Final Results

RNS Number : 5413G

Curtis Banks Group PLC

18 March 2020

 

18 March 2020

Curtis Banks Group plc

("Curtis Banks", the "Group")

Final Results for 12 months to 31 December 2019

Growth across all our financial metrics and substantial operational progress

Curtis Banks Group PLC, one of the UK's leading SIPP providers, is pleased to announce its final results for the 12 months to 31 December 2019.

Highlights

· Operating Revenue increased by 6% to £48.9m (2018: £46.1m)

· Adjusted Profit before tax^[1] increased by 11% to £13.4m (2018: £12.1m)

· Adjusted Operating Margin² increased to 28.1% (2018: 27.1%)

· Profit before tax increased by 8% to £10.9m (2018: £ 10.1m)

· Adjusted diluted EPS increased by 10% to 19.37p (2018: 17.63p) ³

· Gross organic growth in own SIPP numbers of 7% (2018: 9%) with total including third party administered now 76,541 (2018: 77,730)

· Assets under Administration increased by 17.3% to £29.1bn (2018: £24.8bn)

· Proposed final dividend of 6.50p (2018: 6.00p) making a full year payment of 9.00p (2018: 8.00p), an increase of 12.5%

Highlights and key performance indicators for the year include:

	2019	2018
Financial
Operating Revenue	£48.9m	£46.1m
Adjusted Profit before tax1	£13.4m	£12.1m
Profit before tax	£10.9m	£10.1m
Adjusted Operating Margin2	28.1%	27.1%
Diluted EPS3	15.85p	14.71p
Adjusted diluted EPS	19.37p	17.63p
Operational Highlights
Number of SIPPs Administered	76,541	77,739
Assets under Administration	£29.1bn	£24.8bn
Total organic new own SIPPs in year	4,567	5,838
Number of properties Administered	6,352	6,231

Commenting on the results, Will Self, CEO of Curtis Banks, said:

"These results demonstrate growth across all our financial metrics during a year in which we made important changes to the executive team and demonstrated the positive results of operational changes made in recent years.

"The highlights of our financial results show disciplined growth and an improving operating margin. During the year, we continued to invest in the operations of our business. A key highlight has been the launch of Your Future SIPP which has been a success with enormously positive feedback received from the adviser community.

"2020 began well with an improvement in the wider market, but the current COVID-19 outbreak has created uncertainty as to the outlook for the remainder of the financial year. It is clear that there will be a level of impact over the coming months, including operational disruption, but we have contingency plans in place for the business and the health of our employees and clients are our main priority."

Analyst and Investor Presentation:

There will be a presentation for analysts and investors via webcast on Wednesday 18^th March 2020 at 9.30am. The webcast details are as follows:

URL: https://zoom.us/j/819422756

Meeting ID: 819 422 756

Dial in details for audio only: [phone]

Contact:

Curtis Banks Group plc	www.curtisbanks.co.uk
Will Self - Chief Executive Officer	[phone]
Dan Cowland - Chief Financial Officer
Peel Hunt LLP (Nominated Adviser & Broker)	[phone]
Guy Wiehahn
Rishi Shah
N+1 Singer	[phone]
Mark Taylor
Rachel Hayes
Camarco (Financial PR)	[phone]
Ed Gascoigne-Pees
Jane Glover

 

Chairman's Statement

I am pleased to report the Curtis Banks Group results for the year ended 31 December 2019. These results disclose growth across all our financial metrics during a year in which we made important changes to the executive team and demonstrate the positive results of operational changes made in recent years. I am delighted by the way our new management team, with Will Self as CEO, Dan Cowland as CFO and Jane Ridgley as COO, work together to run the business.

The highlights of our financial results show disciplined growth and further improvement in the operating margin. Operating revenue has increased by 6% from £46.1m to £48.9m compared to the previous financial year, with adjusted profit before tax increasing by 11% from £12.1m to £13.4m. Our adjusted operating margin increased to 28.1% (2018: 27.1%) and profit before tax increased by 8% to £10.9m. Fully diluted earnings per share on these adjusted operating results (after tax) amounted to 19.37p per share (2018: 17.63p).

During the year, we have continued to invest in the operations of our business. The launch of Your Future SIPP has been a success with enormously positive feedback received from the adviser community. As stated in our interim results, we continue to see the benefits of the investment in our new sales structure, with 226 new adviser relationships delivering new business in the year. We have also invested significantly in our digital capabilities with a successful launch of a new customer portal which is accessible to 66% of clients onboarding. We are now beginning to see these investments benefiting the Group.

Our results need to be assessed in the context of the wider political and economic uncertainty in the pension market where Brexit and political uncertainties impacted client and adviser sentiment. This, in conjunction with proactive management of plans under administration, has led to a small decrease in the total number of SIPPs administrated by the Group from 77,739 to 76,541.

Dividends

We paid an interim dividend of 2.5p per share (2018: 2p per share) on 14 November 2019 and the Board proposes a final dividend of 6.5p per share (2018: 6p per share) which, if approved, will be paid to shareholders on the register at the close of business on 1 May 2020. The shares will be marked ex-dividend on 30 April 2020 and the proposed dividend paid on 8 June 2020.  This will mean the total dividend paid in respect of the year ended 31 December 2019 will increase by 12.5% to 9p per share (2018: 8p).

Summary and outlook

Curtis Banks has entered 2020 with good momentum and at the start of the new year we saw an improvement in conditions in the wider market. Whilst our revenue model is not linked to equity market movements the outlook for the coming year is likely to be affected by the current COVID-19 outbreak and there remains significant uncertainty over how this will unfold. Nevertheless, we believe our investments in the operations of the business will continue to benefit the Group and that the majority of the return on these investments is yet to come. We continue to actively seek appropriate acquisition opportunities to complement our organic growth.

I look forward to the future with confidence as Curtis Banks remains well placed to deliver long term value for all stakeholders.

Chris Macdonald

Chairman

17 March 2020

Chief Executive Officer's Review

Summary

My first year as Chief Executive Officer of the Group has seen growth delivered across all our financial metrics. We have reported an improved operating margin, whilst still investing in the business, to build a platform that will deliver excellent client service and operational efficiency to support further organic growth.

The last month has been dominated by the COVID 19 outbreak and has created a huge amount of uncertainty in the market. It is clear that there will be a level of impact over the coming months including operational disruption and the potential impact on new sales volumes however we have contingency plans in place for the business and remain confident in our underlying robust and resilient business model.

The financial performance of the business was strong with 6% growth in operational revenue and 11% in adjusted profit before tax. Importantly, we delivered a consequent improvement in adjusted operating margin to 28.1% (2018: 27.1%), continuing progression towards our target of 30%. This has been achieved through operational efficiencies such as the closer alignment of key operational teams and improved management of legacy issues. During the year we commenced a project to centralise commercial property administration within one office location.

We have continued to make significant operational progress throughout the business during the year. We successfully completed the launch of Your Future SIPP, a single proposition for the Group that combines the best offerings of both the Curtis Banks and Suffolk Life SIPPs. Already, 31% of own SIPP new business is written into Your Future SIPP, expected to increase to 70% of own SIPP new business by the end of 2020.

We have continued to diversify the business by focusing on areas of complementary strategic interest. We expanded our commercial property expertise through the launch of Rivergate Legal Limited and this activity was profitable over its first full year of trading in 2019. Rivergate is a complementary service for Curtis Banks and as such a significant portion of Rivergate's revenue is derived from clients selecting its services from the 'Curtis Banks Panel' of Solicitors. Rivergate has established a strong brand recognition in line with that of the Group, and as such longstanding client relations are driving notable success in increasing the number of repeat clients using its services, diversifying its offering. Rivergate's client base has expanded across the year which consists not only of pension scheme trustees and operators but also high net worth individuals. Rivergate has remained focused on the supply of commercial property and real estate services in line with the Groups strategy. Total properties administered by the Group has increased to over 6,350 (2018: 6,231) and we expect this to continue.

In June we announced the appointment of Dan Cowland to the Board as Chief Financial Officer. Dan is extremely experienced in financial services and previously worked for WH Ireland and Shore Capital. We are delighted at the way Dan has fitted into the business and adapted quickly to his new role. Dan and his team have continued to elevate the standards in financial reporting across the Group and will further support commercial analysis over the year ahead.

SIPP Sales

At the year end the number of SIPPs administered fell slightly to 76,541 (2018: 77,739), largely as a result of the inevitable, and largely expected, attrition from our older books combined with a slowdown in the pension transfer market. We added 4,567 gross new own SIPPs added organically (2018: 5,838), representing a gross organic growth rate of 6.55% (2018: 8.66%). In our two core areas of strategic focus, the Full SIPP saw a higher level of gross organic growth than last year at 3.35% (2018: 3.14%) but our mid SIPP gross organic growth rate reduced slightly to 10.78% (2018: 12.43%). This was due to a slowdown in the pension transfer market, with the wider retail savings sector remaining subdued. Our total own SIPP attrition rate was 7.04% during the year (2018: 6.07%). The table below sets out more detail on SIPPs numbers and rates of attrition.

	Full SIPPs	Mid SIPPs	eSIPPs	Total own SIPPs	Third Party Administered	Total
2019 number	19,869	27,799	21,726	69,394	7,147	76,541
2018 number	20,450	26,354	22,935	69,739	8,000	77,739
Gross organic growth rate*	3.35%	10.78%	4.53%	6.55%	0.35%	5.91%
SIPPs added organically	686	2,841	1,040	4,567	28	4,595
Conversions and reclassifications	(59)	59	-	-	-	-
SIPPs lost through attrition	(1,208)	(1,455)	(2,249)	(4,912)	(881)	(5,793)
Attrition rate *	5.91%	5.52%	9.81%	7.04%	11.01%	7.45%

^*Growth and attrition percentage rate based on opening SIPP numbers at the beginning of the year

Your Future SIPP

The launch of Your Future SIPP in February was a milestone for the Group and has allowed us to deploy our expertise and focus on customer service to offer advisers an extremely well-rounded product. The new SIPP has been well received by the market with 226 new adviser relationships delivering new business in the year, and 2,964 advisers and 2,259 clients registered to use the new adaptive portal.

The new SIPP and introduction of the new client portal greatly improves the user experience. This has been designed and continually developed in consultation with advisers; it will deliver efficiencies for our clients and reduce the time spent on administration for advisers, clients and our business. The enhanced digital functionality is completely responsive to all modern devices including smart phones, tablets and desktops. The new proposition also includes market access to a wide range of investment solutions, easy management of cash and automated adviser charging.

We believe that our new proposition is truly market leading by virtue of the suite of features it contains and the flexibility it provides to both advisers and their clients. Through the introduction of Your Future SIPP we are well placed to increase our organic growth of Full and Mid SIPPs over the coming years.

Legacy review

The first phase of our legacy review has been completed, identifying elements of our product portfolio to cleanse and informing our Target Operating Model. The commercial property data cleanse initiative has been completed with no further provision required (2018: £0.5m) although we have revised our assessment of contingent liabilities for £2.3m (2018: £1.5m).

Acquisition activity

Acquisitions are a core component of our growth strategy. We remain disciplined in our approach by considering each opportunity from both an earnings per share and return on investment perspective. We remain committed to exploring opportunities to add scale to our existing SIPP book and expand our offering through complementary acquisitions.

Industry context and regulation

Regulatory focus on the pension market continued during 2019. The Curtis Banks business model is clear and the fact that we only work with regulated financial advisers and do not give any advice or provide the investments held within our SIPPs protects our business from some of the challenges experienced by other SIPP Providers. Our fee structures also remain fair, transparent and competitive for our target market.

Non-standard investments have received an increasing amount of media coverage of late. While these are a significant issue for the wider industry, we do not consider them to be a material risk to our business. The Group continues to carry out robust due diligence on non-standard investments both at outset and throughout the life of the investment and all new Curtis Banks products have a clear Schedule of Allowable Investments.

We have undertaken a detailed review of the business to ensure a prudent approach to our legacy book, which is composed of our own SIPPs as well as a large number of historic acquisitions.

Our People and Culture

We have continued our focus on corporate social responsibility activities. I am delighted by the way our employees have fundraised for the charities we support and Curtis Banks continues to be an integral member of the communities in which we operate.

Being a diverse and inclusive business is integral to Curtis Banks. We continue to evaluate ways in which we can take steps forward to improve our commitment to our employees. As a business, we continue to strive to improve our diversity and our initiatives in this space will continue into 2020.

I would like to pay thanks to all our employees for their efforts over the course of the past year. They have made an enormous contribution to the Group and I look forward to working with them as Curtis Banks continues to grow.

Will Self

Chief Executive Officer

17 March 2020

Chief Financial Officer's Review

Results

A consistent financial performance for the year ended 31 December 2019 resulted in operational revenue increasing by 6% to £48.9m (2018: £46.1m) and adjusted profit before tax of £13.4m (2018: £12.1m), an increase of 11% over the previous year. Adjusted diluted EPS similarly increased by 10% to 19.37p (2018: 17.63p). Statutory profit before tax, which is stated after amortisation and non-recurring costs, was £10.9m (2018: £10.1m), up 8% on the previous year despite the non-recurring costs incurred during the year on previously announced restructuring activities. Diluted EPS on a statutory basis increased by 8% to 15.85p (2018: 14.71p). 

The improvement in underlying performance was achieved despite the domestic economic and political headwinds which persisted throughout the reporting year.  As with many other firms, we were not immune from the undeniable impact these have had on the financial services sector as a whole and the lack of client investment into SIPPs more generally has affected our organic growth.

These results show further improvement in adjusted operating margin to 28.1% (2018: 27.1%). A contributor to this was the increasing success of our Your Future SIPP product launched in early 2019, supported by a newly restructured nationwide sales distribution network which provides the Group with a much a broader geographic footprint than ever before.

The investment in our IT infrastructure is gaining positive momentum amongst advisers and clients. In addition to this the Group continues to leverage alignment opportunities across its three offices and identify areas which will improve both efficiencies and the levels of client servicing.

Revenue

Operational revenues of £48.9m in 2019 (2018: £46.1m) increased by 6% year on year, driven in particular by the resilient organic growth in own mid-SIPP numbers excluding attrition and an improvement in interest income.

Fee revenue from SIPP products remains the predominant source of fee income for the Group with 84% (2018: 87%) of these fees being recurring fixed annual fees. These fees are subject to contractual annual inflationary rises linked to average weekly earnings. Additional fixed fees are charged depending on the transactional services provided for each of the products.

All SIPP fees levied are fixed sterling charges and are not a percentage based charge on the value of the underlying assets held within the SIPP. As a result, the revenues of the Group are not vulnerable to movements in financial markets or commercial property values and are therefore subject to less volatility than many of our peers. This is a key differential that sets us apart from most of our competitors and provides an attractively priced product in terms of fees applied on higher value SIPPs.

Interest income margin on client deposits remains a significant part of the Group's revenue. In the year ended 31 December 2019, £12.7m of the Group operating revenues were from interest margin (2018: £10.8m). The Group operates a highly efficient treasury operation with diverse partners that helps keep SIPP fees lower for clients. The further strengthening of our relationships with these deposit providers has also been supported by an increase in the level of deposits held during the year. 

Interest rates paid to clients are set on a discretionary basis by the Group, in accordance with our terms and conditions, allowing flexibility to change as and when market movements necessitate and allow the Group to maintain more predictable and commercial levels of interest income. This is monitored via the Group Assets and Liabilities Committee which ensures fairness to clients as well as commercial outcome for the Group. Any discretion exercised is balanced carefully with the need to demonstrate fairness to clients as well as other stakeholders.

Expenses

The year ended 31 December 2019 saw administrative expenses increase by 4.8% to £35.2m from £33.6m.

Staff costs for the year increased by 4.6% to £22.9m (2018: £21.7m) and were primarily driven by salary inflation, referenced to average weekly earnings, and the first full year impact of the expanded distribution and sales team referred to earlier.

Staff costs continue to reflect the cost of share based payment awards under the Group's Long Term Incentive Plan and Save As You Earn ("SAYE") schemes, as well as the commitment to the auto enrolment of staff pension contributions. These measures continue to reflect the importance of staff satisfaction to the Group and contribute not only to improved levels of key staff engagement and retention but also drive the provision of desired service levels to clients which are demanded by our introducers of business.

Staff numbers have increased to 572 as at 31 December 2019 (2018: 558). This represents the support provided for the organic growth in own Full and Mid SIPPs achieved and to manage the migration of commercial property administration to a centralised function.

The other material operating expense that the Group incurs is in respect of IT and in 2019 this amounted to £3.4m (2018: £3.3m). This reflects not only the cost of supporting the core IT infrastructure across the Group's three offices but also the amount of investment in technological improvements to the SIPP administration platform and the programme of these improvements is expected to continue into 2023.

The cost of undertaking regulatory activity continues to increase and for the year ended 31 December 2019 the Group spent £1.1m (2018: £1.0m) on a combination of regulatory fees, levies and insurance.

Finance costs relating to interest payable on bank loans reduced by £0.1m year on year as the Group continues to repay borrowings taken out to facilitate the Suffolk Life acquisition in 2016. The debt continues to be repaid in line with scheduled terms and the covenants required by the bank in respect of this gearing are well covered.

Interest on the debt accrues at a rate of 1.75% over LIBOR.

The Group continues to take steps to improve its adjusted operating margin through a combination of revenue enhancements and operational efficiencies, balanced with the continued investment back into the business and the provision of a high quality service to our clients.

Non-Recurring costs

Non-recurring costs for the year can be broadly categorised into two core elements.

The senior management restructuring activities which have been signposted in our previous statements have now been completed with changes to both the Group's Executive Committee and the main Board. These changes leave the Group well placed to drive forward its strategic plans through both organic growth and targeted acquisition.

During the year ended 31 December 2019, the Group progressed its strategy to deliver its Target Operating Model by deciding to centralise commercial property administration within one office location. Redundancy costs associated with this decision as well as costs associated with duplicated staff efforts while work is transferred between offices have been included within non-recurring costs, totalling £696,000 in the year ended 31 December 2019. The Group expects further costs will be incurred associated with this transition, but not yet committed, of approximately £825,000 in the year ended 31 December 2020 recognisable as non-recurring costs.

Delivery of the Target Operating Model is ultimately seen as the main driver of operational efficiencies which are expected to be attainable once the broader investment in our IT infrastructure has been completed.

Suffolk Life Annuities

Part of the Suffolk Life Group of Companies, Suffolk Life Annuities Limited, is an insurance company that writes SIPP Products as insurance contracts. These are all non-participating investment contracts and so the Group does not bear any insurance risk. As the policyholder assets and liabilities are shown on the balance sheet of Suffolk Life Annuities Limited, these also show on the Group balance sheet on consolidation. Assets in the SIPPs administered by the rest of the Group are held in trust and not under insurance contracts and therefore do not need to be included on the balance sheet. As the policies are non-participating contracts, the client related assets and liabilities in Suffolk Life Annuities Limited match. In addition the revenues, expenses and investment returns of the non-participating investment contracts are shown in the consolidated statement of comprehensive income. Again, these income, expense items and investment returns due to the policyholders are completely matched. An illustrative balance sheet as at 31 December 2019 showing the financial position of the Group excluding the policyholder assets and liabilities is included as supplementary unaudited information after the notes to the financial statements. An illustrative cash flow on the same basis has also been provided.

Employee Benefit Trust ("EBT")

The EBT continues to be used to acquire shares in the Group in the open market to satisfy future vesting of options and long term incentive awards. The EBT is funded by loans from the Group. As at 31 December 2019, the EBT held 206,286 shares in Curtis Banks Group PLC (2018: 263,790). A number of options awarded under the Company's SAYE schemes vested during the year and awards were made from the shares held by the EBT.

The financial statements of the EBT are consolidated within the overall Group financial statements and these shares are shown on the balance sheet of the Group as Treasury Shares and are included within total equity.

Capital requirements

The Group's regulated subsidiary companies submit regular returns to the FCA and the PRA relating to their capital resources.  At 31 December 2019 the total regulatory capital requirement across the Group was £12.5m (2018: £11.7m) and the Group had an aggregate surplus of £11.7m (2018: £9.0m) across all regulated entities. In addition to this it is Group internal policy for regulated companies within the Group to hold at least 130% of their required regulatory capital and this has been maintained throughout the year.

Two of the principal trading subsidiaries of the Group are regulated by the FCA and the relevant capital adequacy rules do not allow current year profits to contribute towards solvency requirements until such profits are audited or externally verified. Once profits for the year ended 31 December 2019 are taken into account the regulatory capital surplus at 31 December 2019 increases to £21.7m.

Financial Position

The Group increased net assets by 12% to £55.5m as at 31 December 2019 (2018: £49.7m), and increased shareholder cash reserves from £28.0m to £31.2m over the same period.

As at 31 December 2019, the Group had net shareholder cash (after debt) of £19.9m (2018: £13.6m).

The Group adopted the provisions of IFRS 16, accounting for leases, for the accounting period commencing 1 January 2019. The effect of this on our financial performance is not material although the impact on the Group's balance sheet has been to increase Non-current assets and Current/Non-current liabilities.  It should be noted that our principal lenders exclude the impact of IFRS 16 when calculating our banking covenants. We have also received confirmation previously from the FCA that the provisions of IFRS 16 do not need to be taken into account in our regulatory capital calculations.

Outlook

The Group's profitability is not linked to market performance and therefore provides more visibility and less volatility of earnings. In 2020 we expect the combination of SIPP revenue growth and interest income to continue to add top line growth and we will maintain careful cost discipline whilst supporting our stated growth strategy.

Dan Cowland

Chief Financial Officer

17 March 2020

Consolidated statement of comprehensive income

 

			Year ended 31 December 2019							Year ended 31 December 2018
			Before amortisation and non-recurring costs		Amortisation and non-recurring costs		Total			Before amortisation and non-recurring costs		Amortisation and non-recurring costs		Total
		Notes	£'000		£'000		£'000			£'000		£'000		£'000
Operating revenue				48,949		-	48,949				46,125		-	46,125
Policyholder investment returns				365,815		-		365,815			41,677		-		41,677
Revenue		2		414,764		-	414,764				87,802		-	87,802
Administrative expenses				(35,218)		-	(35,218)				(33,637)		-	(33,637)
Non-participating investment contract expenses			(33,943)		-		(33,943)			(34,477)		-		(34,477)
Changes in provisions: Non-participating investment contract liabilities			(331,872)		-		(331,872)			(7,200)		-		(7,200)
Policyholder total expenses				(365,815)		-	(365,815)				(41,677)		-	(41,677)
Operating profit before amortisation and non-recurring costs				13,731		-		13,731			12,488		-		12,488
Non-recurring costs		4		-		(1,091)		(1,091)			-		(748)		(748)
Amortisation		3		-		(1,379)		(1,379)			-		(1,268)		(1,268)
Operating profit				13,731		(2,470)	11,261				12,488		(2,016)	10,472
Finance income				145		-		145			116		-		116
Finance costs				(523)		-		(523)			(467)		-		(467)
Profit before tax				13,353		(2,470)		10,883			12,137		(2,016)		10,121
Taxation		6		(2,502)		469		(2,033)			(2,294)		383		(1,911)
Total comprehensive income for the year				10,851		(2,001)		8,850			9,843		(1,633)		8,210
Attributable to:
Equity holders of the company								8,850							8,204
Non-controlling interests								-							6
								8,850							8,210
Earnings per ordinary share on net profit
Basic (pence)		7					16.49							15.30
Diluted (pence)*		7					15.85							14.71

The consolidated statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

*Adjusted to exclude anti-dilutive options, see note 7 for further detail

Consolidated statement of financial position

							Group
Group			Notes				As at 31-Dec-19 £'000		As at 31-Dec-18 £'000
ASSETS
Non-current assets
Intangible assets			8				43,427		44,110
Investment property			9				1,265,784		1,274,452
Property, plant and equipment			10				6,195		1,216
Investments							1,994,197		1,813,057
Deferred tax asset							911		595
							3,310,514		3,133,430
Current assets
Trade and other receivables							19,915		18,055
Cash and cash equivalents			11				421,547		431,576
Current tax asset							446		243
							441,908		449,874
Total assets							3,752,422		3,583,304
LIABILITIES
Current liabilities
Trade and other payables							15,608		15,204
Deferred income							26,192		24,601
Borrowings			12				28,215		30,005
Lease liabilities							719		-
Provisions			15				553		500
Deferred consideration							214		255
Current tax liability							738		991
							72,239		71,556
Non-current liabilities
Borrowings			12				48,911		56,525
Lease liabilities							3,915		-
Deferred consideration							-		125
Non-participating investment contract liabilities							3,571,904		3,405,428
							3,624,730		3,462,078
Total liabilities							3,696,969		3,533,634
Net assets							55,453		49,670
Equity attributable to owners of the parent
Issued capital							271		269
Share premium							33,659		33,451
Equity share based payments							2,313		1,357
Treasury shares							(534)		(716)
Retained earnings							19,730		15,295
							55,439		49,656
Non-controlling interest							14		14
Total equity							55,453		49,670

Approved by the Board of Directors and authorised for issue on 17 March 2020.

Dan Cowland

Chief Financial Officer

Company Registration No. 07934492

Consolidated statement of changes in equity

Group

	Issued capital £'000		Share premium £'000		Equity share based payments £'000		Treasury shares £'000		Retained earnings £'000		Total £'000		Non-controlling interest £'000		Total equity £'000
At 1 January 2018	269		33,451		731		(250)		10,403		44,604		14		44,618
Total comprehensive income for the year	-		-		-		-		8,204		8,204		6		8,210
Share based payments	-		-		626		-		-		626		-		626
Ordinary shares bought and sold by EBT	-		-		-		(466)		-		(466)		-		(466)
Deferred tax on share based payments	-		-		-		-		310		310		-		310
Ordinary dividends declared and paid	-		-		-		-		(3,622)		(3,622)		(6)		(3,628)
At 31 December 2018	269		33,451		1,357		(716)		15,295		49,656		14		49,670
Total comprehensive income for the year	-		-		-		-		8,850		8,850		-		8,850
Share based payments	-		-		956		-		-		956		-		956
Ordinary shares bought and sold by EBT	-		-		-		182		-		182		-		182
Ordinary shares issued	2		208		-		-		-		210		-		210
Deferred tax on share based payments	-		-		-		-		147		147		-		147
Ordinary dividends declared and paid	-		-		-		-		(4,562)		(4,562)		-		(4,562)
At 31 December 2019	271		33,659		2,313		(534)		19,730		55,439		14		55,453

Consolidated statement of cash flows

							Group
							Year ended 31 December
							2019   £'000		2018 As restated* £'000
Cash flows from operating activities
Profit before tax							10,883		10,121
Adjustments for:
Depreciation							1,321		596
Amortisation and impairments							1,379		1,268
Interest expense							523		467
Share based payment expense							956		626
Fair value (gains)/losses on financial investments							(232,848)		116,517
Additions of financial investments							(532,717)		(490,830)
Disposals of financial investments							584,425		593,549
Fair value losses/(gains) on investment properties							12,469		(47,275)
Increase/(decrease) in liability for investment contracts							166,476		(156,498)
Changes in working capital:
(Increase)/decrease in trade and other receivables							(1,730)		247
Increase in trade and other payables							1,990		992
Taxes paid							(2,454)		(1,375)
Net cash flows received from operating activities							10,673		28,405
Cash flows from investing activities
Purchase of intangible assets							(696)		(785)
Purchase of property, plant and equipment							(1,015)		(664)
Purchase of investment property							(125,848)		(201,425)
Purchase and sale of shares in the Group by the EBT							182		(466)
Receipts from sale of investment property							122,047		180,546
Net cash flows from acquisitions							(166)		(421)
Net cash flows used in investing activities							(5,496)		(23,215)
Cash flows from financing activities
Equity dividends paid							(4,562)		(3,628)
Net proceeds from issue of ordinary shares							210		-
Net decrease in borrowings							(9,456)		(7,538)
Principal elements of lease payments							(933)		-
Interest paid							(465)		(297)
Net cash used in financing activities							(15,206)		(11,463)
Net decrease in cash and cash equivalents							(10,029)		(6,273)
Cash and cash equivalents at the beginning of the year							431,576		437,849
Cash and cash equivalents at the end of the year							421,547		431,576

*During the year ended 31 December 2019 the Group identified that cash flows relating to investment properties should be presented separately in the consolidated statement of cash flows. These cash flows were previously included within cash flows relating to property, plant and equipment. Consequently, a new line has been inserted to reflect these cash flows and the prior year has been restated on the same basis. There is no impact to either the income statement or balance sheet of the group or company, or the closing cash positions brought forward and carried forward.

1  Corporate information

Curtis Banks Group PLC ("Curtis Banks" or "the Group") is one of the United Kingdom's leading administrators of self-invested pension products, principally SIPPs and SSASs. The Group commenced trading in 2009 and has successfully developed, through a combination of organic growth and acquisitions, into one of the largest UK providers of these products.

As at 31 December 2019 the Group administered circa £29.1bn (2018: £24.8bn) of pension assets on behalf of over 76,000 (2018: 77,000) active clients. More than 600 staff are employed across its head office in Bristol and regional offices in Ipswich and Dundee.

The Executive Directors have proven experience in the pensions market and have established a business that focuses on a service-driven proposition for the administration of flexible SIPPs. The Group's products are primarily distributed by authorised and regulated financial advisers, targeted towards pension savers who wish to take full advantage of the features and flexibility offered in the UK's modern and changing pension regime. Long standing relationships with key distributors result in high levels of repeat business and demonstrate satisfaction with products and services provided.

The Group is focussed on continuing to deliver value to both customers and shareholders in the years ahead.

Note: The Group includes an insurance company, Suffolk Life Annuities Limited, which provides SIPPs through non-participating individual insurance contracts. Due to Suffolk Life Annuities Limited's status as an insurance company, the consolidated results for the whole Group are required to include insurance policyholder assets and liabilities as well as the assets and liabilities and profits attributable to our shareholders. Notes 16 and 17 to this Announcement illustrate the split between policyholder and shareholder assets and liabilities and cash flows.

2  Revenue

Revenue is wholly derived from activities undertaken within the United Kingdom and comprises the following categories:

		Year ended 31 December
				2019 £'000		2018 £'000
Fees				36,268		35,352
Interest income				12,681		10,773
Policyholder investment returns				365,815		41,677
				414,764		87,802

3  Profit for the year

Profit for the year is arrived at after:

		Year ended 31 December
				2019 £'000		2018 £'000
Charging:
Amortisation of intangible assets				1,379		1,268
Depreciation of property, plant and equipment				1,321		596
Auditors remuneration:
- audit of the financial statements of the Group				278		201
- audit of the financial statements of the Company				50		56
- audit related assurance services				35		41

4  Non-recurring costs

Non-recurring costs include the following significant items:

		Year ended 31 December
				2019 £'000		2018 £'000
Hargreave Hale acquisition costs				31		45
Redundancy & restructuring costs				696		156
European Pension Management Ltd acquisition costs				29		47
Data cleansing provision				-		500
Costs relating to directorate and senior management changes				334		-
				1,090		748

Redundancy & restructuring costs

During the year ended 31 December 2019, the Group progressed its strategy to deliver its Target Operating Model and centralise commercial property administration within one office location. Redundancy costs associated with this decision as well as costs associated with duplicated staff efforts while work is transferred between offices have been included within non-recurring cost.

During the year ended 31 December 2018, the two existing sales teams within the Group were restructured into one to coincide with the launch of a new Group wide product in H1 2019.

Costs relating to directorate and senior management changes

During the year ended 31 December 2019, the incumbent Chief Financial Officer of the Group announced he was stepping down from the role and a successor was recruited. An orderly handover of responsibilities took place between the previous Chief Financial Officer and the new Chief Financial Officer. Costs associated with this transitional period, including recruitment costs and costs of associated senior staff changes, have been treated as non-recurring costs.

Data cleansing provision

As part of the consolidation and integration exercise undertaken during the year ended 31 December 2018 management initiated a review of data records relating to commercial properties held within SIPPs administered by the Group. No further costs associated with this process arose during 2019.

Hargreave Hale & European Pension Management Ltd acquisition costs

During the year ended 31 December 2019 some further costs were incurred in relation to these historic acquisitions in connection with data migration and data cleanse work.

5  Directors and employees

	Year ended 31 December
			2019 £'000		2018 £'000
Wages and salaries			18,524		18,034
Social security costs			1,765		1,627
Other pension costs			1,704		1,413
Share-based incentive awards			956		626
			22,949		21,700
			2019		2018
The monthly average number of employees during the year was:			Number		Number
Directors			6		6
Administration			566		552
			572		558
Details of emoluments paid to the directors and key management personnel of the Group are as follows:
	Year ended 31 December
			2019 £'000		2018 £'000
Total emoluments paid to:
Directors
Wages and salaries			1,280		1,876
Social security costs			146		139
Post-employment costs			37		33
Share-based incentive awards			427		467
Key management personnel
Wages and salaries			1,334		1,151
Compensation for loss of office			126		-
Social security costs			173		135
Post-employment costs			67		60
Share-based incentive awards			177		130
			3,767		3,991
Emoluments of highest paid director:
Wages and salaries			436		377
Pension contribution			9		13
			445		390

Short term employee benefits include wages and salaries. Long term employee benefits include share-based incentive awards.

6  Taxation  

	Year ended 31 December
			2019 £'000		2018 £'000
Domestic current year tax
UK Corporation tax			2,202		2,072
Deferred tax
Origination and reversal of temporary differences			(169)		(161)
			2,033		1,911
Factors affecting the tax charge for the year
Profit before tax			10,883		10,121
Profit before tax multiplied by standard rate of UK Corporation tax of 19.00% (2018: 19.00%)			2,068		1,923
Effects of:
Adjustment to prior year			(33)		23
Non-deductible expenses			10		10
Other tax adjustments			(12)		(45)
			(35)		(12)
Total tax charge			2,033		1,911

7  Earnings per share

Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

Changes in income or expense that would result from the conversion of the dilutive potential ordinary shares are deemed to be trivial, and therefore no separate diluted net profit is presented.

The following reflects the income and share data used in the basic and diluted earnings per share computations:

			2019 £'000		2018 £'000
Net profit available to equity holders of the Group			8,850		8,204
Net profit before tax, non-recurring costs (note 4) and amortisation (note 3) available to equity holders of the Group.			13,353		12,137
Weighted average number of ordinary shares:			Number		Number
Issued ordinary shares at start of the year			53,807,346		53,807,346
Effect of shares issued during the year			90,192		-
Effect of shares held by employee benefit trust			(244,741)		(201,622)
Basic weighted average number of shares			53,652,797		53,605,724
Effect of options exercisable at the reporting date**			1,173,236		965,011
Effect of options not yet exercisable at the reporting date**			1,000,925		1,204,885
Diluted weighted average number of shares			55,826,958		55,775,620
			Pence		Pence
Earnings per share:
Basic			16.49		15.30
Diluted**			15.85		14.71
Earnings per share on net profit before non-recurring costs and amortisation, less an effective tax rate*:
Basic			20.16		18.34
Diluted**			19.37		17.63

*In order to reduce the impact of accounting measures such as deferred tax, and the timing of tax reliefs, the effective tax rate matches the current tax rate applicable to the accounting year. The current tax rate applicable for the year ended 31 December 2019 was 19.00% (2018: 19.00%).

**During the year the diluted EPS calculation was adjusted to exclude anti-dilutive options. The 2018 diluted EPS has been restated on the same basis in these financial statements, resulting in an increase of 0.22p per share in 2019 (2018: 0.25p). There is no impact to either the income statement or balance sheet of the Group.

8  Intangible assets

Group

		Goodwill £'000		Client Portfolios £'000		Computer Software £'000		Total £'000
Cost
At 1 January 2018		28,903		18,433		1,395		48,731
Additions		-		433		352		785
Disposals		-		-		(266)		(266)
At 31 December 2018		28,903		18,866		1,481		49,250
Additions		-		-		696		696
Disposals		-		-		-		-
At 31 December 2019		28,903		18,866		2,177		49,946
Amortisation
At 1 January 2018		-		3,455		683		4,138
Charge for the year		-		924		344		1,268
Disposals		-		-		(266)		(266)
At 31 December 2018		-		4,379		761		5,140
Charge for the year		-		941		438		1,379
Disposals		-		-		-		-
At 31 December 2019		-		5,320		1,199		6,519
Net book value
At 1 January 2018		28,903		14,978		712		44,593
At 31 December 2018		28,903		14,487		720		44,110
At 31 December 2019		28,903		13,546		978		43,427

Goodwill

Goodwill arose on the acquisition of Suffolk Life Group Limited and its subsidiaries on 25 May 2016. The Group tests goodwill for impairment annually or more frequently if there are indications that goodwill might be impaired.  The recoverable amount of goodwill has been determined based on value-in-use calculations using a discount rate appropriate to the risk profile of the asset. These calculations use operating cash flow projections based on financial budgets approved by management covering a three year period, assuming business then continues onwards after this period at a steady rate for the purpose of the analysis.

Client Portfolios

Client portfolios represent individual client portfolios acquired through business combinations and accounted for under the acquisition method. The directors consider that there is no impairment to assets as at the year end. The client portfolios are being amortised over a period of 20 years.

The brought forward balance relates to the purchase by Curtis Banks Limited, a subsidiary company, of the trade and assets of Montpelier Pension Administration Services Limited on 13 May 2011, the full SIPP business of Alliance Trust Savings Limited on 18 January 2013, the full SIPP business and certain assets of Pointon York SIPP Solutions Limited on 31 October 2014, the full SIPP business of Rathbones Pension & Advisory Services Limited on 31 December 2014, a book of full SIPPs from Friends Life PLC (now Aviva PLC) on 13 March 2015 and a book of SIPPs from Hargreave Hale Limited on 10 December 2018.

The brought forward balance also includes the purchase by Suffolk Life Pensions Limited, a subsidiary company, of the trade and assets of European Pensions Management Limited on 14 July 2016, and books of SIPPs purchased from Pointon York SIPP Solutions Limited on 9 November 2012, Pearson Jones PLC on 30 April 2013, and Origen Investment Services Limited on 22 May 2013.

All acquisitions have been accounted for under the acquisition method of accounting. 

The directors have considered the carrying value of the client portfolios and have concluded that no impairment is required.  The client portfolios are being amortised over a period of 20 years and have an average remaining expected useful economic life as at 31 December 2019 of 14 years and 6 months.

Computer Software

Computer software contains costs that meet the recognition criteria under IAS 38 as Intangible Assets. General small computer software costs are amortised over their useful economic life of four years on a straight-line basis. Computer software costs for significant projects are amortised over an estimated UEL on a project by project basis.

9  Investment Property

Assets held at fair value

Group

					Year ended 31 December
					2019		2018
					£'000		£'000
Fair value
At 1 January					1,274,452		1,206,298
Additions					125,848		201,425
Disposals					(122,047)		(180,546)
Fair value (losses)/gains					(12,469)		47,275
At 31 December					1,265,784		1,274,452

All investment properties have been valued at the year end by reference to most recent professional valuations and this is further adjusted by applying the corresponding property index available. Investment properties held to cover the linked policyholder business are included in non-participating investment contract liabilities.

10  Property, plant and equipment

Assets held at cost

Group

	Right of use assets		Leasehold Improvements		Computer equipment		Office equipment, fixtures & fittings		Total
	£'000		£'000		£'000		£'000		£'000
Cost
At 1 January 2018	-		54		4,084		1,218		5,356
Additions	-		-		318		346		664
Disposals	-		(54)		(64)		(36)		(154)
At 31 December 2018	-		-		4,338		1,528		5,866
Arising on transition to IFRS 16	5,285		-		-		-		5,285
Additions	-		-		917		98		1,015
Disposals	-		-		(172)		-		(172)
At 31 December 2019	5,285		-		5,083		1,626		11,994
Depreciation
At 1 January 2018	-		41		3,148		1,019		4,208
Charge for the year	-		13		471		112		596
Disposals	-		(54)		(64)		(36)		(154)
At 31 December 2018	-		-		3,555		1,095		4,650
Charge for the year	695		-		459		167		1,321
Disposals	-		-		(172)		-		(172)
At 31 December 2019	695		-		3,842		1,262		5,799
Carrying value
At 1 January 2018	-		13		936		199		1,148
At 31 December 2018	-		-		783		433		1,216
At 31 December 2019	4,590		-		1,241		364		6,195

11  Cash and cash equivalents

As at 31 December 2019 and 2018 cash and cash equivalents were as follows:

	Group
	As at 31 December
	2019 £'000		2018 £'000
Cash at bank and in hand	31,228		28,018
Deposits with credit institutions	389,715		402,216
Cash equivalents	604		1,342
Cash and cash equivalents	421,547		431,576

The Group considers potential expected credit losses on cash and cash equivalents to be insignificant.

12  Borrowings

		Group
		As at 31 December
		2019 £'000		2018 £'000
Current
Bank loans		28,215		30,005
		28,215		30,005
Non-current
Bank loans		48,911		56,525
		48,911		56,525
Total borrowings		77,126		86,530

Bank borrowings

The bank borrowings are repayable as follows:

	Group
	As at 31 December
		2019 £'000		2018 £'000
Within 1 year		28,215		30,005
Between 1 year and 5 years		31,793		38,306
After more than 5 years		17,118		18,219
		77,126		86,530

Bank borrowings of the Company are repayable between January 2020 and January 2021 and bear average coupons of 1.75% plus LIBOR per annum.

Total borrowings of the Group include liabilities of £65,696,000 (2018: £72,085,000) secured by legal charge over certain properties held within non-participating investment contracts, and liabilities of £11,430,000 (2018: £14,554,000) secured on the shares of Curtis Banks Limited, Suffolk Life Pensions Limited and Suffolk Life Annuities Limited.

13  Dividends

		Year to 31 December
				2019		2018
				£'000		£'000
Ordinary interim declared and paid				4,562		3,622
				4,562		3,622

An interim share dividend in respect of the year ended 31 December 2019 of 2.50p per share was declared and paid on 14 November 2019.

A final share dividend in respect of the year ended 31 December 2019 of 6.50p per share is proposed and, if approved, will be paid on 8 June 2020.

14  Provisions

		As at 31 December
Provisions		Other provision £'000		Restructuring provision £'000		Onerous lease provision £'000		Group Total £'000
Balance as at 1 January 2018		-		534		366		900
Amounts introduced		500		-		-		500
Amounts utilised		-		(532)		(197)		(729)
Amounts written back unused		-		(2)		(169)		(171)
Balance as at 31 December 2018		500		-		-		500
Amounts introduced		-		307		-		307
Amounts utilised		(254)		-		-		(254)
Balance as at 31 December 2019		246		307		-		553

Other provision

As part of the consolidation and integration exercise undertaken during the year ended 31 December 2018 management initiated a review of data records relating to commercial properties held within SIPPs administered by the Group. A provision of £500,000 was made for the estimated costs arising from this exercise. Additionally, a contingent liability was recognised as disclosed within note 15.

As at 31 December 2019, the Group had completed its review enabling identification of the total number of cases potentially requiring remediation. However, the nature and financial impact of the remediation is still not certain and is therefore included at the Directors' best estimate of the direct costs the Group may have to bear.

As at 31 December 2019, £254,000 of the original provision had been utilised, and there were no material variances to the estimate of future remaining direct costs the Group may have to bear.

Restructuring provision

During the year ended 31 December 2018, brought forward amounts associated with the closure of the Group's office in Market Harborough were utilised.

During the year ended 31 December 2019, the Group progressed its strategy to deliver its Target Operating Model by deciding to centralise commercial property administration within one office location. Redundancy costs associated with this decision are included as amounts introduced to the restructuring provision for the current year.

Onerous lease provision

During the year ended 31 December 2018, brought forward amounts associated with the closure of the Group's office in Market Harborough were utilised. A proportion of the onerous lease provision was written back as unused following successful sublet of the office to a third party.

15  Contingent liabilities

In-specie contributions

The Group has been in correspondence with HMRC regarding processes and documentation in respect of in specie contributions. HMRC have alleged that incorrect procedures were followed by SIPP providers and is seeking to reclaim tax reliefs granted and interest thereon. This is an industry wide issue affecting other SIPP operators and is being challenged by the industry as a whole. It is not possible to determine when this matter will be resolved and the outcome and impact are not known at this stage. We do not believe that the net exposure arising from this will be material to the Group.

Data cleansing

During the year ended 31 December 2018, management initiated a review of data records related to commercial properties held within SIPPs administered by the Group. 

This review involved a case by case assessment of each of the commercial properties within the population in order to assess whether any remedial action was required by the Group in respect of that commercial property or the associated SIPP.

Provision was made in 2018 for the estimated direct costs that the Group might incur in respect of this exercise. The Directors consider that it is possible that the Group may also be exposed to indirect costs in the future, depending on the ultimate outcome of the case by case reviews.

Following completion of the case by case assessment, the Directors' best estimate of this contingent liability is £2.3m (2018: £1.5m). The increase in the estimate has been informed by the more complete data available following completion of the assessment.

There remain inherent uncertainties in the estimate due to the potential for variations in the assumed action required to rectify individual positions. This estimate will be reviewed regularly, and any changes or refinements will be reported as appropriate. The Directors' current expectation is that any potential material follow up actions will be completed during 2020.

 

16  Unaudited IFRS Consolidated Statement of Financial Position as at 31 December 2019 split between insurance policy holders and the Group's shareholders

		2019 £'000		2019 £'000		2019 £'000		2018 £'000
ASSETS		Group Total		Policyholder		Shareholder		Shareholder
Non-current assets
Intangible assets		43,427		-		43,427		44,110
Investment property		1,265,784		1,265,742		42		41
Property, plant and equipment		6,195		-		6,195		1,216
Investments		1,994,197		1,994,197		-		-
Deferred tax asset		911		-		911		595
		3,310,514		3,259,939		50,575		45,962
Current assets
Trade and other receivables		19,915		10,406		9,509		9,711
Cash and cash equivalents		421,547		390,319		31,228		28,018
Current tax asset		446		446		-		-
		441,908		401,171		40,737		37,729
Total assets		3,752,422		3,661,110		91,312		83,691
LIABILITIES
Current liabilities
Trade and other payables		15,608		9,642		5,966		6,295
Deferred income		26,192		13,777		12,415		11,407
Borrowings		28,215		25,059		3,156		3,158
Lease liabilities		719		-		719		-
Provisions		553		-		553		500
Deferred consideration		214		-		214		255
Current tax liability		738		-		738		991
		72,239		48,478		23,761		22,606
Non-current liabilities
Borrowings		48,911		40,728		8,183		11,290
Lease liabilities		3,915		-		3,915		-
Deferred consideration		-		-		-		125
Non-participating investment contract liabilities		3,571,904		3,571,904		-		-
		3,624,730		3,612,632		12,098		11,415
Total liabilities		3,696,969		3,661,110		35,859		34,021
Net assets		55,453		-		55,453		49,670
Equity attributable to owners of the parent
Issued capital		271		-		271		269
Share premium		33,659		-		33,659		33,451
Equity share based payments		2,313		-		2,313		1,357
Treasury shares		(534)		-		(534)		(716)
Retained earnings		19,730		-		19,730		15,295
		55,439		-		55,439		49,656
Non-controlling interest		14		-		14		14
Total equity		55,453		-		55,453		49,670

17  Unaudited IFRS Consolidated Statement of Cash Flows as at 31 December 2019 split between insurance policy holders and the Group's shareholders

		2019 £'000 Group Total		2019 £'000 Policyholder		2019 £'000 Shareholder		2018 £'000 Shareholder
Cash flows from operating activities
Profit before tax		10,883		-		10,883		10,121
Adjustments for:
Depreciation		1,321		-		1,321		596
Amortisation and impairments		1,379		-		1,379		1,268
Interest expense		523		-		523		467
Share based payment expense		956		-		956		626
Fair value gains on financial investments		(232,848)		(232,848)		-		-
Additions of financial investments		(532,717)		(532,717)		-		-
Disposals of financial investments		584,425		584,425		-		-
Fair value losses on investment properties		12,469		12,469		-		-
Increase in liability for investment  contracts		166,476		166,476		-		-
Changes in working capital:
(Increase)/decrease in trade and other receivables		(1,730)		(1,843)		113		(772)
Increase in trade and other payables		1,990		898		1,092		833
Taxes paid		(2,454)		-		(2,454)		(1,375)
Net cash flows from operating activities		10,673		(3,140)		13,813		11,764
Cash flows from investing activities
Purchase of intangible assets		(696)		-		(696)		(785)
Purchase of property, plant & equipment		(1,015)		-		(1,015)		(664)
Purchase of investment property		(125,848)		(125,848)		-		-
Purchase and sale of shares in the Group by the EBT		182		-		182		(466)
Receipts from sale of investment property		122,047		122,047		-		-
Net cash flows from acquisitions		(166)		-		(166)		(421)
Net cash flows from investing activities		(5,496)		(3,801)		(1,695)		(2,336)
Cash flows from financing activities
Equity dividends paid		(4,562)		-		(4,562)		(3,628)
Net proceeds from issue of ordinary shares		210		-		210		-
Net decrease in borrowings		(9,456)		(6,298)		(3,158)		(3,158)
Principal element of lease payments		(933)		-		(933)		-
Interest paid		(465)		-		(465)		(297)
Net cash flows from financing activities		(15,206)		(6,298)		(8,908)		(7,083)
Net (decrease)/increase in cash and cash equivalents		(10,029)		(13,239)		3,210		2,345
Cash and cash equivalents at the beginning of the year		431,576		403,558		28,018		25,673
Cash and cash equivalents at the end of the year		421,547		390,319		31,228		28,018

 

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1 Profit before tax, amortisation and non- recurring costs

2 The ratio of operating profit before net finance costs, amortisation and non-recurring costs to operating revenues

3 Adjusted to exclude anti-dilutive options, see note 11 to the financial statements for further detail

 

END

 

 

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