Final Results

Walker,Crips,Weddle,Beck PLC 11 June 2001 NEWS RELEASE For immediate release: 11 June 2001 PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2001 Walker, Crips, Weddle, Beck plc ('WCWB'), the fully Listed stock and share broker, announces Preliminary results for the year ended 31 March 2001. Commenting on the results, Michael Sunderland, Chief Executive of WCWB, said: 'Although the quieter trading conditions have meant that pre-tax profits declined to £1.2 million from £2.1 million, it is pleasing that the more consistent Investment and Money Management divisions of WCWB continued to drive forward their revenues. Fees from these areas rose by 43% to £1.9 million. We will continue to commit further resources and effort to increase our returns from these divisions.' FINANCIAL HIGHLIGHTS Turnover £12,238,000 (2000: £13,150,000) Gross profits £9,096,000 (2000: £9,392,000) Profit before tax 1,213,000 (2000: £2,078,000) Earnings per share 8.6p (2000: 16.5p) Final dividend of 4.0p for the year, combined with an interim dividend of 2.25p, making a total of 6.25p (2000: 6.0p) Graham Kennedy, Chairman of WCWB, commented: 'The company has continued its strategy for growth during the year and has implemented INVESTeLINK, an on-line dealing facility which is now available for trading through the Internet. 'The Board believes that the company is well positioned to meet the challenges of our increasingly competitive environment and will benefit strongly from an upturn in market activity.' For further information please contact: Michael Sunderland, Chief Executive Hamish McFall Rodney FitzGerald, Finance Director Marylene Guernier Walker, Crips, Weddle, Beck plc Tavistock Communications Limited Tel: 020 7253 7502 Tel: 020 7600 2288 Chairman's Statement For the year ended 31 March 2001 Review of the Year The past financial year started strongly in common with financial markets world-wide, but activity slowed sharply through the remainder of the year which resulted in a 21% reduction in the number of transactions handled by your company. Turnover totalled £12,238,000 (2000 - £13,150,000) and gross profit was slightly lower at £9,096,000 (2000 - £9,392,000) after commission payable to agents. I am pleased to report a profit before tax of £1,213,000 (2000 - £2,078,000) and post-tax profit for the year of £782,000 (2000 - £ 1,486,000). The Board is recommending a final dividend of 4 pence per share, which, with the interim already paid raises the total for the year to 6.25 pence net per share (2000 - 6 pence net per share). Subject to the dividend now proposed by the Directors being approved at the Annual General Meeting, payment will be made on the 16 July to shareholders on the register at the close of business on 22 June 2001. Progress The company has continued its strategy for growth during the year and has implemented INVESTeLINK, an on-line dealing facility which is now available for trading through the Internet. During the year Jan Luthman joined the company as Head of Research and many clients have already benefited from his market perception and skilful stock selection. Executive Directors, Associates and Staff In a year when many clients suffered losses, particularly in the technology sector, much credit is due to associates, management and staff whose combined effort in providing sound advice and maintaining efficient credit control prevented the emergence of any additional provisions. On your behalf, I thank them for all their efforts. Future Outlook The Board believes that the company is well positioned to meet the challenges of our increasingly competitive environment and will benefit strongly from an upturn in market activity. Annual General Meeting The Annual General Meeting will take place at 12:00 noon on 13 July 2001. This will be held at The Olof Lundberg Conference Room, Inmarsat Limited, 99 City Road, London EC1Y 1AX. G N KENNEDY Chairman Chief Executive's statement For the year ended 31 March 2001 Last year was dominated by the effect of the bubble bursting in technology stocks with constant market rotation between 'new' and 'old' economy stocks. The uncertainty created by extreme market gyrations made it difficult for most market participants. The usually busy trading period up to the end of the tax year failed to match our expectations and bargain volumes for the year declined to 169,287 from the record 215,728 previously. Although the quieter trading conditions have meant that profits declined to £ 1.2 million from £2.0 million, it is pleasing that the more consistent Investment and Money Management divisions of WCWB continued to drive forward their revenues. Fees from these areas rose by 43% to £1.9 million. Once again we will commit further resources and effort to increase our returns from these divisions. Our Associates and Branches dealt well through difficult markets and contributed positively yet again to the overall picture. Throughout this period our clientele certainly benefited from the wealth of knowledge and long-standing experience of our Associates. In line with market conditions our Execution-Only division, Investorlink, experienced a fairly sharp drop in volumes, especially towards the end of the year, but still generated £1.9 million of gross commission being 15% of turnover. Inevitably many customers were drawn into the technology sector which required application of tight credit control by Nigel Simmonds and his team. Yet again the average commission per bargain from Investorlink increased, this time to a level of £30. The industry sales statistics for ISAs were well down but the Advisory and Self-Select products marketed by WCWB continued to be popular with our existing client base. Year on year sales declined 26% but this was clearly a reflection on the success of our High Tech ISA the previous year and still compares favourably against many of our competitors. Funds under management within the PEP/ISA division now exceed £200 million. The Board continued to invest strongly in computer technology and in March 2001 the company was in a position to make available our own on-line share trading product INVESTeLINK. This important facility has initially been made available to clients who have in the past used our telephone dealing system, but a marketing campaign to reach a wider audience will be initiated when conditions are felt suitable. With the London Stock Exchange creating a market for its shares in May 2000, the company's balance sheet now reflects the material fair value of our 100,000 share holding. The recently-announced full listing of the London Stock Exchange will be followed with considerable interest. At present we are content to retain our holding which is currently valued at £3.5 million being a substantial element of the firm's net assets. The company is bound to be affected by the general level of overall market activity, but your Board have given much attention to expanding the base of operations which it is anticipated will bear fruit in the coming year. M J SUNDERLAND Chief Executive Profit and loss account For the year ended 31 March 2001 2001 2000 £'000 £'000 Turnover 12,238 13,150 Commission payable (3,142) (3,758) __________ __________ Gross profit 9,096 9,392 Administrative expenses (7,822) (7,281) __________ __________ Operating profit 1,274 2,111 Interest payable and similar charges (61) (33) __________ __________ Profit on ordinary activities before taxation 1,213 2,078 Tax on profit on ordinary activities (431) (592) __________ __________ Profit on ordinary activities after taxation 782 1,486 Dividends paid and proposed (574) (545) __________ __________ Retained profit for the year 208 941 __________ __________ Earnings per share Basic 8.6p 16.5p Diluted 8.3p 15.7p Statement of total recognised gains and losses For the year ended 31 March 2001 2001 2000 £'000 £'000 Profit for financial year 782 1,486 Unrealised surplus on revaluation 2,875 - __________ __________ Total recognised gains and losses relating to the year 3,657 1,486 Total gains and losses recognised since the last accounts 3,657 1,486 __________ __________ Balance Sheet 31 March 2001 2001 2000 £'000 £'000 Fixed assets As restated Tangible 1,102 1,097 Investments 2,950 75 __________ __________ 4,052 1,172 __________ __________ Current assets Debtors 37,852 125,825 Cash at bank and in hand 3,226 40 __________ __________ 41,078 125,865 Creditors: Amounts falling due within one year (35,789) (120,833) __________ __________ Net current assets 5,289 5,032 __________ __________ Net assets 9,341 6,204 __________ __________ Capital and reserves Called-up share capital 1,836 1,819 Share premium account 1,186 1,149 Profit and loss account 3,362 3,154 Revaluation reserve 2,875 - Other reserves 82 82 __________ __________ Shareholders' funds (all equity) 9,341 6,204 __________ __________ Cash flow statement For the year ended 31 March 2001 2001 2000 £'000 £'000 As restated Net cash inflow (outflow) from operating activities 9,181 (4,710) Returns on investments and servicing of finance (61) (33) Taxation (624) (203) Capital expenditure and financial investment (544) (685) Equity dividends paid (571) (448) __________ __________ Cash inflow (outflow) before management of liquid resources and financing 7,381 (6,079) Management of liquid resources (3,150) 1,550 Financing 54 143 __________ __________ Increase (decrease) in cash in the year 4,285 (4,386) __________ __________ Notes Dividends paid and proposed Year ended Period ended 31 March 31 March 2001 2000 £'000 £'000 Equity shares: Ordinary shares of 20p - interim paid of 2.25p (2000 - 2.00p) per share 207 181 - final proposed of 4.00p (2000- 4.00p) per share 367 364 __________ __________ 574 545 __________ __________ Earnings per share The calculation of basic earnings per share is based on the post-tax profit for the financial period of £782,000 (2000 - £1,486,000) and on 9,147,612 (2000 - 8, 991,543) ordinary shares of 20p, being the weighted average number of ordinary shares in issue during the period. The calculation of diluted earnings per share is based on the diluted post-tax profit for the financial period of £818,000 (2000 - £1,512,000) and on 9,885,653 (2000 - 9,634,793) ordinary shares, being the weighted average number of ordinary shares in issue during the period adjusted for dilutive potential ordinary shares (being share option schemes only). Annual Report and Accounts The auditors have not yet reported on accounts for the year ended 31 March 2001 nor have any such accounts been delivered to the Registrar of Companies. The Annual Report and Accounts will be posted to shareholders shortly and copies will also be available from the Company's Registered Office at Sophia House, 76/80 City Road, London EC1Y 2EQ.

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