Internet Explorer is not actively supported by WH Ireland. To make sure you’re able to use all features, switch to a compatible web browser, such as Google Chrome or Apple Safari.

Interim Results

Posted on 21 Jul 2016 by WH Ireland Group plc
RNS Number : 7983E
W.H. Ireland Group PLC
21 July 2016
 

WH Ireland Group Plc

 

(“WH Ireland” or the “Company”)

 

Interim Results

for the six months ended 31 May 2016

 

WHIreland, the financial services group which provides private wealth management and corporate broking services, today, announces its interim results for its financial half year ended 31 May 2016.

 

FINANCIAL HIGHLIGHTS

●

·      Group turnover of £12.0m (2015 comparative: £15.9m)

●

·      Operating loss before exceptional items of £1.1m (2015 comparative: profit of £0.3m)

●

·      Heads of Terms agreed for sale of Manchester Freehold Property

●

·      Recurring revenue increased by 10% to £5.6m (2015 comparative: £5.1m), which represents 47% of total revenue

●

·      Assets under management and administration increased by 6% to £2.672bn (30 November 2015: £2,520m)

●

·      Discretionary assets under management increased by 24% to £949m (30 November 2015: £767m)

●

·      Management fee income increased by 15% to £4.0m (2015 comparative: £3.4m)

●

·      Number of retained corporate clients: 95 (30 November 2015: 98)

 




 

Chairman’s statement

 

WHIreland continues to undergo significant transformational change which I described in my Chairman’s statement at our 2015 year end. The interim results demonstrate both the continuing requirement for change and also the benefits, we believe, that this change will bring about when fully implemented.

 

Transactional income, primarily within the Corporate Broking division, fell considerably when compared with the same period a year ago as the UK stock market remained moribund over fears on Chinese growth, commodity price deflation and, more recently, the “Brexit” referendum. The Wealth Management division was not insulated from this increased uncertainty and this has been reflected in lower commission levels as a result of reduced client trading activity.

 

Change within WHIreland is being driven at many levels and in this context we have recently announced our intention to partner with SEI Corporation to provide a more robust operational platform to support the Wealth Management division. This will, when fully implemented, provide a significantly enhanced service for our clients. We have also made progress with the sale of our freehold property in Manchester and have agreed Heads of Terms for its sale. Whilst there is no guarantee the transaction will complete, the sale proceeds would provide greater balance sheet liquidity and greater flexibility as we look to develop both businesses and we look forward to providing further updates in due course.

 

Within the Private Wealth Management division, the focus on our discretionary offering has resulted in strong growth and we are able to report nearly £1bn of discretionary assets for the first time in the Company’s history. Our focus on recurring fee income has shown similar positive growth over the first half of the year.

 

The resilience and strength of our client relationships in our Corporate Broking division has been borne out by the loyalty shown by our clients during a difficult period following the settlement agreement with our lead regulator, the Financial Conduct Authority (“FCA”). We can now look forward to making available our full range of services as we look to help our clients achieve their corporate objectives.

 

Finally, I would like to thank all members of staff across the Company who have worked tirelessly in supporting our clients, during what has been a very challenging first half of the year.

 

Tim Steel, Chairman WH Ireland Group plc


 

 

 

 


 

Chief Executive’s statement

 

 

 

 


As the Chairman has stated, the first six months of the year has been a challenging period for stock markets and, consequently, for WHIreland. The figures released today reflect some one-off, non-trading costs which have been incurred as a direct result of the changes that we announced earlier in the year.

 

These include severance payments, legal and advisory fees and temporary employment costs within our Compliance department. In addition, we have incurred legal costs in relation to the establishment of our partnership with SEI Corporation announced in early June. In total, these incremental one-off costs have amounted to approximately £600,000 during the period.

 

Transaction revenue, in the first half, was significantly lower as our corporate and institutional clients were reluctant to raise new capital or invest. When combined with lower client commissions within our Private Wealth Management division, our total transactional income across the business was lower by approximately £4m when compared to the same period a year ago. It is against this backdrop that a trading loss of approximately £1m needs to be measured and, whilst disappointing, demonstrates the strong oversight on operational costs which we have  maintained throughout the period.

 

PRIVATE WEALTH MANAGEMENT DIVISION

We continue to concentrate on the delivery of our core strategic focus, namely the pursuit of fee paying clients through the delivery of either discretionary or advisory services. To accelerate this strategy, we have announced a partnership with SEI Corporation to provide us with the necessary operational tools to service the increased requirements that these clients demand. It is pleasing to be able to report that, since the beginning of the year, our total assets under management and administration have increased to approximately £2.7bn as at 31 May 2016 and that within this figure, the fastest growing segment was the discretionary service proposition. Management fee income across the division rose by 15% to approximately £4m during the period.

 

CORPORATE BROKING DIVISION

It is not unsurprising that, during a period when we were prevented by the FCA from undertaking regulated activities for a period of 72 days, this division reported a significant decline in transactional income. Despite this, our retainer income remained solid reflecting our consistently strong emphasis upon maintaining and growing our corporate client list. This also demonstrates the considerable loyalty afforded to us by our clients during this difficult period. Whilst the total number of retained clients fell by 3 to 95 at the half year primarily due to delistings, we still saw a number of smaller transactions completed towards the end of the period. I am cautiously optimistic that the number of corporate clients  whom we advise will once again grow in number.

 

OUTLOOK

The UK EU referendum result, rather than removing uncertainty which all market participants sought, has created more, albeit different, uncertainties. This is not good for short-term sentiment and I fear that over the summer months investor confidence will remain very cautious and risk averse. This will therefore continue to impact the trading outlook for both of our divisions.

 

Against this potential poor backdrop to markets, we continue to focus both on improvement in revenue quality across the Company and the increase in shareholder value which the initiatives already announced will have when fully implemented. We remain focused upon tight operational cost control and have further reduced costs, since the half year end.

 

The Corporate Broking division is working on a number of potential transactions which, if completed, will provide a significant revenue increase in the second half of the year, whilst the Private Wealth Management division is continuing to build on the enhanced service proposition and pricing review initiatives.

 

Whilst the short-term outlook is unclear, market disruption which we have seen in the past few weeks has historically generated some considerable opportunities across both business lines.  We will continue to keep all avenues open to take advantage of such opportunities as they arise.

 

Richard Killingbeck, CEO WH Ireland Group plc


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME – UNAUDITED FOR THE HALF-YEAR ENDED 31 MAY 2016

 

 


 

Half-year ended

31 May 2016

£’000

 

Half-year ended

31 May 2015

£’000

Year ended 30 November 2015 (audited) £’000

 

 

Note

 

Revenue

2

11,960

15,942

30,884

 

Administrative expenses


(13,626)

(15,626)

(30,936)

 

Operating (loss)/profit


(1,666)

316

(52)

 






 

Operating (loss)/profit before exceptional items

(1,098)

316

1,225

Exceptional items    –  FCA fine

–

–

(1,200)

                                   – FCA investigation expenses

(384)

–

(77)

– restructuring costs

(184)

–

–

Operating (loss)/profit after exceptional items

(1,666)

316

(52)





 

Investment gains/(losses)

7

(98)

(89)

 

Fair value (losses)/gains on investments

(38)

385

(185)

 

Finance income

7

16

21

 

Finance expense

(96)

(26)

(41)

 

(Loss)/profit before tax

(1,786)

593

(346)

 

Tax credit/(expense)

269

(141)

(335)

 

(Loss)/profit and total comprehensive income for the period

(1,517)

452

(681)

 






Earnings per share

 





Basic

6

(5.95)p

1.86p

(2.81)p

Diluted

6

(5.95)p

1.82p

(2.81)p


CONSOLIDATED STATEMENT OF FINANCIAL POSITION – UNAUDITED FOR THE HALF-YEAR ENDED 31 MAY 2016

 

 

Note

 

Half-year ended

31 May 2016

£’000

 

Half-year ended

31 May 2015

£’000

Year ended 30 November 2015

(audited)

£’000

 

ASSETS





 

Non-current assets





 

Property, plant and equipment

8

1,314

5,500

5,361

 

Goodwill


258

258

258

 

Intangible assets


3,586

3,502

3,586

 

Investments

3

227

456

360

 

Deferred tax asset


567

350

298

 



5,952

10,066

9,863

 

Current assets





 

Trade and other receivables


26,466

20,919

23,312

 

Assets held for sale

8

4,750

–

–

 

Trading investments

3

286

261

1,932

 

Cash and cash equivalents

4

6,890

5,903

8,176

 



38,392

27,083

33,420

 

Total assets


44,344

37,149

43,283

 

 






 

LIABILITIES





 

Current liabilities





 

Trade and other payables


(26,141)

(17,685)

(24,059)

 

Corporation Tax payable


(24)

(443)

(262)

 

Obligations under finance leases


(331)

(119)

(119)

 

Deferred consideration


(242)

–

(262)

 

Borrowings


(174)

(174)

(179)

 

Provisions for liabilities and charges


(50)

(45)

(1,200)

 



(26,962)

(18,466)

(26,081)

 

Non-current liabilities





 

Deferred tax liability


(126)

(205)

(126)

 

Obligations under finance leases


(493)

(50)

(50)

 

Accruals and deferred income


(285)

(3,461)

(330)

 

Borrowings


(905)

(1,081)

(994)

 

Deferred consideration


(2,968)

–

(2,863)

 

Provisions for liabilities and charges


(35)

(35)

(21)

 



(4,812)

(4,832)

(4,334)

 

Total liabilities


(31,774)

(23,298)

(30,415)

 

Total net assets


12,570

13,851

12,868

 






 

EQUITY





 

Share capital

5

1,290

1,222

1,225

 

Share premium


1,443

343

379

 

Available-for-sale reserve


7

7

7

 

Other reserves


982

982

982

 

Retained earnings


9,579

12,033

11,006

 

Treasury shares


(731)

(736)

(731)

 

Total equity


12,570

13,851

12,868


CONSOLIDATED STATEMENT OF CASH FLOWS – UNAUDITED FOR THE HALF-YEAR ENDED 31 MAY 2016

 


 

Half-year ended

31 May 2016

£’000

 

Half-year ended

31 May 2015

£’000

Year ended 30 November 2015 (audited) £’000

 


 

OPERATING ACTIVITIES





 

(Loss)/profit for the period


(1,517)

452

(681)

 

Adjustments for





 

Depreciation, amortisation and impairment


147

169

310

 

Finance income


(7)

(16)

(21)

 

Finance expense


96

26

41

 

Taxation


(269)

141

335

 

Gain/(losses) in investments


126

(363)

96

 

Non-cash adjustment for share based payments


90

108

211

 

(Increase)/decrease in trade and other receivables


(3,154)

17,425

15,033

 

Increase/(decrease) in trade and other payables*


2,037

(20,172)

(13,877)

 

(Decrease)/increase in provisions


(1,012)

(130)

1,011

 

Decrease/(increase) in trading investments


1,646

629

(1,042)

 

Net cash (used in)/generated from operations


(1,817)

(1,731)

1,416

 

Income taxes (paid)/received


(238)

4

(398)

 

Net cash (used in)/generated from operating activities


(2,055)

(1,727)

1,018

 

 

INVESTING ACTIVITIES*





 

Proceeds from the sale of investments


397

646

904

 

Interest received


7

16

21

 

Acquisition of investments


(390)

(160)

(781)

 

Payment of deferred consideration


(39)

–

–

 

Acquisition of property, plant and equipment


(5)

(60)

(74)

 

Net cash (used in)/generated from investing activities


(30)

442

70

 

 

FINANCING ACTIVITIES





Proceeds from issue of shares


1,129

313

360

Repayment of borrowings


(94)

(93)

(175)

Repayment of obligations under finance leases


(140)

(48)

(109)

Interest paid


(96)

(37)

(41)

Dividends paid


–

(437)

(437)

Net cash generated from/(used in) financing activities


799

(302)

(402)

Net (decrease)/increase in cash and cash equivalents


(1,286)

(1,587)

686

Cash and cash equivalents at beginning of period


8,176

7,490

7,490

Cash and cash equivalents at end of period


6,890

5,903

8,176

 

* The investing activities and movement in trade and other payables for the half-year ended 31 May 2015, do not include the acquisition of intangibles for deferred payments of £3,052m, treated as a non-cash item.


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY – UNAUDITED FOR THE HALF-YEAR ENDED 31 MAY 2016

 

AS AT 1 DECEMBER 2014

 

Share capital

£’000

 

Share premium

£’000

Available for sale reserve

£’000

 

Other reserves

£’000

 

Retained earnings

£’000

 

Treasury shares

£’000

 

Total equity

£’000

Balance at 1 December 2014

1,193

101

7

982

11,895

(763)

13,415

Profit and total comprehensive income for the period

–

–

–

–

452

–

452

 

 

CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

 

 

 

 

 

 

 

Recognition of share-based payments

–

–

–

–

108

–

108

Share options exercised

29

242

–

–

15

27

313

Dividends (note 7)

–

–

–

–

(437)

–

(437)

Total contributions by and distributions to owners

29

242

–

–

(314)

27

(16)

 

AS AT  31 MAY 2015

 

 

 

 

 

 

 

Balance at 31 May 2015

1,222

343

7

982

12,033

(736)

13,851

Loss and total comprehensive income for the period

–

–

–

–

(1,133)

–

(1,133)

 

 

CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

 

 

 

 

 

 

 

Recognition of share-based payments

–

–

–

–

103

–

103

Share options exercised

3

36

–

–

3

5

47

Dividends (note 7)

–

–

–

–

–

–

–

Total contributions by and distributions to owners

3

36

–

–

106

5

150

 

AS AT 30 NOVEMBER 2015

 

 

 

 

 

 

 

Balance at 30 November 2015

1,225

379

7

982

11,006

(731)

12,868

Loss and total comprehensive income for the period

–

–

–

–

(1,517)

–

(1,517)

 

 

CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS








Recognition of share-based payments

–

–

–

–

90

–

90

Capital raise (note 5)

60

1,014

–

–

–

–

1,074

Share options exercised

5

50

–

–

–

–

55

Dividends (note 7)

–

–

–

–

–

–

0

Total contributions by and distributions to owners

65

1,064

–

–

90

–

1,219

Balance at 31 May 2016

1,290

1,443

7

982

9,579

(731)

12,570


Notes to consolidated statements (unaudited)

 

1.   BASIS OF PREPARATION

 

Statement of compliance

 

The AIM Rules for Companies do not require IAS 34 “Interim Financial Reporting” to be applied; therefore it has not been used in the preparation of this interim report.

 

The financial information in this interim report has been prepared in accordance with the disclosure requirements of the Alternative Investment Market (“AIM”) Rules and the recognition and measurements of International Financial Reporting Standards (“IFRS”), as adopted by the European Union (EU).

 

The interim report does not include all of the information required for full annual financial statements.

The accounting policies adopted by the Group in the preparation of its 2016 interim report are those which the Group currently expects to adopt in its annual financial statements for the year ending 30 November 2016 and are consistent with those disclosed in the annual financial statements for the year ended 30 November 2015.

 

The financial information for the period ended 31 May 2016 does not constitute the Company’s statutory accounts. The statutory accounts for the year ended 30 November 2015 have been delivered to the Registrar of Companies in England and Wales. The auditor has reported on those accounts. Its report was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under Section 498(2) or 498(3) of the Companies Act 2006. The financial information for the half year ended 31 May 2016 and 31 May 2015 is unaudited.

 

The AIM Rules for Companies do not require IAS 34 “Interim Financial Reporting” to be applied; therefore it has not been used in the preparation of this interim report.

 

Going concern

 

The financial statements of the Group have been prepared on a going concern basis. In making this assessment, the Directors have prepared detailed financial forecasts for the period to November 2018 which consider the funding and capital position of the Group. Those forecasts make assumptions in respect of future trading conditions, notably the economic environment and its impact on the Group’s revenues and costs. In addition to this, the nature of the Group’s business is such that there can be considerable variation in the timing of cash inflows. The forecasts take into account foreseeable downside risks, based on the information that is available to the Directors at the time of the approval of these financial statements.

 

Certain activities of the Group are regulated by the Financial Conduct Authority (FCA) which is the statutory regulator for financial services business in the UK and has responsibility for policy, monitoring and discipline for the financial services industry. The FCA requires the Group’s capital resources to be adequate; that is sufficient in terms of quantity, quality and availability, in relation to its regulated activities. The Directors monitor the Group’s regulatory capital resources on a daily basis and they have developed appropriate scenario tests and corrective management plans which they are prepared to implement to address any potential deficit as required. These actions may include cost reductions, regulatory capital optimisation programs or further capital raising. The Directors consider that, taking account of foreseeable downside risks, regulatory capital requirements will continue to be met.

 

The Directors most recently renewed the Group’s banking facilities in February 2016. As an evergreen facility there is no requirement to update the agreement annually, although a formal review of facilities is undertaken at least annually.

 

2.   SEGMENTAL REPORTING

The Group has two operating segments.

 

The Private Wealth Management division offers investment management advice and services to individuals and contains the Group’s Wealth Planning business, giving advice on and acting as intermediary for a range of financial products. The Corporate Broking division provides corporate finance and corporate broking advice and services to companies and acts as Nominated Adviser to clients listed on AIM. It also contains the Group’s 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.

The segment “Other Group companies” includes WH Ireland Group plc, WH Ireland (IOM) Limited, Readycount Limited and Stockholm Investments Limited.




 

All segments are located in the UK or the Isle of Man. Each reportable segment has a segment manager, who is directly accountable to and maintains regular contact with, the CEO.

 

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.

 

Private Wealth Management

£’000

Corporate Broking

£’000

Head Office

£’000

Other Group companies

£’000

Group

£’000

AS AT 31 MAY 2016

REVENUE

8,530

3,124

–

306

11,960

Segment result

(911)

(1,027)

–

272

(1,666)

Executive Board cost

186

186

(456)

84

–

Investment gains

–

7

–

–

7

Fair value gains/(losses) on investments

30

(68)

–

–

(38)

Finance income

6

–

–

1

7

Finance expense

(82)

(4)

–

(10)

(96)

(Loss)/profit before tax

(771)

(906)

(456)

347

(1,786)

Tax income/(expense)

144

165

–

(40)

269

(Loss)/profit for the period

(627)

(741)

(456)

307

(1,517)


Private Wealth Management

£’000

Corporate Broking

£’000

Head Office

£’000

Other Group companies

£’000

Group

£’000


AS AT 31 MAY 2015

REVENUE

10,915

4,869

–

158

15,942

Segment result

501

(283)

–

98

316

Executive Board cost

169

169

(454)

116

–

Investment gains/(losses)

(8)

(90)

–

–

(98)

Fair value gains/(losses) on investments

(11)

396

–

–

385

Finance income

15

–

–

1

16

Finance expense

(11)

(4)

–

(11)

(26)

Profit/(loss) before tax

655

189

(454)

203

593

Tax (expense)/income

(22)

(130)

–

11

(141)

Profit/(loss) for the period

633

59

(454)

214

452

 

Private Wealth Management

£’000

Corporate Broking

£’000

Head Office

£’000

Other Group companies

£’000

Group

£’000

AS AT 30 NOVEMBER 2015 (AUDITED)

REVENUE

20,594

9,936

–

354

30,884

Segment result

445

414

(1,200)

289

(52)

Executive Board cost

286

286

(786)

214

–

Investment gains

(8)

(82)

–

1

(89)

Fair value gains/(losses) on investments

(12)

(173)

–

–

(185)

Finance income

19

–

–

2

21

Finance expense

(13)

(6)

–

(22)

(41)

Profit/(loss) before tax

717

439

(1,986)

484

(346)

Tax expense

(175)

(107)

–

(53)

(335)

Profit/(loss) for the year

542

332

(1,986)

431

(681)


3.     INVESTMENTS

 

 

Half-year ended

31 May 2016

£’000

 

Half-year ended

31 May 2015

£’000

Year ended 30 November 2015

(audited)

£’000

AVAILABLE FOR SALE INVESTMENTS




Fair value: unquoted

40

93

40

Total

40

93

40

OTHER INVESTMENTS

 

 

 

Fair value: quoted

102

196

140

Fair value: warrants

85

167

180

Total

187

363

320

Total investments

227

456

360

 

Quoted and unquoted investments include equity investments other than those in subsidiary undertakings.  Warrants may be received during the ordinary course of business; there is no cash consideration associated with the acquisition.

 

Fair value, in the case of quoted investments, represents the bid price at the reporting 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.

 

Half-year ended

31 May 2016

£’000

 

Half-year ended

31 May 2015

£’000

Year ended 30 November 2015

(audited)

£’000

TRADING INVESTMENTS




Listed investments

286

261

1,932

Total

286

261

1,932

 

Investments are measured at fair value, which is determined directly by reference to published prices in an active market where available.

 

4.       CASH, CASH EQUIVALENTS AND BANK OVERDRAFTS

For the purposes of the statement of cash flows, cash and cash equivalents comprise cash in hand and deposits with banks and financial institutions with a maturity of up to three months.

 

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

 

Money held on behalf of clients is not included in the statement of financial position. Client money at 31 May 2016 was £111.6m (31 May 2015: £130.8m; 30 November 2015: £97.6m).

 

5.     SHARE CAPITAL

The total number of authorised ordinary shares is 34.5 million shares of 5p each (31 May 2015 and 30 November 2015: 34.5 million). The total number of issued ordinary shares is 25.8 million shares of 5p each (31 May 2015: 24.4 million and 30 November 2015: 24.5 million).

 

On 23rd February 2016, WH Ireland Group plc placed 1,193,000 ordinary shares from its authorised share capital at an issue price of 90p.




 

 

6.     EARNINGS PER SHARE

Basic earnings per share (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 conversion into fully paid shares of the weighted average number of all dilutive employee share options outstanding during the period. At 31 May 2016: nil (31 May 2015: 34,838 and 30 November 2015: nil) options were excluded from the EPS calculation as they were anti-dilutive. In a period when the company presents positive earnings attributable to ordinary shareholders, anti-dilutive options represent options issued where the exercise price is greater than the average market price for the period.

Reconciliation of the earnings and weighted average number of shares used in the calculations are set out below.

 

 

Half-year ended

31 May 2016

‘000

 

Half-year ended

31 May 2015

‘000

Year ended 30 November 2015

(audited)

‘000

Weighted average number of shares in issue during the period

25,480

24,268

24,287

Effect of dilutive share options

764

611

705


26,244

24,879

24,992


 

£’000

 

£’000

 

£’000

Earnings attributable to ordinary shareholders

(1,517)

452

(681)

 

BASIC EPS




Continuing operations

(5.95)p

1.86p

(2.81)p

 

DILUTED EPS




Continuing operations

(5.95)p

1.82p

(2.81)p

 

7.     DIVIDENDS

A final dividend of 2.0p per share, in respect of the year ended 30 November 2014, was approved by shareholders at the Annual General Meeting held on 26 March 2015. This was subsequently paid on 10 April 2015. No interim dividend has been paid or proposed in respect of the current financial year (2015: nil).

 

8.     SUBSEQUENT EVENTS

On 2 June 2016, WH Ireland Group plc announced that it had executed a seven year agreement with SEI Investments (Europe) Limited to outsource its Private Wealth Management back office operations. In addition, and as referenced in the Chairman’s statement, the Group has agreed Heads of Terms for its freehold property in Manchester.  Accordingly as at 31 May 2016, it is classified as assets held for sale.

 

9.     AVAILABILITY OF INTERIM REPORT

Copies of this Report can be downloaded from the Company’s website at www.wh-ireland.co.uk


 

Independent review to WHIreland

 

INTRODUCTION

We have been engaged by the company to review the interim financial information in the interim report for the six months ended 31 May 2016 which comprises the Consolidated statement of comprehensive income, Consolidated statement of financial position, Consolidated statement of cash flows, Consolidated statement of changes in equity and related notes.

 

We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial information.

 

DIRECTORS’ RESPONSIBILITIES

The interim report, including the interim financial information contained therein, is the responsibility of and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on AIM which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the company’s annual accounts having regard to the accounting standards applicable to such annual accounts.

 

OUR RESPONSIBILITY

Our responsibility is to express to the company a conclusion on the interim financial information in the interim report based on our review.

Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on AIM and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.

 

SCOPE OF REVIEW

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ”Review of Interim Financial Information Performed by the Independent Auditor of the Entity”, issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the interim financial information in the interim report for the six months ended 31 May 2016 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on AIM.

 

 

 

 

BDO LLP

Chartered Accountants

London

United Kingdom

20 July 2016

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).


 

 

 

Advisers

 

AUDITORS

BDO LLP

55 Baker Street London

W1U 7EU

 

BANKERS

Bank of Scotland

2nd Floor,

1 Lochrin Square 92-98 Fountainbridge

Edinburgh, EH3 9QA

 

BROKER 

WH Ireland Limited

11 St James’s Square Manchester, M2 6WH

 

COMPANY NUMBER

3870190

 

COMPANY SECRETARY AND REGISTERED OFFICE

Katy Mitchell

5th Floor

24 Martin Lane London, EC4R 0DR

 

FINANCIAL PR ADVISERS

Tim Robertson
Novella Communications
Garrick House
1 Garrick Road
London, W1J 7AF

 

NOMINATED ADVISER

Spark Advisory Partners

5 St. John’s Lane London, EC1M 4BH

 

REGISTRARS

Neville Registrars Limited Neville House

18 Laurel Lane Halesowen

West Midlands, B63 3DA

 

 


 

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

END

 
 

IR SEFFWSFMSEFW