Half Yearly Report

RNS Number : 1675D

Associated British Engineering PLC

27 November 2009

 



ASSOCIATED BRITISH ENGINEERING PLC 

INTERIM REPORT

FOR THE SIX MONTHS ENDED

30 SEPTEMBER 2009

ASSOCIATED BRITISH ENGINEERING PLC

INTERIM REPORT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

CONTENTS                                                                                                                                                                                                             Page

Chairman's statement                                                                                                                                                                                                   1

Responsibility statement                                                                                                                                                                                             2

Consolidated income statement                                                                                                                                                                                  3

Consolidated interim balance sheet                                                                                                                                                                            4

Consolidated interim statement of changes in shareholders' equity                                                                                                                      5

Consolidated interim cash flow statement                                                                                                                                                                   6

Notes to the interim report                                                                                                                                                                                          7 - 12

ASSOCIATED BRITISH ENGINEERING PLC

CHAIRMAN'S STATEMENT 

INTERIM REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

SUMMARY OF RESULTS
	Six months to 30 September 2009 £'000	Six Months to 30 September 2008 £'000	Year to  31 March 2009 £'000
Revenue	1,406	1,579	3,597
(Loss)/Profit before Tax	(43)	(359)	549
(Loss)/Earnings per Share
Basic	(3p)	(27p)	39p
Diluted	(3p)	(27p)	39p

The result for the six month period to 30th September 2009 is a pre tax loss of £43,000. This is a decline in the performance of the Group. The result is mainly due to the disappointing start to the trading year at our only operating subsidiary, British Polar Engines Limited ('BPE') which has experienced a slowing in orders as the recession makes customers increasingly cautious. 

The result for BPE in the period is distorted by a one-off £83,000 negative stock adjustment. The Board are confident that having comprehensively reviewed the stock position at BPE that there will be no requirement for further stock adjustments in the near future

Ignoring the impact of the stock provision on the result for the six months, the loss before tax of £43,000 would have been a small profit of £40,000 (Sep 2008: profit of £91,000 ignoring pension payments). This is not a satisfactory position. After taking account of the outstanding dividends on the two classes of Preference Share in issue, being £26,000 for the period, this would reduce the profit without adjustment for stock to a lowly £14,000; The cumulative outstanding Preference Share dividends now stand at £490,000 (Sep 2008: £438,000).

It is with some relief that I can report to shareholders that the outlook for the second half of the year at BPE is somewhat better than the first with economic activity picking up in several of our markets.

BPE is now meeting its revised statutory obligation concerning its contributions to the Pension Fund, which as reported in the annual accounts is now in respect of the BPE section of the fund only.

The Board continues to keep central costs at a low level and also continues in its quest to identify a suitable corporate transaction to take the Group forward. It is with great relief that, following the resolution of the Pension Fund matter, the Board is now able to focus its full attention on core activities and build upon the ongoing strong performance of BPE. My co-directors and I are very grateful for the patience of shareholders.

D A H Brown

Chairman

  ASSOCIATED BRITISH ENGINEERING PLC

RESPONSIBILITY STATEMENT 

INTERIM REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

The Directors of the Company confirm to the best of their knowledge that:

a)       the Interim Report has been prepared in accordance with IAS 34;

 

b)       the Interim Report includes a fair view of the information required by DTR 4.2.7R, being an indication of the important events that have occurred during the first six months of the financial year and a description of the principal risks and uncertainties for the remaining six months of the year; and

 

c)       the Interim Report includes a fair review of the information required by DTR 4.2.8R, being disclosure of related party transactions and changes therein since the last Annual Report

By order of the Board

D A H Brown

Chairman

  ASSOCIATED BRITISH ENGINEERING PLC

CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

		Six months to	Six months to	Year to
		30 September	30 September	31 March
		2009	2008	2009
		£'000	£'000	£'000
REVENUE		1,406	1,579	3,597
Cost of sales and overheads		(1,450)	(1,527)	(2,927)
		----------------	----------------	-------------
		(44)	52	670
Extraordinary item - pension contribution		-	(450)	-
		----------------	----------------	-------------
OPERATING (LOSS)/PROFIT		(44)	(398)	670
Finance expense		-	(27)	(191)
Finance income		1	66	70
		-------------	-------------	-------------
(LOSS)/PROFIT BEFORE TAXATION		(43)	(359)	549
Taxation		-	-	(40)
		-------------	-------------	-------------
(LOSS)/PROFIT FOR PERIOD		(43)	(359)	509
		======	======	======
(LOSS)/EARNINGS PER SHARE
BASIC AND DILUTED		(3p)	(27p)	39p
		=======	======	======

GROUP STATEMENT OF RECOGNISED INCOME AND EXPENSE

		Six months to	Six months to	Year to
		30 September	30 September	31 March
		2009	2008	2009
		£'000	£'000	£'000

Actuarial losses on retirement benefit obligation		-	-	(747)
(Loss)/profit for the period		(43)	(359)	509
		------------	------------	-------------
TOTAL RECOGNISED INCOME AND
EXPENSE FOR THE YEAR		(43)	(359)	(238)
		======	======	======

  ASSOCIATED BRITISH ENGINEERING PLC

CONSOLIDATED INTERIM BALANCE SHEET

30 SEPTEMBER 2009

	At 30  September	At 30 September	At 31 March
	2009	2008	2009
	£'000	£'000	£'000
ASSETS
Non-current assets
Property, plant and equipment	160	228	193
	-------------	-------------	-------------
Current assets
Inventories	1,345	1,364	1,387
Trade and other receivables	641	608	560
Held for trading investments	98	55	67
Cash and cash equivalents	2,444	2,088	2,506
	-------------	-------------	-------------
	4,528	4,115	4,520
	-------------	-------------	-------------
Total assets	4,688	4,343	4,713
	======	======	======
EQUITY AND LIABILITIES
Called up share capital	2,627	2,627	2,627
Share premium account	5,038	5,038	5,038
Other reserve	11	11	11
Retained earnings	(5,042)	(5,120)	(4,999)
	-------------	-------------	-------------
Equity attributable to the Company's Equity shareholders	2,634	2,556	2,677
	-------------	-------------	-------------
LIABILITIES
Non-current liabilities
Retirement benefit obligation	1,418	1,063	1,417
Obligations under finance leases	-	2	1
	-------------	-------------	-------------
	1,418	1,065	1,418
	-------------	-------------	-------------
Current liabilities
Trade and other payables	595	722	577
Obligations under finance leases	-	-	1
Current tax liabilities	41	-	40
	-------------	-------------	-------------
	636	722	618
	-------------	-------------	-------------
Total liabilities	2,054	1,787	2,036
	-------------	-------------	-------------
Total equity and liabilities	4,688	4,343	4,713
	======	======	======

   ASSOCIATED BRITISH ENGINEERING PLC

CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

	Share Capital	Share Premium	Other  Reserve	Retained Earnings	Total
	£'000	£'000	£'000	£'000	£'000
Balance at 1 April 2008	2,627	5,038	11	(4,761)	2,915
Loss for the period	-	-	-	(359)	(359)
	-------------	---------------	---------------	--------------	--------------
Balance at 30 September 2008	2,627	5,038	11	(5,120)	2,556
Profit for the period	-	-	-	868	868
Actuarial losses in defined benefit plan	-	-	-	(747)	(747)
	--------------	--------------	--------------	--------------	---------------
Balance at 1 April 2009	2,627	5,038	11	(4,999)	2,677
Loss for the period	-	-	-	(43)	(43)
	-------------	---------------	---------------	--------------	--------------
Balance at 30 September 2009	2,627	5,038	11	5,042	2,634
	=======	=======	=======	=======	=======

  ASSOCIATED BRITISH ENGINEERING PLC

CONSOLIDATED INTERIM CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

	Six months to	Six months to	Year to
	30 September 2009	30 September  2008	31 March  2009
	£'000	£'000	£'000
Cash flows from operating activities
Cash generated from operations	(52)	(347)	51
Interest received	1	66	70
Interest paid	-	(27)	(2)
	---------------	---------------	--------------
Net cash from operating activities	(51)	(308)	119
	---------------	---------------	--------------
Cash flows from investing activities
Purchase of property, plant and equipment	(3)	(9)	(13)
Purchase of investments held for trading	(7)	-	(5)
	---------------	---------------	--------------
Net cash used in investing activities	(10)	(9)	(18)
	---------------	---------------	--------------
Cash flows from financing activities
Net change in obligations under finance leases	(1)	(1)	(1)
	---------------	---------------	--------------
Net cash used in financing activities	(1)	(1)	(1)
	---------------	---------------	--------------
Net (decrease)/increase in cash and cash equivalents	(62)	(318)	100
Cash and cash equivalents at beginning of year	2,506	2,406	2,406
	---------------	---------------	--------------
Cash and cash equivalents at end of year	2,444	2,088	2,506
	=======	=======	=======

CASH FLOW FROM OPERATING ACTIVITIES	Six months to	Six months to	Year to
	30 September 2009	30 September 2008	31 March  2009
	£'000	£'000	£'000
Net (loss)/profit	(43)	(359)	549
Adjustments for:
Depreciation	36	34	73
Loss/(profit) on disposal of investments held for trading	(23)	7	-
Interest income	(1)	(66)	(70)
Interest expense	-	27	2
Pension scheme interest expense	-	-	189
Cash paid in excess of current pensions service cost	-	-	(582)
Changes in working capital:
(Increase)/decrease in inventories	42	(44)	(67)
Decrease/(increase) in trade and other receivables	(81)	51	99
Increase/(decrease) in payables	18	3	(142)
	---------------	---------------	--------------
Cash generated from operations	(52)	(347)	51
	=======	=======	=======

  ASSOCIATED BRITISH ENGINEERING PLC

NOTES TO THE INTERIM REPORT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

1.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	BASIS OF PREPARATION This Group interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the disclosure requirements of the Listing Rules.  The results for the year ended 31 March 2009 have been extracted from the statutory consolidated financial statements of Associated British Engineering Plc ('ABE'), which are prepared in accordance with IFRS, as adopted by the EU. The policies set out below have been consistently applied to all periods presented. GOING CONCERN The financial statements have been prepared on the going concern basis. During the year ended 31 March 2009 the directors concluded arrangements with the trustees and their advisors that resulted in an agreement that BPE is only responsible for the British Polar Engines section of the ABE Pension Fund. The consolidated group financial statements now fully reflect the transition and consequent reduced liability to the group as a whole. This section of the ABE Pension Fund which still has a deficit is all that is now reflected in the accounts and the Directors have agreed a revised schedule of the contributions to eliminate this deficit over thirteen years. Based on the group's budgets and cash forecasts, the board considers that the group has sufficient resources to meet all necessary outgoings and to enable it to continue in operational existence for the foreseeable future. BASIS OF CONSOLIDATION The Group interim report incorporates the financial statements of Associated British Engineering plc and its subsidiary undertakings to 30 September each year. All inter-company balances and transactions have been eliminated in full. The Group interim report includes the results of subsidiaries acquired or disposed of during the year from or to the effective date of acquisition or disposal. REVENUE RECOGNITION Revenue is measured at the fair value of the consideration receivable by the Group for goods supplied and services provided, excluding value added tax and trade discounts.  Revenue from the sale of spare parts is recognised when the goods are dispatched or, if under a bill and hold arrangement, when they are available for dispatch to a specific customer. Revenue from the sale of engines is recognised in accordance with the performance of contractual terms and specifically when the engines have been satisfactorily tested in accordance with contractual terms. ACCOUNTING ESTIMATES AND JUDGEMENTS Management are required, in accordance with IFRS, to exercise judgement and to make estimates and assumptions regarding the application of accounting policies and the resulting effect on reported amounts of assets, liabilities, income and expenses. These estimates and assumptions are based on historical experience and a review of current conditions prevailing at the time but actual results may differ from these estimates. Any such revision is recognised in the financial statements in the period in which the change in circumstance is detected. The key areas where management have exercised judgement in the period, and the thought process undertaken, are as follows: Pension Scheme The Directors are in regular contact with the Trustees of the pension scheme in connection with the following areas where judgement is exercised: the assumptions underpinning the actuarial valuation, continued negotiations regarding the various schemes and in relation to the payment plan. The Directors then assess the relevant estimates and assumptions made to ensure that all statutory obligations are met, where possible.

  ASSOCIATED BRITISH ENGINEERING PLC

NOTES TO THE INTERIM REPORT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

Inventories

Inventories held by the Group consist of raw material (mainly components), work in progress (manufactured engine parts) and finished goods (both purchased and manufactured engine parts). Specific provision is made, on a 100% basis, for all stock lines that are obsolete or slow moving for periods in excess of 4 years. A provision of between 5% and 50% is made over all stock lines that have not moved for one, two and three years.

Preference shares

The Group is funded by a combination of equity and debt instruments, the latter representing 555,000 7% £1 cumulative preference shares and 157,395 8% £1 cumulative redeemable preference shares.

International Financial Reporting Standards require these instruments to be carried at their fair value and as there is no expectation that these preference shares will be redeemed the Directors consider the fair value to be £Nil. The Directors have also exercised judgement by discounting the cash flows associated with the dividend arrears of £490,000 to £Nil.

The directors review their assumptions and accounting estimates, along with the accounting policies adopted in preparing these financial statements on a regular basis and recognise any change in variables in the period in which circumstances change.

LEASED ASSETS

Leases of property, plant and equipment, where the Group has substantially all the risks and rewards of ownership, are classified as finance leases. An asset held under a finance lease is capitalised at lease inception at the lower of the asset's fair value and the present value of the minimum lease payments. Obligations related to finance leases, net of finance charges in respect of future periods, are included as appropriate within borrowings. The interest element of the finance cost is charged to the income statement over the life of the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant or equipment is depreciated on the same basis as owned plant and equipment or over the life of the lease, if shorter.

Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. Operating lease rentals (net of any related lease incentives) are charged against profit on a straight line basis over the period of the lease.

INVENTORIES AND IMPAIRMENT OF INVENTORIES

Inventories of raw materials, work in progress and finished goods are valued at the lower of cost and net realisable value. Work in progress and finished goods include an appropriate allocation of overheads.

Cost is calculated on a first in, first out basis. Net realisable value is the estimated selling price in the normal course of business, less estimated costs of completion and provision is made for obsolete, slow moving and defective inventories.

  ASSOCIATED BRITISH ENGINEERING PLC

NOTES TO THE INTERIM REPORT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at cost less depreciation and any impairment in value. Freehold land is not depreciated. Depreciation is calculated to write down the cost of all property, plant and equipment, less its residual value, by annual instalments over their expected useful lives on the following bases:

Freehold buildings    5 per cent

Plant and machinery    7½- 33⅓ per cent

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, over the term of the relevant lease. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised as income.

The carrying values of plant and machinery are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any such indication exists, and where the carrying values exceed the estimated recoverable amount, the assets or cash generating units are written down to their recoverable amounts.

TAXATION

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. The deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting nor taxable profit nor loss. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. 

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. 

FOREIGN CURRENCIES

Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated at the exchange rates ruling at the balance sheet date. All exchange differences are dealt with through the income statement.

ASSOCIATED BRITISH ENGINEERING PLC

NOTES TO THE INTERIM REPORT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (CONTINUED)

RETIREMENT BENEFIT COSTS

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Payments made to state-managed retirement benefit schemes are dealt with as payments to defined contribution schemes where the Group's obligations under the schemes are equivalent to those arising in a defined contribution retirement benefit scheme.

For defined benefit retirement schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in full in the period in which they occur. They are recognised outside profit or loss and presented in the Statement of Recognised Income and Expense in accordance with the provisions stated within IAS 19 'Employee benefits'.  

Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a straight-line basis over the average period until the benefits become vested.

The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, and as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the plan.

CASH AND CASH EQUIVALENTS 

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short term deposits with a maturity of three months or less which are subject to an insignificant risk of changes in value.

FINANCIAL INSTRUMENTS

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities and are presented as such in the balance sheet.  

Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of charge on the outstanding liability. Where none of the contractual terms of share capital meet the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Trade receivables 

Trade receivables are originally recognised at fair value less any allowance for any uncollectible amounts. An estimate for doubtful debts is made when the collection of the full amount is no longer probable. Bad debts are written off when identified.

Trade payables

Trade payables are originally recognised at fair value less any adjustment for any unpayable amounts.

  ASSOCIATED BRITISH ENGINEERING PLC

NOTES TO THE INTERIM REPORT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (CONTINUED)

FINANCIAL INSTRUMENTS (CONTINUED)

Investments in securities

Investments are recognised and derecognised on a trade date where a purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, with all transaction costs being written off to the income statement.

Investments are classified as either held for trading or available-for-sale and are measured at subsequent reporting dates at fair value. Gains and losses arising from changes in fair value of financial assets held for trading are included in the net profit or loss for the period. For available-for-sale investments, gains and losses arising from changes in fair value are recognised directly in equity, until the security is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised is included in the income statement.

CUMULATIVE PREFERENCE SHARES

Cumulative preference shares are measured subsequent to initial recognition at amortised cost using the effective interest rate method. Where the group revises its estimates of cash payments, the carrying amount of the financial liability is adjusted to reflect actual and revised estimated cash flows. The group recalculates the carrying amount by computing the present value of the estimated future cash flows at the financial instruments' original effective interest rate. The adjustment is recognised as income or expense in the income statement.

SHARE BASED PAYMENTS AND SHARE OPTIONS 

Former employees of the Group have received remuneration in the form of share based payment transactions, whereby employees render services in exchange for rights over shares ('equity settled transactions'). The cost of these transactions is measured by reference to their fair value at the date at which the options are granted. The fair value is determined by using the Black-Scholes Option pricing model. In preparing this interim report in accordance with IFRS 1, the Group has elected to apply the share-based payment exemption. It applied IFRS 2 'Share Based Payment' from 1 April 2004 to those options which were issued after 7 November 2002 but had not vested by 1 April 2008.

IMPAIRMENT OF TANGIBLE ASSETS 

At each balance sheet date, the Group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.  

Recoverable amount is the higher of fair value less costs to sell and value to use. In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount.  

An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised as income immediately, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

ASSOCIATED BRITISH ENGINEERING PLC

NOTES TO THE INTERIM REPORT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

2.	GEOGRAPHICAL SEGMENT ANALYSIS
	Based on risks and returns the directors consider the primary reporting format is by business segment. The directors consider that there is only one business segment being diesel and related engineering activities. Therefore the disclosures for the primary segment have been given in the consolidated income statement and consolidated interim balance sheet.
	The secondary reporting format is by geographical analysis by destination as shown below.
	The following table shows an analysis of the Group's sales by geographical market:
		Six months to	Six months to	Year to
		30 September 2009	30 September 2008	31 March  2009
		£'000	£'000	£'000
	United Kingdom	587	709	1,685
	Europe	348	536	1,234
	Middle East	68	35	160
	Far East and Australasia	321	282	35
	Africa	26	11	393
	North and South America	45	6	63
	Russia	11	-	27
		----------	----------	----------
	Total	1,406	1,579	3,597
		======	======	======
	All of the above turnover arises from diesel and related engineering activities and originates in the United Kingdom.
	All of the assets held by the Group were located in the United Kingdom and all capital expenditure was incurred within the United Kingdom.

3.	PRINCIPAL RISKS AND UNCERTAINTIES
	In light of the industry in which BPE, our only trading subsidiary, operates in there are a number of risks and uncertainties which could have an impact on the performance of the Group for the remaining six months of the year.  The key risks and uncertainties have been reflected in Note 1 to these accounts, Summary of Significant Accounting policies, with the following relating to the operational risks and uncertainties: Dependency on key markets;  Timing and renewal of key contracts;  Foreign exchange risk;  Recruitment and retention of key employees;  Identification of acquisitions that fit the Group's strategy;  Compliance with laws and regulations The Directors meet on a regular basis to discuss these risks and uncertainties and appropriate actions are taken to mitigate these risks and to develop suitable strategies to protect the long term performance of the Group.

 

END

 

 

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