Last checked at 11 Jun 2008 07:00
DRV
DRIVER GROUP PLC
("Driver Group" or "the Group")
Interim Results for the six months ended 31 March 2008
Driver Group provides specialist commercial and dispute resolution services to the construction industry.
KEY POINTS
Trading / Operational:
Expanding rapidly with benefits from last year's recruitment drive coming through
Completed acquisition of Commercial Management Consultants Limited ("CMC"), in February, for £2.975m- Strategic move into site-based project services in the UK- CMC's Managing Director, Bob Parfitt, joined the board as Executive Director
Growth in sales and profit of UK Business- London office profits increased dramatically following initiatives to improve productivity
Continuing to expand international operations, particularly within the UAE- UAE operations secured five new contracts- Number of fee-earners in the Middle East increased from 18 at end September 2007 to 34 at end March 2008
Financial:
Strong 27% growth in revenue to £7.5m (2007: £5.9m)
Pre-tax profit up 36% to £918,000 (2007: £675,000)
CMC's one month contribution added £312,000 of sales and £32,000 of pre-tax profit
Gross margin improved by 3 percentage points to 40%, reflecting higher charge-out rates
Interim dividend of 0.95p per share (2007: 0.95p) recommended
Positive prospects for the future
Steve Driver, Chief Executive Officer, commented,
"We are very pleased with these results, which reflect the benefits of last year's drive to increase our fee-earning capability. We are now in possession of a stronger and broader structure for future growth, and thus in a better position to take advantage of the substantial opportunities available to us, within the UK and abroad. We are also delighted to report the completed acquisition of CMC, which represents an important strategic move for Driver, enabling us to provide expertise at all points in the life-cycle of a construction project.
Given the substantial opportunities identified in the South of England, UAE and Oman, and the new opportunities to develop complementary business streams with CMC, we remain positive about the prospects for the future."
Enquiries:
| Driver Group plc | Steve Driver, Chief Executive Colin White, Finance Director | T: 020 7448 1000 (today) T: 01706 244 172 |
| Zeus Capital (NOMAD) | Alex Clarkson Nick Cowles | T: 0161 831 1512 |
| Panmure Gordon (UK) Limited | Mark Lander Aubrey Powell | T: 020 7459 3600 |
| Biddicks | Katie Tzouliadis Sophie Lane | T: 020 7448 1000 |
CHAIRMAN'S STATEMENT
Introduction
I am pleased to report on a successful six month period for Driver Group. The business has grown strongly and, as our results show, we are now seeing the continuing benefits of our recruitment drive last year to expand the number of fee-earners within the Group.
In the first half of the financial year, the principal areas of growth have been in the Southern Region of the UK and in the United Arab Emirates ("UAE"), where we are continuing to expand significantly given the substantial opportunities available to us. Towards the end of the second quarter, we were delighted to announce the acquisition of Commercial Management Consultants Limited ("CMC"), the site-based project services consultancy.
Financial Review
Revenue for the six months to 31 March 2008 grew strongly, increasing by 27% to £7.5m over the corresponding period (2007: £5.9m). The Group's gross margin improved by 3 percentage points to 40% reflecting higher charge-out rates. Pre-tax profit rose by 36% over the year to £918,000 (2007: £675,000). Our acquisition, CMC, made a one month contribution to the Company's first half performance, adding £312,000 of sales and £32,000 to pre-tax profit. Basic earnings per share for the half year rose by 35% to 2.7p (2006: 2.0p).
Cash generation remained strong with cash generated from operations of £350,000 (2007: £315,000). Net cash (before borrowings) at the 31 March 2008 was £720,000 (£855,000 as at 30 September 2007). The Group borrowed £1.475m to fund the cash element of the purchase price for CMC. Consequently the Group had net borrowings, after deducting this loan and the pre-existing mortgage loan, of £1.037m (30 September 2007: net cash of £226,000).
The financial accounts for the half year have been prepared for the first time under International Financial Reporting Standards ("IFRS") and accordingly, the Company's results for the prior year have been restated. The effect of restating prior period results under IFRS has reduced reported profit before tax for the six months to 31 March 2007 by £76,000, and by £79,000 for the year ended 30 September 2007. Details of the adjustments, including reconciliations of the balance sheets as at 1 October 2006, 31 March 2007 and 30 September 2007, are provided in the attached notes to the Interim accounts. In summary, the changes related primarily to: property valuations and depreciation of buildings; accruing for employee benefits; and deferred tax.
Dividend
The Board is pleased to declare an interim dividend of 0.95p per share (2007: 0.95p) which will be paid on 24 July 2008 to shareholders on the register on 20 June 2008.
CMC acquisition
On 29 February 2008, we successfully completed the acquisition of CMC for £2.975m payable in cash and shares.
Established in 1979 and with four offices in the UK, CMC provides site-based project services, including quantity surveying and planning, to construction and engineering firms throughout the UK. In particular, it has a well-established presence in the rail, utilities, highways, building, water, airports and marine sectors. The addition of CMC to the Group is strategically advantageous, enabling us to provide a broader range of pre and post contract services and so offer increased expertise at all points in the life-cycle of a construction project. The business brings with it 45 fee earners.
I am pleased to report that the integration of CMC is proceeding well and we believe that the combination of our respective skills, market experience and strength as well as customer contacts, will benefit both businesses significantly.
At the completion of the acquisition, we were delighted to welcome CMC's Managing Director, Bob Parfitt, to the board of Driver as an Executive Director.
Trading performance
The UK business performed very well in the first half, with half year on half year sales growth of 18%. In particular, our London office saw a significant increase in sales on last year, following the initiatives taken to improve productivity in the second half of last year. Consequently profits from our London office increased dramatically. We are also very pleased with the continuing expansion of our international operations, particularly within the UAE, which saw sales more than double over the same period last year. Having invested in fee-earning staff in both the UK and UAE over the course of the last financial year, I am pleased to report that staff utilisation levels over the period were high and we have been able to implement increases in charge out rates for consulting work in a number of sectors.
Within the UK, the growth in sales and profit has demonstrated both the continuing demand for the Group's expertise and the recognition by our clients of the professional service they receive from our people. An increasing client base and developing relationships, reputation and latterly cross referrals between Driver and CMC have all contributed to the continued growth in the first half of the financial year. The work we are involved with in the UK remains broadly spread across a wide range of sectors including: nuclear, utilities, public sector services, energy, transport and civil engineering.
We anticipate continuing strong demand for both our specialist commercial services and our dispute resolution services, over the next few years. In addition, our move to larger premises in London last year has provided us with the capacity to accommodate and build on the growth we are experiencing in London and the South East.
The main focus of our international business is within the UAE and it is testimony to the reputation we have worked hard to develop since entering this market in 2005 that we are now involved with some of the largest and most high profile projects in this region. Over the first half, we secured another five contracts, and we also expanded the number of fee-earners in the region from 18 at the financial year end in September 2007 to 34 at the end of the first half in March 2008. We are looking to increase our headcount further still in the second half.
The acquisition of CMC saw the expansion of the Group's business into site-based project services in the UK and has already resulted in substantial opportunities for the Group. Some of the benefits of acquiring CMC will be reflected in the second half of this year, with the full benefits expected to become more apparent in the following financial year.
Outlook
As we look ahead to the remainder of the year, our focus remains to develop our business in the South of England and in the UAE and Oman, where there are continuing and substantial opportunities. Our growth plans are underpinned by our ability to operate throughout all sub-sectors within the construction and engineering industries, from building to nuclear, oil & gas and IT. Additionally, the acquisition of CMC brings with it new opportunities for us to develop complementary business streams.
With the acquisition of CMC and the progress made in securing significant and sustained growth we remain positive about prospects for the future.
Consolidated Income Statement (Unaudited)
For the six months ended 31 March 2008
| 6 months ended 31 March 2008 | 6 months ended 31 March 2007 | Year ended 30 September 2007 | |
| £'000 | £'000 | £'000 | |
| REVENUE | 7,533 | 5,937 | 12,684 |
| Cost of sales | (4,544) | (3,747) | (8,218) |
| GROSS PROFIT | 2,989 | 2,190 | 4,466 |
| Other operating income | 64 | 53 | 109 |
| Administrative expenses | (2,120) | (1,573) | (3,533) |
| OPERATING PROFIT | |||
| Before pension settlement and share-based payment | 933 | 706 | 1,600 |
| Pension settlement cost | - | - | (485) |
| Share-based payment | - | (36) | (73) |
| 933 | 670 | 1,042 | |
| Finance income | 4 | 23 | 32 |
| Finance costs | (19) | (18) | (39) |
| PROFIT BEFORE TAX | 918 | 675 | 1,035 |
| Taxation | (275) | (212) | (365) |
| PROFIT FOR THE PERIOD | 643 | 463 | 670 |
| Profit attributable to minority interests | 4 | 2 | 16 |
| Profit attributable to equity shareholders | 639 | 461 | 654 |
| 643 | 463 | 670 | |
| Basic earnings per share (pence) (note 4) | 2.7p | 2.0p | 2.8p |
| Diluted earnings per share (pence) (note 4) | 2.7p | 2.0p | 2.8p |
Consolidated Statement of Changes in Shareholders' Equity (Unaudited)
For the six months ended 31 March 2008
| | Share capital | Share premium | Merger reserve | Other reserves | Retained earnings | Own shares | Total | Minority interest | Total Equity |
| | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| Opening shareholders’ funds at 1 October 2007 | 99 | 2,649 | - | 112 | 3,086 | (1,242) | 4,704 | 16 | 4,720 |
| | | | | | | | | | |
| Exchange adjustments | - | - | - | 5 | - | - | 5 | - | 5 |
| | | | | | | | | | |
| NET INCOME RECOGNISED DIRECTLY IN EQUITY | - | - | - | 5 | - | - | 5 | - | 5 |
| Profit for the period | - | - | - | - | 639 | - | 639 | 4 | 643 |
| | | | | | | | | | |
| TOTAL RECOGNISED INCOME AND EXPENSE | - | - | - | 5 | 639 | - | 644 | 4 | 648 |
| Issue of new shares | 7 | - | 1,493 | - | - | - | 1,500 | - | 1,500 |
| Dividends | - | - | - | - | (438) | - | (438) | (16) | (454) |
| Share-based payment | - | - | - | (3) | - | - | (3) | - | (3) |
| | | | | | | | | | |
| CLOSING SHAREHOLDERS’ FUNDS AT 31 MARCH 2008 | 106 | 2,649 | 1,493 | 114 | 3,287 | (1,242) | 6,407 | 4 | 6,411 |
Consolidated Statement of Changes in Shareholders' Equity (Unaudited)
For the six months ended 31 March 2007
| | Share capital | Share premium | Other reserves | Retained earnings | Own shares | Total | Minority interest | Total Equity |
| | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| Opening shareholders’ funds at 1 October 2006 | 99 | 2,649 | 29 | 3,088 | (1,242) | 4,623 | - | 4,623 |
| | | | | | | | | |
| Profit for the period | - | - | - | 461 | - | 461 | 2 | 463 |
| | | | | | | | | |
| TOTAL RECOGNISED INCOME AND EXPENSE | - | - | - | 461 | - | 461 | 2 | 463 |
| Dividends | - | - | - | (438) | - | (438) | - | (438) |
| Share–based payment | - | - | 52 | - | - | 52 | - | 52 |
| | | | | | | | | |
| CLOSING SHAREHOLDERS’ FUNDS AT 31 MARCH 2007 | 99 | 2,649 | 81 | 3,111 | (1,242) | 4,698 | 2 | 4,700 |
| | Share capital | Share premium | Other reserves | Retained earnings | Own shares | Total | Minority interest | Total Equity |
| | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| | | | | | | | | |
| Opening shareholders’ funds at 1 October 2006 | 99 | 2,649 | 29 | 3,088 | (1,242) | 4,623 | - | 4,623 |
| | | | | | | | | |
| Exchange adjustments | - | - | 1 | - | - | 1 | - | 1 |
| | | | | | | | | |
| NET INCOME RECOGNISED DIRECTLY IN EQUITY | - | - | 1 | - | - | 1 | - | 1 |
| Profit for the period | - | - | - | 654 | - | 654 | 16 | 670 |
| | | | | | | | | |
| TOTAL RECOGNISED INCOME AND EXPENSE | - | - | 1 | 654 | - | 655 | 16 | 671 |
| Dividends | - | - | - | (656) | - | (656) | - | (656) |
| Share–based payment | - | - | 82 | - | - | 82 | - | 82 |
| | | | | | | | | |
| CLOSING SHAREHOLDERS’ FUNDS AT 30 SEPTEMBER 2007 | 99 | 2,649 | 112 | 3,086 | (1,242) | 4,704 | 16 | 4,720 |
Consolidated Balance Sheet (Unaudited)
31 March 2008
| 31 March 2008 | 31 March 2007 | 30 September 2007 | |
| £'000 | £'000 | £'000 | |
| NON-CURRENT ASSETS | |||
| Goodwill | 2,356 | - | - |
| Property, plant and equipment | 3,083 | 3,042 | 3,104 |
| Deferred tax asset | 26 | 32 | 29 |
| 5,465 | 3,074 | 3,133 | |
| CURRENT ASSETS | |||
| Trade and other receivables | 4,768 | 3,359 | 3,227 |
| Cash and cash equivalents | 720 | 929 | 855 |
| 5,488 | 4,288 | 4,082 | |
| TOTAL ASSETS | 10,953 | 7,362 | 7,215 |
| CURRENT LIABILITIES | |||
| Borrowings | (244) | (213) | (450) |
| Trade and other payables | (1,955) | (1,191) | (1,353) |
| Current tax payable | (495) | (675) | (172) |
| (2,694) | (2,079) | (1,975) | |
| NON-CURRENT LIABILITIES | |||
| Borrowings | (1,513) | (266) | (179) |
| Deferred tax liabilities | (335) | (317) | (341) |
| (1,848) | (583) | (520) | |
| TOTAL LIABILITIES | (4,542) | (2,662) | (2,495) |
| NET ASSETS | 6,411 | 4,700 | 4,720 |
| SHAREHOLDERS' EQUITY | |||
| Share capital | 106 | 99 | 99 |
| Share premium | 2,649 | 2,649 | 2,649 |
| Merger reserve | 1,493 | - | - |
| Currency translation reserve | 6 | - | 1 |
| Capital redemption reserve | 18 | 18 | 18 |
| Other reserves | 90 | 63 | 93 |
| Retained earnings | 3,287 | 3,111 | 3,086 |
| Own shares | (1,242) | (1,242) | (1,242) |
| TOTAL SHAREHOLDERS' EQUITY | 6,407 | 4,698 | 4,704 |
| MINORITY INTEREST IN EQUITY | 4 | 2 | 16 |
| TOTAL EQUITY | 6,411 | 4,700 | 4,720 |
Consolidated Cash Flow Statement (Unaudited)
For the six months ended 31 March 2008
| 6 months ended 31 March 2008 | 6 months ended 31 March 2007 | Year ended 30 September 2007 | |
| £'000 | £'000 | £'000 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Profit before taxation | |||
| Before pension settlement and share-based payments | 918 | 711 | 1,593 |
| Pension settlement cost | - | - | (485) |
| Share-based payments | - | (36) | (73) |
| 918 | 675 | 1,035 | |
| Adjustments for: | |||
| Depreciation | 82 | 87 | 84 |
| Loss on sale of property, plant and equipment | - | 2 | 23 |
| Finance income | (4) | (23) | (32) |
| Finance costs | 19 | 18 | 39 |
| Equity settled share-based payment expenses | - | 36 | 73 |
| OPERATING CASH FLOW BEFORE CHANGES IN WORKING CAPITAL AND PROVISIONS | 1,015 | 795 | 1,222 |
| Increase in trade and other receivables | (821) | (650) | (518) |
| Increase in trade and other payables | 156 | 170 | 332 |
| CASH GENERATED FROM OPERATIONS | 350 | 315 | 1,036 |
| Tax received/(paid) | (96) | 41 | (594) |
| NET CASH INFLOW FROM OPERATING ACTIVITIES | 254 | 356 | 442 |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Interest received | 4 | 23 | 32 |
| Acquisition of subsidiary net of cash acquired | (1,003) | - | - |
| Acquisition of property, plant and equipment | (46) | (167) | (245) |
| NET CASH OUTFLOW FROM INVESTING ACTIVITIES | (1,045) | (144) | (213) |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Interest paid | (19) | (18) | (39) |
| Borrowings | 1,129 | (144) | 4 |
| Payment of equity dividends | (454) | (438) | (656) |
| NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES | 656 | (600) | (691) |
| Net decrease in cash and cash equivalents | (135) | (388) | (462) |
| Cash and cash equivalents at start of period | 855 | 1,317 | 1,317 |
| CASH AND CASH EQUIVALENT AT END OF PERIOD | 720 | 929 | 855 |
| 6 months ended 31 March 2008 | 6 months ended 31 March 2007 | Year ended 30 September 2007 | |
| £'000 | £'000 | £'000 | |
| Profit for the financial period | 639 | 461 | 654 |
| Pension settlement cost after tax | - | - | 339 |
| Share-based payments after tax | - | 26 | 52 |
| Profit for the financial period before pension settlement and share-based payments | 639 | 487 | 1,045 |
| Weighted average number of shares: | |||
| Ordinary shares in issue | 25,011,796 | 24,732,874 | 24,732,874 |
| Shares held by EBT | (1,700,645) | (1,700,645) | (1,700,645) |
| Basic weighted average number of shares | 23,311,151 | 23,032,229 | 23,032,229 |
| Issuable on conversion of options | 124,720 | 335,505 | 332,746 |
| Issuable on conversion of warrants | 99,457 | 259,640 | 261,656 |
| Diluted weighted average number of shares | 23,535,328 | 23,627,374 | 23,626,631 |
| Basic earnings per share before exceptional items and share-based payments | 2.7p | 2.1p | 4.5p |
| Basic earnings per share (pence) | 2.7p | 2.0p | 2.8p |
| Diluted earnings per share (pence) | 2.7p | 2.0p | 2.8p |
| | Provisional fair value to the group £’000 |
| Assets | |
| Property, plant and equipment | 14 |
| Trade and other receivables | 721 |
| Cash and cash equivalents | 592 |
| | |
| Liabilities | |
| Trade and other payables | (584) |
| Deferred tax liabilities | (4) |
| | |
| Net assets | 739 |
| Goodwill | 2,356 |
| Cost of acquisition | (120) |
| | |
| | 2,975 |
| | |
| Consideration satisfied by | |
| Shares issued | 1,500 |
| Cash | 1,475 |
| | |
| | 2,975 |
Independent Review Report to Driver Group plc
Introduction
We have been engaged by the company to review the condensed set of financial statements in the interim report for the six months ended 31 March 2008 which comprises the Consolidated Income Statement, the Consolidated Statement of Changes in Shareholders' Equity, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement, and the related explanatory 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 condensed set of financial statements.
Directors' responsibilities
The interim report, included the 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 the Alternative Investment Market 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 condensed set of financial statements 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 the Alternative Investment Market 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 condensed set of financial statements in the interim report for the six months ended 31 March 2008 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market.
BDO Stoy Hayward LLP
Chartered Accountants and Registered Auditors
Manchester
10 June 2008
IFRS Restatement Report (Unaudited)
Driver Group plc transition to IFRS
From 1 October 2007 Driver Group plc ("the Group") is required to prepare its consolidated accounts under International Accounting Standards and International Financial Reporting Standards (collectively referred to as "adopted IFRS" throughout this document) as adopted by the European Union ("EU") having previously prepared its accounts under UK Generally Accepted Accounting Principles ("UK GAAP"). The transition date for the Group is 1 October 2006 and set out in the following tables is the UK GAAP to adopted IFRS reconciliation for profit for the six month period ended 31 March 2007 and for the year ended 30 September 2007 and a reconciliation of total equity as at 1 October 2006, 31 March 2007 and 30 September 2007.
Transitional arrangements - Application of IFRS 1
The Group's financial statements for the year ending 30 September 2008 will be the Group's first annual financial statements in compliance with adopted IFRS.
On transition to adopted IFRS an entity is generally required to apply adopted IFRS retrospectively, except where an exemption is available under IFRS 1 'First-time Adoption of International Financial Reporting Standards'.
The following are the key elections from IFRS 1 that were made by the Group:
The Group has elected to adopt the IFRS 1 exemption in relation to the valuation of property by taking the fair value as at the transition date as deemed cost.
The Group has elected to adopt the IFRS 1 option to reset foreign currency cumulative translation reserves to zero on transition to adopted IFRS.
International Financial Reporting Standards - Changes in accounting policies
The interim results for the period ended 31 March 2008 have been prepared in accordance with accounting policies under adopted IFRS. A summary of the Group's revised accounting policies under IFRS are included in note 2 to this restatement report.
Reconciliation of balance sheet and income statement
The adjustment to the income statement and balance sheet from UK GAAP to adopted IFRS is explained in detail in note 1 to the restatement report.
With the exception of reclassifications, there were no material differences between cash flows presented under adopted IFRS and the cash flows presented under UK GAAP for the six months ended 31 March 2007 and for the year ended 30 September 2007 as a result of the conversion to adopted IFRS.
Reconciliation of income statement from UK GAAP to adopted IFRS (unaudited)
Extract from income statement
| | UK GAAP 6 months ended 31 March 2007* | Adopted IFRS Adj. (note 1) | IFRS 6 months ended 31 March 2007 | UK GAAP year ended 30 September 2007 | Adopted IFRS Adj. (note 1) | IFRS year ended 30 September 2007 |
| | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| | | | | | | |
| REVENUE | 5,937 | - | 5,937 | 12,684 | - | 12,684 |
| | | | | | | |
| OPERATING PROFIT | 746 | (76) | 670 | 1,121 | (79) | 1,042 |
| | | | | | | |
| PROFIT BEFORE TAX | 751 | (76) | 675 | 1,114 | (79) | 1,035 |
| | | | | | | |
| TAX | (225) | 13 | (212) | (369) | 4 | (365) |
| | | | | | | |
| PROFIT FOR THE PERIOD | 526 | (63) | 463 | 745 | (75) | 670 |
Reconciliation of balance sheet from UK GAAP to adopted IFRS (unaudited)
| | UK GAAP 31 March 2007 | Adopted IFRS Adj. (note 1) | IFRS 31 March 2007 | UK GAAP 30 September 2007 | Adopted IFRS Adj. (note 1) | IFRS 30 September 2007 | UKGAAP 1 October 2006 | Adopted IFRS Adj. (note 1) | IFRS 1 October 2006 |
| | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| | | | | | | | | | |
| NON-CURRENT ASSETS | | | | | | | | | |
| Property, plant and equipment | 2,721 | 321 | 3,042 | 3,421 | (317) | 3,104 | 2,620 | 345 | 2,965 |
| Deferred tax asset | - | 32 | 32 | - | 29 | 29 | - | 10 | 10 |
| | | | | | | | | | |
| | 2,721 | 353 | 3,074 | 3,421 | (288) | 3,133 | 2,620 | 355 | 2,975 |
| CURRENT ASSETS | | | | | | | | | |
| Trade and other receivables | 3,359 | - | 3,359 | 3,227 | - | 3,227 | 2,709 | - | 2,709 |
| Current tax receivable | - | - | - | - | - | - | 41 | - | 41 |
| Cash and cash equivalents | 929 | - | 929 | 855 | - | 855 | 1,317 | - | 1,317 |
| | | | | | | | | | |
| | 4,288 | - | 4,288 | 4,082 | - | 4,082 | 4,067 | - | 4,067 |
| | | | | | | | | | |
| TOTAL ASSETS | 7,009 | 353 | 7,362 | 7,503 | (288) | 7,215 | 6,687 | 355 | 7,042 |
| | | | | | | | | | |
| CURRENT LIABILITIES | | | | | | | | | |
| Borrowings | (213) | - | (213) | (450) | - | (450) | (254) | - | (254) |
| Trade and other payables | (1,080) | (111) | (1,191) | (1,262) | (91) | (1,353) | (962) | (59) | (1,021) |
| Current tax payable | (675) | - | (675) | (172) | - | (172) | (453) | - | (453) |
| | | | | | | | | | |
| | (1,968) | (111) | (2,079) | (1,884) | (91) | (1,975) | (1,669) | (59) | (1,728) |
| | | | | | | | | | |
| NON-CURRENT LIABILITIES | | | | | | | | | |
| Borrowings | (266) | - | (266) | (179) | - | (179) | (371) | - | (371) |
| Deferred tax liabilities | (6) | (311) | (317) | (19) | (322) | (341) | (3) | (317) | (320) |
| | | | | | | | | | |
| | (272) | (311) | (583) | (198) | (322) | (520) | (374) | (317) | (691) |
| | | | | | | | | | |
| TOTAL LIABILITIES | (2,240) | (422) | (2,662) | (2,082) | (413) | (2,495) | (2,043) | (376) | (2,419) |
| | | | | | | | | | |
| NET ASSETS | 4,769 | (69) | 4,700 | 5,421 | (701) | 4,720 | 4,644 | (21) | 4,623 |
Reconciliation of balance sheet from UK GAAP to adopted IFRS (unaudited)
| | UK GAAP 31 March 2007 | Adopted IFRS Adj. (note 1) | IFRS 31 March 2007 | UK GAAP 30 September 2007 | Adopted IFRS Adj. (note 1) | IFRS 30 September 2007 | UK GAAP 1 October 2006 | Adopted IFRS Adj. (note 1) | IFRS 1 October 2006 |
| | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| | | | | | | | | | |
| SHAREHOLDERS’ EQUITY | | | | | | | | | |
| Share capital | 99 | - | 99 | 99 | - | 99 | 99 | - | 99 |
| Share premium | 2,649 | - | 2,649 | 2,649 | - | 2,649 | 2,649 | - | 2,649 |
| Currency translation reserve | - | - | - | - | 1 | 1 | - | - | - |
| Revaluation reserve | 723 | (723) | - | 1,338 | (1,338) | - | 723 | (723) | - |
| Capital redemption reserve | 18 | - | 18 | 18 | - | 18 | 18 | - | 18 |
| Other reserve | 47 | 16 | 63 | 84 | 9 | 93 | 11 | - | 11 |
| Retained earnings | 2,490 | 621 | 3,111 | 2,476 | 610 | 3,086 | 2,403 | 685 | 3,088 |
| Own shares* | (1,242) | - | (1,242) | (1,242) | - | (1,242) | (1,242) | - | (1,242) |
| | | | | | | | | | |
| TOTAL SHAREHOLDERS’ EQUITY | 4,784 | (86) | 4,698 | 5,422 | (718) | 4,704 | 4,661 | (38) | 4,623 |
| | | | | | | | | | |
| MINORITY INTEREST IN EQUITY | (15) | 17 | 2 | (1) | 17 | 16 | (17) | 17 | - |
| | | | | | | | | | |
| TOTAL EQUITY | 4,769 | (69) | 4,700 | 5,421 | (701) | 4,720 | 4,644 | (21) | 4,623 |
Buildings - 2%
Fixtures and fittings - 10%
Technical library - 10%
Computer equipment - 20%