Kingsbridge Holdings PLC
5 July 2002
KINGSBRIDGE HOLDINGS PLC
5 July 2002
Kingsbridge Holdings plc (the 'Group')
The decline and continuing uncertainty in the equity markets and the lack of
investor confidence has significantly reduced the level of activity generated by
the Group's non-sports related client base. The sports division and high net
worth client area of the non-sports division, has largely been unaffected by the
prevailing economic conditions and is trading broadly in line with the
directors' expectations. This is due to the Group's specific service offering
and these individual's unique investment requirements.
The decline in stock markets has also resulted in reduced levels of fund based
renewal and trail income received by the Group during the current year. In
addition, the current uncertainty in equity markets has meant that significant
capital investments on behalf of the Group's clients are being delayed.
The board also anticipates uncertainty surrounding the timing of the completion
of certain substantial investments on behalf of some of the Group's clients, in
bespoke investment schemes. In particular, the Group has been unable to complete
the investment in a property scheme as a result of delays in the acquisition of
a suitable property.
Finally, the Group's ability to recruit advisers of appropriate calibre has
proved extremely difficult due to the current uncertainty caused by expected
changes to the regulatory environment following the publication of the Sandler
Report and the recommendations of the FSA regarding polarisation.
Despite the factors outlined above, the Group has made significant progress
during the last year. The sports division has successfully expanded its links
with football academies and football agents resulting in the introduction of new
clients and has attracted new clients from other sports. Within the non-sports
division continuing client development work confirms that there is strong demand
for the services provided, and the board is confident that this division is well
placed to take advantage of any eventual upturn in the equity markets. However,
in consideration of the factors outlined above the board anticipates that the
Group's results for the year ended 31 August 2002 will be significantly below
current market expectations.
Martin Greenwood, Chief Executive 07950 932914
David McKee, Executive Director 0115 852 3620
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