Half-Yearly Financial Results

RNS Number : 1555Y

Robert Walters PLC

28 August 2009

 



28 AUGUST 2009 

ROBERT WALTERS PLC

Half-Yearly Financial Results for the six months ended 30 June 2009

FINANCIAL SUMMARY

• Net fee income (gross profit) of £50.0m (2008: £71.7m).
• Loss before tax of £2.6m (2008: profit of £9.8m).
• Interim dividend maintained at 1.40p per share (2008: 1.40p).
• Strong cash position, with £22.5m of net cash as at 30 June 2009 (30 June 2008: £8.3m).

OPERATIONAL SUMMARY 

• Total headcount reduced from 1,571 at the start of the year to 1,260 at 30 June 2009 (30 June 2008: 1,687).
• Maintained geographic footprint: 39 offices in 17 countries.
• Contract proved more resilient than permanent business and now represents 41% (2008: 32%) of the Group's recruitment net fee income.

Robert Walters, Chief Executive, commented:

'Market conditions continued to weaken during the period, but having taken the necessary action we are comfortable that headcount has reached an appropriate level given current trading activity.  

'Our strategy is quite simple: to ride out this downturn, whilst maintaining a robust infrastructure to take full advantage of an upturn in economic conditions. We ended the period with £22.5m of net cash, we are maintaining our dividend and have no plans to withdraw from any of the markets in which we operate.'

ENQUIRIES:

Robert Walters plc	[phone]
Robert Walters, Chief Executive
Alan Bannatyne, Group Finance Director
Pelham PR
James Henderson	[phone]
	[e-mail]
Archie Berens	[phone]
	[e-mail]

Robert Walters plc

Half-Yearly Financial Results for the six months ended 30 June 2009

Interim Management Report

Market conditions remained extremely challenging during the first half of the year. Revenue decreased by 17% to £141.7m (2008: £169.8m) and gross profit ('net fee income') by 30% to £50.0m (2008: £71.7m), resulting in an operating loss of £2.3m (2008: profit of £10.6m) and a loss before tax of £2.6m (2008: profit of £9.8m). The Group has a strong cash position with net cash of £22.5m (2008: £8.3m).

Our permanent business across the globe suffered a significant decline in net fee income whilst our contract business, in which we have invested heavily over the last three years, proved to be more resilient. Contract now represents 41% of the Group's recruitment net fee income (2008: 32%).

The past six months has seen a reduction in staff numbers from 1,571 to 1,260 (2008: 1,687). We are comfortable that headcount has reached an appropriate level given the current trading activity of the Group and we have no plans to withdraw from any of the markets in which we operate.

Asia Pacific (38% of net fee income)

Revenue was £53.9m (2008: £68.7m) and net fee income decreased by 37% to £19.0m (2008: £30.2m) producing an operating loss of £0.5m (2008: profit of £7.4m).

The demand for recruitment services continued to decline across our Australian business as a result of the effects of both the financial crisis and the minerals sector slowdown. Activity levels also slowed across all recruitment disciplines in New Zealand.

Trading conditions across Asia were particularly difficult during the first half. However, our business in Malaysia and our newly acquired business in mainland China both delivered increases in net fee income.  

United Kingdom (33% of net fee income)

Revenue was £55.7m (2008: £68.4m) and net fee income decreased by 29% to £16.7m (2008: £23.4m) producing an operating loss of £0.8m (2008: profit of £0.6m).

The first half of the year was characterised by a continued weakening of market conditions across all recruitment disciplines and industry sectors. Contract hiring proved to be more resilient and provided some hedge against the cyclical permanent market. Our regional UK business performed relatively well in the first half, experiencing only a small decline in net fee income.

Resource Solutions, our recruitment process outsourcing business, delivered an increase in net fee income, growing its client base and expanding its scope of services at existing client sites.

Europe (27% of net fee income)

Revenue was £31.1m (2008: £31.5m) and net fee income decreased by 21% to £13.4m (2008: £16.9m) producing an operating loss of £0.7m (2008: profit of £2.6m).

Europe was the last region to be affected by the downturn and although it held up relatively well during the first half, net fee income still deteriorated over the period. France proved our most resilient market, principally due to the performance of our Walters Interim business. During the first half we opened a second Walters Interim office in Belgium and an office in Zurich. 

In Ireland and Spain, market conditions remain extremely difficult and show no signs of improvement. 

USA and South Africa (2% of net fee income)

Revenue was £0.9m (2008: £1.2m) and net fee income decreased by 27% to £0.9m (2008: £1.2m) producing an operating loss of £0.2m (2008: £nil).

Our New York business recorded a small loss but we are confident that this office will return to profitability when market conditions improve. Our operation in Johannesburg was more resilient and remained profitable during the period.

Cash flow

Operating activities generated £9.2m (2008: £10.9m) again reflecting strong control over working capital during the period. Having repaid £4.2m of bank loans and paid £2.9m tax, £2.4m dividend; and £1.0m capital expenditure, the Group ended the period with £22.5m of net cash (30 June 2008: £8.3m, 31 December 2008: £22.2m).

Dividend

The interim dividend will be maintained at 1.40p per share (2008: 1.40p) and will be paid on 23 October 2009 to those shareholders on the Company's register on 11 September 2009.

Treasury Management, Currency Risk and Other Principal Risks and Uncertainties affecting the Business

The Group does not have material transactional currency exposures although is exposed to translation differences on the profits and cash flows generated in its overseas operations, the main functional currencies of the Group being Sterling, the Euro, the Australian Dollar and the Japanese Yen.

The other principal risks and uncertainties affecting the business activities of the Group remain those detailed within the Operating and Financial Review section of the Annual Report & Accounts for the year ended 31 December 2008, namely the strength of the employment market, temporary labour law and staff retention across the Group. The Board does not foresee a material change in respect of these factors for the remainder of the year.

Outlook

Our strategy is quite simple: to ride out this downturn, whilst maintaining a robust infrastructure to take full advantage of an upturn in economic conditions. We ended the period with £22.5m of net cash and we are maintaining our dividend.

Philip Aiken                                       Robert Walters 

Chairman                                           Chief Executive

27 August 2009

ROBERT WALTERS PLC

Half-yearly Financial Results 2009

Condensed consolidated income statement

		2009		2008		2008
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
Revenue
Continuing operations		141,685		169,827		337,311
Cost of sales		(91,711)		(98,134)		(198,726)
Gross profit		49,974		71,693		138,585
Administrative expenses		(52,269)		(61,137)		(119,943)
Operating (loss) profit		(2,295)		10,556		18,642
Finance income		87		225		530
Finance costs		(188)		(264)		(821)
Loss on foreign exchange		(239)		(749)		(169)
(Loss) profit before taxation		(2,635)		9,768		18,182
Taxation		65		(3,106)		(5,967)
(Loss) profit for the period		(2,570)		6,662		12,215
Attributable to:
Equity holders of the parent		(2,570)		6,665		12,242
Minority interest		-		(3)		(27)
		(2,570)		6,662		12,215
(Loss) earnings per share (pence):
Basic		(3.7)		9.2		17.2
Diluted		(3.7)		8.9		16.6

Condensed consolidated statement of recognised income and expense

		2009		2008		2008
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
(Loss) profit for the period		(2,570)		6,662		12,215
Exchange differences on translation of overseas operations		(3,215)		2,167		8,480
Total recognised income and expense for the period		(5,785)		8,829		20,695
Attributable to:
Equity holders of the parent		(5,785)		8,832		20,722
Minority interest		-		(3)		(27)
		(5,785)		8,829		20,695

ROBERT WALTERS PLC

Half-yearly Financial Results 2009

Condensed consolidated balance sheet

		2009		2008		2008
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
Non-current assets
Intangible assets		9,343		9,511		9,638
Property, plant and equipment		5,129		5,360		6,228
Deferred tax assets		3,634		3,782		2,771
		18,106		18,653		18,637
Current assets
Trade and other receivables		51,154		73,200		68,419
Corporation tax receivables		1,869		660		579
Cash and cash equivalents		24,205		20,484		28,525
		77,228		94,344		97,523
Total assets		95,334		112,997		116,160
Current liabilities
Trade and other payables		(40,255)		(48,799)		(47,618)
Corporation tax liabilities		(957)		(2,496)		(2,031)
Bank overdrafts and loans		(884)		(9,505)		(4,822)
		(42,096)		(60,800)		(54,471)
Net current assets		35,132		33,544		43,052
Non-current liabilities
Bank loans		(796)		(2,688)		(1,532)
Deferred tax liabilities		(643)		(614)		(502)
		(1,439)		(3,302)		(2,034)
Total liabilities		(43,535)		(64,102)		(56,505)
Net assets		51,799		48,895		59,655
Equity
Share capital		17,034		17,030		17,034
Share premium		20,586		20,570		20,586
Other reserves		(73,410)		(73,407)		(73,410)
Own shares held		(9,529)		(10,065)		(9,834)
Treasury shares held		(18,865)		(18,865)		(18,865)
Foreign exchange reserves		5,703		2,605		8,918
Retained earnings		110,280		111,008		115,226
Equity attributable to equity holders of the parent		51,799		48,876		59,655
Minority interest		-		19		-
Total equity		51,799		48,895		59,655

  ROBERT WALTERS PLC

Half-yearly Financial Results 2009

Condensed consolidated cash flow statement

			2009		2008		2008
			6 mths to		6 mths to		12 mths to
			30 June		30 June		31 December
			Unaudited		Unaudited		Audited
			£'000		£'000		£'000
Cash generated from operating activities			9,242		10,925		29,549
Income taxes paid			(2,939)		(4,904)		(9,102)
Net cash from operating activities			6,303		6,021		20,447
Investing activities
Acquisition of subsidiary (net of cash acquired)			(445)		(238)		(237)
Interest paid			(101)		(95)		(348)
Purchases of computer software			(333)		(525)		(1,677)
Purchases of property, plant and equipment			(643)		(1,523)		(2,438)
Proceeds on disposal of property, plant and equipment			5		47		132
Net cash used in investing activities			(1,517)		(2,334)		(4,568)
Financing activities
Equity dividends paid			(2,354)		(2,329)		(3,303)
Proceeds from issue of equity			-		20		41
Proceeds from bank loans			-		3,894		3,028
Repayment of bank loans			(4,162)		(2,582)		(6,814)
Purchase of treasury and own shares			-		(9,060)		(9,658)
Shares purchased for cancellation			-		(401)		(401)
Net cash used in financing activities			(6,516)		(10,458)		(17,107)
Net decrease in cash and cash equivalents			(1,730)		(6,771)		(1,228)
Cash and cash equivalents at beginning of the period			28,525		23,953		23,953
Effect of foreign exchange rate changes			(2,590)		1,099		5,800
			24,205		18,281		28,525
Cash and cash equivalents at end of the period
Bank balances and cash			24,205		20,484		28,525
Bank overdrafts			-		(2,203)		-
			24,205		18,281		28,525

ROBERT WALTERS PLC

Half-yearly Financial Results 2009

Condensed consolidated statement of changes in equity

	Share capital	Share premium	Other reserves	Own shares held	Treasury shares held	Foreign exchange reserves	Retained earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 January 2008	17,086	40,553	(73,470)	(1,073)	(18,865)	438	85,030	49,699
Profit for the period	-	-	-	-	-	-	6,665	6,665
Foreign currency translation differences	-	-	-	-	-	2,167	-	2,167
Total recognised income and expense for the period	-	-	-	-	-	2,167	6,665	8,832
Dividends paid	-	-	-	-	-	-	(2,329)	(2,329)
Own shares purchased	-	-	-	(9,060)	-	-	-	(9,060)
Shares purchased for cancellation	(60)	-	60	-	-	-	151	151
Reduction of share premium	-	(20,000)	-	-	-	-	20,000	-
Adjustment in respect of share schemes	-	-	3	68	-	-	1,491	1,562
New shares issued	4	17	-	-	-	-	-	21
Balance at 30 June 2008	17,030	20,570	(73,407)	(10,065)	(18,865)	2,605	111,008	48,876
Profit for the period	-	-	-	-	-	-	5,577	5,577
Foreign currency translation differences	-	-	-	-	-	6,313	-	6,313
Total recognised income and expense for the period	-	-	-	-	-	6,313	5,577	11,890
Dividends paid	-	-	-	-	-	-	(974)	(974)
Own shares purchased	-	-	-	(598)	-	-	-	(598)
Adjustment in respect of share schemes	-	-	(3)	829	-	-	(385)	441
New shares issued	4	16	-	-	-	-	-	20
Balance at 31 December 2008	17,034	20,586	(73,410)	(9,834)	(18,865)	8,918	115,226	59,655
Loss for the period	-	-	-	-	-	-	(2,570)	(2,570)
Foreign currency translation differences	-	-	-	-	-	(3,215)	-	(3,215)
Total recognised income and expense for the period	-	-	-	-	-	(3,215)	(2,570)	(5,785)
Dividends paid	-	-	-	-	-	-	(2,354)	(2,354)
Adjustment in respect of share schemes	-	-	-	305	-	-	(22)	283
Balance at 30 June 2009	17,034	20,586	(73,410)	(9,529)	(18,865)	5,703	110,280	51,799

  ROBERT WALTERS PLC

Half-yearly Financial Results 2009

Notes to the condensed set of financial statements

Statement of Accounting Policies

1.    Basis of preparation

The annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The interim financial report has been prepared in accordance with the International Accounting Standard 34 'Interim Financial Reporting', as adopted by the European Union.

The accounting policies applied by the Group are set out in detail in the Annual Report for the year ended 31 December 2008, except for the adoption of IFRS 8 'Operating Segments'.

The current economic conditions are expected to impact on demand for our services in the short term. In addition, liquidity pressure on both our clients and suppliers could also have an adverse impact on the business. However, the Group has considerable financial resources including £22.5m of net cash at 30 June 2009 together with a diverse range of clients and suppliers across different geographic locations and sectors. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully despite the continued uncertain economic outlook. 

After making enquiries, the Directors have formed a judgement, at the time of approving the accounts, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason the Directors continue to adopt the going concern basis in preparing the half-yearly condensed financial statements.

2.    Financial information

The financial information on pages 4 to 12 was formally approved by the Board of Directors on 27 August 2009.  The financial information set out in this document does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006.  Statutory accounts prepared under IFRS for the year ended 31 December 2008 for Robert Walters plc have been delivered to the Registrar of Companies.  The auditors' report on these accounts was not qualified and did not contain statements under Section 498(2) or (3) of the Companies Act 2006.

The financial information in respect of the period ended 30 June 2009 is unaudited but has been reviewed by the Company's auditors.  Their report is attached on page 13.  The financial information in respect of the period ended 30 June 2008 is also unaudited.

3.     Currency conversion

The reporting currency of the Group is Pounds Sterling and the unaudited condensed consolidated interim financial statements have been prepared on this basis.

The 2009 unaudited condensed consolidated income statement is prepared using, among other

currencies, average exchange rates of €1.1243 to the Pound (period ended 30 June 2008: €1.2881; year ended 31 December 2008: €1.2502); ¥143.484 to the Pound (period ended 30 June 2008: ¥208.000; year ended 31 December 2008: ¥191.033) and AUD$2.1094 to the Pound (period ended 30 June 2008: AUD$2.1312; year ended 31 December 2008: AUD$2.1749). 

The unaudited condensed consolidated balance sheet as at 30 June 2009 has been prepared using the exchange rates on that day of €1.1760 to the Pound (30 June 2008: €1.2640; 31 December 2008: €1.0272); ¥157.857 to the Pound (30 June 2008: ¥211.827; 31 December 2008: ¥130.857) and AUD$2.0533 to the Pound (30 June 2008: AUD$2.0775; 31 December 2008: AUD$2.0976).

  ROBERT WALTERS PLC

Half-yearly Financial Results 2009

4.	Segmental information
		2009		2008		2008
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
i)	Revenue:
	Asia Pacific	53,946		68,662		137,092
	UK	55,727		68,438		133,213
	Europe	31,116		31,499		64,884
	USA and South Africa	896		1,228		2,122
		141,685		169,827		337,311
ii)	Gross profit:
	Asia Pacific	19,003		30,193		58,053
	UK	16,720		23,402		45,448
	Europe	13,359		16,876		32,969
	USA and South Africa	892		1,222		2,115
		49,974		71,693		138,585
iii)	(Loss) profit before taxation:
	Asia Pacific	(538)		7,355		12,345
	UK	(825)		561		1,894
	Europe	(731)		2,628		4,508
	USA and South Africa	(201)		12		(105)
	Operating (loss) profit	(2,295)		10,556		18,642
	Net finance costs	(340)		(788)		(460)
	(Loss) profit before taxation	(2,635)		9,768		18,182
iv)	Total assets:
	Asia Pacific	24,894		29,353		30,374
	UK	27,581		43,501		35,255
	Europe	20,042		22,893		24,369
	USA and South Africa	355		512		394
	Unallocated corporate assets	29,708		24,926		31,875
		102,580		121,185		122,267
v)	Total liabilities:
	Asia Pacific	(11,770)		(11,863)		(15,391)
	UK	(25,827)		(34,639)		(23,930)
	Europe	(9,070)		(9,671)		(13,588)
	USA and South Africa	(833)		(814)		(815)
	Unallocated corporate liabilities	(3,281)		(15,303)		(8,888)
		(50,781)		(72,290)		(62,612)
vi)	Revenue by business grouping:
	Robert Walters	124,743		159,453		312,758
	Resource Solutions	16,942		10,374		24,553
		141,685		169,827		337,311

For the purposes of segmental information, unallocated corporate assets and liabilities include cash, bank loans and corporate and deferred tax balances.

ROBERT WALTERS PLC

Half-yearly Financial Results 2009

5.	Taxation
		2009		2008		2008
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
	Current tax	716		3,162		6,217
	Deferred tax	(781)		(56)		(250)
	Total tax (credit) charge for the period	(65)		3,106		5,967

    The Group has a tax credit of £0.1m on the half year loss before taxation of £2.6m (2008: tax charge of £3.1m on
     a profit before taxation of £9.8m). 

6.	Dividends
		2009		2008		2008
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
	Amounts recognised as distributions to equity holders in the period:
	Final dividend for 2008 of 3.35p (2007: 3.35p)	2,354		2,329		2,329
	Interim dividend for 2008 of 1.40p (2007: 1.35p)	-		-		974
		2,354		2,329		3,303
	Proposed interim dividend for 2009 of 1.40p (2008: 1.40p)	991		974		n/a

     The proposed interim dividend was approved by the Board on 27 August 2009 and has not been included as a 
      liability at 30 June 2009.

ROBERT WALTERS PLC

Half-yearly Financial Results 2009

7.	Earnings per share
	The calculation of earnings per ordinary share is based on the profit for the period attributable to equity holders of the parent and the weighted average number of shares of the Company.
			2009			2008				2008
			6 mths to			6 mths to				12 mths to
			30 June			30 June				31 December
			Unaudited			Unaudited				Audited
			£'000				£'000			£'000
	(Loss) profit for the period attributable to equity holders of the parent		(2,570)			6,665				12,242
			Number of shares				Number of shares			Number of shares
	Weighted average number of shares:
	Shares in issue throughout the period		85,168,703			85,428,703				85,428,703
	Shares issued in the period		-			5,414				19,397
	Shares cancelled in the period		-			(258,950)				(279,644)
	Treasury and own shares held		(14,762,402)			(12,822,649)				(14,279,043)
	For basic earnings per share		70,406,301			72,352,518				70,889,413
	Outstanding share options (note)		-			2,697,255				2,548,118
	For diluted earnings per share		70,406,301			75,049,773				73,437,531

Note: There were an average of 2,251,622 outstanding share options for the six month period to 30 June 2009, but they are excluded from the calculation of diluted earnings per share as there is a loss for the period.

8.	Notes to the cash flow statement
		2009		2008		2008
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
	Operating (loss) profit for the period	(2,295)		10,556		18,642
	Adjustments for:
	Depreciation and amortisation charges	1,726		1,256		2,915
	Loss on disposal of property, plant and equipment	65		44		42
	Movement in share scheme balance	205		1,585		3,566
	Operating cash flows before movements in working capital	(299)		13,441		25,165
	Decrease (increase) in receivables	13,862		(1,233)		10,368
	Decrease in payables	(4,321)		(1,283)		(5,984)
	Cash generated from operations	9,242		10,925		29,549

  ROBERT WALTERS PLC

Half-yearly Financial Results 2009

9.       Bank loans                    

During the period, the Group repaid the outstanding balances on its Euro and Pounds Sterling denominated bank loans. 

In August 2009, the Group entered into a committed, three-year, £10m receivables financing agreement.

10.      Related party transactions

There have been no related party transactions or changes in the related party transactions described in the latest Annual Report that have had a material effect on the financial position or performance of the Group in the first six months of the financial year.

11.      Registered office

           The Company's registered office is located at 55 Strand, London, WC2N 5WR.

RESPONSIBILITY STATEMENT 

We confirm to the best of our knowledge:

a)      the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting';

b)      the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and 

c)      the interim management report and note 10 includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

By order of the Board,

Alan Bannatyne

Group Finance Director

27 August 2009

ROBERT WALTERS PLC

Half-yearly Financial Results 2009

INDEPENDENT REVIEW REPORT TO ROBERT WALTERS PLC

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial results for the six months ended 30 June 2009 which comprises the condensed consolidated income statement, the condensed consolidated statement of recognised income and expense, the condensed consolidated balance sheet, the condensed consolidated cash flow statement, the condensed consolidated statement of changes in equity, and related notes 1 to 11. We have read the other information contained in the half-yearly financial results 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 International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. Our work has been undertaken so that we might state to the company those matters we are required to state to them in an independent review 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 formed.

Directors' responsibilities

The half-yearly financial results are the responsibility of, and have been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial results in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority. As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in the half-yearly financial results has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting,' as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial results 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 United Kingdom. A review of interim financial information consists of making inquiries, 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 results for the six months ended 30 June 2009 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Deloitte LLP

Chartered Accountants

London

27 August 2009

 

END

 

 

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