Fiske Regulatory News (FKE)

13 Feb 2008 07:00

Fiske PLC13 February 2008 Fiske Plc('Fiske' or 'the Company') Interim Results Fiske Plc (the 'Company') announces its interim results for the six months ended30 November 2007. In accordance with rule 26 of the AIM Rules for Companies thisinformation is also available, under the Investors section, at the Company'swebsite, http://www.fiskeplc.com. For further information please contact: • Gerry Beaney/Fiona Kindness Grant Thornton UK LLP (Nominated Adviser) (tel: 020 7383 5100) • Gerard Luchini, Fiske Plc - Compliance Officer (tel: 020 7448 4700) Chairman's Statement I am pleased to report a satisfactory first half of the financial year. For thesix months to 30 November 2007 we made a pre-tax profit of £400,000 against£338,000 in the same period of the previous year. Due to returning to a morenormal tax charge of 28.6% against 40.3% in the same period last year earningsper share are 3.4p against 2.6p. As a result, and bearing in mind the strength of our balance sheet, we havedecided to increase the interim dividend from 2p to 2.5p per share. Corporatefinance, whilst never a large part of our income, was subdued in the period butthis was more than compensated by increased income from commission, investmentmanagement fees and interest. We believe that a key strength of our businesslies in the steady increase in recurring income and it is our policy to continueto grow in this area. The Company has adopted International Financial ReportingStandards (IFRS) for the first time this period. The impact of this change onthe reported financial statements has been minor in respect of accounting policychanges. You will be pleased to know that we have no exposure to Collateralised DebtObligations (CDO), Structured Investment Vehicles (SIV) and other complexproducts. Our only collective investments are unit trusts and investment trustsfor suitable clients. However we are of the opinion that the repercussions fromthe current turmoil has further to go in the damage to the banking system, toinvestor confidence and to the US economy in particular. Until everyone hasowned up to the extent of their losses (and this has by no means happened yet inthe UK) it is difficult to see the effects subsiding. We therefore maintain acautious stance on our clients' behalf for the short term future, but believethey will be well positioned to take advantage of opportunities in the mediumterm. Nevertheless the second half will inevitably be affected by the turbulencein global markets. The proposed simplification of the capital gains tax regime from 5 April 2008should be good news for private clients generally, and for our private clientbusiness in particular. The Board continues to look at opportunities to improve shareholder value andindeed is personally motivated in that direction. However most of the "opportunities" presented are predicated at the expense of our clients and ofephemeral benefit for shareholders. You may be sure that if an appropriateproposition is brought to the Board they will give it proper considerationbearing in mind the interests of shareholders, clients and staff. M J AllenChairman 13 February 2008 Independent Review Report to Fiske plc We have been engaged by the company to review the condensed set of financialstatements in the half-yearly financial report for the six months ended 30November 2007 which comprises the consolidated income statement, theconsolidated statement of recognised income and expense, the consolidatedbalance sheet, the consolidated cash flow statement and related notes 1 to 5. Wehave read the other information contained in the half-yearly financial reportand considered whether it contains any apparent misstatements or materialinconsistencies with the information in the condensed set of financialstatements. This report is made solely to the company in accordance with InternationalStandard on Review Engagements (UK and Ireland) 2410 issued by the AuditingPractices Board. Our work has been undertaken so that we might state to thecompany those matters we are required to state to them in an independent reviewreport and for no other purpose. To the fullest extent permitted by law, we donot accept or assume responsibility to anyone other than the company, for ourreview work, for this report, or for the conclusions we have formed. Directors' responsibilities The half-yearly financial report is the responsibility of, and has been approvedby, the directors. The directors are responsible for preparing the half-yearlyfinancial report in accordance with the AIM Rules of the London Stock Exchange As disclosed in note 1, the annual financial statements of the group areprepared in accordance with IFRSs as adopted by the European Union. Thecondensed set of financial statements included in this half-yearly financialreport have been prepared in accordance with the accounting policies the groupintends to use in preparing its next annual financial statements. Our responsibility Our responsibility is to express to the Company a conclusion on the condensedset of financial statements in the half-yearly financial report based on ourreview. Scope of Review We conducted our review in accordance with International Standard on ReviewEngagements (UK and Ireland) 2410, "Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity" issued by the AuditingPractices Board for use in the United Kingdom. A review of interim financialinformation consists of making inquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing (UK and Ireland) andconsequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly, wedo not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believethat the condensed set of financial statements in the half-yearly financialreport for the six months ended 30 November 2007 is not prepared, in allmaterial respects, in accordance with the AIM Rules of the London StockExchange. Deloitte & Touche LLPChartered AccountantsLondon, United Kingdom 13 February 2008 Condensed Consolidated Income Statementfor the six months ended 30 November 2007 Six months ended Six months ended Year ended 30 November 2007 30 November 2006 31 May 2007 Unaudited Unaudited Unaudited Notes £'000 £'000 £'000 Fee and commission income 2,070 1,971 4,516Fee and commission expenses (505) (502) (1,148) Net fee and commission income 1,565 1,469 3,368Other income 141 137 177 TOTAL REVENUE 1,706 1,606 3,545Profit/(loss) on disposal of available-for-sale investments 7 (3) 14Operating expenses (1,423) (1,313) (2,699)Write-down of goodwill - - (75)Amortisation of intangibles (42) (71) (106) OPERATING PROFIT 248 219 679Investment revenue 29 22 26Finance income 125 98 202Finance costs (2) (2) (4)Profit on disposal of property, plant and equipment - 1 1 PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 400 338 904Taxation (114) (122) (312) PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 286 216 592 PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS 286 216 592 Earnings per ordinary share (pence)Basic 3 3.4 p 2.6 p 7.1 pDiluted 3 3.4 p 2.6 p 7.1 p Condensed Consolidated Statement of Recognised Incomeand Expense for the six months ended 30 November 2007 Six months ended Six months ended Year ended 30 November 2007 30 November 2006 31 May 2007 Unaudited Unaudited Unaudited £'000 £'000 £'000 Gain on revaluation of available-for-sale investments taken to equity 6 55 95 INCOME RECOGNISED DIRECTLY IN EQUITY TRANSFERS 6 55 95Transfers to profit or loss on sale of available-for-sale investments (4) 4 3PROFIT FOR THE PERIOD 286 216 592 TOTAL RECOGNISED INCOME AND EXPENSE FOR THE PERIOD 288 275 690Attributable to equity shareholders 288 275 690 Condensed Consolidated Balance Sheet30 November 2007 As at As at As at 30 November 2007 30 November 2006 31 May 2007 Unaudited Unaudited Unaudited £'000 £'000 £'000ASSETSNON-CURRENT ASSETSGoodwill 375 450 375Other intangible assets 99 176 141Property, plant and equipment 131 171 152Available-for-sale investments 645 516 542 TOTAL NON-CURRENT ASSETS 1,250 1,313 1,210 CURRENT ASSETSTrade and other receivables 10,132 9,122 22,552Investments held for trading 517 451 213Cash and cash equivalents 3,867 3,625 4,411 TOTAL CURRENT ASSETS 14,516 13,198 27,176 TOTAL ASSETS 15,766 14,511 28,386 LIABILITIESCURRENT LIABILITIESTrade and other payables 10,378 9,578 23,161Current tax liabilities 403 262 288 TOTAL CURRENT LIABILITIES 10,781 9,840 23,449 NON-CURRENT LIABILITIESDeferred tax liabilities 117 101 118 TOTAL NON-CURRENT LIABILITIES 117 101 118 TOTAL LIABILITIES 10,898 9,941 23,567 EQUITYShare capital 2,087 2,078 2,078Share premium 1,187 1,185 1,185Revaluation reserve 288 247 286Retained earnings 1,306 1,060 1,270 SHAREHOLDERS' EQUITY 4,868 4,570 4,819 TOTAL EQUITY AND LIABILITIES 15,766 14,511 28,386 Condensed Consolidated Cash Flow Statementfor the six months ended 30 November 2007 Six months ended Six months ended Year ended 30 November 2007 30 November 2006 31 May 2007 Unaudited Unaudited Unaudited £'000 £'000 £'000CASH FLOWS FROM OPERATING ACTIVITIESCash (used in)/generated by operations (356) (604) 382Interest paid (2) (2) (4)Tax paid - - (171) NET CASH (USED IN)/GENERATED FROM OPERATING ACTIVITIES (358) (606) 207 INVESTING ACTIVITIESInterest received 125 98 202Dividends received 29 22 26Proceeds on disposal of available-for-sale investments 65 17 153Proceeds on disposal of property, plant and equipment - 5 5Purchases of available-for-sale investments (160) - (90)Purchases of property, plant and equipment (6) (10) (25) NET CASH GENERATED FROM INVESTING ACTIVITIES 53 132 271 FINANCING ACTIVITIESShare capital issued 11 - -Dividends paid (250) (166) (332) NET CASH USED IN FINANCING ACTIVITIES (239) (166) (332) NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (544) (640) 146Cash and cash equivalents at beginning of period 4,411 4,265 4,265 Cash and cash equivalents at end of period 3,867 3,625 4,411 Notes to the Interim Financial Statementsand IFRS reconciliations 1. ACCOUNTING POLICIES The following accounting policies have been applied in dealing with items whichare considered material in relation to the Group's financial statements: a) Basis of preparation The financial information for the six months ended 30 November 2007 has beenprepared under International Financial Reporting Standards ("IFRS") subject toexemptions referred to in this note. The financial information for the yearended 31 May 2007 has been derived from audited UK GAAP information adjusted forthe impact of IFRS and is therefore unaudited. The financial information for theperiod ended 30 November 2006 has been derived from unaudited UK GAAPinformation adjusted for the impact of IFRS. The interim information, togetherwith comparative information contained in this report for the year ended 31 May2007 and the period ended 30 November 2007, does not constitute statutoryaccounts within the meaning of section 240 of the Companies Act 1985. However,the information has been reviewed by the Company's auditors, Deloitte & ToucheLLP, and their report appears on page 2. The UK GAAP statutory accounts for theyear ended 31 May 2007 have been reported on by the Company's auditors, Deloitte& Touche LLP, and delivered to the Registrar of Companies. The report of theauditors on those accounts was unqualified and did not contain a statement undersection 237(2) or (3) of the Companies Act 1985. b) Transition to International Financial Reporting Standards The transitional arrangements to IFRS are set out in IFRS1. The next annualfinancial statements of the Group will be prepared in accordance with IFRS asadopted for use in the EU. The Group's transition date to IFRS is 1 June 2006,being the first day of the comparative period. Accordingly the interim financialreport, together with comparative information, has been prepared usingaccounting policies consistent with IFRS. c) Basis of consolidation The interim financial statements incorporate the financial statements of theCompany and entities controlled by the Company (its subsidiaries) made up to 30November each year. Control is achieved where the company has the power togovern the financial and operating policies of an investee entity so as toobtain benefit from its activities. All intra-group transactions, balances,income and expenses are eliminated on consolidation. d) Revenue recognition The Group follows the principles of IAS 18, 'Revenue Recognition', indetermining appropriate revenue recognition policies. Therefore, revenue isrecognised to the extent that it is probable that the economic benefitsassociated with the transaction will flow into the Group. Corporate Finance: Revenue comprises the value of services supplied by theGroup, exclusive of value added tax and are recognised when the relevanttransaction is completed. Retainer fees are recognised over the period of theagreement. Stockbroking: Turnover comprises commission and other fees and is recognisedwhen receivable in accordance with the date of the underlying transaction. Other income includes dividend income on available-for-sale investments,recognised when an unconditional right to receive the income has beenestablished. e) Business combinations The acquisition of subsidiaries is accounted for using the purchase method. Thecost of acquisition is measured as the aggregate of the fair values, at the dateof exchange, of the assets given, liabilities incurred or assumed, and equityinstruments issued by the Group in exchange for control of the acquiree, plusany costs directly attributable to the business combination. The acquiree's identifiable assets, liabilities and contingent liabilities thatmeet the conditions for recognition under IFRS 3 are recognised at their fairvalue at the acquisition date. As permitted by IFRS 1, the Group has chosen notto restate, under IFRS, business combinations that took place prior to 1 June2006 the date of transition to IFRS. f) Goodwill Goodwill arising on consolidation represents the excess of the cost ofacquisition over the Group's interest in the fair value of the identifiableassets and liabilities of a subsidiary, associate or jointly controlled entityat the date of acquisition. Goodwill is initially recognised as an asset at costand is subsequently measured at cost less any impairment. Goodwill which isrecognised as an asset is reviewed for impairment at least annually. Anyimpairment is recognised immediately and is not subsequently reversed. For the purpose of impairment testing, goodwill is allocated to each of theGroup's cash-generating units expected to benefit from the synergies of thecombination. Cash-generating units to which goodwill has been allocated aretested for impairment annually, or more frequently where there is an indicationthat the unit may be impaired. If the recoverable amount of the cash-generatingunit is less than the carrying value of the unit, the impairment loss isallocated first to reduce the carrying amount of any goodwill allocated to theunit and then to the other assets of the unit pro-rata on the basis of thecarrying value of each asset in the unit. An impairment loss recognised forgoodwill is not reversed in a subsequent period. On disposal of a subsidiary, associate or jointly controlled entity, theattributable amount of goodwill is included in the determination of the profitor loss on disposal. Goodwill arising on acquisitions before the date oftransition to IFRSs has been retained at the previous UK GAAP amounts subject tobeing tested for impairment at that date. g) Property, plant and equipment All property, plant and equipment is shown at cost less subsequent depreciationand impairment. Cost includes expenditure that is directly attributable to theacquisition of items. Depreciation is charged so as to write off the cost or valuation of assets over their useful economic lives, using the straight-line method, which are considered to be as follows: Office furniture and fittings - 4 yearsComputer equipment - 3 yearsOffice refurbishment - 5 years The assets' residual values and useful lives are reviewed, and if appropriateasset values are written down to their estimated recoverable amounts, at eachbalance sheet date. Gains and losses on disposals are determined by comparingproceeds with the carrying amounts, and are included in the income statement. h) Impairment of intangible assets Our policy is to amortise intangible assets over the life of the contract, inthis instance the period to 31 October 2008. At each balance sheet date, the Group reviews the carrying amounts of itsintangible assets to determine whether there is any indication that those assetshave suffered an impairment loss. If any such indication exists, the recoverableamount of the asset is estimated in order to determine the extent of theimpairment loss (if any). Where the asset does not generate cash flows that areindependent from other assets, the Group estimates the recoverable amount of thecash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value inuse. In assessing value in use, the estimated future cash flows are discountedto their present value, using a pre-tax discount rate that reflects currentmarket assessments of the time value of money and the risks specific to theasset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated tobe less than its carrying amount, the carrying amount of the asset(cash-generating unit) is reduced to its recoverable amount. An impairment lossis recognised as an expense immediately. Where an impairment loss subsequently reverses, the carrying amount of the asset(cash-generating unit) is increased to the revised estimate of its recoverableamount, but so that the increased carrying amount does not exceed the carryingamount that would have been determined had no impairment loss being recognisedfor the asset (cash-generating unit) in prior years. A reversal of an impairmentloss is recognised as income immediately. i) Available-for-sale investments Investments previously classified as fixed asset investments have beenre-classified as available-for-sale investments, and initially recognised atfair value. Subsequent available-for-sale investments are recognised andderecognised on a trade date where a purchase or sale of an investment iseffected under a contract whose terms require delivery of the investment withinthe timeframe established by the market concerned, and are initially measured atcost, including transaction costs. At subsequent reporting dates, available-for-sale investments are measured atfair value. Gains or losses arising from changes in fair value are recogniseddirectly in equity, until the security is disposed of or is determined to beimpaired, at which time the cumulative gain or loss previously recognised inequity is included in the net profit or loss for the period. Impairment lossesrecognised in profit or loss are not subsequently reversed through profit orloss. The fair values of available-for-sale investments quoted in active markets aredetermined by reference to the current quoted bid price. j) Trade and other receivables Trade and other receivables are measured at initial recognition at fair value,and are subsequently measured at amortised cost using the effective interestrate method. Appropriate allowances for estimated irrecoverable amounts arerecognised in profit or loss when there is objective evidence that the asset isimpaired. The allowance recognised is measured as the difference between theasset's carrying amount and the present value of estimated future cash flowsdiscounted at the effective interest rate computed at initial recognition. k) Investments held for trading Investments held for trading, which from time to time may include derivatives,including traded options and warrants traded on an exchange, are measured atmarket value. l) Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits, and othershort-term highly liquid investments that are readily convertible to knownamounts of cash and are subject to insignificant risk of changes in value. Suchinvestments are normally those with original maturities of three months or less. m) Client money The group holds money on behalf of clients in accordance with the Clients' MoneyRules of the Financial Services Authority. Such monies and the correspondingliabilities to the clients are excluded from the balance sheet. n) Trade and other payables Trade and other payables are recognised initially at fair value, which is theagreed market price at the time goods or services are provided. The Groupaccrues for all goods and services consumed but as yet unbilled at amountsrepresenting management's best estimate of fair value. o) Equity instruments Equity instruments issued by the Company are recorded at the proceeds received,net of direct issue costs. p) Dividends Equity dividends are recognised when they become legally payable. Interim equitydividends are recognised when paid. Final equity dividends are recognised whenapproved by the shareholders at an annual general meeting. q) Share-based payments Where equity settled share options are awarded to employees, the fair value ofthe options at the date of grant is charged to the income statement over thevesting period. Non-market vesting conditions are taken into account byadjusting the number of equity instruments expected to vest at each balancesheet date so that, ultimately, the cumulative amount recognised over thevesting period is based on the number of options that eventually vest. Marketvesting conditions are factored into the fair value of the options granted. Aslong as all other vesting conditions are satisfied, a charge is madeirrespective of whether the market vesting conditions are satisfied. Thecumulative expense is not adjusted for failure to achieve a market vestingcondition. When the terms and conditions of options are modified before they vest, theincrease in the fair value of the options, measured immediately before and afterthe modification, is also charged to the income statement over the remainingvesting period. Where equity instruments are granted to persons other than employees, the incomestatement is charged with the fair value of the goods and services received. r) Taxation The tax expense represents the sum of the tax currently payable and the deferredtax. The tax currently payable is based on taxable profit for the year. Taxableprofit differs from net profit as reported in the income statement because itexcludes items of income or expense that are taxable or deductible in otheryears and it further excludes items that are never taxable or deductible. TheGroup's liability for current tax is calculated using tax rates that have beenenacted or substantively enacted by the balance sheet date. Deferred tax is the tax expected to be payable or recoverable on differencesbetween the carrying amounts of assets and liabilities in the financialstatements and the corresponding tax bases used in the computation of taxableprofit, and is accounted for using the balance sheet liability method. Deferredtax liabilities are generally recognised for all taxable temporary differencesand deferred tax assets are recognised to the extent that it is probable thattaxable profits will be available against which deductible temporary differencescan be utilised. Such assets and liabilities are not recognised if the temporarydifference arises from the initial recognition of goodwill or from the initialrecognition (other than in a business combination) of other assets andliabilities in a transaction that affects neither the tax profit nor theaccounting profit. Deferred tax liabilities are recognised for taxable temporary differencesarising on investments in subsidiaries and associates, except where the Group isable to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheetdate and reduced to the extent that it is no longer probable that sufficienttaxable profits will be available to allow all or part of the asset to berecovered. Deferred tax is calculated at the tax rates that are expected to apply in theperiod when the liability is settled or the asset is realised. Deferred tax ischarged or credited in the income statement, except when it relates to itemscharged or credited directly to equity, in which case the deferred tax is alsodealt with in equity. Deferred tax assets and liabilities are offset where there is a legallyenforceable right to set off current tax assets against current tax liabilitiesand when they relate to income taxes levied by the same taxation authority andthe Group intends to settle its current tax assets and liabilities on a netbasis. Interim measurement note Current income tax expense is recognised in these interim consolidated financialstatements based on management's best estimates of the annual income taxliability expected for the full financial year. s) Foreign currencies The individual financial statements of each group company are presented in thecurrency of the primary economic environment in which it operates (itsfunctional currency). For the purpose of the consolidated financial statements,the results and financial position of each group company are expressed in poundssterling, which is the functional currency of the Company, and the presentationcurrency for the consolidated financial statements. In preparing the financial statements of the individual companies, transactionsin currencies other than the entity's functional currency (foreign currencies)are recorded at the rates of exchange prevailing on the dates of thetransactions. At each balance sheet date, monetary assets and liabilities thatare denominated in foreign currencies are retranslated at the rates prevailingon the balance sheet date. Non-monetary items carried at fair value that aredenominated in foreign currencies are translated at the rates prevailing at thedate when the fair value was determined. Non-monetary items that are measured interms of historical costs in a foreign currency are not retranslated. Exchange differences arising on the settlement of monetary items, and on theretranslation of monetary items, are included in profit or loss for the period.Exchange differences arising on the retranslation of non-monetary items carriedat fair value are included in profit or loss for the period except fordifferences arising on the retranslation of non-monetary items in respect ofwhich gains and losses are recognised directly in equity. For such non-monetaryitems, any exchange component of that gain or loss is also recognised directlyin equity. t) Leases Operating lease rentals are charged to the profit and loss account on a straightline basis over the term of the lease. Reverse premiums and similar incentivesreceived to enter into operating lease agreements are released to the profit andloss account over the period to the date on which the rent is first expected tobe adjusted to the prevailing market rate. Benefits received and receivable asan incentive to enter into an operating lease are also spread on a straight-linebasis over the lease term. 2. TAXATION The tax charge for the six months to 30 November 2007 reflects all the necessaryprovisions for current tax, taking into account the availability of lossesbrought forward, and movements in deferred tax with reference to the adjustmentsnecessary under IFRS. In arriving at the effective tax rate account has beentaken of the forthcoming change in the rate of tax charged, the disallowance ofthe cost of share based payments charged to the income statement. 3. EARNINGS PER SHARE The calculation of the basic earnings per ordinary share is based on profit onordinary activities after tax and on the weighted average number of ordinaryshares in issue during the period. The calculation of diluted earnings perordinary share is based on the basic earnings per ordinary share adjusted toallow for the issue of shares on the assumed conversion of all dilutive options. Six months ended 30 November 2007 Six months ended 30 November 2006 Weighted Weighted average average Earnings number Earnings per Earnings number Earnings per £'000 of shares share (pence) £'000 of shares share (pence) Basic earnings per ordinary share 286 8,322,003 3.4 216 8,300,245 2.6Dilutive effect of potential ordinary shares: options 2 69,247 - 2 84,830 - Dilutive earnings per ordinary share 288 8,391,250 3.4 218 8,385,075 2.6 4. DIVIDENDS PAID Dividends paid of £250,000 (2006 - £166,000) refer to the Second interimdividend paid for the preceding year. The Interim dividend of 2.5p will be paid on 14 March 2008 to shareholders onthe register on 22 February 2008. The shares will be marked ex-dividend on 20February 2008. 5. IFRS RECONCILIATION Reconciliations of equity, net assets and profit under UK GAAP to IFRS. Fiske plc reported under UK GAAP in its previously published financialstatements for the year ended 31 May 2007. The analyses that follow showreconciliations of equity, net assets and profit as at 31 May 2007 to therevised equity, net assets and profit as reported in these interim financialstatements. In addition there is a reconciliation of net assets under UK GAAP toIFRS at the transition date of the Group, being 1 June 2006. a) Reconciliation of equity at 1 June 2006 (Date of transition to IFRS) Effect of transition to IFRS Re- Re- UK GAAP measurement classification IFRS Notes £'000 £'000 £'000 £'000ASSETSNON-CURRENT ASSETSGoodwill a - - 450 450Other intangible assets c 697 - (450) 247Fixed asset investments 176 268 (444) -Tangible fixed assets 192 - (192) -Property, plant and equipment d - - 192 192Available-for-sale investments e - - 444 444 TOTAL NON-CURRENT ASSETS 1,065 268 - 1,333 CURRENT ASSETSTrade and other receivables - - 6,804 6,804Market and client debtors 6,518 - (6,518) -Other debtors 298 - (298) -Current asset investments - - - -Investments held for trading - - - -Cash and cash equivalents 4,265 - - 4,265 TOTAL CURRENT ASSETS 11,081 - (12) 11,069 TOTAL ASSETS 12,146 268 (12) 12,402 LIABILITIESCURRENT LIABILITIESTrade and other payables - - 7,718 7,718Creditors: amounts falling due within one year 7,873 - (7,873) -Current tax liabilities f - - 155 155 TOTAL CURRENT LIABILITIES 7,873 - - 7,873 NON-CURRENT LIABILITIESDeferred tax liabilities g - 80 (12) 68 TOTAL NON-CURRENT LIABILITIES - 80 (12) 68 TOTAL LIABILITIES 7,873 80 (12) 7,941EQUITYShare capital 2,078 - - 2,078Share premium 1,185 - - 1,185Revaluation reserve - 188 - 188Retained earnings 1,010 - - 1,010Shareholders' equity 4,273 188 - 4,461 TOTAL EQUITY AND LIABILITIES 12,146 268 (12) 12,402 b) Reconciliation of equity at 30 November 2006 Effect of transition to IFRS Re- Re- UK GAAP measurement classification IFRS Notes £'000 £'000 £'000 £'000ASSETS NON-CURRENT ASSETSGoodwill a - 38 412 450Other intangible assets c 588 - (412) 176Fixed asset investments 163 353 (516) -Tangible fixed assets 171 - (171) -Property, plant and equipment d - - 171 171Available-for-sale investments e - - 516 516 TOTAL NON-CURRENT ASSETS 922 391 - 1,313 CURRENT ASSETSTrade and other receivables - - 9,122 9,122Market and client debtors 8,779 - (8,779) -Other debtors 348 - (348) -Current asset investments 451 - (451) -Investments held for trading - - 451 451Cash and cash equivalents 3,625 - - 3,625 TOTAL CURRENT ASSETS 13,203 - (5) 13,198 TOTAL ASSETS 14,125 391 (5) 14,511 LIABILITIESCURRENT LIABILITIESTrade and other payables - - 9,578 9,578Creditors: amounts falling due within 9,840 - (9,840) -one yearCurrent tax liabilities f - - 262 262 TOTAL CURRENT LIABILITIES 9,840 - - 9,840 NON-CURRENT LIABILITIESDeferred tax liabilities g - 106 (5) 101 TOTAL NON-CURRENT LIABILITIES - 106 (5) 101 TOTAL LIABILITIES 9,840 106 (5) 9,941EQUITYShare capital 2,078 - - 2,078Share premium 1,185 - - 1,185Revaluation reserve - 247 - 247Retained earnings 1,022 38 - 1,060 Shareholders' equity 4,285 285 - 4,570 TOTAL EQUITY AND LIABILITIES 14,125 391 (5) 14,511 c) Reconciliation of equity at 31 May 2007 Effect of transition to IFRS Re- Re- UK GAAP measurement classification IFRS Notes £'000 £'000 £'000 £'000ASSETSNON-CURRENT ASSETSGoodwill a - - 375 375Other intangible assets c 516 - (375) 141Fixed asset investments 133 409 (542) -Tangible fixed assets 152 - (152) -Property, plant and equipment d - - 152 152Available-for-sale investments e - - 542 542 TOTAL NON-CURRENT ASSETS 801 409 - 1,210 CURRENT ASSETSTrade and other receivables - - 22,552 22,552Market and client debtors 22,123 - (22,123) -Other debtors 434 - (434) -Current asset investments 213 - (213) -Investments held for trading - - 213 213Cash and cash equivalents 4,411 - - 4,411 TOTAL CURRENT ASSETS 27,181 - (5) 27,176 TOTAL ASSETS 27,982 409 (5) 28,386 LIABILITIESCURRENT LIABILITIESTrade and other payables - - 23,161 23,161Creditors: amounts falling due within one year 23,449 - (23,449) -Current tax liabilities f - - 288 288 TOTAL CURRENT LIABILITIES 23,449 - - 23,449 NON-CURRENT LIABILITIESDeferred tax liabilities g - 123 (5) 118 TOTAL NON-CURRENT LIABILITIES - 123 (5) 118 TOTAL LIABILITIES 23,449 123 (5) 23,567EQUITYShare capital 2,078 - - 2,078Share premium 1,185 - - 1,185Revaluation reserve - 286 - 286Retained earnings 1,270 - - 1,270 Shareholders' equity 4,533 286 - 4,819 TOTAL EQUITY AND LIABILITIES 27,982 409 (5) 28,386 d) Reconciliation of profit for the six months ended 30 November 2006 Effect of transition to IFRS UK GAAP Re- Re- IFRS £'000 measurement classification £'000 £'000 £'000 Gross commission and similar income 1,971 - (1,971) -Fee and commission income - - 1,971) 1,971Fee and commission expenses - - (502) (502) Net fee and commission income 1,971 - (502) 1,469Other income 137 - - 137Commission payable (502) - 502 - GROSS PROFIT/TOTAL INCOME 1,606 - - 1,606Profit/(loss) on disposal ofavailable-for-sale investments - - (3) (3)Profit/(loss) on disposal of investments (3) - 3 -Operating expenses (1,313) - - (1,313)Amortisation of intangibles (109) 38 - (71) OPERATING PROFIT 181 38 - 219Investment revenue 22 - - 22Finance income 98 - - 98Finance costs (2) - - (2)Profit on disposal of property plant and equipment 1 - - 1 Profit on ordinary activities before taxation 300 38 - 338Taxation (122) - - (122) PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 178 38 - 216 Profit attributable to equity shareholders 178 38 - 216 e) Reconciliation of profit for the year ended 31 May 2007 Effect of transition to IFRS Re- Re- UK GAAP measurement classification IFRS £'000 £'000 £'000 £'000 Gross commission and similar income 4,516 - (4,516) -Fee and commission income - - 4,516 4,516Fee and commission expenses - - (1,148) (1,148) Net fee and commission income 4,516 - (1,148) 3,368Other income 177 - - 177Commission payable (1,148) - 1,148 - GROSS PROFIT/TOTAL INCOME 3,545 - - 3,545 Profit/(loss) on disposal ofavailable-for-sale investments - - 14 14Profit/(loss) on disposal of investments 14 - (14) -Operating expenses (2,699) - - (2,699)Write-down of goodwill - - (75) (75)Amortisation of intangibles (181) - 75 (106) OPERATING PROFIT 679 - - 679Investment revenue 26 - - 26Finance income 202 - - 202Finance costs (4) - - (4)Profit on disposal of property plant and equipment 1 - - 1 Profit on ordinary activities before taxation 904 - - 904Taxation (312) - - (312) PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 592 - - 592 Profit attributable to equity shareholders 592 - - 592 Notes to the Interim Financial Statements NOTES TO RECONCILIATIONS OF EQUITY AND PROFIT a) Goodwill As a result of the adoption of IAS 38, 'Intangible Assets', goodwill previouslyrecognised within other intangible assets has been re-classified to goodwill onthe face of the balance sheet. b) Amortisation As a result of the adoption of IFRS 3, 'Business Combinations', goodwill is nolonger subject to amortisation. Rather its value is appraised annually for anyfurther write-down. c) Other intangible assets 'Other intangible assets' consist of investment in rights to certain softwareused in the Company's back office systems, less amortisation expensed sinceacquisition. d) Property, plant and equipment As a result of the adoption of IAS 16, 'Property, Plant and Equipment', itemspreviously classified as tangible fixed assets have been re-classified asproperty, plant and equipment. e) Available-for-sale investments Assets previously classified as fixed asset investments have been re-classifiedas available-for-sale investments, and recognised at fair value as detailed inthe accounting policies. Fair value adjustments to available-for-saleinvestments are taken directly to the fair value reserve. f) Current tax liabilities As a result of the adoption of IAS 12, 'Income Taxes', current tax liabilitiesare shown as a separate line item on the face of the balance sheet. g) Deferred tax assets and liabilities The revaluation of available-for-sale investments has given rise to a deferredtax liability. The deferred tax asset arising from UK GAAP accounting has beennetted against this liability in arriving at a net deferred tax liability. This information is provided by RNS The company news service from the London Stock Exchange