Information  X 
Enter a valid email address

Jarvis Securities (JIM)

  Print      Mail a friend

Thursday 14 March, 2019

Jarvis Securities

Final Results

RNS Number : 7942S
Jarvis Securities plc
14 March 2019
 

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU MARKET ABUSE REGULATION (596/2014). UPON THE PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

14 March 2019

                                                                                                       Jarvis Securities plc

("Jarvis" or "the Company" or "the Group")

 

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018

 

HIGHTLIGHTS

 

·      2% decrease in profit before tax

·      7% increase in year on year interest income

·      4% growth in dividend per share

·      2% decrease in EPS

 

 

CHAIRMAN'S STATEMENT

 

·      2% decrease in profit before tax

·      7% increase in year on year interest income

·      4% growth in dividend per share

·      2% decrease in EPS

 

 

I am delighted with these results despite the small drop in the profit before tax. Revenues have increased through restructuring our commercial fee tariffs and providing additional revenue generating services to our commercial clients.  The anticipated cost increases brought about by MIFID II have been offset by the higher revenue and last year's record profitability has been almost equalled in a market that over the course of the year was comparatively more difficult.

 

The tougher conditions experienced in the final quarter of the year remain at the time of writing, fuelled by economic uncertainty and low investor confidence. I do not anticipate this continuing in the longer term as clarity over Brexit arrangements will soon be forthcoming, at which point I expect client trading volumes to return to previous higher levels. As a UK centric business, we remain largely unaffected by the other ramifications of Brexit.

 

I am optimistic about the coming year. 2019 will benefit from a full year of the additional services and fee tariffs that were introduced in June 2018. The second half of 2018 substantially outperformed the first six months and we would have had another record year had these been in place for the full 12 months. There are no significant cost increases anticipated, but most importantly there are no further major pieces of regulation to adopt. This will leave management and staff to focus on developing and growing the business.

 

We continue to receive enquiries from potential commercial clients attracted by our competitively priced service. Our retail client numbers are also increasing, which in turn improve both the balance of cash under administration and interest income earned.  

 

As always I would like to thank Jarvis staff for their continued hard work.

 

The Company will today dispatch to shareholders its Annual Report and Accounts for the year ended 31 December 2018, together with a notice convening the Annual General Meeting ("AGM"), to be held at the Company's offices on Thursday 25th April at 9am. The Annual Report and Accounts and Notice of AGM will also be available from the Company's website, www.jarvissecurities.co.uk.

 

 

 

Andrew Grant

Chairman

 

 

 

 

Enquiries:

Jarvis Securities plc Tel: 01892 510515

Andrew Grant

Jolyon Head

 

WH Ireland Limited 0113 3946619

Katy Mitchell

Chris Savidge

 

 

 

Consolidated income statement for the year ended 31 december 2018

 

 

 

 

 

Year to

Year to

 

 

 

 

31/12/18

31/12/17

 

Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

£

£

Continuing operations:

 

 

 

 

 

Revenue

3

 

 

10,050,567

9,423,436

 

 

 

 

 

 

Administrative expenses

 

 

 

(5,736,062)

(5,002,938)

 

 

 

 

 

 

 

 

 

 

 

 

Profit before income tax

5

 

 

4,314,505

4,420,498

 

 

 

 

 

 

Income tax charge

7

 

 

(832,546)

(867,168)

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

 

3,481,959

3,553,330

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to equity holders of the parent

 

 

 

3,481,959

3,553,330

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

8

 

 

P

P

 

 

 

 

 

 

Basic and diluted

 

 

 

31.79

32.40

 

 

 

 

 

 

 

 

 

Consolidated statement of comprehensive income for the year

 

 

Notes

 

 

Year to

Year to

 

 

 

 

31/12/18

31/12/17

 

 

 

 

£

£

Profit for the period

 

 

 

3,481,959

3,553,330

Total comprehensive income for the period

 

 

3,481,959

3,553,330

Attributable to equity holders of the parent

 

 

 

3,481,959

3,553,330

 

 

Consolidated STATEMENT OF FINANCIAL POSITION at 31 december 2018

 

 

 

 

 

 

 

 

 

 

31/12/18

31/12/17

 

Notes

 

 

 

 

 

 

 

 

£

£

Assets

 

 

 

 

 

Non-current assets

 

 

 

 

 

Property, plant and equipment

9

 

 

218,457

219,940

Intangible assets

10

 

 

93,463

149,662

Goodwill

10

 

 

342,872

342,872

 

 

 

 

654,792

712,474

Current assets

 

 

 

 

 

Trade and other receivables

12

 

 

5,285,001

2,947,626

Investments held for trading

13

 

 

1,956

13,546

Cash and cash equivalents

14

 

 

4,655,473

13,175,503

 

 

 

 

9,942,430

16,136,675

Total assets

 

 

 

10,597,222

16,849,149

 

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

Capital and reserves

 

 

 

 

 

Share capital

15

 

 

111,828

111,828

Share premium

 

 

 

1,576,669

1,576,669

Merger reserve

 

 

 

9,900

9,900

Capital redemption reserve

 

 

 

9,845

9,845

Retained earnings

Own shares held in treasury

 

15

 

 

5,523,363

(859,587)

4,723,986

(859,587)

Total equity attributable to the equity holders of the parent

 

 

 

6,372,018

5,572,641

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

16

 

 

3,739,910

10,658,206

Deferred tax

16

 

 

37,451

32,929

Income tax

16

 

 

447,843

585,373

Total current liabilities

16

 

 

4,225,204

11,276,508

Total equity and liabilities

 

 

 

10,597,222

16,849,149

 

 

Company No.: 5107012

 

CoMPANY STATEMENT OF FINANCIAL POSITION at 31 december 2018

 

 

 

 

 

31/12/18

31/12/17

 

Notes

 

 

 

 

 

 

 

 

£

£

Assets

 

 

 

 

 

Non-current assets

 

 

 

 

 

Property, plant and equipment

9

 

 

218,457

219,940

Intangible assets

10

 

 

93,463

149,662

Goodwill

10

 

 

342,872

342,872

Investment in subsidiaries

11

 

 

284,239

284,239

 

 

 

 

939,031

996,713

Current assets

 

 

 

 

 

Trade and other receivables

12

 

 

721,480

70,481

Cash and cash equivalents

14

 

 

2,588,487

3,503,452

 

 

 

 

3,309,967

3,573,933

Total assets

 

 

 

4,248,998

4,570,646

 

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

 

 

 

 

 

Capital and reserves

 

 

 

 

 

Share capital

15

 

 

111,828

111,828

Share premium

 

 

 

1,576,669

1,576,669

Capital redemption reserve

 

 

 

9,845

9,845

Retained earnings

Own shares held in treasury

 

15

 

 

2,314,978

(859,587)

2,116,007

(859,587)

Total equity attributable to the equity holders

 

 

 

3,153,733

2,954,762

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

16

 

 

700,086

1,139,278

Deferred tax

16

 

 

37,451

32,929

Income tax

16

 

 

357,728

443,677

Total current liabilities

16

 

 

1,095,265

1,615,884

Total equity and liabilities

 

 

 

4,248,998

4,570,646

 

The parent company's profit for the financial year was £3,583,323 (2017: £3,438,880).

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

 

 

 

 

 

Own

 

 

 

 

 

Capital

Share

 

shares held

 

 

Share

Share

Merger

redemption

option

Retained

in

Total

 

capital

premium

reserve

reserve

reserve

earnings

Treasury

equity

 

£

£

£

£

£

£

£

£

At 1 January 2017

111,518

1,522,729

9,900

9,845

136,556

3,610,339

(616,943)

4,783,944

Share options exercised during the year

310

53,940

-

-

-

-

-

54,250

Profit for the financial year

-

-

-

-

-

3,553,330

-

3,553,330

Dividends

Purchase of own shares held in treasury

Transfer to retained earnings

-

-

 

-

-

-

 

-

-

-

 

-

 

-

-

 

-

-

-

 

(136,556)

(2,576,239)

-

 

136,556

-

(242,644)

 

-

(2,576,239)

(242,644)

 

-

At 31 December 2017

111,828

1,576,669

9,900

9,845

-

4,723,986

(859,587)

5,572,641

Profit for the financial year

-

-

-

-

-

3,481,959

-

3,481,959

Dividends

-

-

-

-

-

(2,682,582)

-

(2,682,582)

At 31 December 2018

111,828

1,576,669

9,900

9,845

-

5,523,363

(859,587)

6,372,018

 

COMPANY STATEMENT OF CHANGES IN EQUITY

 

 

 

 

Capital

Share

 

Own shares

 

 

Share

Share

redemption

option

Retained

held in

Total

 

capital

premium

reserve

reserve

earnings

treasury

equity

 

£

£

£

£

£

£

£

At 1 January 2017

111,518

1,522,729

9,845

136,556

1,795,050

(616,943)

2,958,755

Share options exercised during the year

310

53,940

-

-

-

-

 

54,250

Profit for the financial year

-

-

-

-

2,760,640

-

2,760,640

Dividends

Purchase of own shares held in treasury

Transfer to retained earnings

-

-

 

-

-

-

 

-

-

-

 

-

-

-

 

(136,556)

(2,576,239)

-

 

136,556

-

(242,644)

 

-

(2,576,239)

(242,644)

 

-

At 31 December 2017

111,828

1,576,669

9,845

-

2,116,007

(859,587)

2,954,762

Profit for the financial year

-

-

-

-

2,881,553

-

2,881,553

Dividends

-

-

-

-

(2,682,582)

 

(2,682,582)

At 31 December 2018

111,828

1,576,669

9,845

-

2,314,978

(859,587)

3,153,733

 

The notes on pages 17 to 30 form part of these financial statements 

 

 

statement OF cashflows

for the year ended 31 december 2018

 

 

 

 

CONSOLIDATED

 

COMPANY

 

 

Year to

Year to

Year to

Year to

 

 

31/12/18

31/12/17

31/12/18

31/12/17

 

Notes

 

 

 

 

 

 

£

£

£

£

Cash flow from operating activities

 

 

 

 

 

Profit before income tax

 

4,314,505

4,420,498

3,583,323

3,438,880

Depreciation and amortisation

5

110,035

90,714

110,035

90,714

 

 

4,424,540

4,511,212

3,693,358

3,529,594

 

 

 

 

 

 

(Increase) /Decrease in trade and other receivables

(1,482,190)

3,390,264

(650,999)

729,036

(Decrease) /Increase in trade payables

 

(7,773,484)

3,676,029

(439,192)

955,402

Cash generated from operations

 

(4,831,134)

11,577,505

2,603,167

5,214,032

 

 

 

 

 

 

Income tax (paid)/received

 

(965,552)

(660,510)

(783,198)

(583,786)

Net cash from operating activities

 

(5,796,686)

10,916,995

1,819,969

4,630,246

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Purchase of property, plant and equipment

 

(6,099)

(549)

(6,099)

(549)

Purchase of investments held for trading

Proceeds from sale of investments held for trading

Purchase of intangible assets

 

(661,352)

 

672,942

(46,253)

(1,644,356)

 

1,632,522

(67,598)

-

 

-

(46,253)

-

 

-

(67,598)

 

 

(40,762)

(79,981)

(52,352)

(68,147)

Cash flows from financing activities

 

 

 

 

 

Issue of share capital               

 

-

54,250

-

24,250

Repurchase of ordinary share capital

Sale of treasury shares

Dividends paid

 

-

-

(2,682,582)

(242,644)

-

(2,576,239)

-

-

(2,682,582)

(242,644)

-

(2,576,239)

Net cash used in financing activities

 

(2,682,582)

(2,764,633)

(2,682,582)

(2,794,633)

 

 

 

 

 

 

Net (decrease)/ increase in cash & cash equivalents

(8,520,030)

8,072,381

(914,965)

1,797,466

Cash and cash equivalents at the start of the year

13,175,503

5,103,122

3,503,452

1,705,986

Cash and cash equivalents at the end of the year

4,655,473

13,175,503

2,588,487

3,503,452

Cash and cash equivalents:

 

 

 

 

Balance at bank and in hand

5,866,848

5,218,686

2,588,487

3,503,452

Cash held for settlement of market transactions

(1,211,375)

7,956,817

-

-

 

4,655,473

13,175,503

2,588,487

3,503,452

1. Basis of preparation

 

The company has adopted the requirements of International Financial Reporting Standards (IFRS) and IFRIC interpretations endorsed by the European Union (EU) and those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets at fair value through profit or loss.

 

These financial statements have been prepared in accordance with the accounting policies set out below, which have been consistently applied to all the years presented.

 

New standards, not yet effective

A number of new standards and amendments to standards and interpretations have been issued but are no yet effective and in some cases have not yet been adopted by the EU.

 

IFRS 16 is effective for periods commencing on or after 1 January 2019. The standard was endorsed by the European Union during 2017 and is available for early adoption. The directors have decided not to adopt this standard early.

 

The directors assessed the most likely transitional approach the group will apply is the modified retrospective approach.

 

The directors have assessed the application of IFRS 16, and note that once effective it will have a material impact on the results of the group. Application of this standard will result in changes in presentation of information within the group's financial statements due to the capitalisation of the group's operating leases noted in note 18.

 

In addition to the above impacts, recognition of lease assets will increase the group's regulatory capital requirement.

 

Significant judgements and estimates

The areas involving a high degree of judgement or complexity, or areas where the assumptions and estimates are significant to the consolidated financial statements, are disclosed in Note 20.

 

Going concern

The group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report on pages 2 to 3. The financial position of the group, its cash flows, liquidity position and borrowing facilities are described within these financial statements. In addition, note 25 of the financial statements includes the group's objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its exposure to credit risk and liquidity risk.

 

The group has considerable financial resources, long term contracts with all its significant suppliers and a diversified income stream. The group does not have any current borrowing or any anticipated borrowing requirements. As a consequence, the directors believe that the group is well placed to manage its business risks successfully despite the current uncertain economic outlook.

 

The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

 

 

2. Summary of significant accounting policies

 

(a) IFRS 15 'Revenue from Contracts with Customers'

 

IFRS 15 requires that the recognition of revenue is linked to the fulfilment of identified performance obligations that are enshrined in the customer contract. The standard replaces existing revenue recognition guidance, in particular under IAS 18.

 

The directors have assessed the group will apply the cumulative effect method upon transition to IFRS 15, with the effect of applying the standard recognised at the date of adoption, with no restatement of the comparative period.

 

The directors have assessed the impact of IFRS 15 on the financial statements and they consider there to be no material impact.

 

Commission - the group charges commission on a transaction basis. Commission rates are fixed according to account type. When a client instructs us to act as an agent on their behalf (for the purchase or sale of securities) our commission is recognised as income on a point in time basis when the instruction is executed in the market. Our commission is deducted from the cash given to us by the client in order to settle the transaction on the client's behalf or from the proceeds of the sale in instance where a client sells securities.

 

Management fees - these are charged quarterly or bi-annually depending on account type. Fees are either fixed or are a percentage of the assets under administration. Management fees income is recognised over time as they are charged using a day count and most recent asset level basis as appropriate.

 

Interest income - this is accrued on a day count basis up until deposits mature and the interest income is received. The deposits pay a fixed rate of interest. In accordance with FCA requirements, deposits are only placed with banks that have been approved by our compliance department. Interest income is recognised over time as the deposits accrue interest on a daily basis.

 

(b) Basis of consolidation

Subsidiaries are all entities over which the group has the power to govern the financial and operating policies generally accompanying a shareholding of more than half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date on which control ceases. The group financial statements consolidate the financial statements of Jarvis Securities plc, Jarvis Investment Management Limited, JIM Nominees Limited, Galleon Nominees Limited and Dudley Road Nominees Limited made up to 31 December 2018.

 

The group uses the purchase method of accounting for the acquisition of subsidiaries. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange.  Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The cost of acquisition over the fair value of the group's share of identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the group's share of the net assets of the subsidiary acquired, the difference is recognised in the income statement.

 

Intra-group sales and profits are eliminated on consolidation and all sales and profit figures relate to external transactions only. No income statement is presented for Jarvis Securities plc as provided by S408 of the Companies Act 2006.

 

(c) Property, plant and equipment

All property, plant and equipment is shown at cost less subsequent depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is provided on cost in equal annual instalments over the lives of the assets at the following rates:

Leasehold improvements                   -               33% on cost, or over the lease period if less than three years.

Office equipment                               -               20% on cost

Land & Buildings                              -               Buildings are depreciated at 2% on cost. Land is not depreciated.

 

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the income statement. Impairment reviews of property, plant and equipment are undertaken if there are indications that the carrying values may not be recoverable or that the recoverable amounts may be less than the asset's carrying value.

 

(d) Intangible assets

Intangible assets are carried at cost less accumulated amortisation. If acquired as part of a business combination the initial cost of the intangible asset is the fair value at the acquisition date. Amortisation is charged to administrative expenses within the income statement and provided on cost in equal annual instalments over the lives of the assets at the following rates:

Databases                                             -               4% on cost

Customer relationships                        -               7% on cost

Software developments                       -               20% on cost

Website                                                -               33% on cost

Impairment reviews of intangible assets are undertaken if there are indications that the carrying values may not be recoverable or that the recoverable amounts may be less than the asset's carrying value.

 

(e) Goodwill

Goodwill represents the excess of the fair value of the consideration given over the aggregate fair values of the net identifiable assets of the acquired trade and assets at the date of acquisition. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Any negative goodwill arising is credited to the income statement in full immediately.

 

(f) Deferred income tax

Deferred income tax is provided in full, using the liability method, on differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. The deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting or taxable profit or loss. Deferred income tax is determined using tax rates that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

 

Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

 

Deferred income tax is provided on temporary differences arising on investments in subsidiaries except where the timing of the reversal of the timing difference is controlled by the group and it is probable that the temporary differences will not reverse in the foreseeable future.

 

(g) Segmental reporting

A reporting segment is an organisational unit for which information is reported to key management personnel for the purpose of performance assessment and future resource allocation. The directors regard the operations of the group as a single reporting segment on the basis there is only a single organisational unit that is reported to key management personnel for the purpose of performance assessment and future resource allocation.

 

(h) Pensions

The group operates a defined contribution pension scheme. Contributions payable for the year are charged to the income statement.

 

(i) Trade receivables and payables

Trading balances incurred in the course of executing client transactions are measured at initial recognition at fair value. In accordance with market practice, certain balances with clients, Stock Exchange member firms and other counterparties are included as trade receivables and payables. The net balance is disclosed where there is a legal right of set off.

 

(j) Operating leases

Costs in respect of operating leases are charged on a straight line basis over the lease term in arriving at the profit before income tax.

 

(k) Investments

 

Investment held for trading

Investments held for trading are stated at fair value. An investment is classified in this category if acquired principally for the purpose of selling in the short term. Assets in this category are classified as current and are considered to be level one assets in accordance with IFRS 13.

 

Purchases and sales of investments are recognised on the trade-date - the date on which the group commits to purchase or sell the asset. Investments are initially recognised at fair value. Investments are derecognised when the rights to receive cash flows from the investments have expired or been transferred and the group has transferred substantially all the risks and rewards of ownership. Realised and unrealised gains and losses arising from changes in fair value of investments held for trading are included in the income statement in the period in which they arise.

 

The fair value of quoted investments is based on current bid prices. The group assesses at each balance sheet date whether there is objective evidence that an investment is impaired.

 

Investments in subsidiaries

Investments in subsidiaries are stated at cost less provision for any impairment in value.

 

(l) Foreign Exchange

The group offers settlement of trades in various currencies, predominately Sterling, US dollars and Euros. The group does not hold any assets or liabilities other than in Sterling and converts client currency on matching terms to settlement of trades realising any currency gain or loss immediately in the income statement. Consequently the group has minimal foreign exchange risk.

 

(m) Share Capital

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from proceeds, net of income tax. Where the company purchases its equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income tax), is deducted from equity attributable to the company's equity holders until the shares are cancelled, reissued or disposed of.  Where such shares are subsequently sold or reissued, any consideration received, net of any directly incremental transaction costs and the related income tax effects, is included in equity attributable to the company's equity holders.

 
(n) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

 

(o) Current income tax

Current income tax assets and/or liabilities comprise those obligations to, or claims from, fiscal authorities relating to the current or prior reporting periods, that are unpaid at the balance sheet date.  They are calculated according to the tax rates and tax laws applicable to the fiscal periods to which they relate based on the taxable profit for the year.  

 
(p) Dividend distribution

Dividend distribution to the company's shareholders is recognised as a liability in the group's financial statements in the period in which interim dividends are paid to shareholders and final dividends are approved by the company's shareholders.

 

(q) Share based payments

The group applies the requirements of IFRS 2 Share-based Payment.

 

The group issues equity-settled share-based payments to certain employees and other personnel. Equity-settled share-based payments are measured at fair value (excluding the effect of non-market-based vesting conditions) at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the group's estimate of shares that will eventually vest and adjusted for the effects of non market-based vesting conditions.

 

The share option reserve represents the accumulated share option charge. The balance in the reserve has been transferred to retained earnings as all remaining options have been exercised during the prior year.

 

Fair value is measured by use of a Black-Scholes option pricing model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

 

(r) FRS 9 'Financial Instruments'

 

The group currently calculates a "bad debt" provision on customer balances based on 25% of overdrawn client accounts which are one month past due date and are not specifically provided for. Under IFRS 9 this assessment is required to be calculated based on a forward - looking expected credit loss ('ECL') model, for which a simplified approach will be applied. The new method will use historic customer data, alongside future economic conditions to calculate expected loss on receivables

 

The group has taken advantage of the exemption from restating comparative information for prior periods with respect to classification and measurement (including impairment) requirements.

 

The directors have assessed the impact of IFRS 9 on the financial statements and they consider there to be no material impact.

 

Financial Assets

Original classification under IAS 39

Original carrying amount under IAS 39
£'000

New classification under IFRS 9

New carrying amount under IFRS 9
£'000

Investments held for trading

Available for sale

1,956

Fair value through profit or loss

1,956

Cash and cash equivalents

Loans and receivables

4,655,473

Amortised cost

4,655,473

Other financial assets

Loans and receivables

5,010,417

Amortised cost

5,010,417

Total financial assets

 

9,667,846

 

9,667,846

 

The basis of classification for financial liabilities under IFRS 9 remains unchanged from under IAS 39. The two categories are amortised cost or fair value through profit or loss (either designated as such or held for trading).

 

 

3. Group revenue

 

The revenue of the group during the year was made in the United Kingdom and the revenue of the group for the year derives from the same class of business as noted in the Strategic Report.

 

2018

 

2017

 

£

 

£

Gross interest earned from treasury deposits, cash at bank and overdrawn client accounts

4,081,633

 

3,808,064

Commissions

Fees

3,754,725

2,214,209

 

4,141,315

1,474,057

 

10,050,567

 

9,423,436

 

4. Segmental information

 

All of the reported revenue and operational results for the period derive from the group's external customers and continuing financial services operations. All non-current assets are held within the United Kingdom.

 

The group is not reliant on any one customer and no customer accounts for more than 10% of the group's external revenues.

 

As noted in 2 (g) the directors regard the operations of the group as a single reporting segment on the basis there is only a single organisational unit that is reported to key management personnel for the purpose of performance assessment and future resource allocation.

 

 

5. Profit before income tax

 

 

2018

 

 

2017

Profit before income tax is stated after charging/(crediting):

£

 

£

Directors' emoluments

675,453

 

621,648

Depreciation - owned assets

7,581

 

10,229

Amortisation (included within administrative expenses in the consolidated income statement)

102,452

 

80,485

Operating lease rentals - hire of machinery

8,842

 

8,842

Operating lease rentals - land and buildings

87,500

 

70,850

Impairment of receivable charge

36,452

 

72,604

Bank transaction fees

58,798

 

70,071

 

  Details of directors' annual remuneration as at 31 December 2018 are set out below:

 

2018

 

2017

 

£

 

£

Short-term employee benefits

554,896

 

544,853

Post-employment benefits

110,502

 

67,463

Benefits in kind

10,055

 

9,332

 

675,453

 

621,648

Details of the highest paid director are as follows:

 

 

 

Aggregate emoluments

346,027

 

330,943

Company contributions to personal pension scheme

-

 

2,167

Benefits in kind

9,123

 

8,396

 

355,150

 

341,506

 

 

 

 

 

 

Emoluments & Benefits in kind

Pension

 

Total

Directors

 

 

 

 

£

£

 

£

Andrew J Grant

 

 

 

 

355,150

-

 

355,150

Nick J Crabb

 

 

 

 

100,001

51,995

 

151,996

Jolyon C Head

 

 

 

 

84,800

58,507

 

143,307

Graeme McAusland

 

 

 

 

25,000

-

 

25,000

TOTAL

 

 

 

 

564,951

110,502

 

675,453

 

During the year benefits accrued for two directors (2017: three directors) under a money purchase pension scheme.

 

Staff Costs

The average number of persons employed by the group, including directors, during the year was as follows:

 

2018

 

2017

Management and administration

57

 

50

The aggregate payroll costs of these persons were as follows:

£

 

£

Wages, salaries & social security

2,250,433

 

1,983,639

Pension contributions including salary sacrifice

129,217

 

82,818

 

2,379,650

 

2,066,457

 

  Key personnel

  The directors disclosed above are considered to be the key management personnel of the group. The total amount of employers NIC paid on behalf of key personal was £71,942 (2017: 70,541).

 

 

6. Auditors' remuneration

 

 

 

 

During the year the company obtained the following services from the company's auditors as detailed below:

 

2018

 

2017

 

£

 

£

Fees payable to the company's auditors for the audit of the company's annual financial statements

 

23,700

 

 

23,000

Fees payable to the company's auditors and its associates for other services:

 

 

 

The audit of the company's subsidiaries, pursuant to legislation

8,500

 

8,500

Total audit fees

32,200

 

31,500

Taxation Compliance

4,650

 

4,500

Other taxation advisory services not relating to compliance

-

 

5,220

 

36,850

 

41,220

 

The audit costs of the subsidiaries were invoiced to and met by Jarvis Securities plc.

 

7. Income and deferred tax charges - group

2018

 

2017

 

£

 

£

Based on the adjusted results for the year:

 

 

 

UK corporation tax

834,781

 

845,095

Adjustments in respect of prior years

(6,758)

 

(4,544)

Total current income tax

828,023

 

840,551

Deferred income tax:

 

 

 

Origination and reversal of timing differences

7,213

 

6,561

Adjustment in respect of prior years

(2,690)

 

20,056

Total deferred tax charge

4,523

 

26,617

 

832,546

 

867,168

 

The income tax assessed for the year is more than the standard rate of corporation tax in the UK (19%). The differences are explained below:

 

 

Profit before income tax

4,314,505

 

4,420,498

Profit before income tax multiplied by the standard rate of corporation tax in the UK of

19% (2017 - 19.25%)

 

819,756

 

 

850,794

Effects of:

 

 

 

Expenses not deductible for tax purposes

Redress Income not taxable

-

(1,186)

 

572

-

Adjustments to tax charge in respect of previous years

(9,449)

 

15,512

Ineligible depreciation

Adjust deferred tax rate to average rate of 19%

Deferred tax timing differences

Marginal relief

370

-

23,446

(392)

 

375

(85)

-

-

Current income tax charge for the years

832,545

 

867,168

 

Movement in (assets) / provision - group and company:

 

 

 

Provision at start of year

32,929

 

6,312

Deferred income tax charged in the year

4,522

 

26,617

Provision at end of year

37,451

 

32,929

 

 

 

 

 

 

 

 

 

Tangible Assets

Deferred tax liability brought forward

 

 

32,929

Current year

Prior year

 

 

7,213

(2,691)

Liability at end of year

 

 

37,451

 

8. Earnings per share

 

 

2018

 

2017

 

 

 

 

 

£

 

£

 

Earnings:

Earnings for the purposes of basic and diluted earnings per share

 

 

 

 

 

(profit for the period attributable to the equity holders of the parent)

 

3,481,959

 

3,553,330

 

 

Number of shares:

 

 

 

 

Weighted average number of ordinary shares for the purposes of basic earnings per share

10,951,450

 

10,966,610

 

 

 

 

 

 

 

10,951,450

 

10,966,610

 

               

 

Shares held in treasury are deducted for the purpose of calculating earnings per share.

 

9. Property, plant & equipment - group & company

 

Leasehold & Property

 

Leasehold

Improvements

 

Office

Equipment

 

 

Total

 

Cost:

 

 

 

£

£

£

 

£

At 1 January 2017

 

 

 

222,450

4,014

258,068

 

484,532

Additions

 

 

 

-

-

549

 

549

Disposals

 

 

 

-

-

-

 

-

At 31 December 2017

 

 

 

222,450

4,014

258,617

 

485,081

Additions

 

 

 

-

-

6,099

 

6,099

Disposals

 

 

 

-

-

-

 

-

At 31 December 2018

 

 

 

222,450

4,014

264,716

 

491,180

Depreciation:

 

 

 

 

 

 

 

 

At 1 January 2017

 

 

 

9,258

2,304

243,350

 

254,912

Charge for the year

 

 

 

1,949

357

7,923

 

10,229

On Disposal

 

 

 

-

-

-

 

-

At 31 December 2017

 

 

 

11,207

2,661

251,273

 

265,141

Charge for the year

 

 

 

1,949

1,353

4,280

 

7,582

On Disposal

 

 

 

-

-

-

 

-

At 31 December 2018

 

 

 

13,156

4,014

255,553

 

272,723

Net Book Value:

 

 

 

 

 

 

 

 

At 31 December 2018

 

 

 

209,294

-

9,163

 

218,457

 

 

 

 

 

 

 

 

 

At 31 December 2017

 

 

 

211,243

1,353

7,344

 

219,940

 

The net book value of non-depreciable land is £125,000 (2017: £125,000).

 

 

10. Intangible assets & goodwill - group & company

 

 

 

 

 

Intangible assets

 

 

 

Goodwill

 

Customer

Relationships

Databases

 

Software

Development

Website

 

Total

 

 

 

£

 

£

£

£

£

 

£

Cost:

 

 

 

 

 

 

 

 

 

At 1 January 2017

 

342,872

 

177,981

25,000

217,961

156,262

 

577,204

Additions

 

-

 

-

-

-

67,598

 

67,598

At 31 December 2017

 

342,872

 

177,981

25,000

217,961

223,860

 

644,802

Additions

 

-

 

-

-

8,400

37,853

 

46,253

At 31 December 2018

 

342,872

 

177,981

25,000

226,361

261,713

 

691,055

Amortisation:

 

 

 

 

 

 

 

 

 

At 1 January 2017

 

-

 

138,598

13,719

149,634

112,704

 

414,655

Charge for the year

 

-

 

18,292

1,000

36,574

24,619

 

80,485

At 31 December 2017

 

-

 

156,890

14,719

186,208

137,323

 

495,140

Charge for the year

 

-

 

18,291

1,000

32,921

50,240

 

102,452

At 31 December 2018

 

-

 

175,181

15,719

219,129

187,563

 

597,592

Net Book Value:

 

 

 

 

 

 

 

 

 

At 31 December 2018

 

342,872

 

2,800

9,281

7,232

74,150

 

93,463

 

 

 

 

 

 

 

 

 

 

At 31 December 2017

 

342,872

 

21,091

10,281

31,753

86,537

 

149,662

                     

 

Goodwill represents the difference between the consideration paid and the fair value of assets acquired on the acquisition of a business in 2003.  In accordance with the transitional provisions in IFRS 1 the group elected not to apply IFRS 3 retrospectively to past business combinations. Therefore the goodwill balance represents an acquired customer base, that continues to trade with the group to this day and, more fundamentally, systems, processes and a registration that dramatically reduced the group's dealing costs.  These systems and the registration contributed significantly to turning the group into the low cost effective provider of execution only stockbroking solutions that it is today. The key assumptions used by the directors in their annual impairment review are that the company can benefit indefinitely from the reduced dealing costs and the company's current operational capacity remains unchanged. The recoverable amount of the goodwill has been assessed using the value in use method and there is significant headroom based on this calculation. There are no reasonable changes in assumptions that would cause the cash generating unit value to fall below its carrying amount.

 

11. Investments in subsidiaries

 

 

Company

 

 

 

 

 

2018

 

2017

Unlisted Investments:

 

 

 

 

£

 

£

Cost:

 

 

 

 

 

 

 

At 1 January

 

 

 

 

284,239

 

284,239

As at 31 December

 

 

 

 

284,239

 

284,239

 

 

Shareholding

Holding

Business

Jarvis Investment Management Limited

100%

25,000,000

1p Ordinary shares

Financial administration

Dudley Road Nominees Limited*

100%

2

£1 Ordinary shares

Dormant nominee company

JIM Nominees Limited*

100%

1

£1 Ordinary shares

Dormant nominee company

Galleon Nominees Limited*

100%

2

£1 Ordinary shares

Dormant nominee company

 

 

 

 

 

All subsidiaries are located in the United Kingdom and their registered office is 78 Mount Ephraim, Tunbridge Wells, Kent, TN4 8BS.

* indirectly held

 

 

12. Trade and other receivables

 

Group

 

 

Company

 

 

 

 

Amounts falling due within one year:

2018

 

2017

 

2018

 

2017

 

£

 

£

 

£

 

£

 

 

 

 

 

 

 

 

Trade receivables

597,528

 

521,794

 

44,673

 

5,559

Settlement receivables

3,743,719

 

2,083,049

 

-

 

-

Other receivables

669,170

 

61,035

 

669,170

 

61,035

Prepayments and accrued income

Other taxes and social security

274,584

-

 

281,748

-

 

879

6,758

 

3,372

515

 

5,285,001

 

2,947,626

 

721,480

 

70,481

 

An analysis of trade and settlement receivables past due is given in note 25. There are no amounts past due included within other receivables or prepayments and accrued income.

 

13. Investments held for trading

Group

 

Company

 

 

2018

 

2017

 

2018

 

2017

 

Listed Investments:

£

 

£

 

£

 

£

 

Valuation:

 

 

 

 

 

 

 

 

At 1 January

13,546

 

1,712

 

-

 

-

 

Additions

661,352

 

1,644,356

 

-

 

-

 

Disposals

(672,942)

 

(1,632,522)

 

-

 

-

 

As at 31 December

1,956

 

13,546

 

-

 

-

 

 

 

Listed investments held for trading are stated at their market value at 31 December 2018 and are considered to be level one assets

in accordance with IFRS 13.

 

The directors consider the fair value movement on the investments held for trading are immaterial and as such have not

been presented separately in the above movement analysis and the statement of cash flows.

 

 

 

 

14. Cash and cash equivalents

 

Group

 

 

Company

 

 

2018

 

2017

 

2018

 

2017

 

 

£

 

£

 

£

 

£

 

Balance at bank and in hand - group/company

5,866,848

 

5,218,686

 

2,588,487

 

3,503,452

 

Cash held for settlement of market transactions

(1,211,375)

 

7,956,817

 

-

 

-

 

 

4,655,473

 

13,175,503

 

2,588,487

 

3,503,452

                             

 

In addition to the balances shown above the group has segregated deposit and current accounts held in accordance with the client money rules of the Financial Conduct Authority. The group also has segregated deposits and current accounts on behalf of Counterparties and elected Professional clients of £915,921 not governed by client money rules therefore they are also not included in the statement of financial position of the group. This treatment is appropriate as the business is a going concern however, were an administrator appointed, these balances would be considered assets of the business.

 

 

 

15. Share capital

 

 

 

2018

 

 

 

2017

Authorised:

16,000,000 Ordinary shares of 1p each

160,000 

160,000

 

160,000 

160,000

 

 

 

 

 

2018

 

2017

 

£

 

£

At 1 January 2018

111,828

 

111,518

Allotted, issued and fully paid during the year

-

 

310

 

Allotted, issued and fully paid:

 

 

 

11,182,750 (2017: 11,182,750) Ordinary shares of 1p each

111,828

 

111,828

 

The company has one class of ordinary shares which carry no right to fixed income.

 

The company had a share option scheme for certain employees of the group. All options were exercised on 2017.

 

There were no shares purchased to be held in treasury during the period. As at the period end 231,300 shares are held in treasury.

 

Details of the share options outstanding during the prior year are as follows:

 

 

 

 

2017

 

 

 

 

 

 

Number of share options

 

Weighted average exercise price

 

 

 

 

 

 

 

 

Pence

 

 

 

 

 

 

 

 

 

 

Outstanding at the beginning of the prior year

 

 

 

 

31,000

 

175.00

 

Exercised during the prior year

 

 

 

 

(31,000)

 

175.00

 

Outstanding at prior year end

 

 

 

 

-

 

175.00

 

Exercisable at prior year end

 

 

 

 

-

 

175.00

 

 

 

 

 

 

 

 

 

 

 

16. Trade and other payables

Group

 

Company

 

 

 

 

 

 

Amounts falling due within one year:

2018

 

2017

 

2018

 

2017

 

 

£

 

£

 

£

 

£

 

 

 

 

 

 

 

 

 

 

Trade payables

184,155

 

198,049

 

1,264

 

11,368

 

Settlement payables

2,426,874

 

9,954,871

 

-

 

-

 

Amount owed to group undertaking

-

 

-

 

668,822

 

1,100,410

 

Other taxes and social security

155,004

 

52,117

 

-

 

-

 

Other payables

615,668

 

85,193

 

-

 

-

 

Accruals

358,209

 

367,976

 

30,000

 

27,500

 

Trade and other payables

3,739,910

 

10,658,206

 

700,086

 

1,139,278

 

Income tax

447,843

 

585,373

 

357,728

 

443,677

 

Deferred tax

37,451

 

32,929

 

37,451

 

32,929

 

Total liabilities

4,225,204

 

11,276,508

 

1,095,265

 

1,615,884

 

                                   

 

Settlement payables will be settled on their contracted date, which has a maximum allowed time of 20 days from trade date. Trade payables and other taxes and social security are all paid at the beginning of the month after the invoice was received or the liability created.

 

17. Dividends

2018

 

2017

 

£

 

£

Interim dividends paid on Ordinary 1p shares

2,682,582

 

2,576,239

Dividend per Ordinary 1p share

24.5p

 

23.5p

 

Please refer to the directors' report for dividends declared post year end.
 

 

18. Operating lease commitments - group

 

At 31 December 2018 the group was committed to making the following payments in respect of operating leases which expire:

 

 

Equipment

 

Land & buildings

 

2018

 

2017

 

2018

 

2017

 

£

 

£

 

£

 

£

Not later than one year:

8,641

 

8,641

 

87,500

 

87,500

Later than one year and not later than five years:

After more than five years:

33,844

-

 

34,564

7,921

 

350,000

328,125

 

350,000

415,625

 

The equipment lease is for the use of postage processing and franking machines.

 

Operating lease commitments - company

 

At 31 December 2018 the company was committed to making the following payments in respect of operating leases which expire:

 

 

 

 

Land & buildings

 

 

 

 

 

2018

 

2017

 

 

 

 

 

£

 

£

Not later than one year:

 

 

 

 

87,500

 

87,500

Later than one year and not later than five years:

After more than five years:

 

 

 

 

350,000

328,125

 

350,000

415,625

 

 

The company has a lease with Sion Properties Limited, a company controlled by A J Grant, for the rental of 78 Mount Ephraim, a self-contained office building. The lease has an annual rental of £87,500, being the market rate on an arm's length basis, and expires on 26 September 2027.

 

19. Financial Instruments

 

The group's principal financial instruments comprise cash, short terms borrowings and various items such as trade receivables, trade payables etc. that arise directly from operations. The main purpose of these financial instruments is the funding of the group's trading activities. Cash and cash equivalents and trade and other receivables are categorised as held at amortised cost, and trade and other payables are classified as held at amortised cost. Other than investments held for trading all financial assets and liabilities are held at amortised cost and their carrying value approximates to their fair value.

 

The main financial asset of the group is cash and cash equivalents which is denominated in Sterling and which is detailed in note 14. The group operates a low risk investment policy and surplus funds are placed on deposit with at least A rated banks or equivalent at floating interest rates.

 

The group also holds investments in equities.

 

20. Critical accounting estimates and judgements

 

The group makes estimates and assumptions concerning the future. These estimates and judgements are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets within the next financial year relate to goodwill, intangible assets and bad debts.

 

The group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in Note 2 (e). These calculations require the use of estimates. The assumptions and sensitivity relating to the impairment tests are detailed in note 10.

 

The group considers at least annually whether there are indications that the carrying values of intangible assets may not be recoverable, or that the recoverable amounts may be less than the asset's carrying value, in which case an impairment review is performed. These calculations require the use of estimates. The group also calculates the implied levels of variables used in the calculations at which impairment would occur.

 

21. Immediate and ultimate parent undertaking

 

The company's immediate and ultimate parent undertaking is Sion Securities Limited, a company registered in England and Wales. Sion Securities Limited is controlled by Mr A J Grant by virtue of his controlling interest.

 

22. Related party transactions

 

The company has a lease with Sion Properties Limited, a company controlled by a director of the company, for the rental of 78 Mount Ephraim, a self-contained office building. The lease has an annual rental of £87,500, being the market rate on an arm's length basis, and expires on 26 September 2027.

 

During the year Jarvis Investment Management Limited paid Jarvis Securities Plc £7,000 (2017: £7,000) for rental of a disaster recovery site.

 

Jarvis Securities plc owed Jarvis Investment Management Limited £668,822 (2017: £1,098,660) at year end.

 

During the year, directors, key staff and other related parties by virtue of control carried out share dealing transactions in the normal course of business. Commissions for such transactions are charged at various discounted rates.  The impact of these transactions does not materially or significantly affect the financial position or performance of the company.   At 31 December 2018, these same related parties had cash balances of £288,458 (2017: £1,332,833) and interest was earned during the year amounting to £2,063 (2017: £8,395).  In addition to cash balances other equity assets of £36,381,672 (2017: £40,589,819) were held by JIM Nominees Ltd as custodian.

 

During the year Jarvis Securities Plc charged £3,671,242 (2017: £3,564,550) to Jarvis Investment Management Limited for use of intellectual properties.

 

23. Capital commitments

 

As of 31 December 2018, the company had no capital commitments (2017: nil).

 

24. Fair value estimation

 

The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the company is the current bid price. The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values.

 

25. Financial risk management objectives and policies

 

The directors consider that their main risk management objective is to monitor and mitigate the key risks to the group, which are considered to be principally credit risk, compliance risk, liquidity risk and operational risk.  Several high-level procedures are in place to enable all risks to be better controlled. These include detailed profit forecasts, cash flow forecasts, monthly management accounts and comparisons against forecast, regular meetings of the full board of directors, and more regular senior management meetings. 

 

The group's main credit risk is exposure to the trading accounts of clients. This credit risk is controlled via the use of credit algorithms within the computer systems of the subsidiary. These credit limits prevent the processing of trades in excess of the available maximum permitted margin at 100% of the current portfolio value of a client.

 

A further credit risk exists in respect of trade receivables. The group's policy is to monitor trade and other receivables and avoid significant concentrations of credit risk. Aged receivables reports are reviewed regularly and significant items brought to the attention of senior management.

 

The compliance risk of the group is controlled through the use of robust policies, procedures, the segregation of tasks, internal reviews and systems controls. These processes are based upon the Rules and guidance notes of the Financial Conduct Authority and the London Stock Exchange and are overseen by the compliance officer together with the management team. In addition, regular compliance performance information is prepared, reviewed and distributed to management.

 

The group aims to fund its expansion plans mainly from existing cash balances without making use of bank loans or overdraft facilities. Financial risk is therefore mitigated by the maintenance of positive cash balances and by the regular review of the banks used by the group. Other risks, including operational, reputational and legal risks are under constant review at senior management level by the executive directors and senior managers at their regular meetings, and by the full board at their regular meetings. 

 

The group derives a significant proportion of its revenue from interest earned on client cash deposits and does not have any borrowings. Hence, the directors do not consider the group to be materially exposed to interest rate risk in terms of the usual consideration of financing costs, but do note that there is a risk to earnings. Given the current Bank of England base rate is near its lowest level since its foundation in 1694, and the business has remained profitable, this risk is not considered material in terms of a threat to the long term prospects of the group.

 

The capital structure of the group consists of issued share capital, reserves and retained earnings. Jarvis Investment Management Limited has an Internal Capital Adequacy Assessment Process ("ICAAP"), as required by the Financial Conduct Authority ("FCA") for establishing the amount of regulatory capital to be held by that company. The ICAAP gives consideration to both current and projected financial and capital positions. The ICAAP is updated throughout the year to take account of any significant changes to business plans and any unexpected issues that may occur. The ICAAP is discussed and approved at a board meeting of the subsidiary at least annually. Capital adequacy is monitored daily by management. Jarvis Investment Management Limited uses the simplified approach to Credit Risk and the standardised approach for Operational Risk to calculate Pillar 1 requirements. Jarvis

Investment Management Limited observed the FCA's regulatory requirements throughout the period. Information disclosure under Pillar 3 of the Capital Requirements Directive is available from the group's websites.

 

The directors do not consider that the group is materially exposed to foreign exchange risk as the group does not run open currency positions beyond the end of each working day.

 

As of 31 December 2018, trade receivables of £131,923 (2017: £115,184) were past due and were impaired and partially provided for. The amount of the provision was £105,470 as at 31 December 2018 (2017: £84,995). The individually impaired receivables relate to clients who are in a loan position and who do not have adequate stock to cover these positions. The amount of the impairment is determined by clients' perceived willingness and ability to pay the debt, legal judgements obtained in respect of, charges secured on properties and payment plans in place and being adhered to. Where debts are determined to be irrecoverable they are written off through the income and expenditure account. The group does not anticipate future write offs of uncollectable amounts will be significant as the group now imposes much more restrictive rules on clients who utilise extended settlement facilities.

 

 

 

Group

 

Company

Provision of impairment of receivables:

2018

 

2017

 

2018

 

2017

 

£

 

£

 

£

 

£

 

 

 

 

 

 

 

 

At 1 January

84,995

 

299,711

 

-

 

-

Charge / (credit) for the year

36,452

 

72,604

 

-

 

-

Uncollectable amounts written off

(15,977)

 

(287,320)

 

-

 

-

At 31 December

105,470

 

84,995

 

-

 

-

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
FR JJMFTMBBBBIL

a d v e r t i s e m e n t