Interim Results

Rensburg plc 29 June 2004 29 June 2004 Rensburg plc ('Rensburg') INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MAY 2004 Rensburg, (formerly BWD Securities PLC), the Investment Management Group - Key Points: • Profit before tax, goodwill amortisation and exceptional items of £4.2m (2003: £3.0m), an increase of 40%. • Basic earnings per share before goodwill amortisation and exceptional items of 13.3p (2003: 9.5p), an increase of 40%. • Interim dividend unchanged at 6.0p per share. • Fee and other recurring income at £11.7m (2003: £9.4m) an increase of 24% • Group funds under management at £3.91bn (2003: £3.51bn) an increase of 11%. Mike Burns, Chief Executive of Rensburg, commented: 'It is pleasing to report results which reflect on the marked improvement in trading conditions over the comparable period in 2003. The strong capital base of the Group means we remain well positioned to take advantage of any increase in acquisition opportunities.' For further information, please contact: Mike Burns, Chief Executive Tel: 0151 227 2030 Rensburg plc Nick Lyon Tel: 020 7796 4133 Hudson Sandler INTERIM STATEMENT Financial results & dividend It is pleasing to report results which reflect on the marked improvement in trading conditions over the comparable period in 2003. In particular, the relatively stable environment in the first half of the current year contrasts sharply with the volatility experienced in the UK financial markets during the equivalent period of the prior year. The Group's profit before tax, goodwill amortisation and exceptional items for the six months ended 31 May 2004 was £4.2 million (2003: £3.0 million), from a total income of £18.2 million (2003: £16.0 million). Fee and other recurring income increased to £11.7 million (2003: £10.3 million). Basic earnings per share before goodwill amortisation and exceptional items were 13.3p (2003: 9.5p). Excluding the contribution in the prior first half-year from the Administration Services division, which was disposed of in February 2003, the total income of £18.2 million represents an underlying increase of 23% over the prior corresponding period; more importantly, on this basis, fee and other recurring income of £11.7 million represents an increase of 24%. The Directors have declared an unchanged interim dividend of 6.0p payable on 1 October 2004 to shareholders on the register at 20 August 2004. Name change Following shareholder approval given at the Company's Annual General Meeting on 30 March 2004, the name of the Company was changed to Rensburg plc on 28 May 2004. Simultaneously, BWD Rensburg Limited became Rensburg Investment Management Limited and BWD Rensburg Unit Trust Managers Limited became Rensburg Fund Management Limited. Operations Rensburg Investment Management increased managed clients' funds by 9.8% to £3.46 billion (2003: £3.15 billion). This compares to an increase in the FTSE / APCIMS Private Investors Balanced index of 6.9% over the year. Fee-paying funds included in these figures increased by 20.5% to £1.88 billion (2003: £1.56 billion). At the beginning of the period, our in-house Self-Invested Personal Pension (' SIPP') administration system became fully operational and the initial clients have now moved smoothly onto this new service. This, combined with our financial planning service, assists in ensuring that we are able to offer our clients an increasingly comprehensive approach to the management of their wealth. Mid-way through the period an established team of three institutional sales traders joined our London office and have settled in well. The positive changes announced in the recent Budget with regard to investment in Venture Capital Trusts ('VCTs') should assist our VCT management division. Rensburg Fund Management increased the value of funds under management by 26% to £448 million (2003: £356 million). As implied by its change of name, this business is looking to expand its services beyond purely managing unit trusts; in particular, it is presently seeking opportunities to run segregated mandates. Outlook The summer of 2003 was unusually busy, as markets recovered their poise all over the world. This year we do not expect further dramatic re-ratings and the economic and political outlook is more than usually opaque as economies grapple with increased oil prices, rising interest rates and the troubled Middle Eastern situation, which all affect investors' confidence. Nevertheless, the strong capital base of the Group means we remain well positioned to take advantage of any increase in acquisition opportunities. C.G. Clarke M.H. Burns Chairman Chief Executive 28 June 2004 Consolidated Profit and Loss Account 2004 2003 2003 6 months 6 months 12 months ended ended ended 31 May 31 May 30 Nov £'000 £'000 £'000 Note Turnover Continuing operations 18,203 14,787 32,005 Discontinued operations - 1,245 1,245 18,203 16,032 33,250 Operating expenses (14,692) (13,475) (27,555) Goodwill amortisation (434) (482) (917) Total administrative expenses (15,126) (13,957) (28,472) _______ _______ _______ Operating profit Continuing operations 3,077 1,966 4,669 Discontinued operations - 109 109 _______ _______ _______ 3,077 2,075 4,778 Profit on disposal of subsidiaries - 10,472 10,472 Profit on disposal of fixed asset investments - - 390 Net interest receivable 710 451 1,150 _______ _______ _______ Profit on ordinary activities before taxation 3,787 12,998 16,790 Tax on profit on ordinary activities (1,309) (942) (1,928) _______ _______ _______ Profit on ordinary activities after taxation 2,478 12,056 14,862 Dividends (1,313) (1,308) (3,933) _______ _______ _______ Retained profit for the period 1,165 10,748 10,929 _______ _______ _______ Earnings per share before goodwill 1 amortisation and exceptional items -Basic 13.3p 9.5p 22.6p -Diluted 13.0p 9.4p 22.1p Earnings per share 1 -Basic 11.3p 55.4p 68.2p -Diluted 11.1p 54.6p 66.8p Dividend per share 6.0p 6.0p 18.0p The Group has no recognised gains and losses other than those included in the profits above and therefore no separate statement of total recognised gains and losses is presented. Consolidated Balance Sheet 2004 2003 2003 31 May 31 May 30 Nov £'000 £'000 £'000 Fixed assets Intangible assets 14,121 14,990 14,555 Tangible assets 3,552 3,088 3,267 Investments 500 500 500 _______ _______ _______ 18,173 18,578 18,322 _______ _______ _______ Current assets Debtors 25,705 26,111 23,662 Cash at bank and in hand 36,444 32,845 35,420 _______ _______ _______ 62,149 58,956 59,082 Creditors Amounts falling due within one year (34,546) (32,486) (32,108) _______ _______ _______ Net current assets 27,603 26,470 26,974 _______ _______ _______ Total assets less current liabilities 45,776 45,048 45,296 Creditors Amounts falling due after more than one year (2,660) (3,272) (3,340) Provisions for liabilities and charges (83) (103) (92) _______ _______ _______ Net assets 43,033 41,673 41,864 _______ _______ _______ Capital and reserves Called up share capital 2,208 2,208 2,208 Reserves 40,825 39,465 39,656 _______ _______ _______ Equity shareholders' funds 43,033 41,673 41,864 _______ _______ _______ Consolidated Cash Flow Statement 2004 2003 2003 6 months 6 months 12 months ended ended ended 31 May 31 May 30 Nov £'000 £'000 £'000 Note Net cash inflow from operating activities (a) 4,268 1,633 6,813 Returns on investment and servicing of finance Interest received 1,106 570 1,240 Interest paid (34) (138) (313) Taxation paid (1,204) (1,045) (2,022) Capital expenditure and financial investment Purchase of tangible fixed assets (496) (495) (817) Proceeds from sale of tangible fixed assets 2 1,430 1,432 Proceeds from sale of fixed asset investments - - 390 Acquisitions and disposals Proceeds from sale of subsidiary undertakings - 18,469 18,469 Costs associated with disposal - (704) (704) Cash disposed of with subsidiary undertakings - (1,704) (1,704) Equity dividends paid (2,622) (2,609) (3,920) _______ _______ _______ Cash inflow before financing 1,020 15,407 18,864 Financing Issue of ordinary share capital 4 - 10 Decrease in debt - (4,000) (4,000) Redemption of loan notes - (180) (1,072) _______ _______ _______ Increase in cash in the period (b) 1,024 11,227 13,802 _______ _______ _______ Notes to the Cash Flow Statement a. Reconciliation of operating profit to operating cash flows 2004 2003 2003 6 months 6 months 12 months ended ended ended 31 May 31 May 30 Nov £'000 £'000 £'000 Operating profit 3,077 2,075 4,778 Amortisation of goodwill 434 482 917 Depreciation 211 279 462 Profit on disposal of tangible fixed assets (2) (5) (47) (Increase)/decrease in debtors (2,332) (571) 2,157 Increase/(decrease) in creditors and provisions 2,880 (627) (1,454) _______ _______ _______ Net cash inflow from operating activities 4,268 1,633 6,813 _______ _______ _______ Net cash inflow from operating activities comprises: Continuing operations 4,268 1,776 6,956 Discontinued operations - (143) (143) _______ _______ _______ 4,268 1,633 6,813 _______ _______ _______ b. Analysis and reconciliation of net funds At 1 Dec Cash Other At 31 May 2003 flows changes 2004 £'000 £'000 £'000 £'000 Cash and deposits 35,420 1,024 - 36,444 Debt due after one year (982) - 750 (232) Debt due within one year (844) - (750) (1,594) _______ _______ _______ _______ Net funds 33,594 1,024 - 34,618 _______ _______ _______ _______ 2004 2003 2003 6 months 6 months 12 months ended ended ended 31 May 31 May 30 Nov £'000 £'000 £'000 Increase in cash in the period 1,024 11,227 13,802 Repayment of debt - 4,180 5,072 Issue of loan notes - (2,482) (2,482) _______ _______ _______ Movement in net funds in the period 1,024 12,925 16,392 Net funds at beginning of period 33,594 17,202 17,202 _______ _______ _______ Net funds at end of period 34,618 30,127 33,594 _______ _______ _______ Notes 1. Basic earnings per share before goodwill amortisation and exceptional items is calculated with reference to earnings for shareholders of £2,912,000 (May 2003: £2,066,000; Nov 2003: £4,917,000) and the weighted average number of shares in issue during the period of 21,856,987 (May 2003: 21,762,412; Nov 2003: 21,796,791). Basic earnings per share is calculated with reference to earnings for shareholders of £2,478,000 (May 2003: £12,056,000; Nov 2003: £14,862,000). Diluted earnings per share is the basic earnings per share, adjusted for the effect of the conversion into fully paid shares of the weighted average number of all employee share options outstanding during the period. The number of additional shares used for the diluted calculation is 534,030 (May 2003: 312,992; Nov 2003: 438,568). 2. The information contained in the 30 November 2003 consolidated balance sheet, profit and loss account and cash flow statement does not constitute full financial statements and has been extracted from the latest published financial statements for year ended 30 November 2003, which have been delivered to the Registrar of Companies. The report of the auditor on these financial statements was unqualified. The consolidated profit and loss accounts and cash flow statements for the six month periods and the consolidated balance sheets at 31 May 2003 and 31 May 2004 are unaudited. This information is provided by RNS The company news service from the London Stock Exchange

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