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W.H. Ireland Group (WHI)

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Monday 28 February, 2011

W.H. Ireland Group

Final Results

RNS Number : 9198B
W.H. Ireland Group PLC
28 February 2011
 



 

WH Ireland Group Plc

("WH Ireland" or "the Group")

 

Preliminary Results for the year ended 30 November 2010

 

WH Ireland (AIM: WHI) is a financial services group serving the private client and smaller company market.

 

Business summary

Operating losses ceased in September 2010 such that the year end loss was little changed from that incurred in the first half of the year. Balance sheet strengthened through better trading and asset sales.

Executive Board further strengthened with appointment of Chief Executive, Paul Compton and significant recruitment in equity sales, trading and compliance.

Trading results have improved throughout the year and continue into the new year with £25m being raised for clients in the year to date as compared to £16m for the year under review, and the Board views the year ahead with confidence.

 

Financial statistics

Group turnover decreased by 25% to £18.4m (2009: £24.6m)

Full year loss reduced to £0.3m (2009: £2.1m)

Basic loss per share of 1.25p (2009: 8.95p)

Equity shareholders' funds decreased to £13.5m (2009: £14.1m), representing approximately 63p per share (2009: 66p)

Total funds under management and control in the UK increased to £1.64bn (2009: £1.18bn)

 

Rupert Lowe, Chairman of WH Ireland, commented:  "These results reflect a difficult period both for the Company and the markets in which it operates.  What is pleasing is that the underlying trends were all positive, with the restructuring benefits coming through strongly.  This provides us with a solid platform from which to grow the business, and to capitalise on future improvement in the market."

 

For further information:

WH Ireland Group plc

+44 (0) 20 7220 1666

Rupert Lowe, Chairman

 

Paul Compton, Chief Executive

 


 

Panmure Gordon (UK) Limited

+44 (0) 20 7459 3600

Hugh Morgan / Abhishek Majumdar (Corporate Finance)

 

Adam Pollock (Corporate Broking)

 


 

Abchurch Communications

 

Julian Bosdet / Joanne Shears / Oliver Hibberd

+44 (0) 20 7398 7714

oliver.hibberd@abchurch-group.com

 

 


Chairman's statement

 

Results and dividend

The result for the full year is an operating loss of £0.7m; a considerable recovery from the £1.8m suffered last year.  In our interim results we announced an operating loss of £0.6m and we are pleased that the final six months of the year have therefore shown an improvement on the first.  It is with regret however that, given the loss incurred in the year, your Directors consider that the payment of a dividend is not justified.

 

People and growth

It has been a year of transition for WH Ireland as we installed new management, strengthened our teams and created a more cohesive business.  Inevitably this had an impact on our financial performance, but with bolstered client relationships and increasing funds under management, the Group has made considerable progress over the past 12 months. 

 

We are delighted that Paul Compton has joined us as Chief Executive, bringing with him a very successful track record as an analyst (UBS/Merrill Lynch), broker (Collins Stewart) and fund manager (Toscafund).  He brings to the Group energy, ideas and experience.  His FSA registration has now been received and he is fully operational.  I would also like to take the opportunity to welcome John Scott (as Executive Director) and Alan Kershaw (as Finance and Operations Director) to the Group Board.  I look forward to working with all of them to spur on the advancement of your Company.

 

The Directors identified certain areas where the Group needed to improve its service and operations, and I am pleased to say that since my last report we have made great strides to recruit in key positions.  We were pleased to welcome Steven Astaire and his team from Astaire Securities; and Ruari McGirr and Sebastian Wykeham from St Helens Capital.  They have all settled in well and are contributing to our revenues.  Since the year end, Simon Doyle and Gary Woolmer have joined us from Westhouse Securities and are Market Making in our in-house stocks which we believe will help us to improve the service we provide for our corporate clients.  We are optimistic that these improvements will help us win further high-quality corporate clients, as exemplified by our recent appointment as Nomad and broker to a number of corporate clients including Noble Investments.  Elsewhere in the business, our Compliance function has been greatly strengthened with Stephen Cooper joining us from Arden Partners and I am also delighted to announce that Deepak Lalwani has recently confirmed that he will be joining us.  Deepak is an expert on India and will strengthen our relationships in this fast growing and capital hungry part of the world economy.

 

Overall, the structure of the Company is moving from a collection of self interested franchises into a business which is structured to more effectively support our corporate, private and wealth management clients.  This ongoing process will be the key to our continued success in a broking sector which offers many opportunities for a well-structured company with motivated and incentivised business producers.

 

Our people are the bedrock of this business, and I would like to thank the rest of the team throughout the whole of WH Ireland for their continued support and hard work.

 

Australia

DJ Carmichael (the Australian stockbroking business in which the Company has a 37.28% stake) continues to make progress despite the global economic downturn.  It has made a small profit in the year ending 30 November 2010 and its revenues for the first two months of this financial year are encouraging.  We have strengthened our relationship with DJ Carmichael and are hopeful that this will result in increasing revenues for both companies.  I would like to thank Ian Dorrington, Paul Adams and everybody at DJ Carmichael for their support.

 

Summary and Outlook

Our Company remains vulnerable to a market downturn and the current high hard/soft commodity prices, levels of inflation and related unrest in the Middle East and North Africa highlight this downside risk.  However, over the past year we have, I believe, greatly strengthened our ability to support, nurture and raise funds for exciting smaller companies who will play a very important part in any economic recovery.  We have also reduced our indebtedness with the recent sale of our JBCM Holdings shares and the redemption of their loan notes. 

 

I am pleased to report that the first two months of the new financial year have started well for the Group.  We have already successfully raised approximately £25m for our clients, compared to only £16m in the year under review; further increased our funds under management and are optimistic about the prospects for the year subject to volatility in the world economy. 

 

Rupert Lowe

Chairman

 


Chief executive's report

 

Overview

I joined WH Ireland on 6th September 2010 and assumed the role of Chief Executive on 31st January 2011.  As such, I was something of a spectator to the results being reported.

 

Over the past two years, the Group has set a number of strategic priorities; including reducing costs, improving the balance sheet, and focusing on our core operational strengths.  On each of these areas the Group has made significant progress.  The Group has instigated some personnel changes during the post September period, which essentially stemmed the losses of the Group, such that the loss for the year of £0.6m was little changed from that incurred in the first half.  In tandem with these personnel changes, we also sold off a series of residual equity holdings to reduce Group debt.  This process has continued into the current year such that there should be no need to access further equity funds to support the Group in its current form.  In summary, the September to November months were a stabilisation period for the Group in earnings and balance sheet terms.

 

The second half improvement in trading meant that the full year loss was reduced from the £2.1m figure reported in the prior year to £0.3m this year.  This remains unacceptable, but was a step in the right direction.  Overall, I would say that the year ended with WH Ireland being in much better shape than it has been in recent years, but it is just the 'end of the beginning' rather than cause for congratulation.

 

Strategy

I have spent much of my time since joining the Company getting to know the business and identifying our strengths.  WH Ireland is well positioned to provide a flexible and personalised solution to our retail clients through the Private Clients and Wealth Management teams.  With a strong regional network and long history, our aim is to provide an alternative to the 'one size fits all' offerings of the large banks.  Our in-house dealing capability allows us to be competitive with discount brokers on a total cost basis, whilst still providing a valuable advisory service.  Within Secondary Markets, we have recently recruited a team to enhance our services in this area by offering Contracts For Difference and spread betting capabilities.  This tax and capital efficient way of investing offers considerable upside to the Group when leveraged across the existing client base.

 

Capital Markets provides advice and fund raising capability to small companies.  At the year-end we were acting for 68 companies, of which 51 were quoted on AIM.  This activity complements our Private Client stockbroking business as there are often good returns to be made from businesses that have fallen under the radar of the major institutions.  At a time when many of the major stockbrokers are withdrawing from the sub-£100m market we are specifically setting our stall out to service this audience.

 

In order to make acceptable returns from this area of the market, one needs to combine broker fees with commissions but also principal trading.  To this end, the Company began market making, predominantly for its in-house stocks, in early January 2011 and initial results have been good.

 

In summary, our strategy is to offer private investors a personalised investment service that sets us apart from the standardised mainstream approach and to service the UK smaller company sector at a time when it is being increasingly ignored by other players.  As such, we are confident that we will be able to build a bigger business than we currently have and produce attractive returns.  It is my personal belief that in due course, UK tax regulation will have to be altered to encourage small company investment.  Should this occur, the Company would be well positioned to grow more rapidly.

 

The future

With improving trading and an adequate balance sheet we have entered the new financial year in a solid position.  Progress to date has been in line with our internal budget and consequently much better than for the previous year.  We have many challenges ahead but we should be able to create a substantial company in its chosen areas of activity.  One of the great advantages of WH Ireland is that it is small enough to reward results fairly directly.  As such, stakeholders who have weathered the dark days should be increasingly well rewarded. 

 

Paul Compton

Chief Executive

 

 

                                Financial Information


Consolidated statement of comprehensive income


Year ended

Year ended



30 November

30 November



2010

2009


Note

£'000

£'000

Revenue

2

18,379

24,618

Administrative expenses


(19,108)

(26,449)

Operating loss


(729)

(1,831)

Other Income


45

29

Investment gains/(losses)


259

(300)

Fair value (losses)/gains on investments

5

(72)

37

Finance Income


54

84

Finance Expense


(90)

(192)

Share of profit of associates


226

93

Loss on disposal of associates


(311)

-





Loss before tax


(618)

(2,080)

Tax credit

3

351

183

Loss from continuing operations


(267)

(1,897)

Loss on discontinued operations, net of tax


-

(216)

Loss for the year


(267)

(2,113)





Other comprehensive income:




Transferred to profit or loss on sale of Property, plant and equipment


(102)

-

Valuation (losses)/ gains on available for sale investments


(192)

55

Transferred to profit or loss on sale of investments


(31)

-

Exchange gains arising on translation of foreign operations


-

479

Tax relating to components of other comprehensive income


60

114

Total other comprehensive income


(265)

648





Total comprehensive income


(1,465)









Loss for the year attributable to:




Owners of the parent


(267)

(2,075)

Non controlling interest


-

(38)



(2,113)





Total comprehensive income attributable to:




Owners of the parent


(532)

(1,507)

Non controlling interest


-

42



(1,465)





Earnings per share for profit to the ordinary




equity holders of the parent during the




period

4



Basic


(1.25)p

(9.79)p

Diluted


(1.25)p

(9.79)p





Continuing operations




Basic


(1.25)p

(8.95)p

Diluted


(1.25)p

(8.95)p




 

 

 


Consolidated statement of financial position


Group



As at

As at



30 November

30 November



2010

2009


Note

£'000

£'000

ASSETS




Non-current assets




Property, plant and equipment


6,301

6,813

Goodwill


2,835

2,909

Intangible assets


161

321

Subsidiaries


-

-

Associates


1,156

1,963

Investments

5

1,483

1,514

Loan notes receivable


335

310

Deferred tax asset


930

643

Subordinated loan


-

-



13,201

14,473

Current assets




Trade and other receivables


37,205

42,673

Other investments


-

855

Corporation tax recoverable


21

42

Cash and cash equivalents

6

2,439

4,258



39,665

47,828

Total assets


52,866

62,301

LIABILITIES




Current liabilities




Trade and other payables


(36,495)

(44,628)

Bank overdraft


-

-

Borrowings


(305)

(419)

Provisions


(149)

-



(36,949)

(45,047)

Non-current liabilities




Borrowings


(1,930)

(2,426)

Deferred tax liability


(384)

(273)

Accruals and deferred income


(98)

(297)

Provisions


(20)

(147)



(2,432)

(3,143)

Total liabilities


(39,381)

(48,190)

Total net assets


13,485

14,111





EQUITY




Share capital


1,064

1,064

Share premium


5,724

5,724

Available-for-sale reserve


47

210

Revaluation reserve


565

667

Other reserves


1,472

1,472

Retained earnings


4,900

5,261

Treasury shares


(287)

(287)

Total equity


13,485

14,111

 


Consolidated statement of cash flows


Group



Year ended

Year ended



30 November

30 November



2010

2009


Note

£'000

£'000

Operating activities:




(Loss)/profit for the year


(267)

(2,113)

Adjustments for:




Depreciation, amortisation and impairment


562

1,151

Finance income


(54)

(109)

Finance expense


90

199

Taxation

3

(351)

(247)

Share of profit of associates


(226)

(93)

Profit on disposal of associates


311

-

Changes in investments

5

272

507

Gain on sale of discontinued operations


-

(382)

Gain on sale of property, plant and equipment


(128)

(171)

Non-cash adjustment for share option charge


(94)

97

Decrease/(increase) in trade and other receivables


5,468

211,533

(Decrease)/increase in trade and other payables


(8,332)

(198,025)

Decrease/(Increase) in provisions


22

(212)

Decrease/(increase) in current asset investments


855

(757)

Exchange adjustments


-

548

Net cash (used in)/generated from operations


(1,872)

11,926

Income taxes paid/received


256

(728)

Net cash (out)/in flows from operating activities


(1,616)

11,198

Investing activities:




Proceeds from sale of property, plant and equipment


291

250

Proceeds from sale of investments

5

823

-

Interest received


54

109

Disposal of subsidiary, net of cash acquired


-

(218)

Purchase of associates


-

(32)

Disposal of associates


100

-

Acquisition of property, plant and equipment


(81)

(203)

Acquisition of investments


(665)

(133)

Repayment of subordinated loan



-

Purchase of loan notes


(25)

-

Net cash generated from/(used in) investing activities


497

(227)

Financing activities:




Proceeds from issue of share capital


-

101

Decrease in borrowings


(610)

(774)

Interest paid


(90)

(199)

Net cash used in financing activities


(700)

(872)

Net (decrease)/increase in cash and cash equivalents


(1,819)

10,099

Cash and cash equivalents at beginning of year


4,258

(5,841)

Cash and cash equivalents at end of year

6

2,439

4,258

Clients' settlement cash


1,573

1,969

Group cash/(overdrafts)


866

2,289

Cash and cash equivalents at end of year

6

2,439

4,258

 

 


Consolidated statement of changes in equity

For the year ended 30 November 2010




Available-








Share

Share

for-sale

Revaluation

Exchange

Other

Retained

Treasury

Total


capital

premium

reserve

reserve

reserve

reserves

earnings

shares

equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 1 December 2008

1,054

5,633

170

667

31

1,472

7,847

(287)

16,587

Gain arising on available-for-sale investments

-

-

55

-

-

-

-

-

55

Exchange rate adjustments

-

-

-

-

479

-

-

-

479

Deferred taxation

-

-

(15)

-

129

-

-

-

114

Other comprehensive income

-

-

40

-

608

-

-

-

648

Loss after taxation

-

-

-

-

-

-

(2,075)

-

(2,075)

Total comprehensive income

-

-

40

-

608

-

(2,075)

-

(1,427)

Shares issued

10

-

-

-

-

-

-

-

10

Share premium on exercise of options

-

91

-

-

-

-

-

-

91

Amounts owed from shareholders

-

-

-

-

-

-

(608)

-

(608)

Employee share option scheme

-

-

-

-

-

-

97

-

97

Disposal of subsidiary

-

-

-

-

(639)

-

-

-

(639)

Balance at 30 November 2009

1,064

5,724

210

667

-

1,472

5,261

(287)

14,111

Gain arising on available-for-sale investments

-

-

(223)

-

-

-

-

-

(223)

Loss on property revaluation

-

-

-

(102)

-

-

-

-

(102)

Deferred taxation

-

-

60

-

-

-

-

-

60

Other comprehensive income

-

-

(163)

(102)

-

-

-

-

(265)

Loss after taxation

-

-

-

-

-

-

(267)

-

(267)

Total comprehensive income

-

-

(163)

(102)

-

-

(267)

-

(532)

Employee share option scheme

-

-

-

-

-

-

(94)

-

(94)

Balance at 30 November 2010

1,064

5,724

47

565

-

1,472

4,900

(287)

13,485

 

The total number of authorised ordinary shares is 34.5 million shares of 5p each (2009: 34.5 million shares of 5p each).  The total number of issued ordinary shares is 21.3 million shares of 5p each (2009: 21.3 million shares of 5p each).

 

The nature and purpose of each reserve is summarised below:

Share premium

The share premium is the amount raised on the issue of shares that is in excess of the nominal value of those shares and is recorded less any direct costs of issue.

Available-for-sale reserve

The available-for-sale reserve reflects gains or losses arising from the change in fair value of available-for-sale financial assets except for impairment losses which are recognised in the income statement.  When an available-for-sale asset is impaired or derecognised, the cumulative gain or loss previously recognised in the available-for-sale reserve is transferred to the income statement.

Revaluation reserve

The revaluation reserve reflects changes in the fair value of property, plant and equipment until such time as the assets are disposed of.  A revaluation surplus is recognised in the revaluation reserve unless it reverses a previous deficit when it is credited to the income statement up to the amount of the previous deficit.  A revaluation deficit is charged to the income statement unless it reverses a previous surplus when it is charged to the revaluation reserve up to the amount of the previous surplus.

Exchange reserve

The exchange reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.

Other reserves

Other reserves comprise a merger reserve of £491k (2009: £491k), a capital redemption reserve of £228k (2009: £228k) and other reserves of £753k (2009: £753k).

Retained earnings

Retained earnings reflect; accumulated income, expenses, gains and losses, recognised in the income statement and the statement of recognised income and expense and is net of dividends paid to shareholders.  The cumulative effect of changes in accounting policy is also reflected as an adjustment in retained earnings.

Treasury shares

Purchases of the Company's own shares in the market are presented as a deduction from equity, at the amount paid, including transaction costs.  That is, treasury shares are shown as a separate class of shareholders' equity with a debit balance.


1.  Principal accounting policies

The financial information set out in this announcement has been prepared in accordance with the recognition and measurement principles of IFRS as endorsed for use in the European Union.

 

The financial information set out in this announcement does not constitute the group's statutory accounts for the year ended 30 November 2010 or the year ended 30 November 2009 under the meaning of s434 Companies Act 2006, but is derived from the 2010 annual report and accounts.

 

Statutory accounts for the years ended 30 November 2009 and 30 November 2010 have been reported on by the Independent Auditors.

 

The Independent Auditors' Report on the Annual Report and Financial Statements for years ended 30 November 2009 and 30 November 2010 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under s498(2) or s498(3) of the Companies Act 2006.

 

Statutory accounts for the year ended 30 November 2009 have been filed with the Registrar of Companies. The statutory accounts for the year ended 30 November 20010 will be delivered to the Registrar in due course.

 

2.  Segment information

IFRS 8 requires indication of operating segments on the basis of internal reports that are regularly reviewed by the entity's chief operating decision maker ('CODM') in order to allocate resources to the segment and assess its performance.  The CODM has been determined to be the Executive and Non-Executive Directors, as they are principally responsible for evaluating operating segment performance and deciding how to allocate resources to operating segments.

 

The Group has four main operating divisions; Private Clients, Wealth Management, Capital Markets and Secondary Trading.  These four segments represent the Group's reportable segments under IFRS8. 

 

The Private Clients division offers investment management and stockbroking advice and services to individuals.  Wealth Management contains our Independent Financial Advisory ("IFA") business, giving advice on and acting as intermediary for a range of financial products.  The Capital Markets division provides corporate finance and corporate broking advice and services to companies and acts as Nominated Advisor to clients listed on the Alternative Investment Market ("AIM").  Secondary Trading contains our Institutional Sales and Research business, which carries out stockbroking activities on behalf of companies as well as conducting research into markets of interest to its clients.  Each reportable segment has a segment manager who is directly accountable to and maintains regular contact with the CODM.  The Head Office segment comprises centrally incurred costs and revenues.

 

Previously segments were determined and presented in accordance with IAS 14 'Segment Reporting'.  The Group's primary format for reporting segment information was business segments, but reporting was also categorised by geographic location, due to a subsidiary located in Australia.  During the prior year however, the shareholding in this subsidiary was substantially reduced, to the point at which it became classified as an associate and is no longer separately reported, therefore is not included in the following tables.  As the Group's only location is now the UK, geographic reporting is no longer necessary. Comparative information has been restated to reflect the new segments.  No customer represents more than ten percent of the Group's revenue.

 

The following tables represent revenue and profit information for the Group's business segments.

Year ended 30 November 2010

Private

Wealth

Capital

Secondary

Head



Clients

Management

Markets

Trading

Office

Group


£'000

£'000

£'000

£'000

£'000

£'000

Revenue

8,783

1,667

2,801

2,395

2,734

18,379

Segment result

2,263

(257)

367

461

(3,876)

(1,042)

Other Income

-

-

-

-

45

45

Investment Income

-

-

135

-

53

188

Finance income

-

-

-

-

55

55

Finance expense

-

-

-

-

(90)

(90)

Share of profit of associates

-

-

-

-

226

226

Loss on discontinued operations, net of tax

-

-

-

-

-

-

Profit/(loss) before taxation

2,263

(257)

502

461

(3,587)

(618)

Taxation

-

-

-

-

351

351

Profit/(loss) on continuing operations after taxation

2,263

(257)

502

461

(3,236)

(267)

 

Impairment losses on goodwill of £74k can be allocated to the Private Clients segment and is included in the segment result above.

 

Year ended 30 November 2009

Private

Wealth

Capital

Secondary

Head



Clients

Management

Markets

Trading

Office

Group


£'000

£'000

£'000

£'000

£'000

£'000

Revenue

8,496

1,263

2,464

9,637

2,758

24,618

Segment result

1,816

(1,003)

(1,087)

2,684

(4,241)

(1,831)

Other Income

-

-

-

-

29

29

Investment Income

-

-

62

-

(325)

(263)

Finance income

-

5

-

-

79

84

Finance expense

-

-

-

-

(192)

(192)

Share of profit of associates

-

-

-

-

93

93

Loss on discontinued operations, net of tax

-

-

-

-

(216)

(216)

Profit/(loss) before taxation

1,816

(998)

(1,025)

2,684

(4,773)

(2,296)

Taxation

-

-

-

-

183

183

Profit/(loss) on continuing operations after taxation

1,816

(998)

(1,025)

2,684

(4,590)

(2,113)

 

Impairment losses on goodwill of £74k and £162k can be allocated to the Private Clients and Wealth Management segments respectively, and are included in the segment results above.

 

Segment assets and segment liabilities are reviewed by the CODM in a consolidated statement of financial position.  Accordingly this information is replicated in the Group Consolidated Statement of Financial Position.  As no measure of assets of liabilities for individual segments is reviewed regularly by the CODM, no disclosure of total assets or liabilities has been made, in accordance with the amendment to paragraph 23 of IFRS 8.

 

The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies.

 

3.  Taxation


Year ended

Year ended


30 November

30 November


2010

2009


£'000

£'000

Current tax (credit)/expense:



United Kingdom corporation tax at 28% (2009: 28%)

-

-

Tax on discontinued operation

-

64

Adjustments in respect of prior years

(235)

269


(235)

333

Deferred tax credit:



Origination and reversal of temporary differences

(69)

(515)

Effect of change in tax rate

25

-

Adjustments in respect of prior years

(72)

(1)


(116)

(516)

Total tax credit in the income statement

(351)

(183)

 

The tax credit for the year and the amount calculated by applying the standard United Kingdom corporation tax rate of 28% (2009: 27.97%) to profit before taxation can be reconciled as follows:


Year ended

Year ended


30 November

30 November


2010

2009


£'000

£'000

Loss before taxation

(618)

(2,360)

Tax expense using the United Kingdom corporation tax rate of 28% (2009: 27.97%)

(173)

(660)

Other expenses not tax deductible

233

593

Income not chargeable to tax

(205)

(433)

Difference in overseas tax rates

76

(8)

Adjustments to current tax in respect of prior years

(235)

269

Tax effect of chargeable gains

-

(7)

Adjustments to deferred tax in respect of prior years

(72)

(1)

Tax on discontinued operation

-

64

Effect of change in tax rate

25

-

Total tax credit in the income statement

(351)

(183)

 



 

4.  Earnings per share (EPS)

Basic EPS is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares purchased by the Company and held as treasury shares.

 

Diluted EPS is the basic EPS, adjusted for the effect of the conversion into fully paid shares of the weighted average number of all employee share options outstanding during the year.  Options over 527,855 (2009: 813,963) shares are excluded from the EPS calculation as they are antidilutive.  Antidilutive options represent options issued where the exercise price is greater than the average market price for the period.

 

Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below:


Year ended

Year ended


30 November

30 November


2010

2009


000's

000's

Weighted average number of shares in issue during the period

21,281

21,186

Effect of share options

75

93


21,356

21,279





£'000

£'000

Earnings attributable to ordinary shareholders

(267)

(2,075)

Continuing operations

(267)

(1,897)

Discontinued operations

-

(178)


(267)

(2,075)




Basic EPS



Continuing operations

(1.25)p

(8.95)p

Discontinued operations

-p

(0.84)p


(1.25)p

(9.79)p

Diluted EPS



Continuing operations

(1.25)p

(8.95)p

Discontinued operations

-p

(0.84)p


(1.25)p

(9.79)p

 

5.  Investments


Quoted

Unquoted

Total

Available-for-sale investments

£'000

£'000

£'000

At 1 December 2008

202

809

1,011

Additions

1

-

1

Fair value gain/(loss)

63

(8)

55

Impairment

(74)

(229)

(303)

At 30 November 2009

192

572

764

Additions

102

-

102

Fair value gain/(loss)

33

(225)

(192)

Impairment

18

-

18

Disposals

(235)

-

(235)

At 30 November 2010

156

347

457

 


Quoted

Warrants

Total

Other investments

£'000

£'000

£'000

At 1 December 2008

539

297

836

Exchange rate adjustments

29

-

29

Additions

79

53

132

Fair value (loss)/gain

(25)

10

(15)

Disposal of subsidiary

(28)

-

(28)

Disposals

(203)

(1)

(204)

At 30 November 2009

391

359

750

Additions

935

250

1,185

Fair value loss

(18)

(77)

(95)

Disposals

(587)

(227)

(814)

At 30 November 2010

721

305

1,026

Total investments 30 November 2010



1,483

Total investments 30 November 2009



1,514

 

Available-for-sale investments, include equity investments other than those equity investments which form part of the carried interest bonus scheme and investments in subsidiaries. Available-for-sale investments are measured at fair value with fair value gains and losses recognised directly in equity in the available-for-sale reserve.

 

Other investments, in the main, comprise financial assets designated as fair value through profit or loss and include equity investments which form part of the carried interest bonus scheme. Financial assets designated as 'fair value through profit or loss' are measured at fair value with fair value gains and losses recognised directly in the income statement.

 

Warrants are acquired as part of the carried interest bonus scheme and designated as fair value through profit or loss.  There is no cash consideration associated with the acquisition.

 

Fair value, in the case of quoted investments, represents the bid price at the balance sheet date.  In the case of unquoted investments, the fair value is estimated by reference to recent arm's length transactions.  The fair value of warrants is estimated using established valuation models.

 

6.  Cash, cash equivalents



30 November

30 November



2010

2009



£'000

£'000

Cash and cash equivalents


2,439

4,258



2,439

4,258

 

For the purposes of the cash flow statement, cash and cash equivalents comprise cash in hand, deposits with banks and financial institutions with a maturity of up to three months and bank overdrafts repayable on demand.

Cash and cash equivalents represent the Group's money and money held for settlement of outstanding transactions.

Free money held in trust on behalf of clients is not included in the balance sheet.  Free money at 30 November 2010 for the Group was £85,429k (2009: £93,457k).

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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