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Brewin Dolphin Hldgs (BRW)

  Print          Annual reports

Wednesday 29 November, 2006

Brewin Dolphin Hldgs

Preliminary Results

Brewin Dolphin Holdings PLC
29 November 2006


29 November 2006
                          Brewin Dolphin Holdings PLC

                           Group Preliminary Results

                  For the 52 week period to 30 September 2006


  • Total income £174 million (2005: £145 million)

  • Discretionary funds £8.8 billion at 30 September 2006 (2005: £6.9 billion)

  • Profit before tax and exceptional item £32.0 million (2005: £24.6 million)

  • Profit before tax £32.0 million (2005: £17.8 million)

  • Earnings per share

    -  Diluted earnings per share 10.6p (2005: 8.3p excluding exceptional item,
       6.0p, including exceptional item)

    -  Basic earnings per share 11.1p (2005: 8.7p excluding exceptional item,
       6.2p, including exceptional item)

  • Total dividend 5.25p (2005: 4.5p) per share

'It gives me great pleasure to present to Shareholders another set of robust
figures.  While market conditions have been favourable there are a number of
other factors which have been significant in achieving the progress that we have
made.  We have enjoyed the benefit of new teams joining us both in London and
elsewhere in our branch network.  We have also seen further migration from
advisory to discretionary management as well as enjoying a steady inflow of new
clients.'


Jamie Matheson, Executive Chairman


 For further information:-
 Jamie Matheson, Executive Chairman                   John Hall, Chief Executive
 Brewin Dolphin                                       Brewin Dolphin
 020 7248 4400                                        020 7248 4400

 Toby Mountford
 Citigate Dewe Rogerson
 020 7638 9571 / 07710 356611


Chairman's Statement

It gives me great pleasure to present to Shareholders another set of robust
figures.  While market conditions have been favourable there are a number of
other factors which have been significant in achieving the progress that we have
made.  We have enjoyed the benefit of new teams joining us both in London and
elsewhere in our branch network.  We have also seen further migration from
advisory to discretionary management as well as enjoying a steady inflow of new
clients.

Our Corporate Broking operations produced a very strong performance across the
board.  Not only has there been an increased level of activity but also a marked
increase in the size of mandates won.

All this strengthens our conviction and belief in our branch network and our
emphasis on our clients having both the freedom of choice and the ability to
communicate directly with the individual manager who looks after their
interests.  During the year we opened an office in Keswick and since the year
end we have opened in Oxford and will shortly be opening in Hereford.

We continue to invest in infrastructure in order to ensure that we provide an
ever improving service to clients.  The year under review has seen a material
investment in our systems and in particular in the eXimius Data Management
service.

After some twenty five years we had to accept that we had finally outgrown our
old London premises at 5 Giltspur Street and we have been able to move to new
premises at 12 Smithfield Street.  While we remain in the same locale the new
premises offer a much improved working environment both in which to meet and to
look after clients.  It is a great credit to our personnel that this major move
was achieved with minimal disruption to the firm's efficient operations.

Your Group remains committed to the attainment of the highest standards of
business practice and is very conscious of the need to meet the requirements of
the Financial Services Authority.  At the same time we share the widely held
view that regulation must be constructed and administered in a manner that is
sensible, practical and relevant.  To this end we are committed to working
closely with the Regulator and Government at various levels.  We welcome the
FSA's decision to adopt a more principle based regime for regulation.

At the time of the Interim Results I was able to report to you the appointment
of David McCorkell to the Board and he is already making a significant
contribution to the affairs of your Company.  As a new appointment he will be
standing for election at the Annual General Meeting on 23 February 2007.
Standing for re-election will be Michael Williams, our director responsible for
the Group's legal matters who orchestrated the superb deal which enabled us to
move into 12 Smithfield Street.

Two of our Non-Executive Directors are also standing for re-election: Nick Hood,
Senior Independent Director and Deputy Chairman: and Jock Worsley, Chairman of
the Audit Committee; I commend them to you.

I am very pleased to be able to tell you that our Chief Executive, John Hall,
has recently been appointed Chairman of our Trade Association APCIMS, where we
are confident he will make a significant contribution in the leadership of our
industry.  APCIMS has recently been at the forefront of negotiations in Brussels
and with the FSA, in seeking to reduce the impact of the introduction of MiFID
and increase the relevance of the proposals.

As ever it would be foolhardy to become overly involved in short term
predictions about our markets but we remain committed to pursuing the Company's
objective of achieving steady growth and returns for Shareholders through the
provision of a quality service to our clients.

As is always the case, the results achieved in the year under review have been
done so thanks to the hard work of our people and the continued support of our
clients.  Once again your Company is firmly committed to pursuing the
achievement of a satisfactory outcome for the year ahead.


Jamie Matheson
28 November 2006


Chief Executive's Report

Some years it is much easier to write the report to shareholders than others and
the past 12 months certainly comes into this category.   The investment climate
throughout the period has remained relatively benign.   The market's performance
as measured by the FTSE 100 Index has risen by less than 10% but if one ignores
a blip in May and June, it has in fact presented a relatively stable background
against which to advise our clients.   We have however strengthened your Group
in a number of ways and broadened the offering to our clients and this has shown
through in our results.   The group's profits before tax for the year ending 30
September 2006 amounted to £32m against £24.6m (before exceptional item) a year
ago, an increase of 30%.   However within operating expenses there is an item of
£1.2m relating to the one-off cost of moving to our new Head Office, to which
our Chairman alludes in his statement and if one were to add that back the
increase would be 35%.   These profits were earned on total income of £174m
against £145m last year, an increase of 20%.

We have, as in previous years, made two interim dividend payments rather than an
interim and a final, in order to distribute the dividends in April and October.
  A first interim dividend of 2.5p per share (2p per share in 2005) was paid on
6 April 2006.   A second interim dividend was paid on 25 October 2006 of 2.75p
per share against 2.5p per share the previous year, making a total for the year
of 5.25p per share against 4.5p per share in the previous year, an increase of
17%.

Fully diluted earnings per share were 10.6p which compares with 8.3p if last
year's exceptional item is excluded, an increase of 28%; 33% if one adjusts for
moving costs. Basic earnings per share were 11.1p which compares with 6.2p per
share previously, an increase of 79%.

During the past year we have made further good progress in building the
discretionary funds that we manage.   In my report a year ago, I outlined the
case for discretionary management and there is no doubt that it enables us to
give a better service to our clients and at the same time, by switching the
emphasis to a fee based charge, we are underpinning our earnings for
shareholders.   The value of discretionary funds under our management rose to
£8.8 billion at the year end from £6.9 billion a year previously, an increase of
28%.   This highly satisfactory performance reflects in part a rise in the
underlying values, although the FTSE 100 Index only rose 8.8% over the same
period, and in part switching from advisory to discretionary management.
However, by far the largest reason for this excellent performance was the
winning of new mandates and clients following those who have joined us from
other houses.


Private Client Investment Management
Value of Funds

                                                                    2006                2005
                                                                     £bn                 £bn

Discretionary portfolio management                                   8.8                 6.9
Advisory portfolio management                                       10.1                10.0

                                                                    18.9                16.9


Responding to our clients' requirements we are now providing a broader wealth
management package for those that require it.   Our financial planners offer
particular expertise on personal pensions and inheritance tax planning and they
have held a number of highly successful seminars around the country.   We have
now established a SIPP administration service through which we provide
personalised portfolios for our clients.   Last year the financial planning
team's turnover rose 76%.   Their figures are contained within the income earned
on portfolio management set out below.

                                                     Total        Operating           Total        Operating 
                                                    Income           Profit          Income          Profit*
                                                      2006             2006            2005             2005
                                                        £m               £m              £m               £m

Discretionary portfolio management                    84.9             12.4            69.2              9.6
Advisory portfolio management                         66.6              9.2            61.2              7.8
                                                     151.5             21.6           130.4             17.4

* before exceptional item


We have been particularly glad to welcome an additional 38 senior client
executives and their clients who have joined us over the past year.    It always
takes a few months for these transfers to be completed and accordingly the full
benefit of these additions will not be felt until the current year.   London has
benefited the most, where we have welcomed an additional 23 senior client
executives and 10 assistants.   In total, we now have 137 client advisers in our
London office and 574 groupwide.

The Belfast office, which we opened last year, continues to be strengthened.
  Since the year end we were delighted to announce the purchase of the Bank of
Ireland's Northern Ireland private client investment management business which
will be run by our Belfast office.

In August we agreed the purchase of Aberdeen Private Investors from Aberdeen
Asset Management and the successful transfer of £200 million client funds
followed.   This further strengthens our Aberdeen branch and also represents a
valuable addition to our Glasgow branch.

During the year we opened a new branch in Keswick.   Since the year end we have
established an office in Oxford and will be opening an office in Hereford in
January 2007.   Our policy of establishing branch offices around the country,
staffed by dedicated and enthusiastic professionals who we can support with all
the same technology and investment advice as if they were in London, continues
to work well for us in building the client base and attracting new mandates.
We were pleased to win the Investors Chronicle Award for 'Financial Security and
Administration', being described as being a clear success story.   We were
equally delighted that Stocktrade, our execution only arm, came first in the
same category as 'Best On-line Stockbroker'.

We are always updating our technology, but the new eXimius software which is
currently being installed represents a step change to what has been available to
date.   It greatly enhances the portfolio management tools for our client
executives, as well as providing the information that will be required under
MiFID.


Corporate Broking

In addition to private client investment management we are now acknowledged as
one of the leading corporate brokers for smaller companies.   We act as advisers
to 133 quoted corporate clients as well as a number of private companies.   Our
corporate advisers are based in Edinburgh, Glasgow, Birmingham, Leeds,
Manchester and Newcastle branches.   Last year was an excellent one for the
Division as will be seen from their figures:-

                                                     Total        Operating           Total        Operating 
                                                    Income           Profit          Income          Profit*
                                                      2006             2006            2005             2005
                                                        £m               £m              £m               £m

Corporate broking                                     22.1              5.3            14.3              2.9

* before exceptional item


Revenues rose by 55% and operating profit increased by 83% and the markets for
new and secondary issues were strong for virtually all of the year.   Our
existing clients were active on the acquisition and fund-raising fronts and we
gained our full share of new clients both from initial public offerings,
flotations and from companies already quoted.   Whilst still offering a full
service to smaller and micro cap companies, we have also been increasingly
active with larger clients, a trend that has continued in the new financial
year.


Conclusion

From the foregoing it will be seen that we have made good progress on many
fronts during the past year, particularly in terms of the increase in the number
of clients and amount of funds using discretionary management.   At the same
time we are building the number of experienced client executives to give clients
the personalised attention that is our trademark.   We expect this trend to
continue and it is a key element of our strategy.

I would like to thank all our staff for their hard work and their commitment to
our clients.   It is thanks to them that we can look to the future with
considerable confidence.   Additionally, we will have a full year's contribution
from the teams that have joined us during 2006, further strengthened by others
who will be joining us shortly.


John Hall
28 November 2006


Consolidated Income Statement
52 week period ended 30 September 2006
                                                          52 weeks to  30        53 weeks to 30
                                                           September 2006        September 2005
                                                Note               £'000s                £'000s
Continuing operations
Revenue                                                           164,594               136,563
Other operating income                                              9,044                 8,097

Total income                                     1                173,638               144,660

Staff costs                                                      (91,621)              (78,293)
Other operating costs                                            (55,166)              (52,899)

                                                                (146,787)             (131,192)

Operating profit                                                   26,851                13,468
Finance income                                                      5,235                 4,555
Finance costs                                                        (36)                 (254)

Profit on ordinary activities before             
exceptional item                                 1                 32,050                24,600
Exceptional item                                 2                      -               (6,831)

Profit before tax                                                  32,050                17,769
Tax                                              3               (10,045)               (5,555)

Profit attributable to equity shareholders       
of the parent from continuing operations                           22,005                12,214

Earnings per share

From continuing operations
Basic                                            5                  11.1p                  6.2p

Diluted                                          5                  10.6p                  6.0p



Consolidated Statement of Recognised Income and Expense
52 week period ended 30 September 2006
                                                                     52 weeks to  30   53 weeks to 30
                                                                      September 2006   September 2005
                                                                              £'000s           £'000s

Gain on revaluation of available-for-sale investments                          1,509            1,144
Tax on revaluation of available-for-sale investments                           (453)            (343)
Actuarial loss on defined benefit pension scheme                             (3,251)            (666)
Tax on actuarial loss on defined benefit pension scheme                          975              200
Deferred tax on share based payments                                             720              599

Net income recognised directly in equity                                       (500)              934
Profit for period                                                             22,005           12,214

Total recognised income and expense for the period attributable to            
equity shareholders of the parent                                             21,505           13,148


Consolidated Balance Sheet
As at 30 September 2006
                                                                             As at 30      As at 30
                                                                            September     September
                                                                                 2006          2005
                                                                               £'000s        £'000s
ASSETS                                                             Note
Non-current assets
Goodwill                                                                       66,846        43,624
Property, plant and equipment                                                  16,920         9,168
Available-for-sale investments                                                 10,463         8,954
Other receivables                                                               1,988         1,938
Deferred tax asset                                                              2,473         2,908

                                                                               98,690        66,592
Current assets
Trading investments                                                             2,470         1,227
Trade and other receivables                                                   251,437       231,717
Cash and cash equivalents                                                      61,576        50,392

                                                                              315,483       283,336

Total assets                                                                  414,173       349,928

LIABILITIES
Current liabilities
Bank overdrafts                                                                 3,197           164
Trade and other payables                                                      279,148       250,982
Current tax liabilities                                                         3,256         2,259
Shares to be issued including premium                                           1,000         2,928

                                                                              286,601       256,333

Net current assets                                                             28,882        27,003

Non-current liabilities
Retirement benefit obligation                                                  15,422        12,937
Deferred purchase consideration                                                 3,444           538
Shares to be issued including premium                                          16,500         3,072

                                                                               35,366        16,547

Total liabilities                                                             321,967       272,880

Net assets                                                                     92,206        77,048

EQUITY
Called up share capital                                          6              1,995         1,965
Share premium account                                            6             82,755        79,287
Revaluation reserve                                              6              6,805         5,749
Merger reserve                                                   6              4,562         4,562
Profit and loss account                                          6            (3,911)      (14,515)

Equity attributable to equity holders of the parent              6             92,206        77,048



Consolidated Cash Flow Statement
52 week period ended 30 September 2006
                                                            Note 52 weeks to  30  53 weeks to 30
                                                                  September 2006  September 2005
                                                                          £'000s          £'000s

 Net cash flow from operating activities                  7               34,442          16,075

 Cash flows from investing activities
 Purchase of goodwill                                                    (6,289)         (1,483)
 Purchases of property, plant and equipment                             (11,523)         (6,291)
 Purchases of available-for-sale investments                                   -           (310)
 Dividends received from available-for-sale                                 
investments                                                                  249             221

 Net cash used in investing activities                                  (17,563)         (7,863)

 Cash flows from financing activities
 Dividends paid to equity shareholders                                   (9,884)         (7,837)
 Proceeds on issue of shares                                               1,156             210

 Net cash used in financing activities                                   (8,728)         (7,627)

 Net increase in cash and cash equivalents                                 8,151             585

 Cash and cash equivalents at the start of period                         50,228          49,643

 Cash and cash equivalents at the end of period                           58,379          50,228

Firm's cash                                                               47,832          38,168
Firm's overdraft                                                         (3,197)           (164)

Firm's net cash                                                           44,635          38,004
Client settlement cash                                                    13,744          12,224

Net cash and cash equivalents                                             58,379          50,228

Cash and cash equivalents shown in current assets                         61,576          50,392
Bank overdrafts                                                          (3,197)           (164)

Net cash and cash equivalents                                             58,379          50,228



Notes

1.     Revenue and segmental information

For management purposes, the Group is divided into two business streams: private
client investment management and corporate broking. These form the basis for the
primary segment information reported below. All operations are carried out in
the United Kingdom and the Channel Islands.
                                                            2006             2005
                                                        52 weeks         53 weeks
                                                          £'000s           £'000s
Total income
Private client investment management
  Discretionary portfolio management                      84,878           69,165
  Advisory portfolio management                           66,613           61,243

                                                         151,491          130,408
Corporate broking                                         22,147           14,252

                                                         173,638          144,660

Profit on ordinary activities before
exceptional item and tax
Private client investment management
  Discretionary portfolio management                      12,381            9,625
  Advisory portfolio management                            9,216            7,809

                                                          21,597           17,434
Corporate broking                                          5,254            2,865

                                                          26,851           20,299
Finance income (net)                                       5,199            4,301

                                                          32,050           24,600

Segment assets
Private client investment management                     319,654          290,270
Corporate broking                                         94,519           59,658

                                                         414,173          349,928

Segment liabilities
Private client investment management                     227,448          213,222
Corporate broking                                         94,519           59,658

                                                         321,967          272,880

     
2.   Exceptional item

In December 2004 the Group made a £5m contribution to a fund (Fund Distribution
Limited) for those who had lost money in Zero Dividend Shares. The 2005
exceptional charge, included within other operating costs and staff costs,
represents this payment, less insurance recovery, plus other directly
attributable costs. These charges are considered to be exceptional due to their
size and the unusual nature of their incidence.

3.   Taxation

                                                                                 2006       2005
                                                                             52 weeks   53 weeks
                                                                               £'000s     £'000s
United Kingdom
  Current tax                                                                   7,723      5,374
  Prior year                                                                      415         17
Overseas tax
  Current tax                                                                     230        127

                                                                                8,368      5,518
United Kingdom deferred tax
  Current year                                                                  2,040        163
  Prior year                                                                    (363)      (126)

                                                                               10,045      5,555

United Kingdom corporation tax is calculated at 30% (2005: 30%) of the estimated 
assessable taxable profit for the period.

Taxation for other jurisdictions is calculated at the rates prevailing in the 
respective jurisdictions.

The charge for the year can be reconciled to the profit per the income statement 
as follows:

Profit before tax                                                              32,050     17,769

Tax at the UK corporation tax rate of 30% (2005: 30%)                           9,615      5,331
Tax effect of expenses that are not deductible in determining taxable             285        297
profit
Tax effect of prior year tax                                                      415         17
Tax effect of prior year deferred tax                                           (363)      (126)
Tax effect of options pre November 2002                                          (88)          -
Tax effect of deferred tax timing differences                                     (1)      (105)
Tax effect of leasehold property depreciation                                     182        141

Tax expense                                                                    10,045      5,555

Effective tax rate for the year                                                   31%        31%

In addition to the amount charged to the income statement, deferred tax relating
to the revaluation of the Group's available for sale investments  amounting to
£453,000

(2005: £343,000) has been charged directly to equity and deferred tax relating
to the actuarial loss in the defined benefit pension scheme amounting to
£975,000 (2005: £200,000) has been credited directly to equity.

     
4.   Dividends

                                                                              2006          2005
                                                                          52 weeks      53 weeks
                                                                             £'000         £'000
Amounts recognised as distributions to equity holders in the period:
First interim dividend paid 6 April 2006, 2.5p per share                     
(2005: 2.0p)                                                                 4,970         3,927
Second interim dividend paid 25 October 2006, 2.75p per share (2005:         
2.5p)                                                                        5,488         4,914

                                                                            10,458         8,841

5.     Earnings per share

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


Number of shares
                                                                              2006          2005
                                                                              '000          '000
Basic
Weighted average number of shares in issue in the period                   198,025       196,227
Diluted
Weighted average number of options outstanding for the period                4,985         3,070
Estimated weighted average number of shares earned under deferred            4,106         5,421
consideration arrangements

Diluted weighted average number of options and shares for the period       207,116       204,718

Earnings attributable to ordinary shareholders
                                                                            £'000s        £'000s

Basic profit for the period and attributable earnings                       22,005        12,214
Exceptional item                                                                 -         6,831
 less tax on exceptional item                                                    -       (2,049)

Adjusted basic profit for the period and attributable earnings              22,005        16,996

From continuing operations

Basic                                                                        11.1p          6.2p

Diluted                                                                      10.6p          6.0p

From continuing operations excluding exceptional item

Basic                                                                        11.1p          8.7p

Diluted                                                                      10.6p          8.3p


6.     Reserves and reconciliation of changes in equity

                                     Called up        Share   Revaluation       Merger   Profit and       Total
                                         share      premium       reserve      reserve loss account
                                       capital      account
                                        £'000s       £'000s        £'000s       £'000s       £'000s      £'000s
Group
24 September 2004                        1,955       79,081         4,948        3,929     (18,827)      71,086
Profit for the period                        -            -             -            -       12,214      12,214
Goodwill previously written off              -            -             -            -          312         312
Dividends paid                               -            -             -            -      (8,841)     (8,841)
Issue of shares                             10          206             -          633            -         849
Revaluation                                  -            -         1,144            -            -       1,144
Deferred tax on items taken                  -            -         (343)            -          799         456
directly to equity
Share based payments                         -            -             -            -          494         494
Actuarial loss on defined benefit            -            -             -            -        (666)       (666)
pension scheme

30 September 2005                        1,965       79,287         5,749        4,562     (14,515)      77,048
Profit for the period                        -            -             -            -       22,005      22,005
Dividends paid                               -            -             -            -     (10,458)    (10,458)
Issue of shares                             30        3,468             -            -            -       3,498
Revaluation                                  -            -         1,509            -            -       1,509
Deferred tax on items taken                  -            -         (453)            -        1,695       1,242
directly to equity
Share based payments                         -            -             -            -          613         613
Actuarial loss on defined benefit            -            -             -            -      (3,251)     (3,251)
pension scheme

30 September 2006                        1,995       82,755         6,805        4,562      (3,911)      92,206


7.     Notes to the cash flow statement
                                                                             2006          2005
                                                                         52 weeks      53 weeks
                                                                           £'000s        £'000s
Group
Operating profit                                                           26,851        13,468
Adjustments for:
 Depreciation of property, plant and equipment                              3,771         4,312
 Retirement benefit obligation                                              (766)         (671)
 Share based payment cost                                                     613           494
 Interest income                                                            4,987         4,334
 Interest expense                                                            (36)          (15)

Operating cash flows before movements in working capital                   35,420        21,922
 Increase in receivables and trading investments                         (21,014)      (34,757)
 Increase in payables                                                      27,407        35,020

Cash generated by operating activities                                     41,813        22,185
 Tax paid                                                                 (7,371)       (6,110)

Net cash flow from operating activities                                    34,442        16,075


8.   Insurance reimbursements and provisions

The Directors remain in discussion with the Group's insurers in respect of
claims for costs already incurred and expensed in relation to legal actions,
mainly relating to split capital trusts. Insurance debtors, based upon a prudent
estimate of amounts which are regarded as virtually certain to be received, are
included in other debtors. An estimate of the potential favourable financial
effect of the receipt of additional reimbursements is not disclosed as the
Directors consider that any such disclosure would seriously prejudice their
ongoing negotiations with insurers.

Various legal actions and complaints have been made against the Group for which
legal proceedings are in progress.  Provision for any estimated payments arising
from these claims have been made and are included within trade and other
payables.  These items are not disclosed separately as provisions, as the
Directors consider that disclosure of any further information would seriously
prejudice the position of the Group. The Directors believe that should any of
these claims result in a more significant loss than that provided, that any
further claims will be covered by insurance.

     
9.   Funds

                                                           At 30 September      At 30 September
                                                                      2006                 2005
                                                                 £ Billion            £ Billion

In Group's nominee or sponsored member                                 8.6                  6.5
Stock not held in Group's nominee                                      0.2                  0.4

Discretionary funds under management                                   8.8                  6.9

In Group's nominee or sponsored member                                 7.2                  6.7
Other funds where valuations are carried out but                       2.9                  3.3
where the stock is not under the Group's control

Advisory funds under management                                       10.1                 10.0

Managed funds                                                         18.9                 16.9


In Group's nominee or sponsored member                                 2.4                  2.0
Stock not held in Group's nominee                                      0.3                  0.3

Execution only stock                                                   2.7                  2.3

Total funds                                                           21.6                 19.2

Stock
In Group's nominee or sponsored member                                18.2                 15.2
Stock not held in Group's nominee                                      3.4                  4.0

                                                                      21.6                 19.2

10. Additional Information

The accounting policies used in arriving at the preliminary figures are
consistent with those, which will be published in the full financial statements
and which were set out in the Preliminary IFRS Financial Information included in
the Group's Annual Report and Accounts for 2005.

The financial information in this press release does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985, but is
derived from these accounts. Statutory accounts for 2005 have been delivered to
the Register of Companies, and those for 2006 will be delivered following the
Company's Annual General Meeting. The Auditors have reported on those accounts;
their reports were unqualified and did not contain statements under section 237
(2) or (3) of the Companies Act 1985.

Whilst the financial information included in this preliminary announcement has
been computed in accordance with International Financial Reporting Standards
(IFRSs), this announcement does not itself contain sufficient information to
comply with IFRSs. The Company's 2006 statutory accounts do comply with IFRSs ;
it is expected that they will be published in full in January 2007.

All financial information has been prepared in accordance with International
Financial Reporting Standards (IFRSs).  The comparative results for the year to
30 September 2005, which were originally reported in accordance with UK
Generally Accepted Accounting Practice (UK GAAP), have been restated
accordingly.

The Annual General meeting will be held at 12 noon on 23 February 2007 at
Merchant Taylors' Hall, 30 Threadneedle Street, London EC2R 8JB.



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