Vp PLC : Half-yearly report
| Press Release | 26 November 2013 |
Vp plc
("Vp" or the "Group" or the "Company")
Interim Results
Vp plc, the equipment rental specialist, today announces its Interim Results for the six months ended 30 September 2013.
Highlights
| Profit before tax and amortisation increased 17% to £12.8 million (2012: £11.0 million) | |
| Revenues of £91.3 million, 9% ahead (2012: £84.0 million) | |
| Return on capital employed 13.9% (2012: 13.2%) | |
| Profit margins improved once again to 14.0% (2012: 13.0%) | |
| Capital investment in rental fleet 46% higher than the prior year at £18.3 million | |
| Acquisitions of £4.6 million | |
| Interim dividend increased to 3.6 pence per share | |
| Solid balance sheet with strong operational cash flow |
Jeremy Pilkington, Chairman of Vp plc, commented:
"The Group has produced another excellent set of results with profits, margins, return on capital and earnings per share all strongly ahead. Substantial capital investment in the rental fleet and the acquisition of Mr Cropper in September demonstrates our confidence in the opportunities for growth. The Board believes the Group is very well placed to continue to deliver further progress for the year as a whole and beyond."
- Ends -
Enquiries:
| Vp plc | |
| Jeremy Pilkington, Chairman | Tel: +44 (0) 1423 533 405 |
| jeremypilkington@vpplc.com | |
| Neil Stothard, Group Managing Director | Tel: +44 (0) 1423 533 445 |
| neil.stothard@vpplc.com | |
| Allison Bainbridge, Group Finance Director | Tel: +44 (0) 1423 533 445 |
| allison.bainbridge@vpplc.com | www.vpplc.com |
Media enquiries:
| Abchurch Communications | |
| Sarah Hollins / Shabnam Bashir / Jamie Hooper | Tel: +44 (0) 20 7398 7719 |
| jamie.hooper @abchurch-group.com | www.abchurch-group.com |
CHAIRMAN'S STATEMENT
I am very pleased to report another set of excellent results for the six months to 30September 2013. Profit before tax and amortisation increased by 17% to £12.8 million (2012: £11.0 million) on revenues ahead by 9% at £91.3 million (2012: £84.0 million). Return on capital employed improved to 13.9% (2012: 13.2%) and profit margins improved once again to 14.0% (2012: 13.0%). Basic earnings per share rose to 25.73 pence (2012: 21.63 pence).
Although uncertainties and challenges remain, we have seen a notable improvement in sentiment in certain key market sectors in the UK, particularly within residential and infrastructure investment. This has contributed to the significantly improved performances at Groundforce, UK Forks and Hire Station as reviewed in more detail below.
The scale of opportunities is reflected in the capital investment in rental fleet which was over 46% higher than the prior year at £18.3 million. We also completed the acquisition of Mr Cropper, the UK's leading pile cropping rental company, in September 2013 for a consideration of £4.6 million. Strong operating cash flow absorbed this investment whilst holding period end net borrowings to £56 million (2012: £50 million).
Your board is declaring the payment of an increased interim dividend of 3.6 pence per share (2012: 3.25 pence per share) payable on 3 January 2014 to shareholders on the register as at 6 December 2013.
Review of Operations
Groundforce
Groundforce delivered another strong result with operating profits more than 12% ahead at £4.6 million (2012: £4.1 million) on revenues of £20.8 million (2012: £18.2 million). Pleasingly this performance was based on solid contributions from across the product range and all regions of the UK. Once again, we benefitted from the water companies' AMP5 work programmes as they gathered further momentum.
Our European activity has developed in line with expectations and whilst still relatively small, it continues to make progress and the future prospects that exist for this business remain promising.
Mr Cropper, the pile breaker rental business acquired at the beginning of September 2013, has been successfully integrated within the division and has delivered very satisfactory results in its first two months of trading.
UK Forks
UK Forks delivered an excellent performance with profits 59% ahead of last year at £1.5 million (2012: £1.0 million), on revenues 20% ahead at £8.4 million (2012: £7.0 million). The business has experienced strong and sustained demand, particularly from residential construction and we have made further significant investment in growing the rental fleet in response to high levels of utilisation.
Whilst the market remains competitive, particularly amongst the larger customers, we see further opportunities for growth especially as the volume of residential completions progresses back towards more normal historic levels.
Airpac Bukom
As anticipated, but disappointingly, profits at Airpac Bukom reduced to £0.7 million (2012: £1.3 million) on revenues flat at £9.6 million (2012: £9.6 million).
The quieter trading conditions experienced by Airpac Bukom in the previous financial year continued into the first quarter with delays to Liquefied Natural Gas ("LNG") projects in the Asia Pacific region and subdued demand from the North Sea fabric maintenance market, further exacerbated by the safety related helicopter groundings. Pleasingly however, we saw a much improved trend into the second quarter with trading levels recovering strongly. With an improved outlook in LNG related activity and stronger trading generally, we expect the business to maintain this improving trend.
Torrent Trackside
Torrent Trackside delivered profits of £1.5 million (2012: £1.7 million) on revenues relatively flat at £10.6 million (2012: £10.5 million) and whilst there has been a small reduction in margin, trading levels remain positive moving into the second half of the year.
Network Rail's procurement processes are being restructured in advance of the new five year investment programme (CP5) which commences in April 2014. We are fully engaged with this process and are well placed to support the successful contractors.
With the rail market continuing to attract sustained investment, Torrent's market leading offer places the business in a strong position to make further progress.
TPA
Profits at TPA improved 7% to £2.7 million (2012: £2.5 million) on revenues marginally ahead at £9.8 million (2012: £9.5 million). Demand from transmission upgrade work and a strong performance from the European activity contributed to this result. Within the UK, careful contract selection in the events market and robust cost management has delivered further improvements in margins. In Germany, the transmission and wind power sectors have, as anticipated, recovered well in the first half of the year.
Hire Station
Hire Station produced excellent first half results with profits 59% ahead at £2.7 million (2012: £1.7 million) on revenues up 9% at £31.9 million (2012: £29.3 million).
All sectors of the business; Tools, ESS Safeforce and MEP, reported improved profits.
The tool business has responded positively to growth and margin initiatives, with the branch network continuing to be strengthened. ESS Safeforce has enjoyed a buoyant first half, with ongoing capital investment to support strong demand. MEP has extended its branch network to improve national coverage and expanded its product offering.
Outlook
These are an excellent set of results which reflect the ability of an outstanding team to cope equally well with challenges and opportunities. Everyone in the Group should be justifiably proud of their achievement.
With sentiment in certain key sectors of the UK economy improving and with some of the wider structural threats receding, we believe the Group is very well placed to continue to deliver further progress for the year as a whole and beyond.
Jeremy Pilkington
Chairman
26 November 2013
Condensed Consolidated Income Statement
For the period ended 30 September 2013
| Note | Six months to 30 Sep 2013 | Six months to 30 Sep 2012 | Full year to 31 Mar 2013 | ||||
| (unaudited) | (unaudited) | (audited) | |||||
| £000 | £000 | £000 | |||||
| Revenue | 3 | 91,253 | 84,021 | 167,034 | |||
| Cost of sales | (65,378) | (60,214) | (124,791) | ||||
| Gross profit | 25,875 | 23,807 | 42,243 | ||||
| Administrative expenses | (12,677) | (11,898) | (23,377) | ||||
| Operating profit | 3 | 13,198 | 11,909 | 18,866 | |||
| Net financial expenses | (931) | (1,368) | (2,464) | ||||
| Profit before amortisation and taxation | 12,794 | 10,963 | 17,351 | ||||
| Amortisation of intangibles | (527) | (422) | (949) | ||||
| Profit before taxation | 12,267 | 10,541 | 16,402 | ||||
| Income tax expense | 4 | (2,206) | (2,196) | (3,353) | |||
| Net profit for the period | 10,061 | 8,345 | 13,049 | ||||
| Basic earnings per share | 7 | 25.73p | 21.63p | 33.62p | |||
| Diluted earnings per share | 7 | 23.55p | 19.96p | 30.84p | |||
| Dividend per share | 8 | 3.60p | 3.25p | 12.25p | |||
| Interim dividends proposed / paid (£000) | 1,439 | 1,278 | 1,278 | ||||
| Final dividend paid (£000) | 3,520 | 3,159 | 3,159 |
Condensed Consolidated Statement of Comprehensive Income
For the period ended 30 September 2013
| Six months to | Six months to | Full year to | |||
| 30 Sep 2013 | 30 Sep 2012 | 31 Mar 2013 | |||
| (unaudited) | (unaudited) | (audited) | |||
| £000 | £000 | £000 | |||
| Profit for the period | 10,061 | 8,345 | 13,049 | ||
| Other comprehensive income: | |||||
| Items that will not be reclassified to profit or loss | |||||
| Actuarial gains on defined benefit pension scheme | - | - | 697 | ||
| Tax on items taken direct to equity | - | - | (166) | ||
| Impact of tax rate change | (86) | (52) | (42) | ||
| Foreign exchange translation difference | (100) | (166) | 45 | ||
| Items that may be subsequently reclassified to profit or loss | |||||
| Effective portion of changes in fair value of cash flow hedges | 480 | 183 | 196 | ||
| Other comprehensive income | 294 | (35) | 730 | ||
| Total comprehensive income for the period | 10,355 | 8,310 | 13,779 |
Condensed Consolidated Statement of Changes in Equity
For the period ended 30 September 2013
| Six months to | Six months to | Full year to | |||
| 30 Sep 2013 | 30 Sep 2012 | 31 Mar 2013 | |||
| (unaudited) | (unaudited) | (audited) | |||
| £000 | £000 | £000 | |||
| Total comprehensive income for the period | 10,355 | 8,310 | 13,779 | ||
| Tax movements to equity | 1,383 | 795 | 1,258 | ||
| Impact of tax rate change | (80) | (10) | (42) | ||
| Share option charge in the period | 904 | 781 | 1,225 | ||
| Net movement relating to Treasury Shares and shares held by Vp Employee Trust | (613) | 1,170 | (1,922) | ||
| Dividends to shareholders | (3,520) | (3,159) | (4,437) | ||
| Change in equity during the period | 8,429 | 7,887 | 9,861 | ||
| Equity at the start of the period | 100,922 | 91,061 | 91,061 | ||
| Equity at the end of the period | 109,351 | 98,948 | 100,922 |
Condensed Consolidated Balance Sheet
At 30 September 2013
| Note | 30 Sep 2013 | 31 Mar 2013 | 30 Sep 2012 | |||
| (unaudited) | (audited) | (unaudited) | ||||
| £000 | £000 | £000 | ||||
| Non-current assets | ||||||
| Property, plant and equipment | 5 | 117,883 | 110,577 | 114,474 | ||
| Goodwill | 6 | 35,575 | 33,989 | 33,989 | ||
| Intangible assets | 6 | 6,053 | 5,290 | 5,817 | ||
| Employee benefits | 268 | 80 | - | |||
| Total non-current assets | 159,779 | 149,936 | 154,280 | |||
| Current assets | ||||||
| Inventories | 5,508 | 5,679 | 5,223 | |||
| Trade and other receivables | 45,139 | 33,256 | 36,336 | |||
| Cash and cash equivalents | 4,858 | 8,712 | 5,932 | |||
| Total current assets | 55,505 | 47,647 | 47,491 | |||
| Total assets | 215,284 | 197,583 | 201,771 | |||
| Current liabilities | ||||||
| Interest bearing loans and borrowings | (50) | (24,000) | (26,000) | |||
| Income tax payable | (2,565) | (1,539) | (2,748) | |||
| Trade and other payables | (37,561) | (34,838) | (36,798) | |||
| Total current liabilities | (40,176) | (60,377) | (65,546) | |||
| Non-current liabilities | ||||||
| Interest bearing loans and borrowings | (61,003) | (30,000) | (30,000) | |||
| Employee benefits | - | - | (827) | |||
| Deferred tax liabilities | (4,754) | (6,284) | (6,450) | |||
| Total non-current liabilities | (65,757) | (36,284) | (37,277) | |||
| Total liabilities | (105,933) | (96,661) | (102,823) | |||
| Net assets | 109,351 | 100,922 | 98,948 | |||
| Equity | ||||||
| Issued capital | 2,008 | 2,008 | 2,309 | |||
| Capital redemption reserve | 301 | 301 | - | |||
| Share premium | 16,192 | 16,192 | 16,192 | |||
| Hedging reserve | (314) | (794) | (807) | |||
| Retained earnings | 91,137 | 83,188 | 81,227 | |||
| Total equity attributable to equity holders of parent | 109,324 | 100,895 | 98,921 | |||
| Minority interest | 27 | 27 | 27 | |||
| Total equity | 109,351 | 100,922 | 98,948 |
Condensed Consolidated Statement of Cash Flows
For the period ended 30 September 2013
| Note | Six months to | Six months to | Full year to | |||
| 30 Sep 2013 | 30 Sep 2012 | 31 Mar 2013 | ||||
| (unaudited) | (unaudited) | (audited) | ||||
| £000 | £000 | £000 | ||||
| Cash flows from operating activities Profit before taxation | 12,267 | 10,541 | 16,402 | |||
| Adjustment for: | ||||||
| Pension fund contributions in excess of service cost | (188) | (219) | (429) | |||
| Share based payment charges | 904 | 781 | 1,225 | |||
| Depreciation | 5 | 10,833 | 10,396 | 21,173 | ||
| Amortisation of intangibles | 527 | 422 | 949 | |||
| Net financial expense | 931 | 1,368 | 2,464 | |||
| Profit on sale of property, plant and equipment | (1,305) | (1,301) | (2,569) | |||
| Operating cash flow before changes in working capital and provisions | 23,969 | 21,988 | 39,215 | |||
| Decrease / (increase) in inventories | 208 | (340) | (796) | |||
| (Increase)/decrease in trade and other receivables | (10,279) | (1,339) | 1,741 | |||
| Decrease in trade and other payables | (300) | (1,745) | (401) | |||
| Cash generated from operations | 13,598 | 18,564 | 39,759 | |||
| Interest paid | (990) | (1,394) | (2,504) | |||
| Interest received | 7 | 9 | 20 | |||
| Income tax paid | (1,749) | (1,551) | (3,809) | |||
| Net cash from operating activities | 10,866 | 15,628 | 33,466 | |||
| Investing activities | ||||||
| Proceeds from sale of property, plant and equipment | 4,144 | 3,936 | 9,609 | |||
| Purchase of property, plant and equipment | (17,157) | (15,149) | (29,635) | |||
| Acquisition of businesses (net of cash and overdrafts) | (4,503) | (4,117) | (4,117) | |||
| Net cash from investing activities | (17,516) | (15,330) | (24,143) | |||
| Cash flows from financing activities | ||||||
| Purchase of Treasury Shares and own shares by Employee Trust | (613) | (6,675) | (9,767) | |||
| Repayment of loans | (54,000) | (3,000) | (5,000) | |||
| New loans | 61,000 | 13,000 | 13,000 | |||
| Payment of hire purchase and finance lease liabilities | - | (1) | (1) | |||
| Dividends paid | 8 | (3,520) | (3,159) | (4,437) | ||
| Net cash used in financing activities | 2,867 | 165 | (6,205) | |||
| Net (decrease)/increase in cash and cash equivalents | (3,783) | 463 | 3,118 | |||
| Effect of exchange rate fluctuations on cash held | (71) | (113) | 12 | |||
| Cash and cash equivalents at beginning of period | 8,712 | 5,582 | 5,582 | |||
| Cash and cash equivalents at end of period | 4,858 | 5,932 | 8,712 |
Notes to the Condensed Financial Statements
1. Basis of Preparation
Vp plc (the "Company") is a company domiciled in the United Kingdom. The Condensed Consolidated Interim Financial Statements of the Company for the half year ended 30 September 2013 comprise the Company and its subsidiaries (together referred to as the "Group").
This interim announcement has been prepared in accordance with the Disclosure and Transparency Rules of the UK Financial Services Authority and the requirements of IAS34 ("Interim Financial Reporting") as adopted by the EU. The accounting policies applied are consistent for all periods presented and are in line with those applied in the annual financial statements for the year ended 31 March 2013, which were prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the EU.
The interim announcement was approved by the Board of Directors on 25 November 2013.
The Condensed Consolidated Interim Financial Statements do not include all the information required for full annual Financial Statements.
The comparative figures for the financial year ended 31 March 2013 are extracted from the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditor 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 their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances; these form the basis of the judgements relating to carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
As stated in the year end accounts, the Group continues to be in a healthy financial position. Since the year end net debt has increased by £10.9 million to £56.2 million. The Group's total banking facilities are £70 million, including an overdraft facility. The Board has evaluated these facilities and the associated covenants on the basis of current forecasts, taking into account the current economic climate and an appropriate level of sensitivity analysis. On this basis the Directors have a reasonable expectation that the Group has adequate resources to continue in operation for the foreseeable future and to manage its business risks. For this reason the going concern basis has been adopted in the preparation of these financial statements.
2. Risks and Uncertainties
There are a number of risks and uncertainties which could have a material impact on the Group's performance.
The principal risks faced by the Group, and the activities undertaken to mitigate them, as at 31 March 2013 were set out on page 25 of the 31 March 2013 Financial Statements. Nothing has occurred since these Financial Statements were published to change the Group's view on these risks. The Group's exposure to risk is therefore considered by the Board to be within normal parameters and represents an acceptable level of risk.
3. Summarised Segmental Analysis
| Revenue | Operating Profit | |||||
| Sept 2013 | Sept 2012 | Sept 2013 | Sept 2012 | |||
| £000 | £000 | £000 | £000 | |||
| Groundforce | 20,818 | 18,197 | 4,628 | 4,123 | ||
| UK Forks | 8,408 | 7,022 | 1,518 | 957 | ||
| Airpac Bukom | 9,646 | 9,560 | 679 | 1,315 | ||
| Torrent Trackside | 10,633 | 10,452 | 1,487 | 1,709 | ||
| TPA | 9,826 | 9,518 | 2,707 | 2,529 | ||
| Hire Station | 31,922 | 29,272 | 2,706 | 1,698 | ||
| 91,253 | 84,021 | 13,725 | 12,331 | |||
| Amortisation | (527) | (422) | ||||
| 13,198 | 11,909 | |||||
4. Income Tax
The effective tax rate of 18.0% in the period to 30 September 2013 (30 September 2012: 20.8%) is made up of two elements. Firstly, an estimated underlying tax rate of 22.4% (30 September 2012: 23.8%) which reflects the current standard rate of tax of 23%, as adjusted for estimated permanent differences for tax purposes offset by gains covered by exemptions. Secondly there is a release of £0.5m (4.4%) from the deferred tax balance as a result of the enacted changes in the future UK corporation tax rate from 23% to 20% in future periods.
5. Property, Plant and Equipment
| Sept 2013 | Sept 2012 | Mar 2013 | |
| £000 | £000 | £000 | |
| Carrying amount 1 April | 110,577 | 110,680 | 110,680 |
| Additions | 19,542 | 14,085 | 25,285 |
| Acquisitions | 1,458 | 2,798 | 2,798 |
| Depreciation | (10,833) | (10,396) | (21,173) |
| Disposals | (2,839) | (2,635) | (7,040) |
| Effect of movements in exchange rates | (22) | (58) | 27 |
| Closing carrying amount | 117,883 | 114,474 | 110,577 |
The value of capital commitments at 30 September 2013 was £10,010,000 (31 March 2013 £2,943,000).
6. Goodwill and intangibles
On 3 September 2013 Vp plc acquired the share capital of Mr Cropper Limited for £4.6 million and the business and net assets of the acquired company have been transferred to Vp plc. The acquisition has been consolidated into these results using provisional completion figures. On this basis the fair value of net assets acquired was £3.0 million including intangibles of £1.3 million leaving goodwill of £1.6 million.
7. Earnings Per Share
Earnings per share have been calculated on 39,104,381 shares (2012: 38,579,093 shares) being the weighted average number of shares in issue during the period. Diluted earnings per share have been calculated on 42,730,495 shares (2012: 41,810,258 shares) adjusted to reflect conversion of all potentially dilutive ordinary share options. Basic earnings per share before the amortisation of intangibles was 26.77 pence (2012: 22.46 pence) and was based on an after tax add back of £406,000 (2012: £321,000). Diluted earnings per share before amortisation of intangibles was 24.49 pence (2012: 20.73 pence).
8. Dividends
The Directors have declared an interim dividend of 3.60 pence (2012: 3.25 pence) per share payable on 3 January 2014 to shareholders on the register at 6 December 2013. The dividend proposed at the year end was subsequently approved at the AGM in July and £3,520,000 was paid in the period (2012 paid: £3,159,000). The cost of dividends in the Statement of Changes in Equity is after adjustments for the interim and final dividends waived by the Vp Employee Trust in relation to the shares it holds for the Group's share option schemes.
9. Analysis of Net Debt
| As at | Cash | Acquisition | As at | ||||
| 1 Apr 13 | Flow | 30 Sep 13 | |||||
| £000 | £000 | £000 | £000 | ||||
| Cash in hand and at bank less overdrafts | 8,712 | (3,951) | 97 | 4,858 | |||
| Revolving credit facilities | (54,000) | (7,000) | - | (61,000) | |||
| Finance leases and hire purchases | - | - | (53) | (53) | |||
| (45,288) | (10,951) | 44 | (56,195) |
The Group's bank facilities comprise a £35 million committed three year revolving credit facility which expires in May 2016, a £30 million committed four and a half year revolving credit facility expiring in October 2017 and overdraft facilities totalling £5 million.
10. Related Party Transactions
Transactions between Group Companies, which are related parties, have been eliminated on consolidation and therefore do not require disclosure.
11. Forward Looking Statements
The Chairman's Statement includes statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules and applicable law, the Company undertakes no obligation to update, review or change any forward looking statements to reflect events or developments occurring after the date of this report.
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
26 November 2013
The Board
The Directors who served during the 6 months to 30 September 2013 were:
Jeremy Pilkington (Chairman)
Neil Stothard
Allison Bainbridge
Peter Parkin (resigned 23 July 2013)
Steve Rogers
Phil White (appointed 15 April 2013)
Independent Review Report to Vp 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 2013 which comprises the condensed consolidated interim income statement, the condensed consolidated interim statement of comprehensive income, the condensed consolidated interim balance sheet, the condensed consolidated interim statement of changes in equity, the condensed consolidated interim 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 Conduct Authority ("the UK FCA"). 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 FCA.
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 has 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 2013 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FCA.
Lindsey Crossland
For and on behalf of KPMG Audit Plc
Chartered Accountants
Leeds
26 November 2013
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Vp PLC via Globenewswire
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