Final Results
Jarvis Securities plc
15 March 2005
PRELIMINARY STATEMENT OF AUDITED RESULTS FOR THE YEAR ENDED
31 DECEMBER 2004
CHAIRMAN'S STATEMENT
These are the first results for Jarvis Securities plc as the new holding company
for the group. However, the operating subsidiary, Jarvis Investment Management
plc, had its 20th anniversary in 2004. We have come a very long way from a
private investment club, through general financial advisory work, to the volume
execution-only stockbroker and tailored financial administration solutions
provider that we are today. It was a fitting achievement for the end of our
second decade that the group was admitted to trading on AIM. Whilst it is
pleasant to pause and reflect on our past, it is certainly not our style to be
distracted from the changes and opportunities ahead.
In 2003 we took the important steps of acquiring another business, implementing
new systems and ensuring that we had skilled staff of the highest level. I
talked of this as laying strong foundations for growth. The challenge in 2004
was to be certain that those necessary changes were bedded in and ready to build
upon. With increased turnover, margins, service quality and very low staff
turnaround I am certain this has been a success. You will see in financial terms
that turnover is up by 17.4% and margins improved with operating profit up by
33.2%. This would have been higher still (59.1%) without the exceptional costs
of the move from OFEX to AIM. The fundraising on admission also helped
strengthen the balance sheet with net assets up from £430,233 to £1,372,680.
I have also been pleased with the number of positive comments received from
clients over the past year. We have been able to keep our service levels high,
despite the pressures of business growth, and clients continue to comment
favourably on both the web services and our personal telephone service. Retail
investors continue to be drawn to our low-cost and efficient stockbroking
services at the same rate and after opening 3,500 new ShareDeal Active accounts
in 2003 we have now moved well past 7,000 such accounts in 2004.
Whilst we continue to grow our retail activities in execution-only stockbroking
and self-select PEPs, ISAs and SIPPs we have not been idle in promoting our
administration and clearing services to other investment intermediaries. Jarvis
has always been primarily an outsourced service provider. This began with PEPs
and then ISAs. We now have a growing portfolio of commercial clients from single
financial advisors to some of the world's largest financial institutions,
providing services from settlement and clearing of bargains through wrappers and
regular savings schemes to complete white-labelled financial products. We are
succeeding in raising our profile in this area and I am sure that we will be
announcing further agreements throughout the coming year. Our efficient,
cost-effective and flexible solutions are just the type of outsourced
arrangement that many banks, stockbrokers and investment intermediaries are
looking for to improve the returns and minimise the regulatory and
administrative costs of their own businesses. This remains our primary focus for
organic growth in 2005.
On 26 January 2004, we announced that we had entered into advanced discussions
to acquire a company involved in the wholesale provision of securities research,
trade execution, dealing settlement and custody services to professional
intermediaries. We have not been able to agree terms acceptable to Jarvis and
accordingly discussions have now been terminated.
GROUP PROFIT AND LOSS ACCOUNT
For the year ended 31 December 2004
2004 2003
-------- --------
Notes £ £
TURNOVER 2,562,793 2,182,486
Administrative expenses 1,742,074 1,666,609
Exceptional administrative expenses 5 133,536 -
-------- --------
1,875,610 1,666,609
OPERATING PROFIT 4 687,183 515,877
Exceptional costs of business
reorganisation 5 - 160,857
-------- --------
PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION 687,183 355,020
Tax on profit on ordinary activities 7 148,201 72,267
-------- --------
PROFIT FOR THE FINANCIAL YEAR 538,982 282,753
Dividends 8 401,200 386,155
-------- --------
RETAINED PROFIT/(LOSS) 18 137,782 (103,402)
Retained profit brought forward 320,033 423,435
-------- --------
RETAINED PROFIT CARRIED FORWARD 457,815 320,033
======== ========
EARNINGS PER SHARE
Basic earnings per share 21 5.36p 2.82p
Earnings per share before exceptional
expenses 21 6.51p 3.94p
Diluted earnings per share 21 5.35p 2.82p
CONTINUING OPERATIONS
None of the group's activities were acquired or discontinued in the current
year. Acquisitions in the previous year were integrated immediately and the
related revenues and costs are not separately identifiable.
GROUP BALANCE SHEET
As at 31 December 2004
31/12/2004 31/12/2003
-------------- ---------------
Notes £ £ £ £
FIXED ASSETS
Intangible assets 9 385,330 309,640
Tangible assets 10 126,873 157,381
Investments 11 - -
-------- --------
512,203 467,021
CURRENT ASSETS
Investments 12 36,349 46,482
Debtors 13 3,440,023 3,565,432
Cash at bank and in hand 14 4,889,805 4,095,078
-------- --------
8,366,177 7,706,992
CREDITORS:
Amounts falling due 15 7,505,700 7,732,652
within one year -------- --------
NET CURRENT ASSETS/(LIABILITIES) 860,477 (25,660)
-------- --------
TOTAL ASSETS LESS CURRENT LIABILITIES 1,372,680 441,361
PROVISIONS FOR LIABILITIES AND CHARGES
Deferred taxation 16 - 11,128
-------- --------
NET ASSETS 1,372,680 430,233
======== ========
CAPITAL AND RESERVES
Called up share capital 17 114,845 100,300
Share premium account 18 800,020 9,900
Profit and loss account 18 457,815 320,033
-------- --------
SHAREHOLDERS' FUNDS 1,372,680 430,233
======== ========
GROUP CASH FLOW STATEMENT
For the year ended 31 December 2004
Notes 31/12/2004 31/12/2003
--------- ---------
£ £
Reconciliation of operating profit to net cash inflow from operating
activities
Operating profit 687,183 515,877
Cashflow from exceptional - (160,857)
item
Depreciation 59,015 47,045
Amortisation 18,750 8,619
(Profit)/Loss on disposal of
fixed - 518
assets
(Increase)/decrease in (253,720) 200,062
debtors
Increase/(decrease) in 481,452 63,963
creditors
--------- ---------
Net cash inflow from
operating 992,680 675,227
activities ========= =========
CASH FLOW STATEMENT
Cash flow from operating 992,680 675,227
activities
Taxation (159,682) (122,200)
Capital expenditure and
financial 22a (112,814) (112,860)
investment
Acquisitions - cash
consideration 3 - (318,259)
for the purchase of a
business
Equity dividends paid (401,200) (386,155)
--------- ---------
318,984 (264,247)
Financing 22a 804,665 (5,613)
--------- ---------
Increase in cash 1,123,649 (269,860)
========= =========
Reconciliation of net cash flow to movement in net funds
2004 2003
-------------- --------------
£ £ £ £
Increase in cash in the 1,123,649 (269,860)
year
Repayments of amounts - 13,942
borrowed -------- --------
Movement in net funds in 1,123,649 (255,918)
the year
Net funds at 1 January 2004 107,392 363,310
-------- --------
Net funds at 31 December 22b 1,231,041 107,392
2004 ======== ========
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 31 December 2004
1. ACCOUNTING POLICIES
The financial statements have been prepared in accordance with applicable
accounting standards. The following accounting policies have been used
consistently in dealing with items which are considered material in relation to
the financial statements.
(a) Accounting convention
The financial statements have been prepared under the historical cost
convention.
(b) Revenue
Revenue represents net sales of services, commissions and interest excluding
value added tax. Income is recognised as it is accrued for fees and interest and
on receipt for commissions.
(c) Basis of consolidation
The company was incorporated on 20 April 2004 and on 19 July 2004 the group
underwent a reconstruction in which Jarvis Investment Management plc, a company
registered in England and Wales, was included in the group. The combination was
effected under the merger method of accounts in accordance with Financial
Reporting Standard No.6 because the company was acquired by means of a share for
share exchange. The prior year comparative figures are restated to include the
results of Jarvis Investment Management plc. The group financial statements
consolidate the financial statements of Jarvis Securities plc, Jarvis Investment
Management plc, Jarvis Personal Finance Limited, View Range Limited, JIM
Nominees Limited, Galleon Nominees Limited and Dudley Road Nominees Limited made
up to 31 December 2004. Intra-group sales and profits are eliminated on
consolidation and all sales and profit figures relate to external transactions
only. No profit and loss account is presented for Jarvis Securities plc as
provided by S230(3) of the Companies Act 1985.
(d) Tangible fixed assets
Depreciation is provided on cost in equal annual instalments over the lives of
the assets at the following rates:
Website - 33% on cost
Leasehold improvements - 33% on cost
Motor vehicles - 20% on cost
Office equipment - 20% on cost
Software developments - 33% on cost
(e) Intangible fixed assets
Goodwill represents the excess of the fair value of the consideration given over
the aggregate fair values of the separable net assets. Goodwill is amortised
over 20 years on a straight-line basis, subject to annual impairment reviews.
Other intangible assets are capitalised at their market value on acquisition and
are amortised on the same basis.
(f) Deferred taxation
Provision is made in full for all taxation deferred in respect of timing
differences that have originated but not reversed by the balance sheet date,
except for gains on disposal of fixed assets which will be rolled over into
replacement assets. No provision is made for taxation on permanent differences.
Deferred tax assets are recognised to the extent that it is more likely than not
that they will be recovered.
(g) Segmental reporting
There are no significant segments for reporting purposes as required by
Statement of Standard Accounting Practice 25.
(h) Pensions
The group operates a defined contribution pension scheme. Contributions payable
for the year are charged to the profit and loss account.
(i) Stockbroking balances
The gross assets and liabilities of the group relating to stockbroking
transactions on behalf of clients are included in debtors, creditors and cash at
bank.
(j) Operating leases and finance leases
Costs in respect of operating leases are charged on a straight line basis over
the lease term in arriving at the operating profit. Where the company has
entered into finance leases, the obligations to the lessor are shown as part of
borrowings and the rights in the corresponding assets are treated in the same
way as owned fixed assets. Leases are regarded as finance leases where their
terms transfer to the lessee substantially all the benefits and burdens of
ownership other than right to legal title.
(k) Investments
Fixed asset investments are stated at cost and current asset investments are
stated at current market valuations.
(l) Financial instruments
The company has no financial instruments as determined in the provisions of
Financial Reporting Standard 13. Short-term debtors and creditors are excluded
from these provisions as permitted by the standard.
(m) Cashflow statement
Cash movements relating to stockbroking balances derived from client trading are
excluded from the cashflow statement on the basis that these amounts do not form
part of the cashflow position of the group.
2. GROUP INCOME
The income of the group during the year was made in the United Kingdom and the
income of the group for the year derives from the same class of business as
noted in the Directors' Report.
2004 2003
-------- --------
£ £
Interest received 1,165,331 967,342
Other turnover 1,397,462 1,215,144
-------- --------
2,562,793 2,182,486
======== ========
3. ACQUISITION
During the previous year the company acquired the retail stockbroking and
execution-only PEP and ISA management trade of CFA Securities Limited. The
acquisition included the relevant client databases, brands and trademarks. The
sale was completed on 19 June 2003 for a total consideration of £225,000. It is
not possible to separately identify the results of the acquired trade. The fair
value of the assets and liabilities are set out below:
Asset: Fair Value (£):
--------
---------------
Certificated client contracts 10,000
Database and trade marks 5,000
Non-certificated client contracts 10,000
--------
25,000
Consideration 225,000
Legal fees and acquisition costs 187,699
--------
Goodwill on acquisition 387,699
========
4. OPERATING PROFIT 2004 2003
--------- --------
Operating profit is stated after charging: £ £
Directors' emoluments 198,905 208,621
Depreciation - owned assets 59,014 65,611
Amortisation 18,750 8,619
Operating lease rentals - hire of machinery 2,342 674
Operating lease rentals - land and buildings 19,750 18,762
Auditor's remuneration - audit - parent company 5,000 -
Auditor's remuneration - audit - subsidiaries 5,000 9,150
Auditor's remuneration - other services - parent 53,347 -
company
Auditor's remuneration - other services - 3,688 1,976
subsidiaries
Loss on disposal of fixed assets - 518
Interest payable and similar charges 302,652 372,036
========= ========
Directors' emoluments
========= ========
Fees 190,841 201,436
Pension contributions 8,064 7,185
========= ========
Details of the highest paid director are as
follows:
Aggregate emoluments 104,000 95,000
Company contributions to personal pension scheme 8,064 7,185
--------- --------
112,064 102,185
Other services performed by the auditors relates to work performed on the
group's restructuring and admission to AIM.
Benefits are accruing for one director (2003 one director) under a money
purchase pension scheme.
Staff Costs
The average number of persons employed by the group, including directors, during
the year was as follows:
Number Number
Management and administration 22 17
======== ========
The aggregate payroll costs of these persons were as £ £
follows:
Wages and salaries 524,047 438,060
Pension contributions 8,064 7,887
Social security 62,311 48,045
-------- --------
594,422 493,992
======== ========
5. EXCEPTIONAL ITEMS
Exceptional items derive from the costs relating to the following events:
During the current year the group was restructured and Jarvis Securities plc was
formed as a new holding company for the group.
During the previous year the firm changed from transacting its equity dealing
through a third party to managing its own settlement function. This required a
significant change in the IT systems, together with a significant change in
staffing levels and skills and the resultant training costs. This also enabled
the launch of a new product range, under the name of ShareDeal Active, which had
significant initial costs. These costs are shown as an exceptional cost of
business reorganisation in the profit and loss account.
6. INTEREST PAYABLE AND SIMILAR CHARGES 2004 2003
-------- --------
£ £
Bank loans and overdrafts 5,320 8,672
Hire purchase agreement - 470
Interest paid to clients 297,332 362,894
-------- --------
302,652 372,036
======== ========
7. TAX ON PROFIT ON ORDINARY ACTIVITIES 2004 2003
-------- --------
£ £
Based on the adjusted results for the year:
UK corporation tax 239,750 92,879
Adjustments in respect of prior years (80,421) (31,740)
-------- --------
Total current tax 159,329 61,139
Deferred tax:
Origination and reversal of timing differences (11,128) 11,128
-------- --------
Tax on profit on ordinary activities 148,201 72,267
======== ========
The tax assessed for the year is lower than the standard rate of corporation tax
in the UK (30%). The differences are explained below:
Profit on ordinary activities before tax 787,206 355,020
======== ========
Profit on ordinary activities multiplied by the
standard rate of corporation tax in the UK of 30%
(2003 - 30%) 236,162 105,506
Effects of:
Marginal relief - (4,423)
Group relief claimed without payment (4,667) -
Income not taxable (28,375) -
Expenses not deductible for tax purposes 2,656 215
Ineligible depreciation 1,048 1,661
Capital allowances less than depreciation - (8,708)
Depreciation in excess of capital allowances 32,926 -
Adjustments to tax charge in respect of previous
years (80,068) (32,789)
Other short term timing differences (323)
-------- --------
Current tax charge for the year 159,682 61,139
======== ========
If the company had not incurred exceptional costs of £133,536 the profit before
tax would have been £820,719 with a tax charge for the year of £165,315.If the
company had not incurred exceptional costs of £160,857 the profit before tax in
the previous year would have been £515,877 with a tax charge for the year of
£120,523.
Movement in provision:
Provision at start
of year 11,128
Deferred tax
charged in the P&L
account for the
year (11,128)
--------
Provision at end of year -
========
Provision for deferred tax:
Accelerated capital allowances -
========
8. DIVIDENDS 2004 2003
-------- --------
£ £
Interim dividends
paid on Ordinary 1p
shares 401,200 386,155
======== ========
9a. INTANGIBLE FIXED ASSETS - GROUP
Goodwill Brands, Other & Total
-------- Databases --------
--------
£ £ £
Cost:
At 1 January 2004 293,259 25,000 318,259
Additions 94,440 - 94,440
-------- -------- --------
At 31 December 2004 387,699 25,000 412,699
======== ======== ========
Amortisation:
At 1 January 2004 7,942 677 8,619
Charge for the year 17,500 1,250 18,750
-------- -------- --------
At 31 December 2004 25,442 1,927 27,369
======== ======== ========
Net Book Value:
At 31 December 2004 362,257 23,073 385,330
======== ======== ========
At 31 December 2003 285,317 24,323 309,640
======== ======== ========
9b. INTANGIBLE FIXED ASSETS - COMPANY
Goodwill Brands, Other
& Databases Total
£ £ £
Cost:
Additions 387,699 25,000 412,699
At 31 December 2004 387,699 25,000 412,699
Amortisation:
Charge for the year 25,442 1,927 27,369
At 31 December 2004 25,442 1,927 27,369
Net Book Value:
At 31 December 2004 362,257 23,073 385,330
Intangible assets arose on the acquisition of the trade of CFA Securities Limited
during the previous year. The trade, databases, trade marks, brands and the nominee
company of CFA Securities Limited were purchased for a consideration of £225,000.
Legal, data conversion and other costs of £187,699 were capitalised in addition to the
initial consideration during the current year.
10a. TANGIBLE FIXED ASSETS - GROUP
-------- ------ -------- ------ ------- -------
Software Website Leasehold Motor Office Total
Development Improvements Vehicle Equipment
-------- ------ -------- ------ ------- -------
£ £ £ £ £ £
Cost:
At 1 January 65,130 37,405 22,421 - 116,304 241,260
2004
Additions 13,706 1,500 - 22,500 12,551 50,257
Disposals - - - (22,500) - (22,500)
-------- ------ -------- ------ ------- -------
At 31
December 78,836 38,905 22,421 - 128,855 269,017
2004 ======== ====== ======== ====== ======= =======
Depreciation:
At 1 January - 20,135 6,408 - 57,336 83,879
2004
Charge for
the 17,743 11,594 6,850 750 22,078 59,015
year
On Disposal - - - (750) - (750)
-------- ------ -------- ------ ------- -------
At 31
December 17,743 31,729 13,258 - 79,414 142,144
2004 ======== ====== ======== ====== ======= =======
Net Book
Value:
At 31
December 61,093 7,176 9,163 - 49,441 126,873
2004 ======== ====== ======== ====== ======= =======
At 31
December 65,130 17,270 16,013 - 58,968 157,381
2003 ======== ====== ======== ====== ======= =======
10b. TANGIBLE FIXED ASSETS - COMPANY
-------- ------ -------- ------ ------- -------
Software Website Leasehold Motor Office Total
Development Improvements Vehicles Equipment
-------- ------ -------- ------ ------- -------
£ £ £ £ £ £
Cost:
Transfer from
group company 65,130 37,405 22,421 - 118,956 243,912
Additions 13,706 1,500 - - 9,899 25,105
Disposals - - - - - -
-------- ------ -------- ------ ------- -------
At 31
December 78,836 38,905 22,421 - 128,855 269,017
2004 ======== ====== ======== ====== ======= =======
Depreciation:
Transfer from
group company 5,915 23,376 8,276 - 63,429 100,996
Charge for
the 11,828 8,353 4,982 - 15,985 41,148
year
On Disposal - - - - -
-------- ------ -------- ------ ------- -------
At 31
December 17,743 31,729 13,258 - 79,414 142,144
2004 ======== ====== ======== ====== ======= =======
Net Book
Value:
At 31
December 61,093 7,176 9,163 - 49,441 126,873
2004 ======== ====== ======== ====== ======= =======
At 31 - - - - - -
December ======== ====== ======== ====== ======= =======
2003
All tangible assets were acquired by Jarvis Securities plc from Jarvis
Investment Management plc on 1 October 2004.
11. FIXED ASSET INVESTMENTS
Group Company
2004 2003 2004 2003
-------- -------- -------- --------
Unlisted Investments £ £ £ £
Cost:
At 1 January 2004 - - - -
Additions - - 100,300 -
Disposals - - - -
-------- -------- -------- --------
As at 31
December 2004 - - 100,300 -
-------- -------- -------- --------
Listed Investments
Valuation:
At 1 January
2004 - 768 - -
Additions - - - -
Disposals - (768) - -
-------- -------- -------- --------
As at 31 December - - - -
2004 -------- -------- -------- --------
Total - - - -
======== ======== ======== ========
Unlisted investments are interests held in the following companies registered in the United
Kingdom.
Shareholding Holding Business
-------------- --------- ----------
Jarvis
Investment
Management plc 100% 10,030,000 1p Ordinary shares Financial Administration
On 19 July 2004 a group reorganisation was completed, whereby Jarvis Securities
plc acquired 100% of Jarvis Investment Management plc in a share for share
exchange.
12. CURRENT ASSET INVESTMENTS
Group Company
2004 2003 2004 2003
-------- -------- -------- --------
Listed Investments
Valuation:
At 1 January 2004 46,482 - - -
Additions - 46,482 - -
Disposals (10,133) - - -
-------- -------- -------- --------
As at 31 December 2004 36,349 46,482 - -
-------- -------- -------- --------
Listed investments are stated at their market value at 31 December 2004.
13. DEBTORS Group Company
Amounts falling due within one
year: 2004 2003 2004 2003
-------- -------- -------- --------
£ £ £ £
Trade debtors 2,885,312 3,304,453 - -
Amounts owed by group
undertakings 5,000 21,500 5,000 -
Other debtors 124,481 28,934 73,676 -
Prepayments and accrued income 425,230 210,545 8,585 -
-------- -------- -------- --------
3,440,023 3,565,432 87,261 -
======== ======== ======== ========
Trade debtors include £2,882,658 (2003 £3,261,787) in respect of delivery versus
payment transactions for the settlement of client bargains.
14. CASH AT BANK & IN HAND
Group Company
2004 2003 2004 2003
-------- -------- -------- --------
£ £ £ £
Balance at bank and in hand 4,889,805 4,095,078 614,686 -
======== ======== ======== ========
Cash at bank includes £3,658,764 (2003 £3,987,686) received in the course of
settlement of bargains. This amount is held by the company in trust on behalf of
clients and is only available to complete the settlement of outstanding
bargains.
15. CREDITORS: Group Company
Amounts falling due within one
year: 2004 2003 2004 2003
-------- -------- -------- --------
£ £ £ £
Trade creditors 6,884,729 7,377,164 262,785 -
Corporation tax 159,682 92,879 - -
Other taxes and Social Security 41,728 20,623 - -
Other creditors and provisions 245,131 21,851 216,173 -
Accruals 174,430 220,135 5,000 -
-------- -------- -------- --------
7,505,700 7,732,652 483,958 -
======== ======== ======== ========
Trade creditors include £6,541,422 (2003 £7,249,473) in respect of delivery
versus payment transactions for the settlement of client bargains.
16. DEFERRED TAX 2004 2003
-------- --------
£ £
At 1 January 2004 11,128 -
Charge for the year (11,128) 11,128
-------- --------
As at 31 December 2004 - 11,128
======== ========
The deferred tax is made up as follows:
Origination and reversal of timing differences - 11,128
======== ========
17. CALLED UP SHARE CAPITAL 2004 2003
-------- --------
£ £
Authorised:
16,000,000 Ordinary shares of 1p each 160,000 120,000
-------- --------
160,000 120,000
======== ========
Allotted, issued and fully paid:
11,484,545 Ordinary shares of 1p each 114,845 100,300
-------- --------
114,845 100,300
======== ========
18a. RESERVES AND RECONCILIATION OF SHAREHOLDER FUNDS - GROUP
-------- ------- -------- ----------
Share Share Profit Total
Capital Premium & Loss Shareholders'
Account Funds
-------- ------- -------- ----------
£ £ £ £
At 1 January 2003 100,000 - 423,435 523,435
Retained loss for the
financial - - (103,402) (103,402)
year
Shares issued 300 9,900 - 10,200
-------- ------- -------- ----------
At 31 December 2003 100,300 9,900 320,033 430,233
Retained profit for the
financial - - 137,782 137,782
year
Shares issued 114,845 1,185,454 - 1,300,299
Expenses of issue - (395,334) - (395,334)
Share for share exchange on
acquisition (100,300) - - (100,300)
-------- ------- -------- ----------
At 31 December 2004 114,845 800,020 457,815 1,372,680
======== ======= ======== ==========
18b. RESERVES AND RECONCILIATION OF SHAREHOLDER FUNDS - COMPANY
-------- ------- -------- ----------
Share Share Profit Total
Capital Premium & Loss Shareholders'
Account Funds
-------- ------- -------- ----------
£ £ £ £
Shares issued 114,845 1,185,454 - 1,300,299
Expenses of issue - (395,334) - (395,334)
Retained profit for the
financial - - (74,473) (74,473)
year -------- ------- -------- ----------
At 31 December 2004 114,845 790,120 (74,473) 830,492
======== ======= ======== ==========
19. IMMEDIATE AND ULTIMATE PARENT UNDERTAKINGS
The company's immediate and ultimate parent undertaking is Sion Holdings
Limited, a company registered in England and Wales.
20. RELATED PARTY TRANSACTIONS
At the year end Sion Holdings Limited had an outstanding balance due to Jarvis
Securities plc of £5,000.
21. EARNINGS PER SHARE
The weighted average number of shares in issue during the year for the Earnings
per Share calculations are as follows:
Date Event No. of shares Days 2004 2003
------ --------------- -------- ------ --------- ---------
01/01/03 Opening balance 10,000,000 42 - 1,150,685
2003
11/02/03 Issue of share 10,030,000 323 - 8,875,863
capital
01/01/04 Opening balance 10,030,000 358 9,810,765
2004
23/12/04 Issue of share 11,484,545 8 251,028
capital --------- ---------
10,061,793 10,026,548
The Diluted Earnings per Share calculation is as follows:
Date Event No. of shares Days 2004 2003
---------
01/01/03 Opening balance 2003 10,000,000 42 - 1,150,685
11/02/03 Issue of share capital 10,030,000 323 - 8,875,863
01/01/04 Opening balance 2004 10,030,000 358 9,810,765 -
23/12/04 Issue of share capital 12,134,545 8 265,236 -
and options --------- ---------
10,076,001 10,026,548
22. NOTES TO THE CASH FLOW STATEMENT
NOTE A - GROSS CASH
FLOWS 2004 2003
--------- ---------
£ £
Capital expenditure and financial
investment
Payments to acquire
tangible fixed
assets (50,257) (98,470)
Payments to acquire
intangible fixed
assets (94,440) -
Receipts from
disposal of fixed
assets 21,750 31,324
Payments to acquire
current asset
investments - (46,482)
Receipts from
disposal of current
asset investments 10,133 -
Receipts from
disposal of listed
investments - 768
--------- ---------
(112,814) (112,860)
========= =========
Financing
Issue of ordinary
share capital 1,199,999 10,200
Expenses paid on
issue of shares (395,334) -
Capital element of
finance lease
rentals - (15,813)
--------- ---------
804,665 (5,613)
========= =========
NOTE B - ANALYSIS OF
NET FUNDS
At 1.1.04 Cash Flow Other Non At 30.9.04
Cash Changes
--------- --------- --------- ---------
£ £ £ £
Cash in
hand, 4,095,078 794,727 - 4,889,805
at
bank
Less (3,987,686) 328,922 - (3,658,764)
DVP --------- --------- --------- ---------
cash
NET 107,392 1,123,649 - 1,231,041
FUNDS ========= ========= ========= =========
23. OPERATING LEASE COMMITMENTS
At 31 December 2004 the company was committed to making the following
payments during the next year in respect of operating leases which expire:
Land and
Buildings
---------
£
After more than five years: 19,750
=========
24. CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE COMPANY
Consolidated profit and loss account from the date of incorporation on 20 April
2004 to 31 December 2004 for Jarvis Securities plc:
Total
£
---------
Turnover 1,226,880
Administrative expenses 823,012
Exceptional administrative expenses 132,860
---------
Total administrative expenses 955,872
Total operating profit 271,008
---------
Taxation on profit on ordinary activities 37,682
Profit on ordinary activities after taxation 233,326
---------
Dividends - ordinary 225,675
---------
Retained profit for the period 7,651
=========
The profit and loss account above is required by the Companies Act 1985 and
covers the first statutory accounting reference period of Jarvis Securities plc
from its date of incorporation on 20 April 2004 to 31 December 2004.
Disclosure notes for this period are not presented, as the directors do not
believe that they would provide meaningful information to the users of the
accounts.
Directors' remuneration for this period is included within the amounts disclosed
in the Remuneration Report, which covers remuneration for the year to 31
December 2004. Amounts for the period 20 April 2004 to 31 December 2004 in
respect of salaries and other related costs can be derived by apportioning the
annual amounts.
25. STATUS OF FINANCIAL INFORMATION
The financial information set out in the announcement does not constitute the
company's statutory accounts for the year ended 31 December 2004 or 2003. The
financial information for the year ended 31 December 2003 is derived from the
statutory accounts for that year, which have been delivered to the Registrar of
Companies. The auditors reported on those accounts; their report was unqualified
and did not contain a statement under S237(2) or (3) Companies Act 1985. The
statutory accounts for the year ended 31 December 2004 will be finalised on the
basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the company's annual general meeting.
This information is provided by RNS
The company news service from the London Stock Exchange
BBBA