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BWD Securities PLC (RBG)


Tuesday 08 February, 2000

BWD Securities PLC

Final Results - Pre-tax Profits Up 22%

BWD Securities PLC
8 February 2000

BWD Securities PLC (BWD) the investment management group, announces its final
results for the year ended 30 November 1999

Key Points :

*       Pre-tax profits at £6.6m (1998 £5.4m)  -  up 22%

*       Basic earnings per share at 26.7p (1998 19.2p)  -  up 39%

*       Total dividend for year at 14.5p (1998 12p)  -  up 21%

*       Turnover at £27m (1998 £22.3m)  -  up 21%

*       Group fee income at £14.2m (1998 £10.8m)  -  up 31%

*       BWD Rensburg managed client funds at £2.4bn (1998 £2bn) - up 20%

*       BWD Rensburg Unit Trusts at £203m (1998 £95m) - up 114%

Since the year end, we have seen that the positive trends established in 1999
are continuing into the current financial year.  This, together with a full
year's contribution from last year's acquisitions provides us with real
confidence for the future.

For further information, please contact:

Michael Burns, Chief Executive                  Tel:  0151 227 2030
Michael Dickinson, Group Finance Director       Tel:  01484 607722


Financial Results

I am pleased to report a 22% increase in the group's profit before tax from
£5,434,000 to £6,610,000 for the year ended 30 November 1999.  Profit after
tax was £5,083,000 (1998 £3,675,000) representing basic earnings per share of
26.7p (1998 19.2p) an increase of 39%.

The fall in the tax charge and the corresponding increase in earnings per
share is accounted for by the operation of an employee share scheme which
provides corporation tax relief on the value above the option price of the
shares allotted to employees under the SAYE share option scheme.  This has
resulted in an exceptional increase in earnings per share of 2.5p.


The directors are recommending an increase in the total dividend for the year
of 21% to 14.5p (1998 12p).  This is in line with the increase in profits but
does not reflect the exceptional tax credit mentioned in the preceding


Both BWD Rensburg and Northern Registrars expanded their businesses by
acquisition towards the end of the financial year.  The total consideration
was almost £9 million although the impact on the 1999 financial results is
minimal.  Full details are given in the Chief Executive's Review and in the
remainder of the Report and Financial Statements.


I am delighted to welcome Christopher Clarke to the Board, who was appointed
as a non-executive Director of the Company in October 1999.  He is Managing
Director of Witan Investment Company plc which is one of the UKs largest
investment trusts.  He has a wealth of experience in investment management and
we will also benefit from his broad knowledge of the financial markets in
which we operate.

I will be retiring from the Board at the Annual General Meeting when it is
intended that Alan Bottomley, who joined the Board in 1997, will succeed me as
Chairman.  I have been proud to be associated with the group during the past
five years when profits have increased from £2.5 million to £6.6 million
accompanied by a substantial increase in the Company's share price.  On behalf
of the Board and our shareholders I congratulate the executive directors and
all the group's employees on their excellent work during my time as Chairman.

Peter Stanley
8 February 2000

Chief Executive's Review of Operations

We have continued to concentrate on growing our businesses with an emphasis on
recurring fees as opposed to transaction based revenue.  Towards the end of
the financial year we acquired Nicholson Barber, the Sheffield based
investment management company and stockbroker.

We also added to our company registration business, Northern Registrars, with
the acquisition of KPMG's registration business.  The impact on the group's
income and profits from these acquisitions for the financial year under review
is minimal.  We have also invested further in our collective investment
businesses with the establishment of a new unit trust, investing in mid-cap
stocks and a venture capital trust specialising in AIM stocks.

Group turnover increased by 21% to £27 million and fee income, which now
represents 67% of group costs compared to 60% in 1998 increased by 31% to
£14.2 million.

Investment Management -(Turnover £23.7 million;Operating profit £5.2 million)

BWD Rensburg - increased its managed clients' funds (including PEP and ISA
schemes) by 20% to £2.41 billion.  Fee paying funds under management included
in this figure increased by 30% to £1.15 billion. In line with industry
experience sales of ISAs were disappointing in the early part of the year but
have improved in the last quarter.  These figures exclude funds taken on with
the Nicholson Barber acquisition.

Nicholson Barber is a regional investment management and stockbroking business
with offices in Chesterfield, Derby, Doncaster and Sheffield and was acquired
for a maximum total consideration of £8.79 million.  The Nicholson Barber
business has a reputation for supplying quality independent financial advice
to both private and corporate clients and at the time of acquisition had
advisory funds of approximately £700 million.

The acquisition will strengthen our position as a leading UK regional
investment management group and I am pleased to be able to report that the
integration of the business into BWD Rensburg is proceeding well.

Unit Trust Managers - doubled funds under management for the third year
running to £203 million.  Our fund managers received individual industry
performance awards and consistency of performance was recognised by two group
awards from 'Micropal'.

A new unit trust was launched in July 1999 to invest in mid-cap stocks which
by the end of the year was valued at £14 million.  We are continuing to invest
in this increasingly important part of our group activities and plan to
further develop the product range through the formation of an open ended
investment company (OEIC) during 2000.

Capital for Companies - successfully launched BWD Aim VCT plc, a £12 million
managed venture capital trust specialising in companies traded on the
Alternative Investment Market.  This VCT is currently raising a further £9
million, which, if achieved, will increase funds managed by Capital for
Companies to £40 million.

Both VCTs are listed on the London Stock Exchange and have provided valuable
income and capital gains tax benefits for subscribers as well as above average
investment returns.

Administration Services -(Turnover £3.3 million;Operating profit £0.4 million)

Northern Registrars - continues to attract new business and acts as registrar
to 200 companies which are either fully listed or on the AIM market.  The
Company acquired the KPMG registration business in August 1999 and this has
now been successfully integrated. 

Current developments include the design of systems to administer the All
Employee Share Scheme proposed by the current Government.  The Company has
benefited from the high levels of share transfer and corporate event activity
during the year.

Northern Administration -  has now fully developed its integrated collective
investment scheme system which provides valuation, accounting, registration
and settlement functions for its unit trust customers.  Following a study
during the year we strengthened the management and financial controls. These
consultancy costs have been written off and as a result the company is well
placed to benefit from the demand for administration services as collective
investment schemes continue to grow.

I have referred in my previous reports to our continued investment in people,
systems, and working environment.  During the year we extended and refurbished
our freehold property at Woodsome Park, Huddersfield at a cost of £1.2
million.  The property is now occupied by our Administration Services
businesses together with our group accounting and human resources departments.
 We are also currently re-locating our two Sheffield businesses to new

Since the year end, we have seen that the positive trends established in 1999
are continuing into the current financial year.  This, together with a full
year's contribution from last year's acquisitions provides us with real
confidence for the future.

You will have noted that Peter Stanley is retiring as Chairman at the AGM and
I would like to thank him for his friendship, guidance and advice over the
past five years.  I would also like to thank my fellow Directors and the
group's employees for their efforts and achievements. Without the wholehearted
commitment and enthusiasm of our people and their willingness to change and
adapt as our business develops these excellent results could not happen.

Michael Burns
8 February 2000

Consolidated Profit and Loss Account
For the year ended 30 November 1999

                                               Note       1999         1998
                                                         £'000        £'000


Continuing operations                                   26,600       22,340

Acquisitions                                               360            -
                                                        ______       ______
                                                        26,960       22,340

Administrative expenses                                (21,341)     (17,948)
                                                        ______       ______
Operating profit

Continuing operations                                    5,530        4,392

Acquisitions                                                89            -
                                                        ______       ______

                                                         5,619        4,392

Interest receivable                                        991        1,042
                                                        ______       ______

Profit on ordinary activities before taxation            6,610        5,434

Tax on profit on ordinary activities               1    (1,527)      (1,759)

Profit on ordinary activities after taxation             5,083        3,675

Dividends                                          2    (2,853)      (2,274)

Retained profit for the year                             2,230        1,401

Earnings per share         - Basic                 3     26.7p        19.2p

                           - Diluted               3     25.8p        18.8p

Consolidated Balance Sheet
30 November 1999

                                                             1999       1998
                                                            £'000      £'000

Fixed Assets        

Intangible assets                                          9,151          -

Tangible assets                                            5,606       5,662

Investments                                                  514         594
                                                           _____       _____  
                                                          15,271       6,256
                                                          ______       _____
Current Assets

Debtors                                                   41,939      21,510

Investments                                                1,162           -

Cash at bank and in hand                                  12,514      10,106
                                                          ______      ______

                                                          55,615      31,616
Amount falling due within one year                       (51,253)    (26,436)
                                                           _____       _____

Net Current Assets                                         4,362       5,180  
                                                           _____       _____  
Total Assets Less Current Liabilities                     19,633      11,436


Amounts falling due after more than one year              (3,529)          -

Provisions for Liabilities and Charges                      (244)       (320)
                                                           _____       _____

Net Assets                                                15,860      11,116
                                                          ______      ______
Capital and Reserves                     

Called up share capital                                    2,027       1,927

Share premium account                                      5,671       1,679

Capital redemption reserve                                   100         100  
Revaluation reserve                                          275         275

Other reserves                                               154         154

Profit and loss account                                    7,633       6,981
                                                          ______      ______

Equity Shareholders' Funds                                15,860      11,116
                                                          ______      ______

Consolidated Cash Flow Statement
For the year ended 30 November 1999

                                                              1999       1998
                                                  Note       £'000      £'000

Net cash inflows from operating  
activities                                        (a)       7,340       5,316

Returns on investment and servicing of finance

Interest received                                           1,053         918

Taxation paid                                              (1,780)     (1,248)

Capital expenditure and financial investment

Purchase of tangible fixed assets                          (1,824)     (1,231)

Purchase of fixed asset investments                          (204)       (787)

Proceeds from sale of tangible fixed assets                    96         228

Proceeds from sale of fixed assets investments                 38           - 
Acquisitions and disposals

Purchase of subsidiary undertakings                        (2,500)          -

Net cash acquired with subsidiary undertakings                454           -

Equity dividends paid                                      (2,471)     (1,675)
                                                           ______       _____

Cash inflow before financing                                  202       1,521


Issue of ordinary share capital                               432         264

Purchase of own shares                                          -      (1,210)
                                                            _____       _____
Increase in cash in the year                        (b)       634         575
                                                           ______       _____

Notes to the consolidated cash flow statement

(a)  Reconciliation of operating profit to operating cash flows       
                                                              1999       1998
                                                             £'000      £'000

Operating profit                                             5,619      4,392

Depreciation charges                                           825        745

Amortisation of goodwill                                        48          -

Profit on disposal of tangible fixed assets                    (62)       (87)

Shares subject to grant of a nil cost option                   257        274

Decrease in provisions                                         (76)      (125)

Increase in debtors                                        (20,992)    (7,486)

Increase in creditors                                       21,721      7,603
                                                            ______      _____

Net cash inflow from operating activities                    7,340      5,316 
                                                            ______     ______
(b) Analysis and reconciliation of net funds

                       At      Cash  Acquisitions*     Other               At
               1 December      Flow                 non-cash      30 November
                     1998                            changes             1999 
                    £'000      £'000        £'000      £'000            £'000

Cash in hand,       10,106     2,408           -          -            12,514 
at bank

Overdrafts               -    (1,774)          -          -            (1,774)

Debt due after one
year                     -        -            -      (3,529)          (3,529)

Debt due within
one year                 -        -         (362)     (1,000)          (1,362)
                    ______      _____       _____     ______           ______
Net funds           10,106        634       (362)     (4,529)           5,849
                    ______      _____       _____     ______           ______

* Excluding cash and overdrafts

                                                              1999       1998
                                                             £'000      £'000

Increase in cash in the year                                   634        575 
Loans acquired with subsidiary                                (362)         - 
Loan notes issued upon acquisition
of subsidiary                                               (4,529)         -
                                                             _____     ______

Movement in net funds in the year                           (4,257)       575 

Net funds at 1 December 1998                                10,106      9,531
                                                            ______      _____

Net funds at 30 November 1999                                5,849     10,106
                                                            ______     ______

Major non-cash transactions

A certain proportion of the consideration for the acquisition of subsidiary
undertakings during the year comprised shares and loan notes.  


1. Corporation tax at 30.33% (1998 31%). The reduction in the effective tax
rate is accounted for by the operation of an employee share scheme which
provides corporation tax relief on the value above the option price of the
shares allotted to employees under the SAYE share option scheme. 

2. The directors are recommending a final dividend of 10p (1998 8.5p), which
together with the interim dividend of 4.5p (1998 3.5p) makes a total dividend
for the year of 14.5p (1998 12p).  The proposed dividend to be paid on 7 April
2000 to shareholders that are on the register at the close of business on 10
March 2000 is calculated on 19,836,975 Ordinary shares.  This excludes 430,000
Ordinary Shares held by the Employee Share Ownership Trust for which all
dividends have been waived.

3. Basic earnings per share is calculated with reference to earnings for
shareholders of £5,083,000 (1998 £3,675,000) and the weighted average number
of shares in issue during the year of 19,046,421 (1998 - 19,128,207).         
Diluted earnings per share is the basic earnings per share, adjusted for the
effect of the conversion into fully paid shares of the weighted average number
of all employee share options outstanding during the year.  The number of
additional shares used for the diluted calculation is 619,096 shares (1998 -
447,566).  All share capital held at 30 November 1999 by the Employee Share
Ownership Trust, for which a nil cost option had not been granted, is excluded
from the calculation of diluted earnings per share.

Auditors Approval

The abridged financial information presented herein is based on the full
accounts of the Group for 1999 on which the auditors have given an unqualified
report.  The full accounts have not yet been filed with the Registrar of

Full Accounts

The full accounts will be posted to shareholders on 23 February 2000 and will
be available at the Company's registered office from this date.


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