Half Yearly Report

RNS Number : 0829O

LMS Capital PLC

04 August 2014

 



4 August 2014

LMS Capital plc

Half Year Results for the six months ended 30 June 2014

The Board of LMS Capital plc, ("LMS Capital" or "the Company"), is pleased to announce the Company's half year results for the six months to 30 June 2014.

·     In May the Company completed a third tender offer amounting to £40 million which brought the total returned to shareholders so far to £115 million.

·     Proceeds of realisations in the period were £40.5 million (2013: £29.9 million), including £31.8 million from the sale of Updata Infrastructure (UK) and £2.6 million from the sale of part of our holding in Weatherford International.

·     Distributions from funds were £5.6 million (2013: £8.2 million) - calls to meet fund commitments were £0.6 million (2013: £2.5 million). 

·     Net Asset Value per share at 30 June 2014 was 94p (31 December 2013: 88p). Net Asset Value was £136.1 million (31 December 2013: £165.3 million).

·     The investment portfolio showed a net gain of £19.0 million (2013: £6.5 million) before unrealised net currency losses of £3.0 million (2013: net gains of £7.4 million) and carried interest charges of £2.3 million (2013: £1.1 million).

·     At 30 June 2014 we had liquid assets of £37.6 million (31 December 2013: £41.8 million), being net cash of £7.6 million (31 December 2013: £17.8 million) and quoted securities of £30.0 million (31 December 2013: £24.0 million). Outstanding commitments to funds were £7.4 million, down from £8.1 million at the end of 2013.

Martin Knight, Chairman of LMS Capital, said: 

"We are pleased to have achieved further realisations during the first half of 2014 and to have completed a third tender offer for £40 million, bringing the total returned to shareholders since the commencement of the realisation strategy to £115 million.

The performance of the investment portfolio and the realisation strategies around individual assets continue to progress and produce results."

For further information please contact:

LMS Capital plc                                                                                                020 7935 3555

Nick Friedlos, Director

Tony Sweet, Chief Financial Officer

J.P. Morgan Cazenove                                                                                   020 7742 4000

Michael Wentworth-Stanley

MHP Communications                                                                                  020 3128 8100

Katie Hunt

Naomi Lane

About LMS Capital

LMS Capital is an investment company which, following a general meeting on 30 November 2011, is undertaking a realisation strategy with the aim of achieving a balance between an efficient return of cash to shareholders and optimising the value of the Company's investments. Its investment portfolio consists of small to medium sized companies across a range of sectors.

www.lmscapital.com

Half year review 2014

Overview

The focus of the Company's directors is to optimise realisations from the investment portfolio and return the proceeds to shareholders on a timely basis. The investment portfolio comprises publicly quoted and private company investments in the UK and the US held directly and through funds. To date returns to shareholders have taken the form of tender offers and related share buybacks and the directors expect the use of tender offers to continue as the realisation strategy progresses. In May the Directors completed a third tender offer which brought the total returned to shareholders so far to £115 million. This equates to around 48% of the net asset value at the end of 2011 ("Opening Net Asset Value") and approximately 74% of the Company's market capitalisation at the time of the November 2011 general meeting to approve the realisation strategy ("Opening Market Capitalisation").

Under the terms of the realisation strategy, no investments will be made in new opportunities. Follow-on investments will be made in existing assets to honour commitments made at the time of the initial investment and/or to which the Company is legally obligated, or where the investment is made to protect or enhance the value of an existing asset or to facilitate its orderly realisation.

In the first half of 2014 the Company received proceeds of £40.5 million principally from the sale of Updata, distributions from funds and from the sale of part of our holding in Weatherford International. These proceeds generated realised gains of £12.4 million (compared to closing 2013 reported book values), most of which arose on Updata. This level of realisation together with cash already held facilitated the further return to shareholders of £40 million in May.

Excluding the impact of foreign exchange movements and carried interest charges in the period, the remaining portfolio had unrealised net gains of £6.6 million. This includes £8.6 million on our quoted portfolio (including £8.2 million attributable to our holding in Weatherford International)offset by a net reduction in value of our fund portfolio. An analysis of the gains and losses on the portfolio is set out later in this report.

The movement in net asset value during the first half of 2014 was as follows:

	Six months ended 30 June
	2014		2013
	£'000		£'000
1 January	165,254		192,106
Return on investments	13,668		12,895
Overheads, net of other income	(1,985)		(1,737)
Taxation, interest and foreign exchange translation differences	(354)		(198)
Tender offer, including costs	(40,471)		-
30 June	136,112		203,066

 Key performance indicators

The following are the key performance indicators for the first half of 2014:

		Six months ended 30 June
		2014		2013
Cash realisations from the investment portfolio - gross	£'million	40.5		29.9
Cash realisations from the investment portfolio - net	£'million	33.4		25.1
Cash returned to shareholders - period	£'million	40.0		-
Cash returned to shareholders - cumulative	£'million	115.0		40.0
Cumulative returns to shareholders compared to Opening Market Capitalisation	%	74%		26%
Cumulative returns to shareholders compared to Opening Net Asset Value	%	48%		16%
NAV per share	pence	94		90

Cash realisations from the portfolio in the period were as follows:

	Six months ended 30 June
	2014		2013
	£'000		£'000
Sales of investments	34,360		21,032
Capital restructurings and loan repayments	600		671
Distributions from funds	5,559		8,166
Total - gross	40,519		29,869
Follow-on investments	(1,991)		(1,160)
Fund calls	(552)		(2,511)
Carried interest payments	(4,604)		(1,098)
Total - net	33,372		25,100

Sales of investments in the first half of this year include £31.8 million from the sale of Updata and £2.6 million from the sale of part of our holding in Weatherford International. We sold 10% of our shareholding at the start of the year and currently have 1,845,000 shares in this US quoted oilfield services company.

Follow-on investments included £1.7 million to provide working capital for ICU Eyewear (a portfolio company of San Francisco Equity Partners) and £0.3 million to provide working capital for two of our smaller investments

Carried interest payments resulted from the sale of Updata - this sale generated a net return to the Company (after costs and carried interest) of 5.3 times cash invested and an IRR of 52% since acquisition in 2009.

For the six months to 30 June 2014, the gains and losses on our portfolio were as follows:

		Six months ended 30 June
		2014		2013
Gains/(losses), net		£'000		£'000
Quoted securities		8,521		5,772
Direct investments		9,748		6,297
Funds		(2,298)		1,890
		15,971		13,959
Being:
Realised gains		12,379		1,252
Unrealised valuation gains/(losses), net		6,616		5,287
		18,995		6,539
Unrealised currency gains/(losses)		(3,024)		7,420
Portfolio return above		15,971		13,959
Less: charges for carried interest and incentive plans		(2,303)		(1,064)
Total gains/(losses), net		13,668		12,895

Approximately 68% of the portfolio at 30 June 2014 is denominated in US dollars (31 December 2013: 59%). In the first half of 2014, the weakening of the US dollar against pound sterling resulted in an unrealised foreign currency loss of £3.0 million (2013: unrealised gain of £7.4 million). As is common practice in private equity investment, it is the Board's current policy not to hedge the Company's underlying non-sterling investments.

Details of our ten largest investments by valuation at 30 June 2014, representing approximately 71% of the total portfolio, are set out on page 7.

Overheads

Excluding foreign currency transaction gains and losses, operating expenses were further reduced to £1.8 million (2013: £2.4 million).

Financial position

At 30 June 2014 we had liquid assets of £37.6 million (31 December 2013: £41.8 million), being net cash of £7.6 million (31 December 2013: £17.8 million) and quoted securities of £30.0 million (31 December 2013: £24.0 million). Uncalled commitments to funds were £7.4 million (31 December 2013: £8.1 million).

Principal risks and uncertainties

The principal risks and uncertainties that affect the Group are described on pages 9 and 10 of the Group's Annual Report for the year ended 31 December 2013. These are still considered the most relevant risks and uncertainties which the Group faces and they could have an impact on the Group's performance in the second half of the financial year.

There are a number of risks which could adversely affect the business of the Group, the most significant of which in the context of current market conditions are:

·     The Group is subject to economic factors (such as the market demands of the sectors in which its investments operate) which may negatively impact the performance and growth rates of the Company's investments which may result in the Company's Net Asset Value and net income declining.

·     A lack of liquidity in the capital markets and an increased aversion to risk on the part of potential buyers could mean that the Company may not be able to realise its investments in line with planned timings and values. This could impact the timing and amount of capital returned to shareholders under the Company's asset realisation strategy.

·     The Group is subject to the impact of changes in market prices for its quoted investments, as well as to movements in interest rates and exchange rates. A significant proportion of our investment portfolio is denominated in a currency other than pounds sterling, principally US dollars. It is the Board's current policy not to hedge the Company's underlying non-sterling investments.

·     The experience of the management team is a key factor in mitigating our risk of loss on individual investments.

Outlook

The performance of the investment portfolio and the realisation strategies around individual assets continue to progress and produce results.

Nick Friedlos

Director

4 August 2014

LMS Capital plc                     

Principal investments by valuation - 30 June 2014

Name	Geography	Type	Sector	Date of initial investment	Book value £'000
Weatherford International	US	Quoted	Energy	1984	24,802
Brockton Capital	UK	Fund	Property	2006	15,168
Medhost Inc (formerly HealthTech)	US	Unquoted	Technology	2007	12,221
Yes To, Inc*	US	Unquoted	Consumer	2008	9,970
Nationwide Energy Partners	US	Unquoted	Energy	2010	9,531
ICU Eyewear*	US	Unquoted	Consumer	2010	5,830
Penguin Computing*	US	Unquoted	Technology	2004	5,380
BV Investment Partners	US	Funds	Buyouts	1996	5,212
Entuity	UK	Unquoted	Technology	2000	5,000
Wesupply	UK	Unquoted	B-2-B service provider	2000	4,000

*A portfolio company of San Francisco Equity Partners.

Condensed consolidated income statement

				Six months ended 30 June
				2014	2013
		Notes		£'000	£'000
Gains and losses on investments		2		13,668	12,895
Directors' and other fees from investments				61	55
Interest income				23	48
				13,752	12,998
Operating expenses				(2,046)	(1,792)
Profit before tax				11,706	11,206
Taxation				(391)	(109)
Profit for the period				11,315	11,097
Attributable to:
Equity holders of the parent				11,315	11,097
Earnings per ordinary share - basic		3		6.3p	4.9p
Earnings per ordinary share - diluted		3		6.3p	4.9p

The notes on pages 13 to 16 form part of these financial statements.

Condensed consolidated statement of

comprehensive income

		Six months ended 30 June
		2014	2013
		£'000	£'000
Profit  for the period		11,315	11,097
Exchange differences on translation of foreign operations		14	(137)
Total comprehensive profit for the period		11,329	10,960

Attributable to:
Equity holders of the parent		11,329	10,960

The notes on pages 13 to 16 form part of these financial statements.

Condensed consolidated statement

of financial position

			30 June 2014	31 December 2013
	Notes		£'000	£'000
Non-current assets
Property, plant and equipment			452	513
Investments	2		136,997	157,721
Non-current assets			137,449	158,234
Current assets
Operating and other receivables			541	532
Cash and cash equivalents			7,570	17,824
Current assets			8,111	18,356
Total assets			145,560	176,590
Current liabilities
Operating and other payables			(5,799)	(7,123)
Current tax liabilities			(641)	(641)
Current liabilities			(6,440)	(7,764)
Non-current liabilities
Provisions and other long-term liabilities			(3,008)	(3,572)
Non-current liabilities			(3,008)	(3,572)
Total liabilities			(9,448)	(11,336)
Net assets			136,112	165,254
Equity
Share capital			14,525	18,736
Share premium account			508	508
Capital redemption reserve			18,497	14,286
Merger reserve			84,083	84,083
Foreign exchange translation reserve			792	778
Retained earnings			17,707	46,863
Equity attributable to owners of the parent			136,112	165,254

The financial statements on pages 8 to 16 were approved by the Board on 4 August 2014 and were signed on its behalf by:                                                                                               

N Friedlos

Director

The notes on pages 13 to 16 form part of these financial statements.

Condensed consolidated statement

of changes in equity

Six months ended 30 June 2014           

	Share capital £'000	Share premium £'000	Capital redemption reserve £'000	Merger reserve £'000	Translation reserve £'000	Retained earnings £'000	Total equity £'000
Balance at 1 January 2014	18,736	508	14,286	84,083	778	46,863	165,254
Total comprehensive income for the period
Profit for the period	-	-	-	-	-	11,315	11,315
Exchange differences on translation of foreign operations	-	-	-	-	14	-	14
Transactions with owners, recorded directly in equity
Repurchase of shares	(4,211)	-	4,211	-	-	(40,471)	(40,471)
Share-based payments	-	-	-	-	-	-	-
Balance at 30 June 2014	14,525	508	18,497	84,083	792	17,707	136,112

Six months ended 30 June 2013

	Share capital £'000	Share premium £'000	Capital redemption reserve £'000	Merger reserve £'000	Translation reserve £'000	Retained earnings £'000	Total equity £'000
Balance at 1 January 2013	22,625	508	10,397	84,083	697	73,796	192,106
Total comprehensive income for the period
Profit for the period	-	-	-	-	-	11,097	11,097
Exchange differences on translation of foreign operations	-	-	-	-	(137)	-	(137)
Balance at 30 June 2013	22,625	508	10,397	84,083	560	84,893	203,066

The notes on pages 13 to 16 form part of these financial statements.

Condensed consolidated cash flow statement

			Six months ended 30 June
			2014	2013
			£'000	£'000
Cash flows from operating activities
Profit for the period			11,315	11,097
Adjustments for:
Depreciation and amortisation			65	54
Gains on investments			(13,668)	(12,895)
Translation differences			433	(972)
Interest income			(23)	(48)
Income tax expense			391	109
			(1,487)	(2,655)
Change in operating and other receivables			(9)	594
Change in operating and other payables			(4,648)	(1,438)
			(6,144)	(3,499)
Income tax paid			(764)	(109)
Net cash used in operating activities			(6,908)	(3,608)
Cash flows from investing activities
Interest received			23	48
Acquisition of property, plant and equipment			(4)	-
Acquisition of investments			(3,145)	(3,671)
Proceeds from sale of investments			40,517	29,869
Other income from investments			153	257
Net cash from investing activities			37,544	26,503
Cash flows used in financing activities
Repurchase of own shares			(40,471)	-
Net cash used in financing activities			(40,471)	-
Net (decrease)/increase in cash and cash equivalents			(9,835)	22,895
Cash and cash equivalents at the beginning of the period			17,824	20,117
Effect of exchange rate fluctuations			(419)	835
Cash and cash equivalents at the end of the period			7,570	43,847

The notes on pages 13 to 16 form part of these financial statements.

Notes to the financial information

1.        Principal accounting policies

Reporting entity

LMS Capital plc ("the Company") is domiciled in the United Kingdom. These condensed consolidated financial statements are presented in pounds sterling because that is the currency of the principal economic environment of the Company's operations. The condensed consolidated financial statements of the Company for the six months ended 30 June 2014 comprise the Company and its subsidiaries (together "the Group").

These condensed consolidated financial statements do not constitute the statutory accounts of the Group within the meaning of section 434(3) and 435(3) of the Companies Act 2006. The comparative figures for the financial year ended 31 December 2013 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditor and delivered to the registrar of companies. The report of the auditor on the Company's statutory accounts for the financial year ended 31 December 2013 was (i) unqualified and (ii) drew attention by way of emphasis without qualifying their report to the accounts no longer being prepared on a going concern basis and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

The Company was formed on 17 March 2006 and commenced operations on 9 June 2006 when it received the demerged investment division of London Merchant Securities. The consolidated financial statements are prepared as if the Group had always been in existence. The difference between the nominal value of the Company's shares issued and the amount of the net assets acquired at the date of demerger has been credited to merger reserve.

Statement of compliance

These condensed consolidated financial statements have been prepared in accordance with IAS 34: Interim Financial Reporting as adopted by the EU. They do not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements for the year ended 31 December 2013 which were prepared in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRS").

As required by the Disclosure and Transparency Rules of the Financial Conduct Authority, the condensed consolidated financial statements have been prepared applying the accounting policies and presentation that were applied in the preparation of the Company's published consolidated financial statements for the year ended 31 December 2013.

On 30 November 2011 the shareholders approved a change in the investment policy of the Company with the objective of conducting an orderly realisation of the assets of the Company in a manner that seeks to achieve a balance between an efficient return of cash to shareholders and maximising the value of the Company's investments. As the Directors intend to liquidate the Company following the realisation and settlement of the remaining net assets, which may be over a number of years, these condensed consolidated financial statements have not been prepared on a going concern basis.

1.        Principal accounting policies (continued)

Taking account of the financial resources available to the Group, the directors believe that the Group is well placed to manage its business risks successfully despite the current uncertain economic outlook. After making enquiries the directors have a reasonable expectation that the Company and the Group have adequate resources for the foreseeable future.

These condensed consolidated financial statements were approved by the Board of Directors on • August 2014.

Significant accounting policies

The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended 31 December 2013.

Basis of consolidation

The Company's business purpose is solely to invest funds for returns from capital appreciation and for investment income and it measures and evaluates the performance of all of its investments on a fair value basis. Accordingly it meets the criteria for investment entity status set out in IFRS 10 (as amended) and (as permitted) the Company early adopted the amendments with a date of initial application of 1 January 2013.

The financial statements comprise the financial statements of the Company and its subsidiary undertakings up to 30 June 2014. Investments measured at fair value through profit or loss are held through a series of intermediate holding companies which are consolidated within the Group financial statements. Note 6 includes details of the companies included in the consolidated financial information.

Use of estimates and judgements

The preparation of condensed consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

2.        Investments

The carrying amounts and gains and losses on investments were as follows:

Carrying amounts
	30 June 2014				31 December 2013
	UK	US	Total		UK	US		Total
Asset type	£'000	£'000	£'000		£'000	£'000		£'000
Funds	27,558	34,887	62,445		29,156	39,990		69,146
Quoted	1,766	28,256	30,022		1,406	22,630		24,036
Unquoted	15,140	29,390	44,530		34,654	29,885		64,539
	44,464	92,533	136,997		65,216	92,505		157,721

Gains/(losses) on investments	Six months ended 30 June 2014				Six months ended 30 June 2013
	Realised gains	Unrealised gains/(losses)	Total		Realised gains/(losses)	Unrealised gains	Total
Asset type	£'000	£'000	£'000		£'000	£'000	£'000
Funds	1,284	(3,582)	(2,298)		(356)	2,246	1,890
Quoted	650	7,871	8,521		158	5,614	5,772
Unquoted	10,445	(697)	9,748		1,450	4,847	6,297
	12,379	3,592	15,971		1,252	12,707	13,959
Charges for incentive plans			(2,303)				(1,064)
			13,668				12,895

3.        Earnings per ordinary share

The calculation of the basic and diluted earnings per share, in accordance with IAS 33, is based on the following data:

		Six months ended
		30 June 2014	30 June 2013
		£'000	£'000
Earnings
Earnings for the purposes of earnings per share being net profit attributable to equity holders of the parent		11,315	11,097
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per shares		180,338,740	226,244,974
Effect of dilutive potential ordinary shares
Share options and performance shares		78,531	969,013
Weighted average number of ordinary shares for the purposes of diluted earnings per share		180,417,271	227,213,987
Earnings per share
Basic		6.3p	4.9p
Diluted		6.3p	4.9p

4.        Capital commitments

			30 June 2014		31 December 2013
			£'000		£'000
Outstanding commitments to funds			7,417		8,139
			7,417		8,139

The outstanding commitments to funds comprise unpaid calls in respect of funds where a member of the Group is a limited partner.

5.        Related party transactions

Transactions with related parties during the period were consistent in nature and scope with those disclosed in Note 21 to the Group's annual financial statements for the year ended 31 December 2013.

6.        Subsidiaries

The Group's principal subsidiaries are as follows:

Name	Country of incorporation	Holding %	Activity
International Oilfield Services Limited	Bermuda	100	Investment holding
LMS Capital (Bermuda) Limited	Bermuda	100	Investment holding
LMS Capital (ECI) Limited	England and Wales	100	Investment holding
LMS Capital (General Partner) Limited	Bermuda	100	Investment holding
LMS Capital (GW) Limited	Bermuda	100	Investment holding
LMS Capital Group Limited	England and Wales	100	Investment holding
LMS Capital Holdings Limited	England and Wales	100	Investment holding
LMS NEP Holdings Inc	United States of America	100	Investment holding
Lioness Property Investments Limited	England and Wales	100	Investment holding
Lion Property Investments Limited	England and Wales	100	Investment holding
Lion Investments Limited	England and Wales	100	Investment holding
Lion Cub Investments Limited	England and Wales	100	Dormant
Lion Cub Property Investments Limited	England and Wales	100	Investment holding
Tiger Investments Limited	England and Wales	100	Investment holding
LMS Tiger Investments Limited	England and Wales	100	Investment holding
LMS Tiger Investments (II) Limited	England and Wales	100	Investment holding
Westpool Investment Trust PLC	England and Wales	100	Investment holding

In addition to the above, certain of the Group's carried interest arrangements are operated through five limited partnerships (LMS Capital 2007 LP, LMS Capital 2008 LP, LMS Capital 2009 LP, LMS Capital 2010 LP and LMS Capital 2011 LP) which are registered in Bermuda.

Statement of directors' responsibilities

The Directors who served during the six months ended 30 June 2014 and their respective responsibilities are as set out on page 11 of the Group's Annual Report for the year ended 31 December 2013.

We confirm that to the best of our knowledge:

a      the condensed consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU; and

b     the interim management report includes a fair review of the information required by:

i       DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the current financial year and their impact on the condensed consolidated financial statements, and a description of the principal risks and uncertainties for the remaining six months of the year; and

ii     DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Group during that period; and any changes in the related party transactions described in the last annual report that could do so.

N Friedlos                                                                                           AC Sweet

Director                                                                                               Chief Financial Officer

4 August 2014

Independent review report to LMS Capital 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 2014 which comprises the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated statement of financial position, the condensed consolidated statement of changes in equity, the condensed consolidated cash flow statement and the related explanatory notes. 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 the terms of our engagement to assist the Company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA"). Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this 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 reached.

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 DTR of the UK FCA.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34Interim Financial Reporting as adopted by the EU.

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 UK. 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 June 2014 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FCA.

Iain Bannatyne

for and on behalf of KPMG LLP
Chartered Accountants
8 Salisbury Square

London EC4Y 8BB

4 August 2014

 

END

 

 

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