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Quayle Munro Hldgs (QYM)

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Thursday 14 March, 2013

Quayle Munro Hldgs

Half Yearly Report

RNS Number : 9604Z
Quayle Munro Holdings PLC
14 March 2013
 



 

 

 

 

 

 

 

 

 

 

 

 

Quayle Munro Holdings PLC
Interim Report 2012

for the six months ended 31 December 2012

 

Company registration number

SC 72014

 

 

 

 

 

 

Highlights

 

 

·      Credible outcome in difficult market conditions.

 

·      Revenue £4.8m compared with £3.8m in 2011 (restated to exclude the divested Edinburgh operation), an increase of 26%.

 

·      Profit after tax of £0.5m (2011: loss £0.5m).

 

·      Advised on a number of major transactions, including the sale of Wood Mackenzie to Hellman & Friedman. 

 

·      Good current pipeline of potential and mandated work across the business.

 

·      Interim dividend of 11p per share has been declared (2011: 11p per share).

 

·      Net assets of £31.5m (2011: £39.7m).

 

 

 

 

Christopher Kemball, Chairman, commented: "There has been an improvement in our pipeline of potential and mandated assignments in the second half of the financial year; however it continues to be difficult to anticipate the timing of completion of transactions. Although macro-economic conditions continue to be uncertain, we remain positive about the full year outcome. We intend to continue to invest in the development of the business within a framework of tight cost control and a strong balance sheet."

 

 

 

 

 

 

 

 

 

For further information:

Andrew Adams, Chief Executive, Quayle Munro: +44 (0)20 7907 4200

Sandy Fraser, N+1 Singer: +44 (0) 20 7496 3178

Jonny Franklin-Adams, N+1 Singer: +44 (0)20 7496 3000

Chairman and Chief Executive's Statement

 

Results

The first half of our financial year has been characterised by economic and financial uncertainty. However, the Group achieved a resilient performance overall as we continued to benefit from our leading market position in media and technology advisory services and our strong balance sheet.

 

The Group result was ahead of the first six months of last year. Revenues for the period were £4.8m compared with £3.8m (restated to exclude the Edinburgh operation) for the previous period, an increase of 26%.

 

The profit on ordinary activities after taxation for the period was £0.5m compared with a loss of £0.5m, after discontinued operations, for the previous period. The profit after taxation includes a £0.2m share of profit of Quayle Munro Project Finance (see below) and is stated after administrative expenses of £3.8m, comprising salary, overheads, accrued bonus and head office costs (2011: £3.0m restated), and other expenses of £0.5m, comprising long term incentive scheme and deferred bonus costs (2011:  £0.5m restated).

 

Basic earnings per share were 12.1p (2011: loss per share of 11.2p) with fully diluted earnings per share of 12.0p (2011: loss per share of 10.3p).

In September 2012 the disposal of Quayle Munro's non-core Edinburgh-based project advisory business to its senior management team was completed. Quayle Munro Project Finance LLP ("QMPF") was established by the senior management team and Quayle Munro has retained a 30% membership interest in QMPF.  In return for the Group's interest, Quayle Munro provided QMPF with £0.4m in cash for working capital and a loan facility.  From 1 January 2013 the management of QMPF has the right to repurchase up to the whole of the Group's membership interest subject to a minimum 20% IRR being earned by the Group on all capital employed. QMPF contributes to accommodation, finance and compliance costs. As an associate, the Group's investment has been equity accounted within these financial statements. The previous period's statement of comprehensive income has been restated to exclude the discontinued operations which were divested in the second half of 2012.

Board changes

Christopher Kemball joined the Board as Non-Executive Chairman and Peter Norris and David Fitzsimons joined the Board as Non-Executive Directors following the Annual General Meeting on 14 November 2012; Peter Norris is Chairman of the Audit Committee and David Fitzsimons is Chairman of the Remuneration Committee. Ian McLean remains as Senior Independent Director. Simon Woolton, our Chief Operating Officer since 2010, joined the Board at the same time as an Executive Director to take on the additional responsibility of Group Chief Financial Officer. Glen Lewy joined the Board as a Non-Executive Director on 16 January 2013. All the new Directors have a background in developing corporate finance advisory businesses and successful track records in making principal investments.

 

The following Directors resigned on 14 November 2012: Brian Finlayson, Tim Guinness and Nick Lyons. Andrew Tuckey, the previous Chairman, also resigned from the Board but remains with the Group as a senior adviser. The Board would like to record their thanks and appreciation for the service they have all given to the Company.

 

New strategy

The Company has an excellent position in the business to business data analytics and software sector within media and technology, particularly in advising entrepreneurs and financial sponsors on the sale of their businesses. Our strategy is to build out this capability into adjacent sectors including financial technology and marketing and communications by hiring key bankers with strong franchises. We also plan to add two to three additional sectors which have the same characteristics as the media and technology sectors, namely high growth, strong entrepreneurial content, relationship driven, attractive to venture capital and significant M&A activity.

 

As described below, the Group has cash of around £15m and has no borrowings. Our new strategy is gradually to invest this cash, after prudently providing reserves for liquidity and follow-on investments, in high growth unlisted companies with strong management teams, in sectors which we cover on the advisory side and where we have an already strong relationship. A good example of this new investment strategy is our latest investment in MLex Limited ("MLex") which is described in more detail below.

 

 

Advisory business

During the period we advised on a number of completed deals, notably the sale of Wood Mackenzie, the leading content, analytics and consulting business, on behalf of Charterhouse Development Capital to Hellman & Friedman for £1.1 billion in July 2012. We also advised on the sale of: Mekentosj, a developer of academic reference management software, to Springer Science + Business Media; Exclusive Analysis, a provider of political risk intelligence, to IHS Inc.; and Energy Publishing, a leading provider of market news, insight, data and events covering the global thermal and coking coal markets to IHS Inc.

 

Although the level of M&A activity worldwide continues to be very low, we are focussed on the provision of high quality advice to our clients and our pipeline of mandated assignments is strong.

 

Investments

Morris Homes Limited

Morris Homes Limited, in which we have a 22.96% shareholding, has traded satisfactorily in the nine month period to 31 December 2012 with turnover of £89.9m (2011: £101m) and operating profits of £11.9m (2011: £14m). Reservations and visitors to the open sites have been encouraging during the early weeks of the year. As a result of the valuation assessment performed at the period end we have increased the value of our holding by £0.4m.

 

Other investments

At the year end we reported on two new investments in Duvet & Pillow Warehouse Limited and MLex. Both companies are reporting positive progress. Of our other smaller investments, AMG Systems Limited ("AMG") delivered a less buoyant set of results for 2012 than 2011 and we have decreased the valuation of our shareholding by £0.2m. Moneybarn performed satisfactorily during 2012, although trading remains challenging. As a result of the valuation assessment, an impairment charge of £0.06m was taken on Nevis Range Development Company plc ("Nevis Range") which is now fully impaired along with Vascular Flow Technologies Limited ("Vascular"). Nevis Range remains broadly cash neutral and Vascular continues to encounter difficult trading conditions.

 

There has been no change in the fair value of the investments held other than Morris, AMG and Nevis Range.

 

With an already strong position in Europe and the USA, MLex is raising additional equity to expand its service into Brazil and China. Since 31 December 2012, we have committed to invest a further €1.3 million in the business bringing our shareholding to 13.4% of the enlarged equity. MLex was founded five years ago and provides subscription based intelligence, commentary and analysis on the regulatory environment for legal, finance and investment professionals.

 

Net assets and liquidity

The Group continues to hold significant cash resources. These are held on short term deposits with three major UK retail banks.  The Group strategy is to hold cash for working capital and regulatory capital purposes with the remaining cash being held for investment purposes. 

 

The Group balance sheet as at 31 December 2012 shows net assets of £31.5m which is equivalent to 690p per share and this compares with £31.7m and 696p per share as at 30 June 2012 and £39.7m and 870p per share as at 31 December 2011.

 

After payment of the proposed dividends set out below the Group will have cash resources of approximately £14.5m.

 

Dividend

The Directors propose an interim dividend of 11p per share (2011: 11p per share) to be paid on 10 April 2013 to shareholders on the register at the close of business on 22 March 2013.

 

Risks and uncertainties

The Board considers that the principal risks and uncertainties facing the Group are consistent with those disclosed in the Annual Report and Accounts 2012 where a list of the risks and uncertainties can be found on page 13.

 

Remuneration policy

The new Board believes that the existing remuneration schemes are overly complicated and inadequate both to incentivise existing top performers and to attract top quality talent. The Remuneration Committee is accordingly working with advisers to produce a new and simpler scheme which will concentrate on a fair and transparent apportionment of profits between staff bonuses and shareholder dividends and enable senior executives to participate in the future growth of the business by buying equity.

Full details of the new scheme will be sent to shareholders in due course and the appropriate approvals sought.

 

Prospects

There has been an improvement in our pipeline of potential and mandated assignments in the second half of the financial year; however it continues to be difficult to anticipate the timing of completion of transactions. Although macro-economic conditions continue to be uncertain, we remain positive about the full year outcome. We intend to continue to invest in the development of the business within a framework of tight cost control and a strong balance sheet.

 

 

 

 

Christopher Kemball                                          Andrew Adams

 

13 March 2013

Group statement of comprehensive income

For the six months ended 31 December 2012


Notes

Six months

31 December

2012

Unaudited

£'000

Restated

Six months

31 December 2011

Unaudited

£'000

Year

30 June

2012

Audited

£'000

Continuing operations





Revenue


4,778

3,775

5,339

 

Administrative expenses


(3,859)

(3, 029)

(5,433)

 

Impairment of investments held as available-for-sale


(58)

-

-

 

Impairment of goodwill


-

-

(5,815)

 

Gain on sale of available-for-sale investments


-

-

15

 

Exceptional expenses

8

-

-

(198)

 

Other operating expenses


(543)

 (557)

(936)








(4,460)

(3,586)

(12,367)











 

Group operating profit/(loss)


318

189

(7,028)






 

 

Finance income


278

254

524

 

Other finance (costs)/income - pensions


(59)

(74)

47



219

180

571






Share of profit of associate accounted for using the equity method


190

-

-






 

Profit/(Loss) on ordinary activities from continuing operations


727

369

(6,457)






 

Discontinued operations





 

Loss for the period from discontinued operations


-

(759)

(1,614)

 

Profit/(Loss) on ordinary activities before tax


727

(390)

(8,071)






Tax (expense)/credit


(233)

(74)

544






 

Profit/(Loss) on ordinary activities after tax


494

(464)

(7,527)






 

Profit/(Loss) attributable to equity holders of the Company


494

(464)

(7,527)

 

Other comprehensive income/(expense)





 

Gain on valuation of available-for-sale financial assets


125

300

190

 

Actuarial loss on defined benefit pension scheme


(23)

(631)

(846)






 

Total comprehensive income/(expense) for the period attributable to equity holders of the Company


596

(795)

(8,183)


























Earnings per share





 

Basic earnings/(losses) per share

10

12.1p

(11.2)p

(183.4)p

 

Diluted earnings/(losses)  per share

10

12.0p

(10.3)p

(169.3)p






Group statement of financial position

As at 31 December 2012


Notes

31 December

2012

Unaudited

£'000

31 December

2011

Unaudited

£'000

30 June

2012

Audited

£'000

Non-current assets





 

Property, plant and equipment


338

686

388

 

Intangible assets

5

5,815

11,630

5,815

 

Financial assets

6

11,018

10,370

10,925

 

Investments in associate accounted for using the equity method

7

565

-

-

 

Defined benefit pension scheme surplus


95

156

109

 

Deferred tax asset


110

-

110



17,941

22,842

17,347






Current assets





 

Trade and other receivables


1,347

3,186

1,642

 

Current tax asset


669

62

690

 

Cash and short-term deposits


14,998

16,171

14,932



17,014

19,419

17,264






Total assets


34,955

42,261

34,611











Current liabilities





 

Trade and other payables


2,192

1,585

1,311

 

Current tax liabilities


72

-

Provisions


-

654








2,489

1,657

1,965






Non-current liabilities





 

Long-term payables


681

859

583

 

Deferred tax liabilities


-

50

-

 

Long-term provisions


298

-

302



979

909

885

 

 

Total liabilities


3,468

2,566

2,850











 

Net assets


31,487

39,695

31,761











Capital and reserves





 

Equity share capital


11,145

11,145

11,145

 

Revaluation reserve


9,631

9,603

9,493

 

Other reserves


2,969

2,963

2,895

 

Retained earnings


7,742

15,984

8,228






 

Total equity


31,487

39,695

31,761






 

These interim financial statements were approved by the Board of Directors on 13 March 2013 and signed on their behalf by:

Christopher Kemball

Chairman

Group statement of changes in equity

For the six months ended 31 December 2012

 

 

Equity

share

capital

£'000

Revaluation

reserve

£'000

Capital

redemption

reserve

£'000

Merger

reserve

£'000

Share option expense reserve
£'000

Own shares reserve
£'000

Total

other

reserves

£'000

Retained

earnings

£'000

Total equity and

reserves

£'000

Balance at 30 June 2011 (audited)

11,145

9,303  

155

1,229

4,452

(2,883)

2,953

18,037

41,438

Comprehensive income










Loss for the period

-

-

-

-

-

-

-

(464)

(464)

Gain on revaluation of investments

-

300

-

-

-

-

-

-

300

Actuarial loss on defined benefit
pension scheme

-

-

-

-

-

-

-

(631)

(631)

Total comprehensive income

-

300

-

-

-

-

-

(1,095)

(795)

Transactions with owners










Share-based payments

-

-

-

-

342

-

342

-

342

Transfer between reserves

-

-

-

-

(312)

-

(312)

-

         (312)

Movement of shares in Employee
Benefit Trust

-

-

-

-

-

(20)

(20)

 

-

(20)

Equity dividends paid

-

-

-

-

-

-

-

(958)

(958)

Balance at 31 December 2011
(unaudited)

11,145

9,603

155

1,229

4,482

(2,903)

2,963

15,984

39,695

Comprehensive income










Loss for the period

-

-

-

-

-

-

-

(7,063)

(7,063)

Loss on revaluation of investments

-

(110)

-

-

-

-

-

-

(110)

Actuarial loss on defined benefit
pension scheme

-

-

-

-

-

-

-

(215)

(215)

Total comprehensive income

-

(110)

-

-

-

-

-

(7,278)

(7,388)

Transactions with owners










Share-based payments

-

-

-

-

332

-

332

-

332

Movement of shares in Employee
Benefit Trust

-

-

-

-

-

(400)

(400)

-

(400)

Equity dividends paid

-

-

-

-

-

-

-

(478)

(478)

Balance at 30 June 2012 (audited)

11,145

9,493

155

1,229

4,814

(3,303)

2,895

8,228

31,761

Comprehensive income










Profit for the period

-

-

-

-

-

-

-

494

494

Gain on revaluation of investments

-

125

-

-

-

-

-

-

125

Actuarial loss on defined benefit
pension scheme

-

-

-

-

-

-

-

(23)

(23)

Total comprehensive income

-

125

-

-

-

-

-

471

596

Reclassification of previous impairment

-

13

-

-

-

-

-

-

13

Transactions with owners










Share-based payments

-

-

-

-

161

-

161

-

161

Transfer between reserves

-

-

-

-

(428)

428

-

-

-

Movement of shares in Employee
Benefit Trust

-

-

-

-

-

(87)

(87)

-

(87)

Equity dividends paid

-

-

-

-

-

-

-

(957)

(957)

Balance at 31 December 2012            (unaudited)

11,145

9,631

155

1,229

4,547

(2,962)

2,969

7,742

31,487

Group statement of cash flows

For the six months ended 31 December 2012


Six months
31 December 2012
Unaudited
£'000

Six months
31 December 2011
Unaudited
£'000

Year
30 June 2012

Audited
£'000

Operating activities




Profit/(Loss) before tax

727

(390)

(8,071)





Adjustments to reconcile profit/(loss) before tax
to net cash flow from operating activities




Finance income

(278)

(254)

(524)

Depreciation

58

76

161

Share of profit of associate

(190)

-

-

Share-based payments

161

388

572

Loss on disposal of plant and equipment

-

10

10

Gains on disposals of financial assets

-

-

(15)

Impairment of financial assets

58

-

-

Impairment of goodwill

-

-

5,815

Movement in pensions

42

(2)

(51)

Decrease in assets

295

2,385

3,929

Increase/(Decrease) in liabilities

385

(2,270)

(1,547)

Cash generated from/(used in) operations

1,258

(57)

279

Income taxes received/(paid)

21

(461)

(691)

Net cash flow generated from/(used in) operating activities

1,279

(518)

(412)





Investing activities




Finance income received

142

204

392

Proceeds from sales of available-for-sale financial assets

-

-

16

Proceeds from sales of plant and equipment

-

2

2

Payments to acquire plant and equipment

(8)

(33)

(38)

Payments to acquire available-for-sale financial assets

(13)

-

(666)

Payments to acquire associates

(375)

-

-

Net cash flow (used in)/generated from investing activities

(254)

173

(294)





Financing activities




Dividends paid to equity shareholders of the parent

(957)

(958)

(1,436)

Own shares purchased

(2)

(20)

(420)

Net cash flow used in financing activities

(959)

(978)

(1,856)





Increase/(Decrease) in cash and cash equivalents

66

(1,323)

(2,562)

Cash and cash equivalents at the beginning of the period

14,932

17,494

17,494

Cash and cash equivalents at the end of the period

14,998

16,171

14,932

Notes

 

 

1. Basis of preparation

 

Quayle Munro Holdings PLC ("the Company") is registered in Scotland. This interim report contains the condensed financial information of the Company and its subsidiaries (together "the Group") for the six month period ended 31 December 2012.

 

The annual consolidated financial statements are prepared in accordance with all relevant International Financial Reporting Standards ("IFRSs") adopted for use in the European Union. The interim condensed financial information complies with the requirements of IAS 34 "Interim Financial Reporting".

 

The comparative period ended 31 December 2011 has been restated to exclude the discontinued Edinburgh operation.

 

The Group has adopted the following new and amended IFRSs as of 1 July 2012.

 

New and amended standards and interpretations

 

International Accounting Standards (IAS / IFRSs)      

 

Effective date

IAS 1

Amendment 'Financial statement presentation' regarding other comprehensive income

1 July 2012

   

The adoption of these standards has had no material impact on the interim financial information.

 

IASB and IFRIC have issued the following standards and interpretations with an effective date after the date on these financial statements:

 

International Accounting Standards (IAS / IFRSs)      

 

Effective date

IFRS 7

Amendment 'Financial instruments: Disclosures' on offsetting financial assets and financial liabilities

1 January 2013

IFRS 13

'Fair value measurement'

1 January 2013

IAS 12

Amendment 'Income taxes' on deferred tax

1 January 2013

IAS 19

Amendment 'Employee benefits'

1 January 2013

IFRS 10

'Consolidated financial statements'

1 January 2014

IFRS 11

'Joint arrangements'

1 January 2014

IFRS 12

'Disclosures of interests in other entities'

1 January 2014

IAS 27 (revised 2011)

'Separate financial statements'

1 January 2014

IAS 32

Amendment 'Financial instruments: Presentation' on offsetting financial assets and financial liabilities

1 January 2014

IFRS 9

'Financial instruments' on 'classification and measurement' of financial assets

1 January 2015

 

 

The Directors consider that seasonality does not affect the business' results or operations.

 

The Group has considerable financial resources and no external debt and the Directors therefore consider it appropriate to continue to use the going concern basis of preparation.

 

 

2. Accounting policies

 

The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 30 June 2012.

 

Available-for-sale financial assets

If an available-for-sale asset is impaired, an amount comprising the difference between its cost (net of any principal payment and amortisation) and its fair value is transferred from equity to the statement of comprehensive income. Reversals in respect of equity instruments classified as available-for-sale are not recognised in the statement of comprehensive income.

 

3. Segment information

 

Management has determined the operating segments based on the reports reviewed by the executive management team and the Board (the Chief Operating Decision Maker) that are used to make strategic decisions. The Group is managed primarily by class of business and presents the segmental analysis on that basis. The Group's activities are organised in two primary divisions: Advisory Business, and Other (Head Office).

 

The following tables present revenue, expenditure and certain asset information regarding the Group's business segments for the six month period ended 31 December 2012 and the six month period ended 31 December 2011.

 

 

Period ended 31 December 2012

Advisory Business

£'000

Other
£'000

Total
£'000

Continuing operations




Revenue

4,735

43

4,778





Overheads

(4,084)

(318)

(4,402)

Operating profit/(loss)

651

(275)

376

Impairment of investments held as available-for-sale

-

(58)

(58)

Share of profit of associate

-

190

190

Finance income

-

278

278

Finance costs

-

(59)

(59)

Group profit before tax

651

76

727





Total assets

2,935

32,020

34,955





Total liabilities

(3,250)

(218)

(3,468)

Total assets includes:

 




Additions to non-current assets

 

8

388

396





 

Period ended 31 December 2011




Continuing operations




Revenue

3,775

-

3,775





Overheads

(3,344)

(242)

(3,586)

Operating profit/(loss)

431

(242)

189

Finance income

-

254

254

Finance costs

-

(74)

(74)

Discontinued operations




Loss for the period from discontinued operations

(759)

-

(759)

Group loss before tax

(328)

(62)

(390)





Total assets

4,028

38,233

42,261





Total liabilities

(2,461)

(105)

(2,566)

Total assets includes:

 




Additions to non-current assets

 

33

 

-

33

 

 

All revenues are external.

4. Principal financial risks

 

Interest rate risk

The Group's cash balances are held in accounts that bear interest directly related to the bank base rate. As the Group does not hold any external debt, the downside interest rate risk is considered minimal.

 

Credit risk

There are no significant concentrations of credit risk within the Group. The Group has established procedures to minimise the risk of default by trade receivables including detailed client adoption checks. Historically, these procedures have proved effective in minimising the level of impaired and past due receivables.

 

Liquidity risk

Liquidity risk reflects the risk that the Group will have insufficient resources to meet its financial obligations as they fall due. The Group's strategy to managing liquidity risk is to ensure that the Group has sufficient liquid funds to meet all its potential liabilities as they fall due, including anticipated shareholder distributions. Risk is mitigated by maintaining significant cash balances. The Group did not carry any borrowings at 31 December 2012.

 

Equity price risk

The Group holds a portfolio of unlisted investments. These are subject to a valuation assessment at each reporting period and accordingly the value attributed to each investment may fluctuate. The investment portfolio is reviewed on a regular basis by the Board and each investment is monitored by Management, including attendance at investee Board meetings where appropriate.

 

 

5. Intangible assets

 

Intangible assets relate to goodwill arising on the acquisition of New Boathouse Capital Limited in 2007 and The van Tulleken Company Limited in 2008. At 30 June 2012 an impairment charge of £5.8m was taken to the statement of comprehensive income. Goodwill is assessed bi-annually for impairment.

 

 

6. Financial assets

 

Available-for-sale financial assets consist of investments in ordinary shares and loan stock which have no fixed maturity date.

 

 

7. Investments in associates

 

On 19 September 2012 Quayle Munro Holdings PLC disposed of its Edinburgh-based advisory business to the latter's senior management team. Quayle Munro retained a 30% membership interest in the newly formed Quayle Munro Project Finance LLP ("QMPF"). In return for the Group's interest, Quayle Munro provided QMPF with £0.4m in cash for working capital. From 1 January 2013 the management of QMPF has the right to repurchase up to 100% of the Group's membership interest subject to a minimum 20% IRR being earned by the Group on all capital employed.

 

 

8. Exceptional expenses

 

Exceptional expenses incurred during the prior year totalled £0.2m. These related to redundancy costs.

 

 

9. Dividends paid and proposed

 

The interim dividend of 11p per share (2011: 11p per share) will be paid on 10 April 2013 to members on the register at 22 March 2013 and will absorb £0.5m of shareholders' funds.

 

The final dividend in relation to the year ended 30 June 2012 of 22p per share was paid in the period. This absorbed £1m of shareholders' funds.

 

 

10. Key performance indicators

 

Earnings per share

The calculation of basic earnings per share for the six months to 31 December 2012 is based on profits after tax of £0.5m (2011 - losses £0.5m) and on 4.2m ordinary shares, being the weighted average number of shares in issue during the period (2011 - 4.1m).

 

The calculation of fully diluted earnings per share is based on the weighted average of 4.1m ordinary shares (2011 - 4.5m) and the average share price during the period.

 

Net assets per share

The net assets per share are based on 4.6m ordinary shares in issue as at 31 December 2012 (30 June 2012 - 4.6m,
31 December 2011 - 4.6m).

 

 

11. Related party transactions

There have been no changes to the nature and substance of related party transactions as disclosed in note 31 of the June 2012 Group accounts, other than in relation to the provision of management services to the new associate investment, QMPF.

 

 

12. Financial information

 

The financial information contained in this interim statement does not constitute statutory accounts as defined in section 434 of The Companies Act 2006.

   

The results for the six months ended 31 December 2012 and 31 December 2011 are unaudited; however a review opinion made under ISRE 2410 has been issued by PricewaterhouseCoopers LLP. Our auditors, PricewaterhouseCoopers LLP, have audited the annual financial statements for the year ended 30 June 2012 and their report was unqualified and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The Group's consolidated statutory accounts for the year ended 30 June 2012 have been filed with the Registrar of Companies.

 

 

13. Shareholder information

 

This report will be circulated to all shareholders, and copies will be available from the Company Secretary at 102 West Port, Edinburgh EH3 9DN and from the Company's website www.quaylemunro.com.

 

 

 

 

 

 

 

 

Independent review report

To the members of Quayle Munro Holdings PLC

 

 

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2012, which comprises the Group statement of comprehensive income, the Group statement of financial position, the Group statement of changes in equity, the Group statement of cash flows and related notes. 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.

 

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 AIM Rules for Companies which require that the financial information must be presented and prepared in a form consistent with that which will be adopted in the company's annual financial statements.

 

As disclosed in note 1, the annual financial statements of the Group 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. This report, including the conclusion, has been prepared for and only for the company for the purpose of the AIMRules for Companies and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

 

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 enquiries, 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 six months ended 31 December 2012 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the AIM Rules for Companies.

 

 

 

 

 

PricewaterhouseCoopers LLP

Chartered Accountants

Edinburgh

13 March 2013

 

 

Notes:

(a) The maintenance and integrity of the Quayle Munro Holdings PLC website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

(b) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

 


This information is provided by RNS
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