Interim Results

RNS Number : 8133D

Cenkos Securities PLC

19 September 2008

 



Cenkos Securities plc

Unaudited Interim Results for the six months ended 30 June 2008

Highlights

Financial Highlights

• Revenue is £18.9m from £28.4m in the prior period.
  
  

• Profit before tax for the period is £5.5m from £11.6m. 
  
  

• Basic EPS is 5.4 pence per share from 11.2 pence per share.  
  
  

• Diluted EPS is 5.4 pence per share from 11.1p per share. 
   

• The Board has declared an interim dividend of 5p per share. The level of dividend payout reflects the Company's dividend policy of only retaining further profits when the Board considers that attractive investment opportunities have been identified, which should be financed by the Group's internal resources.

  This year's interim dividend of 5p per share (2007: 10p per share) cannot be compared on a like for like basis with last year's interim dividend as that reflected the fact that no final dividend was paid for the period ended    31 December 2006.

Business highlights

• Continued success in attracting new institutional and corporate clients in an increasingly competitive market.

• Continued expansion by organic growth of our existing teams, particularly in our 50% owned wealth management operations based in the Channel Islands.

• Voted AIM broker of the year at the 2008 Growth Company Awards.

Andrew Stewart - Chief Executive Officer commented:

'Present market conditions are very challenging and have inevitably affected the markets in which we trade. Against this background I am pleased with these set of results as they show that our business model is robust and demonstrates the quality of the teams that have joined us over the last few years. 

 I believe that these difficult conditions will continue for some time as the effects of recent events unfold. However, I have confidence that we will continue to trade profitably and indeed capitalise on opportunities that may occur in the coming months'.

Andrew Stewart - Chief Executive Officer        020 7397 8900

Further information on the Group and its activities is available on the Group's website www.cenkos.com  Chairman's Statement

I am pleased to announce a relatively robust set of interim results when compared to our peer group for the first half of 2008. Although revenue has decreased from £28.4m to £18.9m, I believe this represents a considerable achievement given that we, along with many commentators, consider that the market conditions faced during the period were very difficult. The strength of these results, I believe, reflects the fact that we have very high quality teams within the business and that the basic business model of Cenkos works in the good times and the bad times. According to statistics released by London Stock Exchange we ranked third in terms of money raised on AIM by brokers or NOMADS and ranked second in terms of the number of companies brought to the AIM market in the six month period to 30 June 2008. Given the amount of time Cenkos has been trading this, in my view, is a considerable achievement.  During the period our teams completed 12 transactions raising some £596m (2007: £1.2 bn) of funds for our clients. These fundraisings covered a number of different industry sectors including natural resources, financial and distribution services.

At 30 June 2008 we had a corporate client base of 81 quoted companies (2007: 65) with a combined market capitalisation of approximately £10 billion, a small increase on last year (2007 £9.2 bn); this represents a net increase of 16 clients during the period. It is very much the Group's intention to continue to enlarge this client list without compromising the quality of our client base. We are continually looking to recruit further teams who have a proven track record and who will respond positively to the Cenkos environment.  

During the period we announced that we had commenced talks with the Board of Arden Partners plc ('Arden') with the intention of entering into a scheme of arrangement to acquire the whole share capital of Arden. After conducting considerable due diligence we were unwilling to progress this transaction. We incurred minimal professional costs.

The markets in which we operate continue to show signs of deterioration and a significant number of people believe that the UK economy may enter a period of recession. These conditions make it more challenging for companies like ours to trade in. However, the Board believes that we are well placed to weather the storms ahead. We have a low fixed cost base and high quality teams that have the ability to complete transactions even in these difficult markets.

The Group continues to maintain healthy regulatory capital ratios and as a result the Board are declaring an interim dividend of 5p per share (2007: 10p per share). This is consistent with our dividend policy.  The dividend will be payable on 5 November 2008 to all shareholders on the register at 10 October 2008. During the period we have taken steps to strengthen our Board and I am very pleased to welcome Jeff Hewitt and Peter Sullivan.

John Hodson

Chairman

19 September 2008

Financial Review

The conditions in the financial markets in which we operate have continued to be challenging throughout the period. Cenkos, however, now has a well balanced business and during the period has shown itself to be resilient in the present financial turmoil.  Revenue for the period is down by 33% from £28.4m to £18.9m which I believe shows the relative strength of Cenkos' revenue streams under very difficult conditions. The table below shows an analysis of how these revenues are made up.

	Six months to	Six months to	Twelve months to
	30-Jun-08	30-Jun-07	31-Dec-07
	Unaudited	Unaudited	Audited
	£000's	£000's	£000's
Placing fees	10,708	17,534	32,146
Corporate finance fees	4,683	3,628	10,109
Commission income	2,598	4,216	7,680
Market making	(170)	2,062	1,969
Wealth management	1,047	920	1,887
	18,866	28,360	53,791

This table demonstrates that there is a diversification of income streams and whilst placing fees are still a major component of our revenue, M&A corporate finance fees and commission coming from secondary trading make a significant contribution to income.

Profit before tax is down from £11.6m to £5.5m, diluted earnings per share decreased to 5.4p from 11.1p. The Board declares an interim dividend of 5p per share. The level of dividend payout reflects the Company's dividend policy of only retaining further profits when the Board considers that attractive investment opportunities have been identified, which should be financed by the Group's internal resources.

Corporate Broking and Advisory

We continue to grow the number of retained corporate clients and have a firm strategy in place to attract new clients. The Group was nominated advisor or corporate broker to 56 (2007: 42) companies as at 30 June 2008. During the period the Group also raised some £230m (2007: £1.0 bn) for its clients. In the period we have also increased the amount of M&A corporate finance fees we generated being involved in 7 transactions.  In total we completed 15 transactions during the period.  

Institutional Equities

The equities team currently provides research driven investment recommendations to institutional clients. At present the team has particular expertise in the business services and consumer sectors having recruited professionals who are previously top ranked analysts in these sectors. We have recently added to this team by recruiting analysts who specialise in the retail sector. Given that this activity is affected by the move to unbundled services, it is encouraging to note that the research produced is perceived by clients to be important to them and an increasing number have now elected to pay for research separately in addition to paying commission. This team has contributed significantly to commission income during the period.

Market making

The Group continues to run market making activities in order to support other services that it provides to its clients. The Group makes markets in the securities of all companies where it has a broking relationship, its strategy being to take small positions in a wide range of stocks thereby providing liquidity to the market. The Group does not engage in proprietary trading and applies a range of position limits and monitoring procedures to any positions taking. Whilst not immune from the increased volatility in world stock markets, by following this strategy we have only suffered a small loss on our market making positions.

Investment Funds

The team provides a broad range of services including corporate broking, corporate finance, market making and sales with a sole focus on investment funds. They act as counterparty for a large number of investment fund investors and have a detailed knowledge of their asset allocation strategies enabling successful secondary distributions and primary sales. The Group makes markets in approximately 200 (2007: 200) investment fund securities and by 30 June 2008 the Group has been appointed as corporate broker to 25 (2007: 23) investment funds and has raised £129m (2007: £200m)in the period.  

Offshore wealth management and stockbroking services

Offshore wealth management and stockbroking services are primarily provided through Cenkos Channel Islands Limited, a 50% owned subsidiary based in Guernsey and its own subsidiary based in Jersey. Varying levels of stockbroking services from discretionary to execution only are provided primarily to high net worth individuals and also to financial intermediaries and institutions. The business during the period has grown both in terms of the number of clients and funds managed. These now stand at 800 (2007: 386) and £341m (2007: £212m), respectively. We have recently taken the opportunity to add significant capacity to our operations in the Channel Islands by recruiting a team of 10.  

Fund Management Business

Our Fund Management Business is primarily provided by Cenkos Fund Management Limited. This operation already has an investment management agreement with an AIM quoted fund which has a market capitalisation of circa. £60m. The fund specialises in making investments in primarily unquoted companies. The team has a well established track record in this particular area. The fund is becoming well invested and we believe that this business will be a valuable contributor to the Group in the second half of 2008. 

Balance Sheet

As can be seen from the balance sheet the investment trust team uses capital to take positions in the shares of quoted investment funds. These positions primarily facilitate institutional client trading and support the strategies of its investment fund clients. In the present period we have reduced our exposure to trading investments. Trading investments long positions are down from £23.4m at 30 June 2007 to £21.0m as at 30 June 2008 and trading investments short positions are down £2.56m from £7.67m at 30 June 2007 to £5.11m as at 30 June 2008.  At 30 June 2008 our holding in PLUS markets was worth £2.15m (2007: £5.02m). Cash levels are down on last year reflecting the payment of significant dividends and performance based bonuses during the period. The cash levels are considered more than adequate to meet the business's requirements and we also have in place a significant and currently undrawn facility from our bankers.

People

We continue to invest in our staff whilst maintaining a tight control over our overhead base and are looking to acquire further high quality teams and businesses.  We believe that, like our present teams, these teams should be rewarded by a mixture of bonus and equity based payments that align their interests with those of our shareholders. These are uncertain times and can be unsettling. However, our teams have continued to perform their roles with skill and commitment and this bodes well for the future when markets stabilise and indeed improve.

Outlook

I believe that the present difficult conditions will continue for some time but have confidence that we will continue to trade profitably and indeed capitalise on opportunities that will open up in the coming months. The second half of the year has started on a positive note. We have completed a number of deals since our first half finished and we have an encouraging pipeline. 

Andy Stewart

Chief Executive Officer

19 September 2008

Condensed consolidated income statement
Six month period ended 30 June 2008
				Unaudited		Unaudited		Audited
				1 January		1 January		1 January
				2008 to		2007 to		2007 to
			Note	30 June		30 June		31 December
				2008		2007		2007
				£ 000's		£ 000's		£ 000's
Continuing operations
Revenue				18,866		28,360		53,791
Administrative expenses				(13,985)		(17,332)		(33,665)
Operating profit				4,881		11,028		20,126
Investment income - interest receivable				716		553		1,997
Finance costs - interest payable				(56)		(11)		(14)
Other gains and losses				-		-		1,709
Profit before tax				5,541		11,570		23,818
Tax			2	(1,597)		(3,261)		(7,056)
Profit for the period				3,944		8,309		16,762
Attributable to:
Equity holders of the parent				3,900		8,143		16,552
Minority interests				44		166		210
				3,944		8,309		16,762
Earnings per share
Basic			4	5.4p		11.2p		22.8p
Diluted			4	5.4p		11.1p		22.6p
All amounts shown in the consolidated financial statements derive from continuing operations of the Group.
Condensed consolidated balance sheet
as at 30 June 2008				Unaudited		Unaudited		Audited
				30 June		30 June		31 December
				2008		2007		2007
				£ 000's		£ 000's		£ 000's
Non-current assets
Property, plant and equipment				1,191		815		944
Available for sale investments				2,153		5,023		3,543
Deferred tax asset				199		463		321
				3,543		6,301		4,808
Current assets
Trading investments - long positions				21,062		23,451		26,597
Trade and other receivables				54,160		99,943		56,763
Cash and cash equivalents				3,378		9,181		16,244
				78,600		132,575		99,604
Total assets				82,143		138,876		104,412
Current liabilities
Trading investments - short positions				(5,112)		(7,666)		(11,803)
Trade and other payables				(37,015)		(85,955)		(46,761)
				(42,127)		(93,621)		(58,564)
Net current assets				36,473		38,954		41,040
Non-current liabilities
Deferred tax liabilities				(344)		(1,205)		(761)
Total liabilities				(42,471)		(94,826)		(59,325)
Net assets				39,672		44,050		45,087
Equity
Share capital				726		726		726
Share premium account				22,700		22,700		22,700
Revaluation reserves				803		2,812		1,776
Retained earnings				15,125		17,698		19,633
Equity attributable to equity holders of the parent
				39,354		43,936		44,835
Minority interests				318		114		252
Total equity				39,672		44,050		45,087
Condensed consolidated cash flow statement
for the six month period ended 30 June 2008
					Unaudited	Unaudited		Audited
					1 January	1 January		1 January
					2008 to	2007 to		2007 to
					30 June	30 June		31 December
					2008	2007		2007
					£ 000's	£ 000's		£ 000's
Profit for the period					3,944	8,309		16,762
Adjustments for:
Finance costs					(659)	(543)		(1,984)
Tax					1,596	3,261		7,057
Depreciation of property, plant and equipment					172	103		228
Other gains and losses					-	-		(1,709)
Share-based payment expense					438	675		1,349
Operating cash flows before movements in working capital					5,491	11,805		21,703
Net increase in trading investments					(1,155)	(7,789)		(6,798)
Decrease/(increase) in trade and other receivables					2,537	(60,305)		(17,057)
(Decrease)/increase in trade and other payables					(8,218)	55,455		18,573
Distributions to minority interests					-	(78)		(209)
Net cash (outflow)/inflow from operating activities					(1,345)	(912)		16,212
Interest paid					(56)	(11)		(14)
Taxation paid					(3,138)	-		(5,942)
Net cash (outflow)/inflow from operating activities					(4,539)	(923)		10,256
Investing activities
Interest received					782	537		1,912
Net proceeds from the part disposal of a subsidiary					-	-		2,021
Purchase of property, plant and equipment					(420)	(181)		(434)
Net cash generated by investing activities					362	356		3,499
Financing activities
Dividends paid					(8,711)	-		(7,259)
Fees related to issue of equity shares					-	(33)		(33)
Issue of capital by subsidiary to minority interests					22	-		-
Net cash used in financing activities					(8,689)	(33)		(7,292)
Net (decrease)/increase in cash and cash equivalents					(12,866)	(600)		6,463
Cash and cash equivalents at beginning of period					16,244	9,781		9,781
Cash and cash equivalents at end of period					3,378	9,181		16,244
Condensed consolidated statement of changes in equity
for the six month period ended 30 June 2008
	Share capital	Share premium	Revaluation reserve		Retained earnings	Minority interests		Total
	£ 000's	£ 000's	£ 000's		£ 000's	£ 000's		£ 000's
Attributable to equity holders of the parent at 1 January 2007	726	22,733	1,556		8,843	26		33,884
Retained profit for the period	-	-	-		8,143	-		8,143
Revaluation of available-for-sale investments	-	-	1,794		-	-		1,794
Deferred tax liability arising on fair valuation of available-for-sale investments	-	-	(538)		-	-		(538)
Profit allocated to minority interests	-	-	-		-	166		166
Distribution of profit to minority interests	-	-	-		-	(78)		(78)
Credit to equity for equity settled share-based payments	-	-	-		675	-		675
Deferred tax asset arising on share-based payments charged to equity	-	-	-		37	-		37
Share issue costs taken through share premium	-	(33)	-		-	-		(33)
Attributable to equity holders of the parent at 30 June 2007	726	22,700	2,812		17,698	114		44,050
Retained profit for the period	-	-	-		8,409	-		8,409
Revaluation of available-for-sale investments	-	-	(1,480)		-	-		(1,480)
Deferred tax liability arising on fair valuation of available-for-sale investments	-	-	444		-	-		444
Deferred tax asset arising on share-based payments charged to equity	-	-	-		111	-		111
Profit allocated to minority interests	-	-	-		-	44		44
Distribution of profit to minority interests	-	-	-		-	(131)		(131)
Interest acquired by minority interest	-	-	-		-	314		314
Transfer of amounts to payables on retirement of minority interest members	-	-	-		-	(89)		(89)
Credit to equity for equity settled share-based payments	-	-	-		674	-		674
Dividends paid	-	-	-		(7,259)	-		(7,259)
Attributable to equity holders of the parent at 31 December 2007	726	22,700	1,776		19,633	252		45,087
Retained profit for the period	-	-	-		3,900	-		3,900
Revaluation of available-for-sale investments	-	-	(1,390)		-	-		(1,390)
Deferred tax liability arising on fair valuation of available-for-sale investments	-	-	417		-	-		417
Deferred tax asset arising on share-based payments charged to equity	-	-	-		(135)	-		(135)
Profit allocated to minority interests	-	-	-		-	44		44
Issue of capital by subsidiary to minority interests	-	-	-		-	22		22
Credit to equity for equity-settled share-based payments	-	-	-		438	-		438
Dividends paid	-	-	-		(8,711)	-		(8,711)
At 30 June 2008	726	22,700	803		15,125	318		39,672
Notes to the condensed consolidated financial statements
1. Accounting policies
General Information
Cenkos Securities plc ('the Company') is a company incorporated in United Kingdom under the Companies Act 1985. The Company's principal activity is investment banking. 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 interim financial information has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and in accordance with International Accounting Standard ('IAS') 34 - 'Interim Financial Reporting'.
The accounting policies used in arriving at these 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 2007.
While the financial information included in this preliminary announcement has been computed in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union, this announcement does not itself contain sufficient information to comply with IFRSs. The Group's 2007 statutory account comply with IFRSs.
The financial information contained in this interim report does not constitute the Company's statutory accounts within the meaning of section 240 of the Companies Act 1985. The comparative information contained in this report for the year ended 31 December 2007 does not constitute the statutory accounts for that financial period. Those accounts have been reported on by the Company's auditors, Deloitte & Touche LLP, and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985.
The interim financial information is unaudited and was approved by the Board of Directors on 19 September 2008.
These financial statements have been prepared on the historical cost basis, except for the revaluation of certain financial instruments.
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.
2. Tax				Unaudited		Unaudited		Audited
The tax charge comprises:				30 June		30 June		31 December
				2008		2007		2007
				£ 000's		£ 000's		£ 000's
Current tax
United Kingdom corporation tax at 28.5% (2007 - 30%) based on the profit for the period				1,609		3,531		7,071
Total current tax				1,609		3,531		7,071
Deferred tax
Credit on account of timing differences				(12)		(270)		(15)
Total deferred tax				(12)		(270)		(15)
Total tax on profit on ordinary activities				1,597		3,261		7,056
The tax charge for the period differs from that resulting from applying the standard rate of UK corporation tax of 28.5% to the profit before tax for the reasons set out in the following reconciliation.
				Unaudited		Unaudited		Audited
				30 June		30 June		31 December
				2008		2007		2007
				£ 000's		£ 000's		£ 000's
Profit on ordinary activities before tax				5,541		11,570		23,818
Tax on profit on ordinary activities at the UK corporation tax rate of 28.5% (2007: 30%)				1,580		3,471		7,145
Tax effect of:
Depreciation in excess of capital allowances				11		2		2
Expenses that are not deductible in determining taxable profits				96		90		595
Different tax rates of subsidiaries operating in other jurisdictions				(73)		(16)		(13)
Income not subject to corporation tax				(47)		(50)		(734)
Deferred tax on IFRS 2 relating to staff options				(14)		-		25
Deferred tax on IFRS 2 relating to share based payments				2		(236)		-
Adjustment for loss relief not claimed				42		-		36
Tax expense for the period				1,597		3,261		7,056
In addition to the amount charged to the income statement, deferred tax relating to the fair value of the Group's available for sale investments amounting to £417,101 has been credited directly to equity. (2007: £538,194 charged directly to equity).
3. Dividends
Amounts recognised as distributions to equity holders in the period:				Unaudited		Unaudited		Audited
				30 June		30 June		31 December
				2008		2007		2007
				£ 000's		£ 000's		£ 000's
Final dividend for the year ended 31 December 2007 of 12p (31 December 2006: Nil) per share
				8,711		-		7,259
The proposed interim dividend for 2008 of 5p (2007: 10p) per share was approved by the Board on 19 September 2008 and has not been included as a liability as at 30 June 2008. The dividend will be payable on 5 November 2008 to all shareholders on the register at 10 October 2008.
4. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
				Unaudited		Unaudited		Audited
				30 June		30 June		31 December
				2008		2007		2007
				£ 000's		£ 000's		£ 000's
Earnings
Earnings for the purpose of basic earnings per share being net profit attributable to equity holders of the parent				3,900		8,143		16,552
Effect of dilutive potential ordinary shares:
Share options				-		-		-
Earnings for the purpose of diluted earnings per share				3,900		8,143		16,552
				No.		No.		No.
Number of shares
Weighted average number of ordinary shares for the purpose of basic earnings per share				72,593,670		72,593,670		72,593,670
Effect of dilutive potential ordinary shares:
Share options				255,537		445,787		520,806
Weighted average number of ordinary shares for the purpose of diluted earnings per share				72,849,207		73,039,457		73,114,476
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.
5. Property, plant and equipment
During the period, the Group spent approximately £420,000 on property, plant and equipment. This mostly related to the costs associated with the fit out of the new Guernsey and Jersey offices.
6. Share capital
The issued share capital as at 30 June 2008 amounted to £725,936. There were no movements in the issued capital of the Company in either the current or the prior interim reporting period.
7. Related party transactions
Related party transactions are described in the 2007 Annual Report in note 24 to the consolidated financial statements. There have been no material changes in the nature of related party transactions in the six months ended 30 June 2008.
Principal risks and uncertainties
Information on the principal risks and uncertainties facing the Group are included in our latest Annual Report on www.cenkos.com. Risks and uncertainties which could have a material impact on the Group's performance over the remaining six months of the financial year are disclosed in the outlook section of the Chief Executive's statement.
Forward-looking statements
This interim report contains 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.
Directors' responsibility statement
The Directors confirm that this condensed set of financial statements has been prepared in accordance with the IAS 34 as adopted by the European Union, and that the interim report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8.
Independent review report to Cenkos Securities 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 June 2008 which comprises the income statement, the balance sheet, the statement of changes in equity, the cash flow statement and related notes 1 to 7. 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 International Standard on Review Engagements 2410 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 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 AIM Rules of the London Stock Exchange.
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 inquiries, 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 June 2008 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the AIM Rules of the London Stock Exchange.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors
London, United Kingdom
19 September 2008

 

END

 

 

IR FKFKNFBKDBCD