Interim Results

Walker,Crips,Weddle,Beck PLC 12 November 2004 INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2004 Walker, Crips, Weddle, Beck plc (Code: WCW), the financial services group whose activities cover stockbroking, fund management and corporate finance, today announces interim results for the six months ended 30 September 2004, the highlights of which are: • Profit before tax of £639,000 (2003: £493,000), an increase of 29.6% • Turnover of £5,536,000 (2003: £5,425,000) • Interim dividend increased by 4.4% to 2.35p per share (2003: 2.25p per share) • Excellent performance from Unit Trust Funds with funds under management rising to over £30m now from £18.6m at 31 March 2004, an increase of 61.3% • Confident of strong performance in the second half of the year Commenting on the results, Graham Kennedy, Chairman of Walker, Crips, Weddle, Beck plc, said: 'The second half of the current year has started strongly and I can report that stockbroking volumes have been particularly buoyant since early September. Your board is confident of capitalising on the strong start in the second half. We are also committed to growing our recurring revenue stream through both the fund management and financial services divisions. The success enjoyed by the corporate finance division in the first half of the year looks set to be repeated in the current six month period. We look forward to reporting another strong set of results for the full year.' For further information, please contact: Walker, Crips, Weddle, Beck plc Michael Sunderland, Chief Executive Rodney FitzGerald, Finance Director Stephen Bailey, Investment Director Tel: (020) 7253-7502 Further information on Walker, Crips, Weddle, Beck plc: Further information on Walker, Crips, Weddle, Beck plc is available on the Company's website: www.wcwb.co.uk. CHAIRMAN'S STATEMENT Once again I am pleased to report an improvement in profitability for the first half of the year, despite subdued activity on the stockmarket over the summer months. This provides further evidence that the business has been successfully reorientated following the recent corporate restructuring. During the first half of the year, there have been strong performances from all of the Group's trading activities with significant contributions from the Corporate Finance, Unit Trust Funds and Financial Services divisions all complementing the core broking revenue base. The results for the six months to 30 September 2004 show an increase in profit on ordinary activities before tax of nearly 30% to £639,000 (2003: profit on ordinary activities before tax of £493,000). Turnover for the period also showed an increase to £5,536,000 compared with £5,425,000 in 2003. We are also pleased that these results allow us to announce that the interim dividend has been increased to 2.35p per share from 2.25p per share in 2003 and will be paid on 26 November 2004 to those shareholders on the register at the close of business on 19 November 2004. Performance of business Our fund management operations have enjoyed a highly successful six months, with funds under management growing to over £30 million now from £18.6 million at the end of March 2004, an increase of 61.3% from six months ago and an increase of 100% from a year ago. This excellent performance means we have already comfortably exceeded our internal expectations for the full year. The CF Walker Crips UK Growth Fund has continued its impressive performance and has recently attained a coveted AAA Rating from Citywire. The Walker Crips Equity Income Fund, which was launched at this stage last year, has had an extremely successful first year with the fund placed third in its sector since launch. I look forward to reporting further progress on our fund management operations at the year end. The success of our commitment to building up fee-based income is again underlined by the significant contributions to profitability from the Financial Services and Corporate Finance divisions. Our highly experienced Financial Services team is ideally positioned to benefit from forthcoming changes to pensions legislation due to come into effect during 2006. Outlook The second half of the current year has started strongly and I can report that stockbroking volumes have been particularly buoyant since early September. Your board is confident of capitalising on the strong start in the second half. We are also committed to growing our recurring revenue stream through both the fund management and financial services divisions. The success enjoyed by the corporate finance division in the first half of the year looks set to be repeated in the current six month period. We look forward to reporting another strong set of results for the full year. G N Kennedy CVO Chairman 12 November 2004 INTERIM UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT For the six months ended 30 September 2004 Six months Six months Year ended ended ended 30 September 30 September 31 March 2004 2003 2004 £'000 £'000 £'000 Turnover 5,536 5,425 11,492 Commission payable (1,713) (1,671) (3,501) -------- -------- -------- Gross profit 3,823 3,754 7,991 -------- -------- -------- Operating expenses (3,369) (3,357) (7,031) Operating expenses - amortisation of goodwill (76) (76) (156) Operating expenses - exceptional items - - (52) -------- -------- -------- Total operating expenses (3,445) (3,433) (7,239) -------- -------- -------- Operating profit 378 321 752 Net investment income 261 76 156 Profit on disposal of fixed asset investments - 96 163 -------- -------- -------- Profit on ordinary activities before taxation 639 493 1,071 Tax charge on profit on ordinary activities (158) (136) (328) -------- -------- -------- Profit on ordinary activities after taxation 481 357 743 Dividends paid and proposed (248) (237) (559) -------- -------- -------- Retained profit for the period 233 120 184 Realised gain on sale of revalued investment - 244 390 Retained profit brought forward 2,802 2,228 2,228 -------- -------- -------- Retained profit carried forward 3,035 2,592 2,802 ======== ======== ======== Earnings per share - basic 4.5p 3.5p 7.2p -------- -------- -------- - diluted 4.4p 3.3p 6.9p -------- -------- -------- Weighted average number of shares in issue - basic 10,697,217 10,094,517 10,312,758 -------- -------- -------- - diluted 10,914,138 10,559,068 10,832,956 -------- -------- -------- Dividends per share paid and proposed 2.35p 2.25p 5.25p -------- -------- -------- INTERIM UNAUDITED CONSOLIDATED BALANCE SHEET As at 30 September 2004 As at As at As at 30 September 30 September 31 March 2004 2003 2004 £'000 £'000 £'000 Fixed assets Goodwill 2,188 2,353 2,274 Tangible 296 367 268 Investments 962 1,350 1,126 -------- -------- -------- 3,446 4,070 3,668 -------- -------- -------- Current assets Investments 363 - 168 Debtors 58,115 49,410 52,360 Cash at bank and in hand 4,102 2,984 3,207 -------- -------- -------- 62,580 52,394 55,735 Creditors: amounts falling due within one year (57,229) (47,594) (50,504) -------- -------- -------- Net current assets 5,351 4,800 5,231 -------- -------- -------- Net assets 8,797 8,870 8,899 ======== ======== ======== Capital and reserves Called-up share capital 2,142 2,027 2,141 Shares to be issued - 620 - Share premium account 1,266 1,233 1,265 Own shares held (173) - - Profit and loss account 2,862 2,592 2,802 Revaluation reserve 887 1,275 1,051 Other reserves 1,813 1,123 1,640 -------- -------- -------- Shareholders' funds 8,797 8,870 8,899 ======== ======== ======== INTERIM UNAUDITED CONSOLIDATED CASH FLOW STATEMENT For the six months ended 30 September 2004 Six months Six months Year ended ended ended 30 September 30 September 31 March 2004 2003 2004 £'000 £'000 £'000 Net cash inflow/(outflow) from operating activities 1,321 (699) (326) Returns on investments and servicing of finance 261 76 156 Taxation - 5 (141) Capital expenditure and financial investment (120) 354 442 Equity dividends paid (321) (226) (465) -------- -------- -------- Cash inflow/(outflow) before management of liquid resources and financing 1,141 (490) (334) Management of liquid resources (1,205) 450 288 Financing (170) 28 71 -------- -------- -------- (Decrease)/increase in cash in the period (234) (12) 25 ======== ======== ======== NOTES TO THE INTERIM UNAUDITED FINANCIAL STATEMENTS (1) This interim statement has been prepared on the basis of the accounting policies set out in the most recent set of annual financial statements. (2) 2003 and 2004 half year figures are unaudited. The accounts for the year to 31 March 2004 are abridged and non-statutory. Full accounts for that year, on which the auditors of the Company made an unqualified report, have been delivered to the Registrar of Companies. A copy of theses statements is available at the Company's registered office at Sophia House, 76/80 City Road, London EC1Y 2EQ or on the website www.wcwb.co.uk. A copy has been posted to all shareholders. (3) During the six months to 30 September 2004 the Company repurchased 150,000 of its own shares of 20p each, representing 1.4% of the called-up share capital, for aggregate consideration of £173,000. These shares are held as Treasury Shares in accordance with the Companies (Acquisition of Own Shares) (Treasury Shares) Regulations 2003. (4) The Company owns 257,142 ordinary shares in London Stock Exchange plc ('LSE') which have been included on the balance sheet at their fair value of £886,500 (March 2004: 300,000 shares at £1,050,750). The change to the holding, during the period, reflects a share consolidation by LSE on 23 July 2004, on the basis of six new shares for every seven existing shares held. (5) Reconciliation of Consolidated Shareholders' Funds £'000 Balance at 31 March 2004 8,899 Profit for the period 481 Dividends paid and proposed (248) Purchase of Treasury Shares (173) Revaluation of fixed asset investment (164) Exercise of options over ordinary shares 2 -------- Balance at 30 September 2004 8,797 ======== This information is provided by RNS The company news service from the London Stock Exchange

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