Interim Results

RNS Number : 1616C

Rotala PLC

28 August 2008

 

Rotala plc

('Rotala' or 'the Company')

Unaudited Interim Results for the six months to 31 May 2008

Chairman's Statement

I am pleased to be able to present this interim report to shareholders in respect of the six month period ended 31 May 2008. 

Financial analysis

As I outlined in the annual report for 2007 published in May of this year, the Company has continued to make pleasing progress. Compared to the first half of 2007 the progression is particularly marked. Turnover was up 65% and gross profits in the first half of 2008 were nearly three times the level which the group produced in the same period of 2007. Operating expenses showed some increase as a result of the acquisitions made in the first half of the current financial year, to which I shall return below. 

The programme of acquisitions and organic growth, in accordance with the strategic plan, has transformed the group's financial performance. An operating profit was recorded of £1.4m for the first half of 2008, compared to an operating loss of £443,000 for the same period in the previous year. These results show further encouraging improvement on the operating profits of £633,000 which the group produced in the second half of 2007. 

Interest payable rose considerably in the first half of 2008, reflecting the impact of investment in new vehicles this year and last on hire purchase terms and the additional interest cost of £90,000 occasioned by the convertible loan stock issue made to fund the acquisitions in the period.

Overall the group recorded a maiden profit before tax for the period of £579,000 (compared to a loss in the first half of 2007 of £691,000), which is a very encouraging result indeed. Earnings per share were therefore 2.83p per share, where before there were losses. 

Acquisitions

The principal impact on these accounts has come from acquisitions. The most important transaction in the period since the last year end was the acquisition of the Diamond Bus operation from Go Ahead Group plc. 

We were able to purchase Diamond Bus at the end of February 2008, including a freehold property, for the sum of £2m. Diamond Bus operates with a fleet of over 100 vehicles primarily in the Black Country area of the Midlands to the north west of Birmingham. I am pleased to be able to say that the integration of this business within our existing network has progressed well. We have been, as expected, able to streamline the overhead costs of the business by making effective use of our existing infrastructure in the region and we have made considerable changes to the bus services being run in order to focus on efficiency and contribution to overheads. In the first three months of our ownership of this business we have managed to reduce operating losses to £61,000 for the quarter (compared to a monthly loss in six figures prior to our acquisition) on a turnover of some £2.5m. This progress is a testament to the expertise and hard work of our operational management. Including the £90,000 of interest cost referred to above and initial restructuring costs for Diamond Bus of £194,000, the total impact on the group results in the first half of the year was £345,000. However this was almost exactly offset by the credit to the profit and loss account of £343,000 arising from the negative goodwill recognised at the inception of this acquisition.

At the beginning of April 2008, we also completed the acquisition of another local bus company, Ludlows of Halesowen Limited ('Ludlows') for £850,000. Ludlows is a well established small operator with about 20 vehicles in the Halesowen area in south west Birmingham. Once again we have been able to relieve the business of unnecessary overhead by consolidating management and administration functions to our Aston depot. Ludlows has made good progress under our control and is already contributing well to group profitability.

These two acquisitions have increased our operational fleet to over 400 vehicles. Besides our two depots in the south at Heathrow and Gatwick airports and our depot at Bristol, we now control a broad sweep of operations around Birmingham, from Redditch to the south, through Halesowen in the south west, Oldbury in the west and Aston in the north of Birmingham. These depot locations give us an excellent infrastructure base from which we can further develop the bus business of the group. We feel sure that more opportunities in the West Midlands will spring out of the need to improve public transport there, relieve congestion and reduce pollution. 

New contracts

I am also pleased to be able to report continuing success in our objective to achieve organic growth in the revenues of the group through the addition of new contracts. In the first half of 2008 we were able to secure new contracts in both the public and private sectors with an annualised value of £3.3m. The success in obtaining new contracts underlines our commitment to increase the group's turnover and to become a significant force in transport operations in our chosen locations. Further contract discussions are in the planning stage and I hope to be able to make announcements about these developments in the very near future.

Fundraising

In order, as outlined above, to make the acquisitions and working capital investment in the new contracts we raised £5.1m in the first quarter of 2008. This took the form of approximately £4.7m in convertible loan notes, as sanctioned at the Extraordinary General Meeting held in February 2008, and £400,000 in fresh equity. 

IFRS

This reporting period is the one in which the company is required to adopt International Financial Reporting Standards ('IFRS'). As a result the figures for the current period have been presented in accordance with IFRS and the comparatives have been suitably restated. Reconciliations to figures previously reported under UK GAAP are enclosed in the notes.

Outlook

The acquisition of Diamond Bus and Ludlows has enabled us to construct an extensive network of operations in the Black Country. In the short term we continue to make considerable further investment in the Diamond Bus operations. This investment will improve and enlarge the Black Country network of Diamond Bus, but will take time to bear fruit. We hope to make further announcements about these initiatives in the very near future.  These steps illustrate clearly the company's plan to build a substantial and sustainable business in the region. We believe that the short term costs of this approach will be greatly outweighed by the improved prospects in both turnover and profits in the medium term. The board is extremely satisfied with the progress made so far and looks forward to further improvement next year. 

At the same time our quest for suitable new work will continue, as will our pursuit of more acquisition targets in our chosen areas of operation. The Board believes that its strategy will deliver a sizeable and profitable, integrated transport group. It should, however, be noted that, like all in the transport industry, the group's results are sensitive to fluctuations in the price of diesel. The price peak seen in the early summer had its impact on early part of the second half of the current year. Whilst we were able, by a careful mix of cost reduction and fare increase, to limit the effect on the group's results, there is no doubt that the fuel price is a constant factor in our business. Our fuel usage is too small at present for cost-effective hedging, but we continuously monitor the situation and will hedge, if we believe that this can be justified.

I am nevertheless pleased that the core business has maintained its profitability in 2008, whilst we bed in the acquisitions. This continues the trend established in the second half of 2007, in accordance with our expectations. When the final results for the year are announced I am confident that the group's performance will show continued progress.  

John Gunn

Chairman

28 August, 2008

Contacts:

John Gunn     Chairman                        020 7621 5770

Kim Taylor    CEO                              07825 808529

Romil Patel   Blue Oar Securities Plc    020 7448 4400

Financial Results:

Consolidated income statement
	Notes	Unaudited 6 months ended 31 May 2008	Unaudited 6 months ended 31 May 2007	Audited and restated year ended 30 November 2007
		£'000	£'000	£'000
Revenue		15,814	9,556	19,348
Cost of sales		(12,327)	(8,305)	(16,084)
		________	______	______
Gross profit		3,487	1,251	3,264
Operating expenses		(2,083)	(1,694)	(3,074)
		_____	______	_____
Operating profit/(loss)	3	1,404	(443)	190
Finance income		22	7	78
Finance expense		(847)	(256)	(957)
		_____	_____	_____
Profit/(loss) before taxation		579	(692)	(689)
Taxation		-	-	-
		_____	______	_____
Profit/(loss) after taxation		579	(692)	(689)
		=====	=====	=====
Earnings/(loss) per share - basic	4	2.83p	(4.68p)	(4.08p)
Earnings per share - diluted	4	2.72p	(4.68p)	(4.08p)

Consolidated balance sheet	Unaudited as at 31 May 2008	Unaudited as at 31 May 2007	Audited and restated as at 30 November 2007
	£'000	£'000	£'000
Assets
Non-current assets
Goodwill	9,472	8,053	8, 700
Other intangibles	391	214	341
Property, plant and equipment	20,710	9,812	15,214
Trade and other receivables	351	260	288
	_____	_____	_____
	30,924	18,339	24,543
Current assets
Inventories	335	157	145
Trade and other receivables	5,766	3,223	3,879
Cash and cash equivalents	41	-	11
	_____	_____	_____
	6,142	3,380	4,035
	_____	_____	_____
Total assets	37,066	21,719	28,578
Liabilities
Non-current liabilities
Long term borrowings	(6,656)	(2,439)	(2,935)
Obligations under hire purchase agreements	(9,256)	(4,934)	(8,250)
Deferred income tax liabilities	(243)	(196)	(196)
Provisions	(101)	(571)	(145)
	______	_____	______
	(16,256)	(8,140)	(11,526)
Current liabilities
Trade and other payables	(5,533)	(4,270)	(4,483)
Short term borrowings	(2,127)	(1,558)	(1,103)
Obligations under hire purchase contracts	(2,302)	(985)	(1,934)
	______	_____	_____
	(9,962)	(6,813)	(7,520)
	______	______	______
Total liabilities	(26,218)	(14,953)	(19,046)
	_____	_____	_____
Net assets	10,848	6,766	9,532
	======	=====	=====
Capital and reserves
Called up share capital	5,253	4,010	5,089
Share premium account	6,254	4,454	6,102
Merger reserve	2,567	2,567	2,567
Warrant reserve	82	-	-
Retained earnings	(3,308)	(4,265)	(4,226)
	______	_____	_____
Total equity	10,848	6,766	9,532
	=====	====	====

Consolidated cash flow statement	Unaudited 6 months ended 31 May 2008	Unaudited 6 months ended 31 May 2007	Audited and restated year ended 30 November 2007
	£'000	£'000	£'000
Cash flows from operating activities
Profit before tax	579	(691)	(689)
Finance expense (net)	825	249	879
Depreciation	781	217	858
Amortisation	72	18	91
(Profit)/loss on disposal of assets	(111)	5	(69)
Negative goodwill arising on acquisition	(343)	-	-
Share based payments	43	21	58
Proceeds of hire purchase refinancing agreements	454	-	758
(Increase)/decrease in trade and other receivables	(1,433)	55	(490)
(Decrease)/increase in trade and other payables	(572)	394	426
(Increase)/decrease in inventories	(74)	7	19
Decrease in provisions	(43)	(322)	(749)
	____	____	____
Cash generated from/(used in) operations	178	(47)	1,092
Interest paid	(600)	(164)	(760)
	____	____	____
Net cash (used in)/ generated from operating activities	(422)	(211)	332
Cash flow from investing activities
Interest received	22	7	78
Purchase of property, plant and equipment	(587)	(274)	(429)
Sale of property, plant and equipment	1,052	685	1,169
Purchase of intangible assets	(122)	-	(200)
Purchase of undertakings and businesses	(3,199)	(72)	(1,707)
Net cash acquired with subsidiary undertaking	80	-	217
	_____	_____	_____
Net cash (outflow)/inflow from investing activities	(2,754)	346	(872)
Cash flow from financing activities
Loan stock and bank loan interest paid	(81)	(57)	(168)
Issue of loan stock and notes	4,589	400	865
Proceeds from share issue	390	475	2,923
Loan note repaid	(150)	(100)	(100)
Bank loan repaid	(7)	(7)	(14)
Capital element of lease payments	(2,112)	(1,075)	(2,889)
	_____	_____	____
Net cash inflow/(outflow) in financing activities	2,627	(364)	617
Net (decrease)/increase in cash and cash equivalents	(549)	(229)	77
Cash and cash equivalents at start of period	(827)	(904)	(904)
	_____	_____	_____
Cash and cash equivalents at end of period	(1,376)	(1,133)	(827)
	======	=====	====

Consolidated Statement of Changes in Equity	Called up share capital	Share premium account	Merger reserve	Warrant reserve	Retained earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000
At 1 December 2006	3,676	4,316	2,567	-	(3,594)	6,965
Loss for the period ended 31 May 2007	-	-	-	-	(692)	(692)
Share based payment adjustment	-	-	-	-	21	21
	___	___	___	___	___	___
Total recognized income and expense for the period	-	-	-	-	(671)	(671)
Issue of share capital	334	166	-	-	-	500
Costs of issue of share capital	-	(28)	-	-	-	(28)
	____	____	____	_	_____	____
At 31 May 2007	4,010	4,454	2,567	-	(4,265)	6,766
Profit for the period ended 30 November 2007	-	-	-	-	2	2
Share based payment adjustment	-	-	-	-	37	37
	___	___	___	___	__	__
Total recognized income and expense for the period	-	-	-	-	39	39
Issue of share capital	1,079	1,827	-	-	-	2,906
Costs of issue of share capital		(179)	-	-	-	(179)
	____	____	____	___	_____	____
At 30 November 2007	5,089	6,102	2,567	-	(4,226)	9,532
Profit for the period ended 31 May 2008	-	-	-	-	579	579
Share based payment adjustment	-	-	-	-	43	43
Convertible loan stock equity component	-	-	-	-	296	296
	___	___	___	___	___	___
Total recognized income and expense for the period	-	-	-	-	918	918
Issue of share capital	164	226	-	-	-	390
Costs of issue of share capital and loan stock	-	(74)	-	-	-	(74)
Warrant reserve arising on issue of loan stock	-	-	-	82	-	82
	____	____	____	__	_____	_____
At 31 May 2008	5,253	6,254	2,567	82	(3,308)	10,848
	====	====	====	==	=====	=====

Notes to the unaudited Interim Accounts for the six months ended 31 May 2008

1.  Basis of preparation:

Prior to this current accounting period it was the practice of the group to prepare its accounts in accordance with UK Generally Accepted Accounting Principles ('UK  GAAP').  In respect of the period to 31 May 2008 the group is required to prepare its consolidated accounts under International Accounting and  International Financial Reporting Standards (collectively 'IFRS'), which have been adopted by the European Union. In accordance with IFRS 1 the date of transition to adopted  IFRS is 1 December 2006. The comparatives to the period which is the subject of this report have therefore been restated from UK GAAP to comply with adopted IFRS.  The adjustments that have been made are explained further below.

The accounting policies used in the preparation of these accounts are those that are expected to be used in the preparation of the annual financial accounts of the company for the year ending 30 November 2008. These policies have been selected to comply with IFRS current at the time of this report and the IFRS expected to have relevance to the accounts of the company for the year ending 30 November 2008. Future changes to IFRS may have an effect on the current year.

2.  Transitional arrangements:

In making the transition to IFRS and implementing its provisions, the requirements of IFRS 1 - First Time adoption of International Financial Reporting Standards have been followed. Where IFRS 1 offers exemptions, those that have been taken are set out below. The adoption of IFRS concerns accounting changes only and does not affect the cash flows of the group. The group has elected to apply the following first time exemption permitted by IFRS 1 in making the transition from UK GAAP to IFRS:

• Business combinations: the group has elected to take advantage of the exemption not to apply IFRS 3 - Business Combinations to the business combinations which occurred prior to the date of transition to adopted IFRS (i.e. 1 December 2006). The group has therefore elected to treat the net book value of goodwill as measured under UK GAAP as at 30 November 2006 as the deemed cost of goodwill under IFRS 3 as at 1 December 2006. In accordance with IFRS 3 this goodwill is not amortised but subjected to regular impairment reviews. Negative goodwill existing at the date of transition has been credited to reserves (see further note 6 below). 

Reconciliations between UK GAAP and IFRS for the comparative periods and at the date of transition are included in note 6 of this statement.  

3.  Operating profit:

The underlying operating profits may be derived as follows:

		Unaudited 6 months ended 31 May 2008	Unaudited 6 months ended 31 May 2007	Audited and restated year ended 30 November 2007
		£'000	£'000	£'000
Operating profit/(loss)		1,404	(443)	190
Share-based payment		43	21	58
Amortisation		72	18	91
Restructuring costs		194	-	-
Negative goodwill arising on acquisition		(343)	-	-
		_____	____	____
Underlying operating profit/(loss)		1,370	(404)	339

4. Earnings per share: 

Basic earnings per share have been calculated on the basis of profit after taxation and the weighted average number of shares in issue for the period of 20,474,897 (May 2007: 14,775,221; November 2007: 16,900,906). Diluted earnings per share have been calculated on the basis of profit after taxation (adjusted where necessary for the effect of convertible loan stock interest) and the weighted average number of shares in issue (including such potential issues as are dilutative) for the period of 21,717,526. The effect of potential ordinary shares on prior periods is not dilutive, because the loss per share would be reduced.  

5.Purchase of Subsidiary Undertakings

On 29 February 2008 the company acquired Go West Midlands Limited (now called The Diamond Bus Company Limited) for a consideration (including a freehold property) of approximately £2 million. The provisional balance sheet at the date of acquisition, together with the provisional fair value adjustments required, are set out below:

	Book value of assets acquired	Fair value adjustments	Fair value
	£'000	£'000	£'000
Property, plant and equipment	3,923	(514)	3,409
Inventories	108	-	108
Trade and other receivables	416	-	416
Trade and other payables	(970)	(373)	(1,343)
Obligations under hire purchase agreements	(231)	-	(231)
	_____	_____	_____
Net assets	3,246	(887)	2,359
Cash paid (including costs of acquisition)			(2,016)
			____
Negative goodwill arising credited to the income statement			343

The fair value adjustments the revaluation of the vehicle fleet to market value, the writing off of certain items of plant and the recognition of existing liabilities, including onerous contracts.

  On 1 April 2008 the company acquired Ludlows of Halesowen Limited for a consideration of approximately £851,000. The provisional balance sheet at the date of acquisition is set out below. Provisionally, no fair value adjustments are required.  

	Book and fair value of assets acquired
	£'000
Property, plant and equipment	460
Inventories	8
Trade and other receivables	100
Cash	80
Trade and other payables	(190)
Deferred taxation	(46)
	____
Net assets	412
Cash paid (including acquisition expenses)	(851)
	____
Goodwill	439

Also during the period the group carried out the remaining stages of its acquisition of the bus business of South Gloucestershire Bus and Coach Company Limited. The initial stages of this acquisition took place in the year ended 30 November 2007.  In the current accounting period further consideration of some £636,000 was paid. This gave rise to an intangible asset of £122,000 in relation to customer contracts acquired and goodwill of approximately  £333,000, the balance of the consideration being for vehicles. 

6.  Reconciliations from UK GAAP to adopted  IFRS:

In accordance with IFRS 1 the impact of the transition to IFRS from UK GAAP is further explained below. In order to conform to IAS 1  Presentation of Financial Statements and IAS 7 - Cash Flow Statements, the form and presentation of previously published UK GAAP accounts has been changed. Other than the specific adjustments made in the following tables, use of adopted  IFRS has involved presentational changes only. Note in particular that the Cash Flow Statement under adopted  IFRS is not significantly different from that under UK GAAP and thus it is considered that reconciliations of cash flows from UK GAAP to adopted IFRS are unnecessary.

Set out below are reconciliations of the income statements under IFRS for the six months ended 31 May 2007 and the year ended 30 November 2007 to their UK GAAP counterparts. There then follow reconciliations of the respective balance sheets, including that of the transitional balance sheet as at 1 December 2006. Where appropriate attention is drawn to detailed explanatory notes which analyse further the adjustments made. 

Consolidated income statement		UK GAAP		IFRS restated	UK GAAP		IFRS restated
	Notes	6 months ended 31 May 2007	IFRS    adj.	6 months ended 31 May 2007	Year ended 30   November 2007	IFRS   adj.	Year ended 30 November 2007
		£'000	£'000	£'000	£'000	£'000	£'000
Revenue		9,556	-	9,556	19,348	-	19,348
Cost of sales	6(a)	(8,087)	(218)	(8,305)	(15,413)	(671)	(16,084)
		____		____	____		____
Gross profit		1,469	-	1,251	3,935	-	3,264
Operating expenses	6(b)	(2,098)	404	(1,694)	(4,153)	1,079	(3,074)
		____	___	____	____	____	___
Operating profit/(loss)		(629)	186	(443)	(218)	408	190
Finance income		7	-	7	78	-	78
Finance expense		(256)	-	(256)	(957)	-	(957)
		____	___	___	_____	___	___
Loss before taxation		(878)	186	(692)	(1,097)	408	(689)
Taxation		-	-	-	-	-	-
		____	____	____	_____	____	____
Loss after taxation		(878)	186	(692)	(1,097)	408	(689)

Consolidated balance sheet		UK GAAP		IFRS GAAP	UK GAAP		IFRS GAAP
	Notes	As at 31 May 2007	IFRS adj	As at 31 May 2007	As at 30 Nov 2007	IFRS adj	As at 30 Nov 2007
		£'000	£'000	£'000	£'000	£'000	£'000
Assets
Non-current assets
Goodwill	6(c)	7,392	661	8,053	8,003	697	8, 700
Other intangibles	6(d)	214		214	155	186	341
Property, plant and equipment		9,812		9,812	15,214		15,214
Trade and other receivables		260		260	288		288
		______	___	_____	______	___	_____
		17,678	661	18,339	23,660	883	24,543
Current assets
Inventories		157		157	145		145
Trade and other receivables		3,223		3,223	3,879		3,879
Cash and cash equivalents		-		-	11		11
		_____		____	____		____
		3,380		3,380	4,035		4,035
		_____	____	_____	_____	____	_____
Total assets		21,058	661	21,719	27,695	883	28,578
Liabilities
Non-current liabilities
Long term borrowings		(2,439)		(2,439)	(2,935)		(2,935)
Obligations under hire purchase agreements		(4,934)		(4,934)	(8,251)		(8,251)
Deferred income tax liabilities	(6(e)	-	(196)	(196)	-	(196)	(196)
Provisions		(571)		(571)	(145)		(145)
		_____	____	_____	_____	____	_____
		(7,944)	(196)	(8,140)	(11,331)	(196)	(11,527)
Current liabilities
Trade and other payables		(4,270)		(4,270)	(4,483)		(4,483)
Short term borrowings		(1,558)		(1,558)	(1,103)		(1,103)
Obligations under hire purchase contracts		(985)		(985)	(1,934)		(1,934)
		_____		_____	_____		_____
		(6,813)		(6,813)	(7,520)		(7,520)
		______		_____	_____		______
Total liabilities		(14,757)		(14,953)	(18,851)		(19,046)
		______	___	_____	_____	____	____
Net assets		6,301	465	6,766	8,844	687	9,531
		======	===	====	=====	===	====
Capital and reserves
Called up share capital		4,010		4,010	5,089		5,089
Share premium account		4,454		4,454	6,102		6,102
Merger reserve		2,567		2,567	2,567		2,567
Retained earnings	6(f)	(4,730)	465	(4,265)	(4,914)	687	(4,227)
		____	___	____	____	___	____
Total equity		6,301	465	6,766	8,844	687	9,531
		=====	===	====	====	===	====

Consolidated balance sheet (at date of transition)	Notes	UK GAAP as at 1 Dec 2006	IFRS adj	IFRS GAAP As at 1 Dec 2006
		£'000	£'000	£'000
Assets
Non-current assets
Goodwill	6(c)	7,505	475	7,980
Other intangibles		232		232
Property, plant and equipment		5,675		5,675
Trade and other receivables		180		180
		_____	___	_____
		13,592	475	14,067
Current assets
Inventories		165		165
Trade and other receivables		3,358		3,358
Cash and cash equivalents		-		-
		____		____
		3,523		3,523
		_____	___	_____
Total assets		17,115	475	17,590
Liabilities
Non-current liabilities
Long term borrowings		(2,276)		(2,276)
Obligations under hire purchase agreements		(1,252)		(1,252)
Deferred income tax liabilities	6(e)	-	(196)	(196)
Provisions		(893)		(893)
		_____	____	_____
		(4,421)	(196)	(4,617)
Current liabilities
Trade and other payables		(3,832)		(3,832)
Short term borrowings		(1,352)		(1,352)
Obligations under hire purchase contracts		(825)		(825)
		_____		______
		(6,009)		(6,009)
		______	____	______
Total liabilities		(10,430)	(196)	(10,626)
		____	___	_____
Net assets		6,685	279	6,964
		=====	===	====
Capital and reserves
Called up share capital		3,676		3,676
Share premium account		4,316		4,316
Merger reserve		2,567		2,567
Other reserve
Retained earnings	6(f)	(3,874)	279	(3,595)
		_____	___	____
Total equity		6,685	279	6,964
		====	===	====

	1 Dec 2006	31 May 2007	30 November 2007
	£’000	£’000	£’000
6 (a) Cost of sales
In accordance with IAS 1 depreciation on public service vehicles used as plant has been reclassified from Administrative Expenses to Cost of Sales	-	(218)	(671)
6(b) Operating expenses
Depreciation as above	-	218	671
Amortisation of goodwill arising from acquisitions and   capitalised has been reversed following the adoption of IFRS 3 - Business Combinations; goodwill is instead reviewed annually for impairment	-	186	422
Amortisation  arising after recognition of separately identifiable intangiible assets	-	-	(14)
		___	____
	-	404	1,079
6(c) Goodwill
Negative goodwill classified within goodwill as at 30 November 2006 under UK GAAP but credited directly to retained earnings under adopted  IFRS as at the transition date to adopted IFRS of 1 December 2006	475	475	475
Amortisation as described in note 6(b) above	-	186	422
Separately identifiable intangible asset arising on business combinations after 1 December 2006 previously classified within Goodwill under UK GAAP but transferred to Other Intangibles under adopted IFRS	-	-	(200)
	___	____	___
	475	661	697
6(d) Other intangibles
Separately identifiable intangible asset arising on business combinations after 1 December 2006 previously classified within Goodwill under UK GAAP but transferred to Other Intangibles under adopted IFRS	-	-	200
Amortisation as described in note 6(b) above	-	-	(14)
	____	___	___
	-	-	186
6 (e) Deferred income tax liabilities
Deferred taxation arising on negative goodwill in 6(c) above	(196)	(196)	(196)
6(f) Reserves
Negative goodwill (less related deferred taxation) classified within goodwill as at 30 November 2006 under UK GAAP but credited directly to retained earnings under adopted  IFRS as at the transition date of 1 December 2006	279	279	279
Amortisation of goodwill arising from acquisitions and   capitalised has been reversed following the adoption of IFRS 3 -Business Combinations; goodwill is instead reviewed annually for impairment	-	186	422
Amortisation arising after recognition of separately identifiable intangiible assets	-	-	(14)
	____	____	___
	279	465	687

7.  Additional information : 

This interim statement and the figures it contains have not been audited by the company's auditors, BDO Stoy Hayward LLP. The figures presented for the accounting periods ended 31 May 2008 and 2007 are unaudited and do not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The comparatives for the year ended 30 November 2007 are not the full statutory accounts of the company for that period. A copy of the full statutory accounts for that year, which were prepared under UK GAAP, have been delivered to the Registrar of Companies. The report of the auditors on these accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and did not contain a statement under section 237(2) - (3) of the Companies Act 1985.

8.  Copies of this statement are available from the registered office of the company at 80, Cannon Street, London, EC4N 6HL.

 

END

 

 

IR QDLFLVVBEBBB