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Rensburg Sheppards (RBG)

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Wednesday 14 November, 2007

Rensburg Sheppards

Interim Results

Rensburg Sheppards plc
14 November 2007




                                                                14 November 2007


                             Rensburg Sheppards plc
                     ('Rensburg Sheppards' or 'the company')
                          Half-Yearly Financial Report


Rensburg Sheppards, the investment management group, today announces its
half-yearly results for the six months ended 30 September 2007



Key points:

  • Profit before tax of £15.0 million (2006: £10.2 million).

  • Adjusted* profit before tax of £20.1 million (2006: £15.3 million).

  • Basic earnings per share of 23.9p (2006: 14.4p).

  • Adjusted* basic earnings per share of 31.7p (2006: 24.2p).

  • Interim dividend of 8.5p per ordinary share (2006: 7.5p)

  • Group funds under management at 30 September 2007 of £14.41 billion (2006:
    £13.28 billion).


  * Before amortisation of the client relationships intangible asset and share-
    based charges relating to the Employee Benefit Trust ('EBT'). These items 
    amount to a net charge before tax of £5.1 million (2006: £5.1 million) and a 
    net charge after tax of £3.4 million (2006: £4.3 million).



Steve Elliott, Chief Executive of Rensburg Sheppards, commented:

"I am pleased to report significant progress across the business. Our strong
position in the growing wealth management market means that despite the current
market volatility, I believe the group is well positioned for the future"

An analysts meeting will be held today at 9.30 am at the offices of Hudson
Sandler, 29 Cloth Fair, London, EC1A 7NN.


For further information, please contact:

Steve Elliott, Chief Executive                        Tel:  020 7597 1234
Rensburg Sheppards plc

Nick Lyon / James White
Hudson Sandler                                        Tel:  020 7796 4133






Interim Management Report

Financial results and dividend

Over the six months ended 30 September 2007 the UK financial markets experienced
quite varying conditions. During the first three months, the markets continued
to rise. There then followed a period of quite challenging conditions, with
marked volatility in the markets brought about by the 'sub-prime' crisis, which
originated in the United States. Given such an operating environment, it is
pleasing to be able to report a significant improvement in the group's financial
performance for the six months ended 30 September 2007.

From revenue (net of fees and commissions payable) of £61.4 million (2006: £53.6
million), the group's profit before tax was £15.0 million (2006: £10.2 million).
After removing charges totalling £5.1 million (2006: £5.1 million) in respect
of the amortisation of the client relationships intangible asset and share-based
charges relating to the Employee Benefit Trust associated with the acquisition
of Carr Sheppards Crosthwaite ('CSC'), the resulting adjusted profit before tax
increased to £20.1 million (2006: £15.3 million).  It is the directors' opinion
that this adjusted measure of profit before tax and that of earnings given below
represent better measures of the group's underlying financial performance.

Basic earnings per share were 23.9p (2006: 14.4p) and on the basis of adjusting
for the items detailed in the above paragraph, together with the associated tax
consequences of these adjustments, the adjusted basic earnings per share were
31.7p (2006: 24.2p). The positive effect on basic (unadjusted) earnings per
share resulting from the reduction in the rate of corporation tax, effective
from 1 April 2008, is set out in note 7 of the condensed financial statements.

The directors have declared an interim dividend of 8.5p (2006: 7.5p) per
ordinary share payable on 1 February 2008 to all shareholders on the register at
the close of business on 4 January 2008.

As previously reported, on 8 May 2007, £10 million of the group's total
subordinated debt of £60 million was repaid ahead of schedule. Of the group's
total debt now outstanding of £50 million, £45 million is at a fixed rate of
interest of 7.155% per annum.

Rensburg Sheppards Investment Management ('RSIM')

Discretionary funds under management were £8.79 billion (2006: £7.92 billion) an
increase of 11.0% over the year; non-discretionary funds under management were
£3.85 billion (2006: £3.98 billion) a decrease of 3.3%. This gave total funds
under management at 30 September 2007 of £12.64 billion (2006: £11.90 billion),
an increase over the year of 6.2% compared with the increase of 5.7% over the
corresponding period in the FTSE/APCIMS Private Investors Balanced Index. Of
these total funds, 69.5% are operated on a discretionary basis, a welcome
increase over the prior year comparative of 66.6%.

For the half-year 73.4% of RSIM's net revenue was recurring in nature, this
compares favourably with the 70.7% achieved for the six months ended 30
September 2006.

Rensburg Fund Management ('RFM')

RFM increased the value of its retail unit trust based funds under management by
30.1% to £1.34 billion (2006: £1.03 billion).  The total value of the two
segregated mandates that are investment managed by RFM have increased to £432
million (2006: £348 million), bringing RFM's total funds under management at 30
September 2007 to £1.77 billion (2006: £1.38 billion).

Group funds under management

The group's total funds under management at 30 September 2007 were £14.41
billion (30 September 2006: £13.28 billion) representing an increase of 8.5%
over the year compared with the increase of 5.7% in the FTSE/APCIMS Private
Investors Balanced Index over this time.

People

On 16 October 2007, shortly following the end of the financial period now being
reported on, the board announced a number of changes to its membership, all
taking immediate effect.  David Bulteel and Jon Seal were appointed as executive
directors. David and Jon are both well established divisional investment
directors within RSIM and are in day to day charge of the London and Liverpool
offices respectively.  Ian Maxwell Scott, who was originally due to retire from
the board on reaching 62 years of age in December 2007, has agreed to continue
as an executive director. Finally, Nick Lane Fox who joined the board in May
2002 resigned from the board to pursue business and other personal interests.

Most importantly, we would like to record the board's appreciation to all of the
group's staff for their considerable efforts over the first half of this
financial year, not only in delivering the increased revenues and profits now
being reported, but also for ensuring that the group is ready to meet its
obligations arising from the significant regulatory changes that are taking
place.

Outlook

Since 30 September 2007, the UK financial markets have remained volatile and
such a backdrop is the principal risk and uncertainty faced by the group in the
second half of the financial year. Whilst recognising that this uncertainty does
not assist us in the short-term, we believe our efforts in establishing the
strong platforms now in place from which the development of the group's
businesses can be led, combined with the growing longer-term demand for the
services and products that the group offers, leave us well positioned for the
future.


C.G. Clarke                                              S.M. Elliott
Chairman                                                 Chief Executive


13 November 2007


Consolidated income statement
for the six months ended 30 September 2007

                                                                               2007              2006            2007
                                                                         Six months        Six months            Year
                                                                              ended             ended           ended
                                                                       30 September      30 September        31 March
                                                            Note              £'000             £'000           £'000

Revenue                                                                     67,415            58,050         122,297
Fees and commissions payable                                                (5,970)           (4,456)         (9,360)
Net revenue                                                   2             61,445            53,594         112,937
Share-based payments - EBT                                    3             (2,328)           (2,328)         (4,653)
Amortisation of intangible assets - client relationships                    (2,802)           (2,802)         (5,603)
Other operating expenses                                                   (40,873)          (37,348)        (75,225)
Operating expenses                                                         (46,003)          (42,478)        (85,481)
Operating profit                                                            15,442            11,116          27,456
Finance income                                                               1,466             1,285           2,694
Finance expenses                                              4             (1,903)           (2,236)         (4,483)
Profit before tax                                                           15,005            10,165          25,667
Taxation                                                      5             (4,556)           (3,897)         (9,289)
Profit for the period attributable to the equity holders of                 10,449             6,268          16,378
the company

Earnings per share                                            7

Basic                                                                         23.9p             14.4p           37.5p
Diluted                                                                       23.8p             14.3p           37.4p




Consolidated balance sheet
at 30 September 2007
                                                                                2007              2006            2007
                                                                        30 September      30 September        31 March
                                                            Note               £'000             £'000           £'000

Assets
Non-current assets
Intangible assets                                            8              184,767           190,668         187,601
Property, plant and equipment                                9                5,365             4,569           5,422
Available-for-sale investments                                                2,896             2,349           2,562
Deferred tax assets                                                           1,339             1,977           1,280
                                                                            194,367           199,563         196,865
Current assets
Trade and other receivables                                                 124,349           123,200         130,452
Cash and cash equivalents                                                    51,684            42,047          49,775
                                                                            176,033           165,247         180,227

Total assets                                                                370,400           364,810         377,092

Liabilities
Current liabilities
Trade and other payables                                                   (120,619)         (118,745)       (124,359)
Loan notes                                                                        -              (379)            (72)
Provisions                                                   10                (115)                -            (641)
Current tax liabilities                                                      (6,434)           (3,388)         (4,672)
                                                                           (127,168)         (122,512)       (129,744)

Non-current liabilities
Accruals and deferred income                                                 (1,477)                -            (798)
Subordinated loan                                            11             (50,000)          (60,000)        (60,000)
Provisions                                                   10                (508)           (3,281)           (517)
Deferred tax liabilities                                                    (14,566)          (17,125)        (16,341)
                                                                            (66,551)          (80,406)        (77,656)

Total liabilities                                                          (193,719)         (202,918)       (207,400)

Net assets                                                                  176,681           161,892         169,692


Equity attributable to the equity holders of the company

Share capital                                              12,13              4,822             4,822           4,822
Share premium                                                13              10,610            10,603          10,603
Capital redemption reserve                                   13                 100               100             100
Available-for-sale reserve                                   13               1,509             1,085           1,234
Revaluation reserve                                          13                 980               966             959
Other reserves                                               13             130,601           130,601         130,601
Retained earnings                                            13              28,059            13,715          21,373
Total equity                                                                176,681           161,892         169,692



Consolidated cash flow statement
for the six months ended 30 September 2007
                                                                               2007              2006            2007
                                                                         Six months        Six months            Year
                                                                              ended             ended           ended
                                                                       30 September      30 September        31 March
                                                                              £'000             £'000           £'000

Cash flows from operating activities
Profit before taxation                                                      15,005            10,165          25,667
Adjustments for:
- Amortisation of intangible assets                                          3,107             3,103           6,219
- Finance expenses                                                           1,903             2,236           4,483
- Finance income                                                            (1,466)           (1,285)         (2,694)
- Depreciation                                                                 433               325             672
Share-based payments                                                         2,788             2,359           4,815
Loss on disposal of property, plant & equipment and                              -                 -             102
intangible assets
Decrease in trade and other receivables                                      6,167            44,050          36,901
Decrease in trade payables and provisions                                   (3,327)          (59,435)        (55,116)
Cash generated from operations                                              24,610             1,518          21,049
Interest received                                                            1,346             1,292           2,318
Dividends received                                                              56                  -            280
Interest paid                                                                  (12)              (98)           (221)
Taxation paid                                                               (4,669)           (3,378)         (7,446)
Net cash inflow/(outflow) from operating activities                         21,331              (666)         15,980

Cash flows from investing activities
Purchase of property, plant and equipment                                     (376)             (119)         (1,407)
Purchase of intangible assets - software                                      (273)             (160)           (223)
Net cash outflow from investing activities                                    (649)             (279)         (1,630)

Cash flows from financing activities
Dividends paid to shareholders                                              (6,548)           (5,783)         (9,073)
Proceeds from issue of ordinary share capital                                    7             1,389           1,390
Costs associated with issue of shares                                            -                  -             (1)
Purchase of own shares                                                           -                  -         (1,815)
Redemption of loan notes                                                       (72)             (461)           (768)
Repayment of subordinated loan                                             (10,000)                -               -
Interest paid on subordinated loan                                          (2,160)           (2,111)         (4,266)
Net cash outflow from financing activities                                 (18,773)           (6,966)        (14,533)

Net increase/(decrease) in cash and cash equivalents                         1,909            (7,911)           (183)
Cash and cash equivalents at start of period                                49,775            49,958          49,958
Cash and cash equivalents at end of period                                  51,684            42,047          49,775




Consolidated statement of recognised income and expense
for the six months ended 30 September 2007
                                                                                 2007              2006           2007
                                                                           Six months        Six months           Year
                                                                                ended             ended          ended
                                                                         30 September      30 September       31 March
                                                                                £'000             £'000          £'000
Revaluation of available-for-sale investments
-gain arising from changes in fair value                                         334               161            374
Deferred tax on revaluation of available-for-sale investments
-on gain arising from changes in fair value                                     (100)              (48)          (112)
-movement in deferred tax arising from change of tax rate                         41                 -              -
Deferred tax on revalued property
-movement in deferred tax arising from change of tax rate                         27                 -              -
Net income recognised directly in equity                                         302               113            262
Profit for the period                                                         10,449             6,268         16,378
Total recognised income and expense for the period                            10,751             6,381         16,640



Notes to the condensed financial statements


1. Basis of preparation and statement of compliance

Rensburg Sheppards plc ('the company') is a public company incorporated in the
United Kingdom.  The shares of the company are listed on the London Stock
Exchange.  The consolidated income statement, consolidated balance sheet,
consolidated statement of recognised income and expense, consolidated cash flow
statement and the related notes represent condensed consolidated interim
financial statements of the company and comprise those of the company and its
subsidiaries (together referred to as 'the group'). The condensed consolidated
interim financial statements have been prepared in accordance with International
Financial Reporting Standard IAS 34 Interim Financial Reporting as adopted by
the EU.  They do not include all of the information required for full annual
financial statements and should be read in conjunction with the consolidated
financial statements of the group for the year ended 31 March 2007.  The
accounting policies applied by the group in these condensed consolidated interim
financial statements are the same as those applied by the group in its
consolidated financial statements for the year ended 31 March 2007.

The financial information contained in these condensed consolidated interim
financial statements is unaudited and does not constitute statutory accounts
within the meaning of section 240 of the Companies Act 1985.  The comparative
figures for the year ended 31 March 2007 are not the company's statutory
accounts for that year.  Those accounts have been reported on by the auditor of
the company and delivered to the Registrar of Companies.   The report of the
auditor was (i) unqualified, (ii) did not include a reference to any matters to
which the auditor drew attention by way of emphasis without qualifying its
report and (iii) did not contain a statement under section 237 (2) or (3) of the
Companies Act 1985.

2. Revenue and segmental information

For management purposes, the group is organised into two business segments,
being Investment Management and Fund Management.  These segments represent the
primary reporting segments of the group.

Six months ended 30 September 2007

                                                            Investment             Fund
                                                            Management       Management    Eliminations          Group
                                                                 £'000            £'000           £'000          £'000
Revenue
External                                                       55,870           11,545               -         67,415
Inter-segment                                                     336                -            (336)             -
                                                               56,206           11,545            (336)        67,415
Fees and commissions payable                                   (2,132)          (4,174)            336         (5,970)
Segmental net revenue                                          54,074            7,371               -         61,445

Share-based payments - EBT                                     (2,328)               -               -         (2,328)
Amortisation of intangible assets - client                     (2,802)               -               -         (2,802)
relationships
Other operating expenses                                      (36,394)          (4,479)              -        (40,873)
Segmental expenses                                            (41,524)          (4,479)              -        (46,003)

Segmental operating profit                                     12,550            2,892               -         15,442
Finance income                                                  1,177              289               -          1,466
Finance expenses                                               (1,903)               -               -         (1,903)
Profit before tax                                              11,824            3,181               -         15,005

Segmental net revenue is derived from:
Investment Management services                                 54,074                -               -         54,074
Fund Management services                                            -            6,277               -          6,277
Profit on sale of units of unit trusts                              -            1,094               -          1,094
                                                               54,074            7,371               -         61,445



Six months ended 30 September 2006
                                                             Investment           Fund
                                                             Management     Management      Eliminations          Group
                                                                  £'000          £'000             £'000          £'000
Revenue
External                                                        49,831          8,219                 -         58,050
Inter-segment                                                      272              -              (272)             -
                                                                50,103          8,219              (272)        58,050
Fees and commissions payable                                    (1,907)        (2,821)              272         (4,456)
Segmental net revenue                                           48,196          5,398                 -         53,594

Share-based payments - EBT                                      (2,328)             -                 -         (2,328)
Amortisation of intangible assets - client                      (2,802)             -                 -         (2,802)
relationships
Other operating expenses                                       (33,971)        (3,377)                -        (37,348)
Segmental expenses                                             (39,101)        (3,377)                -        (42,478)

Segmental operating profit                                       9,095          2,021                 -         11,116
Finance income                                                   1,102            183                 -          1,285
Finance expenses                                                (2,236)             -                 -         (2,236)
Profit before tax                                                7,961          2,204                 -         10,165

Segmental net revenue is derived from:
Investment Management services                                  48,196              -                 -         48,196
Fund Management services                                             -          4,518                 -          4,518
Profit on sale of units of unit trusts                               -            880                 -            880
                                                                48,196          5,398                 -         53,594


Year ended 31 March 2007
                                                             Investment           Fund
                                                             Management     Management      Eliminations          Group
                                                                  £'000          £'000             £'000          £'000
Revenue
External                                                       104,602         17,695                 -        122,297
Inter-segment                                                      598              -              (598)             -

                                                               105,200         17,695              (598)       122,297
Fees and commissions payable                                    (3,783)        (6,175)              598         (9,360)
Segmental net revenue                                          101,417         11,520                 -        112,937

Share-based payments - EBT                                      (4,653)             -                 -         (4,653)
Amortisation of intangible assets - client relationships        (5,603)             -                 -         (5,603)
Other operating expenses                                       (68,206)        (7,019)                -        (75,225)
Segmental expenses                                             (78,462)        (7,019)                -        (85,481)

Segmental operating profit                                      22,955          4,501                 -         27,456
Finance income                                                   2,284            410                 -          2,694
Finance expenses                                                (4,483)             -                 -         (4,483)
Profit before tax                                               20,756          4,911                 -         25,667

Segmental net revenue is derived from:
Investment Management services                                 101,417              -                 -        101,417
Fund Management services                                             -          9,822                 -          9,822
Profit on sale of units of unit trusts                               -          1,698                 -          1,698
                                                               101,417         11,520                 -        112,937


3. Share-based payments

The movements during the period in the number of shares in respect of which
awards are outstanding are set out below:
                                                                                                              Employee
                                                                                      SAYE   2007 Employee     Benefit
                                                                                      2006      Share Plan       Trust


Outstanding at 1 April 2007                                                       457,629         202,350   2,548,000
Forfeited                                                                         (14,614)              -           -
Exercised                                                                          (1,021)              -           -
Outstanding at 30 September 2007                                                  441,994         202,350   2,548,000



4. Finance expenses

Finance expenses include interest payable of £1,892,000 relating to the
subordinated loan (September 2006: £2,142,000; March 2007: £4,305,000).


5. Taxation

The tax expense for the six months ended 30 September 2007 has been calculated
using the estimated annual effective rate of tax for the year ending 31 March
2008.  The tax charge recognised in the income statement comprises:

                                                                                  2007             2006           2007
                                                                            Six months       Six months           Year
                                                                                 ended            ended          ended
                                                                          30 September     30 September       31 March
                                                                                 £'000            £'000          £'000

United Kingdom corporation tax                                                  6,431            4,574         10,038
Deferred tax                                                                   (1,875)            (677)          (749)
                                                                                4,556            3,897          9,289



The movement on deferred tax for the six months ended 30 September 2007 includes
a credit of £852,000 (September 2006: nil; March 2007: nil) which has arisen as
a result of the change in the rate of corporation tax from 30% to 28%, effective
from 1 April 2008.


6. Dividend

The interim dividend declared for the six months ended 30 September 2007 of 8.5
pence per share is payable on 1 February 2008 to shareholders on the register as
at the close of business on 4 January 2008.  In accordance with the group's
accounting policies and the requirements of IAS 10 Events after the balance
sheet date this dividend has not been recognised as a liability at 30 September
2007.


7. Earnings per share

Basic earnings per share is calculated with reference to earnings for
shareholders of £10,449,000 (September 2006: £6,268,000; March 2007:
£16,378,000) and the weighted average number of shares in issue during the
period of 43,650,486 (September 2006: 43,632,112; March 2007: 43,723,007).
Adjusted earnings per share before amortisation of the client relationships
intangible asset and share-based payments relating to the EBT is calculated with
reference to earnings for shareholders of £13,841,000 (September 2006:
£10,557,000; March 2007: £24,953,000).

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 267,686 shares (September
2006: 181,929; March 2007: 112,337).

The directors believe that the provision of additional earnings per share
figures, in particular before amortisation of the client relationships
intangible asset and share-based payments relating to the EBT better represent
underlying business performance. The effect of these adjustments on earnings and
basic earnings per share is as follows:


                                       Six months ended             Six months ended                 Year ended
                                      30 September 2007            30 September 2006               31 March 2007
                                    Earnings       Earnings       Earnings       Earnings       Earnings       Earnings
                                                        per                           per                           per
                                                      share                         share                         share
                                       £'000          Pence          £'000          Pence          £'000          Pence



Unadjusted earnings and EPS          10,449           23.9          6,268           14.4         16,378           37.5
Share-based payments - EBT            2,328            5.3          2,328            5.3          4,653           10.6
Amortisation of intangible assets     2,802            6.4          2,802            6.4          5,603           12.8
- client relationships
Tax arising on adjusted items at       (841)          (1.9)          (841)          (1.9)        (1,681)          (3.8)
30%
Effect on tax arising on adjusted      (897)          (2.0)             -              -              -              -
items following change of rate of
taxation
Adjusted earnings and EPS            13,841           31.7         10,557           24.2         24,953           57.1



As set out in note 5 above, the tax expense for the six months ended 30
September 2007 has reduced by £852,000 as a result the movement in deferred tax
relating to the forthcoming change in the rate of corporation tax from 30% to
28%.  This has contributed 2.0 pence per share to the unadjusted basic earnings
per share of 23.9 pence per share for the six months ended 30 September 2007.


8. Intangible assets

The carrying values of intangible assets are as follows:

                                                                                  2007             2006           2007
                                                                          30 September     30 September       31 March
                                                                                 £'000            £'000          £'000

Goodwill                                                                      136,385          136,385        136,385
Client relationships                                                           47,667           53,270         50,469
Software                                                                          715            1,013            747
                                                                              184,767          190,668        187,601


9. Property, plant and equipment

During the six months ended 30 September 2007, the group acquired assets with a
cost of £376,000 (September 2006: £119,000; March 2007: £1,407,000).  No assets
were disposed of during the six months ended 30 September 2007 (September 2006:
nil; March 2007: assets with a carrying value of £88,000 were disposed of,
giving rise to a loss on disposal of £88,000, which was recognised within other
operating expenses).


10. Provisions
                                                     Reorganisation            Onerous         Property
                                                              costs             leases    dilapidations           Total
                                                              £'000              £'000            £'000           £'000
At 1 April 2007
Current liabilities                                            584                 57                -             641
Non-current liabilities                                          -                292              225             517
                                                               584                349              225           1,158

Charged to the income statement                                  -                  -               38              38
Utilised during the period                                    (552)               (21)               -            (573)
At 30 September 2007                                            32                328              263             623



The balances at 30 September 2007 are categorised as follows:

                                                     Reorganisation          Onerous           Property
                                                              costs           Leases      dilapidations           Total
                                                              £'000            £'000              £'000           £'000


Current liabilities                                             32               80                  3             115
Non-current liabilities                                          -              248                260             508
                                                                32              328                263             623


11. Subordinated loan

On 8 May 2007, £10 million of the subordinated loan was repaid ahead of
schedule. This repayment is in respect of the £15 million floating rate element
of the loan and was originally scheduled for repayment in equal annual
instalments commencing on 6 May 2008. No penalty arose from the making of this
prepayment. Under the terms of the loan agreement, this prepayment is to be
applied in chronological order against the future scheduled repayment
obligations of the floating rate portion of the loan. Interest payable on the
loan is calculated on a daily basis, based on the balance of the loan
outstanding; therefore, no further interest expense will be incurred in respect
of the £10 million that has been repaid after the repayment date of 8 May 2007.
The carrying value of the loan of £50 million at 30 September 2007 comprises £45
million on which a fixed rate of interest is payable of 7.155% per annum and £5
million on which a floating rate of interest is payable of 2.25% above LIBOR per
annum.


12. Share capital

During the period, the company issued 1,021 ordinary shares of 10 90/91 pence
each following the exercise of options relating to the group's Savings-Related
Share Option Scheme ('SAYE').  The nominal value of the shares issued was £112
and the total consideration received was £6,739.


13. Reconciliation of changes in shareholders' equity

                                                      Capital Available     Reval-
                                Share      Share   redemption -for-sale     uation       Other    Retained       Total
                              capital    premium      reserve   reserve    reserve    reserves    earnings      equity
                                £'000      £'000        £'000     £'000      £'000       £'000       £'000       £'000


At 31 March 2006               4,760      9,276          100       972        972     130,601      11,103     157,784
Profit after taxation              -          -            -         -          -           -       6,268       6,268
Dividends                          -          -            -         -          -           -      (5,783)     (5,783)
Issue of shares                   62      1,328            -         -          -           -           -       1,390
Share issue costs                  -         (1)           -         -          -           -           -          (1)
Share-based payments               -          -            -         -          -           -       2,359       2,359
Deferred tax on share-based        -          -            -         -          -           -        (238)       (238)
payments
Gain arising on                    -          -            -       161          -           -           -         161
available-for-sale
investments
Deferred tax on                    -          -            -       (48)         -           -           -         (48)
available-for-sale
investments
Depreciation on revalued           -          -            -         -         (6)          -           6           -
property

At 30 September 2006           4,822     10,603          100     1,085        966     130,601      13,715     161,892
Profit after taxation              -          -            -         -          -           -      10,110      10,110
Dividends                          -          -            -         -          -           -      (3,290)     (3,290)
Purchase of own shares by          -          -            -         -          -           -      (1,815)     (1,815)
Employee Share Ownership
Trust
Share-based payments               -          -            -         -          -           -       2,456       2,456
Tax relief on share-based          -          -            -         -          -           -         714         714
payments
Deferred tax on share-based        -          -            -         -          -           -        (524)       (524)
payments
Gain arising on                    -          -            -       213          -           -           -         213
available-for-sale
investments
Deferred tax on                    -          -            -       (64)         -           -           -         (64)
available-for-sale
investments
Depreciation on revalued           -          -            -         -         (7)          -           7           -
property

At 31 March 2007               4,822     10,603          100     1,234        959     130,601      21,373     169,692
Profit after taxation              -          -            -         -          -           -      10,449      10,449
Dividends                          -          -            -         -          -           -      (6,548)     (6,548)
Issue of shares                    -          7            -         -          -           -           -           7
Share-based payments               -          -            -         -          -           -       2,788       2,788
Deferred tax on share-based        -          -            -         -          -           -         (13)        (13)
payments
Gain arising on                    -          -            -       334          -           -           -         334
available-for-sale
investments
Deferred tax on                    -          -            -      (100)         -           -           -        (100)
available-for-sale
investments
Movement in deferred tax           -          -            -        41         27           -           4          72
arising from change of tax
rate
Depreciation on revalued           -          -            -         -         (6)          -           6           -
property
At 30 September 2007           4,822     10,610          100     1,509        980     130,601      28,059     176,681



14. Related party transactions

The directors of the company represent the key management of both the group and
the company and the amounts paid in respect of their services for the latest
full financial year were set out in the Report & Financial Statements for the
year ended 31 March 2007.  The directors of the company include B. Kantor and S.
Koseff, both of whom are also directors of Investec plc.

Investec 1 Limited is an associated company of the group.  The parent company of
Investec 1 Limited is Investec plc.  The transactions set out below have taken
place with Investec plc or its subsidiary companies ('the Investec group')
during the period.

The group has a subordinated loan facility with the Investec group.  The
facility was entered into on 6 May 2005 and had an original value of £60
million.  £10 million of the loan was repaid during the period and details of
this repayment are set out in note 11 above.  The interest charged on the loan
during the period amounted to £1,892,000 (September 2006: £2,142,000; March
2007: £4,305,000) and interest of £1,450,000 was payable at 30 September 2007
(September 2006: £1,710,000; March 2007: £1,718,000).

The group leases premises at 2 Gresham Street London from the Investec group.
The amount payable during the period under the terms of the lease in respect of
rent and service charges amounted to £558,000 (September 2006: £668,000; March
2007: £1,253,000) and no amounts were outstanding at 30 September 2007
(September 2006: nil; March 2007: £321,000).  The Investec group provides the
group with certain infrastructure services under the terms of a three year
agreement, which expires on 6 May 2008.  The amount payable during the period
under the terms of the agreement amounted to £394,000 (September 2006: £338,000;
March 2007: £656,000) and no amounts were outstanding at 30 September 2007
(September 2006: £64,000; March 2007: £127,000).

The Investec group has provided internal audit services to the group during the
period.  The amount payable by the group during the period in respect of these
services amounted to £148,000 (September 2006: £51,000; March 2007: £138,000)
and no amounts were outstanding at 30 September 2007 (September 2006: nil; March
2007: nil).

The group contributes to defined contribution pension schemes on behalf of its
employees and operates a number of share-based payment arrangements for the
purposes of employee remuneration; details of these schemes were set out in the
latest full financial statements for the year ended 31 March 2007.

Directors, and all employees of the group, are eligible to receive investment
management services from the group at discounted staff rates.

Responsibility statement of the directors in respect of the half-yearly
financial report

We confirm that to the best of our knowledge:

  • the condensed set of financial statements has been prepared in accordance
    with IAS 34 Interim Financial Reporting as adopted by the EU;

  • the interim management report includes a fair review of the information
    required by:

    (a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication 
    of important events that have occurred during the first six months of the 
    financial year and their impact on the condensed set of financial 
    statements; and a description of the principal risks and uncertainties for 
    the remaining six months of the year; and


    (b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
    transactions that have taken place in the first six months of the current
    financial year and that have materially affected the financial position or
    performance of the entity during that period; and any changes in the related
    party transactions described in the last annual report that could do so.


By order of the board


P.M. Watts
Company Secretary
13 November 2007



Independent Review Report by KPMG Audit Plc to Rensburg Sheppards 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 30
September 2007 which comprises the consolidated income statement, consolidated
balance sheet, consolidated statement of recognised income and expense,
consolidated cash flow statement and the related explanatory 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.

This report is made solely to the company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Disclosure
and Transparency Rules ('the DTR') of the UK's Financial Services Authority ('
the UK FSA').  Our review has been undertaken so that we might state to the
company those matters we are required to state to it in this report and for no
other purpose.  To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company for our review work, for
this report, or for the conclusions we have reached.


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 DTR of the UK FSA.

As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the EU.  The condensed set of
financial statements included in this half-yearly financial report have been
prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the
EU.


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.


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 UK.  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 30 September 2007 is not prepared, in all
material respects, in accordance with IAS 34 as adopted by the EU and the DTR of
the UK FSA.



KPMG Audit Plc
Chartered Accountants
Leeds
13 November 2007


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