Interim Results
GB Group PLC
27 November 2007
Embargoed until 7.00 a.m. 27 November 2007
GB GROUP PLC
('GB' or the 'Group')
Interim Results for the Six Months Ended 30 September 2007
Highlights
• The Group is expected to generate profits for the remainder of the
financial year to 31 March 2008.
• Group revenue increased by 13% to £7.9 million (2006: £7.0 million).
• DataAuthentication revenues increased to £2.8 million (2006: £2.5
million).
• Number of individual transaction searches in DataAuthentication
(excluding one-off batch verifications) increased to 2.2 million
during the period (2006: 1.6 million).
• Combined revenue from DataIntegrity and DataSolutions was £5.1 million
(2006: £4.6 million).
• Group loss before tax in the six months to 30 September 2007 was
significantly less than expected at £1.0 million (2006: £0.6 million).
• Cash balances were £3.6 million at 30 October 2007 and the Group
expects to generate cash for the remainder of the year.
• During October, the rate of growth increased across the Group.
• URU currently has 202 clients compared to 174 in May 2007 and
transaction searches were 32% higher than the monthly average from
the previous quarter.
John Walker-Haworth, Chairman, commented:
'GB continues to provide market leading products and services in each area of
its business. The Group delivered improved revenue growth during the first half
of the year and your Board is very positive about prospects.'
- Ends -
For further information, please contact:
GB Group plc 01244 657333
Richard Law, Chief Executive
Mona Navin-Mealey, Finance Director
Weber Shandwick Financial 020 7067 0700
Richard Hews/ Alex Brown
Website www.gb.co.uk
Notes to Editors
About GB Group plc
GB Group plc provides a range of products and services to enable organisations
to capitalise on one of their greatest assets - customer data. The Company has
expertise across a range of sectors and is able to transform customer data into
valuable information, enabling clients to make better, more informed decisions.
The development of innovative software and services, through to the provision of
the UK's most comprehensive consumer business databases - The National Register
(R) and the National Authentication Register - positions GB Group as a widely
acknowledged industry leader in its specialist markets.
We are constantly improving business processes by building on our core values of
Innovation, Quality and Excellence. This is reflected in our customer
satisfaction surveys and also through research, carried out by Manchester
Business School, which confirms our products are out-performing the competition.
GB Group plc has three complementary offerings:
• DataAuthentication helps businesses validate personal identity
information and provides anti-fraud solutions to fight crime.
• DataIntegrity helps companies capture and maintain accurate customer
contact data, an essential foundation for any profitable customer
relationship.
• DataSolutions empowers companies to consolidate and analyse customer
data from various sources, enabling them to make better, more informed
decisions.
Established since 1989, GB's core competencies combined with industry sector
knowledge have enabled the company to deliver significant value to organisations
such as Standard Life, Scottish Power and TD Waterhouse in helping them derive
maximum value from their customer data and sustain real advantage over their
competition.
GB Group is supported by its key relationships with major organisations with
whom it works with on major initiatives (an example being British Telecom),
together with a team of highly talented and motivated staff successfully
delivering business solutions.
GB Group plc is listed on the London Stock Exchange (www.gb.co.uk).
About URU(TM)
URU is an online identity verification service which was developed jointly with
BT and is DataAuthentication's principle offering. URU, which is powered by GB's
ID3(TM)search engine and decision making technology, provides access to GB's
comprehensive range of identity data and BT's high capacity web delivery. It
helps organisations to protect themselves from the growing problem of identity
theft and fraud, which is estimated to cost the UK economy over £1.7 billion per
annum. URU enables companies subscribing to the service to make an instant
decision whether to accept the identity claimed by any given individual and
confirm their age in seconds.
URU works by cross checking personal information provided by an individual at
the point of acquisition against a comprehensive range of datasources to confirm
that an individual is who they claim to be, live where they claim to live and
meet certain minimum legal age requirements.
No personal data is disclosed by the reference databases and as a result URU is
compliant with the Data Protection Act.
URU also provides a valuable audit trail demonstrating that the necessary checks
have taken place, thereby helping companies comply with legislation, including
the 2nd European Money Laundering Directive, Proceeds of Crime Act and Minimum
Legal Age requirements of certain industry sectors.
The addition of data from CallCredit also enables users of URU to incorporate
credit reference data.
As a result of legislation, new opportunities and social responsibility
requirements, the market for online ID verification is significant and growing.
Although an estimated 0.5 billion manual ID checks are conducted annually in the
UK, less than 3% of these are currently performed electronically.
URU has demonstrated that online checks are more effective, less expensive and
more robust.
The market is moving towards online checks as fraudulent documents become ever
more sophisticated, more readily available and more difficult to check manually.
It is estimated that by 2010, the market for online ID checks could be 300
million checks per annum.
GB works closely with trade and industry associations, such as the Finance and
Leasing Association, the Remote Gambling Association and the Financial
Technology Research Centre, to advise businesses that more robust processes can
prevent financial crime. We have worked closely with the Gaming Industry to
address social issues such as underage gambling and addiction and our Social
Responsibility Consultancy helps Gaming operators formulate best practice to
comply with regulatory requirements and improve profitability.
About ID3-Check
ID3-Check is an international online identity verification service developed by
GB's DataAuthentication business. It is a hybrid international version of the
technology underpinning URU, GB's joint project with BT which is now the UK's
leading online age and identity verification service.
The service helps organisations to protect themselves from the growing global
problem of identity theft and fraud. ID3-Check enables organisations subscribing
to the service to make an instant decision whether to accept the identity
claimed by an individual and confirm their age in seconds. ID3-Check can confirm
the age and identity of nearly half a billion people in 21 countries including
Australia, Canada, the USA and most Western European countries.
ID3-Check works by cross checking personal information provided by an individual
at the point of acquisition against a comprehensive range of data sources to
confirm that an individual is who they claim to be, live where they claim to
live and meet certain minimum legal age requirements.
No personal data is disclosed by the reference databases and as a result
ID3-Check is compliant with Data Protection laws.
ID3-Check also provides a valuable audit trail demonstrating that the necessary
checks have taken place, thereby helping companies comply with legislation,
including the 2nd European Money Laundering Directive, Proceeds of Crime Act and
Minimum Legal Age requirements of certain industry sectors.
As a result of legislation, new opportunities and social responsibility
requirements, the market for online ID verification across borders is
significant and growing.
CHAIRMAN'S STATEMENT
Overview
GB's results for the six months ending 30 September 2007 were in line with the
expectations set out in the trading update issued on 11 October 2007.
All of GB's business areas delivered improved revenue growth during the first
half of the year. The growth rate across all business areas has continued into
the second half of the year and, as a result, the Group is expected to trade
profitably for the remainder of the year to 31 March 2008.
Cash balances at 31st October were £3.6 million. In line with the current move
to profitability the Group is expected to generate cash from its operations in
the period up to the end of the financial year.
More than 50% of the Group's revenue now comes from online services which offer
significant revenue potential for the future. As GB moves into profitability,
your Board is very positive about prospects for the Group.
Trading
During the first half of the year, Group revenue increased by 13% to £7.9
million (2006: £7.0 million) and gross profit also improved. This trend has
continued in the second half to date with revenue for the current year to the
end of October approximately 17% ahead of the same period last year.
Group losses before taxation for the six-month period to 30 September 2007 were
£1.0 million (2006: £0.6 million).
Overheads in the first half increased to fund greater sales marketing and
technical infrastructure. The build up of resources to support the growth to the
next stage has now ended and overheads are not expected to increase
significantly further in the second half of the year.
DataAuthentication
Revenue in DataAuthentication during the first half of the year was £2.8 million
(2006: £2.5 million).
As indicated in the October trading update, revenue growth in this area of the
business was slower than earlier expectations as a result of a slower movement
of the market towards electronic methods of age and identity verification both
in the UK and internationally. The Directors believe that this movement,
although delayed, will occur and that the market for electronic age and identity
solutions continues to represent a substantial opportunity for the Group.
Despite slower development of the market GB has maintained its lead and has seen
revenue growth from both its UK service, URU, and its international ID3
solution, accelerate in recent months.
The number of individual transaction searches (excluding one-off batch
verifications) through URU, GB's joint service with BT, increased to 2.2 million
for the six months to 30 September 2007 compared to 1.6 million in the
corresponding period last year. During October, individual transactions
increased by approximately 32% compared to the monthly average during the
previous quarter. The number of URU clients also increased and now totals 202
(31 May 2007: 174). ID3 clients now number 13 (31 May 2007: 4).
DataIntegrity and DataSolutions
Combined revenue from the DataIntegrity and DataSolutions business areas was
ahead of earlier expectations during the six months to 30 September at £5.1
million (2006: £4.5 million) and was 11% higher than the same period last year.
The decision to invest in the online delivery of a number of GB's services in
these business areas, together with providing up-to-date data, has opened up a
range of new business opportunities within large enterprises and in the fields
of criminal justice, counter-terrorism and debt recovery.
As a result of the potential opportunities created by new product development,
the prospects for these business areas have been greatly improved and trading in
the past two months has continued to improve.
JL Walker-Haworth
Chairman
27 November 2007
CONSOLIDATED INCOME STATEMENT
For the six months ended 30 September 2007
----------------------------------------------------------------------------------
Note Unaudited Unaudited Audited
6 months to 6 months to Year to
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Revenue 7,915 7,032 14,952
Cost of sales (4,122) (3,763) (7,617)
------------ ------------ ------------
Gross profit 3,793 3,269 7,335
Other operating expenses (4,905) (4,059) (8,754)
Exceptional items - - (100)
------------ ------------ ------------
Operating loss (1,112) (790) (1,519)
Finance revenue 136 153 294
------------ ------------ ------------
Loss before tax (976) (637) (1,225)
Income tax expense - - (16)
------------ ------------ ------------
Loss for the period attributable
to equity holders of the parent (976) (637) (1,241)
------------ ------------ ------------
Loss per share 6
- basic loss for the period (1.2)p (0.8)p (1.5)p
- diluted loss for the period (1.2)p (0.8)p (1.5)p
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 September 2007
------------------------------------------------------------------------------------------------------------------
Equity Merger Capital Retained Total
share reserve redemption earnings equity
capital reserve
£'000 £'000 £'000 £'000 £'000
Balance at 1 April 2006 5,450 6,575 3 1,422 13,450
--------- --------- --------- --------- ---------
Loss for the period - - - (637) (637)
--------- --------- --------- --------- ---------
Total income and expense for the period - - - (637) (637)
Exercise of options 167 - - - 167
Cost of share-based payments - - - 88 88
Equity dividend - - - (621) (621)
--------- --------- --------- --------- ---------
Balance at 30 September 2006 5,617 6,575 3 252 12,447
Loss for the period - - - (604) (604)
--------- --------- --------- --------- ---------
Total income and expense for the period - - - (604) (604)
Exercise of options - - - - -
Cost of share-based payments - - - 129 129
--------- --------- --------- --------- ---------
Balance at 1 April 2007 5,617 6,575 3 (223) 11,972
Loss for the period - - - (976) (976)
--------- --------- --------- --------- ---------
Total income and expense for the period - - - (976) (976)
Exercise of options 66 - - - 66
Cost of share-based payments - - - 61 61
Equity dividend - - - (632) (632)
--------- --------- --------- --------- ---------
Balance at 30 September 2007 5,683 6,575 3 (1,770) 10,491
--------- --------- --------- --------- ---------
CONSOLIDATED BALANCE SHEET
As at 30 September 2007
-----------------------------------------------------------------------------------------------------
Unaudited Unaudited Audited
As At As At As At
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
ASSETS
Non-current assets
Property, plant and equipment 1,082 792 1,108
Intangible assets 6,669 6,506 6,668
Deferred tax asset 360 360 360
------------ ------------ ------------
8,111 7,658 8,136
------------ ------------ ------------
Current assets
Trade and other receivables 2,917 2,937 3,752
Current tax - 12 -
Cash and short-term deposits 4,078 6,111 5,213
------------ ------------ ------------
6,995 9,060 8,965
------------ ------------ ------------
TOTAL ASSETS 15,106 16,718 17,101
------------ ------------ ------------
EQUITY AND LIABILITIES
Capital and reserves
Equity share capital 5,683 5,617 5,617
Merger reserve 6,575 6,575 6,575
Capital redemption reserve 3 3 3
Retained earnings (1,770) 252 (223)
------------ ------------ ------------
Total equity attributable to equity holders of the parent 10,491 12,447 11,972
------------ ------------ ------------
Current liabilities
Trade and other payables 4,615 4,246 5,129
Provisions - 25 -
------------ ------------ ------------
TOTAL LIABILITIES 4,615 4,271 5,129
------------ ------------ ------------
TOTAL EQUITY AND LIABILITIES 15,106 16,718 17,101
------------ ------------ ------------
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 September 2007
------------------------------------------------------------------------------------------------------
Unaudited Unaudited Audited
6 months to 6 months to Year to
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Cash flows from operating activities
Loss before tax (976) (637) (1,225)
Depreciation and amortisation 200 87 230
Provision against property, plant and equipment - - 25
Loss on disposal of property, plant and equipment - - 5
Share-based payments 61 88 217
Interest income (136) (153) (294)
Decrease in provisions - (83) (108)
Decrease/(increase) in trade and other receivables 835 (69) (884)
(Decrease)/increase in trade and other payables (514) 935 1,818
------------ ------------ ------------
Cash generated/(consumed) from operations (530) 168 (216)
Income tax credit received - 45 41
------------ ------------ ------------
Net cash (consumed)/generated from operating activities (530) 213 (175)
------------ ------------ ------------
Cash flows from investing activities
Purchase of property, plant and equipment (142) (548) (1,027)
Expenditure on product development (33) - (172)
Interest received 136 153 294
------------ ------------ ------------
Net cash flows from investing activities (39) (395) (905)
------------ ------------ ------------
Cash flows from financing activities
Proceeds from issue of shares 66 167 167
Dividends paid to equity shareholders (632) (621) (621)
------------ ------------ ------------
Net cash flows from financing activities (566) (454) (454)
------------ ------------ ------------
Net decrease in cash and cash equivalents (1,135) (636) (1,534)
Cash and cash equivalents at the beginning of period 5,213 6,747 6,747
------------ ------------ ------------
Cash and cash equivalents at the end of period 4,078 6,111 5,213
------------ ------------ ------------
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
----------------------------------------------------------------
1. CORPORATE INFORMATION
The interim condensed consolidated financial statements of GB Group plc
('the Group') for the six months ended 30 September 2007 were authorised
for issue in accordance with a resolution of the directors on 26 November
2007. GB Group plc is a public limited company incorporated in the United
Kingdom whose shares are publicly traded on the London Stock Exchange.
2. BASIS OF PREPARATION AND ACCOUNTING POLICIES
Basis of Preparation
These interim condensed consolidated financial statements for the six
months ended 30 September 2007 have been prepared in accordance with IAS 34
Interim Financial Reporting.
The interim condensed consolidated financial statements are presented in
sterling and all values are rounded to the nearest thousand (£'000) except
when otherwise indicated.
The interim condensed consolidated financial statements do not constitute
statutory accounts as defined in section 240 of the Companies Act 1985 and
therefore 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 as at 31 March 2007. The financial
information for the preceding year is based on the statutory accounts for
the year ended 31 March 2007. These accounts, upon which the auditors
issued an unqualified opinion, have been delivered to the Registrar of
Companies. These accounts did not require a statement under either section
237(2), or section 237(3) of the Companies Act 1985.
Accounting Policies
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 March 2007, except for the adoption of new Standards and
Interpretations, noted below. Adoption of these Standards and
Interpretations did not have any effect on the financial position or
performance of the Group.
International Accounting Standards (IAS / IFRS) Adoption date
IFRS 7 Financial Instruments: Disclosures 1 April 2007
IAS 1 Amendment: Presentation of Financial
Statements - Capital Disclosures 1 April 2007
International Financial Reporting Interpretations
Committee (IFRIC) Adoption date
IFRIC 8 Scope of IFRS 2 1 April 2007
IFRIC 9 Reassessment of Embedded Derivatives 1 April 2007
IFRIC 10 Interim Financial Reporting and Impairment 1 April 2007
IFRIC 11 IFRS 2 - Group and Treasury Share
Transactions 1 April 2007
3. RISKS & UNCERTAINTIES
Management identifies and assess risks to the business using a common
model. The Group has a number of exposures which can be summarised as
follows: regulatory risk resulting from regulatory developments; changes in
the Group's competitive position; non-supply by a major supplier; and
disaster recovery and business continuity. These risks and uncertainties
facing our business were reported in detail in the 2007 Annual Report and
Accounts and all of them are monitored closely by the Group. There have
been no significant changes in the Group's risk and uncertainty factors
during the review period, nor are any expected to for the remainder of the
year.
4. SEGMENT INFORMATION
All activities undertaken by the Group represent a single segment for
reporting purposes.
5. CYCLICALITY
Due to the cyclicality of our software renewal business, higher renewals in
the second half traditionally result in the Group's performance being
biased towards the second half of the year.
6. LOSS PER ORDINARY SHARE
Basic
Basic loss per share is calculated by dividing the loss attributable to
equity holders of the Company by the basic weighted average number of
ordinary shares in issue during the period.
Unaudited 6 months Unaudited 6 months Audited Year to
to 30 September to 30 September 31 March
2007 2006 2007
pence pence pence
per per per
share £'000 share £'000 share £'000
Loss attributable to equity holders of the parent (1.2) (976) (0.8) (637) (1.5) (1,241)
------ ------ ------ ------ ------ ------
Diluted
Diluted loss per share amounts are calculated by dividing the loss for the
period attributable to ordinary equity holders by the weighted average
number of ordinary shares outstanding during the period plus the weighted
average number of ordinary shares that would be issued on the conversion of
all the dilutive potential ordinary shares into ordinary shares.
30 Sept 30 Sept 31 March
2007 2006 2007
No. No. No.
Basic weighted average number of shares in issue 84,073,515 83,023,079 83,380,985
Dilutive effect of share options - - -
---------- ---------- ----------
Diluted weighted average number of shares in issue 84,073,515 83,023,079 83,380,985
---------- ---------- ----------
The loss for the period and the weighted average number of ordinary shares
used for calculating the diluted loss per share are identical to those used
for the basic loss per share. This is because the outstanding share options
would have the effect of reducing the loss per ordinary share and would
therefore not be dilutive under the terms of IAS 33 Earnings per Share.
7. DIVIDENDS PAID AND PROPOSED
Unaudited 6 Unaudited 6 Audited
months to months to Year to
30 Sept 30 Sept 31 March
2007 2006 2007
£'000 £'000 £'000
Declared and paid during the period
Final dividend for 2007: 0.75p (2006: 0.75p) 632 621 621
--------- --------- ---------
Proposed for approval at AGM (not recognised as a
liability at 31 March 2007)
Final dividend for 2007: 0.75p - - 628
--------- --------- ---------
8. PROPERTY, PLANT AND EQUIPMENT & INTANGIBLE ASSETS
During the six months ended 30 September 2007, the Group acquired property,
plant and equipment with a cost of £142,000 (2006: £548,000). Expenditure
on product development for the six months ended 30 September 2007 was
£33,000 (2006: £Nil).
No disposals were made in the six months ended 30 September 2007 (2006:
£Nil).
9. SHARE-BASED PAYMENT
The Group operates Executive Share Option Schemes under which executive
directors, managers and staff of the Company are granted options over
shares.
Executive Share Option Scheme
Options are granted to executive directors and employees on the basis of
their performance. Options are granted at the full market value of the
Company's shares at the time of grant and are exercisable between three and
ten years from the date of grant. The options vest when the Company's
earnings per share growth is greater than the growth of the Retail Prices
Index (RPI) over a 3 year period prior to the exercise date. There are no
cash settlement alternatives.
Executive Share Option Scheme (Section C Scheme)
Options are granted to executive directors and employees on the basis of
their performance. Options are granted at the full market value of the
Company's shares at the time of grant and are exercisable between three and
ten years from the date of grant. The percentage of an option that will
vest and be capable of exercise will depend on the performance of the
Company. A minimum of 50 per cent. of the options will vest when the Total
Shareholder Return (TSR) performance of the Company, as compared to the TSR
of the FTSE Computer and CPU Services Sub-Sector over a three-year period,
matches or exceeds the median company. The percentage of shares subject to
an option in respect of which that option becomes capable of exercise will
then increase on a sliding scale so that the option will become exercisable
in full if top quartile performance is achieved.
GB Sharesave Scheme
The Group has a savings-related share option plan, under which employees
save on a monthly basis, over a three or five year period, towards the
purchase of shares at a fixed price determined when the option is granted.
This price is usually set at a 20% discount to the market price at the time
of grant. The option must be exercised within six months of maturity of the
savings contract, otherwise it lapses.
During the six months ended 30 September 2007, the following share options
were granted to executive directors, managers and staff of the Company.
Scheme Date No. of options Exercise price
Executive Share Option Scheme 11 June 2007 317,560 30.75p
Executive Share Option Scheme - Section C 11 June 2007 617,440 30.75p
GB Sharesave Scheme 1 September 2007 928,675 25.60p
The fair value of equity-settled share options granted is estimated as at
the date of grant using a binomial model, taking into account the terms and
conditions upon which the options were granted. The following table lists
the inputs to the model for the six months ended 30 September 2007.
Dividend yield (%) 2.30 - 2.40
Expected share price volatility (%) 45.00
Risk-free interest rate (%) 5.20 - 5.60
Lapse rate (%) 5.00
Expected exercise behaviour See below
Market-based condition adjustment (%) 48.00
Expected life of option (years) 3.0 - 5.0
It is assumed that 50% of options will be exercised by participants as soon
as they are 20% or more 'in-the-money' (i.e. 120% of the exercise price)
and the remaining 50% of options will be exercised gradually at the rate of
20% per annum for each year they remain at or above 20% 'in-the-money'.
10. RELATED PARTY TRANSACTIONS
Compensation of key management personnel (including directors)
Unaudited 6 Unaudited 6 Audited
months to months to Year to
30 Sept 30 Sept 31 March
2007 2006 2007
£'000 £'000 £'000
Short-term employee benefits 222 184 457
Post-employment benefits 22 19 41
Share-based payments 5 37 37
--------- --------- ---------
249 240 535
--------- --------- ---------
RESPONSIBILITY STATEMENT BY MANAGEMENT
--------------------------------------
We confirm that to the best of our knowledge:
a) The condensed set of financial statements have been prepared in
accordance with IAS 34;
b) The interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
c) The interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related party
transactions and changes therein).
By order of the Board
R A Law
Director
M T Navin-Mealey
Director
INDEPENDENT REVIEW REPORT TO GB GROUP 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 2007 which comprises the Consolidated Income Statement, the
Consolidated Balance Sheet, the Consolidated Cash Flow Statement, the
Consolidated Statement of Changes in Shareholders' Equity and the related
explanatory notes 1 to 10. 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 2410 (UK and Ireland) 'Review of Interim Financial Information Performed
by the Independent Auditor of the Entity' issued by the Auditing Practices
Board. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company, for our 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 Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
As disclosed in note 2, 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 2007 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.
Ernst & Young LLP
Manchester
27 November 2007
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 4 hours ago Alphawave IP Group
- 5 hours ago WH Smith
- 6 hours ago Staffline Group
- 6 hours ago Manchester & London Investment Trust
- 6 hours ago Associated British Foods