CSG Half Yearly Report

RNS Number : 1994Y

Impellam Group plc

28 August 2009

 



The Corporate Services Group Limited

28 August 2009



The Corporate Services Group Limited 

Interim Financial Report

28 August 2009

The Corporate Services Group Limited ('CSG') has today published its interim financial report for the six months ended 30 June 2009.

About The Corporate Services Group Limited

CSG is a wholly owned subsidiary of Impellam Group plc ('Impellam'), a human capital resource solutions group whose shares are admitted to trading on the AIM market of the London Stock Exchange plc. Impellam was formed in May 2008 when Carlisle Group Limited merged with The Corporate Services Group plc ('CSG plc').  Upon completion of the merger CSG plc became a subsidiary of Impellam and subsequently re-registered as a private company.

For further information please contact:

Impellam Group plc
Cheryl Jones - Chairman	Tel: [phone]
Andrew Burchall - Group Finance Director	Tel: [phone]
Cenkos Securities plc
Nicholas Wells	Tel: [phone]
Beth McKiernan	Tel: [phone]
Threadneedle Communications
John Coles	Tel: [phone]
Josh Royston	Tel: [phone]

28 August 2009

INTERIM FINANCIAL REPORT (UNAUDITED) FOR THE SIX MONTHS ENDED 30 JUNE 2009

Financial results and business review for the six months to 30 June 2009

The results for the six months ended 30 June 2009 show a retained loss of £3.7 million.  This compares to a profit of £8.5 million for the six months ended 30 June 2008 and £13.4 million profit for the 12 months ended 31 December 2008. This movement is due wholly to currency movements on investments denominated in US Dollars which have been adverse this year reflecting the relative weakness of Sterling against the US Dollar. The company remains an investment holding company and as such its activities have remained unchanged.

Board changes

On 14 May 2009 Desmond Doyle stepped down as a Director of the Company and Nigel Millinson was appointed on the same date.

Going concern

The company is dependent, in the absence of other funding, on the continued support of the ultimate parent company, Impellam Group plc. The ultimate parent company has confirmed that it will continue to support the company for a period of at least twelve months. On this basis, the Directors consider it appropriate to prepare the accounts on the going concern basis.

Principal risks and uncertainties

The principal risks and uncertainties of Impellam Group plc ('the Group'), which include those of the Company, are discussed in the Group Financial Director's Report in the Group's annual report which does not form part of this report. The Group's business and financial risks are managed at a group level, rather than at an individual company level. For this reason, the Company's Directors believe that a discussion of the Group's risks would not be appropriate for an understanding of the development, performance or position of the Company as there are many risks at the group level which are not applicable at the Company level.  These risks and uncertainties for the remaining six months remain as they were at December 2008 and are fully detailed in the Group annual report and accounts which are available for download on the Group's web-site. 

Audit

This interim financial report has not been audited or reviewed by Auditors pursuant to the Auditing Practice Board guidance on Review of Interim financial information.

Disclaimer on forward looking statements

Certain statements in this interim report are forward-looking. Although the company believes that the expectations reflected in these forward-looking statements are reasonable, it gives no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.

The company undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.

Statement of Directors' responsibilities

The Directors confirm that this condensed interim financial report has been prepared in accordance with applicable accounting standards and the Companies Act 1985. They also confirm that the interim management report contained herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

• An indication of important events that have occurred during the first six months and the impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year, and;

• Material related party transactions in the first six months and any material changes in the related party transactions described in the last annual report.

The Directors of The Corporate Services Group Ltd are as listed in the 2008 annual report and accounts, with the exception of the resignation of Desmond Doyle on 14 May 2009 and the appointment of Nigel Millinson on the same date.

By order of the Board,

Andrew Burchall

Director

  Consolidated income statement

For the six months ended 30 June 2009

		Six months ended  30 June 2009	Six months ended 30 June 2008	Twelve months ended 31 December 2008
	Notes	£ 000	£ 000	£ 000
Turnover		-	-	-
Administrative expenses		(4,912)	6,395	9,941
		__________	__________	__________
Operating (loss)/profit		(4,912)	6,395	9,941
Excluding exceptional items		(4,912)	8,159	11,705
Exceptional items		-	(1,764)	(1,764)
		__________	__________	__________
Operating (loss)/profit		(4,912)	6,395	9,941
Interest receivable		989	1,688	3,270
Interest payable and similar charges		(1,097)	(2,239)	(2,523)
		__________	__________	__________
(Loss) / profit on ordinary activities before taxation		(5,020)	5,844	10,688
Tax on (loss)/profit on ordinary activities	3	1,295	2,666	2,718
		__________	__________	__________
(Loss) / profit for the period		(3,725)	8,510	13,406
		__________	__________	__________

Turnover and operating (loss) / profit derive wholly from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

There is no material difference between the result reported above and the result on an unmodified historical cost basis.

Consolidated condensed balance sheet

At 30 June 2009

		30 June 2009	30 June 2008	31 December 2008
		£ 000	£ 000	£ 000
Fixed assets
Investments		73,834	73,846	73,834
Current assets
Debtors		54,159	55,491	53,638
Cash at bank and in hand		112	144	4,198
		_________	_________	_________
		54,271	55,635	57,836
		_________	_________	_________
Creditors: Amounts falling due within one year		(38,852)	(41,457)	(38,722)
		_________	_________	_________
Net current assets		15,419	14,178	19,114
		_________	_________	_________
Total assets less current liabilities		89,253	88,024	92,948
Creditors: Amounts falling due after more than one year		(19,886)	(19,824)	(19,855)
		_________	_________	_________
Net assets		69,367	68,200	73,093
		_________	_________	_________

Capital and reserves
Called up share capital		10,772	10,772	10,772
Share premium reserve		280,816	280,816	280,816
Own shares		-	-	-
Other reserves		46,613	46,613	46,613
Profit and loss reserve		(268,834)	(270,001)	(265,108)
		_________	_________	_________
Shareholders' funds		69,367	68,200	73,093
		_________	_________	_________

Notes to the interim financial statements

1            Basis of preparation

I.            Statement of Compliance

The financial statements have been prepared on a going concern basis under the historical cost convention and in accordance with applicable accounting standards and the Companies Act 1985.

II.            Accounting policies

The accounting policies used in this interim report are consistent with those applied at 31 December 2008 by the Company. 

2             Exceptional items

	Six months ended 30 June 2009	Six months ended  30 June 2008	Twelve months ended 31 December 2008
	£ 000	£ 000	£ 000
Exceptional administrative expenses	-	1,764	1,764
	____	____	____

In 2008 various provisions were established as a result of the purchase of the company by Impellam Group plc. These provisions relate mainly to onerous commitments on empty office space and the costs of related redundancies. Also included within exceptional costs is an amount of £757,000 relating to movements on the impairment of various loans to subsidiaries.

3             Taxation

Income tax expense is recognised based on management's best estimate of the effective annual income tax rate expected for the full financial year. 

4             Post balance sheet events

On 23 July 2009 the company completed a capital reorganisation under the terms of Section 641 of the Companies Act 2006 by reducing the share premium account from £280,815,747 to £nil.  In accordance with the Companies (Reduction of Share Capital) Order 2008, which deals with reserves arising from such a reduction, this reserve will be treated as a realised profit. 

 

END

 

 

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