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Rensburg plc (RBG)

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Tuesday 29 June, 2004

Rensburg plc

Interim Results

Rensburg plc
29 June 2004


                                                               29 June 2004
     

                           Rensburg plc ('Rensburg')

              INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MAY 2004


Rensburg, (formerly BWD Securities PLC), the Investment Management Group   -


Key Points:



  • Profit before tax, goodwill amortisation and exceptional items of £4.2m
    (2003: £3.0m), an increase of 40%.


  • Basic earnings per share before goodwill amortisation and exceptional
    items of 13.3p (2003: 9.5p), an increase of 40%.


  • Interim dividend unchanged at 6.0p per share.


  • Fee and other recurring income at £11.7m (2003: £9.4m) an increase of 24%


  • Group funds under management at £3.91bn (2003: £3.51bn) an increase of
    11%.


Mike Burns, Chief Executive of Rensburg, commented:



'It is pleasing to report results which reflect on the marked improvement in
trading conditions over the comparable period in 2003.  The strong capital base
of the Group means we remain well positioned to take advantage of any increase
in acquisition opportunities.'



For further information, please contact:


Mike Burns, Chief Executive                             Tel:  0151 227 2030
Rensburg plc


Nick Lyon                                               Tel:  020 7796 4133
Hudson Sandler



INTERIM STATEMENT


Financial results & dividend


It is pleasing to report results which reflect on the marked improvement in
trading conditions over the comparable period in 2003.  In particular, the
relatively stable environment in the first half of the current year contrasts
sharply with the volatility experienced in the UK financial markets during the
equivalent period of the prior year.


The Group's profit before tax, goodwill amortisation and exceptional items for
the six months ended 31 May 2004 was £4.2 million (2003: £3.0 million), from a
total income of £18.2 million (2003: £16.0 million). Fee and other recurring
income increased to £11.7 million (2003: £10.3 million).  Basic earnings per
share before goodwill amortisation and exceptional items were 13.3p (2003:
9.5p).


Excluding the contribution in the prior first half-year from the Administration
Services division, which was disposed of in February 2003, the total income of
£18.2 million represents an underlying increase of 23% over the prior
corresponding period; more importantly, on this basis, fee and other recurring
income of £11.7 million represents an increase of 24%.


The Directors have declared an unchanged interim dividend of 6.0p payable on 1
October 2004 to shareholders on the register at 20 August 2004.


Name change


Following shareholder approval given at the Company's Annual General Meeting on
30 March 2004, the name of the Company was changed to Rensburg plc on 28 May
2004.  Simultaneously, BWD Rensburg Limited became Rensburg Investment
Management Limited and BWD Rensburg Unit Trust Managers Limited became Rensburg
Fund Management Limited.


Operations


Rensburg Investment Management increased managed clients' funds by 9.8% to £3.46
billion (2003: £3.15 billion).  This compares to an increase in the FTSE /
APCIMS Private Investors Balanced index of 6.9% over the year. Fee-paying funds
included in these figures increased by 20.5% to £1.88 billion (2003: £1.56
billion).


At the beginning of the period, our in-house Self-Invested Personal Pension ('
SIPP') administration system became fully operational and the initial clients
have now moved smoothly onto this new service. This, combined with our financial
planning service, assists in ensuring that we are able to offer our clients an
increasingly comprehensive approach to the management of their wealth.


Mid-way through the period an established team of three institutional sales
traders joined our London office and have settled in well.  The positive changes
announced in the recent Budget with regard to investment in Venture Capital
Trusts ('VCTs') should assist our VCT management division.


Rensburg Fund Management increased the value of funds under management by 26% to
£448 million (2003: £356 million).  As implied by its change of name, this
business is looking to expand its services beyond purely managing unit trusts;
in particular, it is presently seeking opportunities to run segregated mandates.


Outlook


The summer of 2003 was unusually busy, as markets recovered their poise all over
the world.  This year we do not expect further dramatic re-ratings and the
economic and political outlook is more than usually opaque as economies grapple
with increased oil prices, rising interest rates and the troubled Middle Eastern
situation, which all affect investors' confidence.   Nevertheless, the strong
capital base of the Group means we remain well positioned to take advantage of
any increase in acquisition opportunities.


C.G. Clarke                                             M.H. Burns
Chairman                                                Chief Executive


28 June 2004


Consolidated Profit and Loss Account




                                                                         2004          2003           2003
                                                                     6 months      6 months      12 months
                                                                        ended         ended          ended
                                                                       31 May        31 May         30 Nov
                                                                        £'000         £'000          £'000
                                                   Note
Turnover

Continuing operations                                                 18,203        14,787         32,005

Discontinued operations                                                    -         1,245          1,245

                                                                      18,203        16,032         33,250

      Operating expenses                                             (14,692)      (13,475)       (27,555)

      Goodwill amortisation                                             (434)         (482)          (917)

Total administrative expenses                                        (15,126)      (13,957)       (28,472)
                                                                     _______       _______        _______

Operating profit

Continuing operations                                                  3,077         1,966          4,669

Discontinued operations                                                    -           109            109
                                                                     _______       _______        _______

                                                                       3,077         2,075          4,778

Profit on disposal of subsidiaries                                         -        10,472         10,472

Profit on disposal of fixed asset investments                              -             -            390

Net interest receivable                                                  710           451          1,150
                                                                     _______       _______        _______

Profit on ordinary activities before taxation                          3,787        12,998         16,790

Tax on profit on ordinary activities                                  (1,309)         (942)        (1,928)
                                                                     _______       _______        _______

Profit on ordinary activities after taxation                           2,478        12,056         14,862


Dividends                                                             (1,313)       (1,308)        (3,933)
                                                                     _______       _______        _______


Retained profit for the period                                         1,165        10,748         10,929

                                                                     _______       _______        _______


Earnings per share before goodwill               1

amortisation and exceptional items



     -Basic                                                             13.3p          9.5p          22.6p

     -Diluted                                                           13.0p          9.4p          22.1p

Earnings per share                               1



     -Basic                                                             11.3p         55.4p          68.2p

     -Diluted                                                           11.1p         54.6p          66.8p


Dividend per share                                                       6.0p          6.0p          18.0p


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

                                                               2004             2003             2003
                                                             31 May           31 May           30 Nov
                                                              £'000            £'000            £'000
Fixed assets

Intangible assets                                            14,121           14,990           14,555

Tangible assets                                               3,552            3,088            3,267

Investments                                                     500              500              500
                                                            _______          _______          _______

                                                             18,173           18,578           18,322
                                                            _______          _______          _______

Current assets


Debtors                                                      25,705           26,111           23,662

Cash at bank and in hand                                     36,444           32,845           35,420
                                                            _______          _______          _______

                                                             62,149           58,956           59,082
Creditors

Amounts falling due within one year                         (34,546)         (32,486)         (32,108)
                                                            _______          _______          _______

Net current assets                                           27,603           26,470           26,974

                                                            _______          _______          _______

Total assets less current liabilities                        45,776           45,048           45,296

Creditors


Amounts falling due after more than one year                 (2,660)          (3,272)          (3,340)

Provisions for liabilities and charges                          (83)            (103)             (92)

                                                            _______          _______          _______


Net assets                                                   43,033           41,673           41,864

                                                            _______          _______          _______
Capital and reserves


Called up share capital                                       2,208            2,208            2,208

Reserves                                                     40,825           39,465           39,656
                                                            _______          _______          _______

Equity shareholders' funds                                   43,033           41,673           41,864
                                                            _______          _______          _______


Consolidated Cash Flow Statement


                                                                    2004            2003             2003
                                                                6 months        6 months        12 months
                                                                   ended           ended            ended
                                                                  31 May          31 May           30 Nov
                                                                   £'000           £'000            £'000
                                            Note

Net cash inflow from operating

activities                                     (a)                4,268           1,633            6,813

Returns on investment and servicing of finance


Interest received                                                 1,106             570            1,240

Interest paid                                                       (34)           (138)            (313)

Taxation paid                                                    (1,204)         (1,045)          (2,022)


Capital expenditure and financial investment


Purchase of tangible fixed assets                                  (496)           (495)            (817)

Proceeds from sale of tangible fixed assets                           2           1,430            1,432

Proceeds from sale of fixed asset investments                         -                -             390


Acquisitions and disposals


Proceeds from sale of subsidiary undertakings                         -          18,469           18,469

Costs associated with disposal                                        -            (704)            (704)

Cash disposed of with subsidiary undertakings                         -          (1,704)          (1,704)

Equity dividends paid                                            (2,622)         (2,609)          (3,920)

                                                                _______         _______          _______

Cash inflow before financing                                      1,020          15,407           18,864


Financing


Issue of ordinary share capital                                       4               -               10

Decrease in debt                                                      -          (4,000)          (4,000)

Redemption of loan notes                                              -            (180)          (1,072)
                                                                _______         _______          _______


Increase in cash in the period                 (b)                1,024          11,227           13,802

                                                                _______         _______          _______

Notes to the Cash Flow Statement

a.  Reconciliation of operating profit to operating cash flows

                                                                    2004            2003             2003
                                                                6 months        6 months        12 months
                                                                   ended           ended            ended
                                                                  31 May          31 May           30 Nov
                                                                   £'000           £'000            £'000


Operating profit                                                  3,077           2,075            4,778

Amortisation of goodwill                                            434             482              917

Depreciation                                                        211             279              462

Profit on disposal of tangible fixed assets                          (2)             (5)             (47)

(Increase)/decrease in debtors                                   (2,332)           (571)           2,157

Increase/(decrease) in creditors and provisions                   2,880            (627)          (1,454)
                                                                _______         _______          _______

Net cash inflow from operating activities                         4,268           1,633            6,813
                                                                _______         _______          _______

Net cash inflow from operating activities
comprises:

Continuing operations                                             4,268           1,776            6,956

Discontinued operations                                               -            (143)            (143)
                                                                _______         _______          _______

                                                                  4,268           1,633            6,813
                                                                _______         _______          _______

b.  Analysis and reconciliation of net funds
                                                At 1 Dec               Cash        Other        At 31 May
                                                    2003              flows      changes             2004
                                                   £'000              £'000        £'000            £'000


Cash and deposits                                35,420              1,024            -           36,444

Debt due after one year                            (982)                 -          750             (232)

Debt due within one year                           (844)                 -         (750)          (1,594)
                                                _______            _______      _______          _______

Net funds                                        33,594              1,024            -           34,618
                                                _______            _______      _______          _______


                                                                  2004            2003               2003
                                                              6 months        6 months          12 months
                                                                 ended           ended              ended
                                                                31 May 31 May                      30 Nov
                                                                 £'000           £'000              £'000

Increase in cash in the period                                  1,024            11,227           13,802

Repayment of debt                                                   -             4,180            5,072

Issue of loan notes                                                 -            (2,482)          (2,482)
                                                              _______           _______          _______

Movement in net funds in the period                             1,024            12,925           16,392

Net funds at beginning of period                               33,594            17,202           17,202
                                                              _______           _______          _______

Net funds at end of period                                     34,618            30,127           33,594
                                                              _______           _______          _______


Notes



1.  Basic earnings per share before goodwill amortisation and exceptional items
is calculated with reference to earnings for shareholders of £2,912,000 (May
2003: £2,066,000; Nov 2003: £4,917,000) and the weighted average number of
shares in issue during the period of 21,856,987 (May 2003: 21,762,412; Nov 2003:
21,796,791). Basic earnings per share is calculated with reference to earnings
for shareholders of £2,478,000 (May 2003: £12,056,000; Nov 2003: £14,862,000).



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 534,030 (May 2003:
312,992; Nov 2003: 438,568).



2.  The information contained in the 30 November 2003 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 2003, which have been delivered to the
Registrar of Companies.  The report of the auditor 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 2003 and 31 May 2004 are unaudited.






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