Information  X 
Enter a valid email address

Brewin Dolphin Hldgs (BRW)

  Print          Annual reports

Wednesday 28 May, 2014

Brewin Dolphin Hldgs

Interim Financial Report

RNS Number : 1724I
Brewin Dolphin Holdings PLC
28 May 2014
 



 

 

28 May 2014

Brewin Dolphin Holdings PLC

 

Interim Financial Report

For the Half Year Ended 30 March 2014

 

Highlights

 

Adjusted1 profit before tax ("PBT") margin of 20.3% (2013: 17.1%).

 

Total income of £146.3 million (31 March 2013: £139.0 million), an increase of 5.3%.

 

Adjusted1 profit before tax of £29.7 million (31 March 2013: £23.7 million), an increase of 25.3%.

 

Profit before tax of £21.4 million (31 March 2013: £6.8 million).

 

Strong growth in discretionary funds to £22.7 billion at 30 March 2014 (29 September 2013: £21.3 billion, 31 March 2013: £20.4 billion).



Adjusted1 earnings per share:


-

Basic earnings per share of 9.1p (31 March 2013: 7.5p) an increase of 21.3%.


-

Diluted earnings per share of 8.6p (31 March 2013: 7.1p) an increase of 21.1%.

 

Earnings per share:


-

Basic earnings per share of 6.7p (31 March 2013: 2.2p).


-

Diluted earnings per share of 6.3p (31 March 2013: 2.0p).

 

Strong balance sheet underpinned by growing cash generation

 

Interim dividend of 3.65 pence per share in line with guidance.

 

A post period end non cash impairment charge to be taken in H2 2014 of £32 million pre-tax as a result of the decision announced on 13 May not to proceed with a major software implementation.

 

1 These figures have been adjusted to exclude redundancy costs, additional FSCS levy, onerous lease contracts provision and amortisation of client relationships.

 



Declaration of Interim Dividend

The Board declares an interim dividend of 3.65p per share. The interim dividend is payable on 4 July 2014 to shareholders on the register at the close of business on 6 June 2014 with an ex-dividend date of 4 June 2014.

David Nicol, Chief Executive said

 

"The Group has made good financial and operational progress over the first half of 2014.  The process of streamlining the business is on track and this is reflected in the significant progress made towards the adjusted profit before tax margin target of 25%.  It is encouraging to see the rationalisation of the business model begin to bear fruit as organic growth is achieved.

 

We are committed to continued improvement and strengthening of the business and will continue to make the difficult decisions necessary to achieve this as evidenced by the refocused systems priorities.  The streamlining of the business through improved operating processes and clearer focus on core services should not only secure further shareholder returns, but also substantially reduce risk."

 

 

For further information

 

David Nicol, Chief Executive                          

Brewin Dolphin Holdings PLC                                   

020 7248 4400                                                           

 

Andrew Westenberger, Finance Director

Brewin Dolphin Holdings PLC

020 7248 4400

 

Matthew Sims, Director of Investor Relations

Brewin Dolphin Holdings PLC

020 7248 4400

 

Andrew Hayes/Wendy Baker

Hudson Sandler 

020 7796 4133

 



Interim Management Report

To the members of Brewin Dolphin Holdings PLC

 

Results for the 6 months ended 30 March 2014

The strong underlying results for the half year ended 30 March 2014 reflect the progress the Group has made on delivering against its strategic objectives. Adjusted profit before tax grew by 25% to £29.7 million (31 March 2013: £23.7 million) and adjusted diluted EPS grew by 21% to 8.6 pence per share from 7.1 pence in March 2013.

 

Growth in adjusted profit before tax was driven by increased income, 5% higher than prior year, together with improving efficiency as reflected by the increase in adjusted profit before tax margin to 20.3% (31 March 2013: 17.1%).

 

 


Unaudited

26 weeks to 30 March

2014

Unaudited

26 weeks to

31 March

2013

% change


£'m

£'m






Income




Core1

           134.4

           118.6

13%

Other

             11.9

             20.4

(42)%


           146.3

           139.0

5%

Salaries

            (51.3)

            (53.4)

(4)%

Other operating costs

            (40.4)

            (42.1)

(4)%

Total fixed operating costs

            (91.7)

            (95.5)

(4)%

Adjusted2 profit before variable staff costs

             54.6

             43.5

26%

Variable staff costs

            (25.1)

            (20.1)

25%

Adjusted2 operating profit

             29.5

             23.4

26%

Net finance income and other gains and losses

              0.2

              0.3


Adjusted2 profit before tax

             29.7

             23.7

25%

Exceptional costs

             (8.3)

            (16.9)


Profit before tax

             21.4

              6.8

215%

Taxation

             (3.7)

             (1.6)


Profit after tax

             17.7

              5.2






Earnings per share




Basic earnings per share

6.7p

2.2p

205%

Diluted earnings per share

6.3p

2.0p

215%





Adjusted2 earnings per share




Basic earnings per share

9.1p

7.5p

21%

Diluted earnings per share

8.6p

7.1p

21%

 

1 Core income is defined as income derived from fees and commissions charged on management and/or advice and execution activities relating to client portfolios. 

2These figures have been adjusted to exclude redundancy costs, additional FSCS levy, onerous lease contracts provision and amortisation of client relationships.

 

Overall income growth resulted primarily from increasing core income, up 13% to £134.4 million (31 March 2013: £118.6 million).  Against a backdrop of stronger equity markets, with average levels in H1 2014 being 6% higher than the same period last year, this was achieved from continued growth in new funds managed within our discretionary service.  Income from other services remained flat against the same period last year, with the loss of advisory client funds resulting from the remaining service and pricing reviews being offset by the retention of funds at new standardised fee rates.

 

Other income continued to fall, to £11.9 million, down 42% (31 March 2013: £20.4 million) as a result of declining margins on cash deposits and a further £6.1 million reduction in trail income following the continued move away from trail paying unit trusts post RDR.

 

On-going initiatives to improve business efficiency by standardising operating processes and restructuring the business, together with strong cost discipline, resulted in a decline in total fixed operating costs of 4% from the same period last year.

 

Total fixed operating costs declined by 4% to £91.7 million, from £95.5 million in the same period last year.

 

Control over fixed salary cost inflation combined with reduced headcount from restructuring central functions and elements of the branch network in 2013 resulted in a 4% decline in salary costs to £51.3 million (31 March 2013: £53.4 million).  This was despite increasing staff costs associated with the integration of major new technology systems in the period.

 

Other operating costs also declined 4% from £42.1 million in the same period last year to £40.4 million.  Control over discretionary expenditure, lower depreciation from capital expenditure combined with reduced property costs resulting from branch consolidations, more than offset higher technology related costs from new system implementations and higher legal and professional fees.

 

Variable staff costs in the period grew in line with higher income and profit performance.

 

Exceptional costs in the period declined to £8.3 million from £16.9 million in the same period last year.  This decline was the result of significantly lower charges taken in the period relating to redundancy costs from further restructuring and updated estimates of onerous contract provisions required. 

 



 

Funds under management 

 

 

£bn

29 September 2013

Inflows

Outflows

Service Switching

Net Flows

Growth Rate % *

Market Movement

 30 March 2014

 










 

Discretionary

 21.3

 1.0

(0.6)

 0.2

 0.6

6%

 0.8

 22.7

 










 

Advisory Managed

 4.8

 0.1

(0.2)

 (0.3)

(0.4)

-16%

 0.1

 4.5

 

Advisory Dealing

 2.1

 0.0

(0.2)

 (0.4)

(0.6)

-57%

 0.0

 1.5

 

Total Advisory

 6.9

 0.1

(0.4)

 (0.7)

(1.0)

-29%

 0.1

 6.0

 










 

Total Managed/Advised

 28.2

 1.1

(1.0)

 (0.5)

(0.4)

-3%

 0.9

 28.7

 










 

Execution Only

 6.7

 0.5

(0.4)

0.5

 0.6

18%

 0.1

 7.4

 

Total Funds

 34.9

 1.6

(1.4)

 0.0

 0.2

1%

 1.0

 36.1

 


 *Annualised








 

                                                                       



30 March 2014


29 September 2013


% change

Indices







FTSE WMA Private Investor Series Balanced Portfolio


3,380


3,314


2.0%

FTSE 100


6,615


6,513


1.6%

 

 

Total managed/advised funds increased by 1.8% in the period to £28.7 billion from £28.2 billion in September 2013.

 

The strategy of focusing on our discretionary service whilst completing the remaining reviews of advisory services is reflected in the on-going growth in discretionary funds and net outflows from advisory funds. 

 

Discretionary funds increased by 7% in the period, including £0.6 billion of net new funds, an annualised rate of 6%, above our target of achieving 5% per annum new funds growth.  Discretionary funds under management now represent 79% (September 2013: 76%) of total managed/advised funds.

 

As reported at September 2013, approximately 40% of our managed advisory business was still due to move onto new standard national pricing structures, with the intention that this would be completed by the end of 2014.  The completion of this move will bring the yield received for this service to a more sustainable level of approximately 75 bps from the 56 bps earned in 2013.  Further progress on this initiative has been achieved in the period, taking the yield up to 61 bps for the six months ended 30 March 2014, although some delays have occurred as a result of ensuring that client communication was fair and appropriate.  This work is still planned to be completed by the end of 2014.

 

Work has progressed in the period on developing and introducing an enhanced investment process in order to improve client experience.  The roll out is now underway.

 

In addition, progress has been made on the various initiatives announced in September 2013 to support ongoing growth in client services managed within our discretionary service, such as the launch of a new website, various marketing initiatives and a refocused intermediary agent sales team.

 

The funds we hold in relation to our execution only business have grown by 10% to £7.4 billion.

 



Update on technology

As previously reported at the full year 2013 results, the first stage of the planned implementation of the JHC Figaro software ("Figaro") into Stocktrade, our execution only service, took place in September 2013. 

 

The initiative to implement Figaro as a new core system for the Group's business was launched in 2011 aiming to achieve material cost saving opportunities through lower support headcount and lower technology operating costs. If achieved these benefits would have led to the improvement in the Group's operating margin from 15% to a planned 20%.  By the end of 2012, as reported at the time, it became evident that the project was experiencing delays in design, configuration and testing.

 

Following the management changes in March 2013 an initial review of the project concluded that the implementation of Figaro was achievable. New project management was put in place, and simpler, standardised and consistent business operating processes were defined.

 

As a result of the review the management team were able to announce in May 2013 that the design work was largely complete and a new de-risked implementation plan was put in place commencing in the final quarter of 2013. This plan involved a first phase implementation into Stocktrade in order to more securely test the new system.

 

Following the implementation into Stocktrade initial benefits were experienced by way of improved client accessibility.  However, a number of issues with the functionality and robustness of the software were uncovered.  These are continuing to take additional time and resource to address.  An ongoing deterioration in the Group's assessment of the project, post the H1 2014 period end, led the Board to undertake a full review of the plans to roll out Figaro more broadly across the Group.

 

As a result of the investigation into the underlying causes of these issues, the Board concluded in May 2014 that although Figaro is an acceptable solution for Stocktrade, it no longer believes it would be an appropriate operating system for the Group's discretionary wealth management business or to support the Group's strategic aims and new margin target of 25% by 2016.  Accordingly, it was announced on 13 May 2014 that the project to develop and roll out Figaro to the rest of the business would be terminated. 

 

The financial impact of this post balance sheet date decision is set out in note 17.

 

In December 2013 it was indicated that a further £20 million of capital expenditure on software development projects was anticipated over the following 18 months, including the project to roll out Figaro to the whole business.  As a result of the decision discussed above there will be no increment to the Group's forecast capital expenditure for 2014 to 2016. 

 

As disclosed in note 8, £4.5 million of capital expenditure (31 March 2013: £9.1 million) was incurred during the period on these projects, of which £3.3 million was on Figaro.  Total capitalised software at 30 March 2014 was £37.5 million, of which approximately £36.0 million related to development projects.  Within this, capitalised costs on the development of the Figaro system at 31 March 2014 were £33.2 million.

 

The decision to terminate the Figaro implementation was difficult to make, but one which the Board believes is correct and in shareholders', clients', and employees' long-term interests.  The Board concluded that continued implementation would not support its 25% margin target and present the business with unacceptable risks and that a better, more achievable solution is to use existing technology architecture, with some additional enhancements.  The current systems are well established and supported while continuing to deal with our high business levels. 

 

As evidenced by the progress already achieved in the last 18 months, margin improvement is being brought about by change in the business and its key operating processes.  Technology solutions via selective new and upgraded systems will be enabling elements of, but not be the primary driver of continuing improvement.

 



Strategy

The strategic aim of the Group remains unchanged and is focused on meeting the objectives that were put in place three years ago and have been reaffirmed by the current executive team.  The strategic priorities of this strategy are:

 

·    

To grow the number of clients we service and therefore the revenue we generate;

·    

To improve our efficiency;

·    

To maintain sufficient capital to maximise opportunities and cover risks; and

·    

To align dividend growth with underlying earnings growth.

 

Delivering on this strategy requires the simplification of a complex business, standardising operational processes and taking tough decisions with a view to delivering long-term shareholder value.  This process continues, and there is much still to be done. 

 

The demand for high quality, trusted, face to face advice is rising. Brewin Dolphin has an experienced network, a strong organisation and brand, and an executive team committed to driving through the necessary change to strengthen the business in order to be able to benefit from this trend.

 

Capital

The Group continues to have a strong balance sheet with cash balances at period end of £109 million.  These underpin its regulatory capital resources which continue to be in significant surplus to requirements.

 

The non-cash impairment charge resulting from the decision to end the roll out of the Figaro operating system to the Group's Discretionary Wealth Management business will not impact the Group's regulatory capital position, since intangible assets do not form part of the Group's regulatory capital base.

 

 

Dividend

The Group's dividend policy is to grow dividends in line with underlying adjusted earnings.  A new dividend policy was announced in December 2013 to target a total annual payout rate of 60 - 80% of adjusted earnings per share.  Further it was indicated that the final dividend would be used to reflect full year profitability, as is our normal practice.  Accordingly, an interim dividend of 3.65 pence per share will be paid on 4 July 2014 to shareholders on the register on 6 June 2014.

 

The variable final dividend will be based on the full year target dividend payout ratio of 60% to 80% adjusted earnings per share. 

 

Board

The Board has been strengthened with the appointment of additional non-executive directors to the Board.  Ian Dewar was appointed to the Board on 15 November 2013 and became Chair of the Audit Committee following Jock Worsley's retirement at the AGM in February 2014.  Paul Wilson was appointed to the Board on 9 December 2013 and became Chairman of the Remuneration Committee following the AGM in February 2014.  Caroline Taylor was appointed to the Board on 21 May 2014.  All of the non-executive directors are considered by the Company to be independent and the Board is now fully compliant with the UK Corporate Governance Code with respect to Board composition.

 

Going concern

As stated in note 2 to the condensed set of financial statements, the directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of time not less than 12 months from the date of this report. Accordingly, the directors continue to adopt a going concern basis in preparing the condensed financial statements.

 

Principal risks and uncertainties

The Directors consider that the nature of the principal risks and uncertainties which may have a material effect on the Group's performance during the remainder of its financial year remain unchanged from those identified on pages 27 to 30 of the 2013 Annual Report and Accounts available via our website www.brewin.co.uk.

 

Outlook

Over the last six months the economic backdrop has continued to improve.  The combination of economic policy and historically low interest rates has underpinned growth in investment markets.  Key indicators on growth and employment look positive for the future despite lacklustre Eurozone growth.

 

The Chancellor of the Exchequer and the Minister for Work and Pensions have put in place a strategy to modernise UK pensions.  It is too early to predict the eventual impact of the Budget on the Group's funds under management.  However, it was a Budget for savers and investors, and was welcomed by our clients.  

 

These results build on the positive trends of the last twelve months, and it is encouraging to see the rationalisation of the business model begin to bear fruit as organic growth is achieved.  Tackling the Group's legacy issues will take time.  We are committed, however, to ongoing improvement and strengthening of the business and will continue to make the difficult decisions necessary to achieve this, as evidenced by the refocused systems priorities. The streamlining of the business through improved operating processes and a clearer focus on core services, together with this ongoing strengthening, should not only secure further shareholder returns, but also substantially reduce risk.  These twin objectives remain management's priority.

 

 

David Nicol

Chief Executive

27 May 2014

 

 



Condensed Consolidated Income Statement

for the 26 week period ended 30 March 2014

 



Unaudited

26 weeks to

30 March 2014

Unaudited

26 weeks to 31 March 20131

Audited

52 weeks to 29 September 20131


Notes

£'000

£'000

£'000

Revenue


142,972

132,193

271,954

Other operating income


 3,339

 6,790

11,724

Total income


146,311

138,983

283,678






Staff costs


 (76,438)

 (73,527)

 (148,974)

Redundancy costs


 (984)

 (3,378)

 (4,795)

Additional FSCS levy


-

 (1,107)

 (1,107)

Onerous contracts provision


 (981)

 (5,882)

 (6,232)

Amortisation of intangible assets - client relationships

8

 (6,426)

 (6,494)

 (12,520)

Other operating costs


 (40,399)

 (42,087)

 (83,418)

Operating expenses


 (125,228)

 (132,475)

 (257,046)






Operating profit


 21,083

 6,508

26,632

Finance income

4

555

612

 1,452

Other gains and losses


-

 (13)

872

Finance costs

4

 (282)

(269)

(556)

Profit before tax


 21,356

 6,838

28,400

Tax

5

 (3,707)

 (1,636)

 (7,257)

Profit for the period


 17,649

5,202

21,143






Attributable to:





Equity shareholders of the parent

 17,649

 5,202

21,143



 17,649

 5,202

21,143






Earnings per share










Basic

6

6.7p

2.2p

8.4p

Diluted

6

6.3p

2.0p

8.0p






1 Restated see notes 2 and 16.







Condensed Consolidated Statement of Comprehensive Income

for the 26 week period ended 30 March 2014

 



Unaudited

26 weeks to

30 March

2014

Unaudited

26 weeks to

31 March 20131

Audited

52 weeks to

29 September 20131



£'000

£'000

£'000

Profit for the period


17,649

5,202

21,143

Items that will not be reclassified subsequently to profit

and loss:



Actuarial loss on defined benefit pension scheme

(826)

(1,042)

(2,046)

Deferred tax credit on actuarial loss on defined benefit pension scheme

165

239

403



(661)

(803)

(1,643)

Items that may be reclassified subsequently to profit

and loss:



Revaluation of available-for-sale investments

-

875

4,000

-

(201)

(633)

(88)

163

147



(88)

837

3,514

Other comprehensive income for the period


(749)

34

1,871

Total comprehensive income for the period


16,900

5,236

23,014






Attributable to:





Equity shareholders of the parent


16,900

5,236

23,014



16,900

5,236

23,014






 

1 Restated see notes 2 and 16.





 

 



Condensed Consolidated Statement of Changes in Equity

for the 26 week period ended 30 March 2014










 Attributable to the equity shareholders of the parent



Called up share capital

 Share premium account

 Own shares

Revaluation reserve

 Merger reserve

 Profit and loss account

 Total


 £'000

 £'000

 £'000

 £'000

 £'000

 £'000

 £'000

Balance at 30 September 2012

2,469

124,271

(12,569)

 4,285

22,950

21,331

 162,737

Restatement (see notes 2 and 16)

 -

 -

 -

-

 -

 -

-

Restated

2,469

124,271

(12,569)

 4,285

22,950

21,331

 162,737

Profit for the period

 -

 -

 -

-

 -

5,202

 5,202

Other comprehensive income for the period








Deferred and current tax on other comprehensive income

 -

 -

 -

 (201)

 -

 239

 38

Actuarial loss on defined benefit pension scheme

 -

 -

 -

-

 -

(1,042)

(1,042)

Revaluation of available-for-sale investments

 -

 -

 -

875

 -

 -

875

Exchange differences on translation of foreign operations

 -

 -

 -

-

 -

 163

163

Total comprehensive income for the period

 -

 -

 -

674

 -

4,562

 5,236

Dividends

 -

 -

 -

-

 -

(8,755)

(8,755)

Issue of shares

 44

7,872

 -

-

 -

 -

 7,916

Own shares acquired in the period

 -

 -

(102)

-

 -

 -

 (102)

Share-based payments

 -

 -

 -

-

 -

2,729

 2,729

Tax on share-based payments

 -

 -

 -

-

 -

 51

 51

Balance at 31 March 2013

2,513

132,143

(12,671)

 4,959

22,950

19,918

 169,812

Profit for the period

 -

 -

 -

-

 -

15,941

 15,941

Other comprehensive income for the period








Deferred and current tax on other comprehensive income

 -

 -

 -

 (432)

 -

 164

 (268)

Actuarial loss on defined benefit pension scheme

 -

 -

 -

-

 -

(1,004)

(1,004)

Revaluation of available-for-sale investments

 -

 -

 -

 3,125

 -

 -

 3,125

Exchange differences on translation of foreign operations

 -

 -

 -

-

 -

(16)

 (16)

Total comprehensive income for the period

 -

 -

 -

 2,693

 -

15,085

 17,778

Dividends

 -

 -

 -

-

 -

(9,322)

(9,322)

Issue of shares

 199

1,198

 -

-

38,430

 -

 39,827

Own shares acquired in the period

 -

 -

(63)

-

 -

 -

 (63)

Share-based payments

 -

 -

 -

-

 -

3,406

 3,406

Tax on share-based payments

 -

 -

 -

-

 -

 207

207

Balance at 29 September 2013

2,712

133,341

(12,734)

 7,652

61,380

29,294

 221,645

Profit for the period

 -

 -

 -

-

 -

17,649

 17,649

Other comprehensive income for the period








Deferred and current tax on other comprehensive income

 -

 -

 -

-

 -

 165

165

Actuarial loss on defined benefit pension scheme

 -

 -

 -

-

 -

(826)

 (826)

Revaluation of available-for-sale investments

 -

 -

 -

-

 -

 -

-

Exchange differences on translation of foreign operations

 -

 -

 -

-

 -

(88)

 (88)

Total comprehensive income for the period

 -

 -

 -

-

 -

16,900

 16,900

Dividends

 -

 -

 -

-

 -

(13,438)

 (13,438)

Issue of shares

 25

4,540

 -

-

 -

 -

 4,565

Own shares acquired in the period

 -

 -

 (4,135)

-

 -

 -

(4,135)

Own shares disposed of on exercise of options

 -

 -

3,819

-

 -

(3,819)

-

Share-based payments

 -

 -

 -

-

 -

3,187

 3,187

Tax on share-based payments

 -

 -

 -

-

 -

2,250

 2,250

Balance at 30 March 2014

2,737

137,881

(13,050)

 7,652

61,380

34,374

 230,974











Condensed Consolidated Balance Sheet

as at 30 March 2014



Unaudited as at

30 March 2014

Unaudited

as at

31 March

2013

Audited

as at

 29 September 2013


Notes

£'000

£'000

£'000

ASSETS





Non-current assets





Intangible assets

8

126,435

128,741

127,448

Property, plant and equipment

9

 12,886

14,758

14,320

Available-for-sale investments

10

 10,000

 6,875

10,000

Other receivables


 1,182

 2,248

 1,353

Deferred tax asset


 2,621

 1,254

672

Total non-current assets


153,124

153,876

153,793

Current assets





Trading investments

10

897

863

872

Trade and other receivables


262,672

277,625

258,848

Cash and cash equivalents


136,378

73,697

136,987

Total current assets


399,947

352,185

396,707

Total assets


553,071

506,061

550,500






LIABILITIES





Current liabilities





Bank overdrafts


231

584

 3,153

Trade and other payables


287,448

298,347

289,884

Current tax liabilities


 3,270

 1,868

 2,880

Provisions

11

 4,000

 3,535

 4,405

Shares to be issued including premium

12

 6,112

 2,636

 3,075

Total current liabilities


301,061

306,970

303,397

Net current assets


 98,886

45,215

93,310






Non-current liabilities





Retirement benefit obligation

13

 8,684

 9,496

 9,177

Deferred purchase consideration


 1,131

 1,579

 1,185

Provisions

11

 3,055

 4,364

 3,260

Shares to be issued including premium

12

 8,166

13,840

11,836

Total non-current liabilities


 21,036

29,279

25,458

Total liabilities


322,097

336,249

328,855

Net assets


230,974

169,812

221,645






EQUITY





Called up share capital

14

 2,737

 2,513

 2,712

Share premium account

14

137,881

132,143

133,341

Own shares


 (13,050)

 (12,671)

 (12,734)

Revaluation reserve


 7,652

 4,959

 7,652

Merger reserve


 61,380

22,950

61,380

Profit and loss account


 34,374

19,918

29,294

Equity attributable to equity holders of the parent

230,974

169,812

221,645








Condensed Consolidated Cash Flow Statement

for the 26 week period ended 30 March 2014



Unaudited

26 weeks to

30 March 2014

Unaudited

26 weeks to

31 March

2013

Audited

52 weeks to

29 September

2013


 Notes

 £'000

 £'000

 £'000

 Net cash inflow from operating activities

15

 23,881

13,467

60,516






 Cash flows from investing activities





 Purchase of intangible assets - client relationships

 (147)

 (3,079)

 (3,431)

 Purchase of intangible assets - software


 (4,697)

 (9,098)

 (15,121)

 Purchases of property, plant and equipment

9

 (1,559)

 (1,708)

 (4,502)

 Proceeds on disposal of available-for-sale investments

-

-

885

 Dividend received from available-for-sale investments

-

 -

286

 Net cash used in investing activities


 (6,403)

 (13,885)

 (21,883)






 Cash flows from financing activities





 Dividends paid to equity shareholders


 (13,438)

-

 (18,077)

 Purchase of own shares


 (4,135)

(102)

(165)

 Proceeds on issue of shares


 2,447

 2,049

41,875

 Net cash (used in)/from financing activities


 (15,126)

 1,947

23,633






 Net increase in cash and cash equivalents


 2,352

 1,529

62,266

 Cash and cash equivalents at the start of period

133,834

71,584

71,584

 Effect of foreign exchange rates


(39)

-

 (16)

 Cash and cash equivalents at the end of period

136,147

73,113

133,834











Firm's cash


109,174

45,739

116,686

Firm's overdraft


 (231)

(584)

 (3,153)

Firm's net cash


108,943

45,155

113,533

Client settlement cash


 27,204

27,958

20,301

Net cash and cash equivalents


136,147

73,113

133,834






Cash and cash equivalents shown in current assets

136,378

73,697

136,987

Bank overdrafts


 (231)

(584)

 (3,153)

Net cash and cash equivalents


136,147

73,113

133,834






 

For the purposes of the cash flow statement, cash and cash equivalents include bank overdrafts.



Notes to the Condensed Set of Financial Statements

 

1.

General information

Brewin Dolphin Holdings PLC (the "Company") is a public limited company incorporated in the United Kingdom. The shares of the Company are listed on the London Stock Exchange. The address of its registered office is 12 Smithfield Street, London EC1A 9BD. This Interim Financial Report was approved for issue on 27 May 2014.

 

A copy of this Interim Financial Report including Condensed Financial Statements for the
26 week period ended 30 March 2014 is available at the Company's registered office and on the Company's investor relations website.

 

The information for the 52 week period ended 29 September 2013 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditor reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

 

2.

Accounting policies

Basis of preparation

The annual financial statements of Brewin Dolphin Holdings PLC are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

 

The condensed set of financial statements included in this Interim Financial Report for the
26 week period ended 30 March 2014 should be read in conjunction with the annual audited financial statements of Brewin Dolphin Holdings PLC for the 52 week period ended
29 September 2013.

 

The condensed set of financial statements included in this Interim Financial Report has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting", as adopted by the European Union and the Interim Financial Report has been prepared in accordance with the Disclosure and Transparency Rules (DTR) of the Financial Conduct Authority.

 

Going concern

The Directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly they continue to adopt the going concern basis in preparing the condensed financial statements.

 

Changes in accounting policy and disclosure

The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest annual audited financial statements for the 52 week period ended 29 September 2013 with the exception set out below.

 

IAS 19 (Revised) has been applied retrospectively in accordance with IAS 8 'Accounting Policies, Changes in Accounting Estimates And Errors' and has led to the restatement of prior period amounts. The impact of adopting IAS 19 (Revised) on the Group's financial statements is for the interest costs on Scheme liabilities and expected return on Scheme assets in the income statement to be replaced with a single net interest cost item calculated by applying the discount rate assumption to the net defined benefit asset or liability. The impact of the restatement is set out in note 16.



 

3.

Related party transactions

There have been no related party transactions that have taken place in the period that have materially affected the financial position or the performance of the Group during the period and no changes to related party transactions from those disclosed in the 2013 Annual Report and Accounts available via our website www.brewin.co.uk that could have a material effect on the financial position or the performance of the Group. Transactions between the Company and its subsidiaries have been eliminated on consolidation and are not disclosed. There were no other transactions with related parties which were not part of the Group during the period, with the exception of remuneration paid to key management personnel.

 

4.

Finance income and costs

 






Unaudited

26 weeks to

30 March 2014

Unaudited 26 weeks to

31 March 20131

Audited

52 weeks to

29 September 20131


 £'000

 £'000

 £'000

Finance income




Dividends from available-for-sale investments

 -

 -

436

Interest on bank deposits

555

612

 1,016


555

612

 1,452





Finance costs




Finance cost of deferred consideration

65

62

149

Interest expense on defined pension obligation

184

200

372

Unwind of discounts on provisions

16

 -

18

Interest on bank overdrafts

17

7

17


282

269

556

1 Restated see notes 2 and 16.




 

5.

Taxation

 


Unaudited 26 weeks to 30 March 2014

Unaudited

26 weeks to 31 March 20131

Audited

52 weeks to

29 September 20131


 £'000

 £'000

 £'000

United Kingdom




  Current tax

 3,094

 1,498

 6,590

  Prior period

 -

328

256

Overseas tax




  Current tax

147

113

194

  Prior period


 -

 -


 3,241

 1,939

 7,040

United Kingdom deferred tax




  Current year

537

 (31)

325

  Prior period

 (71)

(272)

(108)

Total

 3,707

 1,636

 7,257

1 Restated see notes 2 and 16.




 



 

6.

Earnings per share

The calculation of the basic and diluted earnings per share is based on the following data:

 


Unaudited 26 weeks to 30 March 2014

Unaudited 26 weeks to 31 March 20131

Audited

52 weeks to

29 September 20131


'000

'000

'000

Number of shares




Basic




Weighted average number of shares in issue in the period

 264,623

 241,421

 250,391

Diluted




Weighted average number of options outstanding for the period

 13,775

 11,570

 12,211

Estimated weighted average number of shares earned under deferred consideration arrangements

2,768

1,796

3,434

Diluted weighted average number of options and shares for the period

 281,166

 254,787

 266,036






£'000

 £'000

£'000

Basic earnings attributable to ordinary shareholders




Profit for the period

 17,649

5,202

 21,143

Disposal of available-for-sale investment

-

-

 (885)

Redundancy costs

 984

3,378

4,795

Additional FSCS levy

-

1,107

1,107

Onerous contracts provision

 981

5,882

6,232

Amortisation of intangible assets - client relationships

6,426

6,494

 12,520

 less tax effect of above

(1,846)

(3,962)

(5,586)

Adjusted basic profit for the period and attributable earnings excluding redundancy costs, additional FSCS levy, onerous lease contracts provision, amortisation of client relationships and disposal of available-for-sale investment

 24,194

 18,101

 39,326





Diluted earnings attributable to ordinary shareholders




Profit for the period

 17,649

5,202

 21,143

Finance costs of deferred consideration (Note a)

 58

 19

 142

 less tax

(13)

(4)

(33)

Adjusted fully diluted profit for the period and attributable earnings

 17,694

5,217

 21,252

Disposal of available-for-sale investment

-

-

 (885)

Redundancy costs

 984

3,378

4,795

Additional FSCS levy

-

1,107

1,107

Onerous contracts provision

 981

5,882

6,232

Amortisation of intangible assets - client relationships

6,426

6,494

 12,520

 less tax effect of above

(1,846)

(3,962)

(5,586)

Adjusted basic profit for the period and attributable earnings excluding redundancy costs, additional FSCS levy, onerous lease contracts provision, amortisation of client relationships and disposal of available-for-sale investment

 24,239

 18,116

 39,435





Earnings per share








Basic

6.7p

2.2p

8.4p

Diluted

6.3p

2.0p

8.0p





Adjusted earnings per share




Excluding redundancy costs, additional FSCS levy, onerous lease contracts provision, amortisation of client relationships and disposal of available-for-sale investment

 

Basic

9.1p

7.5p

15.7p

Diluted

8.6p

7.1p

14.8p

1 Restated see notes 2 and 16.




 

a) Finance costs of deferred consideration are added back where the issue of shares is more dilutive than the interest cost saved.



 

7.

Dividends


£'000

£'000

£'000

Amounts recognised as distributions to equity shareholders in the period:






Final dividend paid 28 March 2014, 5.05p per share (2013: 3.6p per share)

13,438

 8,755

 8,755

Interim dividend paid 28 June 2013, 3.55p per share

 -

 -

 9,322


13,438

 8,755

18,077





An interim dividend of 3.65p per share was declared by the Board on 27 May 2014 and has not been included as a liability as at 30 March 2014. This interim dividend will be paid on 4 July 2014 to shareholders on the register at the close of business on 6 June 2014 with an ex-dividend date of 4 June 2014.

 

 



 

8.

Intangible assets

 


 Goodwill

 Client relationships

 Software development

costs

 Purchased software

 Total


 £'000

 £'000

 £'000

 £'000

 £'000

 Cost






 At 30 September 2012

 48,637

 94,690

 1,608

28,875

173,810

 Additions

-

 4,330

517

 8,581

13,428

 Exchange differences

-

 9

-

 -

9

 Revaluation of shares to be issued and deferred purchase consideration in respect of acquisitions in prior periods

-

 2,636

-

 -

 2,636

 At 31 March 2013

 48,637

 101,665

 2,125

37,456

189,883

 Additions

-

286

536

 6,654

 7,476

 Disposals

-

-

-

(156)

(156)

 Exchange differences

-

 (1)

-

 -

 (1)

 Revaluation of shares to be issued and deferred purchase consideration in respect of acquisitions in prior periods

-

(1,372)

-

 -

 (1,372)

 At 29 September 2013

 48,637

 100,578

 2,661

43,954

195,830

 Additions

-

740

 27

4,452^

 5,219

 Exchange differences

-

 (2)

-

 -

 (2)

 Revaluation of shares to be issued and deferred purchase consideration in respect of acquisitions in prior periods

-

 1,453

-

 -

 1,453

 At 30 March 2014

 48,637

 102,769

 2,688

48,406

202,500

 ^ £4.2m of purchased software acquired in the period relate to assets which are under development and not yet in use.













 Accumulated amortisation and impairment





 At 30 September 2012

-

 43,477

762

 8,641

52,880

 Amortisation charge for the period

-

 6,494

156

 1,612

 8,262

 Impairment losses for the period

-

-

-

 -

 -

 At 31 March 2013

-

 49,971

918

10,253

61,142

 Amortisation charge for the period

-

 6,026

109

 1,144

 7,279

 Eliminated on disposal

-

-

-

 (39)

 (39)

 Impairment losses for the period

-

-

-

 -

 -

 At 29 September 2013

-

 55,997

 1,027

11,358

68,382

 Amortisation charge for the period

-

 6,426

 96

 1,161

 7,683

 Impairment losses for the period

-

-

-

 -

 -

 At 30 March 2014

-

 62,423

 1,123

12,519

76,065













 Net book value






 At 30 September 2012

 48,637

 51,213

846

20,234

120,930

 At 31 March 2013

 48,637

 51,694

 1,207

27,203

128,741

 At 29 September 2013

 48,637

 44,581

 1,634

32,596

127,448

 At 30 March 2014

 48,637

 40,346

 1,565

35,887

126,435







 



 

9.

Property, plant and equipment

During the period the Group spent £0.3 million (26 weeks to 31 March 2013: £0.6 million, 52 weeks to 29 September 2013: £2.0 million) on leasehold improvements, £1.1 million (26 weeks to 31 March 2013: £0.8 million, 52 weeks to 29 September 2013: £1.3 million) on computer equipment and £0.2 million (26 weeks to 31 March 2013: £0.3 million, 52 weeks to 29 September 2013: £1.2 million) on office equipment. The depreciation charge for the period was £3.0m (31 March 2013: £2.9m, 29 September 2013: £5.6m).

 

10.

Investments

 

Available-for-sale investments




Unlisted investments

Total


£'000

£'000

Fair value






At 30 March 2014

10,000

10,000

At 31 March 2013

 6,875

 6,875

At 29 September 2013

10,000

10,000




The unlisted available-for-sale investments is Euroclear plc (31 March 2013: Euroclear plc and N+1 Singer Ltd).

 

The holding in Euroclear plc is as a result of a £431,000 strategic investment in Crest, the London based settlement system. Crest was taken over by Euroclear plc. The Group holds 19,899 ordinary shares of Euroclear plc's share capital (0.55%). As at 29 September 2013, the Directors updated their valuation of the Group's holding in Euroclear plc; the valuation is £10 million (31 March 2013: £6 million, 29 September 2013: £10 million). This valuation takes into account a number of different valuation methods including dividend yield.

 

Trading investments




Listed investments

Total


£'000

£'000

Fair value






At 30 March 2014

897

897

At 31 March 2013

863

863

At 29 September 2013

872

872




Investments are measured at fair value which is determined directly by reference to published prices in an active market where available.



 

11.

Provisions

 


£'000

£'000

£'000

£'000

£'000

At start of period

 2,212

 5,453

 7,665

1,887

 1,887

Additions

736

980

 1,716

6,770

 8,118

Utilisation of provision

(147)

(939)

 (1,086)

 (292)

 (1,245)

Unwinding of discount

 -

16

16

-

18

Unused amounts reversed during the period

(753)

(503)

 (1,256)

 (466)

 (1,113)

At end of period

 2,048

 5,007

 7,055

7,899

 7,665







Provisions






Included in current liabilities

 2,048

 1,952

 4,000

3,535

 4,405

Included in non-current liabilities

 -

 3,055

 3,055

4,364

 3,260


 2,048

 5,007

 7,055

7,899

 7,665

 

 

The timing of settlements in relation to sundry claims and associated costs cannot be accurately forecast; settlement of £nil (31 March 2013: £0.3m, 29 September 2013: £nil) has been made since the balance sheet date. The onerous lease contracts provision of £5m is principally in respect of surplus office space which the Group may not be able to sublet in the short term.

 

12.

Shares to be issued including premium and other deferred purchase liabilities

The Group acquires investment businesses and teams of investment managers, bringing with them funds under management (the latter classified as the intangible asset client relationships) on deferred purchase terms based on the value of income introduced over, normally, a three year period. The payment is normally made in ordinary shares and these shares typically have to be held for a further three years. At the discretion of the Board these shares can be purchased in the market rather than issued. The estimated likely cost of these shares has been updated at the half year in light of actual results of previously acquired business teams and to include new acquisitions.

 

13.

Retirement benefit obligation

The main financial assumptions used in calculating the Group's retirement benefit obligation are as follows:


As at

30 March

2014

As at

31 March

2013

As at

29 September

2013

Discount rate

4.30%

4.40%

4.40%

Rate of inflation (RPI)

3.20%

3.40%

3.20%

Rate of inflation (CPI)

2.20%

2.40%

2.20%

Salary increases

3.20%

3.40%

3.20%

LPI Pension increases

3.10%

3.30%

3.10%






Average assumed life expectancies for members on retirement at age 65

Existing pensioners




   Males

88.9 years

88.8 years

88.8 years

   Females

90.1 years

90.0 years

89.0 years

Future pensioners




   Males

90.2 years

90.1 years

90.1 years

   Females

91.6 years

91.5 years

91.5 years

 

A full actuarial valuation was carried out as at 1 January 2012 and the results of this valuation have been updated to 30 March 2014 by a qualified independent actuary.



 

14.

Called up share capital

The following movements in share capital occurred during the period:

 

 


Date

No. of Fully Paid Shares

No. of Nil Paid Shares

Exercise/Issue Price (pence)

Called up share capital

Share premium account

Total






£'000

£'000

£'000

At 29 September 2013


271,194,965

1,609,852


 2,712

 133,341

136,053

Settlement of deferred consideration

5 December 2013

 750,852


282p

 8

 2,110

 2,118

Issue of options

Various

 996,352

-

81.3p -179.75p

 9

 1,168

 1,177

Nil paid shares now paid up

Various

 819,076

(819,076)

103.3p - 217.5p

 8

 1,284

 1,292

Cost of issue of shares


-

-



 (22)

 (22)

At 30 March 2014


273,761,245

 790,776


 2,737

 137,881

140,618









 

 

15.

Note to the cash flow statement

 


Unaudited

26 weeks to

30 March

2014

Unaudited

26 weeks to

31 March

20131

Audited

52 weeks to

29 September

 20131


£'000

£'000

£'000

Operating profit

21,083

 6,508

26,632

Adjustments for:




Depreciation of property, plant and equipment

 2,993

 2,895

 5,569

Amortisation of intangible assets - client relationships

 6,426

 6,494

12,520

Amortisation of intangible assets - software

 1,257

 1,768

 3,021

Loss on disposal of property, plant and equipment

 -

6

591

Loss on disposal of intangible asset - purchased software

 -

-

117

Retirement benefit obligation

 (1,500)

 (1,500)

 (2,995)

Share-based payment cost

 3,187

 2,729

 6,135

Translation adjustments

 (51)

163

147

Interest income

555

612

 1,016

Interest expense

 (17)

 (7)

 (17)

Operating cash flows before movements in working capital

33,933

19,668

52,736

(Decrease)/increase in payables and provisions

 (3,506)

46,212

44,471

Increase in receivables and trading investments

 (3,678)

 (50,091)

 (30,431)

Cash generated by operating activities

26,749

15,789

66,776

 Tax paid

 (2,868)

 (2,322)

 (6,260)

Net cash inflow from operating activities

23,881

13,467

60,516

1 Restated see notes 2 and 16.












Cash and cash equivalents comprise cash at bank and bank overdrafts.



 



 

16.

Restatement of prior period information

 

As disclosed in note 2, the Group adopted IAS 19 (Revised) on 1 October 2013, this has resulted in the Consolidated Income Statement and Consolidated Statement of Comprehensive Income being restated. The amount of the restatement for each financial statement line item affected by retrospective application of IAS 19 (Revised) is set out below. The Group has not presented a balance sheet for the beginning of the earliest comparative period as there is no impact to the balance sheet.

 

 


As reported 26 weeks to

31 March 2013

Adjustment IAS 19 (Revised)

Restated

26 weeks to 31 March 2013

As reported

 52 weeks to

29 September 2013

Adjustment

IAS 19 (Revised)

Restated

52 weeks to 29 September 2013


£'000

£'000

£'000

£'000

£'000

£'000

Consolidated Income Statement







Finance costs

(185)

 (84)

(269)

(385)

(171)

 (556)

Profit before tax

 6,922

 (84)

 6,838

28,571

(171)

 28,400

Tax

 (1,656)

20

 (1,636)

 (7,297)

40

 (7,257)

Profit for the period

 5,266

 (64)

 5,202

21,274

(131)

 21,143








Earnings per share







Basic

2.2p

(0.0p)

2.2p

8.5p

(0.1p)

8.4p

Diluted

2.1p

(0.1p)

2.0p

8.0p

(0.0p)

8.0p








Adjusted1 earnings per share







Basic

7.5p

(0.0p)

7.5p

15.8p

(0.1p)

15.7p

Diluted

7.1p

(0.0p)

7.1p

14.9p

(0.1p)

14.8p








Consolidated Statement of Comprehensive Income







Profit for the period

 5,266

 (64)

 5,202

21,274

(131)

 21,143

Items that will not be reclassified subsequently to profit and loss:







Actuarial loss on defined benefit pension scheme

 (1,126)

84

 (1,042)

 (2,217)

171

 (2,046)

Deferred tax credit on actuarial loss on defined benefit pension scheme

259

 (20)

239

443

 (40)

403

Total other comprehensive income that will not be reclassified to income statement

(867)

64

(803)

 (1,774)

131

 (1,643)

Other comprehensive income/(expense) for the period

 (30)

64

34

1,740

131

 1,871

 

1 These figures have been adjusted to exclude redundancy costs, additional FSCS levy, onerous lease contracts provision and amortisation of client relationships.

 

Consequential amendments have also been made to the notes to the interim financial statements. The impact of retrospective application on each component of equity is shown in the Consolidated Statement of Changes in Equity, as required by IAS 1 'Presentation of Financial Statements'.

 



 

17.

Post Balance Sheet Event and Contingent Liability

 

On 13 May 2014, the Board announced that it had taken the decision to terminate the roll out of the JHC Systems Figaro software into the Discretionary Wealth Management business of the Group as originally planned.

 

It is expected that a pre-tax impairment charge of circa £32 million will be taken against Intangible Assets in the second half of 2014 as a result of this decision based on the consequent reassessment of the value in use of the software asset under development.

 

There is a need for the Group to resolve payment commitments of circa £15 million pre-tax over the next ten years which, under the original contracts, may be payable following implementation into the Discretionary Wealth Management business.  The Group is engaged in negotiations to vary and settle these arrangements.

 

The conditions which gave rise to both this charge and contingent liability did not exist at 30 March 2014, the reporting date for these condensed financial statements.  Accordingly no adjustments have been made to these financial statements, but these disclosures are provided on the non-adjusting post balance sheet event and contingent liability.

 

Cautionary statement

The Interim Management Report (the "IMR") for the 26 week period ended 30 March 2014 has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. The IMR should not be relied on by any other party or for any other purpose.

 

The IMR contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them up to the time of their approval of this report but such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

Responsibility Statement

 

The Directors confirm that to the best of their knowledge:

 

a)

the condensed set of financial statements has been prepared in accordance with IAS 34 "Interim Financial Reporting";

 

b)

the interim management report includes a fair view of the information required by Disclosure and Transparency Rules (DTR) 4.2.7 R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

 

c)

the interim management report includes a fair view of the information required by DTR 4.2.8 R (disclosures of related parties' transactions and changes therein).

 

 

By order of the Board

           

D Nicol

A Westenberger

Chief Executive                      

27 May 2014

Finance Director

 

 



Independent Review Report

to Brewin Dolphin Holdings PLC

 

We have been engaged by Brewin Dolphin Holdings PLC ("the company") to review the condensed set of financial statements in the half-yearly financial report for the 26 week period ended 30 March 2014 which comprises the Condensed Consolidated Income Statement, the Condensed Consolidated Statement of Comprehensive Income, the Condensed Consolidated Statement of Changes in Equity, the Condensed Consolidated Balance Sheet, the Condensed Consolidated Cash Flow Statement and related notes 1 to 17. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

 

This report is made solely to the company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board.  Our work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed.

 

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

 

As disclosed in note 2, the annual financial statements of the company are prepared in accordance with IFRSs as adopted by the European Union.  The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union.

 

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

 

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the 26 week period ended 30 March 2014 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

 

 

Deloitte LLP

Chartered Accountants and Statutory Auditor

London, United Kingdom

27 May 2014

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR LFFILEEIDFIS

a d v e r t i s e m e n t