Vp PLC : Interim Results
| Press Release | 29 November 2011 |
Vp plc
("Vp" or the "Group")
Interim Results
Vp plc, the equipment rental specialist, today announces its Interim Results for the six months ended 30 September 2011.
Highlights
| Profit before tax and amortisation increased 21% to £10.4 million (H1 2010: £8.6 million) | |
| Revenues increased 18% to £84.0 million (H1 2010: £71.1 million) | |
| Capital investment in the fleet increased to £15.9 million (H1 2010: £8.9 million) to support growth opportunities across all the businesses | |
| Net debt increased by £2.9 million to £43.4 million (FY 2010: £40.5 million) | |
| Interim dividend maintained at 3.1 pence per share | |
| Solid balance sheet with strong cash generation |
Jeremy Pilkington, Chairman of Vp plc, commented:
"I am pleased to report an outstanding set of results demonstrating strong revenue and profit growth along with excellent cash generation. The impact of individual sector weaknesses continues to be mitigated through the diversity of the Group's activities, a strong balance sheet and significant investment into growth opportunities."
- 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 / Mark Dixon | Tel: +44 (0) 20 7398 7729 |
| mark.dixon@abchurch-group.com | www.abchurch-group.com |
CHAIRMAN'S STATEMENT
I am very pleased to be able to report another set of excellent results.
In the six months to 30 September 2011, profit before tax and amortisation increased 21% to £10.4 million (H1 2010: £8.6 million) on revenues ahead 18% at £84.0 million (H1 2010: £71.1 million). The markets within which we operate, both domestically and internationally, have all presented their various challenges during the period and the six businesses in the Group have all had to work hard to deliver these excellent results.
Capital investment in the fleet rose strongly to £15.9 million (H1 2010: £8.9 million) as we supported growth opportunities across all the businesses. We remain very mindful, however, of the quality of the returns from these investments and monitor and manage allocations on a very proactive basis. Notwithstanding this growth in fleet expenditure, borrowings at the period end had increased by only £2.9 million to £43.4 million (FY 2010: £40.5 million), illustrating the strongly cash generative nature of the Group.
Your Board is declaring the payment of a maintained interim dividend of 3.1 pence per share, payable on 4 January 2012 to shareholders registered as at 9 December 2011.
Review of Operations
Groundforce
Groundforce delivered another very solid result, maintaining profitability against the backdrop of a limited contribution, thus far, from the AMP5 water industry capital investment programme. Construction activity was generally subdued, although demand was noticeably stronger in the South East region. Pleasingly, demand for our more specialist, large bracing systems remained more robust. The Groundforce sub-divisions, which provide products complementary to the mainstream shoring activity, generally performed well. This illustrates how strength from diversity exists not only at Group level but is also replicated within the respective divisions.
Our European activity is stable and although it remains in its early phase of development, we are investing in personnel and infrastructure to create a platform from which to support future growth.
Looking forward we anticipate flat general construction demand supplemented by increasing AMP5 related activity in the UK.
UK Forks
The turnaround in performance at UK Forks began in the first half of 2010 and has pleasingly continued since. Both revenues and profitability are substantially ahead of the prior year period. Whilst the general construction market remains quiet, housebuilding has rebounded, albeit from a severely reduced base, and remains a positive sector for us. Machine utilisation has recovered to a level where we have committed new investment, continuing the recovery towards a pre-recession sized hire fleet. Prices from manufacturers have escalated significantly since we last added to the rental fleet and hire rates have had to move upwards in order to protect levels of return on investment.
The prospects for UK Forks in the second half of the financial year remain positive.
Airpac Bukom
Airpac Bukom reported a very pleasing improvement in performance with revenues and profitability substantially ahead of last year. Given the global spread of this business it is unsurprising that regional disparities in performance arise. The North Sea region performed well with a healthy spread of activity in well test, maintenance and high pressure applications. In North Africa, social and political instability has depressed demand but the longer term prospects are excellent. We have improved our performance in the Middle East region and we remain positive about prospects for further progress. The Pluto LNG derived activity in Australia contributed well in the period, though the contract is now winding down. Over the medium term, there is the promise of further substantial investment in LNG production though we do expect a workload gap between the programmes. South America and particularly the Brazilian market offers great potential but it will be a little time before this opportunity translates into meaningful results. This business has enjoyed tangible recovery in certain geographic markets and despite the expected drop off in LNG related activity, we anticipate further progress in other territories.
We remain very positive about the prospects for growth in this business over the longer term.
Torrent Trackside
This has been an outstanding start to the year for Torrent and pleasingly, one which is based upon successes across a wide range of markets and projects. The five year Network Rail contract which we secured at the end of 2010 is operating satisfactorily and performing ahead of expectations. London Underground, lighting works and other maintenance contracts have also all performed well in the period.
Torrent has made a strong start to the year and with forecasts for increasing investment in the rail sector, prospects remain very favourable for the division.
TPA
TPA delivered revenue and profit growth in the period, though margins reduced due to a combination of pricing pressure in the market and higher operational costs in transport and temporary labour. The business continues to work on optimising management of the activity base with a view to enhancing profitability not only in the quieter winter months, but also in the busy summer trading period.
Germany delivered a solid performance and we continue to build the infrastructure in Europe to support our aspirations for further growth in the region.
Hire Station
The Hire Station division experienced mixed fortunes as revenue growth did not translate into profit. The tool hire market remains very dependent on general construction activity which shows no near term signs of recovery. This part of the business has undertaken a number of initiatives to improve margins including price increases and a thorough overhaul of operational procedures to improve both service and quality of delivery. The two specialist businesses performed well, with ESS Safeforce in particular, enjoying a strong first half.
Whilst the fortunes of the division are, to an extent, governed by general construction activity, the combination of our actions to improve margins in tools and strong market prospects for the specialist businesses should deliver good progress over the medium term.
Outlook
Vp is a profitable, strongly cash generative and conservatively leveraged business with excellent prospects. Our combination of consistency, resilience, and financial strength has contributed to an outstanding first half performance.
Looking forward, the economy shows little sign of returning to any reasonable level of sustainable growth and the Eurozone problems provide further negative sentiment.
However, we continue to demonstrate our ability to deliver success, even in the most challenging circumstances, which, combined with our strong financial position, give the Board confidence that Vp can continue to deliver satisfactory results in the future.
Jeremy Pilkington
Chairman
29 November 2011
Condensed Consolidated Income Statement
For the period ended 30 September 2011
Note | Six months to 30 Sep 2011 | Six months to 30 Sep 2010 | Full year to 31 Mar 2011 | ||||
| (unaudited) | (unaudited) | (audited) | |||||
| £000 | £000 | £000 | |||||
Revenue | 3 | 84,008 | 71,095 | 140,959 | |||
| Cost of sales | (60,945) | (51,501) | (106,461) | ||||
Gross profit | 23,063 | 19,594 | 34,498 | ||||
| Administrative expenses | (11,756) | (9,967) | (19,577) | ||||
| Operating profit | 3 | 11,307 | 9,627 | 14,921 | |||
| Net financial expenses | (1,260) | (1,400) | (2,687) | ||||
Profit before amortisation, exceptional items and taxation | 10,364 | 8,586 | 13,785 | ||||
| Amortisation of intangibles | (317) | (359) | (962) | ||||
| Exceptional items | 4 | - | - | (589) | |||
Profit before taxation | 10,047 | 8,227 | 12,234 | ||||
| Income tax expense | 5 | (2,244) | (2,040) | (2,451) | |||
| Net profit for the period | 7,803 | 6,187 | 9,783 | ||||
| Basic earnings share | 7 | 18.84p | 14.81p | 23.42p | |||
| Diluted earnings share | 7 | 18.07p | 14.60p | 23.24p | |||
| Dividend per share | 8 | 3.10p | 3.10p | 10.80p | |||
| Dividends paid and proposed (£000) | 1,278 | 1,294 | 4,474 |
Condensed Consolidated Statement of Comprehensive Income
For the period ended 30 September 2011
| Six months to | Six months to | Full year to | |||
| 30 Sep 2011 | 30 Sep 2010 | 31 Mar 2011 | |||
| (unaudited) | (unaudited) | (audited) | |||
| £000 | £000 | £000 | |||
| Profit for the period | 7,803 | 6,187 | 9,783 | ||
| Other comprehensive income: | |||||
| Actuarial gains on defined benefit pension scheme | - | - | 526 | ||
| Tax on items taken direct to equity | - | - | (147) | ||
| Impact of tax rate change | (39) | (44) | (77) | ||
| Effective portion of changes in fair value of cash flow hedges | 60 | 634 | 1,493 | ||
Foreign exchange translation difference | (81) | (105) | 11 | ||
Other comprehensive income | (60) | 485 | 1,806 | ||
| Total comprehensive income for the period | 7,743 | 6,672 | 11,589 |
Condensed Consolidated Statement of Changes in Equity
For the period ended 30 September 2011
| Six months to | Six months to | Full year to | |||
| 30 Sep 2011 | 30 Sep 2010 | 31 Mar 2011 | |||
| (unaudited) | (unaudited) | (audited) | |||
| £000 | £000 | £000 | |||
| Total comprehensive income for the period | 7,743 | 6,672 | 11,589 | ||
| Tax movements to equity | 56 | - | 24 | ||
| Impact of tax rate change | - | - | 5 | ||
| Share option charge in the period | 567 | 542 | 624 | ||
| Net movement relating to Treasury Shares and shares held by Vp Employee Trust | (1,354) | (282) | (392) | ||
| Dividends to shareholders | (3,180) | (3,215) | (4,509) | ||
| Change in equity during the period | 3,832 | 3,717 | 7,341 | ||
| Equity at the start of the period | 91,528 | 84,187 | 84,187 | ||
| Equity at the end of the period | 95,360 | 87,904 | 91,528 |
Condensed Consolidated Balance Sheet
At 30 September 2011
| Note | 30 Sep 2011 | 31 Mar 2011 | 30 Sep 2010 | |||
| (unaudited) | (audited) | (unaudited) | ||||
| £000 | £000 | £000 | ||||
Non-current assets | ||||||
| Property, plant and equipment | 6 | 105,869 | 101,286 | 96,234 | ||
| Goodwill | 33,989 | 33,989 | 34,269 | |||
| Intangible assets | 5,293 | 5,610 | 5,933 | |||
| Employee benefits | 41 | - | - | |||
Total non-current assets | 145,192 | 140,885 | 136,436 | |||
Current assets | ||||||
| Inventories | 5,859 | 5,388 | 4,114 | |||
| Trade and other receivables | 39,029 | 33,307 | 31,446 | |||
| Cash and cash equivalents | 6,643 | 5,509 | 3,603 | |||
| Total current assets | 51,531 | 44,204 | 39,163 | |||
| Total assets | 196,723 | 185,089 | 175,599 | |||
| Current liabilities | ||||||
| Interest bearing loans and borrowings | (10) | (20,020) | (18,037) | |||
| Income tax payable | (2,673) | (897) | (2,936) | |||
| Trade and other payables | (40,143) | (37,178) | (30,460) | |||
| Total current liabilities | (42,826) | (58,095) | (51,433) | |||
| Non-current liabilities | ||||||
| Interest bearing loans and borrowings | (50,000) | (26,001) | (26,005) | |||
| Employee benefits | - | (178) | (919) | |||
| Deferred tax liabilities | (8,537) | (9,287) | (9,338) | |||
| Total non-current liabilities | (58,537) | (35,466) | (36,262) | |||
| Total liabilities | (101,363) | (93,561) | (87,695) | |||
| Net assets | 95,360 | 91,528 | 87,904 | |||
Equity | ||||||
| Issued capital | 2,309 | 2,309 | 2,309 | |||
| Share premium | 16,192 | 16,192 | 16,192 | |||
| Hedging reserve | (1,614) | (1,674) | (2,533) | |||
| Retained earnings | 78,446 | 74,674 | 71,909 | |||
| Total equity attributable to equity holders of parent | 95,333 | 91,501 | 87,877 | |||
Non-controlling interest | 27 | 27 | 27 | |||
| Total equity | 95,360 | 91,528 | 87,904 |
Condensed Consolidated Statement of Cash Flows
For the period ended 30 September 2011
| Note | Six months to | Six months to | Full year to | |||
| 30 Sep 2011 | 30 Sep 2010 | 31 Mar 2011 | ||||
| (unaudited) | (unaudited) | (audited) | ||||
| £000 | £000 | £000 | ||||
Cash flows from operating activitiesProfit before taxation | 10,047 | 8,227 | 12,234 | |||
Adjustment for: | ||||||
Pension fund contributions in excess of service cost | (219) | (208) | (423) | |||
Share based payment charges | 567 | 542 | 624 | |||
Depreciation | 6 | 9,902 | 9,208 | 18,558 | ||
Amortisation of intangibles | 317 | 359 | 962 | |||
Net financial expense | 1,260 | 1,400 | 2,687 | |||
Profit on sale of property, plant and equipment | (755) | (1,280) | (2,348) | |||
Operating cash flow before changes in working capital and provisions | 21,119 | 18,248 | 32,294 | |||
Increase in inventories | (471) | (297) | (1,571) | |||
Increase in trade and other receivables | (5,722) | (4,037) | (5,898) | |||
Increase in trade and other payables | 1,691 | 2,542 | 9,029 | |||
Cash generated from operations | 16,617 | 16,456 | 33,854 | |||
| Interest paid | (1,255) | (1,347) | (2,677) | |||
| Interest element of finance lease rental payments | (3) | (16) | (31) | |||
| Interest received | - | - | 2 | |||
| Income tax paid | (1,201) | (394) | (3,065) | |||
| Net cash from operating activities | 14,158 | 14,699 | 28,083 | |||
Investing activities | ||||||
| Proceeds from sale of property, plant and equipment | 3,482 | 4,105 | 7,188 | |||
| Purchase of property, plant and equipment | (19,084) | (9,884) | (21,911) | |||
| Acquisition of businesses and subsidiaries (net of cash and overdrafts) | - | (690) | (690) | |||
| Net cash from investing activities | (15,602) | (6,469) | (15,413) | |||
Cash flows from financing activities | ||||||
| Purchase of Treasury Shares and own shares by Employee Trust | (1,354) | (282) | (392) | |||
| Repayment of loans | (26,000) | (40,500) | (46,500) | |||
| New loans | 30,000 | 35,000 | 43,000 | |||
| Payment of hire purchase and finance lease liabilities | (11) | (168) | (189) | |||
| Dividends paid | 8 | - | - | (4,509) | ||
| Net cash from financing activities | 2,635 | (5,950) | (8,590) | |||
| Net increase in cash and cash equivalents | 1,191 | 2,280 | 4,080 | |||
| Effect of exchange rate fluctuations on cash held | (57) | (62) | 44 | |||
| Cash and cash equivalents at beginning of period | 5,509 | 1,385 | 1,385 | |||
Cash and cash equivalents at end of period | 6,643 | 3,603 | 5,509 |
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 2011 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 2011, 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 28 November 2011.
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 2011 are extracted from the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors 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 £2.9m to £43.4m and the Group has put in place a £30m committed revolving facility to replace the existing £20m committed revolving facility which was due to expire in September 2011. The Group's total banking facilities are now £70m, 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
The risks and uncertainties for the Group have not changed from those disclosed in the last statutory accounts. In particular the Group comprises six businesses serving different markets and manages the risks inherent to these activities. The key external risks include general economic conditions, competitor actions, the effect of legislation, credit risk and business continuity. Internal risks relate mainly to investment and controls failure risk. The Group seeks to mitigate exposure to all forms of risk where practicable and to transfer risk to insurers where cost effective. The diversified nature of the Group limits the exposure to external risks within particular markets. Exposure to credit risk in relation to customers, banks and insurers is managed through credit control practices including credit insurance which limits the Group's exposure to bad debts via an aggregate first loss policy which covers the majority of the Group's accounts receivable. Business continuity plans exist for key operations and accounting centres. The Group is an active acquirer and acquisitions may involve risks that might materially affect the Group performance. These risks are mitigated by extensive due diligence and appropriate warranties and indemnities from the vendors.
Taking into account these risk mitigation actions and the treasury management policies described in the 31 March 2011 accounts, the Group's exposure to market, liquidity and credit risk is considered by the Board to be within normal parameters and represents an acceptable level of risk.
3. Summarised Segmental Analysis
| Revenue | Operating Profit | |||||
| Sept 2011 | Sept 2010 | Sept 2011 | Sept 2010 | |||
| £000 | £000 | £000 | £000 | |||
| Groundforce | 17,293 | 15,572 | 3,453 | 3,506 | ||
| UK Forks | 6,646 | 5,256 | 1,014 | 590 | ||
| Airpac Bukom | 10,269 | 8,544 | 2,048 | 1,451 | ||
| Torrent Trackside | 10,007 | 6,196 | 1,447 | 577 | ||
| TPA | 10,512 | 9,349 | 2,205 | 2,146 | ||
| Hire Station | 29,281 | 26,178 | 1,457 | 1,716 | ||
| 84,008 | 71,095 | 11,624 | 9,986 | |||
| Amortisation | (317) | (359) | ||||
| Exceptional items | - | - | ||||
| 11,307 | 9,627 | |||||
4. Exceptional Items
There were no exceptional items during the current period or the prior year period. The full year results for the year ended 31 March 2011 included exceptional costs of £589,000 in relation to employment termination and restructuring costs.
5. Income Tax
The effective tax rate of 22.3% in the period to 30 September 2011 (30 September 2010: 24.8%) is made up of two elements. Firstly, an estimated underlying tax rate of 26.0% which reflects the current standard rate of tax of 26%, as adjusted for estimated permanent differences for tax purposes offset by gains covered by exemptions and a small net credit for share options. Secondly there is a release of £0.4m (3.7%) from the deferred tax balance as a result of the change in the future UK corporation tax rate from 26% to 25% with effect from 1 April 2012.
6. Property, Plant and Equipment
| Sept 2011 | Sept 2010 | Mar 2011 | |
| £000 | £000 | £000 | |
| Carrying amount 1 April | 101,286 | 98,635 | 98,635 |
| Additions | 17,233 | 9,677 | 26,066 |
| Acquisitions | - | 4 | 4 |
| Depreciation | (9,902) | (9,208) | (18,558) |
| Disposals | (2,727) | (2,825) | (4,840) |
| Effect of movements in exchange rates | (21) | (49) | (21) |
| Closing carrying amount | 105,869 | 96,234 | 101,286 |
The value of capital commitments at 30 September 2011 was £3,316,000 (31 March 2011 £1,197,000).
7. Earnings Per Share
Earnings per share have been calculated on 41,406,830 shares (2010: 41,772,783) being the weighted average number of shares in issue during the period. Diluted earnings per share have been calculated on 43,175,440 shares (2010: 42,388,177) adjusted to reflect conversion of all potentially dilutive ordinary shares. Basic earnings per share before the amortisation of intangibles was 19.41 pence (2010: 15.43 pence) and was based on an after tax add back of £235,000 (2010: £258,000). Diluted earnings per share before amortisation of intangibles was 18.62 pence (2010: 15.21 pence).
8. Dividends
The Directors have declared an interim dividend of 3.10 pence (2010: 3.10 pence) per share payable on 4 January 2012 to shareholders on the register at 9 December 2011. The dividend proposed at the year end was subsequently approved at the AGM in September and therefore accrued, but was not paid in the period (2010 paid: nil). 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 together with dividends waived in relation to treasury shares.
9. Analysis of Net Debt
| As at | Cash | As at | |||
| 1 Apr 11 | Flow | 30 Sep 11 | |||
| £000 | £000 | £000 | |||
| Cash in hand and at bank less overdrafts | 5,509 | 1,134 | 6,643 | ||
| Revolving credit facilities | (46,000) | (4,000) | (50,000) | ||
| Finance leases and hire purchases | (21) | 11 | (10) | ||
| (40,512) | (2,855) | (43,367) |
The Group's bank facilities comprise of a £35m committed three year revolving credit facility which expires in May 2013, a £30m committed four year revolving credit facility expiring in August 2015 and overdraft facilities totalling £5m.
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
29 November 2011
The Board
The Directors who served during the 6 months to 30 September 2011 were:
Jeremy Pilkington (Chairman)
Neil Stothard
Allison Bainbridge
Peter Parkin
Steve Rogers
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 2011 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 shareholders' 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 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 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 2011 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FSA.
Chris Hearld
For and on behalf of KPMG Audit Plc
Chartered Accountants
Leeds
29 November 2011
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Vp PLC via Thomson Reuters ONE
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