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BWD Securities PLC (RBG)

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Thursday 27 June, 2002

BWD Securities PLC

Interim Results

BWD Securities PLC
27 June 2002


                                                                    27 June 2002

                           BWD SECURITIES PLC ('BWD')

              INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MAY 2002


BWD, the Investment Management and Administration Services Group -


Key Points:

  • Profit before tax and goodwill amortisation of £4.5m (2001: £4.4m)

  • Basic earnings per share before goodwill amortisation of 14.1p (2001:
    15.1p)

  • Interim dividend of 6.0p per share (2001: 6.0p)

  • Turnover of £19.7m (2001: £18.6m)

  • Group fee and other recurring income of £12.0m (2001: £10.7m)

  • FTSE All-Share Index down 12% over 12 months to 31 May 2002

  • BWD Rensburg managed client funds increased to £3.8bn (2001: £3.6bn)

  • BWD Rensburg Unit Trusts increased to £325m (2001: £312m)

The above figures include a contribution from the London business acquired in 
July 2001



Mike Burns, Chief Executive of BWD Securities, commented:

'Under difficult circumstances it is pleasing to be able to report such a
resilient level of both profits and earnings and more importantly for the longer
term, a further increase in the proportion of fee and other recurring income to
61% of total income.'


For further information, please contact:

Michael Burns, Chief Executive                          Tel:  0151 227 2030
BWD Securities PLC

Nick Lyon / Jessica Rouleau                             Tel:  020 7796 4133
Hudson Sandler



INTERIM STATEMENT

Financial Results

The difficult market and trading conditions which we experienced in 2001 have
been extended to the first half of this financial year, with a consequent impact
across our businesses.  This challenging operating environment is evidenced by
the 12% fall in the FTSE All-Share Index over the twelve month period to 31 May
2002.

The Group's profit before tax and goodwill amortisation for the six months ended
31 May 2002 was £4.5 million (2001: £4.4 million) on total income of £19.7
million (2001: £18.6 million). Fee and other recurring income increased to
£12.0m (2001: £10.7m). Basic earnings per share before goodwill amortisation was
14.1p (2001: 15.1p).  These results include a contribution from the London based
business which was acquired in the second half of 2001.

Under the difficult circumstances, it is pleasing to be able to report such a
resilient level of both profits and earnings and more importantly for the longer
term, a further increase in the proportion of fee and other recurring income to
61% (2001: 58%) of total income.


Dividend

The Directors have declared an interim dividend of 6.0p (2001: 6.0p) payable on
1 October 2002 to shareholders on the register at 23 August 2002.


Board

On 23 May 2002 the Board announced the appointment of Nick Lane Fox and Robert
Allen as executive directors.  We are confident that both Nick and Robert, who
will continue to work primarily within BWD Rensburg, will make a significant
contribution to the Group's future development.


Operations

BWD Rensburg increased managed clients' funds to £3.8 billion (2001: £3.6
billion).  Fee paying funds included in these figures increased to £1.8 billion
(2001: £1.6 billion).

The integration of the London based business Dennis Murphy Campbell, which was
acquired last summer, has now been successfully completed.   Despite the
deterioration in trading conditions experienced since this acquisition we are
pleased to be able to report that this business is performing most
satisfactorily.

Capital for Companies currently manages a total of £34 million (2001: £43
million).   This includes £32 million (2001: £41 million) on behalf of two
Venture Capital Trusts.

BWD Rensburg Unit Trust Managers increased the value of funds under management
to £325 million (2001: £312 million).  The Aggressive Growth Trust, which was
launched in September 2001, has already reached £22 million and continues to
attract considerable attention resulting from its strong investment performance.

Northern Registrars has continued to gain new clients and now manages in excess
of one million shareholder records.  Additionally, the development of a wider
range of service offerings to both existing and prospective clients is
progressing.  The business has, however, inevitably been affected by the general
reduction in both corporate activity and share transfer volumes experienced over
the period.

Northern Administration currently administers £900 million of collective funds
on behalf of third parties and is actively seeking to widen its client base
further.


Outlook

Whilst acknowledging that there appears no immediate end to the current
conditions, we believe that the continuation of such an environment combined
with the increasing pressure arising from regulation and capital requirements
may result in additional opportunities for the Group to make acquisitions.
Given the increasingly solid foundations upon which the Group's businesses are
based we believe we are well placed for the future and in particular, to benefit
from any improvement in market indices.


Alan Bottomley                                        Michael Burns
Chairman                                              Chief Executive


26 June 2002



Consolidated Profit and Loss Account

                                                         2002              2001            2001
                                                     6 months          6 months       12 months
                                                        ended             ended           ended
                                                       31 May            31 May          30 Nov
                                                        £'000             £'000           £'000
                                          Note

Turnover                                                 19,653            18,579          37,856

    Operating expenses                                  (15,525)          (14,656)        (30,640)

    Goodwill amortisation                                  (450)             (240)           (622)

Total administrative expenses                           (15,975)          (14,896)        (31,262)
                                                        _______           _______         _______

Operating profit                                          3,678             3,683           6,594

Profit on disposal of properties                              -                 -             261

Net interest receivable                                     330               448             885
                                                        _______           _______         _______

Profit on ordinary activities before taxation             4,008              4,131          7,740

Tax on profit on ordinary activities                     (1,399)           (1,359)         (2,615)
                                                        _______           _______         _______

Profit on ordinary activities after taxation              2,609             2,772           5,125

Dividends                                                (1,304)           (1,194)         (3,789)
                                                        _______           _______         _______

Retained profit for the period                            1,305             1,578           1,336
                                                        _______           _______         _______


Earnings per share before goodwill        1
amortisation and profit on disposal
of properties

     -Basic                                                14.1p             15.1p           26.8p

     -Diluted                                              13.9p             14.8p           26.2p

Earnings per share                        1

     -Basic                                                12.1p             13.9p           24.9p

     -Diluted                                              11.8p             13.6p           24.4p


Dividend per share                                          6.0p              6.0p           18.0p


Turnover and operating profit relate entirely to continuing operations.

The Group has no recognised gains and losses other than those included in the
profits above and therefore no separate statement of total recognised gains and
losses is presented.


Consolidated Balance Sheet

                                                            2002            2001             2001
                                                          31 May          31 May           30 Nov
                                                           £'000           £'000            £'000

Fixed assets

Intangible assets                                           15,925           8,429        16,375

Tangible assets                                              6,066           6,237         6,279

Investments                                                    511             769           511
                                                           _______         _______       _______

                                                            22,502          15,435        23,165
                                                           _______         _______       _______

Current assets

Debtors                                                     26,893          31,050        31,318

Investments                                                      -           1,162             -

Cash at bank and in hand                                    22,047          15,309        22,468
                                                           _______         _______       _______

                                                            48,940          47,521        53,786
Creditors

Amounts falling due within one year                        (31,173)        (35,339)      (37,722)
                                                           _______         _______       _______

Net current assets                                          17,767          12,182        16,064
                                                           _______         _______       _______

Total assets less current liabilities                       40,269          27,617        39,229

Creditors

Amounts falling due after more than one year                (8,761)         (6,779)       (9,064)

Provisions for liabilities and charges                        (224)           (232)         (238)

                                                           _______         _______       _______

Net assets                                                  31,284          20,606        29,927
                                                           _______         _______       _______
Capital and reserves

Called up share capital                                      2,208           2,033         2,204

Reserves                                                    29,076          18,573        27,723
                                                           _______         _______       _______

Equity shareholders' funds                                  31,284          20,606        29,927
                                                           _______         _______       _______



Consolidated Cash Flow Statement

                                                                2002             2001             2001
                                                            6 months         6 months        12 months
                                                               ended            ended            ended
                                                              31 May           31 May           30 Nov
                                                               £'000            £'000            £'000
                                           Note

Net cash inflow/(outflow) from
operating activities                          (a)              2,740            (411)        6,946

Returns on investment and servicing of finance

Net interest received                                            673             504           620

Taxation paid                                                 (1,008)         (1,448)       (3,559)

Capital expenditure and financial investment

Purchase of tangible fixed assets                               (377)           (733)       (1,362)

Net proceeds from sale of properties                               -               -         1,423

Proceeds from sale of tangible fixed assets                       93             110           117

Proceeds from sale of fixed asset investments                      -               -            10

Acquisitions and disposals

Purchase of subsidiary undertakings                                -               -        (2,000)

Costs associated with acquisition                                  -               -          (301)

Equity dividends paid                                         (2,594)         (2,387)       (3,582)
                                                             _______         _______       _______

Cash outflow before financing                                   (473)         (4,365)       (1,688)

Financing

Issue of ordinary share capital                                   52               9         5,603

Increase in debt                                                   -           4,000         4,000

Redemption of loan notes                                           -            (711)         (813)
                                                             _______         _______       _______

(Decrease)/increase in cash in the period     (b)               (421)         (1,067)        7,102
                                                             _______         _______       _______

Notes to the Cash Flow Statement

a.  Reconciliation of operating profit to operating cash flows

                                                                 2002           2001          2001
                                                             6 months       6 months     12 months
                                                                ended          ended         ended
                                                               31 May         31 May        30 Nov
                                                                £'000          £'000         £'000

Operating profit                                                3,678          3,683         6,594

Amortisation of goodwill                                           450           240           622

Depreciation                                                       548           536         1,113

Profit on disposal of tangible fixed assets                        (51)          (15)          (12)

Profit on disposal of fixed asset investments                        -             -            (8)

Shares subject to grant of a nil cost option                         -              -          256

Decrease in debtors                                              4,144         5,890         5,912

Decrease in creditors and provisions                            (6,029)      (10,745)       (7,531)
                                                               _______       _______       _______

Net cash inflow/(outflow) from operating activities              2,740          (411)        6,946
                                                               _______       _______       _______

b.  Analysis and reconciliation of net funds
                                            At 1 Dec              Cash         Other     At 31 May
                                                2001             flows       changes          2002
                                               £'000             £'000         £'000         £'000

Cash and deposits                             22,468              (421)            -        22,047

Debt due after one year                       (4,416)                -           416        (4,000)

Debt due within one year                        (750)                -          (416)       (1,166)
                                             _______           _______       _______       _______

Net funds                                     17,302              (421)            -        16,881
                                             _______           _______       _______       _______


                                                                   2002          2001         2001
                                                               6 months      6 months    12 months
                                                                  ended         ended        ended
                                                                 31 May        31 May       30 Nov
                                                                  £'000         £'000        £'000

(Decrease)/increase in cash in the period                         (421)       (1,067)        7,102

Repayment of debt                                                    -           711           813

Loans drawn down                                                     -        (4,000)       (4,000)

Reclassification of deferred consideration                           -             -          2,550
                                                               _______       _______       _______

Movement in net funds in the period                               (421)       (4,356)        6,465

Net funds at beginning of period                                17,302        10,837        10,837
                                                               _______       _______       _______

Net funds at end of period                                      16,881         6,481        17,302
                                                               _______       _______       _______


Notes

1.      Basic earnings per share before goodwill amortisation and profit on
disposal of properties is calculated with reference to earnings for shareholders
of £3,059,000 (May 2001: £3,012,000; Nov 2001: £5,516,000) and the weighted
average number of shares in issue during the period of 21,652,532 (May 2001:
19,892,456; Nov 2001: 20,585,873). Basic earnings per share is calculated with
reference to earnings for shareholders of £2,609,000 (May 2001: £2,772,000; Nov
2001: £5,125,000).

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 period.  The number of
additional shares used for the diluted calculation is 400,656 (May 2001:
472,298; Nov 2001: 443,699).

2.      The information contained in the 30 November 2001 consolidated balance
sheet, profit and loss account and cash flow statement does not constitute full
financial statements and has been extracted from the latest published financial
statements for year ended 30 November 2001, which have been delivered to the
Registrar of Companies.  The report of the auditors on these financial
statements was unqualified.  The consolidated profit and loss accounts and cash
flow statements for the six month periods and the consolidated balance sheets at
31 May 2001 and 31 May 2002 are unaudited.



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