25 May 2010 07:00
Cavanagh Group plc
("Cavanagh" or "the Group")
Unaudited preliminary results for the year ended 31 December 2009
Cavanagh Group plc, one of the leading firms of Independent Financial Advisers, announces its unaudited preliminary results for the year ended 31 December 2009.
Financial Highlights
·; Revenue down by 8% to £16,077,000
·; Pre tax profit up nearly fourfold to £782,000
·; EBITDA of £1,572,000 up 26% (2008: £1,248,000)
·; Net cash generated from operations £1,871,000 up 50% (2008: £1,247,000)
·; Net debt (borrowings less cash) reduced to £402,000 from £2,174,000
·; Average revenue per adviser at £244k remains one of the highest in the Industry
Andrew Fay, Chief Executive, commented:
"2009 has seen Cavanagh continue to meet its aim to build an efficient and profitable model that delivers a high level service to our client base of private clients and Corporate firms. Our ability to manage the significant changes in market conditions has improved our trading performance quite significantly and at a time when we have also invested in the development of our future client proposition."
Cavanagh Group plc
Andrew Fay (Chief Executive) 01444 475400
Brewin Dolphin Investment Banking (NOMAD)
Andrew Emmott 08452134730
CHAIRMAN'S STATEMENT
Financial Results
I am pleased to report Cavanagh's results for the year ended 31 December 2009, which show profit before amortisation and tax expense of £1,277,381 up 64% (2008: £779,502) on revenue of £16,077,540 (2008: £17,502,485). Earnings before interest, depreciation, amortisation, tax and share based payment ("EBITDA") were up 26% at £1,571,604 (2008: £1,248,633) generating cash from operations of £1,870,501 (2008: £1,247,387) which has enabled the Group to further reduce its net debt to £401,686 at 31 December 2009 (2008: £2,173,777).
Following the instability experienced in the global financial markets during 2008 and subsequent UK recession in 2009, I consider these results reflect the stability and robustness of Cavanagh's business model.
Operations
At a time of economic turmoil and the consequent reticence of investors to move out of cash deposits we are pleased to report that at the end of the first full year of our discretionary fund management service, Cavanagh Asset Management, has now seen from its launch over £136m of assets placed on the platform, demonstrating the strength of options offered to our high net worth clients.
This has contributed to the increasing proportion (over 55%) of the Group's revenue being generated from recurring income, a key measure for the Board when it is committed to moving away from up-front commissions in order to comply with one of the main requirements of the FSA's Retail Distribution Review ("RDR").
Indeed, we are well on course to have a fully compliant RDR model well ahead of the anticipated 2012 deadline. I am able to say that as a business we have continued to make great strides towards our sales teams meeting the requisite professional qualifications by the end of 2011, a full year ahead of the proposed RDR timescale.
As a Group we have continued to offer and develop more transparent RDR compliant solutions. This in turn moves us closer to the model of customer agreed remuneration, in keeping with the 2012 proposals.
As previously reported it was considered essential to continue to improve our efficiency in a period of difficult trading. This involved the ongoing streamlining of our internal procedures and a cost reduction programme implemented in 2008 which continued during 2009 resulting in the lower level of overheads. However, in the last quarter of the year we began to invest in a new sales infrastructure which has started to generate revenue in the early part of 2010.
I am also pleased to report that following much detailed market research during 2009 we have recently appointed SEI to develop our own wealth management platform which will give us the opportunity to provide our clients with a high quality on-line solution which we hope to launch in the second half of 2010. SEI, a US Nasdaq listed company, does not offer its own products to the UK retail market so we are confident that they will help us to remain truly independent when our consultants provide financial advice to their clients.
Staff
Despite the difficult market conditions and the implementation of structural changes in the business model, our staff have continued to show tremendous commitment and loyalty to the Group and I would once again like to thank them, on behalf of the Board, for their dedication and commitment in helping Cavanagh retain its position as a respected independent financial adviser.
Share buy-back facility
At the forthcoming AGM the Company's will seek authority to buy-back up to 10% of its issued share capital. Although the Company has no current intention to make use of such authority, the Board is conscious that the shares are relatively illiquid and may consider using a buy-back to facilitate liquidity from time to time. A buy-back will only be considered when the Board is satisfied that it has sufficient cash resources to do so having taken account of the FSA's capital adequacy requirements and whether any suitable acquisition opportunities exist at the time.
Outlook
Although there appears to be less volatility in financial markets the fragility of the improvement in the UK economy means that we remain cautious in our outlook for 2010 and beyond; however, the Board considers that the Cavanagh business model is capable of adapting to any changes that may become necessary as the new RDR regulatory framework takes effect.
Paul Sinnett
Chairman
24 May 2010
CHIEF EXECUTIVE'S REVIEW
Overview
2009 has seen Cavanagh continue to meet its aim to build an efficient and profitable model that delivers a high level service to our client base of private clients and corporate firms. Our ability to manage the significant changes in market conditions has improved our trading performance quite significantly and at a time when we have also invested in the development of our future client proposition.
The Group has delivered on a number of key objectives to help position Cavanagh well for the impact of the RDR. We aim to maintain investment to improve the overall client experience and enable our clients to benefit from a wide range of very competitive wealth management and corporate solutions.
Business Highlights
Although the Chairman's statement has provided the headline results, I would like to highlight a number of key successes. Cavanagh Asset Management in its first full year, attracted an additional £118m of assets over the 12 months. Our investment proposition within the Wealth Management arm has been enhanced with this service and we will look to invest in further developments in the future.
We have won a pleasing level of corporate clients during 2009 and also maintained a profitable existing client base. With the 2009 employment and recruitment market mainly benign and salary increases within corporate businesses continuing in a fairly static position, the department has fared well and contributed very positively to the financial performance of the Group.
Our revenue per adviser has continued to be strong at £244,000 (2008: £233,000) and this again indicates the strong recurring revenue stream we maintain as a consequence of the service we offer and the value our clients receive; our current recurring revenue is in excess of 55% of our total income.
CPRM, the Group's specialist actuarial and advisory service has achieved steady results which again is mainly down to the quality of its client base, the service its clients have selected and the strong recurring income already in place which equates to 66% of this division's revenue.
Strategic Focus and Outlook
The Group will aim to continue to grow organically and focus on building a highly efficient and profitable model that delivers a high level service to our well spread client base. Although the recent economic climate has reduced the opportunities for considering acquisitions, where we can see clear benefits and can demonstrate the value to our model and thereby enhance value, we will continue to consider appropriate targets.
Cavanagh continues to work to ensure Treating Customers Fairly ("TCF") remains a primary focus within the organisation as we work to maintain and improve our proposition to our clients and evidence positive consumer outcomes.
Our staff continue to be supported with further training to develop their knowledge and skills with a programme to help all advisers to be QCA4 qualified by the end of 2011, well ahead of the implementation of RDR recommendations.
At this stage of 2010 l see the Group continuing to be cautious but focused on investing further in the quality of our proposition.
Andrew Fay
Chief Executive
24 May 2010
CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2009
|
|
|
| 2009 | 2008 |
|
|
| Notes | £ | £ |
| REVENUE | 16,077,540 | 17,502,485 |
|
|
|
|
| Cost of sales | (8,680,523) | (10,075,354) |
|
| --------------------------------------------------------------- | --------------------------------------------------------------- |
| GROSS PROFIT | 7,397,017 | 7,427,131 |
| Administrative expenses excluding depreciation and amortisation | (5,937,032) | (6,274,421) | |
| Share of joint venture profit after tax | 111,619 | 95,923 | |
|
|
| --------------------------------------------------------------- | ------------------------------------------------------------------ |
| EARNINGS BEFORE INTEREST, DEPRECIATION, AMORTISATION, SHARE BASED PAYMENT AND TAX |
| 1,571,604 | 1,248,633 |
| Share based payment |
| (6,187) | (65,009) |
| Depreciation |
| (188,971) | (213,399) |
| Amortisation and impairment |
| (494,959) | (571,739) |
| Finance income |
| 30,811 | 138,792 |
| Finance costs |
| (129,876) | (329,515) |
|
| -------------------------------------------------------------- | --------------------------------------------------------------- | |
| PROFIT BEFORE TAX EXPENSE | 782,422 | 207,763 | |
| Tax expense | 3 | (173,074) | (110,602) |
|
| ------------------------------------------------------------- | ---------------------------------------------------------------- | |
| PROFIT FOR THE FINANCIAL YEAR | 609,348 | 97,161 | |
|
| ==================================================================== | ==================================================================== | |
| PROFIT ATTRIBUTABLE TO :
|
|
|
|
| Owners of Parent company |
| 576,113 | 67,411 |
| Non Controlling Interest |
| 33,235 | 29,750 |
|
|
| --------------------------------------------------------------- | --------------------------------------------------------------- |
|
|
| 609,348 | 97,161 |
|
|
| ==================================================================== | ==================================================================== |
|
|
|
|
|
| Basic earnings per share - pence | 4 | 5.0 | 0.6 |
| Diluted earnings per share - pence | 4 | 5.0 | 0.6 |
The profit arises from the Group's continuing operations.
No separate Consolidated Statement of Comprehensive Income has been presented as all income and expenses have been dealt with in the Consolidated Income Statement.
CONSOLIDATED BALANCE SHEET
As at 31 December 2009
|
|
|
| 2009 | 2008 |
|
|
| Notes | £ | £ |
ASSETS
Non-current assets
| Property, plant and equipment |
| 127,409 | 374,303 | |
| Intangible assets |
| 5,445,182 | 5,934,790 | |
| Investments accounted for using the equity method |
| 4,000 | 4,000 | |
| Deferred tax asset |
| 134,856 | 85,206 | |
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- | ||
|
| 5,711,447 | 6,398,299 | ||
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- | ||
| Current assets |
|
|
| |
| Trade and other receivables |
| 1,320,796 | 1,761,936 | |
| Cash and cash equivalents |
| 2,790,814 | 2,213,323 | |
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- | ||
|
| 4,111,610 | 3,975,259 | ||
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- | ||
| TOTAL ASSETS | 9,823,057 | 10,373,558 | ||
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- | ||
| LIABILITIES |
|
| ||
| Current liabilities |
|
| ||
| Trade and other payables |
| 1,753,600 | 2,031,904 | |
| Corporation tax payable |
| 363,881 | 95,900 | |
| Borrowings |
| 1,269,600 | 1,194,600 | |
| Provisions |
| 302,279 | - | |
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- | ||
|
| 3,689,360 | 3,322,404 | ||
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- | ||
| Non-current liabilities |
|
| ||
| Borrowings |
| 1,922,900 | 3,192,500 | |
| Provisions |
| 69,278 | 176,557 | |
| Deferred tax liability |
| 658,708 | 797,646 | |
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- | ||
|
|
| 2,650,886 | 4,166,703 | |
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- | ||
| TOTAL LIABILITIES | 6,340,246 | 7,489,107 | ||
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- | ||
| NET ASSETS | 3,482,811 | 2,884,451 | ||
|
| ==================================================================== | ==================================================================== | ||
| EQUITY |
|
| ||
| Issued share capital |
| 115,970 | 115,970 | |
| Share premium account |
| 7,434 | 7,434 | |
| Share based payment reserve |
| 238,362 | 255,584 | |
| Retained earnings |
| 3,044,110 | 2,444,588 | |
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- | ||
| TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | 3,405,876 | 2,823,576 | ||
|
|
|
| ||
| Non Controlling Interests | 76,935 | 60,875 | ||
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- | ||
| TOTAL EQUITY | 3,482,811 | 2,884,451 | ||
|
| ==================================================================== | ==================================================================== == | ||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2009
|
|
Share capital | Share premium account | Share based payment reserve |
Retained earnings | Equity available to the Group |
Non Controlling Interest |
Total |
|
| £ | £ | £ | £ | £ | £ | £ |
|
|
|
|
|
|
|
|
|
| At 1 January 2008 |
115,205 |
3,742,647 |
222,942 | (1,502,137) | 2,578,657 | 50,625 | 2,629,282 |
|
|
|
|
|
|
|
|
|
| Profit for the year | - | - | - | 67,411 | 67,411 | 29,750 | 97,161 |
|
|
|
|
|
|
|
|
|
| Total comprehensive income for the year | - | - | - | 67,411 | 67,411 | 29,750 | 97,161 |
| Transactions with owners in their capacity as owners |
|
|
|
|
|
|
|
| - Issue of new shares |
765 |
111,734 |
- |
- | 112,499 |
- |
112,499 |
| - Share premium reduction |
- |
(3,846,947) |
- |
3,846,947 | - |
- |
- |
| - Dividends | - | - | - | - | - | (19,500) | (19,500) |
| Total transactions with owners in their capacity as owners | 765 | (3,735,213) | - | 3,846,947 | 112,499 | (19,500) | 92,999 |
| Reserves transfer in respect of lapsed options |
- |
- | (32,367) |
32,367 | - |
- | - |
| Share based payment charge |
- |
- |
65,009 |
- | 65,009 |
- |
65,009 |
|
| --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- |
| At 31 December 2008 | 115,970 | 7,434 | 255,584 | 2,444,588 | 2,823,576 | 60,875 | 2,884,451 |
|
|
|
|
|
|
|
|
|
| Profit for the year | - | - | - | 576,113 | 576,113 | 33,235 | 609,348 |
|
|
|
|
|
|
|
|
|
| Total comprehensive income for the year | - | - | - | 576,113 | 576,113 | 33,235 | 609,348 |
| Transactions with owners in their capacity as owners |
|
|
|
|
|
|
|
| - Dividends | - | - | - | - | - | (17,175) | (17,175) |
| Total transactions with owners in their capacity as owners | - | - | - | - | - | (17,175) | (17,175) |
| Reserves transfer in respect of lapsed options | - | - | (23,409) | 23,409 | - | - | - |
| Share based payment charge | - | - | 6,187 | - | 6,187 | - | 6,187 |
|
| --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- |
| At 31 December 2009 | 115,970 | 7,434 | 238,362 | 3,044,110 | 3,405,876 | 76,935 | 3,482,811 |
|
| ======================= | ======================= | ======================= | ======================= | ======================= | ======================= | ======================= |
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2009
2009 2008
£ £
| CASH FLOW FROM OPERATING ACTIVITIES |
|
|
|
| Profit before tax |
| 782,422 | 207,763 |
|
|
|
|
|
| Share of profit in joint venture |
| (111,619) | (95,923) |
| Share based payment |
| 6,187 | 65,009 |
| Depreciation |
| 188,971 | 213,399 |
| Amortisation and impairment |
| 494,959 | 571,739 |
| Decrease in trade and other receivables |
| 467,759 | 512,381 |
| Decrease in trade and other payables |
| (278,304) | (384,921) |
| Increase/(decrease) in provisions |
| 195,000 | (32,783) |
| Finance costs (net) |
| 99,065 | 190,723 |
| Loss on disposal of property |
| 26,061 | - |
|
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- |
| NET CASH GENERATED FROM OPERATIONS |
| 1,870,501 | 1,247,387 |
| Corporation tax paid |
| (93,681) | (311,264) |
| Interest paid |
| (129,876) | (329,515) |
|
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- |
| NET CASH INFLOW FROM OPERATING ACTIVITIES |
| 1,646,944 | 606,608 |
|
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- |
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
| Payments to acquire property, plant and equipment |
| (30,280) | (143,453) |
| Payments to acquire intangible assets |
| (5,351) | (65,963) |
| Payment to purchase share of Joint Venture |
| - | (2,000) |
| Interest received |
| 30,811 | 138,792 |
| Income received from joint venture |
| 85,000 | 120,000 |
| Income received from sales of property |
| 62,142 | - |
|
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- |
| NET CASH INFLOW FROM INVESTING ACTIVITIES |
| 142,322 | 47,376 |
|
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- |
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
| Repayment of borrowings |
| (1,194,600) | (1,132,027) |
| Proceeds from issue of new shares |
| - | 112,499 |
| Dividend paid to Non Controlling Interest shareholders |
| (17,175) | (19,500) |
|
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- |
| NET CASH OUTFLOW FROM FINANCING |
| (1,211,775) | (1,039,028) |
|
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- |
| Net increase/(decrease) in cash and cash equivalents |
| 577,491 | (385,044) |
| Cash and cash equivalents at the beginning of the financial year |
| 2,213,323 | 2,598,367 |
|
|
| ---------------------------------------------------------------- | --------------------------------------------------------------- |
| Cash and cash equivalents at the end of the financial year |
| 2,790,814 | 2,213,323 |
|
|
| ==================================================================== | ==================================================================== |
|
|
|
|
|
|
|
|
|
|
NOTES TO THE PRELIMINARY RESULTS
1 BASIS OF PREPARATION
The preliminary financial information in this statement does not constitute full accounts within the meaning of section 435 of the Companies Act 2006 but is derived from accounts for the years ended 31 December 2009 and 31 December 2008. The financial information for the year ended 31 December 2008 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The Auditors reported on those accounts; their report was unqualified and did not contain any statement under Section 237 (2) or (3) of the Companies Act 1985. The audit of the statutory accounts for the year ended 31 December 2009 is not yet complete, but the Auditors expect to provide an unqualified report. These accounts will be finalised on the basis of the financial information presented by the Directors in this unaudited preliminary announcement.
While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), this announcement does not in itself contain sufficient information to comply with IFRS. The preliminary announcement is prepared on the same basis as set out in the statutory accounts for the year ended 31 December 2009.
Cavanagh Group plc is incorporated and domiciled in the United Kingdom.
The following new accounting standards, amendments and interpretations became effective and were adopted during the year ended 31 December 2009.
IFRS 8 'Operating Segments'
The group has adopted IFRS 8 'Operating Segments' during the year. The standard supersedes IAS 14 'Segment Reporting' and is effective for the year ended 31 December 2009. IFRS 8 provides segmental information for the Group on the basis of information reported internally to the chief operating decision-maker for decision-making purposes. The Group considers that the role of chief operating decision-maker is performed by the Cavanagh Group plc's Board of directors. IAS 14 required segmental information to be reported for business segments and geographical segments based on assets and operations that provided products or services subject to different risks and returns. The adoption of IFRS 8 has not had any impact on the performance or position of the Group.
IAS 1 (revised) Presentation of Financial Statements requires a new performance statement, the statement of comprehensive income, to report all non owner changes in equity. No separate statement has been presented as all income and expenses have been dealt with in the Consolidated Income Statement.
2 SEGMENTAL INFORMATION
| Segmental information is presented on the basis of the two segments reported internally to the chief operating decision maker, being independent financial advice and actuarial segments. All operations are continuing and are carried out within the United Kingdom, which is treated as one geographical market. |
|
| 2009 | 2009 | 2009 | 2008 | 2008 | 2008 |
|
| Total | IFA | Actuarial | Total | IFA | Actuarial |
|
| £ | £ | £ | £ | £ | £ |
|
|
|
|
|
|
|
|
| Revenue | 16,077,540 | 14,551,602 | 1,525,938 | 17,502,485 | 16,072,024 | 1,430,461 |
|
| ======================= | ======================= | ======================= | ======================= | ======================= | ======================= |
| Earnings before interest, depreciation, amortisation, share based payment, joint venture profits and tax | 1,459,985 | 1,305,776 | 154,209 | 1,152,710 | 1,034,560 | 118,150 |
|
|
|
|
|
|
|
|
| Share of joint venture profit after tax | 111,619 | 111,619 | - | 95,923 | 95,923 | - |
|
|
|
|
|
|
|
|
|
| --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- |
| Earnings before interest, depreciation, amortisation, share based payment and tax | 1,571,604 | 1,417,395 | 154,209 | 1,248,633 | 1,130,483 | 118,150 |
|
|
|
|
|
|
|
|
| Share based payment | (6,187) | (6,187) | - | (65,009) | (70,017) | 5,008 |
|
|
|
|
|
|
|
|
| Finance income | 30,811 | 30,150 | 661 | 138,792 | 132,450 | 6,342 |
|
|
|
|
|
|
|
|
| Finance costs | (129,876) | (129,876) | - | (329,515) | (329,515) | - |
|
|
|
|
|
|
|
|
| Depreciation | (188,971) | (186,471) | (2,500) | (213,399) | (212,982) | (417) |
|
|
|
|
|
|
|
|
| Amortisation | (494,959) | (494,959) | - | (571,739) | (571,739) | - |
| Tax expense | (173,074) | (131,483) | (41,591) | (110,602) | (76,935) | (33,667) |
|
| --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- |
| Segmental profit | 609,348 | 498,569 | 110,779 | 97,161 | 1,745 | 95,416 |
|
| ======================= | ======================= | ======================= | ======================= | ======================= | ======================= |
| Segmental assets | 9,819,057 | 9,400,065 | 418,992 | 10,369,558 | 9,951,004 | 418, 554 |
|
|
|
|
|
|
|
|
| Share of gross assets in joint venture investment | 66,180 | 66,180 | - | 41,212 | 41,212 | - |
|
|
|
|
|
|
|
|
| Share of gross liabilities in joint venture investment | (62,180) | (62,180) | - | (37,212) | (37,212) | - |
|
| --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- |
| Total assets | 9,823,057 | 9,404,065 | 418,992 | 10,373,558 | 9,955,004 | 418,554 |
|
|
|
|
|
|
|
|
| Segmental liabilities | (6,340,246) | (6,178,704) | (161,542) | (7,489,107) | (7,274,474) | (214,633) |
|
| --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------- |
| Segmental total net assets | 3,482,811 | 3,225,361 | 257,450 | 2,884,451 | 2,680,530 | 203,921 |
|
| ======================= | ======================= | ======================= | ======================= | ======================= | ======================= |
Revenue represents sales to external customers. There were no inter segment sales in the year.
3 TAX EXPENSE
|
| 2009 £ | 2008 £ |
| Current tax: |
|
|
| Corporation tax at 28% (2008: 28.5%) | 363,881 | 95,901 |
| Adjustment in respect of prior years | (2,219) | 1,416 |
|
| --------------------------------------------------------- | --------------------------------------------------------- |
| Total current tax | 361,662 | 97,317 |
|
|
|
|
| Deferred tax: |
|
|
|
|
|
|
| Current year credit | (188,588) | (31,169) |
| Adjustments in respect of prior years | - | 44,454 |
|
|
|
|
|
| --------------------------------------------------------- | --------------------------------------------------------- |
| Income tax expense | 173,074 | 110,602 |
|
| ======== == == == ===================================================== | ======= == == == == ===================================================== |
The charge for the year can be reconciled to the profit per the Income Statement as follows:
|
| 2009 £ | 2008 £ |
|
|
|
|
| Profit before tax expense | 782,422 | 207,763 |
| Less Share of joint venture profit after tax | (111,619) | (95,923) |
|
| --------------------------------------------------------- | --------------------------------------------------------- |
| Profit before tax excluding share of joint venture | 670,803 | 111,840 |
|
| ====================== == == == == ===================================== | ====== == == == == ===================================================== |
|
| 2009 | 2008 |
|
| £ | £ |
| Tax at the UK corporation tax rate of 28% (2008: 28.5%) | 187,825 | 31,874 |
| Expenses not deductible for tax purposes | 10,932 | 39,949 |
| Other | (23,464) | (3,477) |
| (Over) / under provision in prior year | (2,219) | 45,870 |
| Marginal relief | - | (3,614) |
|
| --------------------------------------------------------- | --------------------------------------------------------- |
| Income tax expense | 173,074 | 110,602 |
|
| ====================== == == == == ====================================== | ====== == == == == ===================================================== |
|
|
|
|
4 EARNINGS PER SHARE
|
| 2009 | 2008 |
|
| £ | £ |
|
|
|
|
| Profit for the financial year after taxation attributable to Equity holders (earnings for the purpose of basic earnings per share) | 576,113 | 67,411 |
|
| ===================================================== | ===================================================== |
| Weighted average number of shares | No | No |
| For basic earnings per ordinary share | 11,597,047 | 11,613,401 |
| Exercise of share options | - | 41,802 |
|
| --------------------------------------------------------- | --------------------------------------------------------- |
| For diluted earnings per ordinary share | 11,597,047 | 11,655,203 |
|
| ===================================================== | ===================================================== |
|
|
|
|
| Earnings per ordinary share - basic | 5.0p | 0.6p |
|
| ==== == == == == ===================================================== | ===================================================== |
|
|
|
|
| Earnings per ordinary share - diluted | 5.0p | 0.6p |
|
| ============== | ===================================================== |
5 GENERAL INFORMATION
The Board of directors of Cavanagh Group plc approved these results on 24May 2010.
The statutory accounts will be posted to shareholders in due course. Further copies will be available to the public, free of charge, at the company's registered office, The Courtyard, Staplefield Road, Cuckfield, West Sussex RH17 5JT and from the company's website www.cavanagh.co.uk.
The Annual General Meeting will be held at The Courtyard, Staplefield Road, Cuckfield, West Sussex on Wednesday 30 June 2010 at 10.00.