				29,083	28,292	25,085
Equity
Share capital			9	728	728	728
Own shares				(2,413)	(2,147)	(2,190)
Available-for-sale reserve				250	-	-
Retained earnings				30,518	28,135	25,142
Equity attributable to equity holders of the parent				29,083	26,716	23,680
Non-controlling interests				-	1,576	1,405
Total equity				29,083	28,292	25,085
Condensed consolidated cash flow statement for the six month period ended 30 June 2012
				Unaudited	Unaudited	Audited
				1 January	1 January	1 January
				2012 to	2011 to	2011 to
			Notes	30 June	30 June	31 December
				2012	2011	2011
				£ 000's	£ 000's	£ 000's
Profit for the period				6,008	3,925	4,011
Adjustments for:
Net finance income				(173)	(138)	(315)
Tax expense				999	1,405	1,549
Depreciation of property, plant and equipment				153	179	362
Profit on sale of fixed assets				-	-	(1)
Attributable tax expense from discontinued operations				-	-	(105)
Gain on disposal of discontinued operation and fair value of interest retained before deduction of non-controlling interest				(1,734)	-	296
Non-controlling interest in net assets sold			4	(1,568)	-	(162)
Shares and options received in kind				(1,089)	(608)	(607)
Share-based payment expense				241	239	195
Operating cash flows before movements in working capital				2,837	5,002	5,223
Decrease in net trading investments				4,169	406	365
(Increase) / decrease in trade and other receivables				(38,156)	(22,610)	6,138
Increase / (decrease) in trade and other payables				40,664	12,576	(17,376)
Net cash inflow from operating activities				9,514	(4,626)	(5,650)
Interest paid				(9)	-	(9)
Tax paid				(618)	(1,098)	(2,172)
Net cash inflow from operating activities				8,887	(5,724)	(7,831)
Investing activities
Interest received				97	24	124
Acquisition of interest in a subsidiary by a subsidiary				-	(8)	(8)
Net proceeds from the sale of fixed assets				-	5	5
Purchase of property, plant and equipment				(63)	(436)	(568)
Cash flow from sale of discontinued operations, net of cash disposed			4	881	-	-
Net cash generated from investing activities				915	(415)	(447)
Financing activities
Dividends paid				(709)	(2,850)	(5,699)
Distributions made to non-controlling interests				-	(195)	(345)
Payments in relation to pre-IPO share options				-	-	(69)
Acquisition of own shares				(223)	-	(43)
Acquisition of own shares by a subsidiary				-	(54)	(24)
Net cash used in financing activities				(932)	(3,099)	(6,180)
Net increase / (decrease) in cash and cash equivalents				8,870	(9,238)	(14,458)
Cash and cash equivalents at beginning of period				14,010	28,468	28,468
Cash and cash equivalents at end of period				22,880	19,230	14,010

Condensed consolidated statement of changes in equity for the six month period ended 30 June 2012
	Share capital	Own shares	Revaluation reserve	Retained earnings	Total	Minority Interests	Total
	£ 000's	£ 000's	£ 000's	£ 000's	£ 000's	£ 000's	£ 000's
Attributable to equity holders of the parent at 1 January 2011	728	(2,147)	-	27,134	25,715	1,540	27,255
Profit for the period	-	-	-	3,737	3,737	188	3,925
Total comprehensive income for the period	-	-	-	3,737	3,737	188	3,925
Increase of investment in subsidiary	-	-	-	(63)	(63)	55	(8)
Subsidiary's acquisition of own shares	-	-	-	-	-	(54)	(54)
Credit to equity for equity settled share-based payments	-	-	-	197	197	42	239
Deferred tax on share-based payments	-	-	-	(20)	(20)	-	(20)
Dividends paid	-	-	-	(2,850)	(2,850)	(195)	(3,045)
Attributable to equity holders of the parent at 30 June 2011	728	(2,147)	-	28,135	26,716	1,576	28,292
Profit for the period	-	-	-	(26)	(26)	112	86
Total comprehensive income for the period	-	-	-	(26)	(26)	112	86
Own shares acquired in the period	-	(43)	-	-	(43)	-	(43)
Subsidiary's acquisition of own shares	-	-	-	-	-	30	30
Share of profit/(loss) from discontinued operation attributable to non-controlling interests	-	-	-	-	-	(162)	(162)
Credit to equity for equity-settled share-based payments	-	-	-	(44)	(44)	-	(44)
Payments in relation to pre-IPO share options	-	-	-	(69)	(69)	-	(69)
Deferred tax on share-based payments	-	-	-	(6)	(6)	-	(6)
Dividends paid	-	-	-	(2,849)	(2,849)	(150)	(2,999)
Attributable to equity holders of the parent at 31 December 2011	728	(2,190)	-	25,141	23,679	1,406	25,085
Retained profit for the period	-	-	-	5,920	5,920	88	6,008
Revaluation of available-for-sale investments	-	-	250	-	250	-	250
Total comprehensive income for the period	-	-	250	5,920	6,170	88	6,258
Own shares acquired in the period	-	(223)	-	-	(223)	-	(223)
Share of profit/(loss) from discontinued operation attributable to non-controlling interests	-	-	-	-	-	(1,568)	(1,568)
Credit to equity for equity settled share-based payments	-	-	-	138	138	102	240
Other reserve movements	-	-	-	28	28	(28)	-
Dividends paid	-	-	-	(709)	(709)	-	(709)
At 30 June 2012	728	(2,413)	250	30,518	29,083	-	29,083

Notes to the condensed consolidated financial statements
1. Accounting policies
General Information
Cenkos Securities plc (the "Company" together with its subsidiaries, the "Group") is a company incorporated in United Kingdom under the Companies Act 2006 (Company Registration No. 05210733). The Group's principal activity is as an institutional broker to growth companies based in the UK and abroad. These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the Group operates.
Basis of Accounting
The condensed set of financial statements for the six months ended 30 June 2012 have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2011. The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2011.
Adoption of new and revised standards
During the period, a number of amendments to IFRS became effective and were adopted by the Group, none of which had a material impact on the Group's net cash flows, financial position, Consolidated statement of comprehensive income or earnings per share.
The financial information contained in this interim report does not constitute the Company's statutory accounts within the meaning of section 434 of the Companies Act 2006. The comparative information contained in this report for the year ended 31 December 2011 does not constitute the statutory accounts for that financial period. Those accounts have been reported on by the Company's auditors Ernst & Young LLP, and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The interim financial statements are unaudited and were approved by the Board of Directors on 25 September 2012.
The preparation of financial statements in conformity with generally accepted accounting principles 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. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results ultimately may differ from those of estimates.
These financial statements have been prepared on the historical cost basis, except for the revaluation of certain financial instruments.
Going Concern
The Group's business activities, together with the factors likely to affect its future development and performance, the Group's principal risks and uncertainties and the financial position of the Group, are set out in the Group's Annual Report and Financial Statements for the year ended 31 December 2011. The Directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, the Directors continue to adopt a going concern basis in preparing the interim financial statements.
2. Business and geographical segments
IFRS 8, Operating Segments
IFRS 8 Operating Segments requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Executive Officer to monitor segment performance and to allocate resources between segments.
Services from which reportable segments derive their revenues
Based on its internal management reporting, the Group has identified three reportable segments and the following products and services provided by these segments:
Corporate Broking and Advisory
This segment provides corporate finance, corporate broking and market making services to growth companies and investment funds.
Institutional Equities
The institutional equities team currently provides research-driven investment recommendations to institutional clients.
Fund and Wealth Management
Offshore wealth management and stock broking services were provided through CCIL and our fund management business was provided by Cenkos Fund Managers Limited. On 1 February 2012, the Group sold its entire holding of shares in Cenkos Fund Managers Limited and on 2 April 2012, the Group sold 80% of its 50% holding in CCIL. The results of these companies comprise the entire performance of this segment and as the Group's remaining interest in CCIL is held as a trade asset and the results are not consolidated, this segment has been treated as a discontinued operation. These transactions are fully described in note 4.
An analysis of the Group's revenue and result by reportable segment is as follows:
					1 January 2012 to 30 June 2012
					Corporate						Fund			Less:
			Broking and						Institutional		and Wealth			Discontinued			Group
					Advisory				Equities		Management			Operations			Total
Segment revenues and results					£ 000's				£ 000's		£ 000's			£ 000's			£ 000's
Corporate finance					12,895				-		-			-			12,895
Corporate broking & market making					4,736				244		-			-			4,980
Research fees & commission					1,351				1,012		-			-			2,363
Management fees & stockbroking services					-				-		1,520			(1,520)			-
Segment revenue					18,982				1,256		1,520			(1,520)			20,238
Administrative expenses					(11,234)				(917)		(1,337)			1,337			(12,151)
Segment results					7,748				339		183			(183)			8,087
Unallocated Administrative expenses																	(4,731)
Operating Profit																	3,356
Investment income - interest receivable																	182
Interest expense																	(9)
Profit before tax																	3,529
Tax																	(999)
Profit after tax for the period from discontinued operations (Fund and Wealth Management) *																	3,478
Profit for the year																	6,008
* See note 4 for details.
2. Business and geographical segments (continued)
									30 June 2012
Corporate									Fund		Less:
Broking and					Institutional				and Wealth		Discontinued						Group
			Advisory		Equities				Management		Operations			Unallocated			Total
			£ 000's		£ 000's				£ 000's		£ 000's			£ 000's			£ 000's
Other segment information:
Assets			9,719		-				-		-			50,754			60,473
Liabilities			(10,447)		(174)				-		-			(20,769)			(31,390)
Depreciation and amortisation			-		-				-		-			153			153
Additions to non-current assets			-		-				-		-			63			63
Segment assets have been allocated on the basis of the internal reports received by the Chief Executive Officer for the purposes of monitoring segment performance and allocating resources between segments.
									1 January 2011 to 30 June 2011
					Corporate						Fund			Less:
			Broking and						Institutional		and Wealth			Discontinued			Group
					Advisory				Equities		Management			Operations			Total
Segment revenues and results					£ 000's				£ 000's		£ 000's			£ 000's			£ 000's
Corporate finance					18,280				241		-			-			18,521
Corporate broking & market making					4,025				318		-			-			4,343
Research fees & commission					1,520				711		-			-			2,231
Management fees & stockbroking services					-				-		3,440			(3,440)			-
Segment revenue					23,825				1,270		3,440			(3,440)			25,095
Administrative expenses					(14,704)				(1,136)		(3,096)			3,096			(15,840)
Segment results					9,121				134		344			(344)			9,255
Unallocated administrative expenses																	(4,406)
Operating Profit																	4,849
Investment income - interest receivable																	136
Interest expense																	-
Profit before tax																	4,985
Tax																	(1,440)
Loss after tax for the period from discontinued operations (Fund and Wealth Management)																	380
Profit for the year																	3,925
									30 June 2011
			Corporate						Fund		Less:
Broking and					Institutional				and Wealth		Discontinued						Group
			Advisory		Equities				Management		Operations			Unallocated			Total
			£ 000's		£ 000's				£ 000's		£ 000's			£ 000's			£ 000's
Other segment information:
Assets			13,854		-				16,558		-			55,156			85,568
Liabilities			(12,947)		(33)				(13,455)		-			(30,841)			(57,276)
Depreciation and amortisation			-		-				1		-			178			179
Additions to Non-current assets			-		-				-		-			436			436
									1 January 2011 to 31 December 2011
					Corporate						Fund			Less:
			Broking and						Institutional		and Wealth			Discontinued			Group
					Advisory				Equities		Management			Operations			Total
Segment revenues and results					£ 000's				£ 000's		£ 000's			£ 000's			£ 000's
Corporate finance					25,754				239		-			-			25,993
Corporate broking & market making					6,665				548		-			-			7,213
Research fees & commission					2,760				1,394		-			-			4,154
Management fees & stockbroking services					-				-		6,745			(6,745)			-
Segment revenue					35,179				2,181		6,745			(6,745)			37,360
Administrative expenses					(18,995)				(1,638)		(6,226)			6,226			(20,633)
Segment results					16,184				543		519			(519)			16,727
Unallocated administrative expenses																	(11,923)
Operating Profit																	4,804
Investment income - interest receivable																	319
Interest expense																	(8)
Profit before tax																	5,115
Tax																	(1,537)
Loss after tax for the period from discontinued operations (Fund and Wealth Management)																	433
Profit for the year																	4,011
									31 December 2011
			Corporate						Fund		Less:
Broking and					Institutional				and Wealth		Discontinued						Group
			Advisory		Equities				Management		Operations			Unallocated			Total
			£ 000's		£ 000's				£ 000's		£ 000's			£ 000's			£ 000's
Other segment information:
Assets			13,475		-				8,141		(300)			29,826			51,142
Liabilities			(8,784)		(10)				(4,984)		4			(12,283)			(26,057)
Depreciation and amortisation			21		4				85		(1)			253			362
Additions to non-current assets			-		-				368		-			200			568
Segment assets have been allocated on the basis of the internal report received by the Chief Executive Officer for the purposes of monitoring segment performance and allocating resources between segments.
An analysis of the Group's revenue and result by geographical location is as follows:
Geographical information											1 January 2012 to 30 June 2012
											United			Channel			Group
											Kingdom			Islands			Total
											£ 000's			£ 000's			£ 000's
Revenue from continuing operations											20,238			-			20,238
Revenue from discontinued operations											67			1,453			1,520
Revenue from continuing and discontinued operations (a)											20,305			1,453			21,758
Non-current assets											5,864			-			5,864
											1 January 2011 to 30 June 2011
											United			Channel			Group
											Kingdom			Islands			Total
											£ 000's			£ 000's			£ 000's
Revenue from continuing operations											25,095			-			25,095
Revenue from discontinued operations											220			3,220			3,440
Revenue from continuing and discontinued operations (a)											25,315			3,220			28,535
Non-current assets											5,832			384			6,216
Certain items have been re-classified from those previously reported.
											1 January 2011 to 31 December 2011
											United			Channel			Group
											Kingdom			Islands			Total
											£ 000's			£ 000's			£ 000's
Revenue from continuing operations											37,360			-			37,360
Revenue from discontinued operations											402			6,343			6,745
Revenue from continuing and discontinued operations (a)											37,762			6,343			44,105
Non-current assets											4,712			357			5,069
(a) Revenues are attributed on the basis of the entities location. Discontinued operations were located in both the United Kingdom and the Channel Islands.
Certain items have been re-classified from those previously reported.
Major clients
In the 6 month period to 30 June 2012, one of the Group's clients contributed more than 10% of the Group's revenue. The amount was £2.99 million, which is reflected in the Corporate Broking and Advisory segment's revenue (6 months to 2011: no client contributed more than 10% of the Group's revenue).
3. Tax												1 January			1 January		1 January
												2012 to			2011 to		2011 to
												30 June			30 June		31 December
The tax charge comprises:												2012			2011		2011
												£ 000's			£ 000's		£ 000's
Current tax
United Kingdom corporation tax at 24.5% (2011: 26.5%) based on the profit for the period												974			1,440		1,473
Overseas tax charge borne by subsidiaries operating in other jurisdictions												-			-		-
Adjustment in respect of prior period
United Kingdom corporation tax at 24.5% (2011: 26.5%)												92			5		63
Total current tax												1,066			1,445		1,536
Deferred tax
Credit on account of temporary differences												(79)			(43)		(94)
Charge on account of temporary differences												12			38		95
Total deferred tax												(67)			(5)		1
Total tax on profit on ordinary activities from continuing operations												999			1,440		1,537
The tax expense in the income statement is disclosed as follows:
Income tax expense on continuing operations												999			1,440		1,537
Income tax expense / (credit) on discontinued operations												5			(35)		(93)
												1,004			1,405		1,444
The tax charge for the period differs from that resulting from applying the standard rate of UK corporation tax of 24.5% (2011: 26.5%) to the profit before tax for the reasons set out in the following reconciliation.
												1 January			1 January		1 January
												2012 to			2011 to		2011 to
												30 June			30 June		31 December
												2012			2011		2011
												£ 000's			£ 000's		£ 000's
Profit before tax from continuing operations												3,529			4,985		5,115
Profit before tax from discontinued operations												3,483			345		524
Profit before tax from continuing and discontinued operations												7,012			5,330		5,639
Tax on profit on ordinary activities at the UK corporation tax rate of 24.5% (2011: 26.5%)												1,718			1,412		1,494
Tax effect of:
Expenses that are not deductible in determining taxable profits												68			90		172
Non-taxable gain on disposal of discontinued operations												(848)			-		-
Different tax rates of subsidiaries operating in other jurisdictions												-			(124)		(226)
Income not subject to corporation tax												(33)			(27)		(61)
Expenses not allowable on disposal of discontinued operations												-			-		(13)
Adjustment for loss relief not claimed												7			49		15
Adjustment in respect of prior period												92			5		63
Tax expense for the period												1,004			1,405		1,444
In addition to the amount credited to the income statement, deferred tax relating to share-based payments amounting to nil has been charged directly to equity (H1 2011: £20,333).
												1 January			1 January		1 January
												2012 to			2011 to		2011 to
												30 June			30 June		31 December
												2012			2011		2011
												£ 000's			£ 000's		£ 000's
Deferred tax
Arising on share-based payments												-			(20)		(26)
Total income tax recognised directly in equity												-			(20)		(26)
4. Discontinued operations
On 1 February 2012, the Group disposed of its entire holding in Cenkos Fund Managers Limited, which carried out all of the Group's onshore fund management activity, for the consideration of £1. This operation has an investment management agreement with an AIM-quoted fund. The fund has been put into run off and although investment management fees continue to be generated, Cenkos Fund Managers Limited made a loss in 2011. The disposal was effected in order to remove the impact of future losses from the Group. The decision to dispose of Cenkos Fund Managers Limited was taken in November 2011 and as at 31 December 2011, Cenkos Fund Managers Limited was classified as held for sale and as a discontinued operation, given it was a separate major line of business.
Following a strategic review Cenkos decided that CCIL was not core to Cenkos business strategy and operations. On 2 April 2012, the Group completed the disposal of 80% of its 50% holding in CCIL, which carried out all of the Group's offshore wealth management and stock broking activity, for a consideration of £4 million. This operation is based in the Channel Islands.
The results of the discontinued operations, which have been included in the consolidated income statement until the date of sale, were as follows:
												1 January			1 January		1 January
												2012 to			2011 to		2011 to
												30 June			30 June		31 December
												2012			2011		2011
												£ 000's			£ 000's		£ 000's
Revenue												1,520			3,440		6,745
Administrative expenses												(1,337)			(3,096)		(6,226)
Operating profit												183			344		519
Investment income - interest receivable												1			1		6
Interest expense												(3)			-		(1)
Profit before tax												181			345		524
Attributable tax expense												(5)			35		93
Gain on disposal of discontinued operations												2,616			-		(184)
Attributable tax expense												-			-		-
Gain on fair value of retained interest												686			-		-
Profit after tax for the period from discontinued operations												3,478			380		433
												Cenkos			Cenkos
												Channel			Fund
												Islands			Managers
												Limited			Limited		Total
												£ 000's			£ 000's		£ 000's
Cash inflow on sale
Consideration received												4,000			-		4,000
Legal fees												(81)			(44)		(125)
Cash disposed in sale of discontinued operations												(2,736)			(258)		(2,994)
												1,183			(302)		881
The major classes of assets and liabilities disposed of were as follows:
Property, plant and equipment												344			-		344
Trading investments - long positions												56			-		56
Trade and other receivables												35,695			58		35,753
Cash and cash equivalents												2,736			258		2,994
Trade and other payables												(35,694)			(312)		(36,006)
												3,137			4		3,141
Adjustment for interest retained in CCIL *												(314)			-		(314)
Adjustment for non-controlling interest in net assets sold												(1,566)			(2)		(1,568)
Parental share of net assets disposed												1,257			2		1,259
Gain on disposal of discontinued operations and fair value of interest retained
Consideration received												4,000			-		4,000
Legal fees												(81)			(44)		(125)
Less: Parental share of net assets disposed												(1,257)			(2)		(1,259)
Gain on disposal of discontinued operations												2,662			(46)		2,616
Gain on fair value of interest retained												686			-		686
												3,348			(46)		3,302
As Cenkos Fund Managers Limited was sold prior to 30 June 2012, the assets and liabilities classified as part of a disposal group held for sale as at 31 December 2011 are no longer included in the statement of financial position.
* The adjustment above reflects the 10% interest Cenkos Securities plc retains in the shares of CCIL. This is classified in the balance sheet as an available-for-sale financial asset. The shares are quoted on the Channel Islands Stock Exchange and have been marked to market at a carrying value of £1.25 million as at 30 June 2012.
Earnings per share from discontinued operations												1 January			1 January		1 January
												2012 to			2011 to		2011 to
												30 June			30 June		31 December
												2012			2011		2011
												£ 000's			£ 000's		£ 000's
Basic												4.78p			0.27p		0.19p
Diluted												4.78p			0.27p		0.19p
5. Dividends												1 January			1 January		1 January
												2012 to			2011 to		2011 to
												30 June			30 June		31 December
												2012			2011		2011
												£ 000's			£ 000's		£ 000's
Amounts recognised as distributions to equity holders in the period:
Final dividend for the year ended December 2011 of 1p (December 2010: 4p) per share												709			2,850		2,850
Interim dividend for the period to June 2011 of 4p (June 2010: 2p, November 2010: 2p) per share												-			-		2,849
												709			2,850		5,699
The proposed interim dividend for 30 June 2012 of 3.5p (30 June 2011: 4.0p) per share was approved by the Board on 25 September 2012 and has not been included as a liability as at 30 June 2012. The dividend will be payable on 15 November 2012 to all shareholders on the register at 12 October 2012.
6. Earnings per share												1 January			1 January		1 January
The calculation of the basic and diluted earnings per share is based on the following data:												2012 to			2011 to		2011 to
												30 June			30 June		31 December
												2012			2011		2011
												£ 000's			£ 000's		£ 000's
Earnings from continuing and discontinued operations
The calculation of the basic and diluted earnings per share is based on the following data:
Earnings
Earnings for the purpose of basic earnings per share being net profit attributable to equity holders of the parent												5,920			3,737		3,711
Effect of dilutive potential ordinary shares:
Share options												-			-		-
Earnings for the purpose of diluted earnings per share												5,920			3,737		3,711
												No.			No.		No.
Number of shares
Weighted average number of ordinary shares for the purpose of calculating basic earnings per share												70,963,336			71,252,420		71,250,584
Effect of dilutive potential ordinary shares:
Share options												-			40,500		-
Weighted average number of ordinary shares for the purpose of calculating diluted earnings per share												70,963,336			71,292,920		71,250,584
The weighted average number of shares considered for the period also includes the total number of B shares, even though they are partly paid shares, as these shares are entitled to a full dividend payout.
The Board has agreed to continue to fund the Company's Employee Benefit Trust (EBT) so that it can make market purchases in Cenkos Securities plc shares as and when market conditions allow. During the period, 394,750 ordinary shares were purchased for an aggregate consideration of £226,000. As at 30 June 2012 the EBT held a total of 1,933,500 ordinary shares at an aggregate consideration of £2.41 million, as shown in the table below. These shares are held by the trust in treasury and have been excluded from the weighted average number of shares calculation up to this date.
												30 June			30 June		31 December
												2012			2011		2011
Number of shares held by the Company's EBT
At 1 January												1,583,750			1,518,750		1,518,750
Acquired during the period												349,750			-		65,000
												1,933,500			1,518,750		1,583,750
												1 January			1 January		1 January
												2012 to			2011 to		2011 to
												30 June			30 June		31 December
												2012			2011		2011
												£ 000's			£ 000's		£ 000's
Earnings from continuing operations
Earnings for the purpose of basic earnings per share being net profit attributable to equity holders of the parent												5,920			3,737		3,711
Adjustment to exclude parent share of discontinued operations												(3,390)			(192)		(133)
Earnings from continuing operations for the purpose of basic earnings per share excluding discontinued operations												2,531			3,545		3,578
Effect of dilutive potential ordinary shares:
Share options												-			-		-
Earnings from continuing operations for the purpose of diluted earnings per share excluding discontinued operations												2,531			3,545		3,578
The denominators used are the same as those detailed above for both basic and diluted earnings per share from continuing and discontinued operations.
7. Property, plant & equipment
During the period, the Group spent approximately £75,694 (30 June 2011: £435,506, 31 December 2011: £568,971) on property, plant and equipment. This mostly related to the cost of IT equipment.
8. Cash and cash equivalents
The cash balance includes £0.5 million (30 June 2011: £2.3 million, 31 December 2011: £0.5 million) held in trust against identified liabilities of £0.5 million (30 June 2011: £0.9 million, 31 December 2011: £0.5 million) relating to the cancellation of the Company's entire share premium account on 17 November 2010, which was used to provide distributable reserves for the Company.
9. Share capital
The issued share capital as at 30 June 2012 amounted to £727,771 (30 June 2011: £727,711, 31 December 2011: £727,711).
10. Financial instruments
Fair value hierarchy All financial instruments carried at fair value are categorised in three categories, defined as follows: Level 1 - Quoted market prices Level 2 - Valuation techniques (market observable) Level 3 - Valuation techniques (non-market observable) As at 30 June 2012, the Group held the following financial instruments measured at fair value:
										30 June 2012
										Level 1		Level 2			Level 3		Total
										£ 000's		£ 000's			£ 000's		£ 000's
Available-for-sale financial assets										1,250		-			-		1,250
Financial assets at FVTPL:
Derivative financial assets										-		231			-		231
Non-derivative financial assets held for trading										6,980		-			-		6,980
										6,980		231			-		7,211
Held to maturity investments										143		-			-		143
										7,123		231			-		7,354
										8,373		231			-		8,604
Financial liabilities at FVTPL:
Non-derivative financial liabilities held for trading										2,767		-			-		2,767
There were no transfers between Level 1 and 2 during the period.
										30 June 2011
										Level 1		Level 2			Level 3		Total
Financial assets at FVTPL:										£ 000's		£ 000's			£ 000's		£ 000's
Derivative financial assets										-		341			-		341
Non-derivative financial assets held for trading										9,334		876			-		10,210
										9,334		1,217			-		10,551
Held to maturity investments										181		-			-		181
										9,515		1,217			-		10,732
										9,515		1,217			-		10,732
Financial liabilities at FVTPL:
Non-derivative financial liabilities held for trading										3,049		-			-		3,049
There were no transfers between Level 1 and 2 during the period.
										31 December 2011
										Level 1		Level 2			Level 3		Total
Financial assets at FVTPL:										£ 000's		£ 000's			£ 000's		£ 000's
Derivative financial assets										-		103			-		103
Non-derivative financial assets held for trading										9,952		-			-		9,952
										9,952		103			-		10,055
Held to maturity investments										208		-			-		208
										10,160		103			-		10,263
										10,160		103			-		10,263
Financial liabilities at FVTPL:
Non-derivative financial liabilities held for trading										2,539		-			-		2,539
There were no transfers between Level 1, 2 and 3 during the period. There have been no changes in the classification of the financial assets as a result of a change in the purpose or use of those assets.
11. Contingent liabilities
A cash-settled shadow equity scheme was set up in 2009 for the Cenkos team based in Edinburgh. The Company re-organised this office in the second half of 2010 resulting in the cessation of this arrangement and a number of staff leaving the Company. A provision for this re-organisation was established in 2010 to cover any resultant liabilities. The Company remains in dispute with a former member of staff on this issue. This former member of staff has issued a High Court writ against the Company, claiming £3.04m. After taking legal advice, the Board believes that the size of this claim is excessive and that an appropriate provision has already been made for potential liabilities due. The Company intends to defend any such claim vigorously. As noted in our 2011 Annual Report and Financial Statements, certain underlying clients of CCIL had exposure to MF Global UK Limited when that company entered the Special Administration Regime on 31 October 2011. These exposures were subsequently settled in August 2012 with no material financial impact on CCIL or Cenkos.
12. Related party transactions.
Transactions with related parties are made at arm's length. Transactions or balances between the Company and its subsidiaries, which are related parties have been eliminated on consolidation and, in accordance with IAS 24, are not disclosed in this note. There have been some changes to related parties during the six months to 30 June 2012. A number of these related parties were appointed to the Board of Cenkos in June 2012. The Board now includes all employees considered to be key management personnel.
The compensation of the key management personnel of the Group (including the Directors) and their interests in the shares and options over the shares of Cenkos Securities plc were as follows:
												1 January			1 January		1 January
												2012 to			2011 to		2011 to
												30 June			30 June		31 December
												2012			2011		2011
												£ 000's			£ 000's		£ 000's
Aggregate emoluments												924			3,691		5,904
The fall in aggregate emoluments between H1 2011 and H1 2012 reflects timing differences associated with the payment of performance related pay. There were no Directors who were members of any Company pension scheme as at the period end (2011: none).
Related party interests in ordinary and B shares of Cenkos Securities plc
												30 June			30 June		31 December
												2012			2011		2011
												No.			No.		No.
Number of shares												14,526,430			9,004,362		14,679,362
Percentage interest												20%			12%		20%
Related party interests in share options				1 January 2012 to						1 January 2011 to					1 January 2011 to
				30 June 2012						30 June 2011					31 December 2011
				Number				Weighted		Number		Weighted			Number		Weighted
								average				average					average
								exercise				exercise					exercise
								price				price					price
Outstanding at beginning of the year				2,793,828				1.18		4,220,874		1.33			4,220,874		1.33
Adjustment arising from the reclassification of related parties				(2,615,118)				1.15		-		-			-		-
Granted / (lapsed) during the period				1,000,000				1.00		-		-			(1,427,046)		1.61
Outstanding at the end of the year				1,178,710				1.10		4,220,874		1.33			2,793,828		1.18
Among the Group's transactions with key management personnel as of 30 June 2012 were loans of £507,600 relating to the B shares in the Company (2011: £664,924). There were no other outstanding balances or bad debt provisions for any related party balances as at 30 June 2012, and no related party balances have been written off during the period (2011: nil).
13. Events after the reporting period
Aside from the settlement of CCIL's clients' exposure to MF Global UK Limited (see note 11 above), there were no material events to report on that occurred between the balance sheet date and the date at which the Directors signed this Interim Report.
	Officers and professional advisors
	Directors Gerry Aherne Mike Chilton Jim Durkin Jeff Hewitt Paul Hodges Dr Anthony Hotson Joe Nally Jeremy Warner Allen Company Secretary	(Non-executive Chairman) (Finance Director) (Chief Executive Officer) (Non-executive Director) (Executive Director) (Non-executive Director) (Executive Director) (Executive Director) Stephen Doherty
	Financial Calendar March April September November	Year end results announced Final dividend paid Half year results announced Interim dividend paid
	Company Registration Number and Country of Incorporation 05210733, England & Wales Registered Office 6.7.8 Tokenhouse Yard London EC2R 7AS Bankers HSBC West End Corporate Banking Centre 70 Pall Mall London SW1Y 5EZ Solicitors Travers Smith 10 Snow Hill London EC1A 2AL						Auditors Ernst & Young LLP 1 More London Place London SE1 2AF Registrars Capita Registrars The Registry 34 Beckenham Road Beckenham Road Kent BR3 4TU Nominated Adviser and Broker HSBC 8 Canada Square London E14 5HQ Website www.cenkos.com

 

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